91-0327 NHS RESOLUTION
AUTHORIZING EXECUTION OF A PURCHASE OF SERVICE AGREEMENT WITH
NEIGHBORHOOD HOUSING SERVICES
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,
ILLINOIS, that Larry L. Rice, City Manager, be and is hereby
authorized and directed to execute a Purchase of Service
Agreement on behalf of the City of Elgin with Neighborhood
Housing Services for the administration of the Neighborhood
Housing Services program, a copy of which is attached hereto
and made a part hereof by reference.
s/ George VanDeVoorde
George VanDeVoorde, Mayor
Presented: March 27 , 1991
Adopted: March 27 , 1991
Vote: Yeas 5 Nays 0
Recorded:
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
PURCHASE OF SERVICE AGREEMENT
between
Neighborhood Housing Services and the City of Elgin
WHEREAS, the City of Elgin is committed to the revitalization and
redevelopment of certain areas within the city limits;
WHEREAS, Neighborhood Housing Services of Elgin, is incorporated to
provide revitalization assistance to certain areas within the city limits;
WHEREAS, the City of Elgin and Neighborhood Housing Services of Elgin wish
to work cooperatively to revitalize target neighborhoods as delineated by
Neighborhood Housing Services.
NOW, THEREFORE it is agreed by the City of Elgin and Neighborhood Housing
Services that:
The City of Elgin, will contribute $27,100 to the Neighborhood Housing
Services during the 1991 calendar year based upon the following
performance criteria:
1) For the development and incorporation of a neighborhood organization
composed of residents of the Neighborhood Housing Services target
neighborhood, the City of Elgin shall pay Neighborhood Housing Services
the lesser of $20,600 or actual expenses related to the development of
said organization. Such payment will be compensation for the following
activities: monthly meetings, identification and training of neighborhood
leaders, development of bylaws, investigation of tax exempt status and
incorporation, membership recruitment which includes organizational
newsletter, mailing/postage, development and distribution of informational
materials, neighborhood development projects including: neighborhood
clean-ups, park revitalization, childrens' activities, coordination of
City services to maximize neighborhood involvememt and support (i.e. tree
trimming, street cleaning, trash pick-up) .
2) The NHS will employ a qualified person to act as a Rehabilitation
Specialist to assist in the systematic evaluation of homes within the
delineated area. Said person will provide direct counselling and
professional advice to residents contemplating or engaging in
rehabilitation efforts. Rehab Specialist will evaluate property for
rehab, prioritize work needed, counsel homeowners in bid
evaluation/selection, counsel homeowners with self-help projects,
cross-sell loan programs and/or NHS services, monitor workmanship of
projects and subsequent payouts. The City of Elgin shall pay Neighborhood
Housing Services the lesser of $6,500 or actual expenses related to the
inspection and loan product marketing.
Payments to be made within 30 days of billing date (quarter end),
Conditioned upon the City receiving from NHS an acceptable activities
report summarizing neighborhood organizational efforts, housing
rehabilitation work and loan generation (Home Improvement Loan Program and
Rental Rehabilitation Program) .
Billing Dates: March 30, 1991 -$6,775
June 30, 1991 -$6,775
September 30, 1991 -$6,775
December 31, 1991 -$6,775
(1— "
Larry L`�City Manager Edward Schock,Presi ent NHS Board
NHS Draft #4 -3/20/91
Elm
A Item No.
March 7 , 1991
TO: Mayor and Members of the City Council
FROM: Larry L. Rice, City Manager
SUBJECT: Purchase of Service Agreement (PSA) with
Neighborhood Housing Services (NHS) of Elgin
PURPOSE
The purpose of this memorandum is to forward to the
Mayor and City Council a PSA with NHS.
BACKGROUND
In December, the City Council authorized a $27, 100 pay-
ment to NHS contingent upon entering into a PSA with the
City. City staff and NHS have had discussions regarding
performance criteria and program accomplishments to be includ-
ed in the PSA as well as possible methods of payment. The
attached draft agreement amplifies the activities for which
City funds will be used and provides quarterly installment
payments to NHS of $6,775.
FINANCIAL IMPACT
The $27, 100 payment to NHS is available from City Contin-
gency Funds.
RECOMMENDATION
The City Council may want to consider including report-
ing requirements in the PSA. Such a provision would require
NHS to provide the City Council with a written quarterly
summary of neighborhood organizational efforts, housing reha-
bilitation activities and loan. generation (home improvements
and rental rehab) prior to disbursement of payments. If the
City Council finds the PSA satisfactory, staff should be
directed to prepare a resolution authorizing its execution
for the next ing.
7
Larry . Rice,` City Manager
LLR:amp
Attachment
PURCHASE OF SERVICE AGREEMENT
between
Neighborhood Housing Services and the City of Elgin
WHEREAS, - the City of Elgin is committed to the revitalization and
• redevelopment of certain areas within the city limits;
•
WHEREAS, Neighborhood Housing Services of Elgin, is incorporated
to provide revitalization assistance to certain areas within the
city limits;
WHEREAS, the City of Elgin and Neighborhood Housing Services of
Elgin wish to work cooperatively to revitalize target
neighborhoods as delineated by Neighborhood Housing Services.
NOW, THEREFORE it is agreed by the City of Elgin and Neighborhood
Housing Services that:
The City of Elgin, will contribute $27, 100 to the Neighborhood Housing
Services during the 1991 calendar year based upon the following performance
criteria:
1) For the development and incorporation of a neighborhood organization
composed of residents of the Neighborhood Housing Services target
neighborhood, the City of Elgin shall pay Neighborhood Housing Services the
lesser of $20,600 or actual expenses related to the development of said
organization. Such payment will be compensation for the following activities:
monthly meetings, identification and training of neighborhood leaders,
47)
development of bylaws, investigation of tax exempt status and incorporation,
membership recruitment which includes organizational . newsletter,
mailing/postage, development and distribution of informational materials,
neighborhood development projects including: neighborhood clean-ups, park
revitalization, children's activities, coordination of City services to
maximize neighborhood involvement and support (i.e. tree trimming, street
cleaning, trash 2) The NHS will employ a qualified person to act as a Rehabilitation
Specialist to assist in the systematic evaluation of homes within the
delineated area. Said person will provide direct counselling and professional
advise to residents contemplating or engaging in rehabilitation efforts. Rehab
Specialist will evaluate property for rehab, prioritize work needed, counsel
homeowners in bid evaluation/selection, counsel homeowners with self-help
projects, cross-sell loan programs and/or NHS services, monitor workmanship of
projects and subsequent payouts. The City of Elgin shall pay Neighborhood
Housing Services the lesser of $6,500 or actual expenses related to - the
inspection and loan product marketing.
Payments to be made within 30 days of billing date (quarter end) .
Billing Dates: March 30, 1991 - $6,775
June 70, 1991 - $6,775
September 30, 1991 - $6,775
December 71, 1991 - $6,775
Larry L. Face, City Edward chock, President NHS Board .07)
NHS DRAT fr7 711/91
RENTAL REHABILITATION ADMINISTRATION
AGREEMENT
WHEREAS, the City of Elgin has received $150,000 in grant funds
from the Illinois Department of Commerce and Community Affairs
for the provision of rehabilitation loans through the Rental
Rehabilitation Program of the City of Elgin;
WHEREAS, Neighborhood Housing Services of Elgin, a not for profit
corporation, is experienced in undertaking housing rehabilitation
work and is lawfully authorized to provide the services described
below.
WHEREAS, both the City of Elgin and Neighborhood Housing Services
of Elgin wish to cooperate in the continued operation of the
Rental Rehabilitation Program of the City of Elgin;
NOW, THEREFORE, it is agreed by the City of Elgin and the
Neighborhood Housing Services of Elgin that:
The Neighborhood Housing Services of Elgin shall perform the
activities of Rental Rehabilitation Program development,
marketing, and outreach; process loan applications and prepare
the necessary loan documents; and, manage the Rental
Rehabilitation Program in Elgin.
The Neighborhood Housing Services of Elgin shall administer,
market, and operate the Rental Rehabilitation Program of the City
of Elgin according to federal, state, and local guidelines and
regulations.
The City of Elgin shall provide inspection services to identify
code deficiencies in structures proposed for participation in the
Rental Rehabilitation Program.
The City of Elgin shall provide limited overview and technical
assistance to NHS to assist in the provision of proper
documentation, adherence to federal, state, and local
regulations, and timely payout and project completion.
In consideration of the preceding administrative services
commitment by the Neighborhood Housing Services of Elgin, a total
of $15 ,000 (10% of total grant award) has been allocated for
administrative services . The $15 ,000 shall be paid on the
following basis:
1 . Upon receipt of the sum of $10 ,000 by the City of
Elgin from the Department of Commerce and Community
Affairs the City shall pay Neighborhood Housing Services
the sum of $10,000 for services provided and to be
provided for the commitment of $100 ,000 in Rental
Rehabilitation loans.
Rental Rehabilitation Administration
Agreement
Page Two
2 . The sum of $5 , 000 shall be paid by the City of Elgin
to Neighborhood Housing Services in $1 ,000 increments
after the commitment of $100 , 000 in Rental Rehabilitation
loans. The distribution of the $5 ,000 for administrative
services rendered shall be in $1 ,000 increments for each
$10 ,000 in Rental Rehabilitation loan commitments, not to
exceed the $5 ,000 allocated or the total of $150 ,000 in
Rental Rehabilitation Grant funds allocated.
.Z- 1,,.e4244,4-71000
City Elgin Neighborhood Housing Services
Larry L. Rice, City Manager Edward Schock, President
� n
Dolonna Mecum, City Clerk