95-98 Resolution No. 95-98
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 Richard B. Helwig, City Manager, and Dolonna
Mecum, City Clerk, be and are hereby authorized and directed
to execute a purchase of service agreement on behalf of the
City of Elgin with Neighborhood Housing Services to provide
revitalization assistance to certain areas within the city
limits, a copy of which is attached hereto and made a part
hereof by reference.
s/ Kevin Kelly
Kevin Kelly, Mayor
Presented: May 10, 1995
Adopted: May 10, 1995
Omnibus Vote: Yeas 7 Nays 0
Attest:
s/ Dolonna Mecum
Dolonna Mecum, City Clerk
PURCHASE OF SERVICE AGREEMENT BETWEEN
NEIGHBORHOOD HOUSING SERVICES OF ELGIN, INC.
AND THE CITY OF ELGIN
WHEREAS, the City of Elgin, Illinois, a municipal
corporation, (hereinafter referred to as "City" ) is committed
to the revitalization and redevelopment of certain areas
within the city limits;
WHEREAS, Neighborhood Housing Services of Elgin, Inc. , an
Illinois not-for-profit corporation (hereinafter referred to
as "NHS" ) is incorporated to provide revitalization assistance
to certain areas within the city limits; and
WHEREAS, City and NHS wish to work cooperatively to
revitalize target neighborhoods as delineated by NHS.
NOW, THEREFORE, for and in consideration of the mutual
promises and covenants contained herein, the sufficiency of
which is hereby acknowledged, the parties hereto hereby agree
as follows:
1. NHS shall relocate its office to the Kimball,
Dundee, Summit target area as described by attachment "A"
hereto;
2 . NHS shall perform a baseline housing maintenance
survey within the aforementioned target area;
3 . NHS shall develop maps depicting the aforementioned
survey results;
4 . NHS shall develop and conduct a neighborhood opinion
survey;
5 . NHS shall actively solicit neighborhood
representation on the NHS Board of Directors;
6 . NHS shall work with and support target area
neighborhood organizations;
7 . NHS shall designate reasonably sufficient staffing
to develop newsletters, monthly meetings, membership
recruitment and leadership development;
8 . City shall pay NHS a sum of not more than $37,300,
which payment shall be an amount equal to a sum directly and
solely attributable to the costs incurred by NHS after January
1, 1995 and prior to December 31, 1995, pursuant to its
performance of the terms of this agreement;
9 . NHS shall submit to City four quarterly performance
reports which shall outline NHS' neighborhood organizational
efforts and accomplishments as well as housing rehabilitation
work, loan production and all other NHS activities .
10. City shall make payments to NHS pursuant to the
terms of this agreement no more than four times during the
term of this agreement upon submission to City by NHS of
detailed vouchers and receipts for actual expenses incurred by
NHS, which vouchers and receipts shall be reasonably
acceptable to City.
11. City shall not be required to make any payment to
NHS unless City has been provided with reasonable evidence of
compliance with the terms of this agreement by NHS.
12 . Unless otherwise terminated as provided herein, this
agreement shall terminate December 31, 1995 .
13 . Either party hereto may terminate this agreement
upon ten ( 10) days written notice.
14 . The terms of this agreement shall be severable. In
the event that any of the terms or provisions of this
agreement are found to be void or otherwise unenforceable, the
remainder of this agreement shall remain in full force and
effect.
CITY OF ELGIN
By .4.. 2 -4,
Richard B. Helwig
City Manager
Attest: 4
k-&-)../42 Dolonna Mecum
City Clerk
NEI_:.RHOOD HiUSING VICES
; :' ' /
Bonnie Conte
Board President
-2-
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Elm
Agenda Item Nom (1/
April 12, 1995
TO: Mayor and Members of City Council
FROM: Richard B. Helwig, City Manager
SUBJECT: Purchase of Service Agreement with
Neighborhood Housing Services of Elgin, Inc.
PURPOSE
The purpose of this memorandum is to provide the Mayor and
Members of the City Council with information on the City's
annual Purchase of Service Agreement (PSA) with Neighborhood
Housing Services of Elgin (NHS) .
BACKGROUND
NHS Success in Elgin
Incorporated in Elgin in 1981, NHS provides a mechanism to
renew pride, restore confidence, promote investment and revi-
talize Elgin neighborhoods. The achievements of NHS in the
past have been accomplished through a partnership of local
residents, financial institutions, the corporate and business
community, and city government. NHS of Elgin is one of 150
such organizations serving neighborhoods across the country.
Organized as the Neighborworks Network, NHS 's around the
country revitalize neighborhoods through cooperative efforts .
The Federal Neighborhood Reinvestment Corporation offers the
local NHS training, grants, and support services.
NHS provides the leadership and technical expertise in resi-
dential rehabilitation projects ($155,000 in direct rehab
loans impacting 27 units in 1994) and home ownership programs
(a new NHS first mortgage origination program provided needed
financing to eight prospective homeowners totalling more than
$500,000' in mortgages) . NHS last year bought, rehabilitated,
and sold both 216 North Gifford and 407 North Gifford. A
variety of neighborhood improvement projects include a tool
lending library, paint program, and grass seed for residents.
Mayor and Members of City Council
April 12, 1995
Page 2
City Support for NHS
The City's 1994 PSA with NHS provided $25,300 for a neighbor-
hood coordinator for the Save Our Streets (S.O.S. ) program.
Under direction of Ms. Betty Skyles, S.O.S. has coordinated
youth' events in the target neighborhood, building partner-
ships with groups such as the City Parks and Recreation De-
partment, the Boys and Girls Club, and the Elgin Police De-
partment. S.O.S. produces a neighborhood newsletter, coordi-
nated the Anti-Gang and Drug Rally, the Clara Howard Park
renovation, the Boom Box Bust, and special experimental park-
ing restrictions .
The 1995 PSA contemplates the same $25,300 for the S.O.S.
neighborhood coordinator as NHS expands into the new target
area on the near northeast side. The City has identified
this area as a model for inner-ring neighborhoods in the 1995
Budget and Program Strategies document.
NHS has acquired a building for its office in the new target
area located at 300-302 North Douglas Avenue. The City
helped make this acquisition possible through a donation of
the former NHS office owned by the City at 205 North
Gifford. The new Douglas Avenue office location located
adjacent to the Salvation Army was a six-unit structure. A
planned unit development application is underway with the
City. The PUD provides for NHS offices including an ultimate
return of the building to a two-unit when NHS disposes of the
property.
Overcrowding is a real problem in the neighborhood. In order
to bring about a reduction in the density of the neighborhood
and to make for a more efficient rehabilitation, it is desir-
able for NHS to re-establish as few dwelling units as possi-
ble. In forgoing $500/month rent for each unit, NHS will not
receive $12,000 in rent a year. It is therefore proposed the
PSA include not only the neighborhood coordination function,
but also payment for the additional $12 ,000 for a total value
of $37,300. _
COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED
The NHS Board President has executed the PSA.
Mayor and Members of City Council
April 12, 1995
Page 3
FINANCIAL IMPACT
The City's 1995 budget includes $25,300 for the NHS PSA
(010-6902-719-80 . 16 ) . The additional $12,000 necessary for
the proposed PSA can be funded through savings in not having
a PSA with the Miss Illinois Scholarship Pageant
(010-1902-709.80-90) which had a budget of $10,000. The
balance of $2,000 will be off-set with expenditure savings
during the year. A budget amendment is required.
LEGAL IMPACT
None.
RECOMMENDATION
It is recommended that a resolution authorizing execution of
a Purchase of Service Agreement with Neighborhood Housing
Services be prepared for the May 10 regular agenda.
Respectfully submitted,
Clay "Larson
Budget/Public Information Officer
1 ."4:111411i.41C4D4464101‘
Rog K. Dahlstrom
Planning Director
Richard B. Helwig
City Manager
RBH/sg
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