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HomeMy WebLinkAboutApril 22, 2008 AGENDA HOUSING & REDEVELOPMENT AUTHORITY April 22, 2008 7:00 P.M. PARKVIEW VillA, COMMUNITY ROOM B, 965 40TH AVE., COLUMBIA HEIGHTS, MN 1. Call to Order 2. Roll Call Tammera Diehm, Chair Bobby Williams, Vice Chair Dennis Ecklund Jr., Secretary/Treasurer Bruce Nawrocki Bruce Kelzenberg 3. Pledge of Allegiance CONSENT AGENDA 4. Approve minutes of January 23, 2008 5. Approve Financial Report and payment of bills for January, February and March 2008 on Resolution 2008-03 Motion: Move to Approve the Consent Agenda Items #4 and #5, as listed. BUSINESS ITEMS 6. Report of Management Company 7. Resident Council Minutes 8. Citizen Forum* 9. Management Agreement with Common Bond Motion: Move to Approve the Management Agreement, dated February 1, 2008, between the Columbia Heights Housing & Redevelopment Authority (HRA) and Common Bond Housing as amended; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. 10. Other Business The next regular HRA meeting will be Tuesday, July 22, 2008 at Parkview Villa. *At this time, citizens have an opportunity to discuss with the HRA items not on the regular agenda. The citizen is requested to limit their comments to five minutes. Please note the public may address the HRA regarding specific agenda items at the time the item is being discussed.) HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF JANUARY 23, 2008 Call to Order ~ The meeting was called to order by Chair, Tammera Diehm at 7:45p.m. Roll Call- Tammera Diehm, Bruce Nawrocki, Bobby Williams, Dennis Ecklund Jr., and Bruce Kelzenberg Pledqe of Alleqiance CONSENT AGENDA Election of Officers The current officers are Diehm as Chair, Williams is Vice Chair and Jindra was Secretary/Treasurer. Motion by Kelzenberg, second by Nawrocki, to nominate Diehm for Chair, Williams for Vice Chair and Ecklund for Secretary/Treasurer. All ayes. Motion carried. Approve Minutes and Financial Reports Approve the Minutes of October 23,2007, November 27, 2007 and January 14, 2008 Meetings and Financial Reports for the months of October, November and December, 2007 on Resolution 2008-01. Nawrocki stated he found two amendments: 1) meeting of November 27'h, the agenda item for Resolution 2007-08, Parkview Villa North Notice to Vacate Policy, the motion says Szurek aye and it should say Diehm aye and; 2) in the minutes of the special meeting of January 141h, under the contract for new management, he did state he felt the local bank should be used and would like that inserted into the minutes. Motion by Williams, Second by Kelzenberg to approve the minutes as amended. All ayes. Motion Carried. Nawrocki asked a couple of questions on checks that were made out. Gravemann and Lindig explained each one for him. Motion by Williams, second by Kelzenberg, to approve the financial reports as written. All ayes. Motion Carried. HRA RESOLUTION 2008-01 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR OCTOBER, NOVEMBER AND DECEMBER OF 2007 AND PAYMENT OF BILLS FOR THE MONTHS OF OCTOBER, NOVEMBER AND DECEMBER OF 2007. WHEREAS, the Columbia Heights Housing and Redevelopment Authority (HRA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the HRA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the HRA to examine the statement and treasurer's vouchers Of bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of October, November, December of 2007 and the list of bills for the months of October, November, December of 2007 are attached hereto and made a part of this resolution; and WHEREAS, the HRA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW, THEREFORE BE IT RESOLVED by Ihe Board of Commissioners of the Columbia Heighls Housing & Redevelopmenl Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and Housing & Redevelopment Authority Minutes January 23, 2008 Page 2 of 5 BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Housing & Redevelopment Authority. Passed this 23rd day of January 2008. BUSINESS ITEMS Report of Manaqement Company Nick Gravemann stated he was hoping to be able to report that we received the grant for the north boiler replacement from MHFA, but he didn't hear from them yet. Nawrocki asked the status of the heat problem in unit 414 and in unit 802 the toilet problem. Gravemann stated the heat was fixed and the toilet was found through Home Depot and was replaced. Diehm asked about the waiting list. Gravemann stated they are very full, but eventually the south will need to be advertised in the local paper to help fill it back up. Resident Council Minutes Ecklund stated he found an error in the January report. It states that Laura Sheak is the Secretary and it should read Manager. Checking $5,691.03, and Savings $2,272.26, donated caps, gloves, etc. to the schools. Diehm stated she liked the fact he was reporting the number of residents attending the meeting. Citizen Forum- None Diehm stated all of the board members received an anonymous email today requesting some topics be brought up tonight at the meeting. They turned it over to our legal council. Because of the tone and some of the things that were said in that email they cannot comment on it tonight. Diehm introduced Scott Clark as the new Community Development Director. He replaced the position that Bob Streetar was in. Bob took a position with the City of Oakdale. Scott has a long history of working with Cities including Brooklyn Park, Arden Hills and Elk River. Approve CommonBond Management Contract Clark stated at your special meeting in November you selected Common Bond as the new management company for Parkview Villa. Staff has been working with their staff, Bob Alsop, our City attorney and the Finance department to prepare a Management Agreement. He wanted to make sure they all had the most current copy, which has the pink highlighting on the first page. All of the changes made to the document are in bold. Clark pointed out some of the key changes to the original draft from CommonBond. He Housing & Redevelopment Authority Minutes January 23,2008 Page 3 of5 said one of the important ones was on page 3, the language regarding authorizations. It is what they can do on their own before they have to come to us as staff, on an administrative level and/or ultimately before the HRA for approval. Diehm asked if the existing authorization for the management company is $2,000. Clark stated this is exactly the same language as the current contract with Walker. Diehm stated she didn't believe staff approval right now is to $15,000 and asked Walker staff what they have been doing. Gravemann stated the current arrangement is that anything from $0 to $2,000 would be approved by Walker staff, from $2,001 to $14,999 has been approved by Bob Streetar, and anything $15,000 or over is approved by the board. Clark stated, actually it is Walt's signature as Executive Director that is used for approval between $2000 and $15,000 per the current agreement. Clark stated on page 7, it memorializes the owners, occupancy policies and emphasizes the local preference language. Diehm stated that it should be subject to change by the owner, as we don't want to be locked into that by contract if we decide to change our occupancy policy. Clark asked if he could use the words "as amended from time to time". Diehm stated that would be perfect. Clark stated on the top of page 10, we put in a termination for convenience of either party. We aren't sure if the HRA wants this in here or not. If the HRA wanted a 60-day notice, the only thing that CommonBond would be asking for is that it wouldn't be acted upon for a period of one year, because there are costs they have incurred over the first 12 months. Ecklund Jr. asked if HUD doesn't give approval of the contract before February 1st, does Common Bond still take over and has Common Bond hired staffing for the building yet. Clark stated Common Bond would take over. Alyssa Hervey, Common Bond Compliance Specialist stated they are still in the process of hiring, but the manager and maintenance persons would be there on the 1st and that temporary staffing would be used until the rest of the positions are filled. Nawrocki stated in the past he requested the board should be involved in the interviewing process, and didn't see that in the contract. Diehm asked if he was talking about the initial approval before someone is hired for the managers position. Nawrocki stated yes. Diehm asked for Hutsell's comments. Hutsell stated that would be fine if they want to add that to the agreement. Clark asked Nawrocki if he was acknowledging the new manager. Nawrocki stated yes. Nawrocki stated in Section 2.2 it stated the management fees would not increase for a period of five years, is that correct. Clark stated that is correct. Housing & Redevelopment Authority Minutes Janumy 23,2008 Page 4 of 5 Nawrocki asked on page 6, under insurance, why do we have liability if they have done something in error. Diehm stated if they did something wrong, or illegal then it would be their responsibility and for local misconduct or gross negligence we would come in with our insurance. Hutsell asked who is the current insurance carrier for the City. Clark stated it is through the League of Minnesota Cities. Hutsell requested staff give him the contact person from the City so he could review the coverage. Clark stated he would look into that. Kelzenberg wondered about the 60-day cancellation policy. Diehm stated in the past we felt it was critical that provision be put in there. Nawrocki stated there was some language in there that talked about some clause, we should have the ability to terminate quickly. Clark stated that was in Section 10.1. Nawrocki stated the 60-days should be changed to 90 or 120 days. Clark stated Hutsell would be in favor of eliminating that from the contract. Diehm stated if either party felt if this isn't working we should tell them and if we couldn't come to an agreement we could terminate. Diehm requested it be changed to 14-days, which would give us enough time to call an emergency HRA meeting if needed. Clark stated he would make the change. Diehm asked if any residents have any questions on the agreement or the process. Resident, Don Camp, Unit #608, asked if a person gets hurt outside the building, do you have insurance to cover it. Diehm stated yes we do, and requested management take extra precautions to make sure we don't have many claims. Clark clarified the changes the board wanted made to the agreement. They were: 1) adding language acknowledging the hiring of the existing building manager and recognizing that any future building managers would have to be approved by the Board; 2) eliminate number 4.3, due to it being spelled out in 3.2; 3) in 7.4 we will review with the City attorney, in addition to the Chair, as part of the team; 4) under 7.8 the occupancy agreements as amended from time to time; 5) under 10.1 a 14-day provision as notification oftermination is concerns; and 6) the elimination of 10.2. Diehm stated for the 10.1 change to 14 days, we should have Common Bond specify an address. Clark agreed to include that in the changes. Motion by Nawrocki and second by Williams, to accept the amended Management Agreement, contingent upon approval by the City Attorney and HUD, and that the HRA Chair would be involved in the final document review. All ayes. Motion Carried. Resolution 2008-02. Desiqnatinq Deoositorv Clark stated the document is quite explanatory. Diehm asked if Common Bond was in agreement with this resolution. Hutsell stated he was. Motion by Nawrocki, second by Ecklund Jr., to Adopt Resolution 2008-02, a Resolution Designating Depository for the Columbia Heights Housing and Redevelopment Authority (HRA). All ayes. Motion Carried. Housing & Redevelopment Authority Minutes January 23, 2008 Page 5 of5 Adiournment Chair, Diehm adjourned the meeting at 8:45 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\HRAMinules 2008\1-23-2008 COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) Meeting of: April 22, 2008 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: 5 DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Lucia Claussen BY: DATE: April 17, 2008 BACKGROUND: The bound Financial Report for the months of January, February and March 2008 on draft Resolution 2008-03 is attached for review. RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2008-03, Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) approving the Financial Statement and Payment of Bills for the months of January, February and March 2008. HRA ACTION: H:\HRAConsent2008\January. February, March Fin Rep 2008 HRA RESOLUTION 2008-03 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR JANUARY, FEBRUARY AND MARCH OF 2008 AND PAYMENT OF BILLS FOR THE MONTHS OF JANUARY, FEBRUARY AND MARCH OF 2008. WHEREAS, the Columbia Heights Housing and Redevelopment Authority (HRA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the HRA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the HRA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of January, February and March of 2008 and the list of bills for the months of January, February and March of 2008 are attached hereto and made a part of this resolution; and WHEREAS, the HRA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Housing & Redevelopment Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Housing & Redevelopment Authority. Passed this _ day of ,2008. MOTION BY: SECONDED BY: AYES: NAYS: Chair-Tammera Diehm Attest by: Cheryl Bakken, Assistant Secretary H:\Resolutions2008\HRA 2008-03 Date: TO: FROM: RE: February 19,2008 Cher Laura Sheak, Property Manager January 2008 Management Report for Parkview Villa Parkview Villa There were 9 police calls for the month of January, 1 for suspicious vehicle, 6 medical, 1 theft-auto more than 2500, and 1 for death (DOA). WArT LIST 18 applicants for Parkview Villa North (resident C.H.) 17 applicants for Parkview Villa North (employed in C.H.) 59 applicants for Parkview Villa North (non-resident) 05 applicants for Parkview Villa South (resident C.H.) 20 applicants for Parkview Villa South (non-resident) 00 applicants for Parkview Villa South 2BR (resident) 01 applicants for Parkview Villa South 2BR (non-resident) Occupancy (please note this is current) North is 100 out of 101 South is 45 out of 45 Move outs: 708-1 bedroom: Death, 1/31/2008 Move ins: 708 .- 1 bedroom 3/15/2008, from waiting list, (Columbia Heights Resident) Maintenance Report: . No record of maintenance reports for the month of January found. Parkview Villa Apartments 965 40tl1 Avenue NE, Columbia heights, MN 55421 Owned by the City of Columbia Heights HRA Managed by ComtnonBond Communities Management report for Parkview Villa for the month of February 2008 Prepared by Laura Sheak, Property Manager Police Report There were 9 police calls for the month of February: 1 for suspicious vehicle, 4 medical, (one social service referral), 1 emergency commitmentlhold (suicide threat), 1 theft $250.00 less, 2 suspicion. Wait List 23 applicants for Parkview Villa North (resident C.H.) 16 applicants for Parkview Villa North (employed in C.H.) 66 applicants for Parkview Villa North (non-resident) 05 applicants for Parkview Villa South (resident C.H.) 20 applicants for Parkview Villa South (Non-resident) 00 applicants for Parkview Villa South 2BR (resident) 01 applicant for Parkview Villa South 2BR (non-resident) Occupancy North is 101 out of 101 (100% occupancy) . 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CommonBond is the largest non- profit provider for affordable housing in the upper Mid- west sponsoring 94 unique housing communities. Since 1971, they have been provid- ing housing and services to fami- lies, seniors and people with special needs. We are excited to be here and would like to meet all of you. So please feel free to stop by the office to introduce yourselves if you haven't already. ~ Work orde:r procedure ~ Managed by CommonBond Communities February 2008 Upcoming events! . Resident Council Meeting February 11th, 7:00 pm. . St. Patrick's Day Entertain- ment! . 7:00 pm .Room B ~ W We have placed one out at any work order time. This will be forms outside convenient if you . the office door need to fill one out so you can fill on the weekend. Once completed you can place it in the box located near the office. During off hours you can call us at 763-706-3800 and we will complete a work order for you. . Happy St.Patrick's Day! St. Patrick's Day Fun facts: . -There are 34.7 mil- lion U.S. residents who claim Irish an- cestry. This is al- most nine times the population of Ire- land!s St. Patrick is the patron saint of Ireland. Thought forthe month: "I havE? never in my life en- vied a human being who led an easy life; I have envied a great many people who led difficult lives and led them well"". Theodore Roosevelt MANAGEMENT OFFICE Hours: 8:00 a.m.- 4:30 p.rn. Mondav through Fridav Office telephone: 763-706-3800 Office closed, Monday February 18th, to observe President's Day Site Staff: Laura Sheak:- Property Manager Jennifer Eells- Assistant Prop- erty Manager COOK BOOKS FOR SALE! Dorothy Shaffer is selling cookbooks at $10.00 each. Call - 763-789-4408 Proceeds go to the Resident Council . Brittney Evans-Caretaker Bob Richardson-Maintenance After Hours Maintenance Emergency: 651-291-1750 , Newsletter Managed by CommonBond Communities MANAGEMENT OFFICE 763-706-3800 After Hours Maintenance Emergency: 651-291-1750 Hours: Monday through Friday 8:00 am to 4:30 pm MARCH 2008 Laura Sheak, Property Manager Thought for the month! "We act as though comfort and luxury were the chief requirements of life, when all that we need to make us really happy is something to be enthusiastic about." upcoming Events! -<:harles Kingsley Resident Council Meeting - March 10th, 7 :00 pm Room B Entertainment/Treats - March 17th, 6:00 pm treats in Room A. Entertainment at 7 :00 pm, Room B. Jennifer Eells, Assistant Property Manager Bob Richardson, Maintenance Brittany Evans, Caretaker 1'p.ip~ G~eep! ~c~cle Our landfills are filling up ! You can make a difference in preserving our planet's resources and help control pollution. Landfills have decreased from 5,000 nationwide to fewer than l,500 in the last ten years. These trends are good, but with our population increasing, we need to do more. About 30% of the nation's newspapers, office paper, cardboard, aluminum glass and steel containers are being recycled. If we can reuse these products, we can reduce our waste. Making new aluminum cans, new glass and new paper products out of recycled material saves on energy! ( http://www.svswa.org/recycling/why-do-we- recycle.din) Happ~ St. Patrick's Da~! March 17th FOR YOUR INFORMATION: The Do-Not-Call registry number is 1-888-382 -1222. Register your telephone number and prevent unwanted calls from telemarketer's (Columbia Heights & Fridley Sun-Focus) Dorothy Shaffer is selling cookbooks at $10.00 each. Call 763-789-4408. Proceeds go to the Resident Thanks to all of you for your cooperation in moving your cars during our snow removal process. This helps us keep the parking lot free of snow and ice build up! 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N ,_ c m E "" ~ OJ E .12 t) m " () jll " Ul ill ~ (L U 0. a in '" o " lJ) 0:: 0-; ~ E th () 1'- M 2 0.- Nmj---- .0 " [j m ~ o E LD m Nro \, "' m t) .~ .~ am ,,(f) '(5 5 o 'c E :0 m E '" E -q ~ a NmO I I I 'm ::< .'!! :n $ '" c m E "" ~ OJ E .0. ;J o .8 ~ I,;; OJ"" 0' ~ ~ Parl(view Villa Apartments 965 40th Avenue NE, Columbia heights, MN 55421 Owned by the City of Columbia Heights HRA Managed by CommonBond Communities Management report for Parkview Villa for the month of March 2008 Prepared by Laura Sheak, Property Manager Police Report There were 10 police calls for the month of February: 1 Fire Alarm, 3 medical, lcivil dispute, 1 noise residential, 3 welfare check, 1 narcotics information. Wait List 15 applicants for Parkview Villa North (resident C.H.) UPDATED 16 applicants for Parkview Villa North (employed in C.H.) 66 applicants for Parkview Villa North (non-resident) 05 applicants for Parkview Villa South (resident C.H.) 20 applicants for Parkview Villa South (Non-resident) 00 applicants for Parkview Villa South 2BR (resident) 01 applicant for Parkview Villa South 2BR (non-resident) Occupancy North is 101 out of 101 (100% occupancy) South is 45 out of 45 (100% occupancy) Move Outs None Move INS None Maintenance RevOI"l See attached 1: o Q. Q) ... Q) o C ell C .S! c 'n; ::E ..!l! :> ~ ~ ... ell a. OC>OC> 00 00 !~~ .!!~t? c. (V) (V) E o u co 00 coco 0000 0000 NC'\lNN ---- MLOLOM ----- C"?MC")(v) ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ro ro ro ro ro ro ro ro m ro m ro ro ro m m m m m m ro ro ro m m ~~~~~~~~~~~~~~~~~~~~~~~~~ I I I I I I I I I I I I I I I , I I , I I I I I I ~~m~LOLOmmmmIDmID~~~oooa~NNMM ~..-..-N..-..-"-"-"- "0 o $' "0 .ill ro (J 'C .D .2 c -"" (J E E ro ill ill :: 1i) 1il rn t.... :J >.>.c 0 0.. 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C "' ~ ......6;~~ s:: o :aE t ~ ~ ~ fjg;..e ~ :;s ~ ~ ~ ~ ~ ~ ~ ~~~ ~;IJ-t j-t -~- Ne\Nsletter Managed by CommonBond Communities Owned by the City a/Columbia Heights MANAGEMENT OFFICE 763-706-3800 APRIL 2008 ~ After Hours Maintenance Emergency: 651-291-1750 t, 0 ~ Thought for the month! Hours: Monday through Friday 8:00 a.m. to 4:30 p.m. Laura Sheak, Property Manager Jennifer Eells, Assistant Property Manager Tom Satzer, Maintenance Technician Brittany Evans, Caretaker Sometimes one likes foolish people for their folly, better than wise people for their wisdom. ~'Itlizalae:tft, (j aoleell Dorothy Shaffer is upcoming Events! S$~ig~~~~~~oo~:~t 763-789-4408. Resident Council Meeting - Monday, April 14th, 7:00 p.m., Room B Old Country Buffet - Monday, April 14th at 11: 15 a.m. Ej\~rfH 1/4 ~ 49~JL ~2! Fruit and Nut coleslaw An Earth Day Recipe! 1 (8 ounce) can sliced pineapple, drained with juice reserved 2 tablespoons lemon juice 1 banana, peeled and sliced 3 cups shredded cabbage 1 cup diagonally sliced celery 1 (11 ounce) can mandarin oranges, drained 1/2 cup chopped nuts 1/4 cup raisins 1 (8 ounce) container orange flavored yogurt 1/2 teaspoon salt Drain pineapple, reserving 2 tablespoons juice. Cut pineapple onto thin strips, and place in a large bowl. In a medium bowl, combine reserved pineapple juice and lemon juice. Toss with banana, and add to pineapple. Add cabbage, celery, mandarin oranges, walnuts and raisins. toss to combine Blend yogurt and salt together, and add to cabbage mixture; toss lightly. Cover, and refrigerat~ until thoroughly chilled. Please weleorne our new Maintenance technician Tom Satzer. He comes to Parkview Villa with over twenty years of experience working in a multipl<e story senior building similar to Parkview Villa.. We are happy to have him join our staff.. When you see Tom, please introduce yourselves if you have a minute! And fhatlk yo.. Bob Richardson for helping us out with the many work orders during the month of February, and also keeping the sidewalks and parking lot clear from snow!. ",..,.lnI11__ Jim Kordiak, Anoka County's Commissioner, along with his tax assistants, will be available on Thursday, April 24th, from 1 :30 p.m. to 4:00 p.m. to help residents of Park view Villa complete their Minnesota renter's credit form. They will be in the community room. You need to bring with you your current income information or your Federal 1040 and Certificate of Rent Paid (CRP). You were given your CRP in January, but if you need another one, please notifY the office before April 24th! We will be happy to make another copy for you. You can sign up for this free service in the Parkview Villa office beginning Tuesday, April 15th. Apr. \). 1008 \ 1:15AM PARKVIEW VILLA No,1185 p. 1/4 Resident council Meeting February 11 2008 The meeting was called to order at 7p,m.by council President Dennis Ecklund with a pledge to the flag, All members of the council were present also Present were Laura Sheak Office manager and Lucia Clauson Director. The secretary's report was given, The treasurer's report was given by Ray Scotte Savings$227226 Checking $5691.03 Pelli cash $81.47 Jackie gave the bingo report Jessie gave the Monday morning coffee club report for Leonard as for January On hand $58.15 Donations were$19,30 Spent $3.50 on hand$73.95 Jessie gave the round table report Jan 1sl, had $4.57 Got donations of $13.43 Spent $17,34 Balance on hand .66 Cecelia gave the Sunshine report. She sent cards to Asnake Ruth Finch A card was sent to the family of Helen Smith She passed away January 15th A moment of silence was held for her. Terry White the welcome person had no new residents to report this month. She will be taking over the Entertainment from Vivian. Vivian gave the upcomin~ entertainment Hie Silver star ladies will entertain on Wednesday February 27 at 2 p.m. Also the Old Log Theater is having a play called The Incoruptable April 30lh for those that are interested. We had thank you letters from the veterans affairs for the lap robes, Those letters Are posted by the mail boxes. Murzen Hall is collecting paper goods for The Ronald Mc Donald house the month of February Terry would like volunteers to help her with the flower circle In the spring. We have a new NO PARKING sign to put up by the circle. The manager thanked residents for getting their rent paid on time Also if the office door is closed during regular office hours plE!ase wait as they are working on non public papers. People are NOT to leave their apartment door.propped open. If you have microwaves or those type articles to, dispose of Do NOT put them in the recycle dumpster If you need help ask the office. Feb. 17'h will be Men's bingo at 7p.m. . A thank you was given to James Peletalr for all the help he has given us. Money winners Vi Tabb #2 Kathy Peterson #32 Ardele Stanius #13 Dianne Powel #46 Flowers toMildred Struiss#16 Pie from Bakers Square toBernice Enright#36 and Vivian Fayhe#38 The meeting ended at 7.45p.m.. Submitted by Jessie Chudek Secretary Apr.I). 2008 11:25AM PARKVIEVI VILLA No.1285 P 3/4 Resident Council Meeting March 10 2008 The meeting was called to order at 7P M. by council President Dennis Ecklund with a pledge to the flag, All members of the council were present. Also present were Laura our office manager and Jennifer assistant property manager Laura introduced US to out new maintenance man, His name isTom Fester, he spoke briefly about his 20 year experience in a senior building. Laura also stated no religious articles are to be hung on residents doors,No rugs are allowed by your door in the hilll. Also be sure to wrap your garbage in plastic before throwing it down the shoot. Jennifer spoke about the recertification for the north building. Jessie read the minutes of the last meeting Ray gave the treasurery report Savings$2272.26 Checking $4787,50 Petti cash $47.47 . Jackie gave the bingo report $61.75 Leonard gave the Monday morning coffee club report $85.82 Jessie gave the round table report $13.27 Cecelia gave the sunshine report, Terry White gave the welcome report ,A new .resident in #708 The name is Shagfka Terry also gave her last entertainment report as she must quit because of her health. Monday March 1t~ there will be a band in room "6" at 7 PM to entertain At 6pm there will be a treat served in "A" room April 14t~ We will be going to Old Country Buffet At 11: 15a, m. Cost to residents is $4,00 Put the money in an envelope with your name on it and put it under the door al $ 509, We did not get enough votes to go to the old log theater Anyone that would like to volunteer to take entertainment see Denny. T ell your friends or workers not to park in the circle that area is for pick up or drop off only, We were shown Arlene Peterson's award given to her for volunteering at S>A>C>A> also for watering the city flowers at 40th and Central. The meeting closed at 8,45pm Money winners #12 Dorothy Salwaii #41 Betty Morrison #2301ive Stanislawski Ardel Stanuis who donated hers 10 the round lable coffee club, Submitted by Jessie Chudek Secretary, AD r 17. 2008 II: 25AM PARKVIEW VILLA No.1285 p. 4/4 Resident Council Meeting April 14 2008 The meeting was called to order at 7pm by council president Dennis Ecklund with a salute to the flag. Also present were Laura and Jennifer. Jessie read the secretary's report. Ray read the treasures report Savings $227517 Checking $4492.50 PeUi cash $66.47 Jackie gave the bingo reportbahance of $100.7 Jessie gave leonard's coffee club report $85.82 on hand $91.57 Jessie gave the round table report started with $2227 spent $15.27 Balance $7.00Cecelia gave the sunshine report sending cards to Robert Grooms,Ruth Hillstad and Jerry Moris. Manager Laura said if anyone falls or gets hurt let the office know. It is against the law to take shopping carts that belong to the store to your home. Do not leave large articles in the hall.Ask the office and they will inform you as to where they should be put for disposal. There is a recycling fee for Mlcrowaves,etc. Chairs may be put in the dumpster. Feeding of the geese is not allowed by the building :feed them by the pond Jennifer mentioned to keep track of your community service hours. Pet information should'be updated every year Sign up for tax help from Jim Kordiak Who helps with your rebate. Residents should tell their relatives friends and delivery people Do not park in other resident assighned parking spots. Smokers must stay 10 feet away from entery doors and use the ashtrays please. We Will ask Lou our bloodpressure lady if she could come on Thursday's because Tuesday is grocery bus day and.those people miss her appointment. Our cart is still missing. The new dryer is now in on the 2nd floor. We will see if the city camera picked up the picture of the vandals who did all the damage to our doors. A vote was taken to buy a key card for Joe Goodman for the door as he delivers prescriptions to seniors also helps in other ways for us. We took a vote to serve sandwiches and cake on V.F.W. bingo nights. Denny and Dorothy Shaffer will take the May 8th nite. Jackie Ovshak and Mike Farmer will take June 5th. Wednesday April 30lh will be the birthday party for the 90 year olds with cake and ice cream at 6p.m. and music by Ron Peters at 7 p.m. Everyone is welcome. June 11th Wednesday at 6 p m. we will have our Moms and Dads pot luck with brauls and burgers on the grill. All residents shOUld bring food to share. We voted to have our bazaar Saturday October 4th Dorothy will take the kitchen Jessie Chudek the crafts Vi Sharp the Minni Raffle. Bakery Dianne Powel and Joe Kunza Advertising by Denny Ecklund.Treasurer Ray Scottee Jessie will sell tickets. We need a person for white elephant head also helpers to set up tables The meeting adjourned at 7.45 Money winners were #30 Pete Hanson #54 Dorothy Larson #28 Vivian Fayhey #23 Bernice Gacek Submitted by Jessie Chudek COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of April 22, 2008 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: 9 DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Management Agreement BY: Scott Clark BY: DATE: April 17, 2008 BACKGROUND: Over the past several months the City Attorney has worked to modify the Management Agreement, dated February 1, 2008, as initially approved by the HRA on January 23, 2008. The major change is that HUD will not allow a five-year contract since the HRA has an old (1969) Annual Contributions Contract (ACC), which limits contracts to two years. Based on this, Common Bond has agreed to new provisions, which is a two-year contract with three one-year extensions. Since the spirit and intent of the original agreement was for five years, staff recommends that the City work with HUD to modify the 1969 ACC to allow the same. Staff is uncertain if this endeavor can be successful but it appears that the effort is merited. Attached is a redlined copy that illustrates all changes. RECOMMENDATION: Staff recommends the board approve the amended Management Agreement with Common Bond. RECOMMENDED MOTION: Move to Approve the Management Agreement, dated February 1, 2008, between the Columbia Heights Housing & Redevelopment Authority (HRA) and Common Bond Housing as amended; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. HRA ACTION: MANAGEMENT AGREEMENT FOR Columbia Heights HRA 590 40th Avenue N.E. Columbia Heights, MN 55421 Parkview Villa North and South Beginning: February 1, 2008 Ending: January 31, 20132010 Owner: Columbia Heiahts HRA AGENT: CommonBond Housina Rev.02j08 LIST OF PROVISIONS: Section I APPOINTMENT OF THE AGENT 1.1 Appointment and Acceptance 1.2 Detinition and Description of the Premises 1.3 Term 1 .4 Meetings With the Owner and the Agent Section 2 EMPLOYEES OF THE AGENT 2.1 The Agent's Authority to Hire 2.2 Compensation Section 3 BANK ACCOUNTS 3.1 Operating Receipts and Expense Account 3.2 Security Deposit Accounts 3.3 Fidelity Bond Section 4 RECEIPTS & DISBURSEMENTS FROM OPERATING ACCOUNT 4.1 Collections and Delinquencies 4.2 Payments and Expenses Section 5 FINANCIAL AND OTHER REPORTS 5.1 Records and Reports 5.2 Operating Budget 5.3 Other Accounts 5.4 Reports Section 6 ADVERTISING Section 7 SERVICES OF THE AGENT 7.1 structure and Warranties 7.2 Maintenance and Repairs 7.3 Preventive Maintenance 7.4 Insurance 7.5 Service Requests of Residents 7.6 Inspection of Units 7.7 Compliance of Residents 7.8 Selection of Tenants and Continued Occupancy 7.9 Government Orders 7.10 Federal procurement Requirements 7.11 Data Practices Compliance 7.12 HUD Mandated Contract provisions Section 8 NON-DISCRIMINATION Section 9 COMPENSATION OF THE AGENT. 9.1 Management Fee 9.2 For Modernization (Rehab & Construction Aproved by the Owner) 9.3 For Fire Restoration Section 1 0 TERMINATION OF THE AGREEMENT 10.1 Termination for Cause 10.2 Immediate Termination 10.3 Accounting Upon Termination Section 11 ASSIGNMENTS Section 12 AMENDMENTS Section 13 SIGNATURES Exhibit A - General Conditions for Non-Construction Contracts I 1 1 1 1 I I 2 2 2 3 3 3 3 3 4 4 4 4 5 5 5 5 5 6 6 6 6 7 7 7 8 8 8 8 9 9 9 9 9 9 10 10 10 10 10 12 This Agreement is made this CommondBond Housing (the "Agent"). between (the "Owner') and SECTION 1 APPOINTMENT OF THE AGENT 1.1 APPOINTMENT AND ACCEPTANCE The Owner hereby appoints the Agent as sole and exclusive Agent of the Owner to manage the property described in Section 1.2 herein (the "Premises as defined in Section 1.2 herein) upon the terms and conditions provided herein. The Agent accepts the appointment and agrees to furnish the services of its organization for the management ot the Premises. The Owner agrees to pay for all expenses in connection with such services as authorized by this Agreement. The Owner's Board acknowledges the hiring ot the Agent's current Building Manager and requires that any future hiring of this position receives the authorization by the Board. 1.2 DEFINITIONS AND DESCRIPTION OF THE PREMISES As used in this Agreement: "Premises" shall mean the real property and the improvements, buildings, appurtenances and equipment thereon, of the Owner know as Parkview Villas North and South, located at 965 40th Avenue N.E., in the City ot Columbia Heights, State of Minnesota, and consisting of 146 dwelling units, underground garage spaces fo be renfed and no commercial or of her non-dwelling spaces. "Non-Housing Income" shall mean all amounfs actually collected by the Agenf, including all of her income and charges from fhe normal operafion of fhe Premises, including buf nof limited fo, parking, laundry income, forfeifed securify deposifs, pef deposifs, other fees and deposits, income from commercial or other non-dwelling space and other miscellaneous income. "Lease" shall mean the torm of agreement between the Owner and a Resident under the terms ot which said Resident is entitled to enjoy possession of a dwelling unit or the form of agreement between the Owner and an Resident under the terms of which said Resident is entitled to enjoy possession ot commercial or other non-dwelling space. "Rent" shall mean that monthly amount which a Resident is obligated to pay the Owner pursuant to the terms of a Lease. "Resident" shall mean a person occupying a dwelling unit in the Premises pursuant to a Lease. 1.3 TERM The term ot this Agreement shall begin from the 1 st day of February 2008, for a fi.veiw.Q-year term ending January 31. ~2lllO. unless soonor terminated sooner pursuant to Section 10 herein, The Aareement mav be extended for three additional one-vear terms at the sole discretion of the Owner. In order fo exercise lis ootlon fo extend the Aareement for an additional vear Owner must advise the Ace". in writina of Its Intention to exercise the ootion at least sixtv (60) davs orior to the end of the existlna term of the Aareement. 1.4 MEETINGS WITH THE OWNER AND THE AGENT The Agent agrees to cause an officer of the Agent to confer fully and freely with fhe Owner nof withsfanding fhe aufhorify given fo fhe Agenf in fhis Agreemenf. SECTION 2 EMPLOYEES OF THE AGENT 2.1 THE AGENT'S AUTHORITY TO HIRE On the basis of wage rates previously approved by the Owner, the Agent shall investigate, hire, pay, supervise, discharge and pay all employees, contractors, or other personnel necessary to be employed on site in the management, maintenance, and operation of the Premises. All employees shall be employees of the Agent. The Agent will conduct appropriate background checks in compliance with both State and Federal law for all employees working on the Premises. The Agent shall hire and have physically present at the Premises, all manageriai and non- managerial personnel necessary for the full and efficient performance of its duties under this Agreement. including the physical presence of responsible personnel at such times as may reasonably be requested by the Owner. 2.2 COMPENSATION All on-site personnel will be employees of the Agent and will be hired, supervised, and discharged by the Agent. Subject to Section 9.1 hereof, the Agent will be reimbursed for compensation (including benefits) payable by the Agent to on-site personnel and all local, state and federal taxes and assessments (including but not limited to Social Security taxes, unemployment insurance and worker's compensation insurance) incident to the employement of such personnel. Such reimbursements shall be paid out of the Operating Account. as provided in Sections 3.1 and 4.2 hereol, and will be treated as operating expenses of the Premises. Owner shall have no obligation with respect to employee withholding and taxes to assure that said amounts are timely paid to the proper third parties. Compencati0f\To the extent reauired bv aoolicabie federal law comoensation to be paid to Agent's on-site employees will be as prescribed by Wage Determinations of the U.S. Department of Housing and Urban Development to be obtained by Agent according to the rules and regulations of the U.S. Department of Housing and Urban Development. All employees of Agent working on-site shall be paid a wage comparable to other employees of the Agent based on job duties, skills, responsibilities and levels of supervision received or provided. Compensation (including benefits) payable to any off-site bookkeeping, clerical, or other managerial personnel who are employees of the Agent, plus all local, state and tederal taxes and assessements incident to the employment of such personnel will be borne solely by the Agent and will not be paid out of Owner's accounts or treated as operating expenses for the Premises. SECTION 3 BANK ACCOUNTS The various bank accounts established under this Agreement shall at all times be established in the Owner's name but under the Agent's control. The Agent's designees and the Owner's Executive Director shall be the only parties authorized to draw upon such accounts. No amounts deposited in any account established under this Agreement shall in any event be commingled with any other funds of the Agent. 3.1 OPERATING RECEIPTS AND EXPENSE ACCOUNT The Agent shall establish and maintain in a bank, reasonably acceptable to Owner, whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC) in accordance with the provisions of the Regulatory Agreement, in a separate bank account as the Agent of the Owner for the deposit of the money of the Owner, with authority to draw thereon for any 2 payments to be made by the Agent to discharge any liabilities or obligations ot the Owner incurred in accordance with this Agreement. The Agent shall not be held liable in the event ot the bankruptcy or the failure of a depository. This account shall be carried in the Owner's name and shall be designated of record "(Name of Premises)" Operating Receipts and Operating Account ("Operating Account"). The Agent shall establish such other special bank accounts as may be required by the Owner. Signatories entitled to make withdrawals trom any and all of these accounts shall be persons covered by the fidelity bond pursuant to Section 3.3 herein as well as the Owner's Executive Director. 3.2 SECURITY DEPOSIT ACCOUNTS The Agent shall collect. deposit, and disburse Resident's security deposits in accordance with the terms of the respective Leases as well as applicable State law. Such security deposits shall be deposited by the Agent in an interest bearing account, separate from all other accounts and funds, with bank or other financial institution whose deposits are insured by the FDIC. The Agent shall be responsible for any loss incurred by the Premises for its failure to comply with refunding of security deposits with accrued interest to Residents as required in the Minnesota Statutes, Section 504B.178, as amended. This account shall be carried in the Owner's name and shall be designated of record "(Name of Premises) Security Deposit Account". The Agent shall cause the amount of the Security Deposit Account to equal or exceed at all times the aggregate of all outstanding obligations by the Owner with respect to security deposits. 3.3 FIDELITY BOND The Agent shall furnish, at its own expense, a fidelity bond for $1.000.000.00 to protect the Owner against misappropriation of funds of the Premises by the Agent and its employees. SECTION 4 RECEIPTS AND DISBURSEMENTS FROM OPERATING ACCOUNT 4.1 COLLECTIONS AND DELINQUENCIES The Agent shall collect and deposit all rents and other charges due from Residents and all rents or other charges due the Owner from users of garage spaces. The Agent agrees. and the Owner hereby authorizes the Agent, to request, demand, collect, receive, and give receipts for any and all charges or rents which may at any time be or become payable to the Owner. Rents and other charges shall not be accepted in cash by the Agent. The Agent agrees to take such action, including legal action, with respect to delinquencies in payments due the Owner as the Owner may from time to time authorize. 4.2 PAYMENTS AND EXPENSES From the funds collected and deposited in the Operating Account, the Agent shall cause to be disbursed regularly and punctually in the order and priority as set forth below: A. The management fee owing to the Agent pursuant to Section 9.1 herein which includes payroll expenses for the services of Agent's on-site employees; B. All of the real estate kll\taxes. navments in lieu of faxes and insurance premium escrow payments required of the Owner, which payments shall be deemed to be part of the "operating expenses" of the Premises; and C. All remaining operating expenses of the Premises [which specifically exclude the Owner's mortgage loan principal and interest payments if any). The Agent shall negotiate (secure proposals in accordance with GwReFfederal Procurement Policy and Minnesota Law) and execute on behaif of the Owner, any contracts up to $1,500.00 3 for services, maferial or supplies, which are included in fhe approved Operating Budget for either Parkview Villa North or South. With respect to purchases or contracts for services, materiai or supplies exceeding $1,500.00 or for purchases or contracts not included in the Operating Budget, Agent shall negotiate (secure proposals in accordance with Owner Procurement Policy and Minnesota Law) and submit to the Owner for written approval and execution of the contract or purchase order. For contracts or purchases exceeding $1,500.00, but less than $15,000.00, Owner approval and execution of the contract or purchase order may be provided by the Owner's Executive Director. Any contracts or purchase orders exceeding $15,000.00 must be taken before the Owner's Board for approval and execution of the contract or purchase order. The Agent shall not incur liabilities on behalf of the Owner (direct or contingent), which require payment more than one year from the creation thereof, unless specifically authorized by the Owner. Emergency repairs involving manifest danger to life and property, or immediately necessary for the preservation and safety of the Premises, or for the safety of the Residents, or required fo avoid the suspension of any necessary services to the Premises, may be made by the Agent without regard to the cost limitation imposed by this Section with the understanding that the Agent, if at all possible, will confer immediately with the Owner regarding every such expenditure. In the event that Agent cannot confer with Owner prior to making an emergency expenditure, Agent shall provide Owner with immediate nofifiacationnotiflcation of the emergency expense as reasonably possible. Agent shall not execute any contract or propose any contract for approval by the Owner that involves a party named on the Excluded Parties List System maintained by the General Services Administration. All purchases and contracts shall be in the name of the Columbia Heights Housing and Redevelopment Authority and shall include any and all contract provisions required by State or Federal law. SECTION 5 FINANCIAL AND OTHER REPORTS 5.1 RECORDS AND REPORTS The Agent shall establish and maintain a comprehensive system of records, books, and accounts in a manner satisfactory to the Owner. All records, books, and accounts shall be subject to the examination at reasonable hours by any authorized representative of the Owner. With respect to each fiscal year ending during the term of this Agreement, the City of Columbia Heights will contract on behalf of the Owner to complete an independent annual audif. The Agent shall prepare Monthly Operating Reports which compare actual and budgeted income and expenses for the month and for the "year-to-date". The Agent shall prepare a Monthly Aged Schedule of Accounts Receivable and Accounts Payable. The Agent shall prepare a Monthly Analysis of Security Deposits and Monthly Cash Reconciliation. The Agent shall furnish such information as may be requested by the Owner from time to time with respect to the financial, physical, or operational condition of the Premises. 5.2 OPERATING BUDGET At least ninety (90) days prior to the beginning of each fiscal year for the Premises, the Agent shall prepare and submit to the Owner an Operating Budget, setting forth an itemized statement of the anticipated receipts and disbursements for the Premises. 5.3 OTHER ACCOUNTS Everything done by the Agent under the provisions of this Agreement shall be done as the Agent of the Owner, and all obligations or expenses incurred thereunder shall be for the account of 4 and on behalf of fhe Owner. Any paymenfs fo be made by fhe Agenf hereunder shall be made ouf of sums as are available in the Operating Account. The Agent shall not be obliged to make any advance to. or for the account of, the Owner or to pay any sum, except out of funds held or provided as aforesaid, nor shall the Agent be obliged to incur any liability or obligation for the account of the Owner without assurance that the necessary funds for the discharge thereof will be provided to the Agent. 5.4 REPORTS As directed by the Owner, the Agent shall prepare and submit to fhe U.S. Department ot Housing and Urban Development all reports, which the United States Government may require of the Owner. The Agent shall be responsible for maintaining the books and Elccounfaccounts of the Premises in accordance with accounting requirements of the U.S. Department of Housing and Urban Development. In oarticular. the Aaent shall maintain books and accounts which speciflcallv allocate all income received and exnenses or fees incurred to each of the two buildinas located on the Premises (Parkview Villa North and Parkvlew Villa Southl oursuant to the number of units In each of the buildinas. The Agent shall be also responsible for the preparation, execution and submission ot all financial reports required by the State of Minnesota and the U.S. Department of Housing and Urban Development. These reports shall be provided within the time period prescribed by the United States Government. The Owner shall be provided with a copy of each report submitted to the U.S. Department of Housing and Urban Development. If the Agent is unable to provide a report within the prescribed time period, the Agent shall advise the Owner of such fact no later than five days after the dafe that the Agent becomes aware that it will nof be able to submit the report within the prescribed time period. The Agent shall provide information regarding the status of each overdue report at each regular meeting of the Owner. The Owner, the U.S. Department of Housing and Urban Development and the Inspector General of the United States or their duly authorized representatives shall have full and free access to the Premises and to all books, documents, papers; and records of the Agent that are pertinent to its operation, including the right to audit and to make excerpts and transcripts from such books and records. The Agent shall maintain all files and records relevant to fhis agreement in accordance with the approved record refention scheduled provided by the HUD oftice. Agent shall be held accountable to the Owner tor any penalties imposed by the Department of Housing and Urban Development aaalnst the Owner tor deticient liIings as required by this Agreement. SECTION 6 ADVERTISING The Agent is authorized to advertise the Premises or portions thereof for rent, using periodicals, signs, plans, brochures, or displays, or such other means, as the Agent may deem proper and advisable. The Agent is authorized to place signs on the Premises advertising the Premises for rent, provided such signs comply with applicable laws. The cost of such advertising shall be paid from the Operating Account and shall be treated as an expense of fhe Premises. All advertising shall make clear that the Agent is the manager and not the Owner of the Premises. SECTION 7 SERVICES OF THE AGENT 7.1 STRUCTURE AND WARRANTIES The Agent shall obtain from the Owner a complete set of plans and specifications for the Premises and copies of all guaranties and warranties pertinent to construction, fixtures, and equipment for the Premises. Wifh the aid of this information and inspection by competent personnel, the Agent shall thoroughly familiarize itself with the character, locations, construction, layout, plan, and operation of the Premises and particularly of the electrical, heating, plumbing, air condifioning, and ventilating systems, and all other mechanical equipment. 5 7.2 MAINTENANCE AND REPAIRS The Agent is authorized and required to make or cause to be made, through services or otherwise, ail ordinary repairs and replacements reasonably necessary to preserve the Premises in its present condition and for the operating efficiency of the Premises, and all alterations required to comply with lease requirements, government regulations, and insurance requirements, subject to the limitations in paragraph 4.2. Subject to the limitations of Section 4.2, Agent shail make contracts for garbage and trash removal, fuel, oiL extermination, snow removaL elevator maintenance, and other ordinary and necessary services. The Agent is also aufhorized to decorate the Premises and to purchase or rent, on the Owner's behalf, ail equipment, tools, appliances, materials, supplies, and other ifems necessary for the management, maintenance, or operation of the Premises. Such maintenance and decorating expenses shail be paid from the Operating Account and shail be treated as an expense of the Premises. When taking bids or issuing purchase orders, the Agent shall act at all times in the best interest of the Owner and shail be under a duty to secure for and credit to the Owner ail discounts, commissions, or rebates obtainable as a result of such purchases. 7.3 PREVENTIVE MAINTENANCE The Agent shail develop and implement a preventive maintenance schedule including, but not limited to, periodic inspections of the units; residency and occupancy commencement and termination check lists; inventory control; common area maintenance; equipment maintenance; exterior maintenance on a seasonal basis; and painting, decorating, and replacement timetables as necessary. 7.4 INSURANCE The Owner agrees to hold the Agent harmless from all damage suits in connection with the management of the Premises and from liability from injury suffered by any employee or other person whomsoever, and to carry the necessary insurance therefore as provided in the next paragraph in this Section 7.4. The Agent shail not be liable for any error of judgment or for any mistake of fact or law, or for anything which it may do or refrain from doing hereinafter, except in cases of wiilful misconduct and gross negligence. The Owner, at the Owner's expense shail obtain and keep in force adequate insurance against physical damage (e.g., fire with extended coverage endorsement, boiler and machinery, etc.) and against liability for loss, damage, or injury (e.g., public liability insurance, burglary and theft insurance, etc.) to property or persons which might arise out of the occupancy, management, operation, or maintenance of the Premises. The amounts and types of insurance shail be acceptable to both the Owner and the Agent, and any deductible required under such insurance policies shail be the Owner's expense. The Agent shail be named as an additional insured on ail liability insurance maintained with respect to the Premises. The Agent shall promptly investigate and make a fuil written report to the Owner of ail accidents or claims for damage relating to the ownership, operation, and maintenance of the Premises, the estimated cost of repair, and shall cooperate and make any and ail reports required by an insurance company in connection therewith. 7.5 SERVICE REQUESTS OF RESIDENTS The Agent shail maintain business-like relations with Residents whose service requests shall be received, considered, and recorded on a systematic, written basis in order to show the action 6 taken with respect to each. Complaints of a serious nature and all written complaints. after thorough Investigation, shall be reported to the Owner with appropriate recommendations. 7.6 INSPECTION OF UNITS As part of a continuing program to secure full performance by the Residents of all obligations and maintenance for which they are responsible. the Agent shall make an annual inspection of all dwelling and non-dwelling units and report its tindings in writing to the Owner. 7 7.7 COMPLIANCE OF RESIDENTS The Agent is an aftiliate ot CommonBond Communities and Common Bond Services Corporation. The Agent and its attiliates strive at all times to deliver to the Residents high quality human services and education and training programs and property management services. The Agent at all times during the term of fhis Agreement will operafe and maintain the Premises in accordance wifh the high-quality sfandards of the Agenf and ifs aftiliates. The Agent shall secure full compliance by the Residents with the ferms and conditions of their Leases. Voluntary compliance shall be emphasized, and the Agent shall counsel Residents and make referrals to social service agencies in cases of financial hardship or under other circumstances deemed appropriate by the Agent, so that involuntary termination of tenancies may be avoided to the maximum extent consistent with sound management of the Premises. The Agent will not, however, tolerate willful evasion of payment of rent or other terms of the Leases The Agent may lawfully terminate any tenancy when, in the Agent's judgment, sufficient cause occurs under the terms of a Resident's Lease. Eviction for reasons other than nonpayment of rent will be on file with the Agent, The Agent is authorized to consult with legal counsel designated by the Owner to bring actions for eviction and to execute notices to vacate and to commence appropriate judicial proceedings; provided, however, that the Agent shall keep the Owner informed of such actions and shall follow such instructions as the Owner has prescribed. Subject to the Owner's approval, costs incurred in connection with such actions shall be paid from the Operating Account and shall be treated as an expense of the Premises. 7.8 SELECTION OF TENANTS AND CONTINUED OCCUPANCY The Agent shall accept as tenants on the Premises only those persons and families found to be eligible by the Agent in accordance with policies and provisions established by the Owner and approved by the U.S. Department of Housing and Urban Development and from time to time reviewed and altered by the Owner and the Agent and approved by the U.S. Department of Housing and urban Development. The Owner may review Agent's determinations of eligibility and if a difterence of opinion regarding eligibility exists, the Owner's determination shall prevail. Rent for each person or family shall be determined by the Agent in accordance with the Owner's approved rent schedule. No unit shall be rented for other than residential use by the lessee and the lessee's immediate family as specified in the lessee's application for housing. The terms of occupancy of the Premises by eligible tenants shall be governed by the Owner's statement of Policies Governing Admission and Continued Occupancy of Low Rent Public Housing (the "Statement of Policies") as the same may be modified from time to time by the Owner and approved try the U.S. Department of Housing and Urban Development, Specifically, the Owner's Occupancy Policies are contained in documents entitled, "Parkview Villa North Admissions and Continued Occupancy Policy", Revised April 2006 and "parkview Villa South Admissions and Continued Occupancy Policy", revised October 2005, as amended from time to time. Both aforementioned documents contain local preference language regarding tenant selection that is subject to change. 7.9 GOVERNMENTAL ORDERS The Agent shall take such action as may be necessary to comply promptly with any and all orders or requirements affecting the Premises placed thereon by any federal. state, county, or municipal authority having jurisdiction of the Premises, and orders of the Board of Fire 8 Underwriters or other similar bodies. The Agent shall not take any actions under this Section 7.8 if the Owner is contesting or has affirmed its intention to contest any such order or requirement. The Agent shall promptly. and in no event later than forty eight (48) hours from the time of their receipt. notify the Owner in writing of all such orders and notices of requirements. 7.10 FEDERAL PROCUREMENT REQUIREMENTS Subject to the limitations of Section 4.2. the Agent shall on behalf of the Owner. develop specifications for the purchase of materials and services for the Premises. The Agent is authorized to procure and enter into contracts for supplies. materials. equipment and services required in the maintenance. repair and operation of the Premises if the amount is less than and is made pursuant to the Owner's approved budget and plan of operation. All purchases and contracts shall be made by the Agent in accordance with the Owner's Procurement Policy, Minnesota Statutes, and the Annual Contribution Contract between the Owner and the United States of America. Full credit shall be given to the Owner for all discounts of any nature obtained by the Agent through the operation of the Premises. The Agent is authorized to purchase all materials. equipment, tools. appliances, supplies and services necessary to properly maintain and repair the Premises in accordance with the Operating Budget. the HUD's Procurement Policy. and limitations established by the agreement. 7.11 DATA PRACTICES COMPLIANCE To the extent required under the Minnesota Government Practices Act, Minnesota Statutes, Section 13.01 et seq. ("the Act"), the Agent agrees to maintain all government data, as that term is defined in the Act, consistent with the requirements of the Act. To the extent required under the Act, the Agent will not release or disclose the contents of data classified under the Act as not public to any person except at the written direction of the Owner. The Agent agrees to defend and indemnify the Owner from any claim, liability, damage or loss asserted against Owner as a result of the Agent's failure to comply with the requirements of this section unless such failure to comply results from Owner's written direction. 7.12 HUD MANDATED CONTRACT PROVISIONS The Agent shall abide by all provisions mandated by HUD in the General Conditions for Non- Construction Contract (Sections I and II) attached hereto as Exhibit A. To the extent any provision of this Agreement is inconsistent with the provisions contained in Exhibit A, the terms set out in Exhibit A shall govern SECTION 8 NON-DISCRIMINATION The Agent shall comply with all requirements of Equal Employment Opportunity Programs and Affirmative Action Programs as relates to the hiring of its employees and the contracting by the Agent of third parties to provide service under this Agreement. The Agent shall insure that each contract entered into by the Agent or the Owner in connection with the construction, completion, repair, maintenance or operation of the Premises is in compliance with the statutory and regulatory labor standards requirements set forth in the Annual Contributions Contract between the Owner and the United States of America and the regulations and discretions of the U.S. Department of Housing and Urban Development and the U.S. Department of Labor. In the performance of each of their obligations under this Agreement, the Agent and the Owner will comply with the provisions of any federal, state, or local law prohibiting discrimination in housing, including but not limited to Title VI of Civil Rights Act of 1964 (Public Law 88-352, 78 Statue. 241), all requirements imposed by or pursuant to the Regulations of HUD 924, CFR, Subtitle 9 A, Part 1) issued pursuant to that Title; regulations issued pursuant to Executive Order 11063, and Title VIII of fhe 1968 Civil Rights Act. This Agreement may be terminated or suspended, in whole or in part, by the Owner upon the basis of a finding by the Owner that the Agent has not complied with such non-discrimination provisions. SECTION 9 COMPENSATION OF THE AGENT 9.1 MANAGEMENT FEE The Agent shall be compensated for its services under this Agreement by a monthly fee payable on the first day of each month. Payment shall be from the Operating Account and treated as an expense of the Premises. The compensation which the Agent shall be entitled to receive for all services performed under this Agreement shall be a flat fee of $18,650.00 per month; which consists of $6,570.00 per month as a management fee and $12,080.00 per month for payroll related expenses. The Agent proposed the foregoing breakdown for compensation to the Owner. The Agent reserves the right to adjust staffing needs on the Premises but yet remain within the foregoing payroll limits. The Agreement does not include an escalation clause for the management fee or payroll expenses. 9.2 FOR MODERNIZATION (REHABILITATION/CONSTRUCTION APPROVED BY THE OWNER) In the event that Owner requests Agent to perform rehabilitation/construction on the Premises, Owner and Agent shall negotiate and execute a contract related to such rehabilitation/construction work. 9.3 FOR FIRE RESTORATION In the event that Owner requests Agent to perform restoration on the Premises, Owner and Agent shall negotiate and execute a contract related to such restoration. SECTION 10 TERMINATION OF THE AGREEMENT 10.1 TERMINATION FOR CAUSE Subject to proper notice and the opportunity to cure, this Agreement may be terminated for cause by either party upon a breach of the other party's obligations under the Agreement. For purposes of this Agreement, a breach may include the failure to perform specified services under the Agreement or furnish the specified facilities, materials, labor or payments required under the Agreement. In the event of a breach of the Agreement, the non-defaulting party shall give the defaulting party written notice of the breach and allow fourteen (14) days for the defaulting party to cure the breach. If the deficiencies are not corrected within the 14 days, the non-defaulting party shall have the right to cancel and terminate this Agreement by giving the defaulting party 30-days written notice of the termination. If the breach of the Agreement is by its nature incurable, the non-defaulting party may cancel or terminate the Agreement by simply giving the defaulting party 30-days written notice of the intent to terminate the Agreement. 10.2 IMMEDIATE TERMINATION This Agreement shall be terminated upon the sale of the Premises or in the case of building demolition caused by natural or man-made causes. In the event that a petition in bankruptcy is filed by or against either the Owner or the Agent, or in the event that either shall make an assignment for the benefit of creditors to take advantage of any insolvency act. either party 10 hereto may immediately terminate this Agreement without notice, but prompt advice ot such action shall be given to the other party. 10,3 ACCOUNTING UPON TERMINATION Within ten (10) days otter the termination ot this Agreement, the Owner and the Agent shall account to each other with respect to all matters outstanding as ot the date of termination. The Owner shall furnish the Agent security against any outstanding obligations or liabilities which the Agent may have incurred hereunder. The Agent shall turn over to the Owner all records, documents, or other instruments, waiting lists, and any and all other files and papers in its possession pertaining to the Agent's performance under this Agreement. SECTION 11 ASSIGNMENTS This Agreement shall be binding upon and inure to the benefit of and constitute a binding obligation upon the Owner and the Agent, and their respective personal representatives, heirs, administrators, executors, successors and assigns; provided that neither party may assign this Agreement or any of its duties hereunder without the prior written consent of the other parly which consent shall not be unreasonably conditioned, delayed or withheld. SECTION 12 AMENDMENTS This Agreement constitutes the entire Agreement between the Owner and the Agent, and no amendment or modification thereof shall be valid and enforceable except by supplemental agreement in writing, and approved in the same manner as this Agreement. Review and approval of the Management Agreement is required by the U.S. Department of Housing and Urban Development. Agent and Owner agree to either execute appropriate amendments necessary to obtain HUD approval of the Management Agreement or otherwise terminate the Agreement pursuant to Paragraph 10.1 herein. SECTION 13 SIGNATURES IN WITNESS WHEREOF, the parties hereto have affixed their respective signatures this ,20 day of Columbia Heiahts Housina & Redevelopment Authoritv (HRAI Owners Name Common Bond Housina (Agent Name) By: By: Walter R. Fehst Title: Executive Director Title: Vice President of Propertv Manaaement By: Tammera Diehm Title: Chair Date: Date: Witness: Witness: 11 EXHIBIT A GENERAL CONDITIONS FOR NON-CONSTRUCTION CONTRACTS (Sections I and II of HUD-5370-C) A-I Document 1 Document 2 Rendering set PowerDocs://DOCSOPEN/327979/3 PowerDocs://DOCSOPEN/327979/4 K&G Standard Insertion Deletion MO'led from Moved to Style change Format change Move44:>letion Inserted cell Deleted cell Moved cell Split/Mer ed cell Padding cell Insertions Deletions Moved from Moved to St Ie chan e Format changed Total chan es Count 13 9 o o o o 22