HomeMy WebLinkAboutNovember 9, 2009, SpecialHOt1SING & REDEVELOPMENT AUTHORITY AGENDA
SPECIAL MEETING
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PARKVIEW VILLA, COMMUNITY ROOM B, 965 40 AVE., COLUMBIA HEIGHTS, MN
1. Call to Order
2. Roll Call Tammera Diehm, Chair Bruce Nawrocki
Bobby Williams, Vice Chair Bruce Keizenberg
Dennis Ecklund Jr. Secretary/Treasurer Gary Peterson
3. Pledge of Allegiance
BUSINESS ITEMS
4. Consideratian of an extension of CommonBond's Management Contract - Resolution
2009-11
MOTION: Move to waive the reading of Resolution 2009-11, there being ample copies available
to the public.
MOTION: Move to adopt Resolution 2009-11, extending CornmonBand Housing's Management
Contract for two one-year extensions for the management of Parkview Vifla North and South,
ending on January 31, 2012
Next Regular HRA meeting date is January 26, 2010 - fentatively
COLUMBIA HEIGHTS HOUS(NG AND REDEVE~OPMENT AUTHORITY (HF~A}
Special Meeting of: Navember 9, 2009
AGENDA SECTION: Business ftems ORIGINATING EXECUTIVE
NO: 4 DEPARTMENT: HRA DIRECTOR
AF'PROVAL
ITEM: Extensian af CommonBond Contract BY: Scott Clark gY=
DATE: November 3, 2009
~ACKGRt~U1VD:
On January 23, 2008 the NRA a~proved a five-year management contract with
CommonBond running fram February 1, 2008 and ending on January 31, 2013. This
appraval uvas granted based an review and appraval by NUD. In turn, HUD disallowed the
five-year term based on an Annuaf Contributions Contract (AGC), signed in 1969, which anly
allowed for t~nra-year contracts. Since the intent was ta have CommonBond receive a five-
year confiract new wording was added (Section 1.3) ta have a two-year contract with three
one- year extensions "at the sale discretion af the Owner." The new contract was appraved
by fihe HRA on April 22, 200$ (HRA Iefter attached} with the afarementioned language
previousfy approved by HUD. In discussion with the HRA Attorney, he is af the opinian that
the HRA has the option af appraving two "r~ne-year e~tensions" and is within the spirit and
intent of the P,CC.
E~ECp~l~EIV~~TI f~: Staff recommends extension af the ca-~tract based on 1} Spirit and
intent ~f the original contract and 2} Excellent performance by fihe subject managemenf
agency
~ECOtVtIVIE~[D~~ ~VIC)Tla :
MOTION: Move to waive the reading of Reso{ution-2009-11, there being ample copies far
the public
MOT(O~l: ~ove to Adopt Resalutiar- 2009-11, ~xfiending CammanBond Housing's
~lanagement Cantracf For Two ~ne-Year Ex~ensians far Management af Parkview Vifla
~lorth and South, Ending on January 31, 2012
HRA RESOLUTION 2009-11
EXTENSION OF COMMONBOND HOUSING MANAGEMENT CONTRACT
UNTIL JANUARY 31, 2012 FOR MANAGEMENT OF PARKVIEW VILLA
NORTH AND SOUTH
WHEREAS, on January 23, 2008 the City of Calurnbia Heights's Housing and
Redevelopment Authority (HRA) approved a management agreement with
CoirunonBond Housing (CoinmonBond) which included a provision for a five-year
contract, and
WHEREAS, the Departinez~t of Hausing and Urban Development (HLTD) denied the
ability of the HRA to enter into a five-year cantract based on a previously approved 1969
Annual Contributions Contract which limits all contracts to two years, and
WHEREAS, in order to meet the spirit and intent of the originally approved five year
cantract bath HUD and the HRA agreed to a management contract term of an initial two
year period with three one-year extensians, and
WHEREAS, this language is memorialized in Section 13 of the final and approved
contract approved by the HRA on Apri122, 2008, and
WHEREAS, the HRA is satisfied by the performance and competence of CorrunonBond
aild desire to extend the subject term,
NOW THEREFOR BE IT RESOLVED,
1) The HRA approves two one-year manageinent contract extension periods, per
Section 1.3 of the April 22, 2008 Ma~~ageinetzt Agreei~~ent. Per tlzis
Agreement, the management term will end on January 31, 2012 with a one-
year extension remaining. Staff is instructed to advise CommonBond in
writing, by November 27, 2009, of the HRA's intent to exercise this effective
two year contract option.
Passed this 9th day of November 2009.
MOTION BY:
SECONDED BY;
Attest by:
Chair- Tanunera Diehin
--
Shelley Hanson, Recording Secretary
COLUMBIA HEIGHTS HQUSING AND REDEVELOPME~IT AUTHORITY (HRA)
Meeting of Aprii 22, 2008
AGENDA SECTIO~I: Business Items
NO: 9
ORIGINATING
DEPARTMENT: HRA
EXECUTIVE
DIRECTOR
APPROVAL
ITEM: Management Agreement
~ACKGFtOUND:
BY: Scott Clark
DATE: April 17, 20Q8
BY:
Over the past several manths the City Attorney has worked to modify the Management
Agreement, dated February 1, 2008, as initial{y approved by the HRA on January 23, 2008.
The major change is that HUD wil{ not allow a five-year contract since the HRA has an ofd
(1969) Annual Contributions Contract (ACC}, which 6imits contracts to twa years. Based on
this, CammanBond has agreed to new pravisions, which is a two-year contract with three
one-year extensions. Since the spirit and intent of the ariginal agreement was for five years,
staff recommends that the City work with HUD to modify the 1969 /~CC to allow the same.
Staff is uncertain if this endeavar can be successful but it appears that the effort is merited.
Attached is a redlined copy that illustrates all changes.
ECO[~INiE~DATlO : Staff recommends the baard apprave the amended Management
Agreement with Cammat~Bond.
E~~CO E DED Ol't~ :
Move to Approve the Management Agreement, dated February 1, 2008, between fihe
Calumbia Heights Housing & Redevefopment Autharity (NRA} a«d ComrnonBond Hausing as
amended; and furthermare, to authorize the Chair and Executive Director to enter into an
agreement for the same.
MANAGEMENT AC REEMENT
FC,1 R
cotumb~a He~gt,t$ HRA
590 40fh Avenue N.E.
Calumbia Heights, M~155421
Parkview Vil[a Narth and Soufh ,
Beginning: February 1, 2008
Ending: January 31, 201n
Owner• Golumbia Heiahts HRA
AGENT~ CommonBond Housinc~
Rev. ~2/08
~IST OF PROVISIGNS:
1
Section 1 APPOINTME~IT OF THE AGENT ~
~_ ~ qppaintment and Acceptance ~
}.2 Definition and Description of the Premises ~
~ ,3
1.4 Term
Meetings With the Owner and the Agent 1
~
Sectian 2 EMPLOYEES C~F THE AGENT ~
2,1 The Agent's Authority to Nire 2
2.2 Compensation 2
Section 3 BANK ACCOUNTS
Receipts and Exp~i~se Account
ratin
O 2
3
3,1
3.2 g
pe
Security Deposit Accounfs 3
3.3 Fdelity Bond
DISBURSEMENTS FROM OPERaTIC~G ACCOUNT 3
Section 4 RECE{PT5 & 3
4.1 Collections and Delinquencies 3
4,2 Payments and E>cpenses q
Section 5 Fdh~ANCIAI. AND OTHER REPORTS. 4
5,~ Recorc{s and Reparts q
5.2 Operating Budget 4
5.3 Other Accaunts 5
5.4 P.eporfs 5
Sectian 6 ADVERTIS(NG 5
Section 7 SERVICES OF THE AGENT 5
7.1 Struciure and ~Ic~rr~n+~es 5
7_2 Maintenance and Repairs 6
7.3 Preventive Maintenance 6
7,4
7.~ fnsurance
Service Req~;°sts ef Residents b
~,
7.~ Inspecfion of Units 7
7
7 Compliance of Residents ~
,
7.g Selecfiion of Tenants and Continued OccupancY 7
7
9 Government Orders g
,
7.10 Federal procurement Requirements 8
7.1 ~ Data Practices Campliance g
7,}2 NUD Mandated Contract Provisions 8
Section 8 NON-DISCRIMINATION q
Section 9 COMPFNSATIO~I OF TNE AGENT. 9
9.~ Ma~~agement Fee
For Modernization (Rehab & Consiruction Aproved by the OwnerJ q
9
9.2
3
9 For Fire Resfioration 9
.
Sectian 10 TERMINATION OF TNE AGREEMENT 9
~ p, ~ Termination fior Cause ~ p
10.2 Immediate Termination ~p
10.3 Accounting Upon Ten~ninatian ~p
Section 11 ASSIGNMENTS 10
Section l2 AMENDMEI~lTS 10
Section 13 SiGN._,_ATURES
ns far Non-Consfiruction Cantracfs
diti 12
F~chibit A- G o
eneral Con
This Agreement is made this beiween The Columbia Heights Housing and
Redevelopment Authority (the "Owner") and CommondBond Housing (the "Agent").
SECTION 1 APPOWTMENT OF TNE AGENT
1 J APPOINTMENT AND ACCEPTANCE
The Owner hereby appoinfis the Agent as sole and exclusive Agent of the Owner to rnanage the
properfy clescribed 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 organizafiion for the management of the Premises. The Owner agrees to
pay far all expenses in connection with such services as authorized by this Agreement. The
Owner's Board acknowledges the hiring of 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" sha(l mean the real property and the improvements, buildings, appurfenances and equipment
thereon, of the Owner know as Parkview Vlias Norfh and South, located at 965 40tfi Avenue N.E., in fhe
City of Columbia Neights, State of Minnesota, and consisting of 146 dwel6ng units, underground garage
spaces to be rented and no commercial or ofiher norrdwelling spaces.
"Non-Housing Income" sh~li mean all amounts actually collected by the Agent, including all
other income and charges from the normal operation of the Premises, including but not (imited
to, parking, (aundry incorne, forfeited securiiy deposits, pet deposits, other fees and deposits,
income from commercial or other i~on-dwelling space and other miscellaneous income.
"Lease" shall mean the form of agreement between the Owner and a Resident under the tErms
of which said Resident is entitied to enjoy possession of a dwelling unit ar the form of agreement
beiween the Owner and an Resident under the terms of which said Resident is entitled to enjoy
possession of comrnercial or other non-dwelling space.
"Rent" shall mean that monthly amount which a Residenfi is obiigated to pay the Owner pursuant
to the terms of a Lease.
"Resident" sha(i mean a person occupying a dwelling unit in the Premises pursuant to a Lease.
1.3 TERM
The term of this Agreement shall begin from the 1 st day of February 2008, for a iwo-year term
ending January 31, 2010, uniess terminated sooner pursuant to Secfion 10 herein. The Agreement may
be extended for three additional one-year terms at the sole discrefion of the Owner. (n order to exercise ifs
option to extend fihe Agreement for an additional year, Owner must advise the Agent in writing of its
inteniion fo exercise fihe option at least s'octy (60) days prior to the end of fhe existing term of the Agreement.
1.4 MEETINGS WfTH THE OWNER AND THE AGENT
The Agent agrees to cause an officer of the Agent to confer fully and freely with the Owner not
withstanding the authoriiy given to the Agent in this Agreement.
SECTION 2 EMPLOYEES OF THE AGENT
2.1 THE AGENT'S AUTH~RITY TO HIRE
On ~he basis of wage rates previously approved by the Owner, the Agent shall investigate, hire,
pay, supervise, discharge and pay ali employees, contractars, or ather personnel necessary to
be employed on site in the management, maintenance, and operation of the Premises. A{i
employees shall be employees of the Agent. The Agent will canduct apprapriate background
checks in campliance wifil~ both State and Federal law far all employees working an the
Premises.
The Agent shall hire and have physically present at the Premises, al! manageriai and non-
managerial personnel necessary for the full and efficient perfarmance of its duties under this
Agreement, including ihe physical presence of respansib6e personnel at such times as may
reasonably be requested by the Own~r.
2.2 COMPENSATION
A(1 an-site pe~-sannel will be employees af the Agent and will be hired, supervised, and
discharged by the Agent. Subject to Section 9.1 hereof, ff~re Agent will be reimbursed for
compensation (including benefits} payable by fhe Agent ta on-sifie personnel and all local, state
and federa! taxes and assessments (including but not limited to Social Security taxes,
unemployment insurance and worker's compensc~tion insurance) incident to the employement
cf such personnel. Such reimbursements shali be paid aut of the Operating Accounf, as
pravided in Seciions 3.1 and 4.2 hereof, and wiil be treated as operating expenses af the
Premises. Owner shafl have no abligatian with respect to employee withhoiding and taxes to
assure that said amounts are timely paid to the praper tf~ird pc~rties.
To the exter?t re~uire~ by rpplicct~le federa[ law, compensation to be paid to Agent's on-site
employees wili I~e as prescribed by Wage Determinations of the U.S. Department of Housing and
Urban Development to be obfained by Agent accarding to if~e rules and regulatior~s of ~he U.S.
Departmenfi of Housing and Urban Development. A!I employees of Agent working on-site shali
be paid a wage camparabie ~o other employees of the Agent based an job duties, skilis,
responsibilities and leveis af supervisian received or provided.
Compensation (including berefifs} payable to any off-sifie bookkeepinc~, clerical, or otf~er
managerial personnel wha are em~loyees of the Agent, plus all locai, state and federal taxes
and assessei~nents incident to the employment of such personnel will be borne sole(y by the
Agent and will not be paid out of Owner's accounts or treated as operating exper~ses far the
Premises.
SECTION 3 BAI~K ACCOUNTS
The various bank accounts estabfished under this Agreeinent shall afi a(I times be established in
ihe Owner's name but under the Agent's con~roL The Agent's designees and 'rhe Owner's
F~ecufive Director shall be the only ~arties authorized to cfraw upon such accounts. No
amounts deposited in any account established under this Agreemenfi shal) ii~ any event be
commingled with any other funds af the Agent.
3.1 OPERATING RECEIPTS AND EXPENSE ACCOUNT
The Agent shall establish and maintain in a bank, reasonably acceptabfe to Owner, whose
deposits are insured by the Federal Deposit insurance Corparation (FDfC} in accordance with
the provisions of the Regulatory Agreement, in a separate bank accaunt as the Agent of the
Owner for the deposit of the maney of the Owner, with authoriiy to draw thereon for any
paymenfis to be made by the Agent to discharge any liabilities ar obligations of the Owner
incurred in accardance with this Agreement. The Agent shall not be held liable in the event of
the bankruptcy or the failure of a depositary. 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 Accouni"). The Agent shall estab(ish such other special bank accounts as
may be required by the Owner. Signatories entitled to make withdrawals from any and all of
these accounts shafl be persons covered by the fideliiy bond pursuant to Section 3.3 herein as
well as the Owner's Executive Director.
3.2 SECURfTY DEPOSiT ACCOUNTS
The Agent shall colfect, deposit, and disburse Resident's security deposits in accordance with
the terms of the respective Leases as weif as applicable State faw. Such securify deposifis shali
be deposited by the Agent in an interest bearing account, separate from all other accounts
and funds, wifih bank or other financial institution whose deposits are insured by the FDIC. The
Agent shall be respansible for any loss incurred by fihe Premises for its failure fo comply with
refunding af securiiy depasits with accrued interest ta Residents as required in the Minnesota
Statutes, Sectian 504B.178, as amended. This accoun# shall be carried in the Owner's name and
shall be designated of record "(Name of Premises) Securiiy Deposit Account". The Agent shall
cause the amount of the Securiiy Deposit Account to equcsl or exceed at all times the
qggregate of all outstanding obligations by the Owner with respect to security deposits.
3.3 FIDELITY 6C7ND
The Agent shal( furnish, at its own expense, a fidelity bond for $1 000 000.00 to protect the
Owner against misappropriation of funds of the Prernises by the Agent and ifis emplayees.
SECTION 4 RECEIPTS AND DISBURSEMENTS FROM OPERATING ACCOUNT
4.1 COLi ECTIONS AND DELINQUENCIES
The Agent shall collect and deposifi all renfis and other charges due from Residents and all rents
or other charges due the Owner from users af garage spaces. The Agent agrees, and the
Owner hereby authorizes the Ager~t, to request, demand, coiiect, receive, and give receipts for
any and aii charges ar rents which may at any time be or become payable to fihe Owner. Rents
and other charges shaid no# be accepted in cash by the Agent. The Agent agrees to take such
action, inciuding 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
Fram the funds colfected and deposited in the Operating Account, the Agent shall cause to be
disbursed regularly and punctually in the order and priority as set forfh below:
A. The management fee owing to the Agent pursuant to Section 9.1 herein which inciudes
payroll expenses for the services of Agent's on-site employees;
Afl of the reaf estate taxes, payments in lieu of taxes and insurance premium escrow
payments required of the Owner, which payments shali be deemed to be parf of the
"operating expenses" of the Premises; and
C. All remaining operating expenses of the Premises (which specifically exclude the Owner's
morfgage Inan principal and interest paymenfs if any).
The Agent shall nego#iate (secure praposals in accordance with federal Procurement Policy and
Minnesota Law) and execute on behalf of the Owner, any contracts up to $1,500.00 for services,
material or supplies, which are included in the appraved Operating Budget for either Parkview
Villa Norfh or South. With respect to purchases or contracts for services, material or supplies
exceeding $1,500.00 or for purchases or contracts not included in fhe Operating Budget, Agent
shall negoiic~te (secure proposals in accardance with Owner Procurement Palicy and Minnesota
Law) and submit ta the Owner for wrifiten approval and execution of the cantract or purchase
order. For confiracts or purchases exceeding $1,500.00, but less than $15,000.00, Owner
approval and execution of the contracfi or purchase order may be provided by the Owner's
E>cecufive Directar. Any contrac~s ar purchase orders exceeding $15,oaa.oa must be taken
before the Owner's Board for approval and exec~tion of the contract or purchase order. The
Agent shall r~ot incur liahilities an bel~ralf of fihe Owner (direct or contingent), which require
payment more than ane year from the creation ther~of, unless specifically authorized by the
Owner.
Emergency repairs involving manifest danger ta life ar~d praperty, or immediate(y necessary for
fhe preservation and safeiy af the Premises, or far the safeiy of the Residents, or required to
avoid the suspension af any necessary services ta the Premises, may be made by the Agenf
without regard to the cost limitation impased by this Sec;ion with the understanding that the
Agent, ifi c~t al( possibEe, will confer irnrnediately with the Owner regarding eve~y such
expenditure. Ir~ the event that Agent cannot confer ~nrith Owner priar to making an emergency
exper~diiure, Agent shall provide Owner with imrnediate notification of the emergency expense
as reasonably passible.
Agent shaff not execute any contract or propose any cantract for appraval by the c~wner that
involves a party named on ihe E>cduded Partie~ Lisfi System mc~intained by the General Services
Adminisfiration. All purchases a~~d contracts sha11 be in the name of the Calumbia Heights
Housing and Redevelopment Aufharity and shall include any and a~i contract ~rovisions required
by State or Federal law.
SECTIdN 5 FINANCIAL AND OTHER REPORTS
5.1 RECORDS A~iD REPORTS
The Agent shall establish and mainfain a comprehensive system af records, baoks, and
accaunts in a manner satisfacfary to the Owner. A(f records, booi:s, and accounts sl~all be
subject to the examination at reasonable hours by any autl~orized representaiive ~f the Owner.
With respect to each fiscal year ending during fhe ten~ of this Agreement, ihe City of Cafumbia
Neighfs will contract on behalf of the Owner ta camplete an independent annual audit.
The Agent shalf prepare Monthly Operating Reports which com~are actual and budgeted
income and expenses far the month and for the "year-to-date". The Agent shall prepare a
Monthly Aged Schedule of Accounts Receivable and Accounts Payabie. The Agent sha(I
prepare a Monthly Ana(ysis af Security Depasits and Monthly Cash Reconciliation. The Agent
shaEf furnish such information as may be requested by the Owner fram time to fime with respect
to the financial, physical, or operational condition of the Premises.
5.2 OPERAIII~G ~UDGEf
At least ninety (9a} days ~rrior io the beginning of each fiscal year for the Premises, the Agent
sha(I prepare and submit to the Owner an Operating Budget, setting forth an itemized statement
of the anticipated receipfs and disbursements for the Premises.
5.3 OTNER ACCOUI~ITS
Everything done by the Agent under the provisions of this Agreement sf~all be done as the Ag°nt
of the Owner, and al! obligations or expenses ir:curred thereunder shail be for the account of
and on behalf of fhe C7wner. Any payments fo be made by the Agent hereunder shaii be made
out of sui~ns as are available in the C7perating Account. The Agent shall r;ot be ol~figed to make
4
any advance to, or for the account of, the Owner or to pay any sum, except out of funds held
or provided as aforesa~d-.thout aslsurancet hat the n'ecessary funds for tb~e di~charlge thereof wl
account of the Owner wi
be provided to the Agent.
S,4 REPORTS
As directed by the Owner, the Agent shail prepare and submit to the U.S. Deparfment of
Housing and Urban Development all reporfs, which the United States Govemment may require
of the ~wner. The Agent shall be responsible for maintaining the books and accounts of fihe
Premises in accordance with accounting requirements of the U.S. Deparfment of Housing and
Urban Development. in parficular, the Agent shall maintain books and accounts which
specifically allocate all income received and expenses or fees incurred to each of the two
buildings located on the Premises (Parkview Villa Norfh and Parkview Villa South) pursuant to the
number of units in each of the buiidings. The Agent shall be afso responsible for the preparation,
execu'tion and submis5ion of al! financial reporfs required by the State of Minnesota and the U.S.
Deparfment of Housing and Urban Development. These reporfs shall be provided within the
time period prescribed by the United States Gavernment. The Owner shall be provided with a
copy of each reparf submitted to the U.S. Department af Housing and Urban Development. If
the Agent is unabie to pravide a report within the prescribed time period, the Agent shall advise
the Owner of such fact no later than five days after the date that the Agent becomes aware
that it will not be able to submit the report within the prescribed time period. The Agent shall
provide information regarding the status of each overdue reporf at each regular meeting of the
Owner.
7he Owner, the U.S. Department of Housing and Urban Development and the (nspector General
of the United States or their duly authorized representatives shaii have fu(I and free access to the
Premises and to ~!I books, document5, papers; and records of the Agent that are perfinent to its
aperation, inciuding i-he right to audit and to make excerpts and transcripts from such books
and records. The Agent shall maintain all files and records re(evant to fhis agreement in
accordance with the approved record retentian schedufed provided by the NUD oifiice. Agent
shali be held accountable to the Owner for esny penalties i~~nposed by the Department of
Hausing and Urban Development against the Owner for deficient filings as required by this
Agreement.
SECTION 6 ADVERTISING
The Agent is aufihorized 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 adverfising shall be paid
from the Operating Accounea} d~he manarger and not the Owner of the Pre ~nses All adverfising
shall make clear that the Ag
SECTION 7 SERVICES OF THE AGENT
7.1 STRUCTURE AND WARRANTIES
The Agent shall obtain from the Owner a complefe set of pians and specifications for the
Premises and copies of ail guaranties and warranties perfinent fio construction, f~competen~t
equipment for the Prernises. With the aid of this information and inspection by
personnel, the Agent shall thoroughly familiarize itself wifih the character, locations, construction,
layout, plan, and operation of the Premises and particularly of the electrical, heating, p-umbing,
air conditioning, and ventilating systems, and all other mechanical equipment.
7.2 MAINTENANCE AND REPAIRS
The Agent is authorized and required to make ar cause to be made, thraugh services or
otherwise, a8 ordinary repairs and replacements reasonably necessary to preserve the Premises
in its present conciitia~~ and for the aperating efficiency of the Premises, and all aiterations
requirec! to comply with lease requirements, government r~guiatians, and insurance
requirements, subject to the limitations in paragraph 4.2.
Subject to the Iimitations of S~ctian 4.2, Agent shall make contracts for garbage and trash
removal, fuel, ail, extermination, snow removal, elevator maintenance, and other ordinary and
necessary services. The Agent is also autharized to decarate the Fremises and to purchase ar
rent, on the Owner's behalf, all equipment, taols, appliances, materials, supplies, and other items
necessary far the management, maintenance, or operation of the Premises. Such maintenance
and decorating expenses shall be paid from the Operating Account and shall be treated as an
expense of the Premises.
When taking bids or issuing purchase orders, the Agent shall act at ail iimes in the best interesf af
the Ov~mer and shall be under a dufiy to secure for and credif to ~he Owner all discounts,
comn~issions, or rebates obtainable as a resuft of such purchases.
7.3 PREVENTlVE MAINTENANCE
The Agent shail develop and implement a preventive maintenance schedule inc{uding, buf not
limited to, periodic inspections of the units; residency and occupancy commencement and
termination cl~eck lists; inventary control; coiminon area mainienance; equipment
maintenance; exterior ~~naintenance on a seasonal basis; and painting, decorating, and
replacement timetables as necessaiy.
7.4 !~!SURAI~lCE
The Ovdner agrees to hold the Agent harmless from afl damage suifis in connection wifih the
managen~ent of ihe Prei~ises and from liability irom injury suffered by any employee ar ather
person whommsaever, and to carry the necessary insurance therefore as provided in the next
paragraph in this Section 7.4. The Agent shall not be liable for any error of judgment or for any
mistake of fact or law, or for anything which it may da or refrain from doing hereinafter, except
in cases of willful misconduct and grass negligence.
The Owner, at the Owner's expense shall 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., pul~lic liabiliiy insurance, burglary and theft
insurance, etc.} to property or persons whicn might arise out of the occupancy, management,
operation, or maintenance of the Pr~mises. The amounts and types af insurance shall be
acceptabfe ta both ihe Owner and the Agent, and any deductib(e required under such
insurance policies shall be the Owner's expense. The Agent shall be named as an additional
insured on all liabiliiy insurance maintained wifih respect to the Premises.
The Agent shall promptfy investigate and make a iull written reporf to the Owner of all accidents
or c(aims for damage relating to the ownership, operation, and maintenance of il~e Premises,
the esiimated cosi of repair, and shall cooperate and make any and all reports required by an
insurance company in connection therewith.
7.5 SE(2VECE REQUESTS OF RESIDEI~TS
The Agent shail maintain business-like relations with Residents whose service requesis shall be
received, considered, and recorded on a systematic, written basis in order to shaw the action
taken with respect to each. Complaints of a serious nature and all written complaints, after
thoraugh investigatioi~, shall be reported to the Owner with appropriate recommendations.
706 INSPECTION OF UNITS
As parf of a continuing program to secure full performance by the Residents of al( obiigafiions
and maintenance for which fhey are responsible, the Agent shail make an annual inspection of
all dwel(ing and r~on-dwelling units and reporf its findings in writing to the Owner.
7.7 COMPLIANCE OF RES~DENTS
The Agent is an affiliate of CamrnonBond Cammunities and CammanBond Services
Corporation. The Agent and i;s affiliafies strive at all times to deliver to the Residents high quality
human services and education and training programs and properfy management services.
The Agent at all times during fihe term of this Agreement wiil operate and maintain the Premises
in accordance with tl~e higl~-quali{y standards of the Agent and its affiliates. The Agent shall
secure fulf cornpliance by tf~e Residents with the terms and canditions of their Leases.
Voluntary compliance shali 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 appro~riate by the Agent, 5o that inva(untaiy terrninafian of tenancies i~ay be
avaided ta the maximum extent consistent with sound management of the Premises. The Agent
vvill not, however, tolerafe 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
accues under the terms of a Resident's Lease. Evictian for reasans other fhan nanpayment of rent
wiil be on file wifih the Agent.
The Agent is auihorized to consult with legal counsel designated by the C~wner to bring actians
for evictian and ta execute notices ta vacate and ta cornmence appro~riate judicial
proceedings; provided, however, that the Agent shall keep tl~e Owner informed of such actions
and shall follow such instructians as the Owner has prescribed.
Subject to the Owner's approval, costs incurred m connection with such actions shall he paid
from the Operatir~g Account and shall be treated as an exr~ense of the Premises.
7.S SELECTI~N OF IENANTS AND COI~TfNUED OCCUPAI~CY
The A~ent shal! accept as tenants an the Premises only those persons and families found to be
efigibie by the Ageni ii~ acc~r~arce v,~ith ~olicies ~:rci provisians ~stak~lished by the OwnEr and
approved by ihe U.S. Department of Housing and Urban Develapment and from time to time
reviewed and a(tered by The Owner and the Agent and approved by the U.S. Department af
Housing and urban Develapment. The Owner may review Agent's deierminaiians of eligibility
and if a difference of opir~ion regarding efigibility exists, the Owner's determinatian shall prevail.
Rent for each person or family shall be determined by the Agent in accordance with the
Owner's approved rent schedule. Na unit shall be rented for other than residential use by the
lessee and ihe lessee's immediate farnily as specified in the lessee's application for housing.
The ten~ns of occupancy af ihe PreF~nises by eligible fiena~~fis shall be governed by the Owner's
statement of Policies Gaverning Admission and Continued Occ~parcy of Low Rent Public
Hausing ~the "Statement of Poficies") as fhe same may be n~adified fram iime io time by ihe
Owner and approved tiy the U.S. Department of Housing and Urban Development. Specifical(y,
the Owner's Qccupancy Poficies are contained in documenfs entitled, °Parkview Vi[la North
Admissians and Continued C~ccupancy Policy", Revised April 2G06 and "Parkview Villa South
Admissions and Continued Occupcsncy Policy", revised October 2005, as amended fi~am time to
time. Both aforementioned documents contain locai preference lar~guage regarding tenant
sel°ction that is subject to change.
7.9 GOVERNMENT,qL ORDERS
The Agent shall fake such actioi~ as may be necessary to comply pramptly wifh any and a(I
orders ar requiremenfis affecting the Premises ~laced thereon by any federal, state, county, ar
municipal authorify having }urisdicfiion of the Premises, and orders of the Board of Fire
Underwrifiers or ather similar bodies. The Agent shall not take any actians under this Section 7.8 if
the Owner is contesting or has a~rmed its intention to contest any such order or requirement.
The Agent shail 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 ;hall 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 suppiies, materiafs, equipment and services
required in the mainfienance, repair and operation of the Premises if fihe amount is less than and
is rnade pursuant to the Owner's approved budget and p(an of operation. All purchases and
contracts shail be made by the Agent in accordance with the ~wner'S Procurement Policy,
Minnesota Statutes, and fhe Annual Contribution Contracfi beiween 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 ail materials, equipment, tools, appliances, supp(ies and services necessary to properly
maintain and repair the Premises in accordance with the Operating Budget, the HUD's
Pracuremenf Policy, and limitafions 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 fihe 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 daim, liabilifiy, 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 CONT[2ACT PROVISIONS
The Agent shall abide by all provisions mandated by HUD in the General Condifiions for Non-
Construction Contract (Sections I and II} attached hereto as F~chibit 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 govem
SECTION 8 NON-DISCRIMINATION
The Agent shall comply with all requirements of Equal Employment Opporfuniiy Programs and
Affirmative Action Pragrams as relates to the hiring of its employees and the contracting by the
Agent of third parfies to provide service under this Agreement.
The Agent shall insure that each contract entered infio by the Agent ar the Owner in connection
wifh the consfiruction, completion, repair, maintenance or operation of the Premises is in
compliance with the sfia#utory and regulatory labor standards requirements set forth in the
Annual Contributions Contract befween the Owner and the United Stafies of America and the
regu(ations and discretions of the U.S. Department of Nousing and Urban Development and the
U.S. Deparfment of Labor.
In the performance of each of their obligations under this Agreement, the Agent and the Owner
will comply wifih the provisions of any federal, state, or lacal 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
A, Parf 1) issued pursuant to that Title; regulations issued pursuant to Executive Order 11063, and
Title Vfll of the 1968 Civil Rights Act.
This Agreernent may be fierminated ar suspended, in whole ar in part, by the dwner upon fhe
basis of a finding by the Owner that the Agent has not complied with such non-discrimination
provisions.
SECTION 9 COMPEhJSATION OF THE AGENT
9.1 MAI~AGEMENT FEE
The Agent shalf I~e co~~npensated for its services under ~his Agreement by a mont~ly fee payable
on the first day of each month. Payment sf~all be from the Operating Account and treated as
an expense of the Prei~ises.
The corripersation which fihe Agent shall be entitled to receive for all services performed under
lhis Agreement shall be a flat fee of $18,550.00 per month; which consists af $6,570.00 per month as a
management fee and $12,080.00 per month for payroll related expenses. The Agent proposed the
foregoing breakdawn far compensatiar~ ta the Owner. The Agerrt reserves the right fia adjust staffing
needs on the Premises but yet remain within the foregoing payroil limits. The Agreement does nat
ii~clude an escalation clause for fhe management fee or payrofl expenses.
9.2 FOR MQDERNIZATION (REHABlLITATION/C~~ISTRUCTION APPROVED BY TNE OWh~ER)
In the event that Owner requests Agent to ~erform rehabilitation/canstruction an the Premises,
Owner and Agent shall negotiate and execufie a contract related to such
rehabilitation/consfiructian wark.
9.3 FOR F1RE RESTORATIOi~i
In fhe event that C)wner requests Agent to perform restoration oi~ the Prer~nises, Owr~er and
Agent sl~a(I negoiiate and execute a caniract relcsted to such restoratian.
SECTION 10 TERMINATION OF THE AGREEMENT
10.1 TERMINATION FOR CAUSE
Subject to praper notice and the opporfunity to cure, this Agreement may be fierminaPed for
cause by eifher party upon a breach of the other par;y's obfigations under the Agreement. For
purposes of this Agreement, a breach may include fhe faifure to perform specified services
under fihe Agreement or furnish the specified facilities, maierials, labor ar payments required
under the Agreemenfi. In the event of a breach of the ~greement, the nan-defaulting parfy
shall give fihe defaulting parfy written notice of the breach and al(aw fourieen (14) days for the
defaulting party io cure ihe breach. If the deficiencies are nof corrected within the 14 days, the
non-defaulting ~arfy shall have the right to cancel and terminate this Agreemeni- by giving the
defaulfiing part}r 30-days written notice of the termination. If the breach of the Agreement is by
ifs nature incurable, the non-c{efaulting parfy may cancel or terrninate the Agreement by simply
giving the defaulting parfy 30-days written notice of fihe intent to terminate the Agreement.
10.2 IMMEDIATE TERMI~lATION
This Agreement shafl be terminated upon the sale of the Premises or in tf~e case af buifding
demolifiion caused by natural ar man-made causes. fn the event fhat a petition in bankruptcy is
fil~d by or against either tl~e Owner or the Agent, or in the event that either shall make an
assignment for the benefit of creditors to take advanfage of any insolvency act, either parfy
10
hereto may immediately terminate this Agreement without notice, but prompt advice of such
action shall be given to the other parfy.
10.3 ACCOUNTING UPON TERMINATION
Wifihin ten (10) days after the termination of this Agreement, the Uwner and the Agent shall
account ta each other with respect fo all matters outstanding as of 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 sha!! turn over to the Owner all records,
documents, or other instruments, waiting lists, and any and all other files ar~d papers in its
possession pertaining to the Agent's performance under fihis 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
Agreernent or any of its duties hereunder withoufi the prior written consent of the ather parfy
which consenfi shall not be unreasanably conditioned, delayed or withheld.
SECTION 12 AMENDMENTS
This Agreement constifiutes the entire Agreement beiween the Owner and the Agent, and no
amendment or modification thereof shall be valid and enforceable except by supplernental
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. Deparfment of
t lousing and Urban Development. Agent and ~wner agree to either execufe appropriate
amendments necessary to obtain NUD approval of the Management Agreement or otherwise
terminate the Agreement pursuant to Paragraph 10.1 herein.
SECTION 13 SIGNATURES
IN WITNESS WHEREOF, ihe parties hereto have affixed their respective signatures this o~ ~- day of
Z~'o~~ 2oC~k'_
Columbia Heiaht5 Housina & Redevelopment Aufihoritv fHRAI
Owners Narne CommonBond Housina
(Agent Name
G "~"!,1'~~/,~~,~ ~' By: t `
8y: ~ ~ ~
Ttle: Executive Director-Walfer R. Fehst
By: ~
Title~ Vice Presidenfi of Properfv Manaaement
Ttle: Chair -Tammera Diehm
Date. ~"~~
,
Witness: ~--7% ~--~`''C'~'-
Date: ~ ---
Witness:
11
EXH(~IT A
GEh1ERA! COND[Ttt~wS Ft7R NON-CC)~lSTRUCTIO~! COI~iRAC~'S
(Sectians t and II of HUD-5370-C}
A-1