Loading...
2013-08H HRA ResolutionMOUND HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 13 -08H RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A MANAGEMENT AGREEMENT WITH COMMON BOND COMMUNITIES FOR THE PERIOD JANUARY 1, 2014 THROUGH DECEMBER 31, 2014 WHEREAS, the Mound Housing and Redevelopment Authority of Mound, Minnesota (the "HRA ") owns and operates a 50 -unit low rent public housing project known as Indian Knoll Manor (the "Project") in the city of Mound; and WHEREAS, the HRA has requested the Common Bond Communities (the "Agent') to manage the Project pursuant to Minnesota Statutes, Section 471.59, which provides that local governmental units may by agreement jointly or cooperatively exercise any powers common to them; and WHEREAS, the HRA proposes to enter into a management agreement with the Agent pursuant to which the Agent will manage the Project; and WHEREAS, the Board of Commissioners has been fully informed as to the nature and content of the proposed management agreement. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Mound Housing and Redevelopment Authority, that the Chair and Executive Director of the HRA are authorized and directed to execute and deliver, on behalf of the HRA, a management agreement with the Agent as presented in Exhibit A and made a part herein. Adopted by the HRA this 8th day of October, 2013 A9 .,, .- Chair Mark Hanus Attest: Catherine Pausche, Clerk MANAGEMENT AGREEMENT BETWEEN MOUND HOUSING AND REDEVELOPMENT AUTHORITY AND COMMON BOND COMMUNITIES THIS AGREEMENT, made by and between Mound Housing and Redevelopment Authority ( "Owner ") with offices at Indian Knoll Manor, 2020 Commerce Boulevard, Mound, Minnesota 55364, and at City Hall, 2415 Wilshire Boulevard, Mound, Minnesota, 55364 and Common Bond Communities, a Minnesota non- profit corporation ( "Agent ") with offices at 328 Kellogg Boulevard West, St. Paul, Minnesota 55102. WHEREAS, the Housing and Redevelopment Authority of Mound, Mound, MN, (HRA) entered into a Consolidated Annual Contributions Contract (ACC) No. C -858, Parts A and B, on January 25, 1996, with the U.S. Department of Housing and Urban Development (HUD), as amended, which provides ongoing funding for the maintenance and operation of the HRA's public housing projects; and WHEREAS, under Section 5 of Part A of the ACC, the HRA shall develop and operate all projects covered by the ACC in compliance with all the provisions of the ACC and all applicable statutes, executive orders, and regulations issued by HUD, as they shall be amended from time to time, including but not limited to, those regulations promulgated by HUD at Title 24 of the Code of Federal Regulations (CFR), which are hereby incorporated herein by reference as if fully set forth herein; and WHEREAS, under Section 5 of Part A of the ACC, the HRA shall ensure compliance with such requirements by any contractor or subcontractor engaged in the development or operation of a project covered by this ACC; In consideration of the covenants herein contained, the parties hereto agree as follows: 1. Appointment. The Owner hereby appoints the Agent, and the Agent hereby accepts appointment, on the terms and conditions hereinafter provided, as the Owner's exclusive agent to manage, and operate the 50 -unit apartment building located in Mound, Minnesota, commonly known as Indian Knoll Apartments, ('Premises "). 2.1 Renewal. The term of the Agreement shall be from January 1, 2014 to December 31, 2014 unless terminated as provided in sections 2.2 and 7. 2.2 Termination By Either Party. This Agreement may be terminated by either party during its term by the giving of written notice to the other party. The Agent must give 60 -days notice to the Owner of such termination. The Owner will use its best efforts to give 60 -days notice to Agent, but may terminate upon the giving of 30 -days notice. 3. Responsibilities of Agent. The Owner agrees to give the Agent the following authority and powers (all or any of which may be exercised in the name of the Owner) and the Owner agrees to assume all expenses in connection therewith. To prepare a management plan with the Owner that includes an operating budget and an on -site staffing analysis along with recommendations, for approval by Owner; To cause to be hired, paid and supervised all persons necessary to be employed in order to properly maintain and operate the Premises who, in each instance, shall be the Agent's and not the Owner's employees, and cause to be discharged all persons unnecessary or undesirable; To cause the Premises to be maintained in such condition as may be deemed advisable by the Owner, and cause routine repairs and incidental alterations of the building to be made, including, but not limited to, electrical, plumbing, heating, carpentry, masonry and any other routine repairs and incidental alterations as may be required in the course of ordinary maintenance and care of the Premises. Subject to the requirements of Minnesota Statutes 469.015 and Mound PHA procurement policy, repairs or alterations involving an expenditure in excess of One Thousand Dollars ($1,000) for any one item shall be made only with the prior approval of the Owner, except that emergency repairs, i.e., those immediately necessary for the preservation of safety of the Premises or for the safety of the Residents of the Premises or other persons, or required to avoid the suspension of any necessary service in or to the Premises may be made by the Agent irrespective of the cost thereof, without the prior approval of the Owner if the Agent makes a reasonable attempt to communicate with the Owner in order to obtain such approval; To recommend, and with the approval of the Owner, cause all such acts and things to be done in or about the Premises as may be necessary or desirable to comply with any and all orders or notice of violations affecting the Premises placed thereon by any federal, state, county or municipal authority having jurisdiction thereover, except that if failure promptly to comply with any such order or violation would expose the Owner or the Agent to criminal liability, the Agent may cause such order or notice of violation to be complied with or without the prior approval of the Owner if the Agent makes a reasonable attempt to communicate with the Owner to obtain such approval, it being understood that the Agent shall notify the Owner promptly after receipt of any order or notice of violation, as foresaid; Subject to the requirements of Minnesota Statute 469.015, the Mound PHA Procurement Policy, and the HUD Capital Funds Program (CFP), to enter into all necessary or desirable service contracts in respect to the repair and operation of the Premises, including without limitation contracts for electricity, gas, air conditioning, equipment maintenance, water treatment, janitorial, landscaping, window cleaning, rubbish removal, fuel oil, back -up of fuel oil; vermin extermination, architects' and engineers' services required for the planning and supervision of alterations and /or improvements made or proposed to be made to the Premises, but any such contract having a term longer than one (1) year or requiring an annual payment in excess of One Thousand Dollars ($1,000) must be authorized by the Owner; Subject to the requirements of Minnesota Statute 469.015 and of the Mound PHA Procurement Policy, to purchase all supplies which shall be necessary to properly maintain and operate the Premises, and credit to the Owner any discounts or commissions obtained for purchase, to conduct solicitation of bids, preparation of bid packages, advertisement of bids, and tabulation of bids; To check all bills received for services, work and supplies ordered in connection with maintaining and operating the Premises and pay or cause all such bills to be paid, upon authorization and signature of the Owner, from funds of the Owner; Insurance coverage for the premises is to be determined by the HRA, such insurance to be obtained and /or maintained, at the expense of the Owner; To cause all employees of the Agent who handle or are responsible for safekeeping of any money of the Owner to be covered by a fidelity bond in favor of the Owner in the amount equal to one month's rent for the property plus the amount of the Mound PHA reserves; and to obtain a criminal background check for all employees or personnel on contract who have access to residents units per state law; To bill, or cause to be billed, residents for monthly rent and to send late notices according to the Rent Collection Policy, to collect and deposit those rents and produce the necessary reports for tracking tenant receivables, including deposits and miscellaneous revenues; To assist the Owner in maintaining a system of accounts to which shall be entered fully and accurately each and every financial transaction with respect to the operation of the Premises. To submit purchase orders and invoices on a timely and accurate basis to the Owner, and any reports relating to budget and capital expenditures as requested by the Owner; To keep the Board of Commissioners informed on a monthly basis of the financial status and physical condition of the Premises and other items that Owner should reasonably be made aware of; To cause to be prepared and filed all necessary forms relating to the maintenance and operation of the Premises required by any federal, state, county or municipal authority having jurisdiction thereover; To set up and maintain, at the Mound HRA office located on 2020 Commerce Boulevard, Mound, Minnesota, orderly files containing records for income and expenses, insurance policies, leases, correspondence, receipted bills and vouchers and all other documents and papers pertaining to the Premises and the operation and maintenance thereof, the same to be and at all times to remain the property of the Owner, and the Agent shall upon request of the Owner make same available to the Owner, and the Owner's accountants and attorneys; and to make all electronic data filing in PIC, LOCCS, REAC, and other electronic systems as required by HUD, and to create and submit the PHA Plan annually and complete all reporting as necessary; To provide the necessary information to and cooperate with the Owner's accountants and auditors in regard to the annual audit or any periodic audit of the books; To cooperate with Owner's accountants in regard to the preparation and filing on behalf of federal, state, city and any other filings required by any governmental authority; To generally, do all things reasonably deemed necessary or desirable for the proper management of the Premises according to HUD regulations for Low Rent Public Housing (LRPH) programs, including maintaining all records and reporting to HUD; and To perform, for the Owner's account and on its behalf, any lawful act and everything lawful and necessary or desirable in order to carry out the Agent's Agreements contained in this Agreement. It is expressly understood and agreed that everything done by the Agent under the provisions of this Agreement shall be done as Agent of the Owner, and any and all obligations, costs or expenses incurred by the Agent in the performance of its obligations under this Agreement shall be borne by the Owner and not by the Agent. It being expressly understood, however, that the monthly management fee compensates the Agent for (i) the costs incurred by the Agent in maintaining its own office staff, and (ii) its general overhead. Any payments made by the Agent hereunder shall be made out of such funds as the Agent may from time to time hold for the accounts of the Owner or as may be provided by the Owner. The Agent shall not be obligated to make any advance to, or for the account of, the Owner or pay any amount except out of funds held or provided aforesaid nor shall the Agent be obliged to incur any extraordinary liability or obligation unless the Owner shall furnish the Agent with the necessary funds for the discharge thereof. If Agent shall elect to advance any money in connection with the property the Owner agrees to reimburse the Agent forthwith and hereby authorizes the Agent to deduct such advances from any money due the Owner. 4. Banking. All funds of the property in the possession of the Agent shall be held by the Agent for the Owner, in trust, and shall be deposited by Agent in such bank, as the Owner shall designate, in a special account maintained by the Agent, for the premises. Such funds shall not be commingled with other funds collected by the Agent for its own account or as agent for others, or with the Agent's own funds and shall remain on deposit until disbursed in accordance with the terms of the agreement. The Owner shall directly receive all statements issued by the Bank with respect to such bank account and will provide a copy to the Agent in a timely manner. 5. Compensation. The Owner agrees to pay the Agent, during the term of this Agreement each month an amount equal to $52.50 per unit per month; Owner will reimburse Agent for time and expenses incurred by an on -site resident manager and a maintenance person for services (all Agent's employees) provided to Owner at Indian Knoll Manor, according to a budget pre- approved by Owner. The Agent shall also contract with and provide supervision for a resident caretaker on -site. 6. Indemnity. The Owner shall indemnify, defend and save the Agent harmless from and against all claims, losses, costs and liabilities arising out of damage to property, or injury to, or death of persons (including the property and persons of the parties hereto, and their agents, subcontractors and employees) occasioned by or in connection with the use, management operation, ownership, maintenance or control of the Premises; except as to such claims, losses, costs, and liabilities that are the direct result of willful misconduct or negligence of Agent or its officers, agents, subcontractors or employees. 7. Termination. Within 30 (thirty) days of termination of the Agreement, the parties shall account to each other with respect to all uncompleted business as follows: (i) the Agent shall deliver to the Owner all funds and other moneys, and all leases, subleases, corporate files, books, records and other instruments relating to the Premises and the Owner, that may be in the possession of the Agent; and (ii) the Agent shall concurrently take payment of all fees required to be paid hereunder through the date of termination of the Agreement by deducting same from all funds and money otherwise transferred to the Owner under this paragraph. S. Assignment. The Agent may not assign this Agreement without the prior written consent of the Board of Commissioners. Subject to the provisions hereof, all of the covenants, conditions and obligations contained in this Agreement shall be binding and to the benefit of the respective successors and assignors of the Owner and the Agent to the same extent as if each successor and assignor were in each case named as a party to this Agreement. 9. Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law. 10. Applicable Law. This agreement shall be construed and enforced in accordance with the laws of the State of Minnesota. 11. Notices. All notices, demands, requests or other communications which may be or are required to be given, served or sent by either party to the other, shall be in writing and delivered personally or by certified mail, return receipt requested, with postage prepaid, at the address first above mentioned. A party may change the name or address for the giving of notice provided above by written notice to the other party. 12. Entire Agreement. This agreement and the documents to which reference in it has been made, shall be construed together and constitute the entire, full and complete agreement between the Owner and the Agent, and there are no representations, inducements, promises, or agreements, oral or otherwise, between the parties not embodied herein, which are of any force or effect. 13. Modifications. This Agreement may not be changed or modified except by written document signed by both the Owner and the Agent. 14. Workers Compensation Insurance. This Agreement shall not become effective until Agent has provided Owner written evidence that Agent complies with all applicable worker compensation insurance requirements. 15. Relationship of Agent to Owner. The relationship of the parties to this Agreement shall be that of Principal and Agent, and all duties to be performed by Agent under this Agreement shall be for and on behalf of Owner, in Owner's name, and for Owner's account. In taking any action under this Agreement, Agent shall be acting only as Agent for Owner, and nothing in this Agreement shall be construed as creating a partnership, joint venture, or any other relationship between the parties to this Agreement except that of Principal and Agent, or as requiring Agent to bear any portion of losses arising out of or connected with the ownership or operation of the Premises. Nor shall Agent at any time during the period of this Agreement be considered a direct employee of Owner. Neither party shall have the power to bind or obligate the other except as expressly set forth in this Agreement, except that Agent is authorized to act with such additional authority and power as may be necessary to carry out the spirit and intent of this Agreement. 16. Save Harmless. Except as to the willful misconduct or negligence of Agent, Owner shall indemnify, defend, and save Agent harmless from all loss, damage, cost, expense (including attorney's fees), liability, or claims for personal injury or property damage incurred or occurring in, on or about the Premises. Agent shall indemnify, defend and save Owner harmless in the same manner based on the willful misconduct on negligence of Agent. 17. Liability Insurance. Owner 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 to property or persons that might arise out of the occupancy, management, operation, or maintenance of the Premises. The amounts and types of insurance shall be acceptable to both Owner and Agent, and any deductible required under such insurance policies shall be Owner's expense. Agent shall be covered as an additional insured on all liability insurance maintained with respect to the Premises. Liability insurance shall be adequate to protect the interests of both Owner and Agent and in form, substance, and amounts reasonably satisfactory to Agent, Owner agrees to furnish Agent with certificates evidencing such insurance or with duplicate copies of such policies within three business days of the execution of the Agreement. If Owner fails to do so, Agent may, but shall not be obliged to, place said insurance and charge the cost thereof to the Operating (and /or) Reserve Account(s). 18, Agent Assumes No Liability. Agent assumes no liability whatsoever for any acts or omissions of Owner, or any previous Owner of the Premises, or any previous management or other agent of either. Agent assumes no liability for any failure of or default by a tenant in the payment of any rent or other charges due Owner or in the performance of any obligations owed by any tenant to Owner pursuant to any lease or otherwise, nor does Agent assume any liability for previously unknown violations of environmental or other regulations which may become known during the period this Agreement is in effect. Any such regulatory violations or hazards discovered by Agent shall be brought to the attention of the Owner in writing, and Owner shall promptly cure them. 19. Equal Employment Opportunities. During the performance of this contract, Common Bond Communities agrees as follows: a. Common Bond Communities will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. b. Common Bond Communities will cause the foregoing provision to be inserted in all subcontractors for any work covered by this contract so that such provisions will be binding upon each subcontractor, provide that the foregoing provision shall not apply to contractors or subcontractors for standard commercial supplies or raw materials. 20. HUD Rules and Regulations. In the management of Indian Knoll Manor, Common Bond Communities shall comply with rules and regulations established by United States Department of Housing and Urban Development (HUD) and other appropriate government agencies. Agent shall comply with all applicable requirements of the General Conditions for Non - Construction Contracts and Davis Bacon Laws. Agent shall require compliance with said requirements by all subcontractors engaged to assist the Agent for any subcontract in excess of two thousand dollars ($2,000). HRA is responsible for monitoring Agent's compliance. Non - compliance by Agent and its subcontractors will result in findings of non - performance under the Management Agreement and shall be grounds for termination. Any finding of non - compliance in underpayment of wages and benefits shall be an expense from Agent's compensation. Nothing contained in this Management Agreement shall prohibit or limit the HRA from the exercise of any other right or remedy existing under applicable law or available at equity. The HRA's exercise or non - exercise of any right or remedy under this Management Agreement shall not be construed as a waiver of the HRH's right to exercise that or any other right or remedy at any time. Common Bond Communities shall provide all normal public housing related management functions, including yearly inspections of all units and building common area's, annual income reviews and rent calculations, maintaining a waiting list in accordance with the HRA Occupancy Policies, admission, evictions, and any housing management related functions. Common Bond Communities shall prepare a monthly report on the management of Indian Knoll Manor for the HRA Executive Director. A representative of Common Bond Communities shall attend HRA Board meetings quarterly, or upon request. Common Bond shall prepare and submit a report to the HRA Board within 30 days of any HUD PHAS report that includes any deficiency issues. The report will include any causes and a plan to correct the deficiencies. Common Bond Communities shall encourage the formation of a Resident Council and ensure that its representative attends the monthly Resident Council Meeting. The Common Bond Communities shall work with the Resident Council as necessary for the efficient and amicable operation of Indian Knoll Manor. Common Bond Communities shall maintain records on -site and off -site in accordance with HUD and state records maintenance /disposition requirements. IN WITNESS WHEREOF, the parties hereto intending to be legally bound hereby, have executed this Agreement of the day and year first above written. Mound Housing and Redevelopment Authority Mark Hanus Its: BOARD CHAIR Date: Kandis Hanson Its: EXECUTIVE DIRECTOR Date: AGENT: Common Bond Communities 02 Its: Date: