Midtown Phillips Neighborhood Association Inc Board Meeting December 9, 2014 6:30-8pm Stewart Park, 2700 12th Ave S, Minneapolis

Board members present: Aaron Lockridge, Jana Metge, Sunshine Sevigny, Evan Hall, Katherine Blauvelt, Marj Magnuson Board members absent: Dan Wilder, Laura Sanchez, Maria Valencia, Veronica Cruz, Chris Lomheim Also present: Shirley Heyer, Naomi Mohammed, Wilson Molina, Mary Watson, Ismail Hasi, Joann Essenburg I. Call to Order Aaron called the meeting to order and made introductions. Agenda approved with updates. II. South Service Area Master Plan and Mary Watson Mary Watson introduced herself and gave overview of the South Service Area Master Plan, a new plan for all the parks south of downtown and east of I-35W (a total of 33 park properties). Mary seeks support from MPNAI to represent the four neighborhoods of Phillips as a committee member and already has the support of West Phillips and Ventura Village neighborhoods. Evan made a MOTION to support Mary to represent Phillips on the Minneapolis Park and Recreation Board with Brad Pass as an alternate. Marj seconded the motion. Katherine abstains. Motion passed. III. Banyan Update Naomi Mohammed presented updates on the community outreach partnership. Banyan is offering Somali block training and she is seeking contact info for block leaders for Midtown. Thursday nights 5:30pm they are offering leadership training. They have identified two blocks in neighborhood with no organization and working toward forming block clubs in those areas. Also engaging in door-knocking efforts to reach out to neighborhoods and help set up groups or organize National Night Out parties. Other involvements: Police appreciation dinner volunteer, attends court watch, and attends Midtown meetings. Working overall on neighborhood relationships, pleased with progress and hoping to get more blocks involved. MPNAI will work with Banyan to partner on presence at the February 2015 Annual meeting. IV.

2548 12th Ave South

Evan gave overview of current status of this property. City’s current intention is to demolish the property. Molina offers to rehab the property. Previously reached out for bids but they came back too high. Wilson Molina introduced himself and seeks support from the board to salvage the home. He believes the foundation is solid and cost to demolish is great expense for the city. Molina seeks a letter of support which will be presented to CPED. Evan made a MOTION that MPNAI encourage the city of Minneapolis and Hennepin County to give strong consideration to the sale of 2548 12th Ave to Molina Realtors in order to preserve a presence on this corner of 26th and 12th. Jana seconded. Motion passed. MPNAI recommends to Molina that he connect with the 12th Ave block and reach out for their support. Molina expressed he would also be interested in rehabbing other houses in the neighborhood with damage. Evan will write letter on behalf of MPNAI to support Molina’s intention. V. Personnel Committee Update Katherine gave overview of the Personnel Committee’s intention for the hiring process and presented applicant’s resumes for our staff position at PPL. Recommends we have a standard list of questions to ask applicants. Need to narrow down list of candidates. Hopes to move process along as soon as possible with a series of phone interviews then in-person interviews. Hopes to have recommendation for final candidates by next board meeting. Katherine made a MOTION to authorize herself, Jana and Aaron to interview PPL staff candidates. Sunshine seconded. Motion passed. VI. Organizational Consultant Three resumes received for position. Amy Arcand is favored candidate. Jana made a motion to authorize Katherine and Jana to discuss an agreement with organization consultant applicant Amy Arcand. Evan seconded. Motion passes. VII. Finance Report Jana walked through existing organizational contracts and available sources of 20152016 funding for the organization. Jana offered draft of the proposed 2015 budget and provided copies of the 2014 operating budget. $118,224 - CPP 2012-2013 Grant. Allocated but non contracted to date. To be used to implement NRP Phase II projects identified in the plan, like the Phillips Pool, Traffic Calming, Down payment assistance, or Midtown Safety Center or develop a Neighborhood Priority Plan for new ideas like the Utility Wrap Art Project. Jana encouraged the board to review the NRP Phase II plan for next board meeting, along with reading all the community survey data in appendix. The NRP Phase II plan states that CPP funds should be used to implement pieces of this Phase II plan since there

was limited NRP funding and since so much of our funds were frozen by the December 2010 Council Action. Jana encouraged the Board to advocate to get those funds reinstated with additional TIF revenue projected to come in above projections over the next few years. $47,106 remains from the 2011-2012 CPP grant which was extended thru Dec 2013. These funds can be rolled over into our NPP project fund. Jana distributed the City Funding report for this grant budget. $15,873 remains uncontracted but allocated from the NRP Phase II plan. Jana distributed the NRP Phase II Plan Net document to the Board. The NRP Phase I plan has been closed out. Jana distributed the NRP Phase 1 Plan Net document to the Board. Future program income will come in under the Phase II plan. These funds went into expanding our NRP Phase II Admin contract. For 2015 we have contracted and available now within our NRP Phase II Administrative contract: $26,500 for PT staffing, $1,000 for Insurance, $2,500 for Translation services, and $10,000 for Professional Services/Organizational Consultant. Total contracted for 2015 is $40,000. 2014-2016 Community Participation Funds is a 3-year contract. TIF revenue which funds this contract was legislatively written by Rep Karen Clark and was set up as a 10 year funding source for neighborhoods. But, we will need to be ensuring post 2016 funding with City Council starting in 2015. We have $72,228 per year contracted for operations and outreach for 2014, 2015, 2016. Independent Contributions are solicited for the Aquatennial Event annually. We raise between $1,500-$2,000. We also raise $7,500 in cash and $6,000 in donations annually for the Phillips Community Clean Sweep. Jana distributed a draft 2015 budget, along with the 2014 approved operating budget for comparison. Year to date comparisons of actual expense/income and expenses had been circulated electronically. New adds to the 2015 budget were: Staffing costs, Organizational Consultant cost, and Utility pole wraps. Jana stated that we would need to put together a Neighborhood Priority Plan document to access the 2012 CPP funds for this project, just like the draft document developed & circulating regarding the Phillips Pool. It would need to be presented at one community meeting and voted on at the next, then approved by the Board. NCR staff also need to approve it prior to Board approval. Jana suggested that the Accounting line item should be increased. Evan and Sunshine asked for a line item amount of $1,050 for the logo design project and suggested it

would fit under website budget line item. Evan will update proposal and get to Jana. Jana will discuss with Finance/Contract management to ensure that it is an allowable use of TIF funding. Jana made motion to accept letter of engagement with Barry Rogers with minor amendments to provide that we articulate under financial reports to specify P & L and Balance Sheet, that we get an updated Zip drive of organizational Quickbooks monthly and, that we update the date to Jan 1, 2015-Dec 31, 2015. Sunshine seconded. Motion passes. Copy of Letter of Engagement at end of minutes. Question was raised that we need monthly financial reports. Jana stated that due to delay on approving the Accountant Engagement letter, there are no financials. There needs to be a signed, approved Engagement letter for them to begin there work. If approved tonight, the Accounting firm would be starting in January vs. November as planned. Work cannot start on the accounting work without an approved Engagement letter signed by the board. We cannot get monthly financials until we have an Accountant in place and we can't begin this work until we have a signed Engagement letter with the Accountant. Jana reported that the 2013 IRS 990 was completed, signed, and mailed certified by the November 2015 extension deadline. Jana also referred to 2 documents printed out by Carrie Day at NCR for us 1) Follow up to the Community Safety meeting as requested by Marj. This was prepared by Jana & Carrie Day and on the agenda for the November Community meeting. We ran out of time for it, so Jana brought it tonight. 2) Principles of Community Engagement as approved by City Council - direction to neighborhood groups/community engagement obligations per city contract. She gave the document to Evan for future Housing Meetings. Board members should send all further 2015 budget information to Jana by email prior to January Board meeting so that we have as accurate as possible budget to discuss at the meeting. Katherine raised the concern of being able to approve a 2015 NPP budget, due to the lack of financial information she felt was available to the board.

VIII. Logo call for artists Evan presented proposal for logo design call for artists. Will provide digital copy to be sent to board members. Jana to follow up on honorarium amount. Evan made a MOTION to support the logo design call for artist initiative. Katherine seconded. Motion passed. IV.

Upcoming agendas

January 2015 agenda discussed and updated. Sunny to send date suggestion for Annual Meeting planning session. Suggested date January 10th.

V. Housing Report Even is meeting with Greater Metropolitan Housing Corporation. Working on mapping problem properties. Will present to board when complete and can prepare information for discussion. VI.

Meeting Adjourned

December 12, 2014 Board of Directors Midtown Phillips Neighborhood Association, Inc. Minneapolis, Minnesota Dear Directors, The purpose of this letter is to set forth the understanding of our engagement to provide the accounting services listed below to Midtown Phillips Neighborhood Association, Inc., (MPNA) for the period beginning January 1, 2015 and ending December 31, 2015. We will: 1. Transition and catch-up the accounting, year to date as follows: a. Work with the Treasurer to: i. Transfer accounting from the prior accountants ii. Review the 2014 and 2015 funding sources iii. Review and revise the current chart of accounts to conform to your operational requirements iv. Develop a Check Request Form to reflect amount, vendor, date, purpose, funding source, budget line item, and proper authorization b. Record all accounting transactions into the accounting software, in accordance with generally accepted accounting principles, for the period of January 1, 2014 through December 31, 2014. The estimated fee for the accounting entries catch-up and transitioning phase is $2,500 billed as a retainer of $1,000 and final bill of $1,500 when complete. 2. For the 12 month period beginning January 1, 2015 and ending December 31, 2015, we will serve as the Outsourced Accountant for the Organization and complete the following tasks: a. Record all cash receipts and cash disbursements in the accounting software b. Reconcile all bank and balance sheet accounts as necessary on a monthly basis

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c. Prepare monthly financial statements, including Statement of Position (balance sheet), Statement of Activities (profit and loss), Cash Flow statement and analysis, and all necessary reports to the Board of Directors d. Prepare data to file and enter all contract reimbursement requests into the accounting software monthly, quarterly or as necessary e. Provide ‘timely’ reports (monthly, quarterly or as necessary) summarizing items submitted for reimbursement to the City of Minneapolis f. Provide financial reports and analysis electronically via flash-drive or email g. Provide MPNA with the QuickBooks back-up file, monthly via flash-drive or email h. Ensure that MPNA is reimbursed by the city in the correct amount i. Provide ongoing monitoring of MPNA’s cash flow for the use and decision-making of senior management j. Oversee or prepare the required annual 1099’s to independent contractors for the year ending December 31, 2014. The estimated annual fee to serve as an Outsourced Accountant for the period of January 1, 2015 through December 31, 2015 is $3,350 billed monthly at $280 per month. 3. Attend Board meetings up to three times per year to present the financial statements, answer questions, and train the Board on reading financial statements The estimated fee to meet with the Board up to three times per year is $1,050, billed as incurred. 4. Prepare the IRS Form 990-EZ and the State of Minnesota Charitable Organization Annual Report for the year ending December 31, 2014. The estimated fee to prepare the Form 990-EZ and Annual Report is $1,000. You agree to: 1. Devote uninterrupted time to working with us as needed 2. Make candid representation about your plans and expectations 3. Coordinate Board presentations, discussions, and trainings by us 4. Prioritize the sequence of procedures that we will perform to make sure your needs are met on a timely basis 5. Pay all bills on a timely basis 6. File quarterly contract reimbursement requests 7. Prepare the annual budget 8. Fundraise, implement, and manage contracts and cash flows Midtown Phillips Neighborhood Association, Inc. Page 3 Engagement Letter

9. Create, implement, monitor, and file all contracts and MOU’s 10. Create and maintain monthly financial files 11. Provide: a. Copies of the two City of Minneapolis contracts, and any other contract, grant, and/or revenue support in effect in calendar year 2014 and 2015, if applicable b. Copies of all reimbursement requests submitted in 2014 and proof of payment (if paid) c. Monthly vendor check data, including check copies, vendor bills, and/or original receipts d. Monthly bank statements e. Complete data necessary to prepare 1099’s f. Program narrative, current Board list denoting officers, and assist with the functional expense allocations for completion of IRS Form 990-EZ

All services will be under the direction of Barry Rogers, CPA. We anticipate starting this engagement in December 2014. Either party may terminate this agreement upon thirty days written notice. We will require a retainer fee of $1,000 upon execution of this contract to begin the initial tasks of working with the Treasurer and recording all accounting entries for the period of January 1, 2014 through December 31, 2014. We will invoice $1,500 at the conclusion of this process (total estimated fee of $2,500 for initial work with the Treasurer and entering 2014 accounting entries for the period of January 1, 2014 – December 31, 2014). If we incur less time than estimated during the catch-up and transitioning phase of this engagement, we will adjust our invoice accordingly. We will also invoice you $280 per month beginning January 1, 2015 through December 31, 2015 (12 months) to serve as your Outsourced Accountant (total annualized cost of $3,350). Additionally, we will bill you separately for meeting with the Board (up to $1,050 if we meet 3 times) and $1,000 for completion of the 2014 Form 990-EZ. These fees represent a total contract amount of $7,900, for the services contained in this letter. You also agree to pay any out-of-pocket expenses other than those which are inherent to the services that we will provide.

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We sincerely appreciate this opportunity to be of service to you. If the foregoing is in accordance with your understanding, please sign a copy of this letter in the space provided and return the signed letter to us. We will be available to begin this engagement upon acceptance of this letter. Very truly yours,

BWK Rogers PC RESPONSE: This letter correctly sets forth the understanding of Midtown Phillips Neighborhood Association, Inc. Officer signature: ____________________________________ Title: ________________________________________________ Date: _________________________________________________