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Council approves 10‑month Cornerstone contract after extending notice on fee changes
Summary
Sherburn City Council approved a 10‑month renewal with Cornerstone Management after members pressed for clearer limits on a new clause allowing future fee adjustments; council required 120 days' notice instead of 30 before approving the contract.
Sherburn City Council approved a 10‑month contract renewal with Cornerstone Management after council members raised concerns about language that would let the manager adjust its fee to "current market rates."
Council members identified a new clause (section 2.5) that permits Cornerstone to change its management fee with 30 days' notice and objected that the provision was open‑ended. One council member argued the clause could allow Cornerstone to use its own properties as comparables, potentially raising fees beyond the previous 5.5% level. Council negotiated increasing the notice period to 120 days to give the city more time to review any proposed rate change.
After that adjustment was agreed, a motion to approve the renewed contract was moved, seconded and carried by voice vote. The contract was approved for a 10‑month term as presented with the amended notice period.
The discussion focused on protecting the city's budget exposure to a future fee increase; no further numeric cap on future fee rates was set during the meeting. The council did not provide details on whether the city attorney would seek additional contract language beyond the extended notice requirement.
The contract approval concludes the agenda item and council proceeded to subsequent business.
