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HomeMy WebLinkAboutApril 16, 2002HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF APRIL 16, 2002 CALL TO ORDER - The Regular Meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) was called to order by Chair, Marlaine Szurek at 6:37 p.m., April 16, 2002, in the Parkview Villa Community Room B, 965 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Marlaine Szurek, Julienne Wyckoff, Bruce Nawrocki, and Bobby Williams, Dennis Ecklund Jr. Gary Peterson arrived at 6:40 p.m. Walt Fehst, Executive Director Randy Schumacher, Acting Comm. Dev. Director Anita Kottsick, Parkview Villa Housing Administrator Cheryl Bakken, Secretary Mark Nagel, Housing Assistant CONSENT AGENDA Approval of Minutes Approve the Minutes of Regular Meeting of February 19, 2002. MOTION by Nawrocki, second by Williams, to approve the minutes from February 19, 2002, regular meeting as presented in writing. All ayes. Motion Carried. REPORT OF MANAGEMENT COMPANY Kottsick indicated the general engineer for HUD's Real Estate Assessment Center was out April 9tn to verify the Health and Fire Safety Hazards found at the physical inspection were taken care of. Kottsick indicated the repairs were made the same day the inspection was conducted. The Annual Fire Department Inspection was held on March 12, 2002for all three buildings. No deficiencies were found, however, the Fire Department advised us to upgrade the waste disposal cans to fire proof ones. Staff is currently looking for vendors. Mid Northern Electric installed the surge protection at Parkview units on April 9th. An accident report was filed when a resident fell outside the entrance to the building where the cement sidewalk surface raised. The proper medical procedures were followed and the resident turned out to have no injuries. Staff will check for repairs to the sidewalk when the weather gets better. Fehst indicated Kottsick should check with the Lauren McClanahan in Public Works to see what he does with the sidewalk in front of City Hall, which also shifts each year. ITEMS FOR CONSIDERATION CREST VIEW MANAGEMENT AGREEMENT ONE-YEAR EXTENSION Schumacher stated at the February 19, 2002 HRA meeting, staff was directed to negotiate a one- year extension of the present Management Contract with Crest View Corporation. The proposed contract represents a $3,155 increase or 2% over the present contract. Housing & Redevelopment Authority Minutes April 16, 2002 Page 2 of 4 Nawrocki felt the increase was more than just 2% and indicated he would be voting against the motion approving the extension. Renie Sufika, stated Kottsick has done a good job, but would like to see more activities for residents than just the picnic. Szurek explained, management has a limited budget to work with, because the building is subsidized by the government. Schumacher indicated there is two issues to consider: 1) we are going through a new Capital Improvements Plan; and 2) Kottsick has a new software program that she has been trained in on and before she moves to her new position in the fall at the Crest View Senior Assisted Building she will train the new administrator. Szurek thought the Board discussed ending the contract at the end of the year, rather than in June. Fehst stated at the last meeting it was decided to extend the contract because of Community Development Goal #4, to evaluate the financial status for Parkview Villa. Peterson recommending an amendment to the motion, directing staff to start the bidding proposal process on January 1st, 2003, thus, giving staff enough time for the bidding process. MOTION by Peterson, second by Wyckoff, to approve the One Year Extension of the Management and Maintenance Services Agreement to June of 2003 with Crest View Corporation, based on their proposal dated April 1, 2002, and direct staff to start the bidding proposal process on January 1st, 2003; and furthermore, to direct the President and Executive Director to enter into an agreement for the same. Upon Vote: Peterson- Aye, Nawrocki- Nay, Szurek- Aye, Williams- Aye, Wyckoff- Aye. Motion Carried. 4607 TYLER STREET OPTIONS Nagel indicated at the February 19, 2002 HRA meeting the Board directed staff to review the repayment agreements for HOME and CDBG funds, check with non-profit organizations on purchasing the 4-plex, and look at other options to keep the unit by possibly increasing the rents. Nagel explained some of the options the Board couM take. The first option wouM be to make no changes and we continue to loose money with no payback to the reserve account. The second option wouM be to sell the 4-plex for its appraised value of $165,000 and payback the entire $40,000 of HOME funds and approximately $36,395 of CDBG funds, leaving about $90,000 to payback the Reserve Account. Third, we could sell to a non-profit organization, which would keep the rents lower for the residents and the City wouldn't have to payback the HOME or CDBG funds. The fourth and last option, would be to hold onto the building until the agreements signed with Anoka County for HOME and CDBG funds expires on May 21, 2009, and sell the 4-plex on the open market with no restrictions, payback the Reserve Account and have $90,000 left for other projects. Nagel recommended choosing an option to recover the $90,000 by selling the unit. Housing & Redevelopment Authority Minutes April 16, 2002 Page 3 of 4 Szurek asked if ACCAP purchased the building, would be have to payback the funds and could we specify the type of housing the building is to be used for on the purchase agreement. Nagel stated that was possible. Nawrocki asked what is the current rent being charged in the building. Kottsick indicated the minimum of $350 has been charged since the building started. Nawrocki suggested Option 4, to hold onto the property until the agreements expire and increase the rents to $500 in the meantime. Peterson indicated there will be some major repairs coming up in the next 8 years to the building and we would have to increase the rents to cover those costs, possibly using what the Social Security increases over the years would amount to. Peterson also stated that the property was purchased originally to clean up the area, not to become rental owners and asked what kind of dollar value would we come up with by selling the 4-plex on the open market. Nagel indicated it would depend on if we sold it to a non-profit or on the open market. Fehst suggested possibly sending out an RFP for bids to both non-profit and profit sales. Szurek directed staff to get an appraisal and some bids from non-profit and profit firms for the next HRA meeting. PROPOSAL FOR CAPITAL IMPROVEMENT PROGRAM ENGINEERING SERVICES Nagel explained one of the main parts of the PHA Plan is a Comprehensive Capital Improvement Plan, which hasn't been done for many years. At the Goals session in January, the need for a engineering inspection was discussed as the first step in reviewing the options for Parkview Villa. Staff contacted some engineering firms for bids, with two companies responding, Sierra Construction/RLK and TKDA. The bid from TKDA was $800 lower than Sierra. Staff recommended entering into the agreement with TKDA. MOTION by Nawrocki, second by Williams to approve the contract with TKDA for engineering services related to the completion of comprehensive, 20-year, Capital Improvement Plans for both Parkview Villa North and South in an amount not to exceed $6,700; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. MILLAR ELEVATOR~ DAVIS-BACON PAYMENT Nagel indicated on October 16, 2001 the HRA Board approved a motion to make restitution to the five Millar Elevator employees that worked on the Parkview Villa Elevator Modernization in the amount of $6, 709.90, to satisfy Davis-Bacon requirements. Recently, staff received notification from Millar Elevator that there was a wage increase on July 5, 2000. Therefore, the amount due comes out to about $400 more, for a total of $7,109.47. Homing & Redevelopment Authority Minutes April 16, 2002 Page 4 of 4 MOTION by Peterson, second by Williams, to authorize payment of $7,109.47 to the five, Millar Elevator Service Company employees, in the attached amounts to comply with Davis- Bacon requirements for the Parkview Villa Elevator Modemization Project, funded with CIAP dollars. Upon Vote: Peterson- Aye, Nawrocki- Nay, Szurek- Aye, Williams- Aye, Wyckoff- Aye. Motion Carried. ADMINISTRATIVE REPORTS PHAS SCORE Schumacher reported staff received the Public Housing Assessment Scores from HUD. In the year 2000 our overall PHAS Score was 88 and in 2002 it was 96. Kottsick and staff have been working very diligently to improve the programs and reporting systems at Parkview and shouM be commended for their efforts. ADJOURNMENT Chair, Szm'ek adjourned the meeting at 7:34 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:~IRAMinutes 2002\4-16-2002