Loading...
HomeMy WebLinkAboutApril 15, 2003HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF APRIL 15, 2003 CALL TO ORDER - The Regular Meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) was called to order by the Vice Chair, Dennis Ecklund, Jr. at 6:35 p.m., April 15, 2003, in the Parkview Villa Community Room B, 965 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Bruce Nawrocki, Bobby Williams, Dennis Ecklund Jr., Patricia Jindra, Tammera Ericson, and Bruce Kelzenberg Walt Fehst, Executive Director Robert Streetar, Deputy Executive Director William Jones, Parkview Villa Housing Administrator Shirley Barnes, CEO, Crest View Corporation Cheryl Bakken, Secretary Mark Nagel, Housing Assistant PLEDGE OF ALLEGIANCE ELECTION OF OFFICERS Ecklund opened the election of officers. MOTION by Nawrocki to nominate Jindra for Chair. Jindra declined. Motion Not Considered. MOTION by Kelzenberg, second by Jindra, to nominate Ericson for Chair. All ayes. Motion Carried. After Ericson was elected chair, she took over the rest of the elections and meeting. MOTION by Nawrocki, second by Williams, to nominate Bruce Kelzenberg for Vice Chair. All ayes. Motion Carried. MOTION by Williams, second by Nawrocki, to nominate Jindra for Secretary/Treasurer. All ayes. Motion Carried. CONSENT AGENDA Approval of Minutes Motion by Williams, second by Jindra, to approve the minutes from the regular meeting of January 28, 2003 and the special meeting of March 10, 2003 as presented in writing. All ayes. Motion Carried. Housing & Redevelopment Authority Minutes April 15, 2OO3 Page 2 of 6 REPORT OF MANAGEMENT COMPANY Jones stated effective April 1, 2003 their office will be accepting merchandise deliveries for residents again. Incident reports will be available for residents. He is excepting bids for elevator maintenance, and LBP mechanical will replaced storage tanks on April 9th. Nawrocki asked, how will residents know when a package has been delivered for them. Jones stated the delivery drivers know to place a message on the residents, mailbox stating there is a package for them in the office. Ericson asked how residents think this procedure is working. Renie Suflca, Unit 104, indicated the procedure seems to be working well and hasn't heard of any complaints from other residents. Shirley Barnes, CEO, Crest View Corporation gave the results of the Management Services Survey that was delivered to residents in March. There were 88 residents that returned the survey, which is 60% of all the apartments. The average satisfaction rating and the rating given to the question "I would recommend Parkview Villa to others" was 3.4, there was a satisfied rating of 3.1, no questions below a 3.1 rating and the highest average was 3.5. The overall HUD score for the North building was 96c on a l OO point rating system. Nawrocki stated in the last management report it said there was no response from the waiting list for 4607 Tyler Street and asked what the process is for calling prospective renters. Jones stated the problem he was talking about was because the rent increased the first of the year to $600 per month for any new residents. All of the people on the waiting list were not interested in renting the unit for $600 a month. The HRA directed staff to advertise in the Star Tribune and eventually the unit was rented. Resident, Priscilla Cross, Unit 303, stated she was on the waiting list for Tyler and was never contacted and suggested that the people on the waiting list be given something to sign that says they turned it down. Jones stated her husband Bill, said he would talk to her, but didn't feel that it was affordable. Jones indicated he never heard back from them. In regards to the issue of signing a paper that they aren't interested in the unit presented at the time of rental would be hard to due as his instructions are to fill the unit as quickly as possible. He contacts the first person on the waiting list and allows three days for a response. Ericson stated she appreciated the timing that Crest View staff puts forth in getting the apartments rented quickly. Nawrocki stated he is concerned that residents of Columbia Heights aren't getting first choice of the available units, asked if there is any homeless residents in Parkview Villa and when policies were changed to allow disabled adults in the north building. Barnes stated Parkview Villa North has both seniors and disabled young adults per HUD regulations. Nawrocki requested staff provide documentation of the change in HUD requirements. Staff will provide documentation of the disability change. Housing & Redevelopment Authority Minutes April 15, 2003 Page 3 of 6 CITIZENS FORUM Renie Sufika, Unit 104, indicating the furniture was ordered months ago for the building and was told they wouldn't be able to get it because the money had to be used on the water heaters. Nagel stated the furniture will be ordered after the hot water heater and re-roofing projects are finalized. ITEMS FOR CONSIDERATION SALE OF 4607 TYLER STREET Nagel stated staff was directed to check into what non-profit organizations would be willing to pay and their interest in purchasing 4607 Tyler Street. Staff contacted various non-profit organizations, some weren't interested in that small of a building. Staff did receive three, qualified bids; 0 the Minnesota Housing Resources of St. Paul at $160, 000; Agape New Life Missions of Minneapolis at $102,000 and an independent housing consultant, Curt Bennett at $100,000. They all stated they would keep the rents at a low to moderate income level, which will meet our HOME and CDBG requirements for selling the unit without returning the funds borrowed to purchase the building. Nagel passed out a revised bid from Agape for $170,000, received by staff this week. Since 1995, rents have remained at $350/month until January ]st of this year where the board voted to increase rents for any new vacancies to $600/month, which is still lower than the HUD minimum of $912/month under their guidelines. Staff recommends the HRA authorize staff to negotiate a purchase agreement with Minnesota Housing Resources of St. Paul. Nawrocki asked what was on the bid specifications and requested to see a list of businesses staff contacted. Nagel stated staff did not send out a bid package but, called the various local agencies to see if they were interested. Streetar stated staff told each bidder the minimum bid would be $102, 000. Dave Engstrom, Minnesota Housing Resources, based their bid on a proforma of $650/month, and are willing to work with the City to keep the rents at the current $600/month. Currently they manage 100 units, which are all low to moderate income. Minnesota Housing Resources has 30 units in Scott County, 10 units in Woodbury, they are working with Moundsview, North and South St. Paul, and Minnetonka where they own and manage buildings. Terry Stacy, Agape New Life Missions, stated he missed the original bid due date, but submitted a bid at $102,000. He didn't understand that $102,000 was the minimum bid amount. Therefore, he submitted the revised bid this week of $170,000. In the 80 's and 90 's they owned some properties in the inner cities, helping low income and homeless people with housing, ran some homes for the mentally impaired and would like to purchase 4607 Tyler, keep the rents down and provide a good atmosphere to live in. They recruit renters by working with Section 8, individuals in the inner City and other local organizations. Resident, dulienne Wyckoff asked if the City would go out for bids, do they have to except the highest bidder. Streetar stated that would be the choice of the Board. Williams, Ecklund and Kelzenberg felt a formal bid should go out and dindra felt we should negotiate an agreement with Minnesota Housing Resources. Fehst indicated this item has come Housing & Redevelopment Authority Minutes April 15, 2003 Page 4 of 6 before the board many times and felt staff has provided sufficient information without going out for formal bids. Nawrocki stated the Board could: O reject the proposals and go out for more formal bids; or 2) direct staff to work with the Minnesota Housing Resources to incorporate our conditions into an agreement and check into their current housing scores from HUD. Ericson stated there is two fundamental questions to address; 0 is this a commitment we want to make to sell the property; and 2) if we make the commitment, should we except any of the three proposals submitted. MOTION by Nawrocki, second by Kelzenberg, to authorize staff to negotiate a purchase agreement with Minnesota Housing Resources, Inc. that spells out the conditions of the sale with the HRA and upon approval by CBDG and HOME program administrators. Upon Vote: Ecklund- Aye, Nawrocki- Aye, Ericson- Aye, Kelzenberg- Aye, Williams- Nay, Jindra- Aye. Motion Carried. PARKVIEW VILLA SOUTH RENT RECOMMENDATIONS Streetar stated the HIM Board asked staff to look at a rent structure for Parkview Villa South that meets current market rent and allows revenues to meets today's requirements. Staff asked Shirley Barnes, CEO Crest View Corporation to provide information on current rent structures. Barnes stated she contacted owners of the "Willows" and "Savannah Oaks" senior complexes for comparisons in Anoka County. The Parkview Villa South one bedroom is $250 to $425 and the two bedrooms are at $325-$500/month, which is significantly lower than the rent structure at the Willows. There is a total of 45 apartments in the south building, two of the two bedroom units are at the maximum amount of $5OO per month, and two of the two bedrooms ranging from $438 to $442. Currently, nine of the one bedrooms are at the maximum rent of $425 and twelve of the one bedrooms are at the minimum rent of $25O per month. In all of the cases she used ranges in order to keep the identity of individual residents private. Barnes recommended beginning on January 1, 2005 rents be increased to $450 for a one bedroom and $525 for a two bedroom, plus inflation and each year following, the rents should be adjusted in relation to operating expenses. She stated she would not recommend evicting anyone but, to work with them to find alternative housing. If rents are increased as proposed the annual additional revenues would be as follows: in 2004 it would be $233,100 or $48,58& in 2005 it would be $246,00 or $62,088; and in 2006 it would be $266,124 or $81,612. Ericson asked if there is anyone in the north building that pays more that $250/ month. Jones stated yes, there is. Ericson stated that means some of the renters in the North building are paying more than the south building and felt that a better rent structure should be put into place. Nawrocki asked what the criteria for the minimum and maximum income amounts are. Jones stated 40% of the residents in the North building have to be at a low income, with a maximum of $16, 000 to $17, 000. The minimum amount set by the HIM is $50.00. Barnes and Jones were not sure of the maximum amount, but will check and advise the board. Housing & Redevelopment Authority Minutes April 15, 2003 Page 5 of 6 MOTION by Nawrocki, second by Ericson, to table this item until the July HRA meeting where Crest View can obtain more information and notify the tenants of the South building that there will be a rent increase in the future, listing the possible rent amounts and to let them know that Crest View and the HRA will work with them to accommodate their needs for housing. All ayes. Motion Carried. NEW MANAGEMENT BIDS FOR PARKVIEW VILLA NORTH AND SOUTH BUILDINGS Nagel stated the Management Agreement with Crest View ends on June 1st, 2003. Therefore, has drafted an RFP for Board review, setting a pre-submission conference on May 6th, proposals due on May 14th at 4:00pm, and the final selection on May 21st in order for the contract to start on ,June 1st. HUD will also have to approve the contract. Ericson asked how 4607 Tyler should be listed on the management contract bids. Fehst stated it should be an optional item. Nawrocki stated the following changes should be made to the RFQ: 1) on page 5, item 2, it should read the proposer will retain the responsibility for screening and assigning residents; 2) page 5, item 6, the amount of $100,000 is too high and should be correcte& 3)page 6, under J, number 1, the last sentence should be remove& 4) page 7, B the 30 day notice should be changed to a 60 day notice; 5) page 9, C, tenant selection, should be changed to the proposer not agency; 6) page 13, V, 4607 Tyler should be listed as an optional or a separate bi& and 7) page 13, VI, Disclaimer, we should not reject any bids. Nawrocki felt we need a more meaningful bidding processes and asked Barnes if Crest View would be willing to extend their contract for a period of one year with a 60 day termination clause. Barnes stated they could extend the contract. MOTION by Nawrocki, second by Williams, to authorize staff and the Chair to sign an amendment to the Crest View Management Contract extending the present agreement for one year with a 60-day cancellation clause. All ayes. Motion Carried. MOTION by Nawrocki, second by Kelzenberg, to direct staff to make the requested changes to the RFQ and provide the Boardmembers a copy for comments prior to sending it out sometime in early May with a 45 day deadline for submittal. All ayes. Motion Carried. APPROVE RHA ARCHITECTS~ INC. CONTRACT ADDENDUM Nagel stated the HRA has a current contract with RHA Architects, Inc. for the re-roofing project, which is almost complete. The addendum to the contract for $750 is for additional work necessary. MOTION by Williams, second by Jindra to Approve the Contract Addendum with RHA Architects, Inc. in the amount of $750; and direct staff to process the payment when HUD approves the revision to the 2003 PHA Operating Budget. All ayes. Motion Carried. Housing & Redevelopment Authority Minutes April 15, 2003 Page 6 of 6 APPROVE CONTRACT AGREEMENT WITH LBP MECHANICAL INC. Nagel stated one of the water heaters at Parkview went out in January and another one sprung a leak shortly after, which left only one working for the entire North building. Cost of replacement for the water heaters was just under $15,000, so staff solicited bids. Three of the bidders declined. £BP Mechanical Inc. was the low bidder that could replace the water heaters in a timely matter. The bid was for two, 350-gallon water heaters. Because this was an emergency, the work was done last week. MOTION by Williams, second by Nawrocki, to Approve the Contract with LBP Mechanical Inc. for emergency replacement of Parkview Villa North Water Heaters in the total amount of $14,970; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. ADMINISTRATIVE REPORTS-None ADJOURNMENT Motion by Jindra, second by Kelzenberg, to adjourn the meeting at 9:12 p.m. Respectfully submitted, Cheryl Bakken Community Development Secretary H:\HRAMinutes 2003\4-15-2003