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HomeMy WebLinkAboutOctober 21, 2003HOUSING & REDEVELOPMENT AUTHORITY (HRA) REGULAR MEETING MINUTES October 21, 2003 CALL TO ORDER/ROLL CALL Chair, Ericson called the meeting to order at 7:00 p.m., October 21, 2003. Present: Tammera Ericson, Bruce Kelzenberg, Bruce Nawrocki, Bobby Williams, Dennis Ecklund Jr., and Patricia Jindra PLEDGE OF ALLEGIANCE Ericson announced the addition of Item #7, Resolution 2003-07 for the approval of HUD forms. CONSENT AGENDA : Approval of Minutes Ecklund stated on page 4, under Parkview Villa Management Bids he would like it amended to read: EcMund- felt very comfortable with CommonBond and Walker and stated that Crest View could possibly work if they made some changes. MOTION by Nawrocki, second by Williams, to approve the minutes from August 20, 2003, regular meeting with the amendment as listed. All ayes. Motion Carried. REPORT OF MANAGEMENT COMPANY Karen Fantle introduced herself as the new Parkview Villa Housing Administrator, stated she has been with Crest View for seven years as of November 4th, has been Resident Services Coordinator for Crest View on 42na and prior to that was Director of Therapeutic recreation. Apartment 609 has been filled and 4607 Tyler had an inspection with no violations reported CITIZEN FORUM Don Camp, Unit 608, asked when the dryers would be fixed on the second floor as they have been out for approximately two months. Fantle.s. tated Bill Gault has replaced parts on one and thought there was three working at this time. Nawrocki asked if the problem was the need for repair or replacement of the dryers. Kottsick stated they have someone come in to do the repairs to the machines and to her knowledge, they have replaced one and repaired the coin slot on another. Judy Schendel, Unit 612, stated when she was in the laundry room today, everything was working properly. Dorothy Keller, Unit 414, stated when she first moved in, she was told when you have visitors you need to tell the office and asked if this rule changed, as there are many visitors staying for long periods of tim.e.. Fantle stated the HUD regulation states one visitor could stay no longer than 21 days per year. Bob Balega, Unit 704, asked if the emergency cords are functioning properly, as his is in the down position. Kottsick stated they are functional, but residents should remember that staff responds to the emergency cords and if it is pulled after hours or on the weekend they should dial 911 instead.... Housing & Redevelopment Authority Minutes October 21, 2003 Page 2 of 7 Mayor, dulienne Wyckoff invited residents to ride on the 801 Bus with her on Wednesday, November 5th at no charge. Prizes and discount coupons will be given out. Residents should plan to meet her at the Bus Hub on Central at 10:30 am and plan to return from Rosedale at 2:20 pm. There are some flyers available by the elevators. ITEMS FOR CONSIDERATION Resolution 2003-04~ Adopting the Proposed 2004 Budget for Parkview Villa North Fantle stated the proposed budget for Parlcview Villa North is $373,900, which represents a 3. 7% increase over last year, 4. 5% increase in allocated interdepartmental labor, a projected 10% increase in utility costs, 5. 4°/6 increase in management fee expense due to a 2% increase in salad, costs and a reallocation of the total management fee. Supplies and services increased 3% in 2004. Total revenue is $383,500, which includes rents of $280,000, an Operating Subsidy of $90,000, investment incomes of $5, 000 and other miscellaneous charges. Nawrocki stated he thought the EDA approved the HRA Budget at their meeting. Streetar stated the EDA did approve an HRA Levy at a .0014 rate and an EDA redevelopment Levy at a .00183 rate. The EDA can raise money by levying this amount for redevelopment purposes. Motion by Williams, second by Jindra, to waive the reading of Resolution 2003-04, there being an ample amount of copies available to the public. Al! ayes. Motion Carried. Motion by Williams, second by Kelzenberg, to Adopt Resolution 2003-04, being a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights, adopting the 2004 Parkview Villa North Budget of $373,900 and recommending this to the City Council for approval. All ayes. Motion Carried. Resolution 2003-05~ Adopting the Proposed 2004 Budget for Parkview Villa South Fantle stated the proposed budget for Parkview'.Villa South is $197,477, which represents a 7. 6% decrease over last year, a 1.5% decrease in allocated interdepartmental labor and a $2,458 decrease in management services expense resulting from a 2% increase in salary'expense and a reallocation of costs between Parkview Villa North and South. Gross revenues are $198,100 and include rents of $180, 000, investment income of $6, 000 and other miscellaneous charges. Motion by Kelzenberg, second by Nawrocki, to waive the reading of Resolution 2003-05, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Kelzenberg, second by Jindra, to Adopt Resolution 2003-05, a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights adopting the 2004 Parkview Villa South Budget of $197,477 and recommending this budget to the City Council for approval. All ayes. Motion Carried. Walker ElderCare Management Agreement Nagel stated at the August 20tn HRA meeting the board passed a motion directing staff to prepare a 3-year draft agreement for management services with Walker ElderCare for Parkview Housing & Redevelopment Authority Minutes October 21, 2003 Page 3 of 7 Villa North and South, subject to approval by the HRA. Staff has prepared the draft agreement for board review and approval. The services provided are the same as we are currently receiving under the Crest View Contract except that Walker will take over the operation of the Capital Fund Program. Ecklund asked if Walker will look into hiring the current staff. Nagel stated they would. Nawrocki stated on page 2, under Termination, it states that if less than 60% of the services covered by the agreement have been preformed upon termination, the contractor shall be reimbursed and asked if this in our current agreement, with Crest View. Navel stated it was. Williams stated in Crest View's bid there would be a cost of living increase and Walker has a CPI increase for each additional year and asked if there would be a big difference. Nagel stated, it may not be any different. Nawrocki stated there are different types of CPI rates and asked which one they would be using. Navel stated he would find out from Walker. Resident, Renie Suftka, Unit 104 asked if Walker is getting the contract. Ericson stated that at the last HRA meeting a motion was made to direct staff to draft an agreement for review tonight and that no decision has been made yet. Resident, Gary Peterson, 3712 Lincoln, stated he has worked with Crest View for 18years and has had a very good working relationship with them. Motion by Williams to table this item until next month where staff can make some of the changes requested by the board. Motion Failed for Lack of a Second. Motion by Nawrocki, to authorize the Chair and Executive Director to enter into the agreement with Walker ElderCare with the understanding t.hat the CPI, 60 day Clause, assignability Clause, approval by HUD, approval by the City Attorney and the ability to have some input on hiring staff to be further explored to the satisfaction of staff. Ericson and dindra felt uncomfortable voting on the agreement in its current draft, dindra stated there are too many loose ends to the agreement.. The Motion was withdrawn by Nawrocki. Motion by Nawrocki, second by Ericson, to authorize staff to continue to negotiate with Walker ElderCare on the Management Services Contract for Parkview Villa North and South making the changes to the agreement as specified by the board and bring it before the board at the special meeting on November 18, 2003 at Parkview Villa immediately following the Public Heating held at City Hall at 7 p.m. All ayes. Motion Carried. Kelzenberg asked the residents of Parkview Villa that were present, how many are happy with Crest View's management. About half of the residents present were happy with them. Housing & Redevelopment Authority Minutes October 21, 2003 Page 4 of 7 Resolution 2003-06~ Exploring the possibility of transferring the ownership of Parkview Villa North and South to the Anoka County Housing and Redevelopment Authori ,ty Streetar stated the City Council established ambitious goals for the Community Development Department and with limited staff and financial resources and a budget reduction of $31, O00 for 2004, it is necessary to eliminate some of the responsibilities of the department, such as maintaining the ownership and management oversights for Par]~iew Villa North and South. By exploring the possibilities of transferring ownership and responsibilities of ownership to the Anoka County Housing and Redevelopment Authority (ACHRA), it would allow staff to focus more attention on the City Council's redevelopment goals. ACHRA currently owns and manages housing and would provide as good, if not better service to Park~iew Villa residents. This would significantly reduce the $5 to $6 million debt on Parlcuiew Villa South and we could return tax dollars being used to pay the debt to the City, School and County. Williams asked Streetar to explain the savings of $850 to$ 920 thousand per year of City tax money. Streetar stated the current tax statement obtained from Ehlers it states there is about 5.8 million owed. The City made the first payment of approximately $850,000 in September and will increase each year to an approximately amount of $920, 000. Williams informed the residents of Parlcview Villa the City borrowed 2. 5 million which has gone up to somewhere near 5.2 million, which mean there is no money to due the repairs necessary to the building. Therefore, it is very important the City explore their options. Nawrocki stated he was on the HiLt back when the decision was made to borrow the 2.5 million for Parlcview Villa South. The intent was to use Tax Increment Financing money to pay for the bonds. The Central Avenue business district was going downhill so a residents group of about 30people was formed to come up with recommendations. The group recommended two things: 1) the need for Senior Housing and 2) the need for a Comprehensive Plan for the community. Nawrocki also stated he disagreed to the wording in the HR,4 letter stating that maintaining the ownership and management oversight of Parkview Villa North and South takes resources away from more important City priorities. Resident, Ed Carlson, stated he was a former Mayor of Columbia Heights and one thing we would loose by selling Parkview Villa is the HUD funding. Mr. Hines suggested staff could check this matter out with Anoka County. Streetar stated, staff will check into this matter. Mrs. Keller, Unit 414, stated if their rent has never been subsidized in the South building, why were they told they were in subsidized units. Nawrocki stated the North building has always been HUD subsidized. The South building was never set up that way, and even though, there is no documents statin..g it, the South rents were to be $100 over the highest rents in the North building. Kelzenberg read the rent amounts from a 2000 application for the south building given to him by a resident describing what the rental requirements were at that time. Kottsick stated the form has changed since 2000per HUD requirements. Housing & Redevelopment Authority Minutes October 21, 2003 Page 5 of 7 Mayor, dulienne Wyckoff stated she attended the meeting with Streetar and Anoka County, which was a very preliminary meeting about the possibility of Anoka County owning Parkview Villa North and South. The County wants to establish a presence in southern Anoka County. Residents should rest assured that if the sale to Anoka County went through there would be no change in the status of their residency and at this time Anoka County is only asla'ngfor permission to explore the options of ownership. Diane Powers, Unit 905, stated she grew up in Columbia Heights, lived here for l O years and was told you have to be a resident of Columbia Heights to get into the building and in the past ),ear the units have been filled with anyone, not just Columbia Heights residents. She would like to see whoever takes over do a better job of placement in the units. Motion by Kelzenberg, second by Jindra, to waive the reading of Resolution 2003-06, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Kelzenberg, second by Williams, to Adopt Resolution 2003-06, a Resolution authorizing staff to explore the possibility of transferring the ownership, and all the responsibilities of ownership to the Anoka County Housing and Redevelopment Authority, and report back to the Board at the first meeting in January 2004. Upon Vote: Ecklund- aye, Nawrocki- nay, Ericson- aye, Kelzenberg- aye, Williams- aye, Jindra- nay. Motion Carried. Snow Plowing Service for 2003/2004 Fant!e stated last year MGS provided the snowplowing service for Parkview Villa and 4607 Tyler. Staff requested and received bids from MGS, Reliakor Services and Outdoor Environments. Again this year MGS was the low bidder at $65/occurance for 1 to 4 inches, $75 for 4 to 8 inches and $100 for anything over 12 inches, with salt and sanding at $16 for each 50 lb bag. Sstaff recommends approval of the contr, act for Snow Removal with MGS. Nawrocki asked why they obtained bids from Shakopee and not from around this area. Fantle stated, the bids were obtained by William Jones and Bill Gault, prior to her taking over the administration of Parkview Villa. Williams stated we had MGS last year and the fact that they aren't increasing their bid for 2004 is very reasonable and would be in favor of their contract. Motion by Kelzenberg, second by Williams, to approve the contract for Snow Removal Service to cover the year 2003-2004, to MGS Professional Building Maintenance Services, Inc; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Rent Ad,iustments for Parkview Villa South Streetar stated in April of this year, Crest View prepared a proposal for rent increases in the South building. Staff recommends the board hire the new management company and have them review the rent structure and make recommendations to the HRA no later than April of 2004. Housing & Redevelopment Authority Minutes October 21, 2003 Page 6 of 7 Nawrocki stated the longer we wait to change the rent structure, the harder it will be for residents to adjust to the increase. Kelzenberg stated the problem with the rent structure has been going on for this long and it shouldn't make a difference if we wait until spring to discuss rents. Streetar stated Crest View submitted the proposed rent structure in April that was tabled. The rent structure was as follows: as of January 1, 2004 a 1 bedroom would be $425, danuary 1, 2005 it would be $450 and January 1, 2006 it would be $463 plus inflation. Barnes stated the rent structures were based on cost per square foot comparing them to other local senior buildings. Ecklund stated you can't e:cpect someone that is paying $250 to start paying $450 a month and wondered if increasing the rents for all new resident would be possible instead. Ericson requested staff put this item on the agenda for the special HRA meeting in November for more discussion. Resolution 2003-07~ Approvin~ the Operatin~ Fund Calculation of Operating Subsidy Documents for 2004 Kottsick stated the Operating Fund Calculation of Operating Subsidy, PHA/IHA Board Resolution. Calculation of Occupancy Percentage for a Requested Budget Year, Calculation of Allowable Utilities Expense Level, Adjustment for Utility Consumption and Rates, Certification of a Drug-Free Workplace, Certification of Payment to Influence Federal Transactions, Application for Federal Assistance and the Report of Occupancy forms are all due to HUD this week and require HRA board approval by resolution prior to submitting them to HUD. Kottsick explained the documents to the Board. Motion by Jindra, second by Williams to waive the reading of Resolution 2003-07, there being an ample amount of copies available to the public. All ayes. Motion Carried. Motion by Williams, second by Kelzenberg, to Adopt Resolution 2003-07, being a Resolution of the Columbia Heights Housing and Redevelopment Authority confirming approval of the Operating Fund Calculation of Operating Subsidy for 2004 and related documents; and furthermore to direct the Executive Director to forward same to the U.S. Department of Housing and Urban Development. All ayes. Motion Carried. Williams stated the board should look at a back up plan for the rising costs of heating for next year. Ericson directed staff to add this item to the November HRA meeting. ADMINISTRATIVE REPORTS 4607 Tyler Closing Streetar stated the closing for 4607 Tyler has been postponed until after the November HRA meeting as the HRA has to approve one more document per Anoka County requirements. Housing & Redevelopment Authority Minutes October 21, 2003 Page 7 of 7 Conflict with November 18th meeting at parkview Villa Streetar stated there is a conflict with having the November 18th HRA meeting at Parkview Villa as a Public Hearing has been t~ublished per HUD requirements in the newspaper for the PHA plan at 7p.m. at City Hall. Motion by Ericson, second by Williams, to conduct a special meeting of the HRA on November 18th, 2003 at Parkview Villa immediately following the 7:00 p.m. Public Heating meeting at City Hall. All ayes. Motion Carried. Barnes stated on behalf of Crest View Corporation arrd its staff, it has been a privilege to work with staff and that when they exit the administration of Parkview Villa on December 31, 2003, they will exit gratefully. ADJOURNMENT Chair, Ericson adjourned the meeting at 9:47 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:LHRAMinutes 2003\I 0-21-2003