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Home My WebLink AboutApril 16, 2002CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E., Columbia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692 Visit Our Website at: www. ci. columbia-heights, mn. us HRA Commissioners: Marlaine Szurek Dennis Eckl. und Julienne Wyckoff Bobby Williams Gary L. Peterson Bruce Nawrocki HOUSING & REDEVELOPMENT AUTHORITY April 16, 2002 The following is the Agenda for the regular meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) to be held at 6:30 PM on Tuesday, April 16, 2002, in the Parkview Villa Community Room B, 965 40th Avenue N.E., Columbia Heights, Minnesota. The HRA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to participate in all HRA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request when the request is made at least 96 hours in advance. Please call the HRA Secretary at 706-3670 to make arrangements (TDD/706-3676 for deaf or hearin~ impaired only,). CALL TO ORDER/ROLL CALL PLEDGE OF ALLEGIANCE CONSENT AGENDA A. Approval of Minutes. 1. The Meeting of February 19, 2002. MOTION: Move to approve the minutes of February 19, 2002 regular meeting as presented in writing. REPORT OF MANAGEMENT COMPANY- Anita Kottsick, Housing Administrator CITIZEN FORIYM .(At this time, citizens have an opportunity to discuss with the HRA items not on the regular agenda. The citizen is requested to limit their comments to five minutes. Please note, the public may address the HRA regarding specific agenda items at the time the item is being discussed.) ITEMS FOR CONSIDERATION 1. Crest View Management Agreement One Year Extension- Randy Schumacher MOTION: Move 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 furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 2. 4607 Tyler Street Options- Mark Nagel. MOTION: Move to Approve Option # and direct staff to implement alternative. THE City OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS Of DISABILITY IN EMPLOYMENT OR THE PROVISION Of SERVICES EQUAL OPPORTUNITY EMPLOYER 3. Approve Proposal for Capital Improvement Program Engineering Services- Mark Nagel. MOTION: Move 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. 4. Approve Millar Elevator, Davis-Bacon Payment- Mark Nagel MOTION: Move 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 Modernization Project, funded with HUD CIAP dollars. ADMINISTRATIVE REPORTS Acting Deputy Executive Director- Randy Schumacher. Executive Director- Walt Fehst. Other Business 1. PHAS Interim Scoring ADJOURNMENT Cheryl Bakken, Acting Secretary H: \HRA Agenda2002\4-16-2002 HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF FEBRUARY 19, 2002 CALL TO ORDER - The Regular Meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) was called to order by Chair, Marlaine Szurek, at 6:36 p.m., February 19, 2002, in the Parkview Villa Community Room B, 965 40~h Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: Marlaine Szurek, Gary Peterson, Julienne Wyckoff, Bruce Nawrocki, and Bobby Williams Dennis Ecklund Jr. Walt Fehst, Executive Director Randy Schumacher, Acting Community Development Director Anita Kottsick, Parkview Villa Housing Administrator Shirley Barnes, CEO, Crest View Corporation Mark Nagel, Housing Assistant Cheryl Bakken, Secretary PLEDGE OF ALLEGIANCE CONSENT AGENDA Approval of Minutes Approve the Minutes of Regular Meeting of January 15, 2002. MOTION by Williams, second by Wyckoff, to approve the minutes from January 15, 2002, regular meeting as presented in writing. All ayes. Motion Carried. REPORT OF MANAGEMENT COMPANY- Anita Kottsick, Housing Administrator One of the North apartments heating system required a new vibration valve due to a leak. This required the system to be drained below the fourth floor, refilled, and to bleed the air line from the expansion tank before the system was brought back up. Three apartments in the South building required heating zone valves replaced. Staff has been worla'ng on solving a loud noise problem residents have reported. An outside service was brought in several times, and staff thought they had the problem solved, but it kept coming back. Then on February 18th the problem was solved as the noise was coming from a heating register in one apartment. Parkview Villa North had a physical inspection by HUD on February 14th including 21 apartments, all storage areas, all mechanical areas, and all common areas. There were three Health and Safety Hazards found They consisted of a missing cover off an electrical box in the air exchange room, a missing cover plate on the inside of a timer box, and a missing outlet cover in the trash room. All three were corrected within 24 hours and the documents faxed over to the local HUD field office the same day. Kottsick will advise the Board when she receives the final report. Housing & Redevelopment Authority Minutes February 19, 2002 Page 2 of 5 ITEMS FOR CONSIDERATION Adopt Resolution 2002-03, Amending and Restating the Bylaws Schumacher indicated the HtL4 Board adopted a Resolution accepting the EDA transferring the control, authority and operation of all housing program and projects from the Columbia Heights EDA to the HtL4, as well as all real property and contracts at their ~Tanuary, ?002 meeting. At that time, staff was directed to have Steve Bubul, of Kennedy and Graven, Chartered review and revise, the current HR~ Bylaws. Bubul has submitted a draft of the Bylaws for approval by the Board. On page 3, Section 1, under meetings, the Board needs to determine a date and time for future meetings of the HtL4. Szurek asked if it was necessary to hold meetings every month. Schumacher indicated that in the past the meetings have been on an as needed basis. Shirley Barnes indicated that even if the HRA doesn't hold a meeting each month, per their contract with the City, they would still provide a monthly management report to the Board. MOTION by Peterson, second by Williams, to hold the HRA meetings on a quarterly basis at 6:30 p.m., on the third Tuesday in the months of January, April, July, and October at Parkview Villa with the EDA meeting to follow. All ayes. Motion Carried. MOTION by Wyckoff, second by Williams, to Adopt Resolution 2002-03, a Resolution to Amend, and Restate the Bylaws of the Housing and Redevelopment Authority (HRA) of Columbia Heights, Minnesota. All ayes. Motion Carried. Analysis of 4607 Tyler Street On October 16, 2001, staff was given direction to review the option for the HRA owned, 4-plex at 4607 Tyler Street NE to determine whether or not the ownership of the property remained a good financial investment. Nagel found the following problems with the current financial proforma: 1) the total development cost turned out to be $166,395, or $41,600 per unit, which was 25% greater than the $31,000 budgeted; 2) the rents were scheduled to begin at $550 per month, $40 less than the Section 8 FMR for 2 BR units in 1995. The HIM changed the policy to no more than 30°,4 of a senior citizen's Household income with a minimum of $35O per month and a maximum of $55O per month in September of 1995 without changing the proforma; 3) as a result, the rents have seldom exceeded $350 per month; and 4) because of the renovations, the units weren't rented out until May of 1996. The proforma includes 18 months of revenues that were not received and inaccurate accounting of the expenses. The financial results differ substantially from the original financial proforma: 1) there is nearly $25,000 in rent and laundry revenue that was lost because the units weren't rented out until 18 months afterwards; 2) the original proforma did not build in funds for capital improvements; 3) the total development cost was 25°/60 higher than anticipated and was never changed to reflect a higher payback of funds to the HIM reserve account; and 4) the rents have remained at $350 per month, or about 50% of what the financial proforma called for when the building was purchased. While expenses have risen, revenues have not. Therefore, the HIM has lost money on the property. Nagel presented the following options: O rents could be raised to $525/mo., which would provide enough revenue to cover expenses and build a small reserve for improvements; 2)forgive the loan from its reserve account, so rents would need to be raised by $175; 3) sell the 4-plex for its appraised value of $165, 000, which would require the HRA to payback the entire $40,000 of the HOME grant Housing & Redevelopment Authority Minutes February 19, 2002 Page 3 of 5 and $36,395 of CDBG funds; and 4) have the tenants pay more of the expenses like payingfor all of the utilities except for the gas. Fehst indicated the $33,000 in CDBG funds could be reallocated by request through Anoka County. Nawrocki asked how many bedrooms the units have and are they subsidized. Nagel stated they are two bedroom units and are not subsidized. Nawrocki felt that if they aren't subsidized units, the Board should bring the rent up to the market rate. Williams questioned, if it was possible to transfer the four tenants to Parkview Villa, if the Board chose to sell the property. Kottsick indicated that wouldn't be possible as the age requirement for Tyler is 55+ and Parkview Villa's is 62+. She also indicated she uses the same rental agreement for Tyler as she does for Parkview. Wyckoff asked if the Board sold the property to an organization like ACCAP, would we have to return the CDBG funds. Nagel felt that this would be a possibility and he could check into it. Szurek requested Nagel research the relocation costs, possible sale to ACCAP issues, and any other options of selling the property for a future meeting. Approve Proposal for Lawn Treatment at Parkview Villa and 4607 Tyler Kottsick indicated in the past year, Parkview Villa and 4607 Tyler Street lawn treatment has been performed by TruGreen Chemlawn, which expires in March. Staff requested bids from several outside contractors and received proposals from three. Davey Tree & Lawn Care bid $972, Green Stuff Lawn Treatments bid $792.36 and TruGreen Chemlawn bid $520. Staff recommended Board approval of the contract with TruGreen Chemlawn for another year. MOTION by Peterson, second by Williams, to Approve the Contract for Lawn Treatment to TruGreen ChemLawn; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Approve Proposal for Surge Protectors for Parkview Villa Kottsick indicated staff reviewed the need for surge protectors at Parkview Villa after last summer's power surges. The EDA directed staff to seek bids for the necessary protectors. Kottsick presented bids for two plans. Plan one included surge protection for circuIating pumps (south bldg), surge protection for fire panel, telephone system, front entry door, and security camera/proximity reader at the panel, circulating pumps (north boilers) and the glycol pump (north bldg). Plan two included all of the above items, but instead of covering just the south boilers, it would add protection at the circuit panel to provide protection for several other pieces of equipment like air conditioning units, parking lot lights and garage doors. She recommended approval of the proposal from Ben Franklin Electric, Plan 2 with funding of $1999 from the HUD Capital Fund, $1,301from the PVV North operating funds, and $1000 from the PVV South operating fund. Schumacher recommended the Board change the motion to read that the total cost of Plan 2 be divided at one third for each account to balance out the deductions. Fehst agreed with Schumacher. Housing & Redevelopment Authority Minutes February 19, 2002 Page 4 of 5 Nawrocki questioned when bidding out a project, if we aren't required to use the lowest, qualified bidder, if it meets the requirements of the bid and if so, why isn't Mid-Northern Electric staffs recommendation. Schumacher indicated that is the proper procedure to be followed. Kottsick indicated she chose Franklin Electric because staff has experienced some problems with the service received in the last year from Mid-Northern. MOTION by Peterson, second by Williams, move to approve Plan 2 from Mid-Northern for Surge Protection, with the understanding that Kottsick talk to Mid-Northern and come up with a satisfactory agreement to perform the work with funding at one third from the HUD Capital Fund, Parkview Villa North and South Operating Budget; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Adopt Resolution 2002-04, Approving the PHAS Management Operations Certification Kottsick indicated that each year a Resolution adopted by the Board is required for the Public Housing Assessment System (PHAS) Management Operations Certification. Staff has prepared a drafi for Board approval at this time. After the form was printed, Kottsick noticed two corrections that need to be made prior to submission to HUD. The ftrst is on page 3, Component 2, All600 which should be 1 instead of 72, and A 11700 should be zero instead of 28. Szurek requested Bakken make the necessary changes to the form prior to submittal to HUD. MOTION by Peterson, second by Williams, to adopt Resolution 2002-04, Being a Resolution of the Columbia Heights Housing and Redevelopment Authority confirming approval of the Public Housing Assessment System (PHAS) Management Operations Certification; and furthermore, to direct the Executive Director to forward same to the U.S. Department of Housing and Urban Development. All ayes. Motion Carried. ADMINISTRATIVE REPORTS Parkview Villa Management Contract Renewal Schumacher reported that the final year of the Management Contract with Crest View Corporation expires in June. Staff is asking at this time, for direction from the Board, whether or not they would like staff to negotiate an additional agreement with Crest View Corporation or go out for bids for the Management Contract. Schumacher also indicated Kottsick will be moving to the new Crest View Senior Building on 42~d and Central sometime this fall. Szurek suggested the contract start at the first of each year, instead of in June. Peterson asked Barnes if Crest View has a candidate in mind for Kottsick's position and what is the possibility of Crest View extending the management contract. Barnes stated that Kottsick will be available to train in the new administrator, they do have a couple of candidates in mind. She also felt an extension of the contract would be feasible with only salary increases reflected Renie SuJka, Apt. 104, asked for clarification of the rumor of the Parkview Villa building being sold. Fehst explained that one of the 2002 Goals for the Community Development Department/EDA/City Council is to look into the status of Parkview Villa and that there hasn't been any decisions made, at this time, to sell any of the Parkview buildings. Fehst also stated this item is on the EDA agenda for discussion and involves the South building only. Housing & Redevelopment Authority Minutes February 19, 2002 Page 5 of 5 MOTION by Nawrocki directing staff to prepare a Request for Proposal (RFP) for Management Services for Parkview Villa North and South. Motion Failed for Lack of a Second. MOTION by Williams, second by Wyckoff, directing staff to negotiate an agreement with Crest View Corporation for a one year extension of the Management Contract, to give the EDA a chance to discuss future options. Upon Vote: Peterson- Aye, Williams- Aye, Nawrocki- Nay, Wyckoff- Aye, Szurek- Aye. Motion Carried. Nawrocki felt that with the management change coming in the future, that bids should be processed. ADJOURNMENT Chair, Marlaine Szurek, adjourned the meeting at 8:10 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:~IRAMinutes 2002~2-19-2002 Parkview Vii Housing Complex 965 N.E. 40th Avenue, Columbia Heights, MN 55421 DATE: APRIL 9, 2002 TO: RANDY SCHUMACHER, ACTING COMMUNITY DEV. DIRECTOR SHIRLEY BARNES, CHIEF EXECUTIVE OFFICER; CREST VIEW COMMISSIONERS; COLUMBIA HEIGHTS HRA BOARD OF DIRECTORS; CREST VIEW FROM: ANITA KOTTSlCK, HOUSING ADMINISTRATOR RE: MARCH/APRIL MANAGEMENT REPORT FOR PARKVIEW VILLA & 4607 TYLER ]=ax (763) 788-3978 PHYSICAL PLANT: Kou-Chung King, General Enginee~ for HUD Real Estate Assessment Center was out on April 9 to verify that we had corrected our Exigent Health and Fire Safety Hazards as was stated on the certification of'repairs form that I had faxed to HUD following our physical inspection. Parkview Villa and 4607 Tyler had their annual Fire Department inspection on March 12, 2002. No deficiencies were found in either building. The Fire Department did advise that we upgrade our waste disposal cans to a fire proof can in all common areas. Staff is in the process of looking at prices from different vendors and then will upgrade to fire proof trash cans Mid Northern Electric installed the surge protection 4/9/02. A resident fell outside the middle entrance of the building. The resident is okay and an incident report was filed. The sidewalk is raised about a half inch. Staff sprayed this area with paint will need to assess sidewalk as the weather gets warmer to see what kind of repairs are necessary in this area. OCCUPANCY: NORTH BUILDING: APT # VACANCY DATE 207 3/31/02 SOUTH BUILDING: APT# VACANCY DATE 318 3/31/02 NAME Margaret Cook MOVE-IN DATE 3/25/02 NAME MOVE-IN DATE Dorothy Larson (internal move) 4/15/02 1 resident in need of increased services, 1 resident relocation Owned by the EDA of the City of Columbia Heights Managed by Crest View Management Services Equal Housing Opportunity Agency 1~' Waiting list totals are as follows: Parkview Villa North 29 CH Residents 43 Non-residents 4607 Tyler 3 CH Residents 6 Non-residents Parkview Villa South 33 CH Residents 12 Non-residents MISC: For informational purposes the Parkview Villa calendar is attached and Administrator's monthly update to residents. PARKVIEW VILLA UPDATE April 2002 Hi, everyone! Spring is officially here even if it does not feel like it. I have seen several robins at my house so warmer weather must be conting! · RESIDENT COUNCIL NEWS The next Resident Council meeting will be held on Monday, April 8th, at 7:00pm in Community Room B. This month Karen Moeller, Columbia Heights Senior Activities Coordinator, will be a guest speaker. ALL RESIDENTS ARE WELCOME!! HOUSING AND REDEVELOPMENT AUTHORITY · The next HRA meeting will be held Tuesday, April 16, 6:30pm in Community Room B immediately followed by the EDA meeting. The HRA will now have planned meetings on a quarterly basis. All those interested are welcome to come. CERTIFICATE OF RENT PAID Jim Kordiak, County Commissioner and staff will be here April 16, 2002 from 1:30-3:30pm to help complete your CRP. There is a sign up sheet in the office. You will need to bring your 2001 income information or your Federal 1040 and your Certificate of Rent Paid (which is the yellow form you received from the office). MOVIES If anyone has appropriate movies to share please contact Pat Bush, caretaker. We need new movies to show 2 times a month. EXERCISE GROUP I have removed the exercise group from the calendar. I am looking for a temporary leader for the group to fill in until Diann Powell is able to return. Anyone interested please contact Anita for details. LAUNDRY ROOM To meet everyone's need.s, please use only 2 washers and 2 dryers at one time. Also everyone should be cleaning up after themselves. Remember to clean the lint filters after each use and do not overload thc machines. If you overload the machines the clothes do not come clean and they do not dry properly. Also this is very hard on the machines. APPLICANT'.S INITIAL PAPERWORK When I have a qualified applicant a6cept a vacant apartment I then have 4 separate forms that begin the process of verifying their background information. The first one is a release form ~o check their criminal background. I send this form to the Columbia Heights Police Department and they provide me with information about any record of crime or disqualifying crime. The second form is the Landlord Verification form. This form is for the current landlord and verifies that they are a tenant at that address and asks some questions about what kind of renter they have been. In the case of an applicant that has been in their own home for years I note this information in their file. The third form is the Declaration of Citizenship form which determines the status of their citizenship. The last form is the Release of Information/Privacy Act Notice. After these forms are .complete the applicant and I go over all the financial information I will need to verify their income and medical allowances. Next month I will talk about what I go over with the tenant when the lease is signed to orientate them to the building and the house rules. COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of: April 16, 2002 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: ~ DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Crest View Management Agreement One BY: Randy Schumacher BY: Year Extension DATE: April 12, 2002 BACKGROUND: At the February 19, 2002 HRA Commissioner meeting, staff was directed to negotiate a one year extension of the present Management Contract with Crest View Corporation for management services of its rental facilities. The following information summarizes the fiscal adjustment for the proposed one year Management Contract: Present Per unit/per month charge Parkview Villa North & South $ 4.50 Annual Mileage $ 2,400 Annual Wages & Benefits $150,802 Totals $153,202 Proposed No Change $ 1,080 $155,277 $156,357 The proposed new 2002/2003 Management Contract represents a $3,155 increase (2% over present contract). RECOMMENDATION: Staff recommends I-IRA Board approval of the motion listed below, which authorizes the one-year extension of Management and Maintenance Services Agreement to June of 2003. RECOMMENDED MOTION: Move 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 furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachments HRA ACTION: HRA Consent Form2002\Crest View One Year Ext. Cmst View / 4444 RESERVOIR BLVD NE COLUMBIA HEIGHTS, 'MN 55421 763.78Z1611 FAX 782.0857 WWW. CRESTVIEWCARES.ORG April 1, 2002 Randy Schumacher City of Columbia Heightg - 590 z~0th Ave~nue Northeast Columbia Heights, 55421 Dear Mr. SChmnacher: This letter is written pursuant to the continuation of our prbposal to continue management. services for Parkview Villa. Crest View Management Services is not i:equ, esting an increase in our actual management fee, but rather only for the actual costs related to providi.ng staffto Parkview Villa. The wages and benefits of the staff will increase, as their respective' wages and benefits increase. Theestimated increased funding is as follows: Mileage $1,080 Wages and benefits $155~277, T(~tal $156,357 As'yoh can tell bycompari. 'ng it with last year's proposal, we have done a very good job at containing expenses. One of the areas that we beg,an, after the renewal of last ybar's contract, was the part time-caretakers. This system is working well for Parkview Villa. We will continue to review systems and innovative approaches to best serve the City of Columbia Heights. It isa pleasure to work with you and we'look forward to another success, fifl year together... If you have any questions, please feel free. to contact me at 763-782-1645. Thank you. CREST VIEW IS AN EQUAL OPPORTUNITY EMPLOYER Management and Maintenance Services Agreement Amendment by and between Crest View Corporation and the Columbia Heights Housing and Redevelopment Authority This amendment, (this Management and Maintenance Services Agreement Amendment hereinafter referred to as "Amendment"), effective on the day of 2002, by and between the Crest View Corporation, (hereinafter referred to as "Contractor"), located at 4444 Reservoir Blvd. N.E. Columbia Heights, MN and the Columbia Heights Housing and Redevelopment Authority (hereinafter referred to as "Owner"), located at 590 40th Avenue NE, Columbia Heights, MN 55421; WITNESSETH; WHEREAS, Contractor has entered into a Management and Maintenance Services Agreement (hereinafter referred to as "Agreement") dated June 1, 1997 to provide management and administrative services for Parkview Villa North and South, located at 965 40th Avenue NE, and 4607 Tyler Street N.E., Columbia Heights, MN 55421, (hereinafter the "Project"), and WHEREAS, the Contractor and Owner desire to enter into this Amendment for the purpose of providing the option to renew this Agreement annually for a total period of one year effective the first day of June, 2002. NOW THEREFORE, it is agreed, the Owner hereby contracts for and Contractor hereby agrees to furnish the services provided for under the provisions of the Management and Maintenance Services Agreement and hereby agree to revise the terms and conditions of said Agreement based on their proposal dated April 1, 2002. The Management and Maintenance Services Agreement is hereby amended, effective the day of 2002 as authorized in writing by the signatures of the parties hereto. CREST VIEW CORPORATION By Shirley Barnes Its: Date COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY By Marlaine Szurek Its: Date Chair By: Walter R. Fehst Its: Date Executive Director HSParkview Villa2002~Mmgt. Agreement 02-03 COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of: April 16, 2002 AGENDA SECTION: Items for Consideration NO: o~ ITEM: 4607 Tyler Street Options ORIGINATING DEPARTMENT: HRA BY: Mark Nagel DATE: April 10, 2002 EXECUTIVE DIRECTOR APPROVAL BY: BACKGROUND: At the February 19, 2002, the HRA Board discussed several possible o >tions at length (see attachment C). No decisions among the five options were made. The Board directed staff to review the repayment agreements for HOME and CDBG funds used in the rehab of the 4-plex, check with non-profit housing organizations on purchasing the 4-plex, and look at any other options that would keep the rent increases at a minimum while reaching "breakeven" on the budget. The following options are listed below based on Attachment A: 1. Make no changes to the status quo and continue to lose increasing amounts of money each year with no payback to the HRA Reserve Account or CIP Reserve for upcoming costly maintenance. However, the tenants would be happy because there would be no rent increase. 2. Sell the 4-plex for its appraised value of approximately $165,600 and then would be required to payback the entire $40,000 of HOME funds and about $36,395 of CDBG funds depending upon what the 4-plex was sold for on the market, which would leave about $90,000 that could be used to payback the Reserve Account. This option would mean that seniors currently residing at the 4-plex, would probably see large rent increases. 3. There is interest from non-profit housing organizations to purchase the 4-plex, but all of them would want it at a lower price, because they would also be subject to the same HOME and CDBG program requirements. They would keep the rents lower than a for-profit company, but increases would still be necessary. There would be a payback to the Reserve Account, but the amount is unknown until a Purchase Agreement is negotiated. 4..The HRA signed agreements with Anoka County for receipt of the HOME and CDBG funds on May 21, 1999, explaining the units would be for low-income tenants through May 21, 2009. At that point, the restrictions would be removed and the HRA would not have to pay back the $40,000 of HOME, but the $36,395 of CDBG funds would need to be paid back at a percentage of the total sale amount (see Attachment B). In order to breakeven, pay back the $5,000/year "loan" from the HRA Reserve Account, and set aside $2,000/year for more expensive capital improvements, rents would need to be raised a minimum of $60/month with a 3 to 5% increase each succeeding year until the 4-plex were sold in 2009. At that time, the HRA could sell the 4-plex to anyone with no restrictions, pay back the HRA Reserve Account, and would have $90,000 left, for other projects. All of these options have their pros and cons, but it is clear that the HRA cannot continue to lose money on the operation of the 4-plex, particularly since the deficit will only get worse in the future. This must be balanced by the financial concerns of the senior residents of the 4-plex, which would have a hard time finding an additional $60 a month, which could be increased gradually over 3 years for example, much less another approximately $500 a month if the 4-plex were sold and the rents were market rate. If the HRA can agree on one of the above 4 options, a combination of them, or a new one suggested at the meeting, the staff can move forward and implement the chosen alternative. RECOMMENDATION: Staff recommends the HRA Board select one of the four options outlined above for implementation by the Housing Assistant. RECOMMENDED MOTION: Move to approve Option # __ and direct staff to implement alternative. HRA ACTION: ~: HRA consent Form2002 2002 Financial Proforma 4607 Tyler Street N.E. ATTACHMENT A 2002 Revenues Rental Income (5% Vacancy) Laundry Income TOTAL Budgeted Revenue $15,960 $ 600 $16,560 2001 Expenses Property Management Personal Services Other Services Supplies Mileage TOTAL Actual Expenses PAYBACK TO HRA RESERVE ACCT. 2002 CIP SET-ASIDE TOTAL Planned Expenses Net Income $ 4,597 $ 351 $ 5,037 $ 344 $ 343 $10,672 $ 5,000 $ 2,000 $17,692 ($1,112) H:~Parkview Villa2002~Proforma for 4607 Tyler ATTACHMENT B Sue Speakman, HOME Coordinator Anoka County March 27, 2002 RE: 4607 Tyler Street I spoke to Sue Speakman by phone today regarding the payback of $40,000 in HOME funds used in the rehab of the building. She said that the HRA would have a couple of options: (1) payback of the money, because the agreement was signed on May 21, 1999 - it will mn out in 10 years, or about 7 years from now, and we won't have to pay any of it back and (2) sell it to profit or non-profit that would agree to the income and rental guidelines imposed by the HOME program - current maximum rent for a 2-BR is $862/month, so it shouldn't be a problem. Angela Stamper, Financial Analyst Anoka County April 1, 2002 RE: 4607 Tyler Street I spoke to Angela Stamper by phone today regarding the payback of $36,395 in CDBG funds used in the rehab of the building. She said that the HRA would have a couple of options: (1) payback of the money, but it would have to be at percentage of the increased value after the 4-plex was sold - the $36,395 was 22% of the total $166,395 cost, so the payback would be 22% of whatever the building was sold for by the HRA or (2) sell it to a non-profit that would agree to comply with the guidelines imposed by the HOME program, as above. Unlike the HOME program, though, there is no time limit, so if the HRA EVER sold it to someone that did not want to keep the rents within the guidelines, the payback clause above would be triggered. ATTACHMENT C COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (t-IP~) AGENDA SECTION: Items for Consideration NO: ITEM: Analysis of 4607 Tyler Street BACKGROUND: ORIGINATING DEPARTMENT: BY: Mark Nagel Meeting off February 19, 2002 EXECUTIVE DIRECTOR APPROVAL BY: DATE: February 19, 2002 At the HRA Board of Commissioners meeting of October 16, 2001, staff was given direction to review the options for the HRA owned, 4-plex at 4607 Tyler Street N.E. The purpose of the review was to determine whether or not the ownership of the property by the HRA remained a good financial investment. The 4-plex at 4607 Tyler Street N.E., which contains 4-2BR units plus outside parking spaces for each of the units, was purchased by the HRA on February 24, 1995 for $80,000. The original estimate for rehabilitation of the 4-plex was $40,000 with another $4,000 budgeted for legal and administrative expensesl It was based on this total development cost of $124,000 that a financial proforma (attached), was given to the HRA Board, as financial reasoning for making the purchase. At the time, a positive cashflow was anticipated with a payback to the I-tRA reserve fund of the $80,000, plus about 10% interest. Financial Analysis There are a number of problems with the current f'mancial proforma for the 4~plex: (1) the total development cost turned out to be $166,395, or $41,600 per unit, which was 25% greater than the $31,000 budgeted in the proforma; (2) the rents were scheduled to begin at $550/mo. - $40 less than the Section 8 FMR for 2 BR units in 1995 - but the HRA changed the policy to no more than 30% ora senior citizen's Household income with a minimum of $350/mo. and a maximum of $550/mo. in September, 1995, without changing the proforma; (3) as a result of that policy, the rents for any of the 4 units have seldom exceeded $350/mo. since they began to be occupied in May, 1996 - rents in the proforma for 2002 are anticipated to be $678; and (4) because of the length to complete the renovations, rentup of the units did not start until May, 1996 - the units were unoccupied most of that time - which means that the proforma includes 18 months of revenues that were not received and inaccurate accounting of the expenses. In short, the financial proforma was based on what later proved to be erroneous assumptions and has not been updated since it was originally presented to the HRA Board December, 1994 as the financial reason to purchase the property. The above problems have led to financial results that differ substantially with the original financial proforma. First, nearly $25,000 in rent and laundry revenue was lost because the rentup of the 4-plex did not occur until 18 months at~er the building was purchased. Second, the original proforma did not build in funds for "capital improvements" to the building; though, if the rents had been raised, as planned, there would have been enough cashflow to take care of major improvements. Third, the total development cost was 25% higher than anticipated when the proforma was presented, but was never changed to reflect a higher payback of funds to the HRA Reserve account. Finally, and most importantly, the rents have remained at $350/mo/unit, which means that revenues are at about 50% of what the financial proforma called for when the building was purchased. To sum, while expenses have risen, revenues from the 4-plex have remained at an average of $16,500 over the past 6.5 years, which means that the HRA has lost money on this property since 2000 (see attached adjusted cashflow statement). In addition, none of the projected approximately $5,000/year payback to the HRA Reserve account has been made and there is no fund balance to pay for any improvements above normal "wear and tear" on the 4-plex. Options Clearly, this is not a good financial position to be in, so, what are the options available to the HRA Board of Commissioners? 1. The rents could be raised to $525/mo., which would provide enough rent revenue to cover expenses, pay back the HRA Reserve account, and build a small reserve for improvements. The main drawback is whether or not tenants could pay that much of an increase at once unless it was "stepped in" over time. 2. The HRA could forgive the loan from its reserve account, so rents would not need to be raised by $175. An additional $75/mo. should work to get the proforma back "on track". 3. The HRA could sell the 4-plex for at least its appraised value of $165,600, but would be required to payback the entire $40,000 of the HOME grant and likely the $36,395 of CDBG funds used to rehab the 4-plex; although, this may be negotiable with Anoka County. Any remaining amount from the sale could be placed back in the HRA Reserve account to repay the "loan" from that account used to purchase the 4-plex. 4. The I-IRA could have the tenants pay more of the expenses, rather than raise the rent substantially - for example, tenants could pay all utilities except for gas, which would be enough to bring the operating budget back into balance. If the PILOT payment were directed to help pay back the "loan" or establish an improvement fund, as well, rents could be increased at the 3% per year as the financial proforma originally projected. 5. Status quo. Continue to lose more money each year, but the low-inCome tenants will be happy and the rehab loans will not need to be paid back. All of these options have their pros and cons - if the building is sold, then the HRA could recover its investment, but the Iow-income seniors would likely face increased rents from the new owners and, at the other end of the continuum, the HRA cannot continue to lose money on its investment. If the Commissioners can agree on one of the five options presented at the meeting, staff can move forward and implement the chosen alternative. Attachment HRA ACTION: H:\HRA consent Form2002\4607 Tyler Proforma L~r COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of: April 16, 2002 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: ,,~ DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Approve Proposal for Capital BY: Mark Nagel BY: Improvement Program Engineering Services DATE: April 1, 2002 BACKGROUND: Now that the 2001 PHA Annual Plan has been approved and the 2002 PHA Annual Plan is being reviewed by HUD, preparation of the 2003 Annual PHA Plan should begin, as it is due in mid-October 2002. One of the fundamental parts of the PHA Annual Plan is a comprehensive Capital Improvement Plan. Parkview Villa south CIP has not been reviewed by a professional engineer in a decade, while Parkview Villa north has never had a CIP prepared since it was constructed. Given the age of the 2 buildings, it is time for a comprehensive engineering inspection with the data forming the basis of an up-to-date CIP for the next 20 years, which will establish future cost estimates more accurately projected making it easier to complete the PHA Annual Plan. The need for the engineering inspection and application to new CIP's for Parkview Villa North and South was thoroughly discussed at the January 5~h Goals Session. It was subsequently approved for implementation as the first step in reviewing options for Parkview Villa in February. Based on this action, engineering firms were contacted for a written proposal that would meet the needs of the HRA. Despite the fact that most firms are gearing up for the busy summer season, two engineering companies submitted the attached proposals, Sierra Constmction/RLK Engineering and TKDA. Both firms responded to a letter of inquiry and were present for the "walk-through" of both Parkview Villa North and South that outlined the specific needs for the CIP. The closeness of the two bids reflects the fact that both firms knew what was needed by the HRA, but the bid from TKDA was lower by $800. The firm's references check out and they are not on the HUD list for poor work. If approved, the next step will be developing a Letter of Agreement confirming costs, timeline, and scope of services; then, work will begin. It is not anticipated the Letter of Agreement will be brought back to the HRA, as it simply puts the Letter of Interest in a more formal document, but it will be reviewed by the City Attorney. As cost will be shared by both the PHA budget and the Parkview Villa South budget, the firm will keep track of their hourly costs spent on each of the CIP's for proper allocation of costs. I would expect that the Parkview Villa South CIP will make up the majority of the expense, since TKDA would have to begin from zero. RECOMMENDATION: Staff recommends the EDA Board approve the attached bid from TKDA for an amount not to exceed $6,700 for the completion of comprehensive, 20 year, Capital Improvement Plans for both Parkview Villa North and South. RECOMMENDED MOTION: Move to approve the a 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. HRA ACTION: HRA consent Form2002\Proposals for Capital Improvement Plan Study TKDA ENGINEERS · ARCHITECTS · PLANNERS March 18, 2002 1500 PIPER JAFFRAY PLAZA 444 CEDAR STREET SAINT PAUL, MINNESOTA 55101-2140 PHONE: 651/292-4400 FAX: 651/292.0083 Mr. Mark Nagel City of Columbia Heights 590 - 40th Avenue NE Columbia Heights, Minnesota 55421 Re: Letter of Interest Architectural Evaluation of Housing Units for Assistance in Preparation of PHA Capital Costs Dear Mr. Nagel: Thank you for considering TKDA for assisting you with the preparation of cost estimates associated with two of the City's Public Housing complexes of 100 units and 45 units. We understand you have previously prepared some cost estimates for the 100 unit complex and desire to have your costs verified. The 45 unit complex has not been previously evaluated and these costs will need to be determined. We are interested in providing these services to the City of Columbia Heights, and while we do not have direct experience in preparation of your. PHA Performance/Evaluation Report, we have accomplished numerous facility evaluations and cost estimates. TKDA is a full service firm including Architectural, Landscape Architecture, Interior Design, Structural, Mechanical, and Electrical engineering in-house. This provides the recourses necessary for most building evaluations and estimates. We are confident we can assist you in evaluating costs associated with deferred maintenance and system life cycles for your apartment complexes. Our lead person will be Tim Franzen, AIA and licensed architect with 25 years experience. Mr. Franzen has experience in preparation of reports and evaluation based on walk-through observations. Mr. Franzen also has a Construction Administration background that provides valuable experience in cost estimating. Mr. Franzen currently is completing design projects for an office building renovation and will be available to commence walk-through of your apartment complex approximately April 8, 2002. Some time is also budgeted for an electrical and mechanical engineer to spend one-half day on site to review their respective systems. Mr. Franzen will be in charge of the work for TKDA, will coordinate the mechanical/electrical resources, and prepare the cost documentation. We anticipate the following scope of services. Meeting with you to confirm the scope of the observations and categories of items/systems to be considered. Units to be visited, representing a cross section of apartments and their condition, will be identified. Review the documentation you have already prepared and the categories to be estimated. . - - . · An Equal Opportunity Employer Mr. Mark Nagel City of Columbia Heights March 18, 2002 Page 2 Visit the site and designated units to review the general condition of facilities to identify deferred maintenance elements and/or failed systems that require corrections. This site visit will include the architect (Mr. Franzen), an electrical representative, and a mechanical representative. o Document in a brief report our findings and prepare a cost estimate of items which require replacement or correction. This will also include a recommendation of systems that may be nearing their life expectancy and replacement should be anticipated/budgeted within the next five years. Example of the systems and elements to be reviewed are: water shutoff valves, cabinets/casework, lawn irrigation system, furniture, appliances, common area/exterior paint, window blinds, common area carpet, holding tanks, exterior windows, and water heaters. Additional items, if observed to be deficient, will be noted. 4. Meet with you to review and present our findings, cost estimate, and recommendations. We propose our compensation to be on an hourly rate for the individuals involved, plus reimbursable expenses (i.e., mileage, reproduction costs, if any), with an estimated not-to-exceed amount of $6,700. We expect the work effort could take up to three weeks to accomplish. As previously noted, we could commence work on or shortly after April 8, 2002. If this meets with your approval, TKDA will prepare a Letter Agreement for your review and execution. Thank you for the opportunity to discuss this cost estimating project with you, and for considering TKDA for these services. Please give me a call if you have any questions. (I will be back from vacation Monday, March 25, 2002.) Sincerely, Dean A. JohnsOn, A~IA Director of Architecture William Deitner, PE Vice President Building Division DA J/mas cc: John Powell, TKDA Tim Franzen, TKDA Columbia Heights Hous i ng & Redevelopment Authority Chair Date Executive' 'Di rector Date Sierra Construction 13391 Havelock Trail Apple Valley, MN $$124 Febmary22,2002 Mr. Mark Nagel City of Columbia Heights Community Developmem Departmem 590 40th Ave. N.E. Columbia Heights, MN 55421 appreciate the time you took last week to walk through the existing buildings last week This preliminary inspection was helpful to determine the time requirement for a more detailed inspection of these facilities for the purpose of establishing a capital improvement budget for the next ten years. Based on my.review of the facilities I would provide a detailed analysis of costs associated with certain repairs and/or improvements including but not necessary limited to.water shut valve replacement, cabinet, countertop, sinks and faucet replacement, backup water heater installation, lawn sprinkler system, appliance replacement, painting of all common areas and exterior of buildings, water heater replacement, blinds, carpet replacement in common areas, holding tanks, windoW replacement and any other items that may be brought up by on sight management personnel. Based on this 'information we prOpose to complete this work for the mount of Seven Thousand Five Hundred Dollars(S7,500.00). I anticipate that this analysis would take approximately 30 days to complete and would be submitted to you upon completion for review and commem. Any time involved after completion of this analysis submission to you for further clarification would be completed at no additional charge. Phone: 612-432-5149 Fax: 612-891-4758 Gpelle6156@aol.com Payment terms: $3,750.00 to be paid at the time of acceptance of this proposal with the balance of $3,750.00 to be paid within ten days after submission of the final report. If you would like me to proceed with this work please sign where indicated below and return a signed copy of this proposal along with a check in the amount of $3,750.00. Upon receipt I will schedule this work to start. If you have any questions please give me a call. Regards, Sierra Construction Company Jerry Pelletier President City of Columbia Heights BY: ITS: DATE: COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) Meeting of: April 16, 2002 AGENDA SECTION: Items for Consideratic n ORIGINATING EXECUTIVE NO: ~ DEPARTMENT: HRA DIRECTOR I APPROVAL ITEM: Approve Millar Elevator, Davis-Bacon BY: Mark Nagel BY: Payment DATE: April 10, 2002 BACKGROUND: As noted in the City's 2000 and 2001 Audit Reports, the HRA failed to comply with the Davis-Bacon Act on the Parkview Villa elevator modernization project. The Davis Bacon Act requires all laborers who work on construction contracts in excess of $2,000 be paid not less than the HUD prevailing wage rates. The contract was well over $2,000 and therefore, compliance to the act was necessary, but not done. A recommendation was brought before the HRA Board at the October 16, 2001 meeting to make restitution to the five employees for a total amount of $6,709.90, which was subsequently approved at that meeting. In February 2002, staff received the okay from HUD to make the restitution payments. Since then, staff has been working with Millar Elevator Service personnel to re-check the amounts owed to each employee. In the resolution of differences between the figures Millar Elevator Service and the $6,709.90 tabulated by staff, it was determined that a wage rate increase had been negotiated on July 5, 2000 for employees fi-om $26.745/hr to $27.635/hr. As a result, the original calculations for work done after this date for the modernization project were incorrect. When the wage increase was fully accounted for, the total amount became $7,109.47, or about $400 more. This is the agreed upon amount owed and a complete accounting is attached for the Board's information. The five employees must be paid back wages for their work with the money going directly to the employees, less the normal deductions, and both the company and the employee must sign off as having received the payments. RECOMMENDATION: Staff recommends the HRA Board make restitution of $7,109.47 with HUD CIAP funds to the five eligible, Millar Elevator Service Company employees. RECOMMENDED MOTION: Move 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 Modernization Project, funded with HUD CIAP dollars. Attachments HRA ACTION: h:\Parkview Villa2OO2\Millar elevator payment for davis bacon DAVIS BACON COMPUTATIONS Updated 4-4-2002 EMPLOYEE WAGE CALCULATION BALANCE DUE D.P. Deloye (27.635 - 19.345) x 3 = $24.87 S.E. Schultz (27.635 - 19.345) x 7 = $58.03 J.A. Dack (27.635 - 13.820) x 10.5= $145.06 P.J. Keener (26.745 - 19.990) x 2 = $13.51 " (27.635 - 19.345) x 50 = $414.50 N.E. Wenda (26.745 - 18.720) x 439 = $3,522.98 " (27.635 - 19.345) x 353.5 = $2,930.52 TOTAL WAGES DUE $7,109.47 DATE NAME HRS WORKED PAY 3-15-00 N.E. Wenda 5 $18.72 3-22-00 " 8 $18.72 4-5-00 " 24 $18.72 4-12-00 " 38 $18.72 4-12-00 P.J. Keener 2 $19.99 4-19-00 N.E. Wenda 40 $18.72 4-26-00 " 40 $18.72 5-3-00 " 39 $18.72 5-10-00 " 38 $18.72 5-24-00 " 40 $18.72 5-31-00 " 32 $18.72 6-7-00 " 32 $18.72 6-14-00 " 40 $18.72 6-21-00 " 31 $18.72 6-28-00 " 32 $18.72 7-5-00 " 24 $19.345 7-12-00 " 40 $19.345 7-19-00 " 35 $19.345 7-26-00 " 40 $19.345 8-2-00 " 40 $19.345 8-9-00 " 34 $19.345 8-16-00 " 32 $19.345 8-23-00 " 3 $19.345 8-23-00 " 38 $19.345 8-30-00 " 28.5 $19.345 9-6-00 " 26 $19.345 9-13-00 P.J. Keener 18 $19.345 9-13-00 N.E. Wenda 16 $19.345 9-20-00 P.J. Keener 6 $19.345 9-27-00 " 19 $19.345 10-4-00 " 7 $19.345 11-1-00 S.E. Schultz 4 $19.345 11-29-00 J.A. Dack 10.5 $13.82 12-20-00 D.P. Deloye 3 $19.345 H:~Parkview Villa2001 \Davis Bacon Computation-Millar Elev. nspection Summary ~ PHAS Interim Scoring Procedures ~ The U. S. Department o~rOan Unit(s) and~ystems. The new nominal Development (HUD) has implemented interim area weights for the two areas are 64 percent for changes to Public Housing Assessment System (PHAS) scoring. Under the Physical Condition Indicator, inspections will be conducted as before using the Uniform Physical Condition Standard (UPCS) software and protocol. All five inspectable areas (i.e., Site, Building Exterior, Building Systems, Dwelling Units and Common Areas) will be inspected and all observed deficiencies will be recorded in the inspection soRware. The results of the inspection will be available on the HUD- REAC physical inspection web site. Public Housing Agencies (PHAs) inspection scores will be based only on deficiencies found in Dwelling Dwelling Units and 36 percent for Building Systems - inspection scores will continue to be on a 100-point scale. PHAs will see two changes to the Inspection Summary Report that identifies the deficiencies found during the inspection. One change will be on the first page of the report, which lists the scoring summary. Possible Points, Actual Points, and Health and Safety Deduction points will be listed only for Dwelling Units and Building Systems. The other three areas of the "Scores" Table - Site, Building Exterior, and Common Areas - will be left blank. Change #1 Possible Area H & S Points Points Dedu~lon Bldg Ext · Bldg Sys 36.0 35,0 0.0 CA A Units 64.0 57.0 1.5 Site Overall 100.0 92.0 [1.5 Final Score = Area Points - H & S Deduction 90.5 I_ The areas indicated will be [] blank. You will no longer see I Possible Points, Actual Points, or the Health and Safety Deduction points in these nine fields. The second change is in the "Inspection Details" section of the report. All observed deficiencies will be listed. Possible points and deficiency deductions will be shown only for those deficiencies found in Dwelling Units and Building Systems. No possible points or defect deductions will be shown for deficiencies in Site, Building Exterior, and Common Areas. Change #2 Inspectable Itpm$: / Site Possible Points: ~ Grounds [ Erosion/Rutting Areas** Level 2 I OD Building I - Unit 3 Possible Points: 12.9 Bathroom OD Lavat°rySink- [ I Damaaed/Missina Level 3 1.3 Inspection Summary Report- 147173 inspection No: Property: Scattered Site?: PIH Project: Comments: 147173 (65030) PARK VIEW VILLA 965 40TH AVENUE NE COLUMBIA HEIGHTS, MN 55421 No MN46P 105001 inspection Date: 2/14/2002 Phone: (763) 706-3800 Fax: ()- E-Mail Address: ACC#: CA#: one unit offline=caretakers unil#/lelderly housing=lead based paint exempt #Total Buildings I 2 Units 100 Scores #Inspected 2 21 Possible Area H & S Points Points Deduction Site Bldg Ext Bldg Sys 37.0 37.0 0.0 CA Units 63.0 59.2 0.0 Final Score = Area Points - H & S Deduction I 96 c I Health and Safety Counf-~ Non-Life Threatening Site Bldg Unit Total Actual 0 I 0 1 %Inspected m 100% 21% m Projected 0 1 0 1 Life Threatening Actual 0 2 0 2 %Inspected -- 100% 21% ~ Projected 0 2 0 2 Smoke Detectors Actual 0 0 0 0 %lnspectad -- 100% 21% m Projected 0 0 0 0 Systemic Deficiencies: # with A~re;~ Item Defect Defect # Total Ordinary** None * Capital items are repairs that generally require large cash outlays. ( Items such as new roofs and new appliances ). ** Ordinary items are repairs that require smaller cash outlays. ( Items such as light fixtures, fire extinguishers, and smoke detector % of Bldas I Units with Defer Participants: Management Agent Kottsick, Anita Phone: (763) 782.1611 4444 Reservoir Av NE Crest View Corp. Fax: (763) 782-085? Columbia Heights, MN 55421 E-Mail Address: Owner Contact Schumacher, Randy Phone: (763) 706-3670 590 40th Ave NE Columbia Heights HRA Directo Fax: 0 ' Columbia Heights, MN 55421 E-Mail Address: OwnerlPHA Schumacher, Randy Phone: (763) 706-3670 590 Miller Columbia Heights PHA Fax: 0 - Columbia Heights, MN 55421 E-Mail Address: BuildinaslUnits: No NameiTvoelReason Unlnsoectab!e 1 I N park view villa I Mid/High Rise Apartments Year built # Units Address 1974 I 100 I 965 40TH AVENUE NE I COLUMBIA HEIGHTS MN 55421 Comments: one unit offiine=caretakers unit 103 1 Bedroom Occupied 203 1 Bedroom Occupied 301 1 Bedroorr Occupied 304 1 Bedroom Occupied 2118/2002 12:44 AM V 02.18.2002 Page 1 of 4 Inspection Summary Re 3ort- 147173 309 1 Bedroom Occupied 504 1 Bedroom Occupied 508 1 Bedroom Occupied 511 I Bedroom Occupied 605 1 Bedroom Occupied 606 1 Bedroom Occupied 608 1 Bedroom Occupied 610 1 Bedroom Occupied 709 1 Bedroom Occupied 712 1 Bedroom Not Occupied Vacant 803 1 Bedroom Occupied 806 1 Bedroom Occupied 811 1 Bedroom Occupied 904 1 Bedroom Occupied 905 1 Bedroom Occupied 906 1 Bedroom Occupied 909 1 Bedroom Occupied 911 1 Bedroom Occupied 2 garage 1986 0 965 40TH AVENUE NE Common Building garage COLUMBIA HEIGHTS MN 55421 Inspectable Items: Insnected Item NO/OD ObservatJ;~l Severity Location/Comments Lead Based Paint Inspection RepeaI NO Doors OD Damaged Hardware/Locks** Level 3 Location: rear boiler entry; Comments: en~ door does not function as it should due to damaged hadwara Foundations OD Cracks/Gaps'* Level 2 Roofs OD Missing/Damaged Components from Level 2 Downspout/Gutter*° Walls OD Missing/Damaged Caulking/Mortar Level 2 Windows OD Damaged/Missing Screens** Level 1 Closet/Utility/Mechanical OD Electrical - Missing Covers (LT) Level 3 Location: air exchanger, 2 timer boxes in shop and boiler room; Comments: A cover is missing, and you see exposed electrical connections. Outiets/Switches/Cover Plates - Level 3 Location: trash room; Comments: A cover Missing/Broken (LT) plate is broken, resulting in exposed wir Halls/Corridors/Stair~ OD Doors - Damaged Surface - Level 3 Location: 1st floor hall closet; Comments: Holes/Paint/Rusting/Glass** one door has a hole larger than 1 inch in diameter, due to deiamination Outlets/Switches/Cover Plates - Level 1 Missing/Broken 2/1812002 12:44 AM V 02.18.2002 Page 2 of 4 Inspection Summary Report- 147173 B~u! ding ~1 ~ Cornmon ~eas Halls/Corridors/Stairs OD Stairs - Broken/Missing Hand Railing (NLT) Level 3 Location: 9th floor stairwell,3rd and 4Ih floor hall; Comments: handrail in hallway is loose. Windows - Inoperable/Not Lockable** Level 1 Laundr~ Room OD Ceiling - Peeling/Needs Paint** Level 1 Restrooms/Pool Structures OD Lavatory Sink - Damaged/Missing** Level 1 Walls - Damaged*' Level 2 Walls - Peeling/Needs Paint** Level 1 Storage OD Floors - Floor Covering Damage** Level 2 Walls - Water Stains/Water Level 2 · Damage/Mold/Mildew** Doors OD Kitchen OD Range Hood/Exhaust Fans - Excessive Level 1 0.1 Grease/Inoperable uoors OD I Damaged Frames/Threshold/Lintels/Trim** Level 2 ............................ ~0'1'- ' Bathroom OD Lavatory Sink - Damaged/Missing*' Level 1 0.3 Kitchen OD Plumbing - Leaking FaucetJPipes Level 1 0.3 Refrigerator- M!ssing/Damaged/Inoperable Level 1 0.3 Kitchen OD Refrigerator - Missing/Damaged/Inoperable Level 1 0.3 Outlets/Switches OD Missing/Broken Cover Plates Level I 0.1 ........ ' ' ,~,,,,',, , Doors OD Damaged Frames/Threshold/Lintels/Trim** Level 2 0.1 Kitchen OD Plumbing - Leaking FaucetJPipes Level 1 0.3 Ceiling OD Water Stains/Water Damage/Mold/Mildew** Level 1 <0.05 Walls OD Damaged** Level 2 0.1 Water Stains/Water Damage/Mold/Mildew** Level 1 <0.05 Doors OD ', , Outlets/Switches OD Missing/Broken Cover Plates Level 1 0.1 Windows OD Inoperable/Not Lockable** Level 1 0.1 Ceiling OD Peeling/Needs Paint** Level 1 <0.05 Kitchen OD Refrigerator- Missing/Damaged/Inoperable Level 1 0.3 Sink - Damaged/Missing** Level 1 0.6 Walls OD Damaged** Level 2 0.1 V02.18.2002 Page 3 of 4 Inspection Summary Report- 147173 Ceiling OD Water Stains~ater Damag~Mol~Mildew-- Level 1 <0.05 D~rs OD Damaged Frame~hreshol~Lintel~rim** Level 2 0.1 Kitchen OD Range Ho~/Exhaust Fans - ~ce~ive Level 1 0.1 Grease/Inoperable Walls OD Peelin~Ne~s Paint** Level 1 <0.05 Windows OD Inoperabl~Not Lockable** Level 1 0.1 Kitchen OD Plumbing - Leaking Fauce~Pipes Level 1I 0 3 NOTE: Score for any given building or unit can not be negative (if deductions are greater than possible points, the score is set to zero) 2/18/2002 12:44 AM VOZ 18.2002 Page 4 of 4 CERTIFICATION OF REPAIRS FOR EXIGENT HEALTH AND FIRE SAFETY HAZARDS SEND OR FAX SIGNED COPY TO LOCAL PIH OFFICE PropertylD~. b503(...), Property Phone: °7~';~ - ZIP: .J~' 5 ~/2 / S'-te: ~,V' Owner/PHA Phone: Observed and Noted Exigent Health and Safety Hazards (If additional space is needed, continue on a separate page) Air ~ality A - Propane/Natural Gas/Methane Gas Detected Electrical Hazards B - Exposed Wires/Open Panels C - Water Leaks On or Near Electrical Equipment Emergency Equipment/~re Exits/Flre Escapes D- Emergency/Fire Exits/Blocked/Unusable Fire Escapes E - Blocked Egxess/Ladde~ Gas/Oil Hot Water Heater/Gas/Oil HYAC F - Carbon Monoxide l-ln~nt - Gas/Oil Fitvd Unit - Mi~ning/Mi~ali~ Ch[mn_m~ Item Site or DU or CA Con'ectJve Action Take~ Date Work on:la' no Iocalion A B C D E F 4 ~ 5 6 Observed and Noted Fire Safety Hazards (If additional space is needed, continue on a separate page) Eme~-geacy Equipment/Fire Exits/Fire Escapes G - Window Security Ba~ Prevent Egress H - FL,~ Extinguishers Expired Smoke Detectors I - Miss/ng/Inoperative Site or DU a'CA Defect Type(s) I certify that to thc best of my knowledge and belief, the exigent and fh-e safety hazards noted and reported during the physical inspection described above, have been mitigated. I further acknowledge that any false, fictitious or fraudulent statement or report, or any alteration or forgery of a document, or any willful misrepresentation made to the U.S. Department of~ousing and Urban Development may result in a fmc or imprisonment or both pursuant to 18 U.S.C. Sec. 1001, 1010, or 1012v. Name of Owner/Agent's Representative Sighature of Owner/Agent's Representative (Please print legibly) SEND OR FAX SIGNED COPY TO LOCAL PIH OFFICE Call 1-877-406-9220 (toll free) if you need assistance. Retain a copy for your records. :-J; MTB Group, INC. --..": c 316 ~OUTH GOLIAD ST., SUITE 215. ROCKWALL, TX 75087 (972) 771-4596 NOTIFICATION OF EXIGENT AND FIRE SAFETY HAZARDS OBSERVED Air Qu,II~ EXIGE~ ~mpan~atuml Ga~e~ane Gas ~te~ [ ~m~r~n~ ~qulpmenEFim ~i~Flre ~ca~s ~ ~ ~ ~e~en~ire ~l~nusable Fire Es~pes ~~ ~m~,n Panels J ~O[m,Wat--",ater/Ga~OII ,VAC ~ ~e~n ~r N~ar Ele~d~l E~ui=ment c um~ o~ ~hin ~ h~ o~ da= ot~e i=~cti~. ~1 public ho=ins ~=~im =~ r~uimd Io d~umen[ ~ivitim in ~is under ~ p~ ~d P~ r=quir=m=n[: for I~ e~u~on by ~rin8 ~ i~ion needed. Site or DU or ~£CT TYPE(s) (See list below Bldg. CA Emergency Equipment/Fire Exits/Fire Escapes G-- Window Secudty Barn Prevent Egress H---Fire Exti~ired PART3 FIRE SAFETY HAZARD Jl - Missing/inoperalive *' Reserved fo~ HUD Use. Other Heakh~Not Defined In Above Mab"ix. NAME OF OWNER / AGENT'S REPRESENTATIVE (Plcnse print legibly) ems were observed and noted as Fire Safer ~re immediate attention: CHECK DEFECT TYPE(s) (See list below) COMMENT(s) G It ~ ___.._.__= SIGNA~E OF O~ER / AGE~'S ~PRES~TATIVE ~ ~ ~ ~ ] / ] ~7/~ ~~ ~/ ~SPE~Ok ID NUMBER V~e: O~/i O~ ~copy t~is n~i~cation will ~ provided to thc appropriate Ioc~ hc~t~sn~c~/firc code enforcement cnti~. Neither ~e ins~tor. ~e inspectors employer nor ~hc ~p~cnt o~ Housing ~d Urbm~ ~vclopmcnt ~sumc ~y liabili~ whaB~vcr expressed or implied ~at ~c above noted health ~d sa~e~ h~ds consti~tc ~1 o~c hc~ ~d sn~c~ dc~cicnci~ ~at may be p~sent on thc propc~. ~y ~d ~1 liabili~ ~or the hcal~ ~d sa~cw h~ds noted ~ove. ~ well u ~y hc~ ~d sa~e~ h~ds ~at my exist on ~ pro~ but we~ not obse~ed by ~c inspector. ~e ~c ~11 ~d absolu~ responsibili~ o~ ~e pro,ny owncr ~d not thc ins~ctor. ~e i~tor's employer nor ~c ~p~mcnt o~Housing ~d Urb~ ~vclopmcm. FAX TO MTn ~ Area 1 (866) 422-7632 - Area 2 (888) 277~081 - Area 3 (866) 422-7633 and HUD ~ (877} 2~8~992 Re, In original for your ~co~