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HomeMy WebLinkAboutJanuary 21, 2004CITY OF COLUMBIA HEIGHTS 590 40th Avenue N.E.. Columbia Heights, MN 55421-3878 (763) 706-36{)0 TDD (763) 706-3692 Visit Our Website at: www. ci. columbia-heights.mn, us HRA Commissioners: Tammera Ericson Dennis Ecklund Bobby Williams Bruce Nawrocki Bruce Kelzenberg Patricia Jindra HOUSING & REDEVELOPMENT AUTHORITY SPECIAL MEETING 7:00 P.M., WEDNESDAY, JANUARY 21, 2004 PARKVIEW VILLA, COMMUNITY ROOM B 965 40T}~ AVENUE, COLUMBIA HEIGHTS, MN AGENDA 1. CALL TO ORDER/ROLL CALL 2. PLEDGE OF ALLEGIANCE 3. ELECTION OF OFFICERS Chair Vice Chair Secretary/Treasurer MOTION: Move to cast a unanimous ballot nominating and appointing for Chair, for Vice Chair, and for Secretary/Treasurer. o CONSENT AGENDA A. Approval of Minutes. The Meeting of November 18, 2003. MOTION: Move to approve the minutes of November 18, 2003, special meeting as presented in writing. REPORT OF MANAGEMENT COMPANY-Housing Administrator CITIZEN FORUM .(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. Revenue Adjustment Plan for Parkview Villa South MOTION: Move to implement the revenue adjustment plan. THE CitY Of COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS Of DISABILITY IN EMPLOYMENT OR THE ProvISION OF SERVICES EQUAL OPPOrtUNitY EMPLOYER 2. Parkview Villa North Apartment Modernization MOTION: Move to Approve the Parkview Villa North Apartment Remodeling Plans and authorize staff to obtain bids for the project. ADMINISTRATIVE REPORTS 8. ADJOURNMENT Cheryl Bakken, Community Development Secretary H: \HRA A~enda2004\l-21-2004 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). COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of: January 21, 2004 AGENDA SECTION: ORIGINATING EXECUTIVE NO: DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Election of Officers BY: Robert Streetar BY: DATE: January 14, 2004 BACKGROUND: The City of Columbia Heights Housing and Redevelopment Authority (HRA) Bylaws specify that the authority shall select a Chair, Vice Chair and a Secretary/Treasurer from among its Commissioners. The current officers are as follows: Chair Vice Chair S ecretary/Treasurer Tammera Ericson Bruce Kelzenberg Patricia Jindra RECOMMENDATION: Move to cast a unanimous ballot nominating and appointing for Chair, for Vice Chair, and for Secretary/Treasurer. RECOMMENDED MOTION: Attachments Move to cast a unanimous ballot nominating and appointing for Chair, for Vice Chair, and for Secretary/Treasurer. HRA ACTION: H:\HRA consent Form 2004\HRA Election of Officers HRA ELECTION PROCEDURES We will know have the Election of Officers. Nominations are know being taken for the office of Chair. (After a nomination is made) 1. has been nominated. 2. Are there any other nominations? 3. Are there any other nominations? 4. Are there any other nominations? 5. If NONE - All those in favor say aye. Opposed nay. 6. The chair declares elected as Chair. Nominations are know being taken for the office of Vice Chair. (After a nomination is made) 1. has been nominated. 2. Are there any other nominations? 3. Are there any other nominations? 4. Are there any other nominations? 5. IF NONE- All those in favor say aye. Opposed nay. 6. The chair declares elected as Vice Chair Nominations are know being taken for the office of Secretary/Treasurer. (After a nomination is made) 1. has been nominated. 2. Are there any other nominations? 3. Are there any other nominations? 4. Are there any other nominations? 5. IF NONE- All those in favor say aye. Opposed nay. 6. The Chair declares elected as Secretary/Treasurer. HOUSING & REDEVELOPMENT AUTHORITY (HRA) SPECIAL MEETING MINUTES NOVEMBER 18, 2003 CALL TO ORDER/ROLL CALL Chair, Ericson called the meeting to order at 7:01 p.m. Present: Tammera Ericson, Bruce Kelzenberg, Bruce Nawrocki, Bobby Williams, and Dennis Ecklund Jr. Absent: Patricia Jindra PLEDGE OF ALLEGIANCE PUBLIC HEARING Chair, Ericson opened the Public Hearing at 7:05 pm. Resolution 2003-03~ Adopt 2004 PHA Plan Nagel stated this Public Hearing is for the adoption of the 2004 Public Housing Agency Plan (PHA) that is required by HUD each year. Per HUD regulations, the public hearing notice was published for a forty-five day review, submitted to Anoka County for approval and reviewed by the Parkview Villa Resident Advisory Board. After board approval it will be electronically transmitted to HUD by staff. On page 12 of the PHA plan it shows the breakdown figures of the 2004 budget. Nawrocki asked if the repairs to the boiler have been done and why is Dakota County approving the PHA plan. Nagel stated the boiler repairs are done and that staff sends the document to Anoka County and always comes back from the Dakota County office. Motion by Nawrocki, second by Kelzenberg, to close the Public Hearing. All ayes. Motion Carried. Motion by Williams, second by Kelzenberg, to waive the reading of Resolution 2003-03, there being an ample amount available to the public. All ayes. Motion Carried. Motion by Williams, second by Kelzenberg, to Adopt Resolution 2003-03 of the Columbia Heights Housing and Redevelopment Authority (HILl) confirming approval of the 2004 Public Housing Agency certifications of compliance with the PHA plans and related regulations. All ayes. Motion Carried. Recess- Chair, Ericson called for a recess at 7:09pm and the remainder of the meeting will continue at Parkview Villa, 965 40th Avenue, Columbia Heights. Meeting reconvened at Parkview Villa at 7:25p. m. by Chair, Ericson. CONSENT AGENDA Approval of Minutes MOTION by Williams, second by Kelzenberg, to approve the minutes from October 21, 2003, regular meeting as presented in writing. All ayes. Motion Carried. REPORT OF MANAGEMENT COMPANY Fantle stated the carpets were cleaned at Tyler yesterday. Carpet replacement bids came in so different that they went back to all of the companies and ask for a breakdown. Housing & Redevelopment Authority Minutes November 18, 2003 Special Meeting Page 2 of 5 At the October HRA meeting the board ask staff to prepare a back up heating plan for 2004. After doing some research of the 2004 Budget, it was discovered that instead of building up the heating account from 3 to 4°/6 as in years past, it was increase by 10% to accommodate any possible increases next year. Shirley Barnes state& 1)from 1993-2000 management fees remained the same from Crest View; 2) If council members hear of any problems or issues at Parkview Villa, please feel free to contact Karen Fantle; 3) Thanked the board for the opportunity to manage Parkview Villa; and 4) suggested the board try not to micro manage the new management firm. CITIZEN FORUM Bob Baliza, Unit 704 asked why there is so much confusion between the North and South building rents and ask if HUD couldn't take over both buildings. Fehst explained that the North building has always been HUD subsidized and the South building is not. This is because the City built it. In the North building, because it's HUD subsidized, they have a say in what the rent structure is. Shirley Barnes stated that HUD isn't in the practice of taking over existing buildings. ITEMS FOR CONSIDERATION Walker ElderCare Management Agreement Streetar stated the 3-year Management Agreement for Parkview Villa North and South wouM terminate in 2007. The current agreement with Crest View has a 60-day notice and at that time Walker will take over. Under attachment B, it suggests tentative management, which is similar to our current agreement. On page 5-C, Fees, Walker will provide management for both buildings in an amount of $14, 091.75 per month with annual increases by the consumer price index for all urban consumers for the Minneapolis/St. Paul area as defined by the U.S. Department of Labor, Bureau of Labor Statistics. Attachment A, explains that under our current contract all employees are subject to a police background check, but Walker could require additional screening. Williams stated Crest View charged the City $7,000 in management fees, which covered employee salaries, insurance, etc. and therefore, Walker couM make money with less staffing by paying them a fiat amount per month. Williams stated on page 6, number 5 it states they would provide support to Parkview Villa staff in an emergency, subject to reimbursement by owner. Does this mean we would have to pay an additional fee and if so what la'nd of scenario wouM this apply to. Nagel stated this is the same language as in our current contract with Crest View and only applies to an emergency. Denny 0 'Donnell from Walker ElderCare gave an example of afire in the building, with extensive water damage. Additional staff would be required to clean up the water damage. Williams asked what kind of penalties the City would have to pay if the agreement was terminated. Streetar stated the HRA would only be responsible for services up to the date of termination. Nawrocki stated on page 7, E-I, it should be worded to have staff responsible to oversee abnormal expenditures. Nagel stated in the north building anything over $15,000 comes out of Capital Funds approved by HUD and for the south building there is an amount in the Capital Outlay of the budget set aside for carpet replacement. Housing & Redevelopment Authority Minutes November 18, 2003 Special Meeting Page 3 of 5 Kelzenberg ask 0 'Donnell if there were an issue of residents having people stay with them too long, how would they handle the situation. 0 'Donnell stated they would investigate the situation and then follow HUD regulations to deal with the problem. Williams stated he would be voting against the agreement, as he believes in the loyalty and service provided by Crest View over the years. Motion by Nawrocki, second by Kelzenberg, to Approve the 3-year Management and Maintenance Services Agreement with Walker ElderCare subject to final review by the City Attorney; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. Upon Vote: Ecklund- aye; Nawrocki- aye; Ericson- aye; Kelzenberg- aye; Williams- nay. Motion Carried. 4607 Tyler Street Sale Streetar stated at the August HRA meeting the board approved the sale of 4607 Tyler to Minnesota Housing Resources. Subsequently, Anoka County notified staff that they have to take action prior to the final approval of the sale to comply with Federal CDBG regulations, as CDBG funds were used to purchase the property. At this time, Anoka County has approved the sale and has asked that the HRA re-approve the sale. Motion by Kelzenberg, second by Nawrocki, to Approve the sale of 4607 Tyler Street to Minnesota Housing Resources for $160, 000 with the stipulations outlined in the Purchase Agreement; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Mayor, dulienne Wyckoff stated she noticed there wasn't anyone on the waiting list, and asked if the new owners will choose Columbia Heights Residents to fill the units first. Streetar stated Minnesota Housing Resource has chosen Crest View to manage the building for them and that any determination would be decided by them, as it was not stated in the purchase agreement. Parkview Villa South Rent Structure Streetar stated at the October HRA meeting, commissioners directed staff to recommend rent increases for new residents moving into Parkview Villa South. The rent increases are based upon information Crest View obtained for like properties owned and managed by Anoka County HRA and are suggested as a means to begin to address the revenue shortfall for the south building. Staff recommends leaving the age requirement at 62 years and older and the maximum income for 1 person at $39,500 and 2person at $45,200 as established by HUD and adjusted annually. The rent capped at 30% of annual income for both the 1 and 2 bedroom units would be removed and changed to a flat rent amount of $502 for a 1 bedroom and $674 for a 2 bedroom, which would increase yearly per HUD's fair market rent requirements. The changes would only affect new residents of the south building and would go into affect on December I, 2003. Ericson asked if the amount of $502 for a 1 bedroom and $674 for a 2 bedroom for all new residents was correct. Streetar stated that is correct. Housing & Redevelopment Authority Minutes November 18, 2003 Special Meeting Page 4 of 5 Joe Kroska, Unit 225, asked if the 62 years or older age requirement would stay the same. stated it would. Ericson Nawrocki stated he disagreed with the comment about micro management as he felt the board has not done enough of it. Originally the south building rent was set up at $100 more than the maximum in the north building, but ironically some residents in the north building pay as much as $800 a month, which is more than residents pay in the south building. The City receives almost $1, O00 per unit a year for the north building, which we do not get for the south building. Nawrocki suggested: 1) a rent structure that residents could build into gradually; 2) ifa south resident feels they can't afford the new amount, they should have first choice at getting into a unit in the north building; and 3) staff apply for funding that Streetar spoke to him about that would help for a couple of months with the unit transition period. Barnes stated she checked with HUD on the issue of letting the south building residents have first choice of the available units in the north building and they stated they couldn't do that. Williams stated residents should be aware that the $700,000 in the south buildings budget could only be used to pay off the debt, not repairs and that he agrees with everything Nawrocki said and would be in favor of applying for the funding. Fehst stated he agreed with staff to wait until Walker takes over and have them review the rent structure and make recommendations early next year. He also asked Barnes what the ratio in the south building is of residents that moved from the north building into it. Barnes stated she would have to investigate it. Ecklund stated he would like to see the motion to raise the rents for all new residents passed, so we can move on. Renie Sufika, Unit 104 asked if the intra building moving fees would be waived. Ericson stated this is a motion to approve the rent increase for all new residents only and other issues would have to be discussed at another meeting after Walker is on board. Ericson stated she: 1) agrees these issues should be addresse& 2) disagrees with Nawrocki, as she doesn't have a problem with new people moving in and paying a different amount. People buy airplane tickets and pay different prices for them and doesn't think there would be a conflict with new residents paying more than our current residents; 3) we will need to look at the rent structure for our current residents; 4) agreed with staff that we should give the new management company an opportunity to put some numbers together, consider fees for moving from one building to another; and 5) felt comfortable with changing the rent for new people that don't live here now so that they know what the new rents will be at the time they move it. Nawrocki stated Ericson's example of the airline ticket is not an apple-to-apple comparison as the airline ticket is a private transaction. This is a public facility, with public money. That is the difference. It would be like saying "you adopted it on the City level and want to raise the water rates considerably ". Would you even think of saying just new people would be charged a higher rate for water. Ericson asked do we give a senior discount and if so why do you as a senior pay less for water than she does. Nawrocki stated the City does give a senior discount for water. As a senior citizen he pays as much for water as she does and would be willing to compare water bills with her and expects Housing & Redevelopment Authority Minutes November 18, 2003 Special Meeting Page 5 of 5 he pays more. Ericson asked how he could support a policy that provides a discount. Nawrocki stated he has said more than once that she was the smartest person on this body, but sometimes wonders how she uses these smarts. He thinks she is capable of figuring out the difference between and public and private transaction. Ericson ask for the record to reflect that she would appreciate Mr. Nawroctd to not make personal comments and to keep his comments to the issues at hand. Motion by Ericson, second by Kelzenberg, to approve the Rent Adjustment for new residents to take effect December 1, 2003. Upon Vote: Ecklund- aye; Nawrocki- nay; Ericson- aye; Kelzenberg- aye; Williams- aye. Motion Carried. Kelzenberg stated he thought the board had already passed a motion to table this item until March or April of next year as a courtesy to the residents. ADMINISTRATIVE REPORTS ALDI GROCERY STORE Streetar stated the ALDI Grocery Store representative contacted staff in regards to the Kmart site as a possible location for one of their stores. Staff met with A£DI's representative and took a tour of one of their stores. They provided staff an example of if you are a single person or for an average family of 4, it would be a savings of approximately $20-$50 per week by shopping at A£DI's. HVS International Streetar stated the marketing firm of HVS International contacted staff to discuss a potential location of a Sheraton Hotel at 49th and Central. They will let staff know by the end of December of their intentions. ADJOURNMENT Chair, Ericson, adjourned the meeting at 8:44p. m. Respectfully submitted, Cheryl Bakken Recording Secretary HSHRAMinutes 2003\ 11-18 -2003 Special UJ II II Parkview Villa Housing Complex 965 N.E. 40th Avenue, Columbia Heights, MN 55421 (763) 706-3800 Fax (763)788-3978 DATE: TO: FROM: RE: January 13, 2004 Bob Streetar; Community Development Director Shirley Barnes; Chief Executive Officer; Crest View Corporation Commissioners; Columbia Heights HRA Board of Directors; Crest View Karen Fantle, Housing Manager November/December 2003 Management Report for Parkview Villa 4607 Tyler 4-plex · After having a contractor look at the foundation and the drain tiling televised it was determined that there is no current leakage or problems with the drain tile. Bill G. also replaced the gutter drain spouts directing rain away from the building (they had been removed for unknown reasons). At this time the only explanation for the leakage that I can determine is an excessively hard rain caused it. After determining all of this information we decided to have the basement walls cleaned, sealed and repainted. o Tenant in Apt. 2 had some damage to property in the storage area of basement. She has submitted a letter asking for compensation from the city (see attached). · Sale of the 4-plex was finalized on December 31, 2003. Parkview Villa · After receiving the 3 breakdown bids for the carpeting of PVV-S, St. Paul Linoleum was the low bidder. They have been contacted and informed they have the bid. We will be meeting on January 20 at 2:00 p.m. to confirm carpeting to be used. · I have set up tracking systems for incident reports regarding misconduct in the buildings, overnight guests and after-hour lockouts. These systems should make it easier to keep track of what is happening in the buildings. · I have been working with Cher in the Community Development Office to organize and clean up Policy & Procedures and forms that are currently approved and in use so that the transition to Walker Management will go as smooth as possible. · Bill Gault and I have completed annual inspections of Parkview Villa North apartments for 2004. o 28 apartments failed due to housekeeping issues - 9 of these have been resolved already o 8 apartments failed due to safety issues - 4 of these have been resolved already. o Found 3 apartments with both A/C's and chest freezers that were only paying for one excess utility. They are now paying for both. · I have completed Annual & Interim re-certifications as needed. · I have addressed problems occurring with and between tenants and kept incident reports current. · I have submitted Purchase Requisitions and Payment Vouchers in a timely manner. Parkview Villa Manager's Report - Page 2 OCCUPANCY: PARKVIEW VILLA - NORTH Apt #305 Apt #611 November 30, 2003 December 13, 2003 PARKVIEW VILLA - SOUTH Apt #417 Apt #217 November 30, 2003 November 30, 2003 Waiting list totals are as follows: Parkview Villa North 30 CH Residents 36 Non-Residents Parkview Villa South 15 CH Resident 11 Non-resident MISC: For informational purposes the Parkview Villa calendar is attached. Equal Housing Opportunity Agency Owned by the City of Columbia Heights HRA Managed by Crest View Management Services EQUAL HOUEINQ OPPORTUNITY Letter to Col. Hts.txt December 9, 2003 City of columbia Heights HRA To Whom It May Concern: I live in apartment #2 at 4607 Tyler Street, N E. owned by the City of columbia Heights. ' ' In early September, I was looking for something in my storage room, and since it was way in the back, I had to move everything out. I moved it into an empty storage room, but when I got to the back of my storage room, I discovered that'a crack in the foundation had let water seep in and had covered many of my belongings with a black slimy mold. z had to throw out about fifty books that were too covered to be able to clean them. I also had to throw out some clothes that were ruined. The mold had seeped throught the boxes and ruined whatever was inside them. I managed to save some of t~e books, that weren't too badly covered with mold, and I washed some of the Clothes, but I can't get the mold smell out of them. Although I threw out a lot of stuff, I still have some stuff that was ruined, and I th~nk the city should compensate me, because I had no idea the storage room was not safe to store my belongings in. Sincerely, Lyn Miner Apt. 2 4607 Tyler Street, N.E. Columbia Heights, MN 55412 cc: Michael Czarnick Page 1 COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY Meeting of January 21 2004 AGENDA SECTION' Items for Consideration ORIGINATING DEPARTMENT EXEC. DIRECTOR NO: 6-1 Community Development APPROVAL ITEM' Revenue Adjustment Plan for Parkview BY: Robert Streetar BY: Villa South DATE: January 7, 2004 Th~s memorandum provides a proposal to resolve the structural revenue shortfall at Parkview Villa South (PVVS). BACKGROUND: Parkview Villa South was placed into service in 1991. PVVS is comprised of 41 l-bedroom and 4 2-bedroom apartments. PVVS serves Iow-income persons 62 years of age and older, with a preference for Columbia Heights residents. Minimum and maximum rents, and maximum incomes, were initially established to maintain the affordability of the units. These requirements have remained unchanged since 1991, and are list below. Requirements to Rent at PVVS Serves 62 years of age and older Preference Current Columbia Heights residents. Maximum Income~ 1 Person $39,550 2 Persons $45,200 Rent 1 Bedroom Capped at 30% of Annual Income Rent - $250 to $425 per month 2 Bedroom 1 - for year 2003. Capped at 30% of Annual Income Rent - $325 to $500 per month. Because of the current revenue structure, operational and capital expenditures over the next 7 years, through 2010, are expected to exceed revenues by an average of $50,000 per year~ PROPOSAL The HRA Board directed staff to develop a proposal that would meeting the following conditions: 1. That revenues adequately cover the expected operating and capital needs of the building, and reflect current rents for Iow-income, senior, rental properties in the market area. 2. That the proposal allow for a phase-in of new revenues for existing residents that will not create an undue burden. The proposal which includes adjustments in apartment rents, garage rents and air conditionedheater/refrigerator use, is based upon the 2004 budget the HRA Board approved in October 2003, and assumes a three percent increase in revenues and expenditures annually. Parkview Villa South Revenue Adiustment Proposal Current 3/1/2004 1/1/2005 Serves 62 years of No Change No Change Age and Older 1/1/2006 No Change 1/1/2007 No Change Preference Columbia Heights Residents No Change No Change No Change No Change Rent Existing Residents 1 Bedroom 2 Bedroom New Residents The lesser The lesser The lesser Current of +7.6% or of +7.6% of +7.6% Rent $500 or $514 $529 $545 The lesser The lesser The lesser Current of +7.6% or of +7.6% of +7.6% Rent $636 or $655 $675 $695 1 Bedroom $502 $500 $514 $529 $545 2 Bedroom $674 $636 $655 $675 $695 Garage $25.00 $25.75 $26.50 $27.31 $28.13 AC/Head Bolt/2nd Frig $5.00 $5.15 $5.30 $5.46 $5.63 Serves and Preference Staff is recommending that the property continue to serve residents 62 years of age and older, with preference for Columbia Heights residents. Rents for Existing Residents Staff proposes rents for existing residents increase to the lesser of 7.6% or the current market rent for Iow-income senior properties on March 1, 2004, and then on January 1, of 2005 and 2006. These rent increases are based upon what the resident is currently paying, and allows for a 3-year phase in. Average monthly rent increases over the three-year period will be approximately: Date oflncrease Avg. Mo. lncrease 3/1/2004 $27 1/1/2005 $29 1/1~006 $31 Beginning January 1,2007 all existing residents will pay $545 for a 1-Bedroom, and $695 for a 2-bedroom. These rents reflect those charged by comparable Iow-income senior properties in the market area. Rents for New Residents Staff proposes rents for new residents beginning March 1,2004 be $500 for a 1-bedroom, and $636 for a 2-bedroom, and increase 3% on January 1,2005, and 2006. Beginning January 1, 2007 all new residents will pay $545 for a 1-Bedroom, and $695 for a 2-bedroom. These new rents reflect those charged by other comparable Iow-income senior properties in the market. Gara.qe Rental and AC/Head bolt Heated2nd Frid.qe Use for both Existing and New Residents Staff recommends that monthly rental of garages and AC/Head bolt Heater/2n~ Fridge use increase 3% annually, on March 1,2004, and then again on January 1, 2005 and 2006. SUMMARY Implementing these revenue adjustments ensures adequate revenues to permanently meet the operating and capital needs of PWS, making certain the building will remain in good condition. The adjustments are implemented over a 3-year period to ease the impact on existing residents. Lastly, the new rents to take effect January 1,2007 reflect the rents charged for Iow-income senior buildings in the market area similar to PVVS. RECOMMENDATION: Staff recommends the HRA implement the revenue adjustment plan as outlined in this memorandum. RECOMMENDED MOTION: Move to implement the revenue adjustment plan. Attachments HRA ACTION: h:\Parkview Villa2004/PVVS Rent Adjustment COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of: January 21, 2004 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 6-2 DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Parkview Villa North Apartment BY: Mark Nagel BY: Modernization DATE: January 15; 2004 BACKGROUND: The 2002 and 2003 Capital Fund Program budgets include funds for the first phase of an eight phase remodeling of Parkview Villa North apartments on a floor-by-floor basis. The work will include new doors, cabinets, appliances, plumbing, lighting, and patchwork on tiles and walls. The total anticipated cost of the project per floor (12 apartments) is $7,300/unit, or $87,600/floor. Walker Eldercare is helping by using their buying power to get excellent prices on the appliances. BWBR Architects, also paid for through the 2002 CFP, will be at the meeting to review the plans with the HRA. Attached is a copy of the renovation budget and schedule. On Thursday, January 8th the plans were reviewed by the Capital Improvement Sub-committee. The Sub-committee unanimously approved a motion to recommend the HRA approve the plans and authorize bidding process. It is expected that it will be a competitive bidding market given the nature of the work. As you can see from the attachments, staff hopes to begin bidding in February, pending final signoffon the project by the HUD Minneapolis Office. RECOMMENDATION: To approve the apartment remodeling plans and to authorize staffto obtain bids for the project. RECOMMENDED MOTION: Move to Approve the Parkview Villa North Apartment Remodeling Plans and authorize staff to obtain bids for the project. Attachment HRA ACTION: h:\Consent Form2004 Renovation Budget 13-Jan-04 Item KilcltmlFoath cabinms 'Countertop varify top Sto~~ * Reldgemtor, freezer top, no ice/water * Stove, 4 bumm electric 'Tol~ Seat, MYite Ins~ of phmdY~g fixtures Patch Bath til~ V~/I Composakxl *nH Gypsum Board (water damage) Replace misc. wood corrkix doors,oxg, hardware Repaim metal doors/all frames, oxg. hardware Bulking Management to complete repainUng ol moms · Purchased & installed by Walker · 'Purcl~ by Walker, installed by contractor ---p~ proplumbo~l Dy Wallr, m BWBR Archilects Project No, 03.133.00 Budget Cost Sub Total $125 $125 $25O $25O Budget Total per unit Units per floor (12) Total per floor Total Con~ $153 $87,600 budgetlO3OO3.xls 1113/2004 City of Columbin HeiSts Parkview Villa North Aparunent Modernization Commission Number 2003.133.00 January 8, 2004 · C, apit~l Committ~ Review Mecting ................................... .J'anuat7 8, 2004 · I-IRA Boa_rd Apptovnl. ............................................................... ..J~nun~ 21, 2004 · Complete Bid Documents .................................... ]~nunry 22- Febmn~ 6, 200~ · Obtain Bids ..................................................... Fcbtuary 8- Fcbtunxy 24, 2004 · :.HRAApptoveBid~ .... - ........................................................ .M~,:,',, 9, 2004 · S".ubmimtl~/Shop Drawings ...................... ................. M~x:h 10- March 26, 2004 · Cabinet Fabrication ................................ ; ..................... ~ 29 - April ~6, 2004- · Constmction/Tnsmllation ............................................... Apn] 19- May 31, 2004 Crest View Appreciation Party! The City of Columbia Heights Housing and Redevelopment Authority would like to invite you to an Appreciation Party for Crest View Corporation Friday, January 30th, 2004 Parkview Villa, Community Room B 3:00 to 4:00 pm Cake, Coffee and Punch will be served. 2004 Housing & Redevelopment Authority (HRA) Meeting Schedule DATE PLACE TIME January 21, 2004 Parkview Villa 7:00 p.m. April 20, 2004 Parkview Villa 7:00 p.m. July 20, 2004 Parkview Villa 7:00 p.m. October 19, 2004 Parkview Villa 7:00 p.m. NOTE: Dates are tentative and subject to change. RESIDENT COUNCIL MEETING MINUTES OF NOVEMBER 10, 2003 The meeting was called to order at 7:00 p.m. by President, Dennis Ecklund Jr. The Pledge of Allegiance was said. Officer Sturdevant- was introduced and gave information on security problems. Residents must record the problem on incident paper and turn into management. The first offense- make the office aware. Second offense- action for correction. Third offense- loose their lease, rent and restraining order. Nancy Shaw was introduced. She is the Anoka County Outreach representative. She will be in attendance the second week of the month to answer questions on medical, financial and energy assistance. Management Report Thanked everyone for being patient while she is getting the office in order. · Will make incident report Sheets available in the Library and office. Everyone was encouraged to use them. They do not have to be signed but, it is the only way she can be aware of problems. · Will update on handbook and lease agreements. · Told everyone they could have sleep over guests for 21 days per year. Also, Management must be aware when having extra person stay. · The City Carolers would like to come again this year on either December 6th or 19th at Noon to sing Christmas Carols. Residents choose December 19th for the event. · Emphasized that residents should not move machines in laundry room and everyone should clean up after using them. Talk to her if they have any problems. Fantle was very good at answering questions the residents had. The Secretary report was given. The Treasurers reports were given. Entertainment Report by Priscilla Cross · December 13, Holiday Dinner · December 16, Knights of Columbus Party · December 22, Christmas Lights Tour · December 31, New Year's Eve Special Bingo Ecklund drew for cash awards. A total of five residents received $5.00. Meeting Adjourned at 8:50 p.m. Respectfully Submitted, Pat Jindra, EDA Representative RESIDENT COUNCIL MEETING MINUTES OF DECEMBER 8, 2003 The meeting was called to order at 7:00 p.m. by President, Dennis Ecklund Jr. Ecklund requested two minutes of silence for our servicemen and women. A prayer was recited in their memory. The Pledge of Allegiance was said. NO Management Report- Anita Kottsick and Karen Fantle were not at the meeting. Ecklund reported the following: · Apartment inspections are on going. They are up to the 5th and 6th floors. · Walker Management to take over February 1, 2004. · Christmas Social is December 12th at 1:00 pm in Community Room B. · City Carolers will come to Parkview Villa on December 19th from 12 to 1:00 pm · New phone lists will be out soon. · Dryers are working, but would like longer time settings. ELECTION OF OFFICERS The following people were elected: President- Dennis Ecklund Jr. Secretary- John Super Treasurer- Marion Booth Sunshine- Betty Sheldon Decorating- Katie Lietzke Welcoming- Terry White Kitchen- Ron Schumacher The Secretary report was given. The Treasurers reports were given. Welcome Committee- Welcomed new resident Bernice Gacek. Entertainment Report · December 30th - 4th group to entertain at 7 pm with refreshments · December 31st- Bingo party and Booyah New Business · Bulletin Board that locks in an oak finish, that locks (for announcements) will cost $243.00 plus $45.00 for shipping with a 3-week lead time. It was voted to purchase the bulletin board. Ecklund drew for cash awards. A total of five residents received $5.00. They were Carol Hinrichs, Opal Baker, Ardell Johnson, and Almeda Foster. Meeting Adjourned at 8:05 p.m. Respectfully Submitted, Pat Jindra, EDA Representative RESIDENT COUNCIL MEETING MINUTES OF JANUARY 12, 2004 The meeting was called to order at 7:00 p.m. by President, Dennis Ecklund Jr. Management Report · There are four apartments empty; 2 in the north building and 2 in the south building. Hopefully, they will be filled by next week. · Karen is following up on last weeks incidents. · Dana from Walker management will be at Parkview Villa and will get help from Karen. The Secretary report was given. The Treasurers reports were given. President, Denny Ecklund Jr. thanked Carol and Jackie for the fine job done and introduced the new Secretary and Treasurer. Also Priscilla Cross was thanked for doing a good job as entertainment chair. No one has volunteered for this job yet. Entertainment Report · February 14th- Valentine's Day Spaghetti Dinner. A sign up sheet will be posted. Dinner will be served from 5:30-6:30 pm. · VFW Dinner- first Saturday in February · Pork Chop Dinner- third Saturday in February Sunshine Report 31 cards were sent in 2003; three Sympathy cards. Welcome Committee- there were no new residents in December. Business · Need chairs for entertainment. · Kitchen- Ron Schumaker will help for Kitchen · Entertainment- Barb Camp will help on Entertainment · Teresa will be Chair for Bingo Old Business · Karen told the Resident Council they couldn't have $10,000 or more, in their account, otherwise they will not be considered tax-exempt. They have $8,451 currently in their account. The funds should be used for the good of the residents. A fan or ventilation was recommended for Community Room B. It's always too hot. · Bill Cross asked for an appreciation party for Karen Fantle as manager from Crest View. Also a $50.00 Gift Certificate. Meeting Adjourned at 8:00 p.m. Respectfully Submitted, Pat Jindra, EDA Representative Date: To: Re: From: 1/20/04 Members of the Columbia Heights H.R.A. Board Proposed rent increases for Parkview Villa South Addendum to Memo of 1/19/04 on same Bruce Nawrocki 'I am asking that this memo be read at the Special H.R.A. meeting on January 21't, along with my memo of January 1 To those who wonder why I ask so many questions, 'this is a perfect example. The information in my memo of January 19'" was based on my reading the December, 2003, Financial Reports referenced in that memo. In checking with the Finance Department today on the information I referenced in my memo, I find that the information in the December, 2003 Financial Report is not complete. In discussing the information with them their best estimate at this time is that Parkview Villa South will end up the year adding about $16,000.00 (rather than $29,956.21) to the 2002 carryover fund balance of about $115,000.00, for a new total fund balance surplus for Parkview Villa of approximately $131,000.00. Raising rents and other revenue by 7.6% in March of 2004 will raise about $210,000.00 of revenue for the year. Using staff estimates of about $218,000.00 for expenses in 2004 (including proposed capital outlay) would reduce fund balance by about $8,000.00. Increasing revenues in 2005 by 7.6% will raise about $226,000.00. Staff estimated expenses for 2005 of about $234,000.00 would reduce fund balance by about another $8,000.00. Increasing revenues in 2006 by another 7.6% will raise about $243,000.00, matching staff estimated expenditures of about $243,000.00. In 2007, rents of $545.00 per month for 41 single bedroom unit and $679.00 for 4 double bedroom unit would raise about $300,000.00. Other revenue of about $18,000.00 would mean total revenue of about $318,000.00 against staff estimated expenses of about $252,000.00, for a an:',estimated increase to the fund balance of about $66,000.00 for the year. The net result of these changes would have the fund balance for Parkview Villa South increasing fi.om $115,000,00 at the end of 2002, to an estimated $181,000.00 at the end of 2007. What this means to me is that the proposed rent increases should be rejected at this time, put together some better estimates on projected expenditures and revenues, and spend some time with the Tenants reviewing with them what the actual needs are in terms of rent increases. Date: 1/~i~'/04 To: Members of the Columbia Heights H.R.A. Board Re: Proposed rent increases for Parkview Villa South From: Bruce Nawrocki As previously indicated, I am unable to attend this Special Meeting because It conflicts with another regularly scheduled meeting of the Suburban Rate Authority, where I am the City's designated representative, and where I serve as Chair of that body. ! am asking that this memo be read at the Special H.R.A. Meeting on Wednesday, January: 21", during the discussion on Item number 6.1., entitled "Revenue Adjustment Plan for Parkview Villa South". I urge that the H.R.A. not approve the proposed plan. While I believe that there is a need to adjust the rents, Tenants have been kept in a state of flux these past months not knowing what the extend of raises might be, and whether or not they would be able to maintain their residency with the extent of some of the amounts of increases that were talked about. We need to take some time to do a better job of explaining to the Tenants as to why increases are needed, and to what extent those actual needs really are. It is very questionable to me as to whether not the amount of the proposed increases are really needed. Staff bases their recommendation on "'market rates" for similar properties. Parkview Villa South was originally built as part of the redevelopment of the 40th and Central area to serve Columbia Heights residents with the idea that Tax Increment funds from that area would be used for construction costs, and that rents would pay the ongoing costs of properly maintaining the facility. To date, Parkview Villa South continues to run a fund balance surplus. Carryover fund balance from 2002 was approximately $115,000.00. The December 31, 2003, Financial Report for the E.D.A. indicates that actual year to date expenses for Parkview Villa South for 2003 were '~.163,144.00, $50,620.00 under the budgeted amount of $213,764.00. The December 31, 2003 report also indicated that revenues for 2003 for Parkview Villa South were $193,100.21, $5,119.79 less than the $198,220.00 budgeted for 2003. The net of the 2003 activity woutd ., indicate an addition of $29,956.21 to the approximate $115,000.00 carryover fund balance from 2002, for a new total fund balance surplus of approximately $145,000.00. The projected budget for 2004 balances revenues with expenditures, but does not anticipate the proposed Capital Improvement Budget for 2004 of $20,995.00, an amount that the anticipated $145,000.00 fund balance surplus can handle with no difficulty. /