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HomeMy WebLinkAboutJanuary 24, 2006 HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF JANUARY 24, 2006 CALL TO ORDER - The Regular Meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) was called to order by Chair, Bruce Nawrocki at 7:01 p.m., Tuesday, January 24,2006, in the Parkview Villa Community Room B, 965 40th Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Tammera Ericson Diehm, Bruce Nawrocki, Bobby Williams, Dennis Ecklund Jr., Patricia Jindra, and Bruce Kelzenberg PLEDGE OF ALLEGIANCE ELECTION OF OFFICERS Kelzenberg moved to nominate Ericson Diehm for Chair, Williams for Vice Chair, Jindra for SecretarylTreasurer. There were no other nominations. All ayes. Motion Carried. Ericson Diehm, the new Chair, then took over the meeting. CONSENT AGENDA Approval of Minutes of the Regular meeting of October 25, 2005 Approval of Financial Reports and Pavment of bills for the months of October, November, and December, 2005. Bob Lindig, Walker finance officer, asked if there were any questions. Nawrocki asked for clarification of cashflow pages. Lindig explained that the cash flow breakdown on page 13 of the gray section, tells you what the expenses were for. Attorney fees were the greatest expenses for last year, as he revised the ACOP and leases. The variance for the year was almost $30,000, due to over budget on maintenance services, replacing carpet, cost of gas, water leaks, and issues with elevator repairs. Nawrocki stated on page one of the December financials, Parkview Villa North overspent by $155, 163. Lindig stated the page is showing the capital expenditures, last year we did not put them in the operating costs, and that this was included in the 2006 budget, the $113,218 will be submitted to HUD for reimbursement soon. Motion by Kelzenberg, second by Williams, to approve the consent agenda as written. All ayes. Motion Carried. REPORT OF MANAGEMENT COMPANY Welke stated in October there were 7 police calls; 2 medical, 2 for animals found, 1 for extra patrol, 1 for compliance check, 1 for noise and 1 for an alarm. There were no vacancies. Housing & Redevelopment Authority Minutes January 24, 2006 Page 2 of6 In November there were 6 police calls, units were100% occupied, and 36 work orders completed. In December there were 6 police calls; 2 for medical, 1 for suspicious activity or person, 1 for unwanted person, 1 for traffic detail and 1 for warrant arrest (adult). There was 100% occupancy of the units. In the PHA for 2006 we allotted $3,000 to remove the pull cord system, however, Terry, our maintenance man has already started removing the pull cord systems, thus saving the $3,000 from the budgeted. RESIDENT COUNCIL MINUTES Jindra asked if there were any questions from the board. Ericson Diehm asked if there was anything that the board might be interested in. Jindra stated the Christmas Dinner, and their meetings are well attended. CITIZEN FORUM Priscilla Cross, Unit 303, stated prior to the new building handbook coming out, she requested last year from Welke, that it be put in audio format, she was notified of the state contact person that could get this provided to her, has found out it isn't very costly, she asked a few weeks ago that the new lease documents be provided in audio, she wasn't told when it would be provided to her. Cross then supplied the board with a copy of the state contact number. Ericson Diehm stated she felt this was a reasonable request. Nawrocki asked why when Cross, asked for this a year ago, that she didn't get it. Welke stated she did not provide her with it as the lease was just approved in October and the ACOP has not been approved yet, attorney, Bob Alsop does not have it ready for board approval. She wants to do both documents on audio at the same time. Priscilla has also asked staff to provide her bye-mail the calendars and other things that staff provides, which they are doing. Ericson Diehm stated it made sense to her to provide all of this at the same time. Welke stated she has talked to bob Alsop to see if he could provide this type of service for our documents and rules of the building, which he is checking into. ITEMS FOR CONSIDERATION Resolution 2006-01. Desicmatinq Depository for the HRA Streetar stated this resolution was prepared by the finance department, the board approved this at the October meeting. The finance department found some errors on it, so it is before you tonight to approve the corrected version. Motion by Williams, second by Jindra, to Adopt Resolution 2006-01, a Resolution Designating Depository for the Columbia Heights Housing and Redevelopment Authority (HRA). All ayes. Motion Carried. Housing & Redevelopmeut Authority Minutes JanualY 24,2006 Page 3 of6 Under!:!round Parkin!:! Gara!:!e Door Welke stated this was something Ecklund came to her about, as he had many residents express concerns of how hard it is to get into the building for seniors, or residents with wheelchairs, so staff went out to obtain bids. Three bids were received: 1) Trans-Alarm at $3,386.62; 2) Straughan Hardware, Inc. at $4, 185.77 and 3) Wheeler Hardware was the lowest bidder at $2,955. Jindra asked if residents would still have to use their card to get in. Welke stated they would. Ericson Diehm asked if they would relocate the card reader when they install the button. Welke stated they would. Motion by Kelzenberg, second by Williams, to approve the lowest bid by Wheeler Hardware Company in the amount of $2,955.00 to better serve our residents of Parkview Villa. This would come out of the Capital Outlay balance of $22,737.00 (Nov. 31,2005). All ayes. Motion Carried. Manaaement Increase Streetar stated as you may recall, in October 2005, Walker management presented a management fee increase to the HRA, staff would like to present a counter offer for board review. Staff has done the following to come up with this counter offer: 1) contacted MHFA, Anoka County HRA, and Legacy Management and Development Corporation and reviewed the other proposals the HRA received in 2003 for management, which shows a fair management fee is between 6 and 10% of budgeted revenues; and 2) looked at applicant proposals received in 2003, which were Stewart Management at $37. 36/Unit, Steven Scott Management at $37. 36/unit and Common Bond Communities at $45.31. Streetar stated staff would like to recommend the counter offer increases as follows: $16.75 per unit for the north building, added to the current $4.30/unit comes to $21.05 per unit or about a 6% return on the 2006 budgeted revenues and $24. 30/unit for the south building, added to the current $4.30/unit comes to $28. 57/unit or about a 6% return on the 2006 budgeted revenues. This would be $6,854 less than Walker's request. In addition, staff recommends: 1) that any reduction in Walker's actual operating cost of $169, 311 during the third year be approved by the HRA board and the amount of the reduction be subtracted from the management fee, which would protect the HRA from management reducing services and increasing their management fee; and 2) that the increase take effect February 1, 2006. Ecklund asked, when we did the contract 3 years ago did they have the choice to come back to ask for more money. Streetar stated yes, they could have. Nawrocki stated staff is recommending paying more for the south building and that he isn't satisfied with the way residents are treated in the building. Streetar stated, yes the fee is larger for the south building, because there is more work done for the north building and can rely on HUD funding for repairs and even with this recommendation we wouldn't be taking anything out of the fund balance. Housing & Redevelopment Authority Minutes January 24, 2006 Page 4 of6 Ecklund felt everyone should make a good living, but ask about the on-site caretakers hours, as she works in the office also. Welke stated Lee does work 32 hours. She does part time cleaning, and works part time in the office. They choose to do this as the building is in much better condition than it was a year ago, and as the board was concerned that there wasn't anyone in the office they chose to have Lee work from 7- 11 am, three days a week and from 1 to 4pm two other days of the week in the office also. Ericson Diehm stated maybe this should be clarified better as to the hours she works and where she works. Lee asked if he didn't think the building was cleaner in the 4 hours she cleans the building than it was before. Ecklund stated the trashcans are always full in the bathroom. William Potty, unit 712, stated he is up real early and sees Lee cleaning walls and floors, most residents don't see this as they don't get up that early, but he can see she is cleaning everything. Resident, Dadsour, stated he has also seen the cleaning lady doing a very good job. Welke stated when there is a problem or a mess in the building both Lee and her will take care of them as quickly as possible. Ericson Diehm directed Ecklund and Jindra to work with residents to discuss these issues. Don Camp, Unit 608, stated he wanted to know why staff isn't taking care of the parking problems in the front lot, as people are parking where they shouldn't be and nothing is being done to tow them away. Welke stated when they see or hear this happening, they write down the license number and if it's not a resident that they can contact, they call the towing service to remove the vehicle. Ericson Diehm stated Streetar had a good idea where residents help out by writing down the license number of the vehicle and give it to staff and send out warnings. Welke stated they currently do this. Kelzenberg asked Streetar what the ramifications would be if Walker walks away from this contract. Streetar stated staff would have to start preparing bids for review, which would take time away from the redevelopment projects and that he has contacted Great Lakes Management who wants 6 to 8% to temporarily manage the building. Kelzenberg stated he would like to commend Welke and her staff as he can see there have been some significant changes in the building. Williams asked if anyone questioned the residents to see if they want Walker to continue on. Ericson Diehm stated we could, but our decision tonight shouldn't be based on this and that she would hate to put staff in the position to scramble to get someone to manage the building. Ecklund stated Great Lakes Management is for asking 6 to 8%, and if staff has to work fast to get someone to take over, that would cost us more money. Ericson Diehm stated that is correct. Renie Suftka, unit 104, she did not want Walker to manage the building, but she can say that she has not had a problem with Welke or her staff. Housing & Redevelopment Authority Minutes Janumy 24, 2006 Page 5 of6 A lady resident, asked what Walker gets paid for, paying insurance, cleaning, etc., couldn't we do it ourselves? Ericson Diehm stated they manage the building for the HRA, pay bills, makes sure we are in compliance with HUD regulations, handles issues, etc. Nawrocki said Streetar won't want to hear this, but when we first opened this building we used our own staff and could certainly go back to that again. Motion by Kelzenberg, second by Ecklund Jr., to Approve the Management Fee Increase with the above described changes; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. Nawrocki felt this was out of order, we have a contract for another year, to give them another $40, 000 isn't fair, we are letting them out of it, we would be doing it at the expense of the residents of the south building, he assumed this would come out of the escalator fund, how much is the escalator for the third year. Streetar stated it is about 2%, and that he could verify that for him is he would like him to. Upon vote: Nawrocki- nay, Jindra- nay, Williams- nay, Kelzenberg- aye, Ericson Diehm- aye, Ecklund-aye. Motion fails. Ericson Diehm stated we would not have a management company in place in 60 days as we have to go out for bids, will pay more money, and the residents are the ones that will suffer. Streetar stated this means that probably two or three development projects will be put on hold. Nawrocki stated Streetar you take the cake. Ericson Diehm asked Nawrocki to please refrain from comments like that. Fehst stated it does take a long time to get a new management company on board, if we hire a management company, as we do not have the staff to management the building and that it would be taking away from City staff's time. Williams stated he is willing to change is vote in lieu of what he has just heard. Motion by Williams, second by Kelzenberg to reconsider the original motion. Upon vote: Nawrocki- nay, Jindra -aye, Williams - aye, Kelzenberg - aye, Ericson Diehm - aye, Ecklund Jr. - aye. Motion Carried. Nawrocki stated he finds the management and Streetar's comments kind of interesting, they are saying they don't have the ability to do a whole lot, the management says they really aren't capable of doing it, I just shake my head. Upon vote of the original motion once more: Nawrocki- nay, Jindra-nay, Ericson Diehm-aye, Kelzenberg-aye, Williams-aye, Ecklund Jr.- aye. Motion Carried. Ericson Diehm directed staff to add this item to the April meeting agenda. Housing & Redevelopment Authority MInutes January 24, 2006 Page 6 of6 Other Business Nawrocki stated from the last meeting the board directed staff to meet with Anoka County to discuss transferring Parkview Villa to them, the staff report is almost saying this is a done deal, he is against this. Jindra agreed. Ericson Diehm stated as she remembers the motion was to direct staff to discuss the possibilities, and that she would hope that everyone keeps an open mind. ADJOURNMENT The meeting was adjourned at 8:23 pm by Chair, Ericson Diehm. Respectfully submitted, ? .('" /7 /J./ ( /~7' ..- ,?J"'-'~ Cheryl Bakken Recording Secretary H:\HRAMinutes 2006\HRA1-24-2006