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HomeMy WebLinkAboutJuly 25, 2006 HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF JULY 25, 2006 Call to Order - The Regular Meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) was called to order by Chair, Tammera Diehm at 7:28 p.m., July 25,2006, in the Parkview Villa Community Room B, 965 40th Avenue NE, Columbia Heights, Minnesota. Roll Call- Tammera Diehm, Bruce Nawrocki, Bobby Williams, Dennis Ecklund Jr., Patricia Jindra, and Bruce Kelzenberg Pledge of Allegiance CONSENT AGENDA Approve the Minutes of April 25, 2006 Regular Meeting and Financial Report for the months of April, May and June 2006, Resolution 2006-05. Nawrocki asked on page 1, under investment revenue, how does it work. Lindig stated the investment income is managed by the City advisors and once a year the City finance department informs them what the investment performance was and what share of that investment income is for Parkview Villa South. Nawrocki stated in both the north and south supplies you talked about a need to correct some errors in the way some invoices were coded to various expense categories, can you tell me a little about that. Lindig stated when he was going through his review after the first quarter, he noticed a fair amount of expenses that should have been maintenance and construction that were coded to general supplies and vise a versa, so he made corrections. Nawrocki asked about the City of Columbia Heights billing. Lindig stated it is the water bill and labor transfer for bob and Cher's time for their work performed for Parkview Villa north and south. Nawrocki said, frankly he felt it was another way to make the budget look better by tapping revenue, when we are paying Walker a hundred and some thousand for management. Streetar stated the City has a contract with the HRA and in that contract it states the City will recover its labor costs, which doesn't include the copier paper costs and other costs. Nawrocki stated he would like a better breakdown of how he is coming up with that labor cost. Streetar stated on the form b that each department fills out it is the hourly rate and fringe, the City specifically decides how we are going to arrive at that amount. Cher and I have a pretty good idea of how much time we spend working on items for Parkview Villa. For example, recently we spent approximately 15 to 20 hours working on Davis Bacon issues and HUD monitoring. Motion by Williams, second by Kelzenberg, to approve the consent agenda Items #4 and #5 as listed. All ayes. Motion Carried. BUSINESS ITEMS Housing & Redevelopment Authority Minutes July 25, 2006 Page 2 of 10 Report of Management Company Todd Kline stated he is assuming the role of Lisa Toms and if the board has any questions on the report, for the months of April, Mayor June he would be happy to answer them. Nawrocki stated in the May report you talk about using staff and saving approximately $8,000, how much did we anticipate spending for this and has the work been done yet. Kline stated they originally were going to do the work themselves with our maintenance person, but they will be going out for bids instead, using outside contractors and that he wasn't aware where that amount came from. Jindra stated at the resident council meeting it was stated we didn't have the expertise or equipment to do it. Kline stated that was true. Diehm stated the $8,000 was maybe an estimated amount. Streetar stated in the capital improvement plan for the south building which was from 2004 it says painting the common areas and windows was estimated to be $11,000. So that is probably between $15 and $18,000 today. Paint for the interior garage was $9,000. That was the two painting items in the capital improvements plan. Resident Council Minutes Jindra asked the board if there were any questions. There were none. Citizen Forum Resident Ron Peters, Unit 414 stated Dana isn't here to defend herself, they transferred from apartment 423 to 414, Dana swore up and down the unit would be clean, he has pictures he took, which show where they had to clean. Their old apartment was just fine except for the Star Bar noise and that they still had to pay the $400 to move into the new unit. Ecklund Jr. stated he had a meeting with the Peters and Dana, which determined there was some things that came out of the meeting and felt they should be reimbursed for half of the money. Mrs. Peters provided Chair Diehm with pictures of the apartment. Nawrocki stated regarding the Star Bar, he has talked to the Police Department who stated that part of their operation is going to be removed and the discount store would be moving into that space. Motion by Williams, second by Ecklund Jr. to give the Peters a refund of $200 of the move in fees. All ayes. Motion Carried. Resident, Dorothy Schafer, Unit 425, asked why do they have to pay the $425 to move internally. Diehm stated we had to administer a program for internal moves, which is for the cleaning, painting, etc. to get the unit ready. Schafer stated that is too much. Jindra stated it was because people were moving around the building so often and it was costing us money and staff time. Housing & Redevelopment Authority Minutes July 25, 2006 Page 3 of 10 Nawrocki stated whenever you move you should be able to move into a clean unit, normal wear and tear you shouldn't be responsible for and when you move out you would have to do some cleaning. Schafer stated that the stove and refrigerator goes with her each time she has moved. Nawrocki stated he has never heard of that. Diehm stated with the new modernization of apartments we wouldn't be able to do that. Resident, Jan Honeyford, Unit 205 asked if has a building plumbing problem been brought up in the past, as she had laundry soap come up in her sink, it has happened in the past, she can't do anything in the sink, it has an odor, she has been here almost a year, this is the first day in five days that this hasn't backed up, she hasn't filed a work order as the first time she did Dana stated that happens all of the time. Kline stated he would appreciate it when this happens that she fills out a work order. Streetar stated he used to be a plumber, the drain you can put the stopper in a lock position, as a temporary fix until a plumber comes. Resident, Vivian Fahey Unit 225, has the same problem, has lived here for about two years, Terry came and cleaned the drain from her apartment down to the first floor, but, he wasn't sure where it was coming from. Diehm asked if she was near the laundry room. Fahey stated she wasn't. Resident, Renie Suftka unit 104 stated she has lived there forever, they have tried everything, blown out the pipes, which worked for a while, has heard because they don't have a basement that there is only one pipe for all of the drains to run into and that is the problem. Diehm stated we would ask for an update on this from management. Ecklund stated Honeyford said she had written this issue up, and said that he has written up items also, but would like to get a response from staff as to when they are going to be able to do the work. Diehm asked Kline if there was a policy for this. Kline stated he wasn't sure, but would check into it. Resident, Unit 123, stated she has the same problem. Diehm stated she hoped the residents understand that is why we have a member taking minutes at the resident council meetings, and that they should feel free to talk to her before the meetings. Set Public Hearing for the 2007 PHA Plan Lindig stated as part of the HUD requirements we have to submit a PHA plan, which has to be approved by the Board, one of the requires is that a public hearing be published 45 days in advance and would like to have the board approve conducting the public hearing for October 24th. Motion by Nawrocki, second by Williams, to set a Public Hearing date ofTuesday, October 24,2006, at 7:00 pm at Parkview Villa for the purpose of receiving public input on the 2006 Public Housing Authority (PHA) Plan. All ayes. Motion Carried. Housing & Redevelopment Authority Minutes July 25, 2006 Page 4 of 10 th Floor Modernization Kline stated this is in line with the other modernization project plans, we are asking that the board approves the contract with Unicorp using all of the remaining 2004 Capital Improvement Funds before the September deadline. Diehm stated this would include new entry doors, kitchen cabinets, appliances, lighting, counteriops, bathroom vanities, kitchen and bathroom faucets, and would also include new carpet in the main hallways of the floor. Nawrocki stated the estimate is $11,000, which is $2,000 over the other floors. Lindig stated the $11,000 per unit included all of the repairs on the ih floor and going back to the 8th and 9th floors to install new medicine cabinets and faucets. Diehm stated she has heard good comments from the residents that have already received this. Resident, Diane Powell, Unit 905, stated she loves the remodeling that was done to her apariment. Motion by Jindra, second by Williams, to approve the bids and award the contract for Phase 3 of Parkview Villa North Apartment Modernization Project to Unicorp for an amount not to exceed $107,500; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. 7th Floor Appliance Purchase Lindig stated as pari of the ih floor modernization project, we usually bid the appliances separately. Staff would utilize the City for removal of the old appliances at no charge. The three bids that were received were: 1) All Inc at $8,971; 2) Warner Stellian at $9,776.80 and 3) Guyers at $8,520. Normally, we would go with the lowest bidder, but in this case we are recommending that we use All Inc again for the ih floor appliance purchases to make sure the appliances match the other floors. Diehm agreed it would be good to stay with the same kind of appliances. Ecklund stated for the $400 more, he would rather go with All Appliances again. Motion by Ecklund Jr., second by Williams, to approve the bid from All, Inc. to complete the appliance services during our ih floor rehab in an amount not to exceed $8,971.00; and furthermore to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. South Building Roof Repair on East Side of Building Kline stated that after the last storm there was a leak noticed from the ceiling where the norih and south building adjoin. Staff called a contractor immediately who said we should call back the contractor that did the work, as this should still be under warranty. Omni roofing came out and repaired the roof and alerted staff there is more work to be done caused from hail damage. Repairs would consist of tearing off the old shingles and ice and water shield, replacing them and seal the areas as needed. The bids received were Sox & Company Construction LLC for $750; D & B Home Improvements for $1,250; and Omni I-lousing & Redevelopment Authority Minutes July 25, 2006 Page 5 of 10 Roofs for $1,750. Staff recommends the HRA approve the lowest bid from Sox & Company Construction, LLC. Nawrocki stated what was the problem with the other contractor had. Kline stated he wasn't sure as it happened before he started. Ecklund Jr. stated he heard that he made a hole in the roof and determined that additional repairs needed to be made. Motion by Williams, second by Ecklund Jr., to Approve Sox & Company Construction, LLC that has given us the lowest bid for the roof repairs not to exceed the amount of $750; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Curb Appeal Project Kline stated the inside of the building is looking pretty good and would like to see the outside updated also. The area is over grown and the weed barrier has deteriorated. Staff obtained three bids for adding three retaining walls, existing rock removal, mulch and perennial flowers or shrubs be added, and on each side of the driveway we are recommending to remove the rock and slope and add mulch those areas. The three bids were $8,864 from Twin City Lawn Care, $8,987.55 for Villa Landscapes and $9,480 from Noble Landscape. The South Building Capital Fund Budget for FY2006 would be used for financing the project. Staff recommends approval of the contract with Twin City Lawn Care. Ecklund Jr. stated they have been trying to get this done for the past 2 Y, years, but do we have to go that elaborate, as that is a lot of money. Nawrocki questioned the expenditure, and the need for this at this time, didn't feel that curb appeal is bad, it is unacceptable to use all of the funds coming from the capital funds, this isn't fair, it is like when we increase the management fees for Walker, we increased the rents in the south building, the capital improvement money is set aside for things more like roof repairs. Williams stated he would like to see more what it would look like now. Jindra stated she didn't think it looked that bad. Kelzenberg stated he also didn't think it looked that bad. Diehm asked Ecklund Jr. if he talked to Dana about this, or the Residents Council. Ecklund stated he talked to Dana. Diehm asked Streetar if it would be inappropriate to give the residents council like $1,000 to be used. Streetar stated the VFW and a portion of the laundry machine proceeds, goes to the Residents Council. Nawrocki stated Streetar was right the VFW is giving the Resident Council money. Ecklund stated the Residents Council did plant and put their money into the flagpole circle. Resident, Mr. Schafer stated years ago when they first came to Parkview Villa, the circle was a mess, they made quilts and used the money to buy plants for that area. Housing & Redevelopment Authority Minutes July 25, 2006 Page 6 of 10 Motion by Nawrocki, second by Williams that this matter be referred to the Residents Council. All ayes. Motion Carried. HeatinglCooling Systems in Community Room B Kline stated in the last couple of years, staff has had trouble maintaining the two large air conditioner/heating units in Community Room B. Recently we had the working unit recharged, but the other one will not hold Freon. Staff is looking to replace this unit in 2006, using Capital Funds. Three bids were received from: 1)Owens Companies for $17,600, 2) Boiler Services for $16,534 and 3) LBP Mechanical for $13,920. Staff recommends approval of the contract with LBP mechanical. Ecklund asked if that was both units, or just one. Kline stated it was for only one this year. Nawrocki asked where the money is coming from. Lindig stated he believed it would be coming from the capital improvement funds for the south building. Motion by Kelzenberg, second by Williams, to Approve the low bid from LBP Mechanical, Inc. not to exceed the amount of $13,920, from the South Capital Improvement Funds; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. TV Antenna System Kline stated in the past staff has looked into getting a discount rate from Comcast for Cable TV. The reduced rate is only applicable if 100% of the residents hook up to Comcast. Staff recently completed a survey to find out what residents would like to do. We received a total of 60 surveys back, with 41 residents already using Comcast, 18 use the antenna system, and one that does not use any. Staff called a contractor to educate residents and find out approximately how much repair or installing a new rooftop TV antenna would cost. We found out that with the new technology coming in 2007 converting analog to digital televisions, even if we replaced the current antenna, it would not be compatible. The other option is to connect to the City network through Comcast Universal hook up. Residents would receive better reception and a couple more channels for free. Therefore, staff is recommending connecting to Com cast Universal through the City connection for both the North and South buildings. Nawrocki asked what is the service you get through the City. Diehm stated it is the City contract with Comcast. Diehm stated it is a free service, make sure if you call that you tell them you are from Columbia Heights and the service is free, because it is part of the City Contract. Ecklund stated his cost is $60 a month, because he gets a lot of channels, but it is free if you only want the local or universal connection. Motion by Williams, second by Jindra, to utilize the Comeast Universal City Connection provided by the City at Parkview Villa North and South. All ayes. Motion Carried. Housing & Redevelopment Authority Minutes July 25, 2006 Page 7 of 10 Rent Transition Extension Alternative Streetar stated what you being asked to consider this evening is extending the rent transition period for Parkview Villa South residents living in 15 of the 45 units, as those residents in the 15 units will experience significant increases in rent beginning on January 1, 2007 and may have to move. In 2004, due to shortfalls at Parkview Villa South, the HRA implemented a 3-year plan to increase rents to ensure adequate revenues to pay the necessary property operating and capital costs. This problem initiated from Crest view not charging the residents in the south building the correct increases, they were charging them the same as the residents in the north building, which was incorrect. The plan called for moderate and level rent increases for current residents each year, over a three-year period, with a final increase on January 1, 2007. The HRA encouraged residents to apply for the North building, if needed. On January 1, 2007, rent for a 1-bedroom apartment would be $545 per month, and for a 2-bedroom $695 per month. The table shows the rent each unit is currently paying, and the amount to be paid on January 1st. With this extended rent transition, residents would pay $16.23/month in 2007, $16.94/month in 2008 and $17.67/month in 2009. The remaining 15 experiencing an average monthly increase of $191, which could result in some residents having to move. In order to continue to serve the senior residents of Columbia Heights, staff is recommending for these 15 units, increasing their rent each year on January 1st by 4.35% or about $16/month, allowing them to remain in their home. Nawrocki asked what window replacement is he talking about earlier in the meeting and what is the current fund balance. Streetar stated it was all of the windows in the south building. TKOA did a study for us a couple of years ago that stated the windows in the south building needed to be replaced. Nawrocki asked what the fund balance was again. What Nawrocki may be referring to is a couple of years ago there was a sum of $700,000, which was the difference between what it costs to build the building and what the bonds were sold for, which could not be used for capital funding per state statue. We refinanced the bonds that were used down from 7 to 2 percent. That money was used to reduce the prinCipal of those bonds. There is $540,000 in Parkview Villa South fund balance. Motion by Ecklund Jr., second by Kelzenberg, to Approve extended rent transition period alternative. All ayes. Motion Carried. Walker Contract Extension Streetar stated what you are being asked tonight is to extend the contract with Walker, which began on February 1, 2004 and ends on January 30, 2007. The HRA has the choice to extend the current contract for one year or prepare a request for proposal for a new management company. Staff recommends extending the contract for two reasons: 1) Staff's experience with Walker has been good, they have been thorough in the administration of the operating of the capital budgets, work effectively with HUO, they acknowledged the opinion of I-lousing & Redevelopment Authority Minutes July 25,2006 Page 8 of 10 commissioners that the on-site manager could do a better job, and has been competent. The current property manager will be taking a new position in mid July and Walker will be hiring a new manager for Park View; and 2) the City Council is undertaking significant projects including: Parkview redevelopment, the contract with Grand Central lofts, 4dh & University, 3ih & Stinson, Community Center, Heritage Heights, NEI redevelopment and a 10 year Comprehensive Plan. The Comprehensive plan would require a fair amount of time to prepare this by both City Council and staff. All of these require a lot of staff's time and to go out for bids the City Council would have to reprioritize the projects for the Community Development Department. Walker has agreed to a one-year extension, which would allow the City to get through some of the other things staff is working on for the City. Diehm asked what Walker's transition plan is for replacing Dana's position. O'Donnell stated she will be in transition between both buildings until someone is hired and would be training the new person. Diehm asked if this position would be filled internally. O'Donnell stated there wasn't anyone qualified for the position. Nawrocki stated 1) Parkview management is important: 2) he hasn't been very happy with the management 3) we talked about the cost that staff is being paid through the Parkview budget and felt it was more than enough money to go out for bids, 4) the financial report is much easier to read and he appreciated that; 5) with increasing Walkers management fees his opinion would be against the extension and 6) his concern is always for the residents. Diehm stated any management company that comes in would have the expertise and knowledge to run the HUD building, but if the residents were overwhelmingly happy with the management, she wouldn't consider going out for bids, if we go out for bids we will be signing up for a 3 year contract, with this extension we would be locked into a 1 year agreement, if we go with an RFP we are locking us into a 3 year agreement, therefore, she would like to see Walker receive some input from the board in the hiring process and would be in favor of the extension. Nawrocki stated he had better results with Crestview when he expressed concerns with them, performance is important too, the price you pay is important, when we entered into the agreement with Walker the 60-day termination clause was put in and that Walker has used that to their advantage to receive more money. Kelzenberg stated running a business is a lot of work, Dana did put in a good effort, and he is in favor of the extension. Jindra stated she hasn't been too happy with the management, would feel better if Walker includes the boards input on the hiring process, and she would be in favor of the extension. O'Donnell stated he would like to see they have some involvement with the process. Williams stated he wasn't sure how the people feel about it, and wondered what Ecklund felt. Ecklund stated he felt uncomfortable with Dana training in the new person. O'Donnell stated Dana will train in the new person on the HUD forms and policies, it is their only option, it isn't a relationship training. Housing & Redevelopment Authority Minutes July 25, 2006 Page 9 of 10 Nawrocki stated he thought the board was supposed to have input in the hiring and didn't feel that we did. Diehm stated she sat in on Dana's interview and that Walker would be putting their best foot forward, as they are aware of the problems that we have had in the past. Williams stated he hasn't heard anything from the residents, needs to hear from the people, they need to convince him, and asked what do the residents think. Renie Suftka, Unit 104 stated she didn't have a personal problem with Dana herself, she has a problem with Walker as it is a business, not a community, she doesn't like paying for a light bulb to be replaced, but doesn't think a 70 year old woman should be on a chair replacing it. It is a hard job, and that there is always someone that doesn't like management. Resident Peters, Unit 415 stated you should go out for bids after the one year extension, and have it ready incase Walker doesn't prove themselves. Ecklund stated he is hoping we get someone that everyone likes and now Walker staff knows what we are looking for. O'Donnell stated this does make sense to him to involve the board with hiring process. Ecklund stated he is willing to approve the extension. Dorothy Schafer, Unit 425, it is hard to come in here and blend with everybody, we have always had rules around here, to come in here and say it's my way or the highway is wrong, but she would approve the one year extension. Resident Diane Powell, Unit 905, stated rather than a 3-year commitment, she would like to see a 1-year extension, and that Kline is hearing our concerns tonight and hopefully this will work out. Nawrocki stated there is the possibility to bring some people in here temporary, there are options, don't get stuck on this 3-year agreement, we could always go back to managing it ourselves. Streetar stated he was a property manager, for Dominion managing a large complex, and in his option Walker has done an extremely good job working with the paperwork for HUD, but would suggest Walker start paying attention to the residents, and spend more time with them. Williams stated he appreciated the residents giving Walker a second chance, as they didn't give William with Crestview a chance two years ago and therefore, he will vote for the extension. Motion by Kelzenberg, second by Diehm, to approve the contract amendment extending the contract for one year under the same terms and conditions. Upon Vote: Jindra- aye, Williams- aye, Kelzenberg-aye, Nawrocki-nay, Diehm-aye. Motion Carried. Housing & Redevelopment Authority Minutes July 25, 2006 Page 10 oflO Other Business The next regular HRA meeting will be Tuesday, October 24, 2006 at Parkview Villa. Adiournment Chair, Diehm adjourned the meeting at 9:43 p.m. Re~peCtfUII submitted, i ~jJ_____ Cheryl akken Recording Secretary H:\HRAMinutes 2006\7-25-2006