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HomeMy WebLinkAboutJanuary 23, 2008 AGENDA HOUSING & REDEVELOPMENT AUTHORITY JANUARY 23, 2008 IMMEDIATELY FOLLOWING THE 7:00 PM EDA MEETING PARKVIEW VILLA, COMMUNITY ROOM B, 965 40'H AVE., COLUMBIA HEIGHTS, MN 1. Call to Order 2. Roll Call 3. Pledge of Allegiance CONSENT AGENDA 4. Election of Officers 5. Approve minutes of October 23, 2007, November 27, 2007 and January 14, 2008. 6. Approve Financial Report and payment of bills for October, November, December on Resolution 2008-01. Motion: Move to Approve the meeting minutes and Adopt Resolution 2008-01 approving the financial report and payment of bills. BUSINESS ITEMS 7. Report of Management Company 8. Resident Council Minutes 9. Citizen Forum* 10. Approve Commonbond Management Contract 11. Resolution 2008-02, Designating Signatories 12. Other Business The next regular HRA meeting will be Tuesday, April 22, 2008 at Parkview Villa. * 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. Pi ease note the public may address the HRA regarding specific agenda items at the time the item is being discussed.) COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) ee In( 0: anuarv , AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: 4 DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Election of Officers BY: Cher Bakken BY: DATE: January14, 2008 M t' f J 23 2008 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 Secretary/Treasurer Tammera Diehm Bobby Williams OPEN Article VII of the Housing and Redevelopment Authority's By-Laws state that four Commissioners constitute a quorum and in turn, election of officers can be held if so desired by the Board. RECOMMENDATION: Move to cast a unanimous ballot nominating and appointing for Chair, for Vice Chair, and for Secretary/Treasurer. RECOMMENDED MOTION: Move to cast a unanimous ballot nominating and appointing for Chair, for Vice Chair, and for Secretary/Treasurer. Attachments HRA ACTION: H:\HRA consent Form 2008\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 Secretarv/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 Secretarv/Treasurer. HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING MINUTES OF OCTOBER 23, 2007 Call to Order - The Regular Meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) was called to order by Chair, Tammera Diehm at 7:02 p.m., October 23,2007, in the Parkview Villa Community Room B, 965 40th Avenue NE, Columbia Heights, Minnesota. Roll Call- Tammera Diehm, Bruce Nawrocki, Dennis Ecklund Jr., Bruce Kelzenberg Absent- Bobby Williams Diehm asked for a moment of silence to remember Patricia Jindra, a board member who recently passed away. Pledge of Allegiance Nawrocki asked to add an item to the agenda- management proposals. Diehm added the item to the agenda as requested. CONSENT AGENDA Approve the Minutes of April 24th and August 28,2007 Meetings and Financial Report for the months of April, May, June, July, August and September 2007, Resolution 2007-04. Nawrocki asked about many line items on the agenda, which Gravemann provided explanation of them. Motion by Nawrocki, second by Ecklund, to approve the meeting minutes and Adopt Resolution 2007-04 Approving the financial reports and payment of bills. All ayes. Motion Carried. BUSINESS ITEMS Report of Management Company Nick Gravemann stated he provided the reports for the last 6 months. Items of interest are: the landscape remodeling project was completed, in July they had the parking lot resurfaced, repair and striped, in September they started a long process to remove and abandon a 20,000 gallon fuel tank buried underground. They first learned ofthe tank over four months ago and he talked to Streetar who directed him to use ProSource. They found a company to buy the fuel for 50 cents a gallon, with proceeds estimated to be somewhere around $9,000, which will be used for things needed at Parkview Villa like a new carpet cleaner, updating the maintenance and trash rooms and various other small projects in the building. He applied for a grant from the Minnesota Housing Finance Agency for $150,000 to replace our aging boiler and hot water systems. The grant is a non-matching grant, which is free money to us. The current systems are working at 65 to 75% efficiency and after replacement they would run 90 to 95% efficient and he would follow up with a rebate from the gas company. The estimated savings after replacement is approximately $330,000 to $340,000. Nawrocki asked where we stand on staff. Gravemann stated they are working with full capacity. Housing & Redevelopment Authority M hllltes October 23, 2007 Page 2 of6 Nawrocki asked if the garbage truck noise problem, has been resolved yet. Gravemann wasn't aware of any problems, but could check into it and that there are four different haulers that provide services to the buildings behind Parkview Villa. Nawrocki stated there were only four Columbia Heights residents filling the vacancies, and asked if we aren't getting follow up responses from current residents. Gravemann stated unfortunately, the Columbia Heights residents aren't ready to move at the time the unit is available, they usually have to sell their home. Diehm asked if there is a policy for how the names are handled if you call them and they can't take the opening. Gravemann stated that it is written in the ACOP. Resident Council Minutes Ecklund Jr. stated he started doing the reports the last couple of months. Mostly the meeting discussions were about the Bazaar, of which he passed out an itemized spreadsheet of the costs and income from the Bazaar. Ecklund went over a few items discussed at their meetings, such as the new maintenance manager and office clerk being introduced. He praised the residents of Parkview Villa for all of their hard work on the Bazaar. Citizen Forum Ron Peters, Unit 414, stated he has concerns with the heat. His heat was clunking and banging last year. Terry Bushe checked it out and said there wasn't anything they can do about it. Again this year they have the same problem. The new maintenance man has checked it out and said he couldn't fix it. Today the heat isn't on, but they still hear the clunking and banging noise so he thinks there is air in the lines. He also expressed his concern about the new light shut off system in the laundry room. Residents aren't used to shutting the lights off and therefore staff is called to go turn the light switch on. Gravemann stated he checked it out and Mr. Peters is correct that it is air in the lines and isn't sure what they can do about it. On the light system it has an automatic shut off system on it if there isn't anyone in the room for 15 minutes it will turn off. Ruth Hillestad, Unit 310, asked why the manager doesn't to their resident council meetings anymore. Gravemann stated he missed one meeting as he had a commitment that he couldn't get out of Fehst stated he felt there should be some representative of the staff at the meeting. Gravemann agreed. Joe Kunza, Unit 802, stated he has a problem with the follow up on his toilet issue, as it hasn't worked for the past 6 months. The toilet tank was cracked, Gravemann glued it together and it looks bad. Nawrocki asked how long Gravemann has been looking for the new toilet, and where did he go to look for it. Gravemann stated he has looked everywhere, the problem is replacing them as they don't make them anymore, as it attaches to the wall. Diehm stated we should think about this, as in the future we will need to remodel our bathrooms so we should look into it. Ecklund Jr. stated he knows some guys that might have some of them and that he could give Gravemann their number or check into it. Housing & Redevelopment Authority Minutes October 23,2007 Page 3 of6 Brenda Germar, Unit 908 stated she used to work for a company called the Re-use Center who she thought would have the toilet. Gravemann stated he tried them and they didn't have any. Diehm asked if Gravemann reported the work orders to HUD or just to us. Gravemann stated he only reports it to the HRA. Diehm stated it might be helpful to report to the HRA that there is some work order issues that the resident isn't satisfied with on his monthly report. Gravemann stated they are trying to find a toilet to replace his with, because this is an old building and the toilets are wall mounted, it Jackie Oshak, Unit 707, stated she was late getting her clothes done and the light went out, so she was sitting in the dark, the washers are so dirty and smelly. Diehm asked Gravemann who is generally responsible for the cleaning of the washers. Gravemann stated it was the caretaker and he will check into this matter. Ken Block, unit 315, stated he would like to pass on to the City that the residents are appreciative of the new path in the park. Fehst stated they hope to have it lighted more and paved a little wider so the cops can drive down there if needed. Betty Finn, Unit 204, stated the new caretaker doesn't start until almost 10pm at night, so how could she clean the laundry room. Gravemann stated she puts in many hours during the day doing different things. Finn stated she vacuums during the night. Diehm asked how many hours we have the caretaker. Gravemann stated 25 to 30 hours per week. She will talk to the caretaker. Ruth Hillestad, Unit 310 asked what the office hours are during the week. Gravemann stated it was 9 to 5. Hillestad stated the office is often closed, during the lunch period and at other times. Diehm asked Gravemann if they have a sign they put up that says when they will be back. Gravemann stated they do have one. Fehst asked if there was a number that residents can call if they need something and stated the cleaners at City Hall clean at night, but are careful of vacuuming when they are hosting a meeting. He felt that Gravemann should check into the staff issues with the cleaning person, when the residents have a complaint. Resolution 2007-05, 2008 PHA Plan and Related Certifications Gravemann stated the quality housing and work responsibility act of 1998 requires all housing authorities to prepare an Agency Plan for the public to review. The draft PHA plan was made available to the Residents Council, Anoka County and the Parkview Villa office with no public comments being received. HUD requires a variety of components and documents to be incorporated into the plan. They are the mission statement, goals and objectives of the agency, an executive summary, statements of needs and resources, and numerous policy statements. Once the HRA board approves the plan, staff will submit the document to HUD electronically. Housing & Redevelopment Authority Minutes October 23,2007 Page 4 of6 Motion by Nawrocki, second by Kelzenberg, to Adopt Resolution 2007-05, a Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) confirming approval of the 2008 Public Housing Agency Certifications of Compliance with the PHA plans and related regulations, and authorizing it's submission to HUD. All ayes. Motion Carried. Resolution 2007-06, 2008 Budget for Parkview Villa North Bob Lindig, Walker Finance Officer stated the proposed 2008 budget for Parkview Villa North is $845,387, which includes $417,156 for capital outlays. Out of that we expect to fund $157, 156 from 2007 and 2008 CFP funds. The balance of $260,000 will be drawn from fund balance reserves and will be used to update the plumbing system; replacing 11 remaining vertical risers at an estimated cost of $114, 000 and to paint the exterior of the building. Supplies and services are expected to increase about 2.2% over this year. Utility costs are expected to increase 5% over the 2007 budget or 15% more than the 2007 year-end estimate. The total proposed revenue is $627,023, which includes rents of $294,200, HUO operating subsidy of $160,079, Capital Funding Program funds of $157,156, investment income of $5,000 and other miscellaneous charges. Nawrocki asked if the $157,000 in addition to the $160,079. Lindig stated it is included. Nawrocki asked how much is in the fund balance reserves. Lindig stated there is almost $613,000, undedicated reserves. Motion by Kelzenberg, second by Ecklund, to Adopt Resolution 2007-06, being a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights, Adopting the 2008 Parkview Villa North Budget of $845,387 and recommending this to the City Council for approval. All ayes. Motion Carried. Resolution 2007-07, 2008 Budget for Parkview Villa South Lindig stated the proposed 2008 budget for Parkview Villa South is $271,517, which represents a 11.9% or $28,878 increase over this year's budget. Of that amount, $37,000 represents increase in capital outlay. The increase in capital outlays if offset, in part, by a reduction in PILOT obligations to Anoka County. Streetar worked with Anoka County to reduce this rate a couple of years ago. The new PILOT payment calculation is based on 5% of shelter rent less utility costs. In prior years the obligation was calculated at 10%. Supplies and services are generally expected to increase about 1.5% over 2007 and utility costs are expected to be 1.5% lower than the 2007 budget, which represents an increase of 13.3% over estimated year-end actual costs for 2007. The proposed gross revenues of $292,932, which includes a $278,064 investment income of $2,500 and other miscellaneous charges. Tenants whose rents already reflect the approved rent structure will increase 3.0%, with others at 4.35%. Ecklund Jr. asked if this budget includes the management fee. Lindig stated it did. Housing & Redevelopment Authority Minutes October 23,2007 Page 5 of6 Motion by Kelzenberg, second by Ecklund Jr., to Adopt Resolution 2007-07, a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights adopting the 2008 Parkview Villa South Budget of $271,517 and recommending this budget to the City Council for approval. All ayes. Motion Carried. Resolution 2007-08, Parkview Villa North Notice to Vacate Policy Gravemann stated the current Parkview Villa North Notice to Vacate Policy states all notices to vacate must be in the form of a 30-day calendar notice. What we are proposing is to change the notice from 30 days to 60 days on 12/31/2007, after the mandatory 30-day review and comment process and a 30-day notice to the residents mandated by HUD. This process will benefit staff by use of better planning for unit turns and releasing of the vacated units. City attorney, Bob Alsop has reviewed the attached document and here to answer any questions the board may have. Diehm asked what is the benefit of changing it from 30 to 60 days. Gravemann stated it will help with turn around of units and all other apartment complexes around town go by this schedule. Nawrocki disagreed as he has been with a management firm for many years and they are still using the 30 day notice. Diehm asked what is standard in Walkers other facilities. Lindig stated it was 60 days. Diehm called for a special HRA meeting on November 2ih at Parkview Villa and requested Gravemann bring the HRA a list of other similar complexes that have this type of notice to vacate schedule. Resolution 2007-09, Parkview Villa South Notice to Vacate Policy-No Action Resolution 2007-10, Parkview Villa North Violence Against Women Act Gravemann stated on January 5, 2006, President Bush signed the Violence Against Women Act into law. This law requires all PHA's to make lease modifications that will incorporate the new law as it pertains to public housing. Attached is a memo from attorney Bob Alsop, Kennedy & Graven outlining the necessary lease modification that needs to occur for Parkview Villa North to be in compliance with the new law. Motion by Kelzenberg, second by Nawrocki, to Adopt Resolution 2007-10, a Resolution approving Parkview Villa North Lease Incorporation of the Violence Against Women Act and to authorize management to make the necessary changes to the lease. All ayes. Motion Carried. Parkview Villa South SidinQ Panels Replacement Gravemann stated in late fall of 2006 several windows in the south building began to leak from around the windows and frames. After further investigation, they learned the windows were not leaking but the panels above and below them were. Staff tried caulking all effected windows around the panels, which seemed to work until just a month or so ago. After further investigation it was determined that the panels were Housing & Redevelopment Authority Minutes October 23, 2007 Page 6 of6 beginning to separate from the building. They caulked around the areas and then contacted four contractors to evaluate the situation. All four contractors found several, water damage areas to the building. As a result, water damage is not only occurring to the outside of the building, but internally as well. The solution is to replace every panel above and below all windows in the south building. The bids received were: 1) MJ Construction at $25, 700; 2) Pagel Exteriors at $27,000; and 3) D. S. Bahr Construction at $28,200. Staff recommends approval of the contract with M.J. Construction and Remodeling in an amount not to exceed $25, 700. Nawrocki asked when the HRA approved the call for bids. Streetar stated under the 429 Project, Street Assessments, the council does have to, but you don't have to here. The law doesn't require this body to authorize these bids. Diehm stated they would authorize other things like the elevator repair. Motion by Nawrocki, second by Ecklund Jr., to approve the bid from MJ Construction for the replacement of Parkview Villa South siding panels in an amount not to exceed $25,700; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Other Business Discussion of the Manaqement Contract Streetar stated there were four management companies that provided bids for management, which are in his office. The bidders were Walker, Stephen Scott Management, Common Bond and Crestview. He will be reviewing the documents and a special meeting will be held in November to discuss the bids and approval. Nawrocki stated he would have thought that staff could have had the information to the board for tonight's meeting. Diehm stated she would suggest staff provide the bids for management with a spreadsheet prior to the meeting so they would have time for review and that a Special Meeting be held at Parkview Villa on November 27th. Ecklund Jr. asked if we could put in the contract that the elevators, hallways and community rooms be vacuumed and the main floor bathrooms cleaned once a weekend. Streetar stated he wanted Ecklund to remind him of this at the November meeting. Adiournment Chair, Diehm adjourned the meeting at 8:30 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\HRAMinutes 2007\HRA 10-23-2007 HOUSING & REDEVELOPMENT AUTHORITY SPECIAL MEETING MINUTES OF NOVEMBER 27, 2007 Call to Order - by Chair, Tammera Diehm at 7:46 p.m. Diehm stated she has received many calls from residents, asking if they could ask questions tonight. She told them to write down their question and pass the paper forward after the board has heard from the management companies they would try to ask some of the questions. Roll Call- Tammera Diehm, Bruce Nawrocki, Bobby Williams, Dennis Ecklund Jr., and Bruce Kelzenberg Pledge of Allegiance BUSINESS ITEMS Resolution 2007-08, Parkview Villa North Notice to Vacate Policy Nick Gravemann, manager stated this update to the lease agreement changes the notice to vacate 30-day policy to 60-days, which would allow them to better plan unit returns and the releasing of the units. He also has contacted Bob Alsop, the HRA attorney, who has reviewed the lease change and stated it is consistent to local, State and Federal housing laws. At the last HRA meeting, the board requested staff conduct a survey of the local HRA's in the metropolitan area, which they did. This included Bloomington HRA, Dakota CDA, Central Multi County HRA, St. Louis Park HRA and several others. They all stated they have a 60-day notice to vacate policy in place. For Parkview Villa North this would not only make it easier for management to release the unit, but would give current Columbia Heights residents a little more time to sell their homes. Ecklund Jr. stated you want us to do a 60-day notice plus one day, but you said people that you call to move in, you won't give them the same opportunity to wait the 60 days. You said you would skip over the name and keep calling down the list for someone that could move in sooner. I don't think that is fair. Gravemann stated he actually has to have a notice in his hand before he can call someone to tell them he has an apartment available. So if he has a 60-day notice in hand and you have to give a 60-day notice to vacate, everything equals out. If he had a 30-day notice to vacate in hand and you had to still give a 60-day notice, you might have to pay double rent one month, or you might not be able to rent. If you're a current City of Columbia Heights resident that might not be beneficial to you. Diehm stated whatever was provided last time; we know that this information given will work. Nawrocki stated he would speak against the motion, it is against the tenants, a 30-day notice isn't so bad. Williams stated he is going to vote for this as they did a survey that has ten different HRA's, which have a 60-day notice and proves that it works. Motion by Kelzenberg, second by Williams, to Adopt Resolution 2007-08, a Resolution Approving Parkview Villa North, Notice to Vacate Policy and to authorize Management to make the necessary changes to the lease agreement. Upon Vote: Szurek-aye, Williams-aye, Kelzenberg-aye, Nawrocki-nay and Ecklund- nay. Motion Carried. Housing & Redevelopment Authority Minutes November 27, 2007 Special Meeting Page 2 of? HRA RESOLUTION 2007-08 RESOLUTION APPROVING PARKVIEW VILLA NORTH NOTICE TO VACATE POLICY WHEREAS, The board of Commissioners of the Housing and Redevelopment Authority of Columbia Heights, Minnesota, at the recommendation of management and legal counsel, find it necessary to revise the Parkview Villa North Notice to vacate policy. NOW THEREFORE BE IT RESOLVED, by the board of Commissioners for the Housing and Redevelopment Authority of Columbia Heights, Minnesota, that the Notice to vacate policy fOf Parkview Villa North is hereby amended as attached hereto as Exhibit A. ADOPTED THIS 27th day of November 2007. Resolution 2007-09, Parkview Villa South Notice to Vacate Policy Diehm stated we have already addressed the issues for this agenda item in the last item. Motion by Kelzenberg, second by Williams, to Adopt Resolution 2007-09, a Resolution Approving the Parkview Villa South, Notice to Vacate Policy and to authorize Management to make the necessary changes to the lease agreement. Upon Vote: Diehm-aye, Williams-aye, Kelzenberg-aye, Diehm-aye, Ecklund-nay, and Nawrocki-nay. Motion Carried. HRA RESOLUTION 2007-09 RESOLUTION APPROVING PARKVIEW VILLA SOUTH NOTICE TO VACATE POLICY WHEREAS, The board of Commissioners of the Housing and Redevelopment Authority of Columbia Heights, Minnesota, at the recommendation of management and legal counsel, find it necessary to revise the Parkview Villa South Notice to vacate policy. NOW THEREFORE BE IT RESOLVED, by the board of Commissioners for the Housing and Redevelopment Authority of Columbia Heights, Minnesota, that the Notice to vacate policy for Parkview Villa South is hereby amended as attached hereto as Exhibil B. ADOPTED THIS 271h day of November 2007. Management Services Agreement Diehm stated staff received a letter yesterday from Crest View stating they are withdrawing their proposal. They are currently committed to several other projects in the area and felt this would not be the right time for them to be considering this project as well. They have made an offer to provide free wellness clinics at the building if the management company decides this is something they are interested in having and also offered to provide homecare services if needed. Nawrocki stated in the RFP under specifications, it states: 1) in no event will the agency permit modifications to the proposal after they are submitted. He would think that removing their proposal represents a significant modification; and 2) the person responsible for specifications was Streetar and he did not receive the letter. Diehm stated he was copied on the letter and she would disagree with him as a management company has the right to withdrawn their bid if they so choose. Housing & Redevelopment Authority Minutes November 27, 2007 Special Meeting Page 3 of? Nawrocki stated he didn't intend to, but thinks that there should be some formalization acknowledging the with drawl of the bid, because the specifications very clearly states you can't modify your bid after you submit it. Diehm ask for a motion to formalize this. Motion by Nawrocki, second by Kelzenberg, to acknowledge the withdrawn proposal from Crest View. All ayes. Motion Carried. Diehm asked to have a representative of each of the management companies come forward and give a little introduction. Denny O'Donnell, Walker ElderCare Services, introduced Nick Gravemann, Manager, Todd Klien, Nick's boss and Bob Lindig, Walker Finance Director. They have been at Parkview Villa since 2004 and enjoyed providing services to the residents of Parkview Villa. He just looked at the budget prior to the meeting and the good news is that through October we are $100,000 to the good with the budget. We have kept the building full since they took it over in 2004 and have been successful in administering the Capital Plan for the City. Going forward they are proposing the same increase that they have had for the last four years; the cost of inflation. Stephen Schachtman, President of Steven Scott Management introduced Barbara Halverson, director of asset management. They manage approximately 600,000 apartment units throughout the twin cities, they did provide a proposal the last time, and that they are open to any questions. Lucia Clausman, director of public housing for CommonBond stated she brought with her Sheena Anderson, director of their compliance department, James Mitchel, director of facilities manager and Richard Hutsell, Vice President. They have submitted the proposal and would be willing to answer any questions. Nawrocki asked Common Bond about annual increases, is it the same price for 5 years. Hutsell said yes that is the way they proposed it. Nawrocki asked if the contracts have been looked at by staff as far as the procedure they would use to provide financial services. Streetar stated all of the proposers have a lot of experience in financial accounting and any of the systems would be fine. Ecklund Jr. stated he spoke to Common bond on the phone about how quickly they would replace staff if they needed to and wanted the other two companies to answer the question also. Common Bond-stated they have corporate staff that can back up other staff, and they have roving managers that can come in. Walker-they would also be able to hire or provide staff pretty quickly. Steven Scott-they have staff that rotate from housing facility to housing facility until the I-lousing & Redevelopment Authority Minutes November 27, 2007 Special Meeting Page 4 of? position has been filled, you certainly don't want to hire on someone too quickly. Nawrocki stated with Steven Scott it doesn't look like they have had very much experience with senior housing or HUD and ask them to clarify this. Halverson stated for the last four years they have done senior management, tax credit, independent senior living and do have experience working with HUD. Williams asked Gravemann how has it been working with residents in the last 6 months, with the troubles they had in the past, are they any better. Gravemann stated most of the time it is going pretty good. Williams stated the board did receive a letter from a resident that said they felt he was the best manager we've had. Kelzenberg asked how many people would manage this building and what would the hours of operation be? CommonBond- Manager, assistant manager, maintenance person and a half time caretaker. What they usually do is look at it as on a 1 t0100 units basis, hours would be 8:30 to 4:30pm with a 24 hour answering service and corporate maintenance staff that fills in on a rotating basis. Walker-they would keep the current staffing levels, unless there is a position that isn't filled. They currently have a full time office manager, maintenance worker, office assistant and part time caretaker. Steven Scott- they anticipate having a full time manager, administrative person and maintenance, and several part time caretakers, which would work 7 days a week. During the week they would propose they would have office hours of 8:00 to 5:00. They could propose to have some part time office hours on the weekend. Nawrocki asked Common Bond if there would be staff at Parkview Villa doing the financials. Hutsell stated they would be located in the St. Paul office. Diehm stated she would now start with the questions of the residents. What kind of training do they provide for office staff? Common Bond-stated they do extensive training, compliance training, maintenance is involved, safety training, REAC training, etc. on a monthly basis. Walker-stated they have extensive training programs, initial training, and more during the year as needed. Steven Scott- they are required to take repeated training continually throughout the year, and have a training coordinator. How do you handle issues between management and residents and do you have someone ready to manage the building? Common Bond-senior population is an issue in itself, communication is important in any case, listening, cooperatively problem solving. We do not have anyone I-lousing & Redevelopment Authority Minutes November 27, 2007 Special Meeting Page 5 of? currently identified at this time but do have some employees in mind. Walker- as you know we had a different manager here and agreed they needed a change and we did make that, have brought in outsiders, and are willing to go that extra mile down the road at this time. Steven Scott-they would invite you to check out their references. A regional manager would be assigned to the facility, then it would come to Steve or herself, mediation training is also available. She did not have anyone specifically in mind at this time to manage. Would cleaning be done during the day, would window washing include inside and outside, and would you provide weekend vacuuming in common areas? CommonBond- Yes, yes and yes. Walker- Gravemann stated their answer would be yes also. Steven Scott- yes, yes, yes. It is important that the passing area the residents see should be cleaned and it should be done 7 days a week. Does your organization have a dress code for your employees who would be working here on site? Steven Scott- yes they do. Walker- you have witnessed our dress code. CommonBond- they are all in the appropriate attire with a Common Bond label on it. Would your manager's office be open to suggestions or comments and would we feel welcome to do so? Common Bond- We do not necessarily have a suggestion box in the office but, we have an open door policy and encourage managers to have resident community meetings as well as do a resident newsletter. They do not have a suggestion box at all of their properties, but they could certainly address that. Walker- would invite residents to stop into the office at any time and that there is a suggestion box next to the rent drop box. Steven Scott- they do not have a suggestion box, but would be open to having one, and certainly encourage residents to stop in the office. What experience do you have working with a City HRA board? Steven Scott- we have multiple partners, we have a lot of one on one relationships, worked with MHFA, large institutions, insurance companies, you have to learn the individual. Our company also takes an active involvement with every City that we work to try to understand their needs and that they understand ours. Walker- we certainly make it a point to communicate with all residents and the board. Common Bond-for 35 years we have been involved with community engagement, made it a common practice, we work with local HRA's, Morrison county, Minneapolis and St. Paul Public Housing Authorities, Red Wing and many others. We look forward to working with you. Housing & Redevelopment Authority Minutes November 27, 2007 Special Meeting Page 6 of7 Diehm asked if there were any resident questions that haven't been covered. Resident, Arlan Carlson, Unit 605 asked of the two companies that are coming in, what would they entice the residents with? CommonBond- experlise. They recently finished a rehab and refinance of an occupied rehab, they have a superb staff. The hallmark is providing customer service. Steven Scott- they have the finest compliance staff in this state. All three bidders tonight are bringing to the residents the same things, your front door is our front door, training, sensitive, caring staff. Williams asked Walker how the rehab of the floors in the norlh building went this year, were people happy? Gravemann stated everyone was satisfied. Resident, Jan Honeyford, Unit 205, stated she is hoping that when wepick a management corporation, that you pick a new one, that knows how to work us, has compassion for us, are going to like us, and know how to deal with us. Like Ecklund said, we have all ages in this building and she has been very dissatisfied. We need somebody that does have a caretaker 5 days a week, one that doesn't vacuum at 10 o'clock at night, and a maintenance man on duty. It has been chaos around here for months. Resident, Joe Kunza, Unit 802, stated he had two things to say. One is that he is thankful for the renovation of his aparlment. Thanked the City Council for approving the improvements, we really appreciate all the work you do for us. There is five more floors to go, if you come in with a whole new team, it will be a whole new set up than what we already have. How are they going to handle that. Secondly, the Federal Communications Commission is about to rule that aparlments who now have satellite dishes. How would we be able to handle this transition. Diehm stated with the first question, the renovations will go on as scheduled and we will make sure that it happens. Diehm asked if any of the bidders have heard about satellite problems in other buildings? CommonBond-it is their understanding that all consumers have a right to get their signal from any source that is available to them. They have a right to have satellite TV, but doesn't mean that you can automatically put one up on a building. We would have to look into the building and the statistics. Ecklund Jr. stated we already looked at this and determined that we all would have to have dish satellites even if you didn't want it. Nawrocki stated we do have a telecommunications commission in the City, which watches over this for our City. Diehm thanked all three bidders for coming and for answering our questions. At this time she would like to close the open forum and address the board. Housing & Redevelopment Authority Minutes November 27, 2007 Special Meeting Page 7 01'7 Ecklund Jr. stated he wanted to thank Streetar for working so hard for us, as this is one of his last few days with the City. (Everyone Applauded) Kelzenberg stated he went through the proposals and they all did a good job. He felt Walker could have done a little better job working with the residents, through customer service. All in all they did a good job and there is no way to please everyone in this building. Nawrocki stated this facility has been a part of his political life. When he was mayor they felt it was important to build a facility for our seniors. He spoke of how he and the City Council worked together to get the funding from the state for the building many years ago. Walker has done a good job with reports for HUD, with maintenance of the building, but does have issues with the current management staffing. He would opt to see the change in management and felt most residents would agree with him. Steven Scott does have experience, but not with seniors very much, and their costs were a little bit high. He would support Common Bond. Ecklund Jr. stated we need a change. Communication and getting along with residents is important to him. He would support CommonBond. Williams stated Ecklund Jr. as been a representative of this board for the residents of Parkview Villa, trusted his judgment and would support Common Bond. Diehm stated staff provided a compellation, which came back strongly recommending Walker. She has been here through two management companies, which we had issues with both, and would support Common Bond. Motion by Williams, second by Kelzenberg, to Approve the Contract with Common Bond for Management Services beginning February 1, 2008 for Parkview Villa North and South; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. Motion Carried. Adiournment Chair, Diehm adjourned the meeting at 9:20 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\HRAMinutes 2007\11-27-2007 Special HOUSING & REDEVELOPMENT AUTHORITY SPECIAL MEETING MINUTES OF JANUARY 14, 2008 Call to Order - The Special Meeting of the Columbia Heights Housing & Redevelopment Authority (HRA) was called to order by Chair, Tammera Diehm at 6:02 p.m., January 14, 2008, City Hall, Conference Room 1, 590 40th Avenue NE, Columbia Heights, Minnesota. Roll Call- Tammera Diehm, Bruce Nawrocki, Dennis Ecklund Jr., and Bruce Kelzenberg Absent- Bobby Williams Guest- Mayor, Gary L. Peterson Pledge of Allegiance BUSINESS ITEM Presentation of Common bond Staff Richard Hutsell, Vice President of Commonbond introduced Lucia Clausen, Director of Public Housing and Laura Sheak who will be the new Manager for Parkview Villa starting on February 1st. Hutsell stated Laura Sheak has been the a property manager for 20 years, for the past 12 years was manager at Heights Manor, has managed two of their senior and handicap housing facilities in Little Canada called Garden Terrace and Terrace commons. They chose her for the position as she has a lot of experience with this type of housing unit. The other positions necessary for Parkview villa are being advertised in the newspaper. Laura Sheak stated she received her degree at the University of Minnesota in Parks and Recreation Administration with a therapeutic therapist emphasis, which she then worked in nursing homes, from there she moved into rehab and got into housing. Ecklund asked what are the office hours going to be? Lucia Clausen stated they would be the same as all of the Commonbond facilities, 8:00 am to 4:40 pm. Clausen also stated they would be hiring two part time caretakers, which would allow for the additional coverage needed on the weekends, a full time maintenance person, and a full time office assistant for Laura. Fehst asked if they would be hiring any of the current staff. Nawrocki stated he did get a copy of the proposed contract and had the following issues: 1) it was his understanding that the board would be included in the interviewing process; 2) he could not see a financial control area in the document; and 3) the contract identifies Commonbond as the agent in a couple of areas and then there is once or twice they are listed as consultants. Clark said Mr. Nawrocki, you may recall that when I gave you the contract copy that I told you staff and the City attorney haven't looked at the document yet. It was just a preliminary draft at that time. We are now close to having everything finalized for board approval at next weeks meeting. I found out this week the attorney would be inserting Housing & Redevelopment Authority Minutes January 14, 2008 Special Meeting Page 2 of3 the HUD requirements to the draft, which we should have to Hutsell by tomorrow. Diehm asked Hutsell what legal services they plan on using, as when Walker started they were surprised they were using their own legal service for an issue that came up. We would prefer you use the City attorney from Kennedy & Graven for anything that would come up. Hutsell stated he didn't see a problem with that. Sheak asked if we include management at the Resident Council meetings. Ecklund stated yes, she would give the residents a report of any issues that have come up in the building like carpet installation, parking problems, landscaping replacement, etc. Clark asked Common bond staff how the transition is going for them; are they getting the information they need from Walker staff. Hutsell stated due to Mr. Lindig being out of the office for personal reasons in December, the didn't get the process started as early as they would have liked to, but in the last week things are moving along. Clausen stated she has been in contact with Nick bye-mail and has a meeting set up for Wednesday with him and her Compliance Director to go over the files, the 50058's and then on Friday would be doing a physical tour with her maintenance team. Clark asked if she was aware that there are a lot of reports that are late for 2007. Clausen stated that Lindig assured her that he would be getting those done for September through December of 2007 by tomorrow. Hutsell stated they talked to Walker about the audit, which would be preformed by them. The one thing the board should be aware of is that when Walker closes the books in mid-February, their financials may be a few days late. Nawrocki asked if we shouldn't have the contract end at the end of the year rather than a month into the new year. Joe Kloiber, assistant finance director stated he would prefer that it would have started somewhere after January 31st, because certain year end closing work can't be completed in January, and that the HRA may need to have some kind of agreement outside of their current one with Walker to continue working on the financials until they are complete. Diehm stated Mr. Nawrocki prefers the way our financial reports are laid out and asked if this is something staff could possibly work out ahead of time. Clausen stated Cher Bakken has already talked to her about this and provided a copy of the current financial report for review. Clark stated HUD said we are capitalizing the end of three years of Capital Funds, and wondered if this was common. Clausen stated that it was. You are usually working with three years of Capital Funds, just depending on the projects that the money has been allotted for. Hutsell stated the banking relationship Commonbond has with Western Bank is very Housing & Redevelopment Authority Minutes Janumy 14,2008 Special Meeting Page 3 of3 convenient for their staff, with the ability to scan in checks, on-line banking, and that they use them for approximately 90 facilities they manage and wanted to know if the board would consider using them. Fehst stated Northeast Bank has been used by the City for many years and that the City prefers to use a local company as often as possible. Bill Elrite, Finance Director stated we do not have a cost for checks as we have all of our accounts there. Clausen stated her accounting department is going to check with Northeast Bank to see if they have any of the conveniences that they are currently using. Hutsell suggested they possibly separating the operating and reserve accounts into two banks. Diehm stated the next HRA meeting would be on Wednesday, January 23rd at Parkview Villa. Hutsell thanked the board for the opportunity to work with them and that his staff was looking forward to working with the City. Adiournment Chair, Diehm adjourned the meeting at 6:42 p.m. Respectfully submitted, Cheryl Bakken Recording Secretary H:\HRAMinutes 2008\1-14-2008 Special COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) Meeting of: January 23, 2008 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: 6 DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Bob Lindig BY: DATE: Januarv 15, 2008 BACKGROUND: The bound Financial Report for the months of October, November, and December 2007 on draft Resolution 2008-01 is attached for review. RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2008-01, Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) approving the Financial Statement and Payment of Bills for the months of October, November and December 2007. HRA ACTION: H:\HRAConsent2007\October, November, December Fin Rep 2007 HRA RESOLUTION 2008-01 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR OCTOBER, NOVEMBER AND DECEMBER OF 2007 AND PAYMENT OF BILLS FOR THE MONTHS OF OCTOBER, NOVEMBER AND DECEMBER OF 2007. WHEREAS, the Columbia Heights Housing and Redevelopment Authority (HRA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the HRA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the HRA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the months of October, November, December of 2007 and the list of bills for the months of October, November, December of 2007 are attached hereto and made a part of this resolution; and WHEREAS, the HRA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Housing & Redevelopment Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Housing & Redevelopment Authority. Passed this _ day of ,2008. MOTION BY: SECONDED BY: AYES: NAYS: Chair Attest by: Cheryl Bakken, Assistant Secretary H:\Resolutions2008\HRA 2008-01 Date: TO: FROM: RE: January 11,2008 Cher Nick Gravemann, Housing Manager October 2007 Management Report for Parkview Villa Parkview Villa There were 5 police calls for the month of October I unwanted person, 3 medical, and I found bicycle. WArT LIST 23 applicants for Parkview Villa North (resident C.H.) 18 applicants for Parkview Villa North (employed in C.R.) 65 applicants for Parkview Villa North (non-resident) 04 applicants for Parkview Villa South (resident C.H.) 20 applicants for Parkview Villa South (non-resident) 00 applicants for Parkview Villa South 2BR (resident) o I applicant for Parkview Villa South 2BR (non-resident) Occupancy (please note this is current) North is 101 out of 101 South is 45 out of 45 Move outs: 712-1 bedroom 9/3 0/2007 219-1 bedroom 10/30/2007 Move ins: 712-1 bed 10/15/07 from Wait List 219- Ibed 11/15/2006 fi"Om Wait List Maintenance Report: . 60 out of 60 work orders were completed in the month of September. Date: TO: FROM: RE: January 11,2008 Cher Nick Gravemann, I-lousing Manager November 2007 Management Report for Parkview Villa Parkview Villa There were 7 police calls for the month of November 1 suspicious person, 4 medical, 1 Check well fair, and 1 stolen vehicle recovered. W AU LIST 23 applicants for Pat'kview Villa North (resident C.H.) 18 applicants for Parkview Villa North (employed in C.H.) 65 applicants for Parkview Villa North (non-resident) 04 applicants for Parkview Villa South (resident C.H.) 20 applicants for Parkview Villa South (non-resident) 00 applicants for Parkview Villa South 2BR (resident) 01 applicant for Parkview Villa South 2BR (non-resident) Occupancv (please note this is current) North is 101 outofl0l South is 45 out of 45 Move outs: 503-1 bedroom 11/30/07 Move ins: 503-1bed 12/1/2007 fl'om Wait List Maintenance Report: . 72 out 01'72 work orders were completed in the month of October. There were no held over order for the month of October. Date: TO: FROM: RE: January 11, 2008 Cher Nick Gravemann, Housing Manager December 2007 Management Report for Parkview Villa Parkview Villa There were 5 police calls for the month of December 1 suspicious person, 2-check welfare, and 2 social services referrals WArT LIST 23 applicants for Parkview Villa North (resident C.H.) 18 applicants for Parkview Villa North (employed in C.H.) 65 applicants for Parkview Villa North (non-resident) 04 applicants for Parkview Villa South (resident C.H.) 20 applicants for Parkview Villa South (non-resident) 00 applicants for Parkview Villa South 2BR (resident) 01 applicant for Parkview Villa South 2BR (non-resident) Occupancy (please note this is current) North is 101 out of 101 South is 45 out of 45 Move outs: Move ins: Maintenance Report: . 42 out of 42 work orders were completed in the month of October. There were no held over order for the month of December. Resident Council Meeting January 152008 The meeting was called to order by council president Dennis Ecklund at 7pm with a salute to the flag. Present were Vice president Ken Bloch, Secretary Jessie Chudek, Treasurer Jan Honeyford, Manager Nick Graveman And incoming new treasurer Ray Scotte. The secretary report was read. The treasurer's report was given as Savings $2272.26 Checking $5691.03 Petti cash 81.47 Jessie gave Leonard's Monday morning coffee club report as of Jan.1 5t $65.46 Jessie gave the round table report Dec. had $15.23 spent $10.66 On hand $4.57 Jackie gave the bingo report as on hand $60.50 Cecelia gave the sunshine report .Cards were sent to Asnake Helen Smith Ruth Finch and Dianne Powell $5.00 each. Helen Smith in 708 passed away today. Terry White introduced our new resident as Ralph Human in #224 Vivian gave the entertainment report. There will be a play at the Old Log Theater called "Incoruptable" April 30 Price of the play is $16.50 Lunch is $11.75 Council will pay half also for the bus. Also the Silver Star women would like to entertain us at the price of $75.00 afternoon or $100.00 for evening The V.F.Wis having their pork tenderloin dinner Feb.2nd at 4p.m.Cost is $6.00 The council will pay half. There will be a sign up sheet February 1ih Tuesday evening the V.F.W. ladies will be here to serve us cake and coffee. February 14th Thursday we will serve pizza with bingo to follow as our Valentine Day treat. February 1 ih Sunday we will have mens bingo. Everyone is welcome. We were introduced to the new management staff from Common Bond Richard Hutsell Vice president. Lucia Clauson from Portland Oregon Laura Sheak Secretary. has 20 yrs experience. Maintainence will be full time Caretaker will live on sight Office hours will be 8am to 4.30pm 66 people attended Money winners Dorothy Salwai, John Aryhur, Tom Pilarski, Betty Morrison Meetind adjouned at 7:40pm Submitted by Jessie Chudek Resident Council Meeting December 10th 2007 The meeting was called to order at 7 p.m. by Council President Dennis Ecklund with a salute to the flag. Present at the meeting was President Dennis Ecklund Vice President Ken Bloch, Secretary Jessie Chudek Treasurer Jan Honeyford and manager Nick Graveman. Nick thanked the residents for moving their cars during the snow removal also the heating system to the garage will be worked on next year. Jessie read the minutes of the November 12th and December 4th meetings Jan read the treasurer's report checking $7108.03 Savings $2264.84 Petty cash cash$3491.00 Jessie gave Leonard's Monday morning coffee report $49.30 on hand.Jessie gave the round table coffee report $8.48 on hand Jackie gave the bingo report balance $104.50 Cecelia gave the Sunshine report cards were sent to Vivian Fayhe,Lyn Miner C!nd Ron shumaker. Denny wecomect4J our new resident in #219 as Virginia Lamoni(?) Jan mentioned the Northeast bank invites us all for coffee on Friday December 14th between the hours of 9am to 6 pm If you have suggestions as to entertainment or other concerns write them down and drop them in the rent slot. In November we voted to have Ray Scotte as our new treasurer. The vote was unanimous. Marilyn Peters manager at SAC A sent a thank you for our donation. Don Camp asked when we will get a light shining on our flag outdoors. For now it was reported by Nick that workers were unavailable. The square Peg catered our Christmas dinner The price was $900.00 for 90 dinners ordered.There were 30satisfied with the food and 5 against. We will send a thank you to the V.F W. for the Christmas centerpiece. Alvina will be in charge of a New years eve Party December 31st at 7 p.m. Dorothy would like helpers for sewing hats and mittens for the Columbia Heights grade school children. Money winners Dorothy Salwei #25 Diane Powell #15 Ken Bloch #1 Ruth Finch #33 Seek the sun will be here December 19th They will bring food. Tuesday Dec.11 thwe will have the bell ringers and choir Motion to ajourn by Cecelia SECONDED BY Theresa. 56 people attended Submitted by Jessie Chudek Resident Council Meeting November 1 zlh 2007 The meeting was called to order by President Dennis Eklund at 7 P.M. with a salute to the flag. We also had a prayer for Veterans Day by Vi Tabb. The President, Vice president, Secretary Treasurer also Nick the manager were all present. Nick thanked the residents for their patience during the work on the garbage shoots.The south building leaks will be repaired. Jan complained about the vacuum cleaning late at night Residents have been asked about a blue car in the parking lot,it will be towed Tomorrow. Nov20th will be window washing day Do not hang notes on doors ,Go to Nick instead Jan gave the Treasure's report Petty cash $103.54 checking $287.28 Savings2264.84 Deposits $6287.28 Sunshine report was given by Cecelia. Cards were sent to Norma Dunkin, Mary Lee Hagen, Marge Buczynski and Sharon Shandler. Jackie gave the Bingo report Jessie gave the round table report also read Leonards Monday morning coffee club report. Welcome person was not present so Denny Welcomed our new resident in apartment712 as Wendy Madee Vivian ~ave the entertainment report. Dec.3rd is 4H we will supply the beverage, Dec. 8t is the Christmas Dinner with Sister Larice and group entertaining Dec. 11th at 7 P.M. We will have the bell ringers Dec.19th We will have Oak Hill church with "seek the sun" It was voted on to donate $100.00 to SAC.A food bank. Also to each of the Columbia Heights grade schools $50.00 so the nurse can buy clothes for .........."'...,............... '....,~'I..... ~.""'........ ....................... ............................ ........ ..-........ --.. --J -.-.,.-- .-- children who may have "accidents" during school hours. The $100. bingo was voted down and it was suggested to buy things that are needed such as a vacuum cleaner. We will cancel all bingo on Thursday nights if the noise continues when the numbers are being called back. Nominating committee nominated Ray Scottee as the new treasurer. The 30 day notice will go up tomorrow. The new phone list will be done by Floor 1&2 by Dorothy Shafer Floor 3&4 by Vivian Fayhe Floor 6 by barb Camp Floor 8 by"l'S Alvina Stieren Floor 7 and 9 by Wendy Madee. Money winners #19 Olive Stanislowski #2 Denny Ecklund #8 Ruth Hillsted #43 Irene Westlund. The E>D>A> Meeting is 7P.M Nov.2yth The H.R.A. meeting follows Everyone is welcome. Motion to adjourn by Dorothy Seconded by Ron Schumaker at 8 P.M. . ". Submitted by Jessie Chudek. .. !Jl)ttl!': . d 1!t;{,;,t!t'ct . COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of January 23, 2008 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: 10 DEPARTMENT: HRA DIRECTOR APPROVAL ITEM: Common Bond Contract Discussion BY: Scott Clark BY: DATE: January18, 2008 BACKGROUND: On November 27,2007 the Housing and Redevelopment Authority (HRA) reviewed and accepted the proposal for management services from CommonBond, effective on February 1, 2008. The next step in this process is the preparation of a formal contract in addition to internal transition activity between CommonBond and Walker. At the time of this writing we have the following items for your review: 1) Initial Management Agreement, dated February 1, 2008, presented by Common Bond to the staff and 2) A memorandum from our Attorney regarding additions and/or modifications to the initial agreement. (Common Bond has agreed in principle to these suggestions). The Community Development Department and Finance Department will be meeting on Tuesday to go over a significant number of items that need to be clarified to assure consistency with the original RFP. Staff views that the majority of change will be technical contract language amendments and not major items of substance. It is staff's goal to have a "final" contract at the meeting that we can discuss in detail. Obviously, it will be the HRA's decision if they are in agreement with the contract terms and if the Commissioner's desire more time to digest the document, a special meeting may have to occur in order for this contract to be let prior to the takeover date of February 1, 2008. RECOMMENDATION: No recommendation at this time subject to contract review and negotiation by staff back to CommonBond. RECOMMENDED MOTION: To be determined at the meeting depending upon contract language and review. HRA ACTION: Robert A. Alsop 470 US Bank Plaza 200 South Sixth Street Minneapolis MN 55402 & (612) 337-9224 telephone (612) 337-9310 tax htlp://www.kcnncdy-gravcn.com CHARTERED MEMORANDUM TO: Scott Clark Community Development Director City of Columbia Heights FROM: Bob Alsop Kennedy & Graven, Chmtered DATE: January 18, 2008 RE: CommonBond Management Agreement The HRA Board should consider adding the following provisions to the Management Agreement with CommonBond Housing: I. The agreement needs the following provision for compliance with the Minnesota Data Practices Act: Data Practices Compliance. To the extent required under the Minnesota Government Data Practices Act, Milmesota Statutes, Section 13.01 et seq. ("the Act"), the Agent agrees to maintain all government data, as that term is defined in the Act, consistent with the requirements of the Act. To the extent required under the Act, the Agent will not release or disclose the contents of data classified under the Act as not public to any person except at the written direction of the Owner. The Agent agrees to defend and indemnifY the Owner from any claim, liability, dmnage or loss asserted against Owner as a result of the Agent's failure to comply with the requirements of this section unless such failure to comply results from Owner's written direction. 2. If CommonBond is responsible for filing HUD repOlts, I would recommend the following provision be added as Section 5.4: The Agent shall prepare and submit to the U.S. Department of Housing and Urban Development all reports which the United States Government may require of the Owner. The Agent shall be responsible for maintaining the books and account of the Project in accordance with accounting requirement of the U.S. Depmtment of 327565vl RAA CLl60-81 Housing and Urban Dcvelopment. The Agent shall be also responsible for the preparation, execution and submission of all financial reports required by the Statc of Minnesota and the U.S. Department of I-lousing and Urban Developmcnt. These reports shall be provided within the time period prescribed by the United States Government. The Owner shall be provided with a copy of each report submitted to the U.S. Department of Housing and Urban Development. If the Agent is unable to provide a report within the prescribed time period, the Agent shall advise the Owner of such fact no later than five days after thc date that the Agent becomes aware that it will not be able to submit the repolt within the prescribed time period. The Agent shall provide information regarding the status of cach overdue repOlt at each regular meeting ofthe Owner. The Owner, the U.S. Department of I-lousing and Urban Development and the Inspector General of the United States or their duly authorized representatives shall have full and fl'ee access to the Premises and to all books, documents, papers; and records of the Agent that are pertinent to its operation, including the right to audit and to make excerpts and transcripts from such books and records. The Agent shall maintain all files and records relevant to this agrecment in accordance with the approved record retention schedule provided by the I-IUD oftice. 3. The following provision should be included under Section 7 of the Management Agreement - it relates to selection of tenants and their continued occupancy of the units: The Agent shall accept as tenants of the Project only those persons and families certified as eligible by the Agent in accordance with policies and provisions established by the Owner and approved by the U.S. Department of Housing and Urban Development and from time to time reviewed and altered by the Owner and the Agent and approved by the U.S. Depattment of Housing and Urban Development. The Owner may review Agent's determinations of eligibility and if a difference of opinion regarding eligibility exists, the Owner's determination shall prevail. Rent for each person or family shall be determined by the Agent in accordance with the Owner's approved rent schedule. No dwelling shall be rented for other than residential use by the lessee and the lessee's immediate family as specified in the lessee's application for housing. The terms of occupancy of the Project by eligible tenants shall be governed by the Owner's Statement of Policies Governing Admission and Continued Occupancy of Low Rent Public Housing (the "Statement of Policies") as the same may bc modified from time to time by the Owner and approved by the U.S. Depattment ofl-Iousing and Urban Development. 4. The following provision should also be included under Section 7 - it relates to the Agent's obligations to comply with Federal procurement requirements for the facility. 327565vl RAA CLl60-81 2 The Agent shall on behalf of the Owner, develop specifications for the purchase of materials, Agent's services and insurance for the Project. The Agent is authorized to procure and enter into contracts for supplies, materials, equipment and services required in the maintenance, repair and operation of the Premises if the amount is less than and is made pursuant to the Owner's approved budget and plan of operation. All purchases and contracts shall be made by the Agent in accordance with the Owner's Procurement Policy, Minnesota Statutes, and the Annual Contribution Contract between the Owner and the United States of America. Full credit shall be given (0 the Owner for all discounts of any nature obtained by the Agent through the operation of the Project. The Agent is authorized to purchase all materials, equipment, tools, appliances, supplies and services necessary to properly maintain and repair the Premises in accordance with the Operating Budget, the HUD's Procurement Policy, and limitations established by this agreement. 5. The following provision obligates CommonBond to comply with celiain fair labor standards: The compensation to be paid Agent's employees will be as prescribed by Wage Determinations of the U.S. Department of I-lousing and Urban Development to be obtained by Agent according to the mles and regulations of the U.S. Depmiment of Housing and Urban Development. The compensation to be paid management and administration employees will be subject to Agent's discretion. However, all employees of Agent working on the Premises shall be paid a wage comparable to other employees of (he Agent based on job duties, skills, responsibilities and levels of supervision received or provided. The Agent shall insure that each contract entered into by the Agent or the Owner in connection with the construction, completion, repair or operation of the Premises is in compliance with the statutory and regulatory labor standards requirements set forth in the Annual Contributions Contract between the Owner and the United States of America and the regulations and directions of the U.S. Depmiment of I-lousing and Urb~Ul Development and the U.S. Department of Labor. Please feel free to contact me if you have any questions. RAA 327565vl R^^ CLl60-81 3 MANAGEMENT AGREEMENT FOR Columbia Heights HRA 590 40th Avenue N.E. Columbia Heights, Mn 55421 Parkview Villas North and South Beginning: February 1, 2008 Ending: January 31,2013 Owner: Columbia Heiahts HRA AGENT: Common Bond Housina Rev. 02/08 LIST OF PROVISIONS: Section APPOINTMENT OF THE AGENT 1 1.1 Appointment and Acceptance 1 1.2 Definition and Description of the Premises 1 1.3 Term 2 1.4 Meetings With the Owner and the Agent 2 Section 2 EMPLOYEES OF THE AGENT 2 2.1 The Agent's Authority to Hire 2 2.2 Employee Expenses 2 2.3 The Agent's Authority to Fiie Returns 2 2.4 Workers' Compensation Insurance 2 Section 3 BANK ACCOUNTS 3 3.1 Operating Receipts and Expense Account 3 3.2 Security Deposit Accounts 3 3.3 Fidelity Bond 3 Section 4 RECEIPTS & DISBURSEMENTS FROM OPR. ACCOUNT 4 4.1 Collections and Delinquencies 4 4.2 Payments and Expenses 4 4.3 Security Deposits 5 Section 5 FINANCIAL AND OTHER REPORTS 5 5.1 Records and Reports 5 5.2 Operating Budget 5 5.3 Other Accounts 5 Section 6 ADVERTISING 6 Section 7 SERVICES OF THE AGENT 6 7.1 Structure and Warranties 6 7.2 Maintenance and Repairs 6 7.3 Preventive Maintenance 6 7.4 Insurance 7 7.5 Service Requests of Residents & Occupants 7 7.6 Inspection of Units 7 7.7 Compliance of Residents & Occupants 7 7.8 Governmental Orders 8 Section 8 NON-DISCRIMINA nON 8 Section 9 COMPENSATION OF THE AGENT. 9 9.1 For Modernization (Rehab & Construction) 10 9.2 For Fire Restoration 10 9.3 Regulatory Agency's Required Clause 10 Section 10 TERMINATION OF THE AGREEMENT 10 10.1 Mutual Consent Termination 10 10.2 Termination Because of Bankruptcy 10 10.3 Accounting Upon Termination 10 10.4 Regulatory Agency's Termination Clause 11 Section 11 ASSIGNMENTS 11 Section 12 AMENDMENTS 11 Section 13 SIGNATURES 12 This Agreement Is made this _between _ (the "Owner") and CommondBond Housing (the "Agent"). SECTION 1 APPOINTMENT OF THE AGENT 1.1 APPOINTMENT AND ACCEPTANCE The Owner hereby appoinls the Agent as sole and exclusive Agent ot the Owner to manage the property described in Section 1.2 herein (the "Premises as detined in Section 1.2 herein) upon the terms and conditions provided herein. The Agent accepts the appointment and agrees to turnish the services of its organization for the management of the Premises. The Owner agrees to pay for all expenses in connection with such services. 1.2 DEFINITIONS AND DESCRIPTION OF THE PREMiSES As used in this Agreement: "Premises" shall mean the real property and the improvements, buildings, appurtenances and equipment theron. of the Owner know as Parkview Villas North and South, iocated at 965 40'h Avenue N.E., in the City of Columbia Heights, State of Minnesota, and consiting of 146 dwelling units, underground garage spaces to be rented and no commercial or other non-dwelling spaces. "Non-Housing Income" shall mean all amounts actually collected by the Agent, including all other income and charges from the normal operation of the Premises, including but not limited to, parking, laundry income, forfeited security deposits, pet deposits, other fees and deposits, income from commercial or other non-dwelling space and other miscellaneous income. "Lease" shall mean the form of agreement between the Owner and a Resident under the terms of which said Resident is entitled to enjoy possession of a dwelling unit or the form of agreement between the Owner and an Occupant under the terms of which said Occupant is entitled to enjoy possession of a commercial or other non-dwelling space. "Occupant" shall mean a person or entity occupying a commercial or other non-dwelling unit in the Premises pursuant to a Lease. "Rent" shall mean that monthiy amount which a Resident or Occupant is obligated to pay the Owner pursuant to the terms of a Lease. "Resident" shali mean a person occupying a dwelling unit in the Premises pursuant to a Lease. 1.3 TERM The term ot this Agreement shall begin from the 1st day of February, 2008, for a five.year term ending January 31, 2013, unless sooner terminated pursuant to Section 10 herein. 1.4 MEETINGS WITH THE OWNER AND THE AGENT The Agent agrees to cause an officer of the Agent to confer fully and freely with the Owner not withstanding the authority given to the Agent in this Agreement. SECTION 2 EMPLOYEES OF THE AGENT 2.1 THE AGENT'S AUTHORITY TO HIRE On the basis of wage rates previously approved by the Owner, the Agent shall investigate, hire, pay, supervise, discharge and pay ali employees, contractors, or other personnel necessary to be employed in the management, maintenance, and operation of the Premises. All employees shall be employees of the Agent. The Agent shall hire and have physically present at the Premises, all managerial and non. managerial personnel necessary for the full and efficient performance of its duties under this Agreement. including the physical presence of responsible personnel at such times as may reasonably be requested by the Owner. 2.2 THE OWNER PAYS EMPLOYEE EXPENSES All wages and fringe benefits, local. state, and federal taxes and assessments (including, but not limited to, social security tax, unemployment insurance, and worker's compensation insurance) incident to the employment of employees hired pursuant to Section 1.2 herein shall be paid by the Agent to such employees of the Agent from the Operating Account and shall be treated as an operating expense of the Premises and such payments shall not be deemed to be compensation from the Agent. 2.3 THE AGENT'S AUTHORITY TO FILE RETURNS The Agent shall do and perform all acts required of an employer with respect to the Premises and shall execute and file all tax and other returns required under the applicable federal. state, and local laws, regulations, and/or ordinances governing employment, and all other statements and reports pertaining to labor employed in connection with the Premises and under any similar federal or state law not or hereafter in force. In connection with such filings, the Owner shall upon request promptly execute and deliver to the Agent all necessary powers of attorney, notices of appointment, and the like. The Owner shall be responsible for all amounts required to be paid under the foregoing laws, and the Agent shall pay the same from the Operating Account 2 2.4 WORKERS' COMPENSATION INSURANCE The Agent at the Owner's expense, shall maintain workers' compensation insurance covering all liability of the employer and established workers' compensation laws. SECTION 3 BANK ACCOUNTS The various bank accounts established under this Agreement shall at all times be established in the Owner's name but under the Agent's control. The Agent's designees shall be the only parties authorized to draw upon such accounts. No amounts deposited in any account established under this Agreement shall in any event be commingled with any other funds of the Agent. 3.1 OPERATING RECEIPTS AND EXPENSE ACCOUNT The Agent shall establish and maintain, in a bank whose deposits are insured by the Federal Deposit Insurance Corporation (FDIC) in accordance with the provisions of the Regulatory Agreement, in a separate bank account as the Agent of the Owner for fhe deposit of fhe money of the Owner, wifh aufhority to draw fhereon for any payments to be made by the Agent to discharge any liabilities or obligations of the Owner incurred in accordance with this Agreement. The Agent shall not be held liable in the event of the bankruptcy or the tailure of a depository. This account shall be carried in the Agent's name and shall be designated of record "(Name of Premises)" Operating Receipts and Operating Account ("Operating Account"). The Agent shall establish such other special bank accounts as may be required by the Owner. Signatories entitled to make withdrawals from any and all of these accounts shall be persons covered by the fidelity bond pursuant to Section 3.3 herein. 3.2 SECURITY DEPOSIT ACCOUNTS The Agent shall collect, deposit, and disburse Resident's and Occupant's security deposits in accordance with the terms of the respective Leases. Such security deposits shall be deposited by the Agent in an interest bearing account, separate from all other accounts and funds, wifh bank or of her financial instifution whose deposits are insured by the FDIC. The Agent shall be responsible for any loss incurred by fhe Premises for its failure to comply wifh refunding of security deposits with accrued interest to Residents or Occupants as required in the Minnesota Statutes, Section 504.20, as amended. This account shail be carried in the Agent's name and shall be designated of record "(Name of Premises) Security Deposit Account". The Agent shall cause the amount of the Security Deposit Account to equal or exceed at all times the aggregate of all outstanding obligations by the Owner with respect to security deposits. 3 3.3 FIDELITY BOND The Agent shall turnish, at its own expense, a tidelity bond tor $ t ,000.000.00 to protect the Owner against misappropriation ot funds of the Premises by the Agent and its employees. The bond shall be in an amount not less than two (2) times the total amount of the following: A. The maximum possible monthly rent collections based on 100% occupancy plus B. The non-Housing Income as defined in Section 1.2 herein plus C. The maximum possible funds being held as security deposits based on 100% occupancy. SECTION 4 RECEIPTS AND DISBURSEMENTS FROM OPERATING ACCOUNT 4. t COLLECTIONS AND DELINQUENCIES The Agent shall collect and deposit all rents and other charges due from Residents and Occupants and all rents or other charges due the Owner from users of garage spaces. The Agent agrees, and the Owner hereby authorizes the Agent, to request, demand, collect, receive, and give receipts for any and all charges or rents which may at any time be or become payable to the Owner. Rents and other charges shall not be accepted in cash by the Agent. The Agent agrees to take such action,including legal action, with respect to delinquencies in payments due the Owner as the Owner may from time to time authorize. 4.2 PAYMENTS AND EXPENSES From the funds collected and deposited in the Operating Account, the Agent shall cause to be disbursed regularly and punctually in the order and priority as set forth below: A. All fees of the Agent; B. All reimbursements for payroll expenses for services of Agent's employees and reimbursement for management related long distance telephone calls; C. All of the real estate tax and insurance premium escrow payments required of the Owner, which payments shall be deemed to be part of the "operating expenses" of the Premises; and D. All remaining operating expenses of the Premises (which specifically exclude the Owner's mortgage loan principal and interest payments if any). 4 4.3 PAYMENTS AND EXPENSES With the exception ot payments provided tor in this Section 4.2, the Agent shall not make any disbursement in excess ot $2.000.00 unless specitically authorized by the Owner; provided that emergency repairs involving manitest danger to life and property, or immediateiy necessary for the preservation and satety ot the Premises, or tor the safety ot the Residents and Occupants, or required to avoid the suspension of any necessary services to the Premises, may be made by the Agent without regard to the cost limitation imposed by this Section with the understanding that the Agent, if at ail possible, will confer immediately with the Owner regarding every such expenditure. The Agent shall not incur liabilities on behal of the Owner (direct or contingent) which, in the aggregate will exceed at any time $5,000.00 unless specifically authorized by the Owner. The Agent shall not incur liabilities on behalf of the Owner (direct or contingent), which require payment more than one year from the cretion thereot. unless specifically authorized by the Owner. 4.4 SECURITY DEPOSITS The Agent shall collect, deposit, and disburse Residents' and Occupants' security deposits in accordance with the terms of each Resident's or Occupant's Lease. The Agent shall pay Residents and Occupants interest upon such security deposits as required by Minnesota law. The Agent shall comply with all applicable state or local laws concerning the responsibility for security deposits and interest. SECTION 5 FINANCIAL AND OTHER REPORTS 5.1 RECORDS AND REPORTS The Agent shall establish and maintain a comprehensive system of records, books, and accounts in a manner satisfactory to the Owner. All records, books, and accounts shall be subject to the examination at reasonable hours by any authorized representative of the Owner. With respect to each fiscal year ending during the term of this Agreement, the Agent shall have an annual financial report prepared by a Certified Public Accountant based upon the pre parer's examination of the books and records of the Owner and the Agent. The report shall be submitted to the Owner within sixty (60) days after the end of the fiscal year, for the Owner's further certification, Compensation for the preparer's services will be considered an operating expense of the Premises. The Agent shail prepare Monthly Operating Reports which compare actual and budgeted income and expenses for the month and for the "year-to-date". The Agent shall prepare a Monthly Aged Schedule of Accounts Receivable and Accounts Payable. The Agent shall prepare a Monthly Analysis of Security Deposits and Monthly Cash Reconciliation, The Agent shall furnish such information as may be requested by the Owner trom time to time with respect to the financial, physical, or operational condition of fhe Premises, 5 5.2 OPERATING BUDGET At least sixty (60) days prior to the beginning of each tiscal year for the Premises, the Agent shall prepare and submit to the Owner an Operating Budget. setting torth an itemized statement of the anticipated receipts and disbursements tor the Premises. 5.3 OTHER ACCOUNTS Everything done by the Agent under the provisions at this Agreement shall be done as the Agent at the Owner, and all obligations or expenses incurred thereunder shall be for the account at and on behalf of fhe Owner. Any payments to be made by fhe Agent hereunder shall be made out of sums as are available in the Operating Account. The Agent shall not be obliged to make any advance to, or tor the account at. the Owner or to pay any sum, except out of funds held or provided as aforesaid, nor shall the Agent be obliged to incur any liability or obligation tor the account at the Owner without assurance that the necessary tunds tor the discharge thereof will be provided to the Agent. SECTION 6 ADVERTISING The Agent is authorized to advertise the Premises or portions thereof for rent. using periodicals, signs, plans, brochures, or displays, or such other means as the Agent may deem proper and advisable. The Agent is authorized to place signs on the Premises advertising the Premises for rent, provided such signs comply with applicable laws. The cost at such advertising shall be paid from the Operating Account and shall be treated as an expense of the Premises. All advertising shall make clear that the Agent is the manager and not the Owner of the Premises. SECTION 7 SERVICES OF THE AGENT 7.1 STRUCTURE AND WARRANTIES The Agent shall obtain from the Owner a complete set of plans and specifications for the Premises and copies of all guaranties and warranties pertinent to construction, fixtures, and equipment for the Premises. With the aid of this information and inspection by competent personnel, the Agent shall thoroughly familiarize itself with the character, locations, construction, layout, plan, and operation of the Premises and particularly of the electrical. heating, plumbing, air conditioning, and ventilating systems, and all other mechanical equipment. 7.2 MAINTENANCE AND REPAIRS The Agent is authorized to make or cause to be made, through services or otherwise, all ordinary repairs and replacements reasonably necessary to preserve the Premises in its present condition and for the operating efficiency of the Premises, and all alterations required to comply with lease requirements, government regulations, and insurance requirements, subject to the limitations in paragraph 4.2. 6 7.2 MAINTENANCE AND REPAIRS The Agent shall make contracts tor garbage and trash removal, tuel. oil, extermination, snow removal, elevator maintenance, and other ordinary and necessary services. The Agent is authorized to decorate the Premises and to purchase or rent, on the Owner's behalt. all equipment, toois, appliances. materials, supplies, and other items necessary tor the management. maintenance. or operation of the Premises. Such maintenance and decorating expenses shall be paid from the Operating Account and shall be treated as an expense of the Premises. When taking bids or issuing purchase orders, the Agent shall act at all times in the best interest of the Owner and shall be under a duty to secure for and credit to the Owner all discounts, commissions, or rebates obtainable as a result ot such purchases. 7.3 PREVENTIVE MAINTENANCE The Agent shall develop a preventive maintenance schedule including, but not limited to, periodic inspections ot the units; residency and occupancy commencement and termination check lists; inventory control; common area maintenance; equipment maintenance; exterior maintenance on a seasonal basis; and painting, decorating, and replacement timetables as necessary. 7.4 INSURANCE The Owner agrees to hold the Agent harmless trom all damage suits in connection with the management ot the Premises and from liability from injury suffered by any employee or other person whomsoever, and to carry the necessary insurance therefore as provided in the next paragraph in this Section 7.4. The Agent shall not be liable for any error of judgment or for any mistake of fact or law, or for anything which it may do or refrain from doing hereinafter, except in cases of willful misconduct and gross negligence. The Owner, at the Owner's expense shall obtain and keep in force adequate insurance against physical damage (e.g" fire with extended coverage endorsement, boiler and machinery, etc.) and against liability for loss, damage, or injury (e.g" public liability insurance. burglary and theft insurance. etc.) to property or persons which might arise out of the occupancy. management, operation, or maintenance of the Premises. The amounts and types of insurance shall be acceptable to both the Owner and the Agent. and any deductible required under such insurance policies shall be the Owner's expense. The Agent shall be named as an additional insured on all liability insurance maintained with respect to the Premises. The Agent shall promptly investigate and make a full written report to the Owner of all accidents or claims for damage reiating to the ownership, operation, and maintenance of the Premises. the estimated cost of repair. and shall cooperate and make any and all reports required by an insurance company in connection therewith. 7 7.5 SERVICE REQUESTS OF RESIDENTS AND OCCUPANTS The Agent shall maintain business-like relations with Residents and Occupants whose service requests shall be received, considered, and recorded on a systematic, written basis in order to show the action taken with respect to each. Complaints ot a serious nature and all written complaints, after thorough investigation, shall be reported to the Owner with appropriate recommendations, 7.6 iNSPECTION OF UNITS As part of a continuing program to secure full performance by the Residents and Occupants of ail obligations and maintenance tor which they are responsible, the Agent shall make an annual inspection of all dwelling and non-dwelling units and report its tindings in writing to the Owner. 7.7 COMPLIANCE OF RESIDENTS AND OCCUPANTS The Agent shall at all times during the term of fhis Agreement operate and maintain the Premises according to the highest standards achievable. The Agent shall secure full compliance by the Residents and Occupants with the terms and conditions of their Leases. The Agent is an affiliate of Common Bond Communities and CommonBond Services Corporation. The Agent and its affiliates strive at all times to deliver to the Residents, and where applicable to the Occupants, high quality human services and education and training programs and property management services. The Agent at all times during the term of this Agreement will operate and maintain the Premises in accordance with the high-quality standards of the Agent and its affiliates. The Agent shall secure full compliance by the Residents and Occupants with the terms and conditions of their Leases. Voluntary compliance shall be emphasized, and the Agent shall counsel Residents and make referrals to social service agencies in cases of financial hardship or under other circumstances deemed appropriate by the Agent, so that involuntary termination of tenancies may be avoided to the maximum extent consistent with sound management of the Premises. The Agent will not, however, tolerate willful evasion of payment of rent or other terms of the Leases The Agent may lawfully terminate any tenancy when, in the Agent's judgment, sufficient cause occurs under the terms of a Resident's or an Occupant's Lease. Eviction for reasons other than nonpayment of rent will be on file with the Agent. The Agent is authorized to consult with legal counsel designated by the Owner to bring actions for eviction and to execute notices to vacate and to commence appropriate judicial proceedings; provided, however, that the Agent shall keep the Owner informed of such actions and shall follow such instructions as the Owner has prescribed. Subject to the Owner's approval, costs incurred in connection with such actions shall be paid from the Operating Account and shall be treated as an expense of the Premises. 8 7.8 GOVERNMENTAL ORDERS The Agent shall take such action as may be necessary to comply promptly with any and all orders or requirements atfecting fhe Premises placed thereon by any federal, state, county, or municipal authority having jurisdiction of the Premises, and orders of the Board of Fire Underwriters or other similar bodies. The Agent shall not take any actions under this Section 7.8 if the Owner is contesting or has affirmed its intention to contest any such order or requirement. The Agent shall promptly, and in no event later than forty eight (48) hours from the time of their receipt, notify the Owner in writing of all such orders and notices of requirements. SECTION 8 NON-DISCRIMINATION The Agent shall comply with all requirements of Equal Empioyment Opportunity Programs and Affirmative Action Programs as relates to the hiring of its employees and the contracting by the Agent of third parties to provide service under this Agreement. In the performance of each of their obligations under this Agreement, the Agent and the Owner will comply with the provisions of any federal, state, or local law prohibiting discrimination in housing, including but not limited to Title VI of Civil Rights Act of 1964 (Public Law 88-352, 78 Statue. 241), all requirements imposed by or pursuant to the Regulations of HUD 924, CFR, Subtitle A, Part 1) issued pursuant to that Title; regulations issued pursuant to Executive Order 11063, and Title VIII of the 1968 Civil Rights Act. This Agreement may be terminated or suspended, in whole or in part, by the Owner upon the basis of a finding by the Owner that the Agent has not complied with such non-discrimination provisions. This Agreement may be terminated or suspended, in whole, or in part, by the Agent upon the basis of a finding by the Agent that the Owner has not complied with such non-discrimination provisions. SECTION 9 COMPENSATION OF THE AGENT The Agent shall be compensated for its services under this Agreement by monthly fees payable on the first day of each month. Payment shall be from the Operating Account and treated as an expense of the Premises. A. The compensation which the Agent shall be entitled to receive for all services performed under this Agreement shall be a fee of $45.00 per unit, per month. Any sums due the Agent under any provision of this Agreement. and not paid within thirty (30) days after such sums have become due, shall bear interest at the rate of Twelve percent (12%1 per annum. 9.1 FOR MODERNIZATION (REHABILITATION/CONSTRUCTION APPROVED BY THE OWNER) In the event that Owner requests Agent to perform rehabilitation/construction on the Premises, Owner and Agent shall negotiate and execute a contract related to such rehabilitation/construction work. 9.2 FOR FIRE RESTORATION In the event that Owner requests Agent to perform restoration on the Premises, Owner and Agent shall negotiate and execute a contract related to such restoration. 9 SECTION 10 TERMINATION OF THE AGREEMENT 10.1 TERMINATION This Agreement may be terminated by cause by giving 0 30 day notice to contractor. 10.2 TERMINATION BECAUSE OF BANKRUPTCY In the event that a petition in bankruptcy is tiled by or against either the Owner or the Agent, or in the event that either sholl make an assignment for the benefit of creditors to take advantage of any insolvency act, either party hereto may immediately terminate this Agreement without notice, but prompt advice of such action shall be given to the other party. 10.3 ACCOUNTING UPON TERMINATION Within ten (10) days after the termination of this Agreement, the Owner and the Agent shall account to each other with respect to all matters outstanding as of the date of termination. The Owner sholl turnish the Agent security against any outstanding obligations or liabilities which the Agent may have incurred hereunder. The Agent sholl turn over to the Owner all records, documents, or other instruments, waiting lists, and any and all other files and papers in its possession pertaining to the Agent's performance under this Agreement. SECTION 11 ASSIGNMENTS This Agreement shall be binding upon and inure to the benefit of and constitute a binding obligation upon the Owner and the Agent, and their respective personal representatives, heirs, administrators, executors, successors and assigns; provided that neither party may assign this Agreement or any of its duties hereunder without the prior written consent of the other party which consent shall not be unreasonably conditioned, delayed or withheld. SECTION 12 AMENDMENT This Agreement constitutes the entire Agreement between the Owner and the Agent. and no amendment or moditication thereof shali be valid and enforceable except by supplemental agreement in writing, and approved in the same manner as this Agreement. 11 SECTION 13 SIGNATURES IN WITNESS WHEREOF, the parties hereto have affixed their respective signatures this _ day ot _' 200 (Owner Name) Common Bond Housina (Agent Name) By: By: Title: Title: Vice President ot Propertv Manaaement Date: ,200 Date: ,200 Witness: Witness: PM! AGREEI AGREE95.DOC 12 COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) Meeting of: January 23, 2008 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO: 11 DEPARTMENT: HRA DIRECTOR APPROV AL ITEM: Adopt Resolution 2008-02, Designating BY: Scott Clark BY: Depository for the HRA DATE: January 14,2008 BACKGROUND: The attached Resolution 2008-02, designates Northeast Bank as the depository for all Columbia Heights HRA funds and authorizes signatories for accounts. RECOMMENDATION: Staff recommends board adoption of Resolution 2008-02, designating a depositOlY for the HRA and authorizing signatures. RECOMMENDED MOTION: Adopt Resolution 2008-02, a Resolution Designating Depository for the Columbia Heights Housing and Redevelopment Authority (I-IRA). !-IRA ACTION: h:\HRAConsent Form2008\Res2008-02 Designating Depository for HRA RESOLUTION NO. 2008-02 RESOLUTION DESIGNATING DEPOSITORY FOR THE COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (HRA) WHEREAS, the City of Columbia Heights Housing and Redevelopment Authority (herein referred to as the "Corporation") has entered into a Management Contract with Common bond Housing (herein referred to as "Management Company"), dated January 23, 2008, and WHEREAS, by Minnesota Statutes the Corporation must establish a depository agency, and WHEREAS, the Corporation desires to have as authorized signatures both officers of the Corporation and the Management Company. IT IS HEREBY RESOLVED, that Northeast Bank, is hereby designated as a depository of the funds of this corporation. IT IS FURTHER RESOLVED, that checks, drafts, or other withdrawal orders issued against the funds of this corporation on deposit with said bank shall be signed by at least two of the following: HRA Executive Director Management Company CEO Management Senior Vice President Management Director of Administration And that said bank is hereby fully authorized to pay and charge to the account of this Corporation any checks, drafts, or other withdrawal orders. BE IT FURTHER RESOLVED, that the Northeast Bank, is designated depository of the Corporation and it is hereby requested, authorized and directed to honor checks, drafts or other orders for the payment of money drawn in this Corporation's name, including those drawn to the individual order of any person or person whose name or names appear thereon as signer or signers thereof, when bearing or purporting to bear the facsimile signatures of at least two of the following: Management Company CEO Management Company Senior Vice President Management Company Director of Administration And that Northeast Bank shall be entitled to honor and to charge this Corporation for all such checks, drafts or other orders, regardless of by whom or by what means the facsimile signature or signatures thereon may have been affixed thereto, if such facsimile signature resembles the facsimile specimens duly certified to or filed with the Bank by the City Clerk or other officer of this Corporation. BE IT FURTHER RESOLVED, that any and all resolutions heretofore adopted by the Corporation and certified to as governing the operation of the Corporation's account(s) with it, be and are hereby continued in full force and effect, except as the same may be supplemented or modified by the foregoing part of this resolution. BE IT FURTHER RESOLVED, that all transactions, if any relating to deposits, withdrawals, re-discounts and borrowings by or on behalf of this Corporation with said bank prior to the adoption of this resolution be, and the same hereby are, in all things ratified, approved and confirmed. BE IT FURTHER RESOLVED, that any bank or savings and loan located in the State of Minnesota may be used as depositories for investment purposes so long as the investments comply with authorized investments as set forth in Minnesota Statutes. BE IT FURTHER RESOLVED, that any brokerage firm located in the State of Minnesota may be used as a depository for investment purposes so long as the investments comply with the authorized investments as set forth in Minnesota Statutes. Passed this _ day of January, 2008 Offered by: Seconded by: Roll Call: Chair Cheryl Bakken- Secretary/CAP