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HomeMy WebLinkAboutJuly 28, 2009, MinutesHOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE REGULAR MEETING MINUTES OF JULY 28, 2009 Call to Order - The meeting was called to order by Chair Diehm at 7:00 p.m. Roll Call- Chair Tammera Diehm, HRA rnembers: Bruce Nawrocki, Dennis Ecklluld Jr., Bruce Kelzenberg, Gary Peterson and Bobby Williams. ~taff present: Executi~e Directar-Walt Fehst; Deputy Executive Bir~ctoi-Scatt Clark; Assistant Comrnunity Developrnent Director- Sheila Cartney, and Secretary-Shelley Hanson. Parkview/CoinmoilBond Staff: Laura Sheak, Lisa Wilcox-Erhardt, and Jennifer Eels Pledge of Allegiance CONSENT AGENDA Approve the Minutes of the Special Meeting March 30, 2009 and Financial Report and payinent of bills for° the ~anths of 10'Iarch-June, 2009, on Resotution 2009-0~. Nawrocki questianed whether a merno had ever been sent regarding the status of the ARRA funding for capital improvement activities for Parkview. The previous minutes noted that an update would be sent to members around tlie end of April and he did not receive it. Lisa ~7Vilcox-Erhardt stated that the memo was sent out in early June. She stated a RFP for Engineering Services went out in early May which resulted in four entities looking at the site. Tl~-ee com~aaues subi~~itted prapasals, ai~d the lowest bidder, Encoia~pass Engineeri~sg, was recommended to handle the repair project. The contract with them is in the process of review prior to signing. Nawrocki asked what the range of bids was. Lisa stated they came in at $17,070-mid $30,000 range-and around $40,000. Once the contract is signed they will advel-tise for bids in various medias. Clark will see that Nawrocki gets a copy of the memo that was sent to the HRA with the details. Nawrocki noted that figures in the Financial Report included in the agenda packet do not match up with figures in the Financial Report he receives from the Finance Dept from the end of June. Fehst said he shouid talk to the Finance Director about any discrepancies he sees. He also questioned the fees that are paid to the City. Fehst said the city is paid for sewcr and water, and service fees that cover staff time for overseeing Parkview Villa. Clark stated that the service/adininistratian fee was established at $35,000 some timc ago, with a 3% inflation rate added annually. He is not sure whether this fee has been paid yet far 2009, and therefore, is nat sure how it is rcflected in the Financial Reports. Nawrocki thinks the fee should be re-visited since CommondBond does Inore of the management tasks than was done in the past. He wants a detailed accounting to justify the fees charged. Fehst stated the ainount charged is actually lower than the actual costs incurred and asked whether Nawrocki sti11 wants to move forward with possibly rc-adjusting this amount. Nawracki responded that he wants to know how the number was arrived at and to justify the expense. Motion by Peterson, seconded by Kelzenberg, to approve the consent agenda Items as listed. All ayes. Motion Carried. Housing & Redevelopment Authority Minutes July 28, 2009 Page 2 of 9 HRA RESOLUTION 2009-OS RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR, MARCH, APRIL, MAY AND JUNE OF 2009 AND PAYM~NT OF BILLS FOR THE MONTHS OF I~~ARC~, APRIL,1l~IAI' ~~1I3 JIJN~ OF 2QQ9. WHEIt~AS, th~ ~~luml~ia Heights Ilousing and Rede~~eloprnent Authority (HRA} is req~.~ire~i by Minnesota Staiutes Sectian 469.096, Subd. 9, to preparc a detailed financial statement which shows ail 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 examinc the statement and treasurer's vouchers or biils and if correct, to apprave them by resolution and ei~ter the resolution in its records; and WHEREAS, tlze fiilancial statement for tlze months of March, April, May and June of 2009 and the Iist of bills for the months of March, April, May and June of 2009 are attached hereto and made a part of this resolution; aiid. WHEREAS, the HRA has exainined the financial statcment and the list of bills and finds them to be acceptable as to both form and accuracy. NOW, T~IEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Housiizg & Redevelopment Authority that it has examined the attached financial statements and list of bilis, which are attached hereto and made a part hereof, and ~hey are found to be eorrect, 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 fullds; and BE IT FURTHER RESOLVED this resolution and attachments are to be inade a part of the permanent records of the Columbia Heights Housing & Redevelopment Authority. Passed this 28th day of July, 2009. MOTION BY: Peterson SECONDED BY: Kelzenberg Chair - Tammera Diehm Attest by: Scott Clark, Community Developinent Director Housing & Redevelopment Authority Minutes July 28, 2009 Page 3 of 9 BUSINESS ITEMS Repart of Mana~ement Company Laura Sheak, Manager, asked ii there were ai7y questions an tl-~e monthly reports that were included in the agenda packets. Nawrocki noted that the buildings are at full occupancy, but the revenues are less than what was estimated in the budget. Lisa responded that is because the figures in the budget included an escalator vf rent fe~s for the south building that were nat put into effect as proposed. Nawrocki then asked if the new residents moving in are fram Columbia Heights since the report only shows the waiting list separating applicants into resident/non-resident categories. It does not indicate which category the move-ins are taken from. Laura stated that yes, any people moving in are Colu~ibia Heights reside~ts. Lisa reported that the 4~' floor modernizatioil project has been lield off a bit. Nonnally, they get capital improvement budgets and approvals in June, but they have not received approval for funding yet, so they have delayed starting with the project. She said they should ha~e everything in place by October and be able to inove forward with the project by then. Lisa stated the results of the smoking survey were included in the agenda packets for the znembers to review i~i order to establish a policy for the building. Diehm thought the survey was very comprehensive and appreciated all the input and comments that were submitted by the residents. Diel-nn then shared the results of the survey verbally with the residents present. The results are summarized as follows: Parkview Villa North - 52 responded (52%} 1. Do you smake in your unit? 19% yes ai~d 81 % no 2. Ho`~ ofteli have you smelled tobacco in your apartment that comes from another apartment or from outdoors? 35% never-33% occasionally-21% vcry often-11% always 3. Does the sinell of someone else's tobacco smoke on the premise bother you? 42% doesn't bother me at all-23% botlzers me a littlc-31% bothers me a lot-4% undecided 4. Do you have any of the following diseases: emphyseina or lung disease, asthma, or allergies brought on by thu7gs in the air? 36% yes-54% no-10% not sure 5. How hannful do you think it is to breath secondhand smoke`? 58`% very hannful-1~% somewhat hannful-21% not too harmful-6% not harmful at ail. 6. Would you like to live in a smoke-free building? 50% yes-33% no-17%-don't ha~e prefcrcnce 7. I prefer to live in a building where smoking is: 19% not allowed in some outdoor area 9% not allowed ii1 soine unit/or on certain floors-33% not allowed in a11 units-39% allowed in all units and outdoor areas. 8. If thc building is declared smoke free, would you be in favor of grandfathering in residents for the length of their tenancy? 40% yes-36% no-24% not sure. Housing & Redevelopment Authority Minutes July 28, 2009 Page 4 of 9 Parkview Villa South 36 responded (80% 1. Do you smoke in your unit? 6% yes and 94% no 2. ~Iow often have you smelled tobacco in yaur apartment that comes f~om anather apartznent cr from outdoors? 54% never-29% occasionaliy-6% very often-11% always 3. Does the smell of soineone else's tobaceo snloke on the premise bother you? 24% doesn't botller me at a11-35% bothers me a little-32% bothers me a lot 9% u~ndecided 4. Do you have any of the following diseases: emphyseina or lung disease, asthma, or allergies brou~ht on by things in the air? 27% yes-61% no---12% not sure 5. How harnlful do yau think it is to breath secondhand smoke? 55% very hannful-42% somewhat harmful-3% not too harmful-0% not harmful at all. 6. Wauld you like to live in a sinoke-free building? 54% yes-11% no-35%-don't have preference 7. I prefer ta live in a building where smaking is: 22% not allowed in some outdoor area 16% not allowed in some unit/or on certain floars-46% not allowed in all units-16% allowed in ali units and autdoor areas. 8. If the building is declared smoke free, would you be in favor of grandfathering in residents for the length of their tenancy? 41% yes-31% no-28% not sure. Various comments were taken from the audience: '~Renie Suflca-Shouldn't take away peaple's rights. It's all saine of them have left. *Lyn Miner-Responsibility goes hand in 1lalld with rights. *Marge Buczynski-She doesn't appreciate neighbor's smoke getting in her apartment. She understands they have rights, but so does she. A compromise would be requiring an air cieaner in the apartinents of those who smoke and to establish a smoking place outside that is away from the building. *Karen Faust-Since living here she has experiei~ced the first fire in her life frain someone smoking in bed. They should have to smoke outside. She has a right to feel safe and to have a smoke free enviromnent in her apartment. Diel~m stated that t11e Commission would consider all the comments and survey results in making its decision. State laws and rules for public buildings have changed drastically over the years, and things are uot the same as they were in regards to smoking. Fehst said the board has ai1 obligation and i°esponsibility to iepresent all the residents living at Parkview. Nawrocki asked if this matter had been addressed by the Resident Council. Dennis Ecklund said he also took a survey at tlle last resident council meeting regarding the sinoking issue. He oi~ly asked 3 questions. 1. Should smoking policy stay the salne? 39 yes 25 no 2. Should smoking be ailowed in individuai apartments? 12 yes 32 no 3. Sllould those who smake be grandfathered in if policy changes? 22 yes 27 no Housin~ & Redevelopment Authoi-ity Minutes July 28, 2009 Page 5 of 9 Resident Council Minutes Copies of the ininutes were included in the agenda packets. Ecklund reviewed same of the topics covered ai7d those items voted on by the Resident Council whieh included thc Christmas Dinner- dona~ians-anddrinking outside. Ecklund then reviewed the Treasurer's ~epart. Diehm acknowledged the Resident Cauncil and the Treasurer for a fine job. It was noted that alcohol consumption is not addressed in tl-ie handbook. Some residents were concerned v~~ith those drinking outside and disorderly conduct due to drinking. The cansensus was to include this topic in the handbook and only allow drinking in apartments or designated areas. The Resident Cauncil thought it would be a gaod idea to review the handbook with management and update it, as tlus has not been done in a while. It was noted that policies must be established by the Commission, and that the Resident Council can bring recommendations to the Col~77issioz~. Laura did note that being u~toxicated and being disorderly is a violation of the lease, and tilerefore, it is addressed. There was a discussion regardi~lg the Resident Council meefing of July 13, 2009. Before Laura could give her Manager's Report, an additional smoking survey was handed out by Denny, even though one had already been done by the management office. Laura was unaware of this and felt it was inappropriate for her to be present for that topic. Since she was unable to give her report, she left the meeting, which confused some of the attendees. Various residents gave their opinions as to what happened. Diehm reminded Ecklund that as a cornmissioner, he should have encouraged participation in the survey that the commission asked management to conduct, and not to operate separately in such matters. Again, she thanked everyone for submitting their opinions on this issue. Nawrocki stated residents on bath sides of this issue have rights. He acknowledged that it is not illegal to use tobacco. On the other hand, he is concerned with the rights of those who don't wish to be subjected to secoildhand sinoke. Because there are ventilation issues in the building, it is a problem if the smoke is gou~g into other apartments. Diane Powe11-The north building does not have a central air systein. She believes most of the smoke coines in under the doorways. Lyn Miner-Smoke comes in under her door. She doesn't think sl~e should have to smell other people's smoke. She used the analogy that she has the right to ha~e a radio or TV, but doesn't have the right to play it at loud levels in the middle of the night. She agrees people have rights, but they also have a responsibility to tlieir neighbors when exercising those rights. Karen Faust-She works at the Veterans Home and they can't sinoke there. Laverne Harper-She has lost two brothers to smolcing. Housing & Redevelopment Authority Minutes July 28, 2009 Page 6 of 9 Ken Block-The smoke traveling from unit to unit has been braught up before. It comes from a variety of sources--under the doors, heat re~isters, bath vents, ai~d aro~~nd the pipes in the walls that go Fram unit ta unit. Commissioner Feterson stated li~ is a~revious smaker. He thinlcs the results of the survey lean towards making Parkview Villa a no smoking building. He noted that a memo received fram HUD dated July 22, 2009, is encauraging Public Housing entities to adopt a smoke free policy. HUD may pass this rule even if we don't. He doesn't see putting off the inevitable until the next meeting. It will offend some people no inatter when the policy is enacted. Diehm agreed that the information was included in the agenda packets and has already been reviewed and camments have been heard. Fehst stated most public buildings are adapting sinlilar polieies and we need to look out for the 1lealtll and safety of our residents. Mation by Peterson, seconded by Kelzenberg, to adopt a policy making Parkview Vilia narth and south buildings smoke free as of September 15, 2009. All ayes. MOTION PASSED. Karen Faust-asked if a smoking place could be constructed for residents outside away from the building for smokers. Lisa said they can look into what the cost would be to construct a gazebo structure for smokers and report back to the commission. Marge Buczynksi agreed that soinething should be built for the outside sinokers. Renie Sufka-Said the new sinoking policy does not allow for a 2-month notice that is required to vacate an a}~artment. Laura said this new palicy will require a Lease Addendum be signed by ali residents. Dielun suggested that as they are signed, if she finds out residents wish to move because of the policy, an extension can be made on a case by case basis granting theln the two month time period. Suflca then asked who would police this? Laura said once the lease addendtuzls are signed, it would be a violation of the lease to smoke inside the building, and residents could be evicted. i i~izzri Fo~•uYr Diane Pawell-She brou~ght up the policy for use of the commuiuty rooms. She has been ~old that the rooms cannot be used for financial gain unless it is for events to benefit the Resideilt Council Fund. She used to host an open house for residents a couple times a year as she is a Mary Kay representative. Residents could corne down and enjoy coffee and treats and place orders if ~hey chose to. She has been told that is not allowed. Anotl7er resident who recentiy moved in had a Tupperware party so she could meet soille of the other residents. She later foui~d out she can't do that. After some discussion, it was discovered this policy was created in 2004 by the Resident Council. The HRA Commission never voted on this issue or created this policy. Housing & Redevelopment Authority Minutes July 28, 2009 Page 7 af 9 Renie Suflca-stated she can understand tile policy to prohibit garage sales open to the public, but that private parties such as these should be allowed. It encourage tenants to participate in building e~~erts. Lavern Hatper-She di~n't think it ~uould be a problem to allow such parties unless too many want it at the same ti~ne. Ken Block-The rooms wauld have to be scheduled like any other community room, on a first come, first served basis. He also pointed out there are two roams available for people to use. Diane Powell-Explained the problem started when Bill Cross (previous resident) led a faith based meeting every Sat~rday night and oth~r events got in the way af this from time to time. As a res~it, ~he Resident Council decided at that time to implement this policy. Nawrocki asked when the Resident Council got the right to dictate policies? The HRA Commission is the one who approves policies. Maybe the policies should be reviewed to make sure they are approved by the Board. He asked if residents paid for the use of the rooms. Laura said damage deposits are taken in case any repairs are needed, but returned to resident if not. HUD prohibits charging for use of community rooms. Diehrn agrees that businesses shauld not be allowed to aperate fram the cominunity rooms, but feels parties such as these, held a couple tiines a year, should be allowed. Ken Block-He said residents were led to believe it was a city policy. He feels rooms are there far people to reserve, but they should be responsible for anyone attendin~ their gathering. He doesn't want to see things opened to the public, such as garage sales. Diehin directed CoinmonBond staff to gather policies fronl other public housing establislunei~ts. Peterson doesn't thinlc this matter should be regulated at a1L The room is there for the residents to use and as long as they schedule the use it should be fine. Mana~ement can handle issues as they arise. Motion by Ecklund, seconded by Kelzenberg to llave this item addressed at the next Resident Council n7eeting to reseuld the policy in place and to make a recommendation to tl~e board at the next HRA meeting to adopt a policy regarding the use of community rooms. All ayes. MOTION PASSED. Alana Stier-asked about wlietller tllere was a dress code. She doesn't think residents sllould waik around in lounge wear in the common areas. Laura stated that is hard to manage since same iesidents wear 1ou11ge wear, or dusters, due to medical reasons su~ch as recent surgeries, etc. As long as the residents are decently covered, it is hard to dictate what lype of clothing is acceptable. Housing & Redevelopment Authority Minutes Juiy 28, 2009 Page 8 of 9 T-Mobile Lease Clark explained that the EDA entered into an agreement in 1996 with T-Mobile to place an antenna on the roof of Parkview Villa. The lease price escalated each year to the current amount for 2~09 of $19,212.38. The lease had renewal terms and the current five-year renewal term will expire January 1, 2012. T-Mobile wants ta renegotiate a new lease based on a changing econo?ny. The two optians outlined in their letter dated June 12, 2009 are: l. A base of $17,000 per year starting on 9/10/09 for four years-then a 5% rent increase every five years starting on 9/10/2014 until9/10/2027. After 9/10/2027 a rent holiday until9/10/2034 (which means no rent paid during that time}. 2. The alternative would be a lump sum payrnent of $110,000 in exchange for a 15 year lease assignment. StafF has calculated that based on a 4 percent interest rate that the future ten year value would be $162,826. Clark stated if T-Mobile decides to terminate the lease they only have to pay through the year in which the tennination is made. So that could he a risk if we choose not to re-negotiate the lease terms. However, staff feels there has been eilough interest from other parties that there would be another carrier that will take their place for an amount that is equal to or higher than the newly offered rates. Therefore, staff does not recommend entering into a new negotiation at this time. Staff asked the members for direction on this lease proposal. Peterson stated he has been contacted frorn a firm who is looking for a site. Nawrocki asked what the lease fee was for the new antenna on the Public Woi°ks site? Clark said he didn't itnow the exact figure, but that it is higher than this one. Ecklund asked if this was the tallest building in the city. Clark respanded that it is, except for tlze water tower. Motion hy Peterson, seconded by Kelzenberg, to deny the request by T-Mobile and to direct staff not to re-negotiate the lease terms. All ayes. MOTION PASSED. Capital Im~rovements Plan Clark explained at this time staff has no authority for potential rent increases in January 2010 and views that this should be an agenda item for the October meeting. Any rent increases should be looked at as the 11eed to capture increased operating costs and the need to adequately cover ca~ital iin~rove~r~e~ts. ~ta~f has w~rkec~ ;vit~ Cor~rr~or~oizd ~Q de~~~?~p a±u~eLty-; e~r ~ap?t~l Improvement Plan that illustrates future needs. The presentation of the plan was for discussion piuposes only and no action was required. C1ai-k explained the building is 17 years old and will need repairs over the next 20 years. The 20 year plan takes into account tlle fund balances, operating costs, inflation, and an estimate of repairs that will be needed. He estimates that~ approxunatel~ 1 rnillion dollars will be needed in the neXt 20 years. We presently have a strong fund balance of approximately $400,000 and $90,000 + cash flow annually, but we need to project a rent structure to cover future costs. Clark further explained that a catch up plan was done a few years back, but the rents have been n~aintained at the current rate for a couple of years. Housing & Redevelopment Authority Minutes July 28, 2009 Page 9 af 9 C1ark stated that we have a$94,000 immediate capital need, which would include replacement of the driveway and hydronic valves that heat the pavement at the garage entrance. This amount is not budget~~l for so staff would need directian for this expense that wauld be taken from the fund balance. Nawrocki commented that he thought the fund balance was higher than $400,000. He also requested a history of adjustments in the rental fees that were made previously. He asked u~ho put this plan together and what his qualifications were to do so. Lisa stated that Jim Mitchell helped put the sclledule together. He is the Director of Facility Management for CommonBond and this is his area of expertise and responsihility, CommonBond will gatl2er bids and have them ready far the next meeting for the repairs noted above. Potei~tial rent increases will also be addressed at t11e October nleeting based on the Capital Improvement Plan that was included in this agenda packet. Other Business There was nothing at this time. The next HRA meeting will be Octaber 27, 2009. Respectfully submitted, Shelley Hansan Recording Secretary