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HomeMy WebLinkAboutOctober 27, 2009, MinutesHOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE REGULAR MEETING OF OCTOBER 27, 2009 1. Call to Order - The meeting was called to order by Chair Diehm at 7:00 p.m. 2. Roll Call- Chair: Tammera Diehm, HRA members: Bruce Nawrocki, Dennis Ecklund 7r., Bruce Kelzenberg, and Gary Peterson. Excused members: Bobby Williams. Staffpresent: Executive Director-Walt Fehst; Deputy Executive Director-Scott Clark; Assistant Community Development Director- Sheila Cartney, and Secretary-Shelley Hanson. Parkview/CommonBond Staff: Laura Sheak, Lisa Wilcox-Erhardt, and 7ennifer Eels 3. Pledge of Allegiance CONSENT AGENDA 4. Approve the Minutes of the July 28, 2009 meeting and Financial Report and payment of bills for the months of July-September, 2009, on Resolution 2009-06. Nawrocki questioned a payment from July to Laura Sheak for $496. Lisa explained that the generators were running constantly due to the load from air conditioners and that the fuel was close to running out. The fuel company would not make a delivery unless it was paid for at the time of delivery, so Laura used her personal credit card to make the payment and this expenditure was for the reimbursement. He then questioned the payment to the City for $5,200. Lisa explained that was for the Administration/servicing fees to cover city staff time as budgeted for administration of Parkview Villa North and South. Nawrocki stated he had asked about this fee at the last meeting and wanted documentation to justify the amount. He expressed his opinion that this fee is too high. Clark stated those figures were part of the flow chart that was provided at the July meeting and the EDA set that fee when they approved the EDA and HRA budgets. The reimbursement from this source is set at appro~mately $35,000 and includes a 3% increase each year. Clark stated it is a close average of the actual expenses and that the Board isn't always aware of all the stafftime from various departments that it takes to oversee the management of these buildings. Clark gave Nawrocki another copy of the flow chart at the meeting so he could review the figures. Nawrocki questioned an August payment for a legal inquiry regarding the process for the possible disposition of the project. Lisa said staff directed her to include this in the PHA Plan in case the City decides to sell the buildings. The amount for this expense was $82. Motion by Peterson, seconded by Ecklund, to approve the consent agenda Items as listed. All ayes. Motion Carried. Housing & Redevelopment Authority Minutes October 27, 2009 Page 2 of 14 HRA RESOLUTION 2009-06 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR JULY, AUGUST, AND SEPTEMBER OF 2009 AND PAYMENT OF BILLS FOR THE MONTHS OF JULY, AUGUST, AND SEPTEMBER OF 2009. 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 July, August, and September of 2009 and the list of bills for the months of July, August, and September of 2009 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 27th day of October, 2009. MOTION BY: Peterson SECONDED BY: Ecklund Chair - Tammera Diehm Attest by: Scott Clark, Community Development Director Housing & Redevelopment Authority Minutes October 27, 2009 Page 3 of 14 BUSINESS ITEMS 6. Report of Mana~ement Companv Laura Sheak, Manager, asked if there were any questions on the monthly reports that were included in the agenda packets. She explained that smoke detectors were installed prior to the August deadline, and the parking ramp improvements have been completed and the cement is curing. When asked how long it needed to cure, Brian Hon stated that Unicorp recommended 72 hours, so residents should be able to use the parking area on Thursday. Weather delayed this proj ect. Lisa told members that the application for Grant money is moving ahead. They have signed with an Engineer who did an assessment of the building. They are in the process of reviewing the assessment and will soon be going out for bids. Lisa also reported that CommonBond had nominated Laura for an award for managing buildings with more than 100 units. She won the award and they had good things to say about the building and how it has been maintained and managed. Nawrocki stated he thought the garage doors were going to be replaced, but that the project for the coils and new driveway was going to be brought back to the board for approval. Lisa said there was $67,000 allocated projects in the capital improvement fund. Due to market conditions, the cost for the ramp came in at $29,900 and staff directed them to proceed with the project. Nawrocki stated that any expenditure over $15,000 should have Board approval. Clark took responsibility for authorizing the work to proceed because it was for a capital improvement that was budgeted for and he thought it best to get the project done before the weather made it impossible. He also stated that at the previous HRA meeting there was agreement to proceed. Clark said it made sense to replace the coils now along with the repaving so that it eliminates tearing up a newly surfaced driveway later. 7. Resident Council Minutes Copies of the minutes were included in the agenda packets. Ecklund reviewed some of the topics covered including the Christmas Party, the St. Croix Boat Ride and dinner, and the cookbooks of the resident's recipes that are being sold. He also stated they will be looking for nominations for positions on the Resident Council. Ecklund then reviewed the Treasurer's Report. 8. Citizen Forum Renie Sufka #104 told the Mayor it is hard to cross Central Avenue because vehicles don't honor the pedestrian crossing. He stated he would discuss this with the Police Chief and maybe refer it to the Traffic Commission. She then told Walt that Public Works needs to do a better job at clearing the sidewalks from the building to Central Avenue and in the parking ramps. She said they do not leave a wide enough access on the sidewalk for those that use wheelchairs. He responded that he would address the concern with the Public Works Director. Housing & Redevelopment Authority Minutes October 27, 2009 Page 4 of 14 Terry Gagne #704 said she originally signed her lease because smoking was allowed at Parkview Villa. The non-smokers knew that when they signed their leases also, and they shouldn't have moved into the building if they didn't like it. She doesn't think a few people should dictate the rights of everyone. She feels that any resident that was here prior to the policy change should be grandfathered in and allowed to smoke in their units. Diehm stated that as the owners of a Public Housing Building, they are getting pressure from HUD to make it a smoke free environment. She explained that everyone has rights to a point and that it is their job to ensure that people's health and safety are protected. Diehm explained that all public buildings and most housing facilities have adopted a"smoke free" policy. She said the Board will possibly consider an outdoor shelter to provide an area where residents can smoke. Ms. Miner #202 is disappointed that smokers have no concern that their smoke goes in other units. Wendy Mady #712 agrees with Terry that people should be able to smoke in their units. She said she puts a rug under her door so her smoke doesn't travel to other units. Terry Gagne said she can smell other residents cooking smells in the hallway, but not in her unit, so she doesn't believe they can smell that much smoke in their units. Lola #417 stated cooking odors don't cause cancer and smoking does, and she doesn't appreciate smelling cigarette smoke. Rita Nelson #510 said she doesn't smoke but she feels those that do should be grandfathered in. Tom Tellen #612 agrees with Terry and thinks residents should be allowed to smoke in their units and also in a shelter outside. Cindy Tigue #507 said the major reason the decision was made was because of the cost to turn over an apartment of someone who smoked. She also doesn't think that residents understood what "grandfathered in" meant. Karen Faust #414 said the Board already voted on this. Diehm agreed and said it is not an agenda item and the decision will not be changed. She directed the management company to obtain bids on constructing an outdoor shelter for smokers and to bring the information back to the board for consideration. Nawrocki said there was considerable discussion on this matter at the last meeting based on two surveys that were done. He said the Board made its decision. However, he has seen the addendum to the lease and he thought the language was too strong. He objected to evicting a tenant that is caught smoking on a first offense, and he understood that smoking would be allowed outside the building, and the lease addendum states "no smoking is allowed on the Housing & Redevelopment Authority Minutes October 27, 2009 Page 5 of 14 grounds". Ecklund stated he would like to see residents grandfathered in, then there wouldn't be a need to build a shelter. People can't afford to just up and move. He said maybe by adding a requirement that all the smokers have air filters in their units would help the situation. Another resident said it isn't safe for residents to go outside to smoke, especially when it is cold and icy, or in the middle of the night. Kelzenberg stated that one of the reasons the policy was changed was because there was a fire in the building by someone who was smoking while she was on oxygen. He said it is the Board's responsibility to protect the residents and the building from that happening again. He believes the policy passed was the right decision. Nawrocki then said he had received an anonymous letter from a resident that someone in the building is bullying others especially for use of the elevator. He would like to have more information about this and told the residents to call him anytime and leave a message regarding this or any other matter. Diehm reminded the Board and residents that the City has hired a management company who does a good job and that residents should go through them whenever possible as it is their job to take care of such matters, and sometimes they have more knowledge of situations. 9. Acceptance of Modernization Bid for 3"d and 4t" Floor Improvements Back in 2004 the Board approved plans to begin an eight-phase project to modernize all PVVN units and the current phase encompasses the 3rd and 4t'` floor units. The remodeling includes new entry doors, kitchen cabinets, appliances, lighting, countertops, bathroom vanities, kitchen and bathroom faucets, and new carpeting in the hallways. The project was advertised in the Focus, the Builder's Exchange of Minneapolis and St. Paul, McGraw-Hill Construction Data, Reed Construction Data, and the National Association of Minority Contractors Plan Room, which resulted in eight bids. Funding will come in part from the FY 2008 HUD Capital Fund Program and the FY 2009 HUD Capital Fund Program. Award and signature of the contract would mean that all of the FY 2008 CFP Funds would be obligated prior to the June 12, 2010 deadline. Also a significant portion of the FY 2009 CFP Funds would be obligated well in advance of the obligation deadline. Staff reviewed the lowest three bids received and recommended the project be awarded to Project One Construction. It was noted that this is not the same contractor who did the work on the previous floors. Brian said previously the work had been done one floor at a time, however, this time bids were obtained for the 4t'` floor and for a combination of 3rd and 4t'` floors. Due to a more competitive market, the bids were less than anticipated and it was decided to do two floors as one project. Housing & Redevelopment Authority Minutes October 27, 2009 Page 6 of 14 Questions from members: Diehm asked if they had checked to make sure they are qualified companies and if they had checked with references. Brian said they had checked out the company chosen, and that they are bonded, insured, and have done other similar projects with good reports. Nawrocki asked what the bids for one floor were in the past. Brian told him the floor done last year was bid at $109,000, so the price of $155,956 for two floors was a significant savings. He said they are scheduled to start the project sometime in November. Terry Gagne asked if this company would finish the project because she didn't think the last one completed everything. She said some of her trim has peeled paint and that cove molding was never installed in the kitchen and bath areas. Lisa told her that cove molding was not part of the project and if she has trim that has peeling paint, she should file a work order and it will be taken care of. Motion by Nawrocki, seconded by Ecklund, to approve the bids and award the contract for Phase 6(3rd and 4t'` floors) of Parkview Villa North Apartment Modernization Project to Project One Construction for an amount not to exceed $155,956; and furthermore, to authorize the Chair and Executive Director to enter into an agreement for the same. All ayes. MOTION PASSED. 10. Approval of Parkview Villa North 2010 Bud~et - Resolution 2009-07 Lisa reviewed the budgets for the north and south buildings with the Board as a group item. Questions and discussion items are noted with each appropriate section. Parkview Villa North was built in 1975 with funds from the U. S. Department of Housing and Urban Development and consists of 101 units of Public Housing units. The proposed 2010 budget for PVVN is $641,373. The amount includes $155,956 for capital outlays. It is expected to fund the full amount from the 2008 and 2009 CFP funds. The available balance of these two funds is $163,125.11. The overall expense increase from the 2009 budget is 7.5%. In the 2009 budget there were no allowances for unit turnover expense and these expenditures account for 30% of the proposed increase. Administrative costs increased 3% and utility costs were budgeted for an overall 3.5% increase. Total proposed Revenue is $671,255 and includes rents of $318,994, Department of Housing and Urban Development operating subsidy of $233,681, and Department of Housing and Urban Development Capital Funding Program funds of $112,000, Investment Income of $5,000 and other miscellaneous charges. The apartment modernization capital improvement plans previously developed and approved will continue to be implemented. Staffrecommends adopting Resolution 2009-07, the 2010 PVVN Budget. Housing & Redevelopment Authority Minutes October 27, 2009 Page 7 of 14 Nawrocki asked if line item 1070 is payment that goes to City for administrative costs, and was told yes, it is. Motion by Kelzenberg, seconded by Peterson, to waive the reading of Resolution 2009-07, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Nawrocki to reduce line item 1070 by one half to $12,500. There was no second to this motion, so the motion failed. Motion by Kelzenberg, seconded by Ecklund, to adopt Resolution 2009-07, approving the Housing and Redevelopment Authority in and for the City of Columbia Heights, adopting the 2010 Parkview Villa North budget of $641,373 and recommending this to the City Council for approval. Roll call vote--All ayes. MOTION PASSED. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF COLUMBIA HEIGHTS HRA RESOLUTION 2009-07 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADOPTING THE 2010 BUDGET FOR PARKVIEW VILLA NORTH. BE IT RESOLVED By the Columbia Heights Housing and Redevelopment Authority (HRA) of Columbia Heights, Minnesota as follows: WHEREAS, Parkview Villa North, a 101 units rental apartment building, was constructed in 1975 for the purpose of providing affordable housing to seniors and disabled persons. NOW, THEREFORE BE IT RESOLVED BY THE HRA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The HRA adopts and recommends to the City Council for approval the 2010 Parkview Villa North budget of $641,373.00 The Executive Director is instructed to transmit a copy of this resolution to the City Manager and City Finance Director of the City of Columbia Heights, Minnesota. APPROVED THIS 27th DAY OF October, 2009. Attest by: Walter R. Fehst, Executive Director Tammera Diehm, Chair Housing & Redevelopment Authority Minutes October 27, 2009 Page 8 of 14 11. Approval of Parkview Villa South 2010 Bud~et - Resolution 2009-08 Parkview Villa South was built in 1991 and has 45 apartment units that serve low-income residents age 55 or older. The proposed 2010 budget for PVVS is $281,780. Of this amount, $64,350 is allocated for capital projects. There is an overall expense increase of 6%. The 2009 budget did not reflect budgeted expenses for unit turnovers. The 2010 budget reflects anticipated costs for unit turns and the operating and maintenance expenses have been increased because of this allowance. Administrative expenses increased 2.4% and utilities were increased 4%. Proposed gross revenues are $302,557 and include rents of $296,592-- investment income of $2500-- and other miscellaneous charges. The rent revenues do not reflect an increase in rents for 2010. Staffrecommends adopting Resolution 2009-08 the 2010 PVVS Budget. Motion by Peterson, seconded by Kelzenberg, to waive the reading of Resolution 2009-08, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Nawrocki to reduce line item 1070 by one half to $5,700. Peterson asked what rationale he used to arrive at that amount since staff had already submitted documentation to justify the recommended budgeted amount. Peterson said he had faith in staff and realizes the time it takes to manage this facility from many aspects. Nawrocki stated that he thinks the administration fees are inflated and that staff is always looking for more money and that they should be looking for ways to cut costs, rather than increase them. This motion failed from lack of a second. Motion by Peterson, seconded by Kelzenberg, to adopt Resolution 2009-08, approving the Housing and Redevelopment Authority in and for the City of Columbia Heights adopting the 2010 Park View Villa South budget of $281,780 and recommending this budget to the City Council for approval. Roll call vote--All ayes. MOTION PASSED. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS HRA RESOLUTION 2009-08 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADOPTING THE 2010 BUDGET FOR PARKVIEW VILLA SOUTH. BE IT RESOLVED By the Columbia Heights Housing and Redevelopment Authority (HRA) of Columbia Heights, Minnesota as follows: WHEREAS, the City had constructed in 1991 Park View Villa South (PVVS), a 45-unit rental apartment building, for the purpose of providing housing for low-income seniors age 55 and older. Housing & Redevelopment Authority Minutes October 27, 2009 Page 9 of 14 NOW, THEREFORE BE IT RESOLVED BY THE HRA FOR THE CITY OF COLUMBIA HEIGHTS, MINNESOTA THAT: 1. The HRA adopts and recommends to the City Council for approval the 2010 Park View Villa South budget of $281,780.00 The Executive Director is instructed to transmit a copy of this resolution to the City Manager and City Finance Director of the City of Columbia Heights, Minnesota. APPROVED THIS 27th DAY OF October, 2009. Attest by: Walter R. Fehst, Executive Director Tammera Diehm, Chair 12. Discussion on Future Rental Increase Policv for Parkview Villa South-Resolution 2009-10 Clark stated that over the past seven years a series of discussions have been held by the HRA regarding rent increases at PVVS. The memo included in the agenda packets summarized the discussions. The result is that 36 of the 45 units are now at a base rent of $562 for a one- bedroom unit and $715 for a two-bedroom unit. Nine of the units are still below the base rents based on actions that occurred in 2006. The critical issue is that staff has no direction or authorization to increase rents further, and therefore, no rent increases are proposed for the 2010 budget. Staff is recommending that the HRA establish a long-term future rent increase policy for two major reasons: 1) To ensure that future capital improvements can be funded as needed. In July, the HRA reviewed a CIP Plan illustrating a need for almost $1,000,000 of improvements over the ne~t twenty years, and 2) To ensure that after 2029 a sufficient fund balance is maintained for the ne~t capital improvement period, and that anticipated total income can continue to match or exceed annual operating costs. Two spreadsheets included in the packets illustrate the rationale for the recommendation of a continuous annual3% rent increase beginning in 2011. These spreadsheets assume the following: 1) Base rents in 2010 at $562 for a one-bedroom and $715 for a two-bedroom. 2) Increase of 3% annually starting in 2011. 3) Assumption that all "below base rent units" will be converted to full base rent units by 2014. 4) A vacancy rate of 3%. 5) Future value expenditure payments of $959,067 to cover capital improvement costs. 6) In order to project a financial status range for 2029 (both in terms of fund balance and income to expenditure variance) a"best case" and "worst case" scenario was developed by using, in one case, a 4.5% annual inflation on expenditures and in the second test, a 5% inflation factor. Housing & Redevelopment Authority Minutes October 27, 2009 Page 10 of 14 Spreadsheet A, using a 4.5% future expenditure growth factor, illustrates that by 2029 income exceeds expenditures annually by $49,457, which enables PVVS's fund balance to grow for future capital needs. In addition, the 2029 fund balance is projected at $1,234,307 which is a future value that translates to a present value of appro~mately $720,000 using a 3% discount. Spreadsheet B, using a 5% future expenditure growth factor, illustrates that by 2029 expenditures begin to exceed income, (a negative variance of $7,265). Fund balance is $814,150 and using the same 3% discount, has a present value of appro~mately $480,000. Projecting out 20 years always needs a constant reassessment, as actual income and expenditures are realized from year to year. Staff believes the spreadsheets indicate the need to establish a formal policy for annual rent increases starting in 2011, and that by having a 3% annual increase, it will prevent future residents from having substantial rent increases in order to catch up on building critical fund balances and/or paying for necessary capital improvements. Questions from members: Nawrocki asked what the e~sting fund balance was for the south building. Clark stated that as of 12/08 it was $411,095 which was the starting point for the information detailed on the matrix. Nawrocki thought it was higher. Clark said the audited EDA statement showed this same figure, and he gave Nawrocki a copy of the report. Nawrocki then went on to say he thinks the City Administration fees are too high since CommonBond does a lot of the financial work now. If those fees were reduced than rents wouldn't have to be increased as much. Nawrocki stated that rents have doubled since 2002. At that time the minimum rent was $250/month and now it is up to $562/month for a one- bedroom apartment. He didn't think rents should be projected for 20 years into the future, as no one knows what the economy will be like and what other similar buildings will do. He said capital expenditures could change during this period also. Clark told the members that this is a 20-year plan meant as a tool so that maintenance and updating of the building can be done. He agreed that it is something that will need to be re-visited every couple of years, as stated in the HRA Action letter, to see if things need to be re-adjusted due to unforeseen issues. Nawrocki asked why we are voting now to raise rates in 2011. Clark stated he thinks it is the fair thing to do so that residents have a 14-month notice to plan their budgets accordingly. Nawrocki wanted to make it clear that if approved, this does not give staff authorization for any projects without further Board approval. Motion by Kelzenberg, seconded by Peterson, to waive the reading of Resolution 2009-10, there being ample copies available to the public. All ayes. MOTION PASSED. Housing & Redevelopment Authority Minutes October 27, 2009 Page 11 of 14 Motion by Kelzenberg, seconded by Peterson, to adopt Resolution 2009-10, approving an annual 3 percent rent increase for all Parkview Villa South units starting on January 1, 2011. Roll Call: Ayes: Peterson, Ecklund, Kelzenberg, Diehm Nay: Nawrocki MOTION PASSED. HRA Resolution 2009-10 Resolution Approving An Annual3% Rent Increase For All Parkview Villa South Units Starting on January 1, 2011 WHEREAS, the City of Columbia Heights Housing and Redevelopment Authority (HRA) are the owners of Parkview Villa South located at 950 40t'' Ave Northeast, and WHEREAS, the HRA needs to ensure current and future residents that sufficient fund reserves are in place to provide for needed and necessary capital improvements, and WHEREAS, in order to ensure that these funds will be available, the HRA has analyzed a twenty year Capital Improvement Plan dated June 15, 2009, and WHEREAS, the HRA has reviewed a twenty year income and expenditure analysis developed by staff to determine future monetary needs, and WHEREAS, the HRA has concluded from these aforementioned documents that an annual3% rent increase for all units at Parkview Villa South needs to be established to provide adequate future capital to sustain the subject asset, NOW THEREFOR BE IT RESOLVED, 1) The City of Columbia Heights Housing and Redevelopment Authority hereby agrees that an annual3% rent increase shall be applied to all Parkview Villa South units, including ancillary amenities such as: underground parking and electric services for air-conditioning, starting on January 1, 2011. Passed this 27t'' day of October 2009. MOTION BY: Kelzenberg SECONDED BY: Peterson Chair- Tammera Diehm Attest by: Shelley Hanson, Recording Secretary Housing & Redevelopment Authority Minutes October 27, 2009 Page 12 of 14 PUBLIC HEARINGS 1. Approval of PHA Plan- Resolution 2009-09 The Quality Housing and Work Responsibility Act of 1998 requires all Housing Authorities to prepare an Agency Plan each year and a five-year plan every five years. Staff has completed the draft copy of the 2010 Columbia Heights Agency Plan and a five-year (2010-2015) for the public to review. A summary of this plan has been available for review by the public at Parkview Villa's leasing office, the City of Columbia Height's Community Development Office, the Columbia Heights Library since mid September. Management attended the Parkview Villa Resident Advisory Board October meeting to review the plan, and Anoka County has been sent the Plan for comment. HUD requires a variety of documents to be incorporated into the plan. After this Public Hearing, the HRA Board can make any final modifications and then authorize staffto submit the final document to HUD. Staffrecommends the Board open and close the hearing, make any necessary amendments, adopt Resolution 2009-09 approving the Public Housing Agency Certifications of Compliance, with the PHA Plans and related regulations, and authorize its submission to HUD. Comments from the members: Lisa reviewed items included in the 2010 Plan and the 5-year Plan. Item 7.0 must be included in the plan if the possibility e~sts to discuss future disposition of Parkview Villa. Clark clarified the Plan is submitted to HUD for the North building, but that if disposition of Parkview Villa is considered in the future, action by the HRA on the PHA gives policy direction to act on disposition activities for both Parkview Villa north and south collectively. The smoke free addendum has been included. Members wanted Section 3 of the addendum modified to take out the language "or adjoining grounds of such building". Lisa stated they could do this, but all the residents will have to re-sign the new addendum and they will have 60 days to do so. Not signing the addendum is a reason to evict. Lisa explained that strong language was used in the addendum so the company can enforce the policy. It provides clear direction and ramifications to satisfy any legal disputes that may arise. She went on to explain the disclaimer language is standard and protects CommonBond from frivolous lawsuits that could arise regarding this issue. Nawrocki was concerned that mandatory eviction would result in someone caught smoking in the building. Lisa said the policy does allow for some discretion on the part of the management company. She stated that clearly it is a lease violation and it gives the company the right to terminate a lease, depending on the seriousness of the offense, but they would probably warn someone first and explain to them the ne~t incident would result in eviction. Renie Sufka #104 noted that sidewalk repair is not scheduled unti12013. Lisa said that is what is Housing & Redevelopment Authority Minutes October 27, 2009 Page 13 of 14 designated in the plan, but if funds are available, repairs or replacement can be made before then once we know if there is any grant money left. Nawrocki asked about page 1, Section 5.2 that states we plan to expand the supply of public housing. Lisa explained that we already meet this requirement by maintaining the vacancy rate at 98% or above for over a year. It does not mean we will be adding more units. Motion by Kelzenberg, seconded by Peterson, to waive the reading of Resolution 2009-09, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Kelzenberg, seconded by Peterson, to adopt Resolution 2009-09, a Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) confirming approval of the 2009 Public Housing Agency (PHA) Certifications of Compliance with the PHA plans and related regulations, and authorizing submission to HUD. Roll Call Vote--All ayes. MOTION PASSED. HRA RESOLUTION 2009-09 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT (HRA) CONFIRMING APPROVAL OF THE 2010 PUBLIC HOUSING AGENCY CERTIFICATIONS OF COMPLIANCE WITH THE PHA PLANS AND RELATED REGULATIONS. WHEREAS, The Department of the Housing and Urban Development has requested that Public Housing Agencies submit a Certification in regard to Public Housing Agency Compliance with the PHA Plans and Related Regulations; and WHEREAS, The PHA Plan was published for review and comment in the local newspaper on September 24, 2009, October 1, 2009 and October 8, 2009; and WHEREAS, such Certification also requires the formal approval of the Board of Commissioners; NOW THEREFORE BE IT RESOLVED, by the Board of Commissioners of the Columbia Heights Housing & Redevelopment Authority that the attached (Appendix) Public Housing Agency Certifications of Compliance with the PHA Plans and Related Regulations is hereby approved. ADOPTED THIS 27t'' day of October, 2009. MOTION BY: Kelzenberg SECONDED BY: Peterson AYES: Kelzenberg, Peteson, Ecklund, Nawrocki, & Diehm HOUSING AND REDEVLOPMENT AUTHORITY Chair- Tammera Diehm Executive Director- Walter R. Fehst Housing & Redevelopment Authority Minutes October 27, 2009 Page 14 of 14 Other Business There was nothing at this time. The ne~t HRA meeting is tentatively scheduled for January 26, 2010. Since this is after the Holidays, Chair Diehm wished everyone a happy and healthy holiday season. The meeting was adjourned at 8:50 pm Respectfully submitted, Shelley Hanson Recording Secretary