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HomeMy WebLinkAboutNovember 9, 2009, MinutesHOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE SPECIAL MEETING OF November 9, 2009 1. Call to Order - The meeting was called to order by Chair Diehm at 6:15 p.m. 2. Roll Call- Chair: Tammera Diehm, HRA members: Bruce Nawrocki, Dennis Ecklund Jr., Bruce Kelzenberg, and Gary Peterson. Excused members: Bobby Williams Staffpresent: Executive Director-Walt Fehst; Deputy Executive Director-Scott Clark; and Secretary- Shelley Hanson. Parkview/CommonBond Staff: Laura Sheak and Lisa Wilcox-Erhardt. 3. Pledge of Allegiance BUSINESS ITEMS 4. Consideration of an extension of CommonBond's Mana~ement Contract - On 7anuary 23, 2008, the HRA approved a five-year management contract with CommonBond running from February 1, 2008 to January 31, 2013. This approval was granted based on approval by HUD. HUD disallowed the five-year term based on an Annual Contributions Contract (ACC), signed in 1969, which only allows for two-year contracts. Since the intent was to have CommonBond receive a five- year contract, new wording was added to have a two-year contract with three-one year e~tensions. The contract was approved by the HRA on Apri122, 2008. Staff recommends e~tension of the contract based on the spirit and intent of the original contract and the excellent performance by the management agency. Comments from members: Nawrocki questioned the number of e~tensions needed to fulfill the original intent of a 5-year contract. Clark explained that legal counsel made a determination that the two one-year e~tensions meets the requirements and intent of the ACC. Ecklund stated that there used to be weekend caretakers on staff which is a requirement of the contract. However, there hasn't been a weekend caretaker for several months now and he would like that addressed. Lisa responded that the weekend caretaker position was open and required someone for four hours on Saturdays and Sundays. The primary responsibility was to do general maintenance/repairs that came up and to move the dumpsters as necessary. CommonBond had hired someone to fill the position and that fell through, so they had to start the process over again. They have again hired someone and they are supposed to begin November 14, 2009. Nawrocki stated he had a long history and knowledge of CommonBond as a company. He was supportive of hiring them to manage Parkview Villa. However, he wanted the record to show that as he stated at the last meeting, he was disappointed in the way they handled the new smoking policy. He thought the language in the lease addendum was too strong, and therefore, was poorly handled. Peterson stated he had two or three calls from people in support of e~tending the contract with CommonBond. Housing & Redevelopment Authority Minutes November 9, 2009 Page 2 of 3 Motion by Peterson, seconded by Kelzenberg, to waive the reading of Resolution 2009-11, there being ample copies for the public. All ayes. MOTIONPASSED. Motion by Peterson, seconded by Kelzenberg, to adopt Resolution 2009-11, extending CommonBond Housing's Management Contract for Two One-Year Extensions for Management of Parkview Villa North and South, ending on .Ianuary 31, 2012. Roll Call vote: All ayes MOTION PASSED. HRA RESOLUTION 2009-11 Extension of CommonBond Housing Management Contract Until January 31, 2012 for Management of Parkview Villa North and South WHEREAS, on January 23, 2008 the City of Columbia Heights's Housing and Redevelopment Authority (HRA) approved a management agreement with CommonBond Housing (CommonBond) which included a provision for a five-year contract, and WHEREAS, the Department of Housing and Urban Development (HUD) denied the ability of the HRA to enter into a five-year contract based on a previously approved 1969 Annual Contributions Contract which limits all contracts to two years, and WHEREAS, in order to meet the spirit and intent of the originally approved five year contract both HUD and the HRA agreed to a management contract term of an initial two year period with three one-year extensions, and WHEREAS, this language is memorialized in Section 1.3 of the final and approved contract approved by the HRA on Apri122, 2008, and WHEREAS, the HRA is satisfied by the performance and competence of CommonBond and desire to extend the subject term, NOW THEREFORE BE IT RESOLVED, 1) The HRA approves two one-year management contract extension periods, per Section 1.3 of the April 22, 2008 Management Agreement. Per this Agreement, the management term will end on January 31, 2012 with a one-year extension remaining. Staff is instructed to advise CommonBond in writing, by November 27, 2009, of the HRA's intent to exercise this effective two year contract option. Passed this 9th day of November 2009. MOTION BY: Peterson SECONDED BY:Kelzenberg Attest by: Chair- Tammera Diehm Shelley Hanson, Recording Secretary Housing & Redevelopment Authority Minutes November 9, 2009 Page 3 of 3 Other Business Nawrocki stated his disapproval of staff authorizing the work on the driveway and heat coils for the entrance to the parking garage. He said it clearly states in the By-Laws that any contract work that exceeds $15,000 must be taken to the Board for approval. He asked that the City Council or Legal Counsel look at the bidding process that was followed, and the contract to make sure it was executed in a legal manner. Nawrocki didn't dispute the work needed to be done, but at the same time didn't feel expenditures should be handled this way. Clark stated he had already acknowledged to Mr. Nawrocki that the item should normally come before the Board. He went on to explain that staff does have some discretion for emergency repairs per the management contract, especially on an item that had been discussed at a previous meeting, and Parkview Villa's capital improvement budget line item had sufficient funds. He felt that authorization to proceed was warranted based on the poor weather we were experiencing and the chance that the concrete plants would be shutting down for the winter shortly. No further action was taken by the Board. The ne~t HRA meeting is tentatively scheduled for January 26, 2010. The meeting was adjourned at 6:30 pm Respectfully submitted, Recording Secretary