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HomeMy WebLinkAboutOctober 26, 2010 HRA MinutesHOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE REGULAR MEETING OF OCTOBER 26, 2010 Call to order — The meeting was called to order by Chair Diehm at 7:00 pm 2. Roll Call — Members present: Bruce Nawrocki, Bruce Kelzenberg, Dennis Ecklund, Gary Peterson and Tammera Diehm. Members Absent: Bobby Williams Staff Present: Executive Director -Walt Fehst, Community Development Director -Scott Clark, Assistant Community Development Director - Sheila Cartney, and Secretary - Shelley Hanson Parkview /CommonBond staff: Laura Sheak, Jennifer Eels, and Lisa Wilcox- Erhardt 3. Pledge of Allegiance - Recited CONSENT AGENDA 4. Approve Minutes from July 27, 2010 5. Approve Financial Report and Payment of Bills for July, August, and September 2010 on Resolution 2010 -07. Questions from members: Nawrocki asked where the revenue funds are invested and how much return we are receiving on them? Lisa explained that he would have to get that information from the City's Finance Department. Staff will get that information to him. Nawrocki then asked what the "PILOT" payment was for? Lisa stated that this is the "payment in lieu of taxes"' that Parkview Villa is responsible for. Nawrocki then questioned the servicing fees stated in the proposed budget. He again went on record that he felt these fees were excessive. Lisa said the fees were established by the City during the budget process, not by CommonBond. Ecklund asked that monies not expended in 2010 for the weekend caretakers be used to replace the closet doors in the Community Room. Diehm said they would address this later in the meeting. Motion by Nawrocki, seconded by Ecklund to approve the minutes of July 27, 2010. All ayes. MOTION PASSED. Motion by Peterson, seconded by Kelzenberg, to approve the consent agenda items as listed and to approve Resolution 2010 -07, Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) approving the Financial Statement and Payment of Bills for the months of July, August and September 2010. All Ayes. MOTION PASSED. HRA Minutes Page 2 October 26, 2010 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT AND PAYMENT OF BILLS FOR THE MONTHS OF JULY, AUGUST, AND SEPTEMBER, 2010. 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 2010 and the list of bills for the months of July, August, and September 2010 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 26 day of October, 2010. BUSINESS ITEMS 6. Report of the Management Company Laura asked if there were any questions on the newsletter items or on the maintenance reports. Nawrocki asked if the $10,000 Capital Improvement Grant monies have been used yet. Lisa explained those funds will be used for the 2" d floor renovations, but they haven't been started yet. She said the project is being sent out for bids to Architects and that information should be ready for consideration at the next meeting. Nawrocki then asked why the Police Reports were not included for September and October. Laura stated she asked for them numerous times, but got no response to her e- mails. Staff will check on this and see that they are provided. HRA Minutes Page 3 October 26, 2010 Dielun stated she likes to see the maintenance reports detailing how and when they are resolved. She thanked management staff for supplying them. Laura told the members about the Artwork displayed in the Community Room based on interviews of ten of Parkview's residents. The stories were written by Carol Lacey, and the corresponding artwork was done by Margaret Houlton. This project was done with the help of the MRAC grant. Lisa told members that Jennifer Els recently received the Assistant Manager Award from MADACS (Multi- Housing Achievement in Design, Advertising, and Community Support). The Board congratulated her on his honor. 7. Resident Council Minutes Lyn Miner reviewed the Resident Council minutes and Treasurer's Report. Diehrn presented a plaque from the residents to Dennis Ecklund for his service on the Resident's Council. Nawrocki stated he had received two calls from residents in Parkview Villa South regarding different rates for rents paid by the tenants. He said that some action was taken in 2007 regarding rental rates, but that action did not address the different rates and that 6 or 7 people were still paying reduced rental rates. Clark said this matter was actually discussed in June or October of 2009 when the board implemented a 3% increase per year. He said staff prepared a history /background of the rents at that time and recognized that there was a different structure for a few of the tenants. Their rent was originally based on income and has never been adjusted. Newer tenants pay the market rate as decided by the board. This means these 6 or 7 tenants pay $10 -$300 less per month than the current rates. The board decided in 2009 to leave it as is and just implement the 3% increase each year. Clark will get the minutes and history to the members and if they wish to discuss this in January to let him know. Ken Block -unit #315 -has lived there for four years. He said some of the 6 -7 residents thought their rents would go up, and since they haven't, they are concerned that it could go up all at once and be more than they could handle financially. 8. Citizen Forum Larry Beaman stated he just moved into the building and likes it there. He said he should have been told that his rent would increase when he moved into the building. He then asked if the rules are the same for both buildings. Laura told him, no, they are not necessarily the same since the north building is a HUD building and there are federal rules that must also be followed. HRA Minutes Page 4 October 26, 2010 Nawrocki gave a brief history of the buildings. He told Mr. Beaman that the north building was built with federal funds and the south building was built with TIF funds, and therefore is not subject to all the federal (HUD) regulations. Ken Block -Unit 4315- stated he thought the exterior work done was supposed to fix the water leaks. He claims there are some units that are still having water leaking into their units. Laura said she hasn't been made aware of these and told the residents present to report any leaking issues to her and she will have it checked out. Terry Gagne -Unit #704- stated that her toilet doesn't work right. It overflows periodically for no apparent reason. The last major overflow occurred in August. Lisa will have maintenance look at it again. Nawrocki said he didn't see anything in the maintenance reports regarding her toilet problems. 9. Staff Direction of Alcohol Policy Clark explained that at the October 11, 2010 Resident Council meeting, the Resident Council voted to amend the recently adopted bylaws. The HRA board was notified of the proposed amendments on August 13, 2010 by a separate memo, which was included in the agenda packet. Three amendments were approved at the Resident Council meeting, and are now forwarded to the HRA Board. The fourth item that was voted on at the Resident Council meeting regarded prohibiting the consumption of alcohol on the grounds and in the adjacent outside areas of Parkview Villa. At the same meeting a correction to this motion was discussed that "the Resident Council does not have the authority to enforce lease regulations, but we may pass motions, and present them to HRA for their consideration. Your vote is an opinion on the issue and a request for action." It is staff's understanding the Resident Council voted to prohibit alcohol from the grounds and outside areas of Parkview Villa. Staff is not recommending an action at this time, but is seeking direction whether the HRA board desires to discuss this issue at their January meeting. If this is the board's direction, staff will work with CommonBond to create a policy. Questions /Comments from members: Ecklund said there never used to be a problem with residents drinking outside. He thought it was already in the handbook or was a building policy. He said residents are concerned with people carrying bottles outside and sitting there drinking. He said it turns visitors away and doesn't reflect well on the building. Lyn Miner -Unit 4202 -She thought the problem was bad behavior and language. Residents can still drink in their apartments or at the bar and sit outside and use bad language. HRA Minutes Page 5 October 26, 2010 DianeYoung -Unit 905 -She feels that visitors get scared or intimidated by people sitting out there. It turns potential tenants away also. She has been at Parkview for 15 years and this is a new issue. She, too, thinks it reflects poorly on the building as a residence. Nawrocki said if someone is causing problems, the residents should call the Police. Terry Gagne -Unit #704 -She agreed with Diane. One of the new residents is violating this policy. Laverne Harper -Unit 4408 -Her granddaughter got mooned. She won't have her back here again. There's no drinking in the park and there shouldn't be on the grounds of Parkview either. Ken Block -Unit #315 -Since residents have to go outside to smoke, they do their drinking out there too. He said this never was an issue before the "no smoking policy" went into effect. Diane Young agreed with him. Laura stated that it says in the lease that it is a violation to abuse alcohol. Residents asked why the repeat offender was still there. Laura said the situation is being handled my management, and for legal reasons, cannot be discussed publicly. Ecklund asked why management puts letters on doors without knocking and verifying when someone is accused of smoking in their units. Diehm asked how smoking in the units is verified? Laura said if a complaint is received, they investigate. She said you can usually smell the smoke and locate its origination. She stated it is subjective, but that residents are not kicked out with just one warning. They get several warnings and do their best to verify. Diehm acknowledged that if they have cause to investigate and are reasonably sure of the violation, the Board supports the management staff as they are doing the best they can to implement the policy. (Hugh) Mike Farmer -Unit #307 -Asked if people with social workers have more leniency? Laura said no. They must follow the rules the same as anyone else. Ron Houle -Unit #424 -asked if anything was being done about constructing a smoking shelter? Diehin stated the Board did ask for some estimates on what it would cost to construct a shelter, but no decision has been made to construct one. She then asked if there was a printed policy on the issue of alcohol use on the grounds of Parkview Villa. Clark stated he thought it was informal and that staff will work on this if it is the Board's desire. Ecklund asked if residents can still drink outside? Diehm stated that the resident council already voted on this to prohibit drinking outside. She said even though it is not enforceable as a lease violation, it should still be respected until a formal policy is established. She directed staff to come back with some history on this, to research any HUD provisions, and to suggest a policy on this issue based on the discussion at this meeting. HRA Minutes Page 6 October 26, 2010 10. Approval of Parkview Villa North 2011 Budget - Resolution 2010 -08 Lisa stated for the record that Parkview Villa North consists of 101 units of public housing, and is located at 965 40` Avenue Northeast. PVVN serves seniors and disabled persons. PVVN was constructed in 1975 with funds from the U.S. Department of Housing and Urban Development. CommonBond Housing provides management services to PVVN. Lisa then explained the proposed budget as follows: Expenditures The proposed 2010 budget for PVVN is $617 06 . The amount includes $112,000 for capital outlays. Although some expense line items increased, we were able to make an overall budget decrease in expenses of 3.75 %. The overall budget decrease is greatly due to a decrease of $43,956 of capital expenditures from 2010 to 2011. Administration costs increased by .5 %. Utility costs remain the same except that a fuel expense was included to show actual cost of fuel to fill the generator. Operating and Maintenance expenses increased a total of 22% from 2010. However, included in this increase is $3,700 for replacement of the front door directory system, $10,000 for update of air exchanger controls, $5,000 for concrete work and parking lot patching and seal coating, $1,000 for new outside furniture and other necessary line item increases. Revenues Total proposed revenue is 5688 651 and includes rents of $319,260, Department of Housing and Urban Development operating subsidy of $245,0 , and Department of Housing and Urban Development Capital Funding Program funds of $112,000 and other miscellaneous income of $11,891. Capital hnprovement Plan The apartment modernization capital improvement plans previously developed will continue to be implemented. Staff recommends adopting Resolution 2010 -08, the 2011 PVV North Budget. Questions /Comments from members Nawrocki again addressed the servicing fees and thought the amount and increases were excessive. Clark stated that the Board decided a few years ago to set the amount based on a percentage of costs detennined by the Finance Department. Nawrocki then questioned line item 2160 for Maintenance. He wanted to know why it went up from $6,470 in 2009 to $10,200 in 2010 and 2011. Lisa explained that as the building gets older, more items need to be replaced. She also said that the proposed figure in 2009 was probably higher than the $6,470 indicated. She reminded members that the 2009 figures are the actual expenses, and the 2010 and 2011 figures shown are the budgeted amounts. Nawrocki then asked about line item 3041 for Attorney Fees. He said there is nothing noted for 2009, then $5,000 in 2010 and in 2011. Diehm pointed out that there were expenses for legal fees in 2009, but noted in line item #3040 under Legal Fees. This amount is budgeted in case there is a need for legal advice for a variety of issues such as damage, personal injury, evictions, etc. HRA Minutes Page 7 October 26, 2010 Nawroeki then noted that the figures for utilities proposed in 2011 were the same as 2010, and that they were much higher than in 2009. Again, Lisa stated that the budgeted amounts in 2009 were also the same figure, but the amount noted on this proposal shows the actual expenditures in 2009, not the amount that was budgeted. She said they are estimates since they have no control over utility rates or how severe the winter will be. Lisa reminded the Board that even though some line items increased, the overall budget decreased in expenses of 3.75 %. Motion by Peterson, seconded by Kelzenberg, to move to waive the reading of Resolution 2010 -08 there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Peterson, seconded by Kelzenberg, to adopt Resolution 2010 -08, being a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights, adopting the 2011 Parkview Villa North Budget of .>r617,06 nd recommending this to the City Council for approval. Roll Call: All Ayes. MOTION PASSED. I► ►11 i .__ • C HRA RESOLUTION 2010 -08 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY ADOPTING THE 2011 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 2011 Parkview Villa North budget of $617,060.00 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 26th DAY OF October, 2010. Attest by: Walter R. Fehst, Executive Director Taimnera Dielun, Chair HRA Minutes Page 8 October 26, 2010 11. Approval of Parkview Villas South 2011 Budget - Resolution 2010 -09 Lisa stated for the record that Parkview Villa South (PVVS) is a 45 -unit apartment building, located at 965 40 Avenue Northeast. PVVS serves low - income seniors age 55 and older. PVVS was constructed in 1991. PVVS is owned by the Economic Development Authority and managed by CommonBond Housing. Lisa then reviewed the 2011 budget as follows: Expenditures The proposed 2011 budget for PVVS is $263,938. Of this amount, $35,000 is allocated for capital projects. There is an overall budget decrease of 6.5 %, however the decrease is greatly due to the reduction of projected building capital expenses from 2010 to 2011. Administration expenses increased by 1.2% and Utilities increased by 3.8 %. Operating and Maintenance expenses increased by 18.2% from 2010. However, included in this increase is $1,000 for replacement of the front door directory system, $2,000 for additional concrete work and parking lot patching and seal coating, $1,000 for new outside furniture and other necessary line item increases. Revenues Proposed gross revenues are $ 309,129 and include rents of $296,529 other miscellaneous income of $12,600. The rent revenues do reflect an increase in rents of 3% as per 2009 Board discussion to help set aside money for current and future capital improvements. Staff recommends adopting Resolution 2010 -09 the 2011 PVVS Budget. Questions /Comments from members: Nawrocki questioned several line items in the proposed budget. He noted that the cost of refuse service increased from $500 in 2009 to the proposed figure of $2,500. Lisa stated that the refuse contract is negotiated by the City. Parkview Villa's refuse service was a limited charge with the old company. The new company is now charging them for service under the contract negotiated by the City. Therefore, the amount had to be increased. He asked why office supplies were being increased. Lisa said it was increased slightly because they have to get a new copier and maintenance agreement, as theirs is no longer functional. Diehm stated that the overall budget was decreased 6.5 %. She felt that was a good reduction overall, and that members shouldn't be concerned if some adjustments were made to certain line items as long as the bottom line is less and the building continues to be maintained adequately. It is not unusual for line items to be tweaked as needs or actual expenditures from previous years indicate a change. HRA Minutes Page 9 October 26, 2010 Ecklund then asked if the three closet doors by the main office and in the community rooms could be replaced. As he stated earlier, he feels the unexpended funds that were budgeted for the weekend caretakers would cover the cost of replacing the doors. Lisa said the replacement of the doors would run between $1,50042,000 based on old bids she had obtained. She stated the maintenance people have worked on the doors a number of times, but they still fall off from time to time. Nawrocki thought the doors could be fixed by adding guides to the bottom. Peterson thought they should just be replaced. He said he would do some checking to come up with an estimate. Motion by Peterson, seconded by Kelzenberg, to waive the reading of Resolution 2010 -09 there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Peterson, seconded by Kelzenberg, to adopt Resolution 2010 -09 a Resolution of the Housing and Redevelopment Authority in and for the City of Columbia Heights adopting the 2011 PVVS Budget of $263,93 and recommending this budget to the City Council for approval. Roll Call.• All ayes. MOTION PASSED. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR COLUMBIA HEIGHTS HRA RESOLUTION 2010 -09 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 Parkview Villa South (PVVS), a 45 -unit rental apartment building, for the purpose of providing housing for low- income seniors age 55 and older. 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 2011 Parkview Villa South budget of $263,938.00 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 26th DAY OF October, 2010. Attest by: Walter R. Fehst, Executive Director Tammera Diehm, Chair HRA MINUTES Page 10 October 26, 2010 PUBLIC HEARINGS 1. Approval of 2011 PHA Plan — Resolution 2010 -10 Lisa explained to the members that 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 2011 Columbia Heights Agency Plan. She reviewed a summary of the Plan's contents and stated that a full copy of the draft plan with attachments and supporting documents have been available for review by the public at Parkview Villa's leasing office, City of Columbia Heights Community Development Department and the Columbia Height's Public Library. Staff attended a Parkview Villa Resident Advisory Board October special meeting to review the plan. To date no public comments have been received. HUD requires a variety of components and documents to be incorporated into the annual plan. They include a PHA plan update showing annual and 5 -year plan capital needs updates, progress update, statements of needs and resources, and numerous HUD certifications. After the Public Hearing on October 26, 2010 the HRA Board can make any final modifications to the plan and authorize staff to submit the final document to HUD. The entire document will be generated electronically and transmitted to HUD. Staff recommends the HRA Board open and close the Public Hearing, make amendments to the plans if needed, and adopt HRA Resolution 2010 -10, that being Resolution of the Columbia Heights Housing and Redevelopment Authority confirming approval of the Public Housing Agency Certifications of Compliance, with the PHA Plans and related regulations, and authorizing it's submission to HUD. Questions /Comments from members: Fehst asked if an outdoor smoking shelter was included in this PHA Plan? Lisa said no, it wasn't, but there are funds in the 2011 proposed budget that could be appropriated for that. She said it will be more costly than originally anticipated because it will require land excavation since there isn't much level ground on the site. She said she has gotten informal estimates of $2,000 - $12,000 depending on the size and style constructed. Motion by Peterson, seconded by Ecklund, to waive the reading of Resolution 2010 -10, there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson, seconded by Ecklund, to adopt Resolution 2010 -10, a Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) confirming approval of the 2011 Public Housing Agency Certifications of Compliance with the 2011 PHA plan and related regulations, and authorizing it's submission to HUD. All Ayes. MOTION PASSED. HRA Minutes Page 11 October 26, 2010 HRA RESOLUTION 2010 -10 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT (IRA} CONFIRMING APPROVAL OF THE 2011 PUBLICH 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 2011 PHA Plan was published for review and comment in the local newspaper and is located at the local Public Library, administrative offices of the PHA, and the PHA development management office. 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 Certification of Compliance with the PHA Plans and Related Regulations is hereby approved ADOPTED THIS 26 day of October, 2010 MOTION BY: Peterson SECONDED BY: Eckhxnd AYES: All Ayes HOUSING AND REDEVELOPMENT AUTHORITY Chair — Tammera Diehm Executive Director — Walter R. Fehst OTHER BUSINESS Ecklund thanked Gary, Tami, and Bruce Kelzenberg for rumling for elected office again. He wished them well in the upcoming election. The next regular HRA meeting is tentatively scheduled for January 25, 2011 at Parkview Villa. The meeting was adjourned at 8:30 pm. Respectfully Submitted, J���� � Shelley Hanson Recording Secretary