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HomeMy WebLinkAbout01-24-12 HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE MEETING OF JANUARY 24, 2012 Call to order – 1.The meeting was called to order by Chair Diehm at 7:00 pm Roll Call 2. – Members present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Bobby Williams, and Tammera Diehm. Staff Present: Community Development Director-Scott Clark, Assistant Community Development Director -Sheila Cartney, and Secretary-Shelley Hanson Parkview/CommonBond staff: Laura Sheak, Laura Frost, and Jennifer Ells. 3.Pledge of Allegiance - Recited 4.Election of Officers for 2012 Peterson nominated Diehm for President, Williams for Vice President, Schmitt for Secretary/Treasurer. No further nominations were made. Upon vote: All ayes. CONSENT AGENDA 5.Approve Minutes from October 25, 2011. 6.Approve Financial Report and Payment of Bills for October, November, and December 2012 on Resolution 2012-01. Questions from members: Nawrocki questioned the December reports and noted that Revenues were down a little, Expenses were up a little, and wondered why there wasn’t an accounting of Interest on the Bank Account. Laura Frost said Revenues were less than anticipated because we have yet to receive a $29,971 grant payment from HUD. Once this amount is received, it would bring the total Revenues closer to the budgeted amount. She said we should receive the payment in the first quarter of 2012. As for expenses, Frost stated that some of the utility bills came in higher than projected and that legal fees were also higher during the year due to several tenant/policy issues. Schmitt noted that many appliances have been replaced. She asked what the average age was of the appliances. Laura Sheak said it varies, but the south building has had to have many of the appliance replaced since they were the original ones from 1990. The north building has been replacing appliances with the modernization of each floor, but the south building has not. HRA Minutes Page 2 7.Resolution 2012-02 Designating Signatories The attached Resolution 2012-02, designates Northeast Bank as the depository for all Columbia Heights HRA funds and authorizes signatories for accounts. Questions from members: Nawrocki questioned who the signers would be. He thought that each check should be signed by one person from CommonBond and the HRA Executive Director. Clark explained that two signatures are required, but that two signatures from personnel at CommonBond also suffice. He said it has always been this way and that is why we have a management company. Nawrocki thought it would be better checks and balances if a City Staff person signed each check. Clark said the City and HRA Board receive copies of each check and the financial reports each quarter which serves as the checks and balances. He also pointed out that any expenditure over $15,000 requires pre-approval from the Board as stipulated in the contract with CommonBond. Nawrocki again asked for information about the interest paid to the City on the funds at NE Bank. Frost will check with the bank and report back to Clark and Nawrocki on this. Motion by Williams, seconded by Schmitt, to waive the reading of Resolution 2012-01 & 2012-02, there being ample copies available. All ayes. MOTION PASSED. Motion by Williams, seconded by Schmitt, to approve the minutes of October 25, 2011; to adopt Resolution 2012-01, a 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 2012; and to Adopt Resolution 2012-02, a Resolution Designating Depository for the Columbia Heights Housing and Redevelopment Authority (HRA). Motion by Nawrocki, to remove the Resolution Designating Depository for the Columbia Heights HRA from the above motion. The motion died from lack of a second. Roll call vote on original motion: ayes-Williams, Schmitt, Peterson, Diehm Abstain-Nawrocki MOTION PASSED. HRA RESOLUTION 2012-01 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR OCTOBER, NOVEMBER, AND DECEMBER, 2011 AND PAYMENT OF BILLS FOR THE MONTHS OF OCTOBER, NOVEMBER, AND DECEMBER, 2011. 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 HRA Minutes Page 3 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, and December 2011 and the list of bills for the months October, November, and December, 2011 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. h Passed this 24 day of January, 2012. RESOLUTION NO. 2012-02 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 Commonbond Housing (herein referred to as “Management Company”), dated January 23, 2008, and amended on November 9, 2009 and extended on October 25, 2011 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. HRA Minutes Page 4 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 24th day of January, 2012 Offered by: Williams Seconded by: Schmitt Roll Call: Ayes-Williams, Schmitt, Peterson, Diehm Abstain-Nawrocki _________________________________ Chair _______________________________ Shelley Hanson- Secretary HRA Minutes Page 5 BUSINESS ITEMS 8.Report of the Management Company Laura Sheak asked if there were any questions on the newsletter items or on the monthly reports. Williams noted there weren’t any police calls in December, which was encouraging. Nawrocki said contracts were approved for ductwork and the modernization of the second floor at the last meeting. He wanted to know the status of these projects. Frost said the ductwork project is about th 1/3 done and will be finished in the spring, and the modernization project begins March 12. He wanted to know what the delay was. Frost said Project One had to wait for specs from the Architect to order the doors, which has now been done. Jenny said the delay was because each door had to be individually measured and ordered due to settling of the building. Clark told members that he has had discussions with Laura Sheak regarding the bay windows in the south buildings that have been leaking. They are in the process of going out for bids for an Engineers Report on the 36 large windows, to assess the damage and find out what corrections/repairs will be necessary. 9Resident Council Minutes . Lyn Miner reviewed the resident council minutes from the last meeting with the Board members. Copies of the previous meetings were enclosed in the agenda packets. Lyn reported that the 2012 officers are: President- Lyn Miner Vice President- Vivian Fagge Secretary- Jessie Chudek Treasurer- Ken Bloch Member at Large- Lee Ann Miller Sgt. At Arms- Matthew Kopacek Lyn stated that each resident is given a copy of the minutes to keep them informed. Diehm stated they appreciated receiving the minutes and being informed of resident activities. Clark also stated that staff appreciated working with Rheta Nelson during 2011 and looks forward to working with Lyn Miner in 2012. He feels communication has greatly improved over the last couple years. 10. Citizen Forum Barb Camp #608-asked for a status report on the sale of Parkview. She said residents are concerned. HRA Minutes Page 6 Clark said the matter is progressing well. He said the entire process will probably take another 12-15 months to complete. He said there will be another group meeting with residents in about 4-5 weeks. Aeon is currently working on obtaining grants and financing to complete the purchase, and will have more information by the end of February. The date of the meeting will be posted and each resident will be notified individually. Dianne #905-Asked how to identify people who are not supposed to be on our property. Sheak told her that any concerns about people in the building or on the grounds should be brought to management staff and they will deal with it. And no one should be letting people into the building. Anyone who belongs there will have access. If residents adhere to this policy, then they are safe. Jackie #707-Asked if the laundry room on second floor will be closed during the modernization project. Sheak told her yes, it would be, but residents will be notified ahead of time. Ken Myhre #511-If a friend comes in with him, is that ok? Sheak told him that, yes, that is ok, and that residents are allowed visitors. Barb Camp #608-Told members that she appreciates the wonderful management team that has been in place during the last 5 years. Residents think they do a great job. Nawrocki asked residents how the new smoking shelter is working out. Most of the residents thought it was a huge improvement and has been helpful in resolving most of the issues. However, Lyn Miner, said she still hears a lot of noise and conversation coming from the shelter. Ken Bloch said that all the units have some type of noise to deal with. On the other side of the building it is noise from the garbage trucks emptying the commercial dumpsters in the early morning. Shirley Bennitz #324 said she also hears the street/parking lots being swept during the middle of the night on her side. They both pointed out that noise cannot be eliminated completely since they live in an urban area. th Malcolm Watson-1717 49 Avenue- is interested in contacting James Lenhoff from Aeon regarding the appraisal that will be done on Parkview Villa. He asked Scott Clark for help in getting a hold of him as he would like to get the contract to do the appraisal of the buildings. 11. Confidentiality Agreement with Aeon Clark explained that in May of 2011 the Housing and Redevelopment Authority (HRA) entered into a memorandum of understanding with AEON to begin negotiations for the sale of Parkview North and South. As we progress, it has become clear that AEON will need access to HRA file information that is protected by the Minnesota Data Practices Act. The attached Confidentiality Agreement allows Aeon access to this information with the caveat that they must adhere to all applicable State and Federal laws, including holding the HRA harmless from any unlawful disclosure. This Agreement was written by the HRA Attorney and has been reviewed by AEON. Staff recommends approval this agreement. HRA Minutes Page 7 Question from members: Nawrocki asked what kind of information they are seeking that would require this agreement. Clark said an example would be the income levels of the residents that are needed for the grant applications. By entering into this agreement, they will have the right to see information but would have to adhere to the same Data Practices Rules that we do. They would be unable to share private information. They can take the data received and compile it in a generalized, group format but could not provide any specific information that would identify an individual. Resident Adam Alieu said he thought the information could be used to decide who Aeon keeps as residents versus those they want to get rid of. Diehm assured him that there are other separate agreements in place that protect residents from that happening. Motion by Peterson, seconded by Schmitt, to approve the Confidentiality Agreement with Aeon for purposes of implementing the goals of the Memorandum of Understanding. All ayes. MOTION PASSED. CONFIDENTIALITY AGREEMENT BETWEEN AEON AND THE CITY OF COLUMBIA HEIGHTS HOUSING AND REDEVLOPMENT AUTHORITY This CONFIDENTIALITY AGREEMENT is made by and between AEON and the CITY OF COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY (“HRA”) for purposes of implementing the goals of the Memorandum of Understanding executed between the parties on January 24, 2012. RECITALS WHEREAS, the HRA owns and oversees operations of Parkview Villa South and Parkview Villa North, th which are attached multi-unit residential housing facilities located at 965 40 Avenue NE in Columbia Heights, Minnesota (collectively “the Subject Properties”) ; and WHEREAS, the HRA has identified Aeon as a qualified party of interest for purchasing the Subject Properties subject to parties establishing a process for the sale consistent with the expressed goals of the HRA; and WHEREAS, the parties entered into the Memorandum of Understanding which outlines the goals and expectation of each of the parties during the process leading up to the execution of a purchase agreement for the sale of the Subject Properties by the HRA; and WHEREAS, Aeon has requested access to documents and data in the possession of the HRA for purposes of implementing the goals and objectives of the HRA as identified in the Memorandum of Understanding; and WHEREAS, some of the documents and data sought by Aeon for review are classified as not public under the Minnesota Data Practices Act, Minn. Stat. § 13.01 et seq.; and HRA Minutes Page 8 WHEREAS, access to the documents and data requested by Aeon is reasonably necessary for Aeon to fulfill its obligations under the Memorandum of Understanding; and WHEREAS, the Memorandum of Understanding may be modified by mutual agreement of the parties in writing; NOW THEREFORE, the parties hereby agree to the following: 1. The HRA will provide Aeon access to documents and data in the possession of the HRA that are reasonably necessary for purposes of Aeon implementing the goals and objectives of the HRA as identified in the Memorandum of Understanding. 2. Aeon agrees to comply with the Minnesota Government Data Practices Act and all other applicable state and federal laws relating to data privacy or confidentiality. All data created, collected, received stored, used, maintained or disseminated by Aeon in performing its obligations under the Memorandum of Understanding is subject to the requirements of the Act, and Aeon must comply with the requirements of the Act as if it was a government entity. Aeon also agrees to hold the HRA, HRA Board members and its employees harmless from any claims resulting from Aeon failure to disclose data maintained by Aeon and authorized for release by the HRA, and from Aeon’s unlawful disclosure or use of data protected under state and federal laws. Any information, data, reports, records, contracts, work products or other materials given to or prepared or assembled by Aeon under the Memorandum of Understanding shall be kept confidential and Aeon shall not make any of this material available to any individual or organization without prior approval of the HRA. At the termination of Memorandum of Understanding, all information, data, reports, records, contracts, work products or other materials relating to the Aeon’s assignment and duties under the Memorandum of Understanding shall remain the property of the HRA. AEON By:__________________________ Alan Arthur Its: President Dated:_______________________ CITY OF COLUMBIA HEIGHTS HOUSING AND REDEVELOPMENT AUTHORITY By:__________________________ Walt Fehst Its: Executive Director Dated:_______________________ HRA Minutes Page 9 12. Appraisal One of the many steps involved in the AEON negotiations is a need to commission an appraisal that will satisfy a number of parties including the Minnesota Housing Finance Agency, tax credit investors and/or lending institutions. Due to the nature of this transaction AEON views that it is best that an appraisal be conducted by the Housing and Redevelopment Authority as the commissioning agency since we are the seller. Although the HRA would order the appraisal AEON agrees that this would be done at their expense. Staff views that to order an appraisal on AEON’s behalf has no detrimental value to the HRA, and is beneficial to have a third party opinion regarding value. If the HRA is not satisfied with the appraisal and AEON is, the HRA can always elect at a future date to expend funds to conduct a new appraisal. Clark clarified that Aeon will select the appraiser based on companies they know to have the expertise in dealing with these types of buildings and who are familiar with tax credits, fund balances, and capital improvements. He said there are very few firms out there who can provide an accurate appraisal taking all these factors into consideration. He went on to explain this is not a binding appraisal for us or them. It is something they need in order to obtain their financing. Questions/Comments from members: Nawrocki said he knows appraisers can come up with a wide range of figures. What do we do if we disagree with the amount. Clark again stated this does not bind us to anything. It is an opportunity to get a first look at someone’s opinion about what the property might be worth. He said nothing stops the HRA from getting another appraisal at a later date if we don’t agree with the figure. Nawrocki thinks the City should be selecting the appraiser, not Aeon. Clark told them that Aeon will identify three appraisers who are qualified to do this type of appraisal and then will seek a RFP from them. Diehm agreed there is nothing stopping us from getting another appraiser to either review their findings or to do a whole separate appraisal if we choose to do so at a later time. Motion by Peterson, seconded by Schmitt, to authorize Aeon staff to select an appraiser, on behalf of the HRA for the purposes of an appraisal of Parkview Villa North and South with the understanding that AEON will be financially responsible for all costs associated with this action. Roll Call: All ayes. MOTION PASSED. 13. Other Business Move to Executive Session at 8:00 pm -To discuss the status of negotiations with AEON for sale of the th property at 965 40 Avenue NE. The Executive Session and Regular meeting were adjourned at 8:45 pm. The next regular HRA meeting is scheduled for Tuesday, April 24, 2012 at Parkview Villa. Respectfully Submitted, Shelley Hanson Recording Secretary