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HomeMy WebLinkAbout07-30-12 HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE MEETING OF JULY 30, 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, Donna Schmitt, Gary Peterson, Bobby Williams, Rheta Nelson, and Tammera Diehm. 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 Frost and Jennifer Eells. 3.Pledge of Allegiance - Recited 4.Swear in Commissioner Rheta Nelson After Rheta took the oath of office the other members welcomed her to the Board. CONSENT AGENDA 5.Approve Minutes from January 24, 2012, the special meeting of March 5, 2012, the Executive Session of March 5, 2012, the meeting of April 24, 2012 and the special meeting of June 4, 2012. 6.Approve Financial Report and Payment of Bills for January, February, and March 2012 on Resolution 2012-04 and payment of bills for April, May, and June 2012 on Resolution 2012-05. Questions from members: No questions. It was noted that some of the pages were missing from the minutes of January 24, 2012. However, these minutes were previously provided and reviewed by members, but could not be approved due to a lack of quorum. Motion by Nawrocki, seconded by Williams, to approve the minutes and Financial Reports as listed on the Consent Agenda. All ayes. MOTION PASSED. HRA RESOLUTION 2012-04 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR JANUARY, FEBRUARY, AND MARCH 2012 AND PAYMENT OF BILLS FOR THE MONTHS OF JANUARY, FEBRUARY AND MARCH, 2012. 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 2 July 30, 2012 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 January, February and March 2012 and the list of bills for the months January, February and March 2012 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. th Passed this 30 day of July. MOTION BY: Nawrocki SECONDED BY: Williams AYES: All ayes __________________________________ Chair Attest by: ________________________________________ Shelley Hanson, Secretary HRA RESOLUTION 2012-05 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR APRIL, MAY, AND JUNE 2012 AND PAYMENT OF BILLS FOR THE MONTHS OF APRIL, MAY AND JUNE, 2012. 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 April, May and June 2012 and the list of bills for the months April, May and June 2012 are attached hereto and made a part of this resolution; and HRA Minutes Page 3 July 30, 2012 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. th Passed this 30 day of July. MOTION BY: Nawrocki SECONDED BY: Williams AYES: All ayes __________________________________ Chair Attest by: ________________________________________ Shelley Hanson, Secretary BUSINESS ITEMS 7.Report of the Management Company Jennifer Eells, Property Manager, was present to answer any questions from the members. She th reported that the ductwork on the north building was completed today (July 30) and that nd Zephyr can now finish wrapping it. She also told members that the modernization of the 2 floor is progressing on schedule. Eells stated that the “Move-In Special” sign and advertising has been working. Four units have been rented, with five units remaining. She said there has been a significant increase in the number of calls and showings. She asked members if they would be willing to extend the special for a couple more months. She suggested extending it to the end of November, unless the units are all filled prior to that date. Schmitt thought if it were extended too long, that the sign would no longer be as effective. Peterson was supportive of the extension as it seems to be working. Motion by Peterson, seconded by Schmitt to extend the “Move-In Special” till the end of November. All ayes. MOTION PASSED. HRA Minutes Page 4 July 30, 2012 8Resident Council Minutes . Lyn Miner stated the resident council minutes from the last few meetings were enclosed in the agenda packets. She had nothing further to add. 9. Citizen Forum No one wished to speak at this time. 10. Encompass Results On April 24, 2012 Encompass was awarded a bid to analyze water damage in and around windows in the south building. They found, after a variety of testing methods, that the damage is occurring through water infiltration due to the structural breakdown of the window units and not migrating from other sources. Based on the report, and discussions with Encompass, their recommendation is for replacement of all windows, or as a secondary solution, replacement of the bay windows and repair of the smaller windows. The range of repair/replacement is estimated from $200,000 to $325,000, depending upon which permutation is selected. Staff views that the policy question for the HRA is not whether the repair/replacement should happen (as this seems like a near future required action) but whether this action should wait until 2013 and allow AEON to fix the problem as part of their overall rehabilitation efforts. AEON has discussed this with staff and would prefer that the HRA wait and allow them to perform the work as part of a larger package. If the HRA proceeded with this action this would use 50% of the fund balance, which is part of the discernible equity that will come from the sale. Staff views that due to the pending sale proceedings that this item should not be bid at this time, and if for some reason the sale transaction is not completed, the work would not be done until 2013. Questions/Comments from members: Schmitt asked if the mold and water damage was so severe that this work should be done now. Clark said the windows were replaced in 1990-91, and some have had leaking issues for the past 4 years. He didn’t think the majority needed to be replaced immediately, and since Aeon is currently working on their rehab specifications, they would prefer to include this in their list of items to be upgraded. Clark said Aeon would be upgrading to a more energy efficient window so the style may change slightly. He also said the unit with the most water damage has already had the window replaced and repairs made. Other repairs can be done on a case by case basis if there are significant problems prior to Aeon doing an overall replacement. HRA Minutes Page 5 July 30, 2012 Schmitt asked if lack of caulking was causing the problem. Clark said the integrity of the window itself failed, as well as the structural breakdown of the caulk materials. Nawrocki asked about the term “discernible equity” as mentioned in the staff report. Clark said that if the Board decides to replace the windows now, it will come out of the south building’s reserve fund and would affect the net amount the City receives in the sales transaction since this fund would be spent down. And Aeon could still replace the windows again in 6 months with ones they choose as part of their rehab project. Peterson agreed with staff to let Aeon take care of the window replacement. Diehm asked if Aeon was aware of the report. Clark stated they are aware of the situation and a copy of the report will be given to them. Motion by Peterson, seconded by Schmitt, to follow staff recommendation and let Aeon handle the replacement of the windows in the south building as part of their rehab project. All ayes. MOTION PASSED. 11. Discuss PHA Amendment for Modernization Cartney reminded members that at the June 4, 2012 HRA meeting the Commission discussed using FY 2011 and 2012 HUD Modernization funds prior to the sale of Parkview Villa, the anticipated combined total is $163,000. The goal is to use these funds by November 30, 2012 on projects that are easily biddable, part of Aeon’s rehab plan and if the sale does not commence will be beneficial to the long term viability of Parkview Villa. The process to spend these funds includes a public hearing and a 45-day notice period. Due to deadline restraints with the SunFocus Newspaper Staff was unable to notice the public hearing in time for this meeting and the HRA will have to hold the official public hearing at a special meeting on Monday th August 6 at 7pm in Conference Room 1, in City Hall. However, we will discuss the modernization at this meeting and take public comment from residents so they do not have to attend the public hearing thth on August 6. The official notices indicate the public hearing is on August 6, the Amendment is available at the Library and City Hall. Items listed in the PHA Amendment include: 1.Completion of the modernization work for 6 units on the main floor (part of the original plan) $41,000 2.Change all toilets from 5.5 GPM to 1.6 GPM -Estimate $69,000 3.GFI outlet installation in bathrooms and kitchens – Estimate $20,000 4.Replace lighting in common areas – Estimate $20,000 5.Installation of smoke detectors in bedrooms - Estimate up to $10,000 6.Install 1.5 GPM low flow massage shower heads – Estimate $5,000 HRA Minutes Page 6 July 30, 2012 Section 9.2 of the Management Contract with Commonbond states “In the event that the Owner requests the Agent to perform rehabilitation/construction on the Premises, Owner and Agent shall negotiate and execute a contract related to such rehabilitation/construction work.” Commonbond has agreed to provide construction management for the above mentioned project for a fee not to exceed $4,500, which is 2.8% of the project cost. It is anticipated the payment will come from the modernization funds. However, if that is not an approve expense the payment will come from th Parkview Villa North’s Budget. A formal resolution will be presented at the August 6 meeting along with the PHA Amendment. th Staff recommends taking public comments for the public hearing that will take place on August 6 and schedule the public hearing. Comments for Public Hearing: Len Larson, unit #216, moved into the building about 3 months ago. He wanted to know if renters would face any additional costs if these improvements are done. Diehm explained to him that these improvements would be paid for with Federal funds and would not result in any rent increases to the tenants. She told residents that the HRA is restricted on how the funds can be used, and these improvements are an approved use. He then asked what the reasons were for selling the building. Clark explained that the City/HRA isn’t equipped to own and manage a public housing building. It has become more complex through the years due to the rules and regulations established by HUD. Shirley Benitez, unit #324, asked if these improvements are for the north building only. She was told, yes. Dennis Novak, unit #414, in the south building, told members that his bay window is completely fogged over and he cannot see through it. He wanted to know if something could be done before 2013. Clark said he would check on the condition of the window. It is possible to replace the thermo pane glass as a temporary fit until Aeon replaces the entire window unit. Lyn Miner, unit #202, asked if federal money can be spent on modifying the smoking shelter so smoke doesn’t infiltrate her unit. Diehm told her that the funds cannot be spent on that. Cecelia Rothbauer, unit #418, said her toilet has been cracked for some time. Jenny said a work order would be written up. She didn’t notice it when they did a recent inspection of the unit. th Diehm told residents that additional comments would also be taken at the meeting of August 6. Motion by Peterson, seconded by Williams, to continue the public hearing date to Monday August 6, 2012 at 7pm in Conference Room 1 at City Hall. All ayes. MOTION PASSED. HRA Minutes Page 7 July 30, 2012 12. Other Business Special Meeting-there is a need to schedule a Special meeting to continue the Public Hearing to consider the PHA Amendment for Modernization Funds, as previously discussed. th Motion by Williams, seconded by Schmitt to schedule a Special HRA Meeting for August 6 at 7 p.m. in Conference Room 1. All ayes. MOTION PASSED. Aeon update-Clark said the process is moving forward and the application to dissolve the contract with HUD was submitted two weeks ago. He told members that Aeon has applied for the PARIF Funds through MHFA. We have a draft purchase agreement that has been submitted and will be reviewed later in the Executive session. He said Aeon is working on the other financial aspects such as obtaining bonding in order to complete the purchase. He projects a closing date sometime in the first quarter of 2013. He said if the PHA amendment is th approved at the August 6 meeting, that the modernization work will be completed before closing. Dennis Novak asked if there were any guarantees to residents that rents will not be increased significantly by the new owners, or that the buildings will not be greatly altered in some way. Diehm explained that the HRA established goals before a decision was made to work with any potential buyers. A Memo of Understanding detailing these goals was entered into with Aeon which states that rents would not be significantly altered and that the building would continue to be maintained and updated in order to protect the residents of the two buildings. She said that their tax credits and financing agreements also guarantee this as a requirement to being approved. Clark stated that Aeon will probably hold another meeting for residents around the end of August to answer further questions as the process moves forward. Novak stated that uncertainty and fear are the primary reasons so many residents vacated the south building. Shirley Benitez said she has researched Aeon’s other buildings and they have not increased rents for residents when they take over. Nawrocki and Diehm encouraged residents to contact them or the new resident council member so she can relay questions and concerns to staff. Lyn Miner stated she asked James Lehnhoff, from Aeon why Aeon wanted to purchase Parkview and she was very satisfied with the answer she got. HRA Minutes Page 8 July 30, 2012 Debra Henbroff, unit #211, asked if residents would have to re-apply for subsidized housing vouchers due to the new financing. Clark told her, probably, but the criteria would be the same, and it would just be a formality. Motion by Nawrocki, seconded by Williams to adjourn the meeting to an executive session at 8:00 pm to discuss Purchase Agreement. All ayes. th It was noted the next meeting will be August 6 to serve as the Public Hearing for the PHA Amendment, and the next regular meeting will be held Tuesday, October 23, 2012 at Parkview Villa. The meeting re-convened and adjourned at 8:45 pm. Respectfully Submitted, Shelley Hanson Recording Secretary