HomeMy WebLinkAboutHRA mtg Jan 22, 2013HOUSING & REDEVELOPMENT AUTHORITY
MINUTES OF THE MEETING
OF JANUARY 22, 2013
Call to order – The meeting was called to order by Chair Diehm at 7:00 pm. Gary Peterson and Bruce Nawrocki
took their Oath of Office.
Roll Call – Members present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Rheta Nelson, 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: Lisa Wilcox-Erhart, Laura Frost, Jennifer Eells, and Jennifer Vota.
Pledge of Allegiance – Recited
Election of Officers-
Motion by Peterson, seconded by Nawrocki to elect
officers as follows:
Chair- Diehm
Vice Chair- Schmitt
Secretary/Treasurer- Nawrocki
All ayes. Motion Passed.
CONSENT AGENDA
Approve Minutes from the meeting of October 23, 2012.
Approve Financial Report and Payment of Bills for October, November, and December 2012 on Resolution 2013-01.
HRA RESOLUTION 2013-01
RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING &
REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR OCTOBER, NOVEMBER AND DECEMBER 2012 AND PAYMENT OF BILLS FOR THE MONTHS OF OCTOBER, NOVEMBER, AND DECEMBER 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
HRA Minutes
Page 2
January 22, 2013
WHEREAS, the financial statement for the months of October, November and December 2012 and the list of bills for the months of October, November
and December 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.
Passed this 22nd day of January 2013.
MOTION BY: Peterson
SECONDED
BY: Schmitt
AYES: All ayes
__________________________________
Chair
Attest by:
________________________________________
Shelley Hanson, Secretary
Approving Depository and Signatories
Clark
explained this is an annual function decided at the first meeting of each year.
RESOLUTION NO. 2013-02
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 January 22, 2013, 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.
HRA Minutes
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January 22, 2013
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.
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 22nd day of January, 2013
Offered by: Peterson
Seconded by: Schmitt
Roll Call: All
ayes
_________________________________
Chair
_______________________________
Shelley Hanson- Secretary
HRA Minutes
Page 4
January 22, 2013
Questions from members:
Nawrocki asked if we are getting interest on our accounts at NE Bank. Frost said we do not get interest on the Checking
Account but we do on the Reserve Accounts. He stated that he still believes an officer should also be required to sign all checks. He doesn’t think that management personnel should
be the only signature on the checks. Clark stated that is the way it was established when the contract was drawn up. He reminded members that anything over $15,000 requires Walt’s
signature and that all expenditures are reviewed by the Board on a quarterly basis. Wilcox-Erhart stated this is common practice at the other entities they manage. This allows them
to conduct the day to day business and emergency expenses as they arise in a timely manner.
Motion by Peterson, seconded by Schmitt, to approve the consent agenda items as listed.
All ayes. MOTION PASSED.
BUSINESS ITEMS
Report of the Management Company
Lisa Wilcox-Erhart, Laura Frost and Jennifer Eells, from CommonBond, were present to answer any questions
from the members. Frost gave a brief report. She stated we don’t know exactly what the 2013 Capital Grant will be yet. It is usually awarded at the end of first quarter and should
be approximately $19,000. We also don’t know how much the operating grant will be for 2013. It could be as much as $30,000. Frost said the first floor modernization is moving forward.
They took the HRA Board’s and Aeon’s recommendations to the architect from WAI. They are preparing the specs and will go out for bids in February and hope to begin the renovations
in March.
Frost also told the members that they have been notified that the Fire Panel for the buildings is outdated. They are operational for now, but are obsolete so repairs can
no longer be made to the system. They are seeking bids for a new system. She said this was bid out a few years ago and the price at that time was around $80,000. Nawrocki asked what
function the Fire Panel served. She explained that all smoke detectors and alarms are tied into the panel and if there is a fire it would activate the sprinkler systems. He asked what
funds would be used to replace this system. She responded that it would probably have to come from several sources. If there are any funds leftover from the modernization project,
they could be used, or they would have to look at the operating grant, the capital grant, or possibly a reserve account. Schmitt asked why the system wasn’t replaced a few years ago
when bids were taken. Staff said that would have to be researched as to why the Board did not proceed with the project at that time.
Wilcox-Erhart gave a staffing update since Jennifer
Eells is leaving at the end of the week. She stated that they have held interviews for the position of the on-site Manager and they will be offering the position to someone. Until
she can start, Jennifer will be coming back one day a week, a roving Manager will be on site two days a week and Jennifer Vota will be present 5 days a week as before. Jennifer Eells
thanked the residents and HRA Board and city staff for all their cooperation during her time at Parkview Villa.
HRA Minutes
Page 5
January 22, 2013
9. Resident Council Minutes
Leeann Miller is the new President of the Resident Council. She was introduced to members. She stated the only
thing that has happened since she took office is some entertainment that took place this month for the residents. She said it wasn’t very well attended, but was enjoyed by those who
did.
10. Citizen Forum
No one wished to speak at this time.
11. Management Contract with CommonBond
Clark explained that the originally agreed to five year Management Agreement
with Common-Bond is expiring on January 31, 2013. As such, CommonBond is seeking a one year management “extension” with the understanding that the sale of Parkview Villa will probably
be occurring within this time line. As such, the attached resolution approves a new management period terminating on January 31, 2014 (with no increases) and that a 60 day termination
notice can be given by the HRA at any time based upon the sale process.
Staff recommends approval of Resolution 2013-03 as written.
Question from members:
The Board asked if this
had been reviewed and agreed to by CommonBond. Clark responded that it had.
Motion by Peterson, seconded by Schmitt, to waive the reading of Resolution 2013-03, there being ample copies
available to the public. All ayes. MOTION PASSED.
Motion by Peterson, seconded by Schmitt, to adopt Resolution 2013-03, being a Resolution of the Housing and Redevelopment Authority
in and for the City of Columbia Heights, approving an extension of the CommonBond Housing Management Contract until January 31, 2014 for Management of Parkview Villa North and South.
All ayes. MOTION PASSED.
HRA Minutes
Page 6
January 22, 2013
HRA RESOLUTION 2013-03
EXTENSION OF COMMONBOND HOUSING MANAGEMENT CONTRACT UNTIL JANUARY 31, 2014 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 April 22, 2008, and
WHEREAS, a new contract period is desired with the understanding that the sale of the subject
property is probable in 2013, and
WHEREAS, the HRA is satisfied by the performance and competence of CommonBond and desire to extend the subject term until the time of the sale;
NOW
THEREFORE BE IT RESOLVED,
The HRA approves a one-year management contract extension running from February 1, 2013 to January 31, 2014
Section 10.2 shall be amended to read, “This Agreement
shall be terminated upon the sale of the Premises or in the case of building demolition caused by natural or man-made causes. In the case of sale, the Owner retains the right to give
the Agent a 60 calendar day notice of termination at any point in the sales process.”
All other provisions of the contract dated April 22, 2008 Management Agreement between CommonBond
and the HRA remains in place.
Passed this 22nd day of January 2013.
MOTION BY: Peterson
SECONDED BY: Schmitt
_________________________
Chair
Attest by:
____________________________
Shel
ley Hanson, Recording Secretary
HRA Minutes
Page 7
January 22, 2013
12. Update from Aeon
James Lehnhoff, the Sr. Developer from Aeon and Miranda Walker, Project Manager were present at the meeting to update the
members on recent events.
Lehnhoff said that they were awarded the 1.5 million dollar funding from MHFA to help with the gap financing. MHFA is very supportive of this project.
Lehnhoff
also told members that they held two meetings last week with residents to update them on the progress of the sale and to go over the general information notice that they had to give
to residents again since the process to dissolve the PHA has changed. HUD required new signed slips since changing to a Voluntary Conversion Plan.
The Voluntary Conversion Plan must
prove to HUD through a cost analysis that it’s more advantageous to HUD to convert these buildings. The Plan must detail the future use of the buildings and that they will be kept as
affordable apartments. The Plan must provide an analysis of the market value, so the previous appraisal is being updated. This will also support the overall condition of the building
to show its marketability. The Plan must detail the benefits to PHA such as the plans to remodel/update the building which will provide better housing options to the residents and its
effect on the community as a whole. The Plan must also cover any relocation plans, however that is not applicable as Aeon has no plans to re-locate anyone. Once this Plan is submitted
to HUD, they must review it. Lehnhoff still anticipates a closing before the end of the year.
In the meantime, Aeon has hired architects and general contractors to coordinate future
plans and renovations. During the next 4-5 months they will be assessing the condition of the units and what improvements will be needed. Lehnhoff said they are also assessing the
support services that would benefit the residents.
Clark stated that Aeon has also applied for a grant of HOME Funds through Anoka County. We should know their final decision by April.
Nawrocki asked if any of the residents had any questions they haven’t had answered. No one present had any concerns. Lehnhoff also encouraged residents to ask any questions of him
or staff and he will do his best to answer them. He wants this to be an open process for all parties involved.
13. Call a Special Meeting for Monday, March 4, 2013
Clark explained
the only item on the agenda will be the Amendment to the PHA and the Resolution for the Voluntary Conversion and Assessment Plan. We need to hold the meeting so the process can move
along. We have to wait until the end of the comment period before holding a meeting, so this is the first available date to approve these items. The meeting is scheduled for 6:30 pm
before the Council Work Session.
HRA Minutes
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January 22, 2013
14. Other New Business
Nawrocki asked whether there was any back up material for the meeting that will be held Thursday, January 24, 2013. Clark
responded that this is not an HRA matter. He wanted to assure the residents present that the January 24th meeting has nothing to do with them or the sale. He then explained to Mr. Nawrocki
that there is no backup material to give to members at this time. He told members that a small group of people will be making a presentation to discuss a conceptual idea, and how it
could work, if the Council is interested in pursuing the idea further. No action will be taken at this meeting, they will just be asked to listen to see if this is a direction they may
wish to consider further. Nawrocki asked who would be making this presentation. Clark told him Frank Dunbar from Dunbar Development—James Winkle from Amcon Construction—Stacie Kvilvang
from Ehlers—and possibly an architect.
Diehm stated the next regular meeting is scheduled for Tuesday, April 23rd, 2013.
The meeting was adjourned at 7:50 pm.
Respectfully submitted,
Shell
ey Hanson
Recording Secretary