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HomeMy WebLinkAboutHRA mtg Jan 28, 2014HOUSING & REDEVELOPMENT AUTHORITY MINUTES OF THE MEETING OF JANUARY 28, 2014 Call to order – The meeting was called to order by Chair Diehm at 7:00 pm. Roll Call – Members present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Bobby Williams, Rheta Nelson, and Tammera Diehm. Staff Present: Community Development Director-Scott Clark, Assistant Community Development Director-Joseph Hogeboom, Secretary-Shelley Hanson, and Elizabeth Holmbeck, Intern. CommonBond Staff- Lisa Wilcox, Laura Frost and Heidi Mindestrom Pledge of Allegiance – Recited Election of Officers: Motion by Peterson, seconded by Schmitt, to elect officers as follows: Chair- Diehm Vice Chair- Williams Secretary/Treasurer- Schmitt All ayes. Motion Passed. CONSENT AGENDA Approve Minutes of October 22, 2013 and January 13, 2014. Resolution 2014-02: Designating Signatories Resolution 2014-02, designates Northeast Bank as the depository for all Columbia Heights HRA funds and authorizes signatories for accounts. This is an annual function approved at the first meeting of the year. Resolution 2014-03: Approve Financial Reports and Payment of Bills for October, November, and December 2014. Questions from members: Nawrocki expressed his opinion that he thinks a staff member such as the City Manager should be added as a required signature to process every check. Clark said he has discussed this with the Finance Director and the present process meets the requirements for both legal purposes and for the Auditors. Motion by Nawrocki, that the City Manager be added as a required signature. The motion died for lack of a second. HRA Minutes Page 2 January 28, 2014 Nawrocki then asked about the Financial reports to verify the reserve amounts for the north and south buildings. Motion by Williams, seconded by Peterson, to approve items on the Consent Agenda as presented. All ayes. MOTION PASSED. RESOLUTION NO. 2014-02 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. 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 HRA Minutes Page 3 January 28, 2014 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 28th day of January, 2014 Offered by: Williams Seconded by: Peterson Roll Call: All ayes _____________________________ ____ Chair _______________________________ Shelley Hanson- Secretary HRA RESOLUTION 2014-03 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) APPROVING THE FINANCIAL STATEMENT FOR OCTOBER, NOVEMBER AND DECEMBER 2013 AND PAYMENT OF BILLS FOR THE MONTHS OF OCTOBER, NOVEMBER, AND DECEMBER 2013. 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 4 January 28, 2014 WHEREAS, the financial statement for the months of October, November and December 2013 and the list of bills for the months of October, November and December 2013 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 28th day of January 2014. MOTION BY: Williams SECONDED BY: Peterson AYES: All ayes __________________________________ Chair Attest by: ________________________________________ Shelley Hanson, Secretary BUSINESS ITEM 8. Report of Management Company Frost told members that she had submitted the 2014 Operating Grant Application. She said Parkview Villa should qualify for approximately $107,000 for upgrades/maintenance projects for the north building. Nawrocki asked how this amount compares to previous years. She said it is a little less than before. Frost also stated that she had applied for the Xcel Energy Rebate of $500 for the new boiler that had been installed. Frost then explained that in response to questions raised at the last meeting regarding occupancy stats for the south building, they compiled an occupancy report detailing the figures on a month by month basis and a marketing plan for the south building. She told members that the north side has a long waiting list and the south building is about 80% HRA Minutes Page 5 January 28, 2014 occupied. Frost said that they processed 19 applications during 2013 and that 10 were approved. She reviewed the marketing plan which will now include posting vacancies on apartment.com and on ApartmentHomeLiving.com. Part of the plan included lowering the minimum qualification of monthly income from 2 times the rent to 1.5 times. Wilcox suggested we try this on a trial basis to see if it works out satisfactorily. Schmitt suggested instead of putting notices in church bulletins, which charge fees, that they hold an open house at Parkview Villa and invite the senior groups from the various churches to attend. In addition, they could go to the churches and give a brief presentation regarding the building to gain further interest. Nelsen asked if management could look into arranging for a grocery bus. Cub used to provide one, but discontinued doing this a while back, and with Rainbow Foods closed, it is harder for residents to get groceries. Nawrocki asked if the complaint about odors had been resolved. Frost said that management cannot go into details about it, but that steps were taken to mitigate it and it is under control. Nawrocki also asked if the voice mail message had been changed to update callers on the actual status of vacancies. Frost said it had been updated. Resident Council Minutes Shirley Benitez reviewed the minutes of the Resident Council for the Board. Diehm thanked the Resident Council for supplying this information to the Board to keep them abreast of what is happening in the building. Citizens Forum Ken Block-unit 315-asked what the requirements are to move in to the south building. Mindestrom told him a person must be 55 or older, currently they must have 2 times the rent in monthly income to qualify, and that their rental history (criminal and credit) is checked. Clark also reminded the group that if a person makes over a certain dollar amount established for tax credit purposes, they must sign a waiver that they will have to move if the sale to Aeon goes through. They can move in for now, but must be aware that they may have to move shortly. This is also a contributing factor to people backing out of renting the apartments if they are approved. Ms. Lindstrom-unit 123-asked if residents can park in the parking ramp across the street, and if there is a cost. Nelsen told her they can park on one end of the ramp, but no overnight parking is allowed. HRA Minutes Page 6 January 28, 2014 Diane Powell-unit 905-thanked city staff for finally clearing the sidewalk along 40th Avenue. She said it has been compacted with snow and ice most of the winter. Every time the city clears the streets of excess snow, it is pushed onto the narrow sidewalks and then not cleared from there. Powell also complained about two low spots between the driveway and the alley on 40th Avenue. Another resident from unit 214 said the path from the parking lot to the park is not cleared either. She questioned who is responsible for clearing that path that connects the two. Diehm asked staff to have Kevin Hansen look at the drainage issues and report back on these matters. Resolution 2014-04: Approval of Management Contract with CommonBond Housing Management Clark stated that the City’s Housing and Redevelopment Authority (HRA) has held CommonBond Housing under contract for management of Parkview Villa North and South since 2008. Since the Memorandum of Understanding was signed in May of 2011 with Aeon for the sale of the subject property CommonBond has been on a year to year contract. The contract under review would run from February 1, 2014 until January 31, 2015. There is a 60 day out period when the sale to Aeon occurs. As part of this review, CommonBond is seeking a 2% increase for a total contract amount of $239,700. Historically, they had a 5% increase in 2012; including the proposed increase, the contract will average out as a 1% increase over the subject 7 years (2008-2014). Staff views that this is a modest increase and coupled with satisfaction with performance staff is recommending the increase as proposed. A history of the contract amounts follow: 2008 2009 2010 2011 2012 2013 2014  Monthly Compensation $18,650 $18,650 $18,650 $18,650 $19,583 $19,583 $19,975  Monthly Management Fee $6,570 $6,570 $6,570 $6,570 $6,900 $6,900 $7,038  Monthly Payroll Expenses $12,080 $12,080 $12,080 $12,080 $12,683 $12,683 $12,937           Annua l Compensation $223,800 $223,800 $223,800 $223,800 $234,996 $234,996 $239,700  % Increase 0 0 0 0 5% 0 2%  Other Terms No increases for first 5 years     60-day notice based on Aeon sale 60-day notice based on Aeon sale   Staff recommends an extension of the contract and resolution as written, which includes the 2% increase. HRA Minutes Page 7 January 28, 2014 Questions from members: Nawrocki asked how the discussion with HUD is going regarding the sale to Aeon. Clark stated that there are currently two applications into HUD for consideration and that two meetings were held in December with the residents to keep them apprised of the process. He said he thinks the best opportunity for approval is going to be the Voluntary Conversion Application. In the last two weeks there have been discussions with HUD and he feels a bit of optimism that they will consider the application. Amendments are being made to the original application for minor technicalities, and that it should be re-submitted by the end of the week. Clark stated that he believes we should know within three weeks if this process will move forward or if it will become too difficult to accomplish. Diehm expressed her support of renewing the contract with CommonBond and the 2% increase. She believes they have done an excellent job managing the site on behalf of the city. Motion by Peterson, seconded by Williams, to waive the reading of Resolution 2014-04 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson, seconded by Williams, to Adopt Resolution 2014-04 Extension of CommonBond Housing Management Contract until January 31, 2015 For Management of Parkview Villa North and South. All ayes. MOTION PASSED. HRA RESOLUTION 2014-04 EXTENSION OF COMMONBOND HOUSING MANAGEMENT CONTRACT UNTIL JANUARY 31, 2015 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 2014, and HRA Minutes Page 8 January 28, 2014 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, 2014 to January 31, 2015 Section 9.1 shall be amended to read in part, “… The compensation which the Agent shall be entitled to receive for all services performed under this Agreement shall be a flat fee of $19,975 per month; which consists of $7,038 per month as a management fee and $12,937 per month for payroll related expenses….” 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 28th of January 2014. MOTION BY: Peterson SECONDED BY: Williams All ayes _________________________ Chair Attest by: ____________________________ Shelley Hanson, Recording Secretary Security Issues Discussion Clark stated that at the October 2013 HRA meeting there was an extensive discussion about security issues at Parkview Villa. After that meeting the Community Development staff met with the Police Department and CommonBond Management, and from that meeting, a listening session was held with the residents on October 18, 2013. At the last mentioned meeting, a detailed discussion was held about issues that should be brought to the attention of management immediately and those that should be handled by the Police. It was obviously emphasized that at any time a resident feels threatened in a situation that a 911 call should be made. After reviewing the past history of calls at Parkview, and verbal information, staff is recommending that formal security is not warranted. However, staff is of the opinion that a productive alternative is to form a Neighborhood Watch Group. The Police Department is ready to meet and immediately start the program. HRA Minutes Page 9 January 28, 2014 Questions/comments from members: Diehm asked if this recommendation is a result of the discussion that took place with the residents in October. Clark said it was. Schmitt asked if Police are doing random walk-throughs, or if not, could it be arranged. Nawrocki asked if seniors are capable of being good members of a Watch Group. Benitez said she feels the Police minimize the threats here and they don’t get good service because they are not taken seriously. She feels the Police brush them off. She also stated that residents are too afraid to call Police for a variety of reasons. Bruce Smith-unit 301- asked why Clark refused to install more cameras, and wondered if they were even operational. Police and management have reviewed the cameras in place and feel there are enough. Camera footage can be reviewed by Police, but not the residents. Wilcox said a watch group is a good idea and that it empowers residents to feel safer and that management would be happy to help the Police implement such a program. A resident from unit 123 asked if just a random few would be selected to be in the group or if someone from each floor would be participating. Diehm told them it could be set up anyway they wanted. Management stated they liked the idea of a person on each floor so residents had someone close to go to and then that floor captain could then report to management. It would help management stay abreast of problems that may be occurring throughout the building. Management again encouraged residents to report complaints to the office so that they can be investigated and records can be kept for appropriate action. Wilcox explained that residents often don’t know when action has been taken since they have to operate under certain privacy constraints, but she assured residents that all issues are taken seriously and acted on when warranted. Ken Bloch thought the Police did a good job during their presentation and discussion with the residents. Hugh Farmer asked if the reason they are not hiring security guards is a financial decision. Clark said that based on the discussion, staff did not feel the majority of the issues would be resolved by hiring security guards. Nawrocki stated that Terry Nightingale is the best officer possible for the residents to work with. He has confidence that he would take all complaints seriously and respond accordingly, but the rest is up to the residents themselves to take advantage of the help that is there for them. Schmitt suggested that maybe the Police hold one of their “Have coffee with a cop” sessions at Parkview Villa. Diehm asked that staff communicate with the Police to coordinate another meeting on site and to invite an officer to the next HRA meeting. HRA Minutes Page 10 January 28, 2014 PUBLIC HEARING: Resolution 2014-05: Columbia Heights Housing and Redevelopment Authority Confirming Approval of the 2014 PHA Certification of Compliance Based on recent HUD rules the HRA only has to approve a Public Housing Agency Plan every five years (this includes both narrative goals and a five year capital improvement plan). However, every year a resolution certifying compliance with the document must occur. The PHA Plan that was formerly amended at the last meeting, is attached. In addition, the Plan was formally advertised and held for public review (with no comments) for the statutory period of time. For the HRA’s information, it is likely that the 2014 stated capital improvements will come back to the Board for amendments, depending on the schedule of the sale to Aeon. Staff recommends adopting the Resolution provided. Question/comments from members: There were no further comments on this matter. Motion by Peterson, seconded by Williams, to waive the reading of Resolution 2014-05 there being ample copies available to the public. All ayes. MOTION PASSED. Motion by Peterson, seconded by Williams, to adopt Resolution 2014-05 Resolution of the Columbia Heights Housing and Redevelopment Authority (HRA) Confirming Approval of the 2014 Public Housing Agency Certifications of Compliance with the PHA Plans and Related Regulations. All ayes. MOTION PASSED. HRA RESOLUTION 2014-05 RESOLUTION OF THE COLUMBIA HEIGHTS HOUSING & REDEVELOPMENT AUTHORITY (HRA) CONFIRMING APPROVAL OF THE 2014 PUBLIC 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 2014 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; HRA Minutes Page 11 January 28, 2014 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 28th day of January, 2014 MOTION BY: Peterson SECONDED BY: Williams AYES: All ayes HOUSING AND REDEVELOPMENT AUTHORITY Chair – Tammera Diehm Executive Director – Walter R. Fehst Administrative Update Clark already gave the update on the sale of the building earlier in the meeting. He told residents and members that the modernization projects will begin the middle to end of February. These will include the work previously discussed at earlier meetings such as carpeting, elevator upgrades, fire alarm, doors, and painting. Diehm stated the next regular meeting is scheduled for Tuesday, April 22, 2014, at Parkview Villa. The meeting was adjourned at 8:10 pm. Respectfully submitted, Shelley Hanson Secretary