MINUTES OF A REGULAR MEETING

OF THE  

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

February 27, 2006                                                                                           Babcock Place

5:30 p.m.                                                                                                          Meal Site        

1.         Call of Roll.

            The meeting was called to order at 5:30 p. m. by Chair, Mark Gonzales.  The following Commissioners were present.

               Wes Smith

               Brenda O’Keefe

               Mark Gonzales  

Also present were Dennis Garrison, Brookcreek Learning Center Board President, Esther Kottwitz, Brookcreek Learning Center Executive Director, Charlotte Knoche, Kris Hermanson, Barbara Huppee and Vickie Butler, LDCHA staff members. 

2.         Approve Minutes of January 23, 2006 Board of Commissioners Meeting.

            Commissioner O’Keefe moved to accept the January Board meeting minutes as presented.  Commissioner Smith seconded the motion.  The motion carried.

3.          Receive Comments from Tenants and Public.

            There were no comments. 

4          Distribute January Accounting Summaries.

            Commissioners Johnson and Amison joined the meeting.

            A.        Receive Public Housing 2005 Year-end Financial Reports.

            The year-end financial report presents the total obligations, expenditures and non-cash adjustments to the general ledger for the entire year. The year-end report for public housing showed $1,043,293 in rental income.  Other income including interest earned on investments, tenant work order damages, laundry/payphone income, bus donations and salary allocation reimbursements made under the Capital Fund and Ross Grants, showed the year ended at $160,905.  Operating subsidy was funded at 88.8% eligibility or $469,564.  Overall the year ended with $1,673,762 in total operating receipts.  This was $10,828 more than the projected amount of $1,662,934.  On the expense side the year ended with $581,555 in total administrative expenses.  Total operating expenses ended the year at $1,629,830 or $47,241 more than the projected amount of $1,582,590.  This included December accruals and adjustments to the general ledger.  Overall the agency ended the year with $53,106 in income over expenses after deducting the general ledger adjustments.  Expenses related to capital depreciation, the agency’s buildings and equipment, were $446,770.    

            Commissioner Smith moved to approve the public housing year-end financial reports as presented.  Commissioner Amison seconded the motion.  The motion carried.

B.         Receive Section 8 2005 Year-end Financial Reports.

The Section 8 year-end financial report is similar to the public housing report in that it contains all accruals, general ledger reconciliations and reimbursements of administrative expenses from the State and City HOME programs.  The report showed that the program earned a total of $428,575 in administrative fees.  This was an aggregate total of 7,174 units under lease on the first day of the month for January through December.  Fees earned under the FSS and Homeownership Coordinator positions were $68,258.  Interests earned on operating reserve investments year-to-date were $97,614.  The program earned a total of $594,463.89 in total operating receipts.  Expenses under the Section 8 program are for those related directly to administrative expenses for operational costs to run the Section 8 program.  These are run through the Public Housing program and reimbursed by the Section 8 program at the end of every month.  As of December, a total of $493,453.30 was spent in administrative expenses.  A total of $2,558,761 was paid out in Housing Assistance Payments (HAP).  Overall the agency ended the year with $124,314 after deducting the general ledger adjustments.

            Commissioner Amison moved to approve the Section 8 2006 year-end financial reposts.  Commissioner Smith seconded the motion.  The motion carried.

C. Receive Combined Cash & Investment Report as of 12/31/05 .

A report was presented to the Commissioners that showed the agency’s total cash and investments as of 12/31/05.  It showed $4,106,724 under the Section 8 programs, $1,886,736 under the Public Housing program, and $167,720 under the HOME programs.  The combined cash and investments for all programs as of 12/31/05 was $6,161,180, $605,451 more than the amount reported in 2004. 

            Commissioner Smith moved to approve the combined cash and investment report as presented.  Commissioner O”Keefe seconded the motion.  The motion carried. 

5.         CONSENT AGENDA

A.        Resolution 917:  Amend Chapters 9 and 5 of the Administrative Plan for the Tenant Based Rental Program Governing Owner Participation and Eligibility for Admission. 

            B.         Receive Update Report on the Peterson Acres Expansion Project.

            C.        Receive Report on Maintenance Facility Expansion Project.                                          D.        Receive 6^th Year Outcomes MTW Report.

            E.         Resolution 918:  Revise Maintenance Schedule of Charges.

            F.         Resolution 921:  Amend Public Housing One Strike Policy.

            Commissioner Amison moved to approve the Consent Agenda.  Commissioner Smith seconded the motion.  The motion passed unanimously.

6.         REGULAR AGENDA

            A.        Resolution 919:  Approve 2005 Public Housing Assessment Submission (PHAS).

            Ms. Huppee presented the Management Assessment component of the Public Housing Assessment Program (PHAS) to the Board.  The other three components are the Physical Inspection (PASS), Resident Satisfaction (RASS) and Financial Assessment (FASS). The PASS and RASS are not conducted by the LDCHA and the FASS is prepared by the agency’s fee accountant.  The MASS, PASS and FASS are each worth 30 points and the RASS is worth 10.  The scores for the four will be totaled and a final aggregate score given.  Last year, 2004, the LDCHA received a score of 96.   The MASS assesses housing authorities against six elements; Turnaround Time, Capital Fund Expenditure Rates, Work Orders, Physical Inspections, Security and Economic Self-sufficiency.  Based upon the agency’s 2005 performance data the LDCHA should get a perfect score of 30 on the Management component. 

            The Board reviewed the MASS.  Commissioner Smith moved to approve the Certification and Submission of the Management Assessment Sub-system of the Public Housing Assessment system for 2005.  Commissioner Amison seconded the motion.  The motion carried.

            B.         Resolution 920:  Approve 2005 Section 8 Management Assessment Submission 

(SEMAP).

            The Section 8 Management Assessment Program, SEMAP, must submit a certification on 14 performance indicators 60 days after the end of the fiscal year.  The LDCHA is exempt from scoring on four of the indicators under MTW and three indicators the agency has been unable to submit due to MTW data deviation from data produced under federal regulations.  MTW agencies must submit SEMAP certifications but will not be rated.  The operations of the Section 8 program report that the agency would get the full points in all 14 performance indicators if HUD were able to score MTW data.  The 14 indicators are Selection from the Waiting List, Reasonable Rent, Determination of Adjusted Income, Utility Allowance Schedule, HQS Quality Control Inspections, HQS Enforcement, Expanding Housing Opportunities, FMR Limit and Payment Standards, Annual Reexaminations, Correct Tenant Rent Calculations, Precontract HQS Inspections, Lease-up and Family Self-Sufficiency. The program data to be submitted indicates that the agency would receive a 100% SEMAP score.

            Commissioner Johnson moved to approve the 2005 Section 8 SEMAP submission.  Commissioner O’Keefe seconded the motion.  The motion carried.     

C. Continue Discussion of the Brookcreek Learning Center’s Compliance with

Enrollment Requirements under the Lease.

            The Board has been informed of Brookcreek’s non-compliance with its contract requirement of 22 public housing students enrolled at Brookcreek and had asked Ms. Kottwitz, Brookcreek Executive Director, to report on efforts to come into compliance. Ms. Kottwitz reported that a flyer had been mailed to all eligible public housing households and only five responses were received, and none of the five were completed.  Dennis Garrison, Brookcreek Board President, expressed concern over the number 22, whether it was 15% or 85% of eligible students.  He stated he was not aware of how many families are actually eligible for Brookcreek enrollment.   Ms. Huppee stated that in October it was reported that there were 127 children living in public housing between the ages of 0 and 5.  The Resident Services department believes that with recruitment and some tuition incentives, Brookcreek should be able to continuously enroll 22 public housing children across its three sites. During discussion, Commissioner Amison stated that with a marketing campaign and a concerted effort put forth, there should be no problem getting 22 students. Chairman Gonzales agreed and stated also that public housing residents could be served and the agency still collect rent from Brookcreek.  Commissioner Smith suggested pro-rating day-care center rent on a sliding scale depending on number of children enrolled or going back to one unit with 11 children.  Commissioner Amison agreed and also suggested decreasing day-care fees for public housing students. Chairman Gonzales raised the question of a contract termination date if Brookcreek could not come into compliance. Ms. Kottwitz stated that her Board would meet again February 14^th.  Chairman Gonzales asked her to report on the outcomes of her Board meeting at the LDCHA March Board meeting. 

D.        Receive Update Report on MTW Extension.

The Board has been kept informed on the LDCHA’s MTW extension request efforts.  The agency’s MTW contract carries a termination date of March 30, 2006.  HUD administratively changed the date of the contract termination to December 31, 2006 to coincide with the fiscal year end.  Congress granted a three-year extension to all agencies with termination dates on or before September 30, 2006.  HUD took the position that agencies with December fiscal year ends do not qualify for the extension. Senators Brownback and Roberts’ legislative staffs have made inquiries at HUD on the agency’s behalf.  Last week an email was received from HUD staff stating that a decision was forthcoming.   However, Ms. Huppee pointed out, this is a legal question as the agency has a binding contract and is an issue that the Executive Director would like to present to HUD’s General Counsel.  After discussion, Commissioner Johnson moved to approve up to $5,000 for the agency to engage legal counsel to pursue the MTW extension request.  Commissioner Smith seconded the motion.  The motion passed unanimously.    

E.         Receive Update Report on Clinton Place Foreclosure.

Ms. Huppee reported that as of February 21 HUD still had not received the revised Comprehensive Repair Survey on Clinton Place Apartments. The document contains the information to be used in determining the asking price for the property.   This document is the physical assessment report that details the physical condition of the property, needed repairs, replacements and estimated costs. HUD has informed the Executive Director that once it has the document, it will be three weeks before the agency will have its offer letter.               

7.         Calendar and Announcements.

8.         Adjournment.

            There being no further items of business, Commissioner Amison moved to adjourn.  Commissioner Smith seconded the motion.   The meeting was adjourned at 7:00 p.m.

_____________________________                                 _____________________________

Chair                                                                                   Secretary                                 Attest