MINUTES OF A REGULAR MEETING

OF THE  

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

March 27, 2006                                                                                               Edgewood Homes  

5:30 p.m.                                                                                                          Conference Room         

1.         Call of Roll.

            The meeting was called to order at 5:35 p. m. by Chair, Mark Gonzales.  The following Commissioners were present:

               Wes Smith

               Brenda O’Keefe

               Willie Amison

               Mark Gonzales  

Also present were Dennis Garrison, Brookcreek Learning Center Board President; Esther Kottwitz, Brookcreek Executive Director; Erica Ritter, Program Coordinator for Brookcreek; Milton Scott, Barbara Huppee and Vickie Butler, LDCHA staff members.

Absent by prior arrangement:

Sonya Johnson

2.         Approve Minutes of February 27, 2006 Board of Commissioners Meeting.

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

3.          Receive Comments from Tenants and Public.

            There were no comments. 

4          A.        Distribute February Accounting Summaries.

            B.         Receive February 2006 Financial Reports.

            February reports brought the agency 17% through the budget year with total rental income on line with budget projections. Operating subsidy is on line at 17%.  The amount of subsidy used was based on the 2005 authorized approved subsidy level.  The 2006 operating subsidy calculation of $624,626 has been submitted to HUD for review and approval.  HUD will not issue a final subsidy amount until this summer.  Administrative expenses are running under budget projections at 10% as well as Tenant Services at 16%.  The agency received notice of three grant awards for Resident Services.  Costs associated with these grants are currently being funded under the public housing operating budget but will be shifted to the appropriate grants beginning March 2006.  Utilities are running under except for gas which is over at 23%.  As of February the agency shows $88,732 in income over expenses.  This number is high because the January expenses were significantly low given that much of January was charged to 2005 as an accrual.  Expenses billed in January that occurred in December and charged to 2005 were $81,521.  Total Income for February was $143,851 and total expenses were $143,101.  Routine expenses will decrease as Resident Services shifts to grant funding.  Capital expenses will begin to accrue as work begins on the maintenance expansion project.

            Commissioner Amison moved to accept the February financial reports as presented.  Commissioner O’Keefe seconded the motion.  The motion carried.

5.         CONSENT AGENDA

A.        Receive First Year Progress Report on the HOPE Building Program.

            B.         Resolution 922:  Approve 2006 Federal Income Guidelines.

            C.        Receive Report on 2005 Agency Financial Audit.

.           D.        Receive 2006 Fist Quarter Program Demographic Report and Information on 2005 Applications and Participant/Resident Terminations.

            E.         Receive Update Report on Peterson Acres and Maintenance Facility Expansion

Projects.

            F.         Receive Information on Executive Director’s Appointment to the Housing Needs Task Force.

            G.        Receive Information on Scheduled HUD Inspections of the Agency’s Public Housing Property.

            H.        Receive Information on the Agency’s Strong Start Strong Finish Program Fair and Personal Invitation to Attend.

            Commissioner Amison requested that item H be removed from the Consent Agenda for discussion. Chairman Gonzales moved the item to the Regular Agenda.  Commissioner Smith moved to approve items A through G on the Consent Agenda.  Commissioner Amison seconded.  The motion carried.

6.         REGULAR AGENDA

            5H.      Receive Information on the Agency’s Strong Start Strong Finish Program Fair and Personal Invitation to Attend.

            Commissioner Amison asked what was in place right now to assure that the LDCHA gets the full affect of the $25,000 that is going to be awarded.  If the grant is intended to inform or educate tenants how do we assure that they will take advantage of it. He inquired about the criteria for activities and the expected outcomes.  He would like to see the kind of data that is collected on what the results of the grant were. Ms. Huppee explained that the project was designed to improve wellness awareness of low income families including infants and seniors. Focus will be given to promoting prevention based strategies to improve overall health and to prevalent health concerns such as diabetes, heart disease, obesity, and depression. This particular grant like all the grants has very specific objectives with specific outcome measurements.  This is the second grant that the LDCHA has received.  The agency received a small grant last year and having been successful with that grant feel this is an opportunity to continue with that partnership. Ms. Huppee stated that she will have Kris Hermanson, Resident Services Director, write a report on the specific activities and evaluation criteria that the agency will be looking for.  This report will be presented next month.   The upcoming Health Fair will serve as an official “kick off” promotion for the project. 

            A.        Receive Update Information on Clinton Place if Available.

             Ms. Huppee stated that there is no additional information other than what was given previously to the Board.  HUD is still in the process of putting together the bid offer that they will present.  HUD estimated that would be three weeks from the time it has an approved comprehensive maintenance report to the time an offer is prepared.   Dave Corliss, Acting City Manager, has been updated on this. If the offer is acceptable the agency will need City Commission approval to purchase the property.  The agency would be looking at an acceptable offer being not only the purchase price but what is known to be $500,000 worth of repairs.  If the offer is received outside the timeline of the board schedule, the board will have to have a special call meeting or conference call meeting depending on the nature of the letter.  Chairman Gonzales asked if HUD assistance went with the purchase.  Ms. Huppee stated that it would be project-based Section 8 assistance which means everybody that lives there will have to be income eligible and will have to be eligible under federal regulations.  They will pay 30% of their adjusted gross income for rent, and HUD will pay the balance toward the contract. 

            B.         Receive Update Report on the Outcomes of the Brookcreek Board Meeting Relative to the LDCHA’s Enrollment Issues.

            At last month’s board meeting the LDCHA board outlined issues and possible consequences to Brookcreek for being out of compliance with the public housing enrollment requirements contained in its lease.  Dennis Garrison, president of the Brookcreek Learning Center Board, and Esther Kottwitz, Brookcreek Executive Director were present at the meeting to discuss the outcomes of the March 14 Brookcreek Board meeting.  Mr. Garrison stated that the Brookcreek board was unanimous in agreeing to come into the confines of what the LDCHA needs.  The Brookcreek board came up with some ideas as well as a timeline. They will follow up flyers with phone calls, develop a spread sheet for inquiries about Brookcreek, be available to talk with residents in the evening, hold an open house in May and be attending the Health Fair April 1^st.  Mr. Garrison stated that they set a target date of 6/30/2006 for having 22 public housing children and a drop dead date of 9/30.  Ms. Huppee stated that a drop dead date was not actually set but if a report was to be made to the board in September it would have to coincide with the September 25 board meeting.  Mr. Garrison stated that the September date would give Brookcreek more time to implement some of the plans that have been made and then whatever decision is made, have implementation by the end of the year.  Ms. Kottwitz stated they are in the process of revising their tuition to offer scholarships, as reduced fees, to public housing children, deducting $60 for preschoolers, $45 for infants, and $35 for toddlers.  Including a child that is in the process of being enrolled now, Brookcreek has 12 children from public housing. Commissioner Amison asked how many children can be enrolled.  Ms. Kottwitz stated 8 in the infant/toddler and 20 in the pre-school side. 

            After a lengthy discussion Chairman Gonzales stated that he was OK with giving Brookcreek time to try and implement what they are trying to do to get the numbers up and at 9/30 if there is still 10, 11 or 12 public housing children then there is a problem and a decision will have to be made at that point in time.  In the meantime Brookcreek is being asked to provide monthly reports so the LDCHA knows how the tracking process is working.

C.        Receive Report on the New Federal Regulations Requiring PHAs to Transition their Public Housing Budgeting, Management and Maintenance Operations from an Agency Wide Operation to a Private Sector Asset Based Management Model.

Ms. Huppee reported that the new regulations on asset management become effective October 1, 2006.  The law is out but HUD has not issued any guidance on asset management and project based accounting. Housing Authorities have until 2011 to come into full compliance with the regulations.  The new subsidy formula will be effective January 2007.  The new formula will be determined on a project basis not an agency basis as it is now.  All income and expenses will have to be assigned to a specific project.  The agency will have as many budgets and sets of financial reports and books and operating subsidy as it has projects. All direct costs will be charged directly to the respective project. The agency has seven projects. What the agency has to do now is reconfigure units, such as establish Edgewood Homes as one, Babcock as one and all the Scattered Sites as one. That is the accounting part of it.  The management part is that the agency has to direct cost everything to these projects, revenues and expenses, and still look at centralized services and do systematic reviews.   Even though this goes into effect October 1, the agency’s fiscal year is December 31, so for the LDCHA it will become effective January 1, 2007.  The big concern is keeping agency reserves.  The operating budget for this year for public housing is $1.6 million and the agency has that plus in reserves.  Staff will be looking at the needs of public housing and ways to use the reserves to support public housing functions before the end of the year.  By law the agency needs to keep three months operating expenses in reserves.  The question becomes what can the agency obligate quickly and get under contract.  Discussion then centered on different ideas for projects that would perhaps benefit public housing.

To further explain and clarify Asset Management a report prepared by PHADA was distributed to the board.  

D.        Receive Report on HUD Approval of MTW Extension Agreement.

The board had been previously informed that the agency received its 3-year extension. This is on the agenda to complete the discussion and reflect the outcome in the minutes. With the extension the agency will have to start reporting on the new 50058 MTW module, which is the module that the agency has never been able to report to as the data is rejected since tenant data does not conform to HUD regulations. 

7.         Calendar and Announcements.

            Ms. Huppee reminded the board that the April meeting will have three meetings, the Annual Meeting, the Regular Meeting, and the Douglas County Housing, Incorporated Meeting.  Also the auditor wants to report to and meet with the board in April. The architect will be present with the designs for the maintenance building and Peterson Acres for Board approval.

8.         Adjournment.

            There being no further items of business, Commissioner Amison moved to adjourn.  Commissioner Smith seconded the motion.   The meeting was adjourned at 6:50 p.m.

_____________________________                                 _____________________________

Chair                                                                                   Secretary                                 Attest