MINUTES OF A REGULAR MEETING

OF THE

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

 

August 28, 2006                                                                                               Babcock Place

5:30 p.m.                                                                                                          Meal Site                                                                                             

1.         Call of Roll.

              The meeting was called to order at 9:05 a.m. by Chair, Wes Smith.  The following Commissioners answered present:

            Sonya Johnson

            Brenda O’Keefe

            Mark Gonzales

            Wes Smith

            Willie Amison connected at 9:10 a.m.

               Also present were Milton Scott, Charlotte Knoche, Vickie Butler and Barbara Huppee, LDCHA staff members. 

2.         Approve Minutes of May 22, 2006 Board of Commissioners Meeting.

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

3.          Receive Comments from Tenants and Public.

             There were no tenants or members of the public present.

4.         A.        Receive May 2006 Financial Reports.

            The May reports brought the agency to 42% through the budget year with total rental income 1% over budget projections at 43%.  Interest income is over at 106%; other income is under at 36%, and income from other sources is 5% over budget projections at 47%.  Operating subsidy is 1% over budget projections at 43%.  Total income year-to-date is 2% over budget projections at 44%.  Total administrative expenses are under budget projections at 46%.  Total tenant services continued to run over projections at 46%.  Water, electricity and other utility expenses remain under projections.  Gas continues to run over at 68%.  A total of $8,549 has been paid year-to-date under contract work in progress for the Edgewood Homes maintenance shop expansion project.  As of the May report the agency showed $96,211 in income over expenses.  This does not include the $8,549 expense for the maintenance shop expansion.

                       

            Commissioner Gonzales made a motion to accept the May 2006 financial report as presented.  Commissioner O’Keefe seconded.  The motion carried.

5.         CONSENT AGENDA

            A.        Receive Executive Director’s Report.

            Commissioner O’Keefe moved to approve the Consent Agenda as presented.  Commissioner Johnson seconded the motion.

6.         REGULAR AGENDA

            A.        Resolution 925:  Approve 2006 Public Housing and Tenant Based Programs (Section 8 and HOME) Utility Allowances.

            Public Housing, Section 8 and HOME programs provide utility allowances for tenants who pay their own utilities to help pay for utility usage.  The tenant rent is reduced by the utility allowance amount.  Each year the agency reviews the utility allowances based on current rates. The 2006 utility rates are based on average actual consumption for the primary types of tenant-based programs rental units and public housing units.  Babcock Place tenants pay no utilities and therefore do not receive a utility allowance.  In Douglas County there are four utility service areas for which utility allowances schedules must be developed.  These are Baldwin City, Eudora, Lawrence and Lecompton. The comparisons of the 2006 rates to the 2005 current rates for utility allowances were distributed to the Commissioners for review.  Rate changes have an impact on public housing rental income, either decreasing or increasing the agency’s rental income. A rate increase results in an increase in the utility allowance thus reducing the rent payment to the agency.  Rate increases do not affect agency income under the Section 8 program, it affects the amount of overall housing subsidy available to participants.  The 2006 utility rates show increases in electric, natural gas, water and sewer, an increase across the board on tenant utility allowances.  The overall effect of the rate changes will result in public housing tenants paying $32,832 less in rent.

            There being no discussion, Commissioner Amison moved to approve the 2006 utility allowances.  Commissioner Gonzales seconded the motion.  The motion carried.

            B.         Resolution 926:  Approve Expenditure of Public Housing Reserves to Complete Comprehensive Improvements to Agency Public Housing Developments.

            The board has been kept informed of the public housing conversion to project based asset management and accounting and the expected impact on public housing reserves.  It is known that once the reserves are allotted to different projects they may only be used on that particular project. Since the LDCHA has fairly high public housing reserves, staff proposes spending down reserves by December 31 to no less than $800,000. The funds would be used to accelerate the agency capital improvement plan. The maintenance expansion will be using $450,000 in reserves. The Board was presented with a list of projects and cost estimates that staff desires to undertake for an additional total of $462,216.  The projects consist of replacing windows, siding and roofs on selected scattered sites. 

             After a brief discussion, Commissioner Johnson moved to approve the expenditure of $462,216 in public housing reserves for improvements to public housing properties.  Commissioner Amison seconded the motion.  The motion carried.    

8.         Adjournment.

            There being no further items of business, Chairman Smith moved to adjourn.  Commissioner Gonzales seconded the motion.  The meeting was adjourned at 9:30 a.m.

 

 

 

 

_____________________________                                 _____________________________

Chair                                                                                   Secretary                                 Attest