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
Kris Hermanson, Resident Services Director, presented the book “Circle of Women Circle of Words”, a collection of poetry and prose from the LDCHA Women’s writing group. She invited the commissioners to attend a reception and reading of collected works from the publication on Tuesday, September 12, 2006 at the Lawrence Art Center Gallery, 940 New Hampshire at 7:00 pm.
1. Call of Roll.
The meeting was called to order at 5:30 p.m. by Chair, Wes Smith. The following Commissioners answered present:
Sonya Johnson
Brenda O’Keefe
Mark Gonzales
Wes Smith
Willie Amison
Also present were Lynn Amyx, Residential Services Coordinator, Bert Nash Center; Milton Scott, Kris Hermanson, Suzanne Kerich, Vickie Butler and Barbara Huppee, LDCHA staff members.
2. Approve Minutes of June 26, 2006 Conference Call Board of Commissioners Meeting.
Commissioner Gonzales moved to approve the June Board meeting minutes. Commissioner Amison 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 July 2006 Financial Reports.
The July report brought the agency 58% through the budget year with total rental income 3% over budget projections at 61%. Operating subsidy showed 5% over budget projections at 63%. The subsidy amount used in the report was based on the 2005 final authorized approved amount. HUD is expected to release the final determination for 2006 by the end of September. Total income year-to-date is running over budget projections at 63%. Expenses are running under budget projections at 52%. Total tenant services continue to run over at 65% for resident services grant costs. Costs to this line changed in March from tenant services to the appropriate ROSS grants based on new funding. A review of this line needs to be done and reimbursements made if called for. Water and electricity continue to run under budget and other utility is 1% over at 59%. Gas continues to run over budget. A total of $11,561 has been paid year-to-date under work in progress for the Maintenance Shop expansion project. As of the July report, the agency showed $151,449 in income over expenses. This does not include the year-to-date expenses for the Maintenance Shop expansion project.
Commissioner Gonzales moved to approve the July financial reports as presented. Commissioner O’Keefe seconded the motion. The motion carried.
B. Receive Section 8 2nd Quarter Program Report.
The second quarter reporting period showed the Section 8 program earned $219,006.84 in earned administrative fees. This is an aggregate total of 3,666 units under lease on the 1st day of the month for January through June. Fees earned under the Family Self Sufficiency position were $16,507 and $17,964 under the Homeownership Coordinator position. Interest earned on operating reserve investments to date was $78,531.51. The total amount collected under fraud recovery was $3,459. Total operating receipts through June was $335,468.35. Expenses under the Section 8 program are for those directly related 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 June a total of $265,503.90 has been spent in administrative expenses.
A total of $1,365,654.34 has been paid year-to-date for Housing Assistance Payments (HAP). A total of $19,440.64 has been paid year-to-date and $27,040.15 project-to-date for the Peterson Acres Affordable Housing Project. The Peterson Acres expansion project is being paid for with Section 8 MTW reserves. As of the 2nd quarter reporting period, the program showed $335,468.35 in total operating receipts and $265,503.90 in total operating expenses with operating reserves in the amount of $69,964.45.
Commissioner Johnson moved to accept the Section 8 2nd quarter program report. Commissioner Amison seconded the motion. The motion carried.
5. CONSENT AGENDA
A. Receive Executive Director’s Report.
B. Resolution 927: Approve Continuation of LDCHA as Contract Administrator for the Bert Nash HOME Tenant Based Rent Assistance Grant Program.
Commissioner Gonzales moved to approve the Consent Agenda as presented. Commissioner O’Keefe seconded the motion.
6. REGULAR AGENDA
A. Resolution 928: Consider Entering into a Lease Agreement with the Bert Nash Center for 825 E. 13th Street for Short Term Emergency Housing for their Clients.
Lynn Amyx, Bert Nash Residential Coordinator, presented their proposed plan to the Board. The plan is to provide short term emergency/interim housing by entering into a lease with the LDCHA for a 5-bedroom property on 13th Street. Bert Nash is responsible for providing mental health services to the residents of Douglas County. When the hospital closed their mental health unit, Bert Nash opened up the Bridges House at 1334 New Jersey as interim/emergency housing using federal funding. When that funding ran out, the LDCHA rented the property and it is now used for the HOPE Building Project. Renting the 13th Street property would provide interim housing for individuals being discharged from psychiatric hospitals and those experiencing a crisis that could be diverted from hospitalization with the help of support services. Bert Nash would provide staffing for support services to be provided on site. Bert Nash has some funding sufficient to pay $725 a month rent plus utilities for the 13th Street property. The LDCHA did not receive any rent from the tenant who is leaving the unit. The agency paid the tenant a $19 monthly utility payment. The unit will be available in September and the agency does not have a need for a 5-bedroom unit. HUD will permit the LDCHA to use the unit for Bert Nash’s purpose. The unit will not receive HUD subsidy during Bert Nash’s use of the building. The agency would receive $8,700 in annual rent if the board approves the request.
After discussion, Chairman Smith moved to approve the lease agreement with the Bert Nash Center for 825 East 13th Street. Commissioner Gonzales seconded the motion. The motion was approved unanimously. The unit will be taken off the rent rolls and rented to Bert Nash October 1, 2006.
B. Resolution 929: Review Bids and Approve Low Bidder for the Edgewood Homes Maintenance Facility Expansion Project if Appropriate.
Ms. Huppee reported that Wednesday, August 24th was the deadline for bids for the Edgewood Homes Maintenance Shop expansion and renovation project. Three companies bid. They were BA Greene of Lawrence, GSR Construction of Lawrence, and Prosser Wilbert of Lenexa. GSR, Greg Randel, owner, was the low bidder at $378,000 followed by BA Green at $397,000 and Prosser Wilbert at $499,000. The agency is required to award the bid to the lowest and best bidder. Suzanne Kerich, LDCHA Capital Fund Coordinator, presented the results of a reference check of GSR Construction that contained projects from 2004 to present. The Board discussed the outcome of the review. Commission Gonzales moved to award the maintenance shop expansion project to GSR Construction. Chairman Smith reclused himself from the vote. Commissioner Johnson seconded the motion. The motion carried.
C. Receive Report on Brookcreek Learning Center’s Progress in Meeting Enrollment Requirements.
Ms. Huppee reported that September is the deadline for the Brookcreek Learning Center to come into compliance with the enrollment requirements of their lease. Under the lease they are required to have 22 public housing children in continuous enrollment across all their sites. In March the board discussed this issue with Brookcreek Board President, Dennis Garrison. Currently Brookcreek has 16 public housing children enrolled. The Board was asked what type of information they would like to receive from Brookcreek in preparation for the September discussions. The board asked for the following information: the monthly enrollment totals of public housing children on the first of the month for the months of March through September; the full range of marketing activities and events undertaken since March including number and description of mail campaigns, home visits, open houses and other follow-up activities. The board also requested that the Brookcreek board president and other board members as well as their executive director be present so they may participate in the discussions.
D. Review Preliminary 2007 LDCHA Annual Plan.
Ms. Huppee explained that housing authorities are required to submit annual plans to HUD describing programs, policies, and activities that they will carry out in the next fiscal year. The plan also includes the agency’s 2007 Capital Fund Program submission. The LDCHA’s 2007 annual plan will be electronically submitted to HUD in mid-October. The major focus of 2007, listed in the Executive Summary, will be the transition to asset management and project-based accounting. The LDCHA proposes to revise the public housing flat and ceiling rents and the MTW rents. The draft plan was presented to the board for review and comment.
During discussion of the MTW rent increase, Ms. Huppee stated that the annual MTW analysis assessing the percentage of tenant income paid for rent demonstrated that the majority of MTW households pay less than 30% of their adjusted income for rent. For the past several years reports have shown that rents should be increased. Ms. Huppee stated that the reports would be distributed to the Commissioners for their information.
The board will conduct a public hearing on the plan at its September 25th meeting.
E. Receive Report on Agency Health Insurance Renewal.
The agency’s current health insurance plan with United HealthCare renews on October 1. The agency received the 2006-2007 renewal rates along with a chart of five other carriers that offered proposals. Again this year there is an 11% United HealthCare premium increase. Presently the agency pays $4,125 monthly and the employees pay the same. The current health plan carried a $500 individual deductible, $1,500 family deductible with $2,000 individual out-of-pocket maximum and $4,000 for a family. The current deductibles and out-of-pocket maximums are low compared to the industry standard of $1,000 individual, $3,000 family. There are United HealthCare plans where the health benefits remain the same but the premiums can be reduced by increasing deductibles, out-of-pocket maximum, co-insurance, and co-pays. The board was presented with a chart that showed current and premium renewal rates and optional plans. Option 1 is the present industry standard. This plan would raise the monthly premium $8.49 for individual coverage; $17.82 for employee-spouse; $16.55 for employee-children; and $25.88 for employee-family of which the agency/employee equally pay half. If the option plan was selected, the agency and employees would pay $4,267 monthly.
After discussion of the various options, Commissioner Amison moved to approve United HealthCare Option 1 as the agency health plan for 2006-2007. Commissioner Johnson seconded the motion. The motion passed unanimously as Resolution 930.
F. Receive Update Report on Clinton Place.
The Board discussed the appraised value of Clinton Place with and without HUD restrictions. During discussion, Commissioner Gonzales stated that 1.1 million is reasonable and the market value of the property. There has been no further information at this time.
7. Calendar and Announcements.
Ms. Huppee reported that Babcock Place was going to have their annual “Block Party” Friday, September 22 from 6:00 – 8:30 pm. The annual landlord/property managers’ appreciation luncheon will be held on October 26 from 12:00 -1:30 pm. The Commissioners will receive invitations to both events.
8. Adjournment.
There being no further items of business, Commissioner Amison moved to adjourn. Commissioner O’Keefe seconded the motion. The meeting was adjourned at 7:20 a.m.
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Chair Secretary Attest