MINUTES OF A REGULAR MEETING
OF THE
LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY
BOARD OF COMMISSIONERS
December 18, 2006 Babcock Place
5:30 p.m. Conference Room
1. Call of Roll.
The meeting was called to order at 5:30 p.m. by Chair, Wes Smith. Upon call of roll the following Commissioners answered present:
Brenda O’Keefe
Mark Gonzales
Willie Amison
Wes Smith
Also present were Hubbard Collinsworth, Section 8 resident; Shannon Oury, LDCHA Counsel; Beverly Hyatt, Kris Hermanson, Vickie Butler and Barbara Huppee, LDCHA staff members.
2. Approve Minutes of the November 27, 2006 Board of Commissioners Meeting.
Commissioner O’Keefe moved to approve the November Board minutes as presented. Commissioner Amison seconded the motion. The motion carried.
3. Receive Comments from Tenants and Public.
Mr. Collingsworth complimented the agency on its website being up-to-date with information easily assessable.
4. Receive November Financial Reports.
The November reports were not available from the fee accountant due to the early date of the Board meeting.
5. CONSENT AGENDA
A. Receive Executive Director’s Report.
B. Resolution 949: Write off Capital Inventory.
A corrected capital inventory write-off was distributed to the Commissioners. The 1996 Ford F-150 was incorrectly listed as sold instead of a trade-in.
Commissioner O’Keefe moved to approve the Consent Agenda as corrected. Commissioner Amison seconded the motion. The motion carried.
6. REGULAR AGENDA
A. Resolution 950: Approve 2006 Public Housing Operating Budget Revision.
Ms. Huppee explained that the budget revision was necessary to bring income and expenses in line with budget projections. Increases in operating income results mostly from an increase in dwelling rental income, interest income earned on investments and an increase in operating subsidy. Increases in expenses fall mostly under the administrative, maintenance and tenant services personnel salary lines because of awards paid under the employee incentive program. The other increases in expenses fall mostly under utilities and general expenses. The agency increased its auto insurance liability limits and workers’ compensation premiums increased. Also included under the general expense line was a projection for compensated absences which is recorded every December as part of the year-end close out. The 2006 budget revision projects total operating receipts of $1,803,093 and total operating expenditures of $1,742,050 with overall projected income over expenses of $61,043.
Commissioner O’Keefe moved to approve the 2006 Public Housing operating budget revision. Commissioner Amison seconded the motion. The motion passed unanimously.
B. Receive Report on Brookcreek Learning Center.
Commissioner Johnson joined the meeting at 5:45 p.m.
Last month Brookcreek wrote a letter to the LDCHA Board stating it would vacate the Edgewood Homes site March 1, 2007. This month the Board was presented with a letter from Paula Phillips, Vice chair of the Brookcreek Learning Center Board of Directors, withdrawing that November letter. In this recent letter they also submitted a proposal to operate a half day program for children who attend public school kindergarten as well as a full day summer kindergarten program. Brookcreek would operate this program out of the Edgewood Homes site with preference given to Public Housing families.
Kris Hermanson, LDCHA Resident Services Director, reviewed the results of a survey conducted on the day care needs of our public housing residents. That survey showed that the greatest needs for public housing families at this time were for day care services at the toddler and preschool levels. After considerable discussion lasting 45 minutes the Board reaffirmed its decision of November 25th. That decision was the termination of the Brookcreek Learning Center’s lease and its desire to seek day care providers that match the needs of LDCHA residents in the space that is available. The Board had requested that the LDCHA develop a Request for Proposals seeking opportunities that may exist from other day care providers. The Board directed the Executive Director write Brookcreek informing it of the Board’s intentions and to invite Brookcreek to submit its proposal based on the RFP. Ms. Huppee stated that staff would develop the RFP and expects it could be distributed in late January.
C. Receive Report on Clinton Parkway Purchase.
Shannon Oury, LDCHA counsel, debriefed the Board on the LDCHA processes of the Clinton Parkway Purchase. Ms. Oury reported that as of today, the Board is the owner of 58 new units; on Friday it was still not sure. The first of the week last week the agency signed the purchase agreement and partnership approval documents. On Thursday, staff met with the attorney preparing the partnership documents. It was discovered the partners did not have the requisite majority for partnership approval. From Thursday to Friday the necessary majority was documented. Friday HUD accepted the HAP contract, gave the approval, received the money to pay off the mortgage, and the deed was recorded on Friday afternoon. HUD did not have time to cancel the foreclosure auction and several people came from various states. They were not told that the property was sold until the time of the auction. Ms. Huppee stated the mix of population at Clinton Place is different than what it will eventually become. The requirement is that it reverts back to an elderly property. There are probably no more than 8 to 10 elderly in the building, the remaining are non-elderly, disabled.
The discussion continued concerning the extraordinary amount of work that needs to be done and the condition of the property.
D. Resolution 951: Temporarily Waive Agency Procurement Policies to Raise Samll Purchase Limit to $100,000 for Clinton Place Improvement Project.
Ms. Huppee explained that HUD requires all PHAs to have board approved procurement policies that are consistent with federal regulations. These regulations set the small purchase procurement limit at $100,000. This means that an agency can purchase any item or service on a sole source basis up to a $100,000 limit. The LDCHA policy is more restrictive. It permits sole source procurement up to $10,000, three quotes for levels over $10,000 to $49,999, and sealed bids for purchases over $50,000. In order to expedite the renovation work at Clinton Place it will be necessary for the agency to procure service and materials quickly. The sealed bid process is slow and can take several months before any work could begin. There are items that need to be carried out immediately and it is likely that a single vendor may do multiple but different projects where the aggregate would be more than $50,000. Under the agency’s current policies that work would require sealed bidding. The request to temporarily wave the agency policies is only for repairs to Clinton Place during rehabilitation. The main plan for doing the deferred maintenance is to hire an architect and a general contractor. The reason for the request is to move forward and to move quickly.
During discussion, Commission Johnson suggested that a time limit be established for the length of the waiver. She inquired if there were any projects that could wait and be open to the bidding process. Ms. Huppee stated that there will be some things that are over $100,000 that staff would certainly do a bid packet on, for instance the exterior siding, and some projects will be deferred because of the weather, for example, the roof. Commission Johnson inquired as to how long it would take to do these projects. Ms. Huppee reported that HUD would say the repairs were to be completed in 24 months, and in the agency’s proposal staff reported it would endeavor to be done in 18 months. There are 12 vacancies right now. The agency’s intention would be to hire a general contractor to rehab those 12 units. Commissioner Johnson stated she understood wanting to move quickly but should seriously consider putting a time frame and making sure we are allowing those folks who can do this work for it to go to a bid process. Chairman Smith suggested that six months should allow enough time to come back and revisit the issue.
Commissioner Gonzales moved to approve Resolution 951 until July 1, 2007. Commissioner Amison seconded the motion. The motion passed unanimously.
E. Resolution 952: Temporarily Waive any Contradictory Provisions of the Personnel Policy to Permit Transfer of Existing Employees to Positions of Property Manager and Maintenance Worker II of Clinton Place.
Ms. Huppee stated that the agency’s personnel policies contain different contradictory provisions. One section talks about “upward mobility” and listing the position internally before advertising externally and another one talks about transfers and gives the Executive Director and department heads the authority to transfer people from one position to another position. In anticipating the purchase of Clinton Place with its unique conditions, it was necessary that the agency have qualified staff available to move into the building immediately upon transfer of ownership; staff that can “hit the ground running”, who can assume the management and maintenance of the building and carryout functions consistent with the standards of the agency, staff who have the qualifications required of the duties of the job. The individuals should come from within the organization and their appointment should not have a disruptive or detrimental impact on core program functions and processes. The Executive Director informed the board that she has identified two employees who have the necessary qualifications for Clinton Place, for Property Manager and a Maintenance Worker II. Ms. Huppee stated that these transfers would have no disruptive or detrimental impact on the core functions and processes of the agency. Given the contradictory nature of the Personnel Policy she is asking the board to approve Resolution 952.
Commissioner Johnson stated that obviously there is an already identified policy that describes how a position is to be posted. She asked if the assignments of both the maintenance person and the property manager were temporary assignments until the positions are posted so other people may apply, or are they permanent positions. Ms. Huppee responded that the intention is for them to be permanent transfers. Commissioner Johnson’s second question was if there was anyone else in the agency that could actually meet the qualifications of actually being able to carry out that job. Ms. Huppee stated that in her view and consideration, if the position was posted in house these would have been the people selected. Commissioner Johnson’s third question was why then wouldn’t we have advertised it and that would still have given the opportunity to be able to put those people selected into that position. Commissioner Johnson stated her only concern in this is that we don’t want to create an atmosphere where we are just assigning folks in spots, either internal positions, whether they be promotional, or lateral transfer positions. Ms. Johnson asked if this is a lateral transfer or is this promotion. Ms. Huppee replied it is more of a lateral transfer and is an extraordinarily unusual condition as these positions were not even a part of the agency until today. Taking all the conditions of the purchase into consideration these people are the best suited for this job and the appointments are in the best interests of the agency. Commission Johnson stated that if the agency has this policy in place it should be opened up in the future, so that we don’t have upper management just placing people in the position without giving others the opportunity to apply. Ms. Johnson inquired as to how the maintenance position was filled. Ms. Huppee replied that the Maintenance Director made an inquiry of the individual asking if he would like to transfer to that position and the individual said yes.
Ms. Johnson asked how long a position is posted. The reply was three days. Commission Johnson stated that technically then the position could be posted and left vacant for four days before filling the position to stay within policy.
Commissioner Gonzales asked Shannon Oury, legal counsel, her opinion. Ms. Oury replied that the board has authority over its policies. This is not a matter of a failure to carryout a policy but the matter of contradictory policies. There is no breech. Employees have no defacto right of enforcement of the policies whether it’s a transfer or promotional opportunity. Usually the question of not following policies comes up in connection with a charge of discrimination.
Commissioner Amison asked if the vacated positions would be posted to give others the opportunity to apply. Ms. Huppee replied that both the positions would be posted.
Following discussion, Commissioner Gonzales moved to approve Resolution 952. Commissioner O’Keefe seconded the motion. The motion carried 4 to 1 with Commissioner Johnson opposed.
7. Calendar and Announcements.
8. Adjournment.
There being no further items of business, Chairman Smith moved to adjourn. Commissioner Amison seconded the motion. The meeting was adjourned at 7:15 p.m.
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Chairman Secretary Attest