MINUTES OF A REGULAR MEETING

OF THE

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

 

November 27, 2006                                                                                         Edgewood Homes

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

            Wes Smith

 

            Also present were Beverly Hyatt, Rachel Loder, Kris Hermanson, Vickie Butler and Barbara Huppee, LDCHA staff members. 

2.         A.        Approve Minutes of the October 23, 2006 Board of Commissioners Meeting.

            Commissioner Gonzales moved to approve the October Board minutes as presented.  Commissioner O’Keefe seconded the motion.  The motion carried.

            B.         Approve Minutes of the November 14, 2006 Special Conference Call Meeting.

            Chairman Smith moved to approve the Conference Call meeting minutes as presented.

Commissioner Gonzales seconded the motion.  The motion carried.

3.         Receive Comments from Tenants and Public.

            There were no members of the public or tenants present.

4.         Receive October Financial Reports.  

            October brought the agency 83% through the budget year with total rental income 5% over at 88%.  Operating subsidy is running over budget projections at 95%.  HUD announced the final operating subsidy pro-ration level in late September at 86.02% or $537,303 in approved operating subsidy.  This will be brought in line with the budget revision presented to the Board in December.  Total income year-to-date is running 9% over budget projections at 92%. Total administrative expense is running 6% under budget projections at 77%.  Water continues to run under budget projections at 73%.  Electricity is running 3% over at 86% and other utility expense running over at 89%.  Gas is 8% under at 75%.  Total utilities are 2% under budget projections at 81%.  Insurance is running 2% over at 85% due to slight increase in workers’ compensation and auto insurance policies.  Total operating expenses are running under budget projections at 67% through the budget year.   As of this October reporting period the agency showed $225,093 in income over expenses.  A total of $16,171.27 has been paid year-to-date under contract work in process for the Maintenance Shop expansion project which does not appear on this report.

5.         CONSENT AGENDA

            A.        Receive Executive Director’s Report.

            B.         Resolution 941:  Approve 2007 Application for HOME Tenant Based Rent Assistance and Community Development Block Grant (CDBG) Funds.

            C.        Resolution 942:  Write-off Tenant Accounts Receivables in the Amount of $8,951.56.

            D.        Resolution 943:  Write-off  Uncashed, Unclaimed Checks in the Amount of $1,798.50.

            Commissioner Amison joined the meeting at 5:40 p.m.  Commissioner Johnson joined the meeting at 5:45 p.m. 

            Commissioner Gonzales moved to approve the Consent Agenda as presented.  Commission O’Keefe seconded the motion.  The motion carried.

            6.         REGULAR AGENDA

            A.        Resolution 944:  Approve 2006 Performance Awards Under the Employee Performance Incentive Fund if Appropriate. 

            In 1999 the Board approved the Employee Incentive Fund which rewards employees at the end of the year for the achievement of financial and program goals established in the annual budget and written management performance standards.  This program was also established to recognize the collective performance of staff.  The amount of the award is determined by the amount of income that exceeds the residual receipts established in the public housing operating budget for the given year.  This amount is then matched with Section 8 funds.  The board capped the amount of funds for consideration in any given year at $40,000.  The maximum amount for consideration including the Section 8 match is $80,000.  The initial budget was predicated on the HUD subsidy of $469,560.  The final approved amount was $537,305.  The 2006 budget was adjusted for the final approved subsidy and showed the amount of income over expenses at $70,503.  Based on the end-of-year financial analysis it is projected to end the year with $188,223 in income over routine expenses and $115,743 in income over total budget expenditures.  The former analysis is $117,270 more in income over expenses than projected.  The latter is $45,240 more in income over expenses.  Either consideration would meet the criteria for making awards in 2006.  Whatever amount the Board would approve would be matched by the Section 8 program.

            During discussion Commissioner Gonzales pointed out that interest income was included in the calculations.  He suggested that in the future to deduct investment interest income as that income was one the agency had no control over.  Commissioner Gonzales then moved to approve the full allocation of $40,000 to be matched by Section 8 funds.  Chairman Smith seconded the motion.  The motion passed unanimously as Resolution 944.

            B.        Receive Report on Budget Impact of Longevity Pay for Employees with 10, 12 and 15 Years of Service.

            At the October Board meeting the Board approved changes to the agency’s salary wage scale based upon a wage comparability study and analysis.  In adjusting the salary plan the Board was asked to consider the creation of a longevity plan for employees. Discussions at that time centered on employees who were at the top of their pay range.  The Board asked staff to bring back a budget analysis of a longevity pay plan for those employees who had 10, 12 and 15 years of service respectively. The costs range from $47,691 to $12,420 based on $50 per year of service.

            The board discussed the concept of a longevity pay being a reward for years of service and not just because employees had reached the top of their pay scale. Commissioner Johnson moved to start longevity pay at 10 years of service at $50 per year to be awarded at the time of an employee’s annual evaluation beginning January 2007. Commissioner Amison seconded the motion.  The motion carried unanimously as Resolution 946.    

            C.        Resolution 945:  Approve 2007 Public Housing Operating Budget if Appropriate.

            Ms. Huppee explained that the 2007 operating budget projects total expenses at $1,998,170 and revenues at $1,757,069 broken down as follows:  rental income at $1,048,050, other income $153,030 and operating subsidy at $555,989.  Operating subsidy is based on a prorated level of 89% of the HUD approved 2007 subsidy calculation submission.  Overall 2007 operating receipts are projected at 7% higher than 2006 revenues.  Most of this increase is under operating subsidy.  Operating expenditures overall are projected 4% higher than 2006 to be $72,750.  The growth in routine expenses is $48,110 or 2.86% and is attributable to increases in salaries, tenant services, utilities and insurance.  All salary lines contain a 3% COLA, 2.5% merit increase, overtime and salary adjustments in conformance with the new pay plan the Board approved for January 2007.  Total utilities are projected to increase by 4% or $11,980.  The costs expected to be charged in 2007 for the maintenance facility expansion project are $312,890.  The construction contract for the project is $379,084.  Because of this project the overall budget shows a deficit of $241,101.  However, when this is removed the budget shows a surplus of $73,789 in routine operating income over expenses.  The 2007 budget documents comparisons are based on the 2006 original budget.

            During discussions of calculating projected rental income for the budget, Commissioner Gonzales inquired as to why the lowest rent receipt month of the year was used to calculate projected rental income instead of taking an average of the year. Ms. Huppee stated that based on experience it is best not to over estimate income as the agency, unlike the private sector, has no control over its income.

            Commissioner Gonzales moved to approve Resolution 945, the 2007 Public Housing Operating Budget to include 3% COLA and 2.5% merit pay.  Commissioner Amison seconded the motion.  The motion carried.

            D.        Receive MTW 7th Year Outcomes Report.

            Ms. Huppee stated the agency is required to undertake an analysis of the impact of the MTW rent structure on participants and households on the waiting list.  Since the beginning of the program, June 1999, data has been kept on all the elements under the program in an annual report.  The seventh year MTW outcomes report covering the period of July 1, 2005 through June 30, 2006 was distributed to the board for its review.   Last month the board asked how incomes of MTW families had changed over the years. That element was added to the MTW report this year.  Of the 143 project based participants, 63 had an increase in gross household income, 38 had a decrease and 42 experienced no change.  Of the 63 that had an increase the average was $6,216 and of the 38 who experienced a decrease the average was $6,580.  Of the 234 Section 8 tenant based participants, 108 had an increase and 70 had a decrease in household income.  The average increase was $5,287 and the average decrease was $6,628.

            After discussion, Commissioner Johnson moved to receive the 7th year MTW annual report as presented.  Commission O’Keefe seconded the motion.  The motion carried.         

E.         Receive Report on Brookcreek Board’s Decision on Paying a Pro-rated Rent to the LDCHA.

            In September the Board voted to assess Brookcreek Learning Center $58.77 monthly for each slot of the required 22 slots that went unfilled by public housing children.  This assessment was to begin January 1, 2007.  Mr. Garrison, Brookcreek Board President, met with LDCHA Chairman Smith on the matter.  Chairman Smith sent Mr. Garrison a follow-up letter stating that the housing authority’s Annual Contributions Contract states that the use of Edgewood Homes space other than for public housing residents would violate this Contract, and starting in January staff will begin to bill Brookcreek when their enrollment falls below 22 public housing children. 

            Mr. Garrison then sent Chairman Smith a letter requesting to vacate the premises on or before March 1, 2007 in accordance with the current lease agreement.  Chairman Smith moved to accept Brookcreek Learning Center terminating its lease of Edgewood Homes units 159 and 160 as of March 1, 2007 to be occupied until then at no cost and authorize the Executive Director to write the acceptance letter.  Commission Johnson seconded the motion.  The motion carried as Resolution 947. 

            Following the acceptance of the termination, Commission Amison suggested the possibility of the housing authority securing another day care facility.  During discussion the commissioners authorized the Executive Director to prepare a Request for Proposals to solicit another day care provider.  If another day care operation is not found, the lease states that Brookcreek is to return the units in the same condition as when it took possession. 

            F.         Consider Granting December 26th as a Holiday.

            Commissioner Johnson moved to grant Tuesday, December 26th as a holiday for the housing authority staff.  Commissioner O’Keefe seconded the motion.  The motion passed unanimously.

            G.        Receive Report on Clinton Place.  Take Action as Appropriate.

            On November 14, 2006 the Board approved the counter offer of $1,350,000 for the purchase of Clinton Place contingent upon HUD approval.  Ms. Huppee reported that Jim Pohrer, Clinton Place general partner, is still awaiting the vote of his limited partners on the sale.  He has notified HUD and the management company of the impending sale.  His attorney is drawing up the sales agreement.  The local HUD office said they will begin to direct the process once they receive the sales agreement.

            After discussion, Chairman Smith moved to authorize the Executive Director to sign the Clinton Place purchase agreement, contingent upon review by LDCHA legal counsel and HUD approval.   Commissioner Gonzales seconded the motion.  The motion passed unanimously as Resolution 948.

7.         Calendar and Announcements.

            Ms. Huppee informed the Board that the LDCHA would be having an on site MTW monitoring review on the 28th of November.  This is the first time a monitoring review has been conducted by HUD staff from Washington. 

8.         Adjournment.

            There being no further items of business, Chairman Smith moved to adjourn.  Commissioner Amison seconded the motion.  The meeting was adjourned at 7:55 p.m.  

           

 

             

________________________________                                _____________________________

Chairman                                                                                  Secretary                                  Attest