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HomeMy WebLinkAbout1990-06-27 EHA MINUTESI. II. III. IV. IT WAS OP THE MOTION. Ayes: Nays: ENGLEWOOD HOUSING AUTHORITY Board of Commissioners Regular Meeting June 27, 1990 CALL TO ORDER The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6:50 p.m. on Wednesday, June 27, 1990, at 3460 South Sherman Street, Englewood, Colorado, by Chairman Thomas J. Burns. Members Present: Members Absent: Also Present: STUDY SESSION Thomas J. Burns, Chairman R. J. Berlin, Vice Chairman Bradley Zieg, Commissioner Roger Koltay, Commissioner Norleen Norden, Commissioner Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary (Note: There was no Study Session at this meeting) MINUTES H Q .t .I Q !f MOVED BY VICE CHAIRMAN BERLIN TO APPROVE AS PRESENTED THE MINUTES REGULAR MEETING HELD MAY 30, 1990. COMMISSIONER ZIEG SECONDED THE Burns, Berlin, Zieg None Abstained: None Absent: v. Koltay, Norden The Chairman declared the motion carried. PRE-SCHEDULED VISITORS There were no pre-scheduled visitors at the Regular Meeting of the Englewood Housing Authority Board of Commissioners held June 27, 1990. EHA/BOC Regular Meeting 06/27/90 VI. DIRECTOR'~ REPORT Narrative Report (Attached to and made a part of these minutes as Exhibit A). The E/D reported on the Project-Based Assistance application. He stated that HUD has requested background information on the contractors who have been awarded the rehab contracts for the WAND rental units. He stated that HUD has requested additional information on the State Historic Preservation Office reviews, photographs of the structures, square footage of each structure, and assessed valuation. The E/D stated that the EHA already has, fortunately, the information HUD has requested so far, and he will be taking it down to HUD on Friday, June 29. He added that, so far, all information requested by HUD has been supplied to them within 24 hours with the exception of the contractor forms. He further stated that even though the EHA has been able to give HUD all the information they have requested, he does not foresee an end to their review of the PBA application so that rehab work may commence. The Board concurred with the E/D's frustration at the constant stream of information being requested by HUD. IT WAS MOVED BY COMMISSIONER ZIEG TO PASS RESOLUTION NO. 7, SERIES OF 1990, TO INFORM THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT, REGION VIII OFFICE IN DENVER THAT THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS ADMIRES THEIR TENACITY AND CREATIVITY IN REQUIRING MORE AND MORE INFORMATION FROM THE EHA IN ORDER TO COMPLETE THE PROCESSING OF THE PROJECT-BASED ASSISTANCE APPLICATION, BUT THE EXECUTIVE DIRECTOR OF THE EHA HAS THE FULL SUPPORT OF THE EHA BOARD OF COMMISSIONERS IN HIS EFFORTS TO SUPPLY ALL INFORMATION NEEDED IN ORDER TO GET THE PROJECT-BASED ASSISTANCE FOR THE WAND RENTAL UNITS, AND THAT THE EHA WILL NOT "GO AWAY". VICE CHAIRMAN BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Zieg None None Koltay, Norden The Chairman declared the motion carried. Vice Chairman {V/C) Berlin stated that he wanted these minutes to reflect that he vehemently opposes the use of any housing bonding capacity for the construction of the proposed baseball stadium or on anything other than housing. -2- EHA BOC Regular Meeting 06/27/90 IT WAS MOVED POINT OF THE COMMISSIONERS MOTION. Ayes: Nays: Abstained: Absent: BY COMMISSIONER ZIEG TO ENTER INTO EXECUTIVE SESSION AT THIS REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF TO DISCUSS A PERSONNEL ISSUE. V/C BERLIN SECONDED THE Burns, Berlin, Zieg None None Koltay, Norden The Chairman declared the motion carried, and the Board entered Executive Session at 7:15 p.m • . IT WAS MOVED BY V/C BERLIN TO LEAVE EXECUTIVE SESSION AT THIS POINT OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: VII. Burns, Berlin, Zieg None Nona Koltay, Norden The Chairman declared the motion carried, and the Board left Executive Session at 7:30 p.m. B. Program Reports Reviewed briefly with no comment. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS: A. Special Assessment for 2184 West Warren Avenue The EHA had received a notice of special assessment from the City of Englewood for a street improvement district affecting a property it owned at 2184 West Warren. The amount of the assessment, to pay for asphalt applied to Baltic Avenue for the first time and for curb and gutter concrete, was $1,566.51. The E/D notified the City Finance Department that per CRS 29-4-226, the EHA is exempt from payment of special assessments. -3- ERA BOC Regular Meeting 06/27/90 The City Engineer, Densel Ragland, notified the E/D that the assessment for the concrete work to construct curb and gutter, in the amount of $774.54, was still due and payable although the remainder of the assessment for new asphalt would be exempt. Ms. Ragland further informed the E/D that the ERA had been given a letter in September, 1988, via the City's mailroom mailboxes (rather than via Certified Mail as is done for all other citizens of Englewood receiving such notices). The letter stated that the curb and gutter work needed to be done; and if the ERA did not perform the work itself or hire a contractor to do the work, the City would construct the curb and gutter and bill the ERA for the work. The E/D informed the Commissioners that no such letter was received by the ERA via the City's mailroom mailboxes, and stated that this mail was frequently misrouted. V/C Berlin referred to CRS 29-4-226, which states the property of a housing authority shall be exempt from ALL local and municipal special assessments. V/C Berlin felt this included asphalt and concrete curb and gutter work. Discussion ensued regarding whether or not the assessment not paid by the ERA would be passed on to the neighbors of the unit on Warren Avenue. Commissioner Zieg expressed a caveat here to ensure that if the ERA does not pay the assessment the burden of that unpaid portion does not fall on the neighbors of the ERA's property. It was the consensus of the Commissioners present to seek a legal opinion from the ERA's legal counsel, James Wagenlander, on this matter. The legal opinion would concern the bill in the amount of $774.54 for curb and gutter concrete work and whether it was a "special assessment" (from which the ERA would be exempt) or a "reimbursement" for concrete work done by the City on behalf of the ERA. -4- EHA BOC Regular Meeting 06/27/90 HQ~AQB IT WAS MOVED BY VICE CHAIRMAN BERLIN THAT THE EXECUTIVE DIRECTOR SEEK AN OPINION FROM THE EBA'S LEGAL COUNSEL, JAMES WAGENLANDER, ON THE QUESTION OF WHETHER THE BILL FROM THE CITY OF ENGLEWOOD FOR CURB AND GOTTER CONCRETE WORK PERFORMED BY THE CITY AT 2184 WEST WARREN AVENUE WAS A SPECIAL ASSESSMENT OR A REQUEST FOR REIMBURSEMENT OF THE MONEY SPENT BY THE CITY FOR THIS WORK. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Zieg None Nona Koltay, Norden The Chairman declared the motion carried. B. Review of Offer and Bids for 3846 South Cherokee Street The Board decided in February, 1990, to obtain a single-family house at 3846 South Cherokee through the foreclosure process that had a defaulted rehab loan on it. The property was listed with Milt and Miriam Senti of Metro Brokers in Englewood. The Rehab Construction Specialist was directed to obtain bids on the rehab of this unit. While the rehab was out to bid, a potential buyer became -interested in the property. An offer was .received from the potential buyer. The offer was for $50,000 plus the potential buyer wanted the EHA to consolidate her student loan in with the mortgage and perform some extensive rehab work. After considering the costs to rehab the house, what the EHA has in the property already, the realtor's fee, plus the payoff of the student loan, the Board decided to reject the potential buyer's contract for $50,000 on 3846 South Cherokee. IT WAS MOVED BY V/C BERLIN TO REJECT THE CONTRACT OFFER OF $50,000 RECEIVED ON 3846 SOOTH CHEROKEE STREET. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Berlin, Zieg None None Koltay, Norden The Chairman declared the motion carried. -5- EHA BOC Regular Meeting 06/27/90 Next discussed were the bids received to rehab this unit. The E/D gave the Commissioners a bid tabulation sheet showing the low bid of $21,045 from Dunn Construction. He recommended deleting some items and awarding the contract to Dunn Construction in the amount of $15,145. IT WAS MOVED BY COMMISSIONER ZIEG TO SIGN THE REHAB CONTRACT WITH DUNN CONSTRUCTION AT $15,145.00 TO PERFORM THE REHAB WORK ON 3846 SOUTH CHEROKEE STREET AND TO CONTINUE TO MARKET THE UNIT. Ayes: Nays: Abstained: Absent: Burns, Berlin, Zieg None None Koltay, Norden The Chairman declared the motion carried. c. Discussion and Action on 2801 South Sherman Street The Housing Finance Specialist, Janet Grimmett, had been notified by the Arapahoe County Public Trustee's Office that 2801 South Sherman Street was sold at a Public Sale on May 30. The first mortgagee initiated the foreclosure and bid $57,750.00. This bid amount did not include delinquent 1989 taxes of $660.96 plus penalty. The attorney for the first mortgagee has inquired if the EHA is interested in purchasing their position at this time instead of waiting for its redemption period. The EHA holds a second mortgage on the property of $9,076.00. The loan was approved at 5.0% interest rate, but payment was deferred until sale, conveyance, death, or other transfer of the property, or if the house was used as a rental. a duplex, originally built in 1925, quiet residential neighborhood with The unit is located in a three-bedrooms one-bedroom and the basement. laundry room. garage. and one bath in one unit, and one bath in another unit located in The basement unit has a partial The duplex also has a detached two-car Some repairs and improvements are necessary to correct potential hazards and to make the units more livable. An estimate performed by Robb Short for a complete rehab was approximately $25,000. A market analysis indicated two duplex units sold in this area at $80,000 and $82,000 each. -6- EHA BOC Regular Meeting 06/27/90 IT WAS MOVED SOOTH SHERMAN THE MOTION. Ayes: Nays: Abstained: Absent: VII. Commissioner Zieg stated that the EHA needs to ask Miriam Senti if the EHA can sell this unit for $80,000 after necessary rehab work is performed. He further stated the EHA needs to know how long it would take to sell this unit. All commissioners present agreed to table any action on this item until the information requested was presented to them. BY COMMISSIONER ZIEG TO TABLE ANY ACTION ON REDEEMING 2801 STREET UNTIL THE JOLY, 1990, MEETING. V/C BERLIN SECONDED Burns, Berlin, Zieg None None Koltay, Norden The Chairman declared the motion carried. FINANCIAL REPORT The E/D asked for any questions on the financial reports. Commissioner Zieg asked for a general assessment on where the EHA is financially. The E/D responded that broadly the EHA is running close to budget. The E/D stated that the office building fund needs to have additional monies put into it over and above any rent paid by the EHA for rental of office space. Lengthy discussion ensued regarding allocation of office rental expenses based on each of the EHA's programs' ability to pay. Further discussion ensued regarding the indirect cost allocation of rent using the "net revenues" versus "gross revenues". Commissioner Zieg expressed his desire to have the rent allocated on the "net revenues" of each program. Commissioner Zieg further expressed his desire to have the rent retroactively charged to each program back to January 1, 1990. The E/D stated that HUD has, in some instances, not accepted the "ability to pay" method of indirect cost allocation, but has accepted the "gross revenue" method of indirect cost allocation as used in the EHA's budget for FY '90. -7- EHA BOC Regular Meeting 06/27/90 Discussion ensued regarding allocating the rental expense using table No. 1, (attached to these minutes as Page Ba) which spread this expense among all EHA programs on the basis of gross revenue, and showing that expense on all programs' books. Then, the rental expense would actually be paid according to table No. 2 which spreads Public Housing's portion to the other programs. II Q .t .I Q H IT WAS MOVED BY COMMISSIONER ZIEG TO CHARGE ALL EHA PROGRAMS RENT RETROACTIVELY FROM JANUARY 1, 1990, USING INDIRECT COST ALLOCATION METHOD NO. 3 (THE REVENUE METHOD) REGARDLESS OF THE PROGRAMS' ABILITY TO PAY. THE RENT WOULD THEN PAID TO THE OFFICE BUILDING USING INDIRECT COST ALLOCATION METHOD NO. 3 WITH ALL PROGRAMS EXCEPT PUBLIC HOUSING SHARING THE COST. PUBLIC HOUSING'S SHARE OF THE RENTAL EXPENSE WOULD BE PAID USING THE SAME ALLOCATION METHOD. V/C BERLIN SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: IX. Burns, Berlin, Zieg None None Koltay, Norden The Chairman declared the motion carried. The E/D asked if this meant each program's rent in Table 1 would be shown as the actual expense, and the difference between that and the rental amount shown in Table 2, as a donation. The E/D further asked if he could consult with Stephen Stranger, Consulting Accountant, to explain what the commissioners have proposed and ascertain the proper way to enter these transactions in the books. CONSENT AGENDA Nothing was presented for discussion under this agenda item. -8- EHA BOC Regular Meeting 06/27/90 x. XI. GENERAL DISCUSSION A. Commissioners' Choice Nothing was presented for discussion under this agenda item. B. Director's Choice Nothing was presented for discussion under this agenda item. ADJOURNMENT II Q .I 1. Q !I IT WAS MOVED BY V/C BERLIN TO ADJOURN THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD JONE 27, 1990. The Chairman declared the motion carried, and the meeting adjourned at 9:15 p.m. Max:y A.:Ryan, )lecording Secretary -9-