MINUTES OF A REGULAR MEETING

OF THE

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

June 27, 2005                                                                                                  Babcock Place   

5:30 p.m.                                                                                                         Meal Site  

1.         Call of Roll.

            The meeting was called to order at 6:05 p. m. by Vice chair Willie Amison.  Upon call of roll the following Commissioners answered present:

            Wes Smith

            Sonya Johnson

            Willie Amison  

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

2.         Approve Minutes of May 23, 2005 Board of Commissioners Meeting.

            Commissioner Johnson moved to approve the minutes as presented. Commissioner Smith seconded the motion.  The motion carried.

3.          Receive Comments from Tenants and Public.

            There were no tenants or members of the public present.   

4.         Receive Financial Reports.

            A.        Receive May 2005 Financial Reports.

             Ms. Huppee reported that as of May the agency was at 42% through the budget year.  Total rental income remains over budget projections at 45%.  Interest income is running over at 76%, other income from tenant work order damages is over at 46% and income from other sources also over at 46%. Total income is 4% over budget projections at 46%.  Operating subsidy shows 2% under at 40%.  The interim subsidy proration authorized by HUD remains at 89%.  Total operating income is 2% over budget projections at 44%.   On the expense side, total administrative expenses run 2% under projections at 40%.  Utilities continue to run under budget with the exception of gas being over at 73% which is seasonal. Maintenance materials continue to run over budget projections at 60%.  Part of this is due to the rising cost of gasoline prices to fuel maintenance vehicles.  Effective next month the agency will begin to purchase fuel through the City of Lawrence’s bulk gasoline plant.   Total operating expenditures are at 39% through the budget year.  As of this reporting period, the agency shows $93,135 in income over expenses.  This is $51,175 more than the projected amount of $41,960.

            Commissioner Smith moved to accept the May financial reports as presented.  Commissioner Johnson seconded the motion.  The motion carried.  

            5.         CONSENT AGENDA

            A.        Resolution 891:  Approve Security Policy and Procedures for Confidential Documents and Data.

            Commissioner Johnson moved to approve the Consent Agenda, Resolution 891, as presented.  Commissioner Smith seconded the motion.  The motion carried.  

6.         REGULAR AGENDA

            A.        Review Check Signing Policy.

            Ms. Huppee explained that the agency’s check signing policy requires two signatures on each check, the executive director’s live signature and chairman’s facsimile signature on payroll and accounts payable and their two facsimile signatures on Section 8 HAP payments to landlords. The agency has a very elaborate system of checks and balances in its fiscal controls with a very distinct paper trail.  From time-to-time the executive director is not present to sign checks.  When this occurs arrangements are made ahead of time for the vice chair or another board member to sign checks.  Joe Helfert was an alternate signatory to the checks. Joe was vice chair for several terms, and because he was retired and lived at Babcock Place it was convenient for him to sign checks. With his resignation he has to be removed from the accounts and another board member identified.  The bank requires new signature cards on everyone with this change.  The executive director and the vice chair will both be unavailable to sign checks on the 7^th, the next payroll run. The board discussed using a double facsimile; but decided to the greatest extend possible to maintain the practices that the agency has in place unless it was deemed absolutely necessary. Commissioner Smith stated that he would be available to sign payroll. After discussion Commissioner Amison moved to remove Joe Helfert’s name from the bank signature cards and to add Commissioner Smith and Commissioner Johnson so that the signature cards reflect the signatures of the chairman, the vice chairman, secretary, Wes Smith and Sonya Johnson. Commissioner Johnson seconded the motion as Resolution 892.  The motion carried.               

            B.        Receive Report on Possible Consultant Study of Deregulating LDCHA from HUD.

            In March the executive director spoke with HUD Assistant Secretary Milan Ozdinec who in charge of the MTW demonstration programs. In the course of that discussion Mr. Ozdinec offered the LDCHA the opportunity to possibly be released from its public housing Annual Contributions Contract with HUD. This would free the agency of all HUD regulations but also require the agency to forego its federal funding which totals about $1 million a year.  The board discussed this and asked the executive director to meet with city officials to get their reactions. The city’s general attitude was that “if it’s not broke why fix it” and expressed concern that the agency might need to request city funds if it could not make up the lost revenue.  It was also suggested that the agency hire a consulting firm to do a cost-benefit analysis of the proposal to determine its likelihood of being able to make the necessary revenue.  Board members were in agreement and asked the executive director to develop a request for proposals in order to see what such a study would cost.  An RFP was developed and a number of consulting firms that work with public housing agencies were contacted.  Only one group responded, KenMar.  KenMar stated that on the basis of the RFP and without further meetings they estimated that a reputable study would cost between $25,000 and $40,000.

            During board discussion of whether or not to authorize the executive director to proceed with the study at such a high cost to the agency, Commissioner Smith moved to table any action until a full board including the new appointee was present. Commissioner Johnson seconded the motion.  The motion carried.    

            C.        Discuss Recommendations for Appointment to Fill Resident Commissioner Position.

            Ms. Huppee explained that since 1999 federal regulations have required that a resident be appointed to the housing authority board of commissioners.  Joe Helfert was the agency’s first resident commissioner.  His term expires 2008.  With his resignation last month a resident from one of the agency’s housing programs must be appointed by the mayor to fill his unexpired term.  In late May all 1100 residents were mailed notices of the vacancy, position description and applications.  Six people applied.  The applications were screened by staff and two were eliminated as they were not residents in good standing.  The remaining four were forwarded to the Resident Advisory Council who reviewed them and recommended one person, Brenda O’Keefe.  Brenda is an SRS employee and has been a scattered site resident since February.  The executive director met with Ms. O’Keefe June 23^rd about the position and feels that she would be qualified to serve as a housing commissioner. 

            The board was in agreement and authorized the executive director to recommend Ms. O’Keefe to the Mayor for appointment.

            Ms. Huppee added that Commissioner Johnson was re-appointed to the Board for a four-year term.  She was completing the unexpired term of Todd Crenshaw which ended June 2005.  Ms. O’Keefe will complete the unexpired term of Joe Helfert which ends June 2008. 

            D.        Update Report on Housing Trust Fund Recommendations. 

            The recommendations of the Housing Trust Fund Board, which include an award of $200, 00 for the LDCHA’s Peterson’s Acres expansion project, were presented to the City Commission at its May 31 meeting.  The recommendations also include funding for some homeless services.  The city commission voted to table action on the recommendations until receipt of the Homeless Task Force report.  The Task Force made its presentation to the city commissioners at a study session last week with a budget of $4.7 million dollars.  They committed to funding $166,000 worth of recommendations for the homeless for case management services. They did not state what they were going to do with the Housing Trust Fund recommendations.  There is no requirement for them to put it back on the agenda as they are not bound by the Housing Trust Fund recommendations.  The executive director met with Tenants to Homeowners and Habitat for Humanity and discussed writing a joint letter asking the city commission to follow through with the recommendations of the Housing Trust Fund Board and the reasons why.

            After discussion, Commissioner Smith approved the writing of a joint letter with Tenants to Homeowners and Habitat for Humanity to the city commission requesting it to follow through with their Housing Trust Fund awards.  Commissioner Johnson seconded the motion.  The motion carried.

            E.         Receive Report on Property Discussions with Cottonwood Inc. and the City.

             The board has been informed of the properties owned by Cottonwood and the five-acre plot owned by the city that may be available for the LDCHA to purchase or develop. There are two issues with the acquisition of the Cottonwood properties that are new that the agency did not know. First, federal law requires that these properties be owned by a single entity non-profit organization. That would mean the LDCHA would have to form a non-profit corporation with the only purpose of owning the property.  Secondly, if the agency were to acquire it would it be able to use it for the purpose of housing kids aging out of foster care.  Each bedroom in the two congregate facilities carry Section 8 subsidy and would have to be rented under single room occupancy with a separate lease and housing assistance contract; the problem then being the number of rooms that would be continually under lease. With regard to use of this property the biggest issue would be how the agency could fund staffing and support services. The city property also has some complicating factors.  Access cannot be granted from Bob Billings Parkway because the K10 exchange will be built there. Access to the property would have to be across property owned by Bev Billings which would result in increased development costs. Also City Commissioner Amyx has voiced his opposition to the city giving up this site.

            During discussion the major emphasis was on the Cottonwood properties and pursuing support service agencies.  Commissioner Johnson stated that a program should first be in place before moving forward to purchase the property. She mentioned also to work with SRS in order to contact kids six months before they age out of foster care which would lesser the turnover aspect.  With regard to the city property, they agreed that Bev Billings should be contacted about access through her property. At this point the agency is in the exploratory stage

7.         Calendar and Announcements.

            Ms. Huppee informed the board that she will be out of the office July 5^th through the 7^th and in Rhode Island the 14^th and 15^th and back in the office July 18^th.  

8.         Adjournment.

            There being no further items of business, Commissioner Amison moved to adjourn.  Commissioner Smith seconded the motion.   The meeting was adjourned at 7:20 p.m.

_____________________________                                 _____________________________

Chair                                                                                  Secretary                                 Attest