MINUTES OF A REGULAR MEETING

OF THE

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

July 25, 2005                                                                                                   Edgewood Homes  

5:30 p.m.                                                                                                          Conference Room

1.         Swearing in Ceremony for Brenda O’Keefe new Resident Board Member.

            Ms. O’Keefe was sworn in as a LDCHA Resident Board Commissioner by Barbara

Huppee, Board Secretary.  Commissioner O’Keefe was appointed by Mayor Highberger July 19 to complete the unexpired term of outgoing Resident Commissioner Helfert.  

2.         Call of Roll.

            The meeting was called to order at 5:30 p. m. by Chair, Mark Gonzales.  Upon call of roll the following Commissioners answered present:

            Wes Smith

            Sonya Johnson

            Willie Amison

            Brenda O’Keefe

            Mark Gonzales  

            Also present were Charlotte Knoche, Kris Hermanson, Suzanne Kerich, Vickie Butler and Barbara Huppee, LDCHA staff members. 

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

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

4.          Receive Comments from Tenants and Public.

            There were no tenants or members of the public present.   

5.         Financial Reports.

            A.        Receive June 2005 Financial Reports.

            June brought the agency through 50% of the budget year. Total rental income remains over budget projections at 54%.  Interest income is over at 89%, other income from tenant work order damages at 54%, and income from other sources is also over at 57%.  Total income is 5% over budget projections at 55%.  Operating subsidy is under at 48% with the interim subsidy proration authorized by HUD remaining at 89%.  Total operating income is 3% over budget projections at 53%. Total administrative expenses are running 1% under projections at 49%.  Tenant Services are running over at 57%.  Youth apprentice scholarships were paid in June to Van-Go Mobile Arts.  Each scholarship was $1,000, one paid under the public housing program and two under the Section 8 program.  Costs associated with the Section 8 youths were reimbursed under the Section 8 program.  Utility expenses continue to run under budget projections except gas which continues to run over at 80%.  Total utilities are 4% over projections at 54%.  Total operating expenditures are at 47% through the budget year.  As of the June reporting period, the agency has $103,882 in income over expenses, $61,922 more than the projected amount of $41,960.

            The question of what makes income run over was answered with the explanation that the agency is required to take the September rent register times twelve when preparing its budget projections and that residents pay rent based on income.  Rent changes monthly as tenant income changes.    

            B.         Receive Section 8 2^nd Quarter Program Report.

                        As of the 2^nd quarter 2005 the program has earned $178,367.64 in earned administrative fees.   This is an aggregate total of 3,586 units under lease on the 1^st day of the month for January through June.  The program has earned $4,350 in hard-to-house fees, a total of 58 units.  Fees earned under the FSS and Homeownership Coordinator positions are $34,129.04.  Interest earned on operating reserve investments to date is $45,346.80.  The total amount collected to date under fraud recovery if $17.00.  The program gets to keep 50% of fraud recovery collections. Expenses under the Section 8 program are for those related directly 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 $201,604.97 had been spent in administrative expenses. A total of $1,252.306.73 has been paid to date for Housing Assistance Payments (HAP).  As of this reporting period the Section 8 program has earned $262,210.48 in total operating fees and paid out $201,604.97 in operating expenses. Operating reserves year-to-date are $60,605.51.

            In response to the inquiry of what constitutes hard-to-house, Ms. Huppee explained that an additional percentage of administrative fees are earned for every large family housed, that includes three bedrooms and disabled families. 

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

6.         CONSENT AGENDA

            A.        Resolution 893:  Amend the Combined Administrative Policies for the Section 8 and HOME Tenant Based Rent Assistance Programs to Broaden the Definition of Homeless in Establishing Eligibility for the City HOME Tenant Based Assistance Program.

            B.         Authorize the Chairman to Sign the Amendments to the Annual Contributions Contract to Execute for the 2005 Capital Fund Program.

            Ms. Huppee asked to remove item B for discussion.  Chairman Gonzales moved item B to the regular agenda.

            Commissioner Amison moved to approve Resolution 893, as presented.  Commissioner Smith seconded the motion.  The motion carried.  

7.         REGULAR AGENDA

            6B.       Authorize the Chairman to Sign the Amendments to the Annual Contributions Contract to Execute for the 2005 Capital Fund Program.

            Ms. Huppee explained that the agency receives an annual grant from HUD to carry out capital improvements to public housing property under the Capital Fund program.  HUD announced that it would publish the 2005 grant allotments and award documents after July 25^th. Some HUD contracts permit the executive director to be the signatory while others require the chairperson to sign.  At the time the Board agenda was prepared it was not known whose signature would be required consequently this item was placed on the Agenda.  Since then the amendment to the ACC has been received and the executive director is the signatory.  Therefore this item is removed.

            A.        Resolution 894:  Consider Authorizing $18,635 from Public Housing and Section 8 Reserves to Continue the Operations of the Resident Services Program through December 2005.

            In April the Board was informed that a major resident services grant was not refunded.  The grant, $250,000 over three years, provided staff, support services programming and case management for families and children.  It was a major support grant for the Moving to Work program. Grant funds under this program will run out in September.  A report on the program costs of the resident services department was distributed to the Board along with a detailed report on grant activities. The Board was also informed that the agency would reapply for the funds in July and if successful funds would be available in March 2006.  A funding request of $18,635 to continue the operations, programs and salaries of Resident Services through December was presented to the Board. Both public housing and Section 8 funds are available to underwrite these costs. The Executive Director explained that if the board approved the request it could expect to see this item in the 2006 budget. 

            After discussion Commissioner Smith moved to approve the funding request to continue the operations of the Resident Services program through December 2005.     Commissioner Johnson seconded the motion.  The motion passed unanimously as Resolution 895.

            B.         Receive Report on Peterson Acres Expansion Project Including Preliminary Cost.

            The board has been discussing the development of additional affordable housing and decided that Peterson Acres was the logical site for development.  In March the board authorized the executive director to engage an architect to develop a site plan and cost estimates for the expansion. Mark Abeln was hired to do the preliminary and final development plans and cost estimates.  The preliminary cost estimates and revised site plan was presented to the board.  The project consists of 8 units instead of 9 and preliminary costs are estimated at $702,881.  The funding plan includes $200,000 from the Housing Trust Fund, $150,000 from a Federal Home Loan Grant and the balance from Section 8 MYW reserves. 

                        Following discussion, Chairman Gonzales moved to approve the preliminary budget and move forward with the expansion project. Commissioner Smith seconded the motion.  The motion passed unanimously as Resolution 895.

            C.        Consider Approving $6,585 to Upgrade the Agency’s Computer Email Server and Software.  

            Ms. Huppee explained that the current email server and First Class software was purchased in 2002. The agency’s website is hosted in-house and is also supported by the same server. The warranty on the server has expired and also the contract for First Class has expired and neither support nor upgrades can be obtained for the server’s software. Also the server is running 19GB of the 20GB available, resulting in near max capacity.  To maintain email service the agency needed to look at options available including a new system.  In working with our tech support company, Microsoft Exchange provides many options that staff uses in their everyday activity. The cost to make the change from First Class over to Microsoft Exchange is $6,585 which includes components, installation and user licenses for all employees.

            Commissioner Amison moved to approve the $6,585 to upgrade the agency’s email server and software.  Chairman Gonzales seconded the motion.  The motion passed unanimously as Resolution 896.

            D.        Update Report on the Crazy Cards Project. 

            In September 2004 the Resident Services Office received $1000 grant from Target to create an after school program.  An entrepreneurial project called Crazy Cards was started by Edgewood Homes youth to create and sell writing cards.  On July 21, 2005 the youth launched their product line.  Each card is hand made, unique, and has an artist self-portrait and description of the project on the back. Seventy-five percent of revenues will be returned to program participants and 25% will be returned to the program to cover material costs.  Resident Services staff has made contact with Hobbs downtown who has expressed interest in selling the cards.  The youth will be presenting their product line to the owner and identifying additional stores in which to present their product line.  Cards were available at the meeting for review. In addition Resident Services re-applied to Target this year for funding to continue and expand this project. .

            E.         Receive Copy of Letter to City Commission on the Housing Trust Fund Recommendations.

            In May the agency made a recommendation to the City Commission for a $200,000 grant to help support the Peterson Acres project. Also included in the recommendations to the City Commission were several awards to support homeless services.  The City Commission tabled discussions pending the release of the Homeless Task Force report.  Concerned that the City Commission might reject the recommendations of the Housing Trust Fund the Executive Director met with Lawrence Habitat for Humanity and Tenants to Homeowners who also were included in the Housing Trust Fund’s recommendations.  It was decided that the three organizations would do a joint letter to the City Commission urging it to follow the Housing Trust Fund’s recommendations.  A copy of the joint letter was distributed to the Board.  The letter will be sent to the City Commission at the time the item goes back on its agenda.

8.         Calendar and Announcements.

            A.        Edgewood Homes Back-to-School Bash, August 11^th, 5-7 p.m.

            B.         Babcock Place Block Party September 23^rd at 6:00 p.m.  

 C.       The Executive Director’s Annual Evaluation will be in September.

 D.       The first week in October the Executive Director will be on vacation.

9.         Adjournment.

            There being no further items of business, Commissioner Smith moved to adjourn.  Commissioner Amison seconded the motion.   The meeting was adjourned at 6:30 p.m.

_____________________________                                 _____________________________

Chair                                                                                   Secretary                                 Attest