MINUTES OF A REGULAR MEETING

OF THE

LAWRENCE-DOUGLAS COUNTY HOUSING AUTHORITY

BOARD OF COMMISSIONERS

September 25, 2005                                                                                         Edgewood Homes    

5:30 p.m.                                                                                                          Meal Site      

1.         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

               Brenda O’Keefe

               Mark Gonzales  

               Sonya Johnson

               Willie Amison

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

2.         Approve Minutes of August 22, 2005 Board of Commissioners Meeting.

Approve Minutes of September 13, 2005 Conference Call Meeting.   

            Commissioner Smith moved to approve the minutes of the August 22 meeting as presented. Commissioner Amison seconded the motion.  The motion carried. Commissioner Amison moved to approve the minutes of the Conference Call meeting as presented.  Commissioner Johnson 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 August 2005 Financial Report.

                        Ms. Huppee reported that as of August the agency was 67% through the budget year.  Total rental income is over budget projections at 72%.  Interest income is running over at 115%.  Income from tenant work order damages is over at 73% and income from other sources is also over at 75%.   Total income is over budget projections at 73%.  Operating subsidy shows the agency being under budget projections at 64% with the interim subsidy proration authorized by HUD remaining at 89%.  Total operating income is 3% over budget projections at 70%.  Total administrative expenses are under budget projections at 65%.  Staff training is over at 113% along with travel at 80%.  Utility expenses continue to run under budget projections with the exception of gas which continues to run over at 88%.  Total utilities are 2% over budget projections at 69%.  Total operating expenditures are at 63% through the budget year.  As of this reporting period, the agency has $142,078 in income over expenses.  This is $100,118 more than the projected amount of $41,960. 

            Commissioner Johnson moved to accept the August financial report as presented.  Commissioner O’Keefe seconded the motion.  The motion carried.

            B.         Distribute August Accounting Summary.

5.         CONSENT AGENDA

            A.        Resolution 898:  Approve FFY 2006 Fair Market Rents and Adjust Payment Standards for Tenant Based Rental Assistance Programs.            

            B.         Receive Report on Agency Health Insurance Renewal.

            C.        Receive Report on FFY 2006 Initial Determination and Obligation of Public Housing Operating Subsidy.

            Chairman Gonzales moved to approve the Consent Agenda as presented.  Commissioner Smith seconded the motion.  The motion carried.

6.         PUBLIC HEARING

            A.        Conduct Public Hearing on the Lawrence-Douglas County Housing Authority 2006 Annual Plan, 2004 Capital Fund Performance and Evaluation Progress Report and 2003 Capital Fund Main and Supplemental Performance and Evaluation Closeout Reports.  

            Chairman Gonzales opened the Public Hearing at 5:40 p.m.  There were no members of the public present to comment on the Plan.  Commissioner Amison inquired about the LDCHA homeownership program.  Ms. Huppee responded by stating that Resident Services helps those with sufficient income from employment to secure conventional loans.  To date, nine individuals have purchased homes. The Chairman closed the Public Hearing and reconvened the regular meeting at 5:44 p.m.

7.         REGULAR AGENDA

            A.        Resolution 899:  Approve HUD Submission of the LDCHA 2006 Annual Plan, 2004 Capital Fund Performance and Evaluation Progress Report and 2003 Capital Fund Main and Supplemental Performance and Evaluation Closeout Reports.

            Commissioner Amison moved to approve the submission of the LDCHA Annual Plan. Commissioner O’Keefe seconded the motion. The motion carried.

            B.         Receive Report on LDCHA’s Price for Natural Gas.

            Ms. Huppee reported that the agency has been purchasing natural gas on the wholesale market directly from the Williams gas company for a number of years.  The agency’s natural gas supplier is ONEOK.  The natural gas we buy is traded on the NYMEX futures market.  The agency can either lock-in a fixed price by buying under contract for a set period of time, or ride the index by purchasing gas monthly at a somewhat lower price than is being traded on the market. The agency is currently riding the index.  The forecast for the winter season is that natural gas prices are predicted to climb significantly.  In light of Hurricane Katrina and Rita, which will have an additional effect on the price of natural gas, the executive director consulted with the Board Chairman and locked in 50% of the agency future purchases for the months of December through February.  The price is $13.21/MMBTU.  The price is high but will provide some protection if the prices go higher and by not fully locking in there will be some protection if the prices drop. 

            C.        Resolution 900:  Approve Revised Budget for Peterson Acres Expansion.

            Last month the Board approved a $788,669 budget for the Peterson Acres expansion project.  Immediately following Hurricane Katrina the agency was contacted by its project architect and told to expect a 20-25% increase in construction costs. This would increase costs to about $969,600.  This increased budget was submitted in the Federal Home Loan Bank application.  The funding sources proposed for this project are $200,00 from the city which has already been awarded, a $200,000 grant from the Federal Home Loan Bank if awarded, and the balance from agency reserves. That balance would be $569,000.  Ms. Huppee reported that the Federal Home Loan Bank application is not likely to score the needed points for funding.  This then would require an agency commitment of as much as $768,000. 

            After discussions Commissioner Smith moved to approve the revised budget for the Peterson Acres expansion project.  Commissioner Johnson seconded the motion. The motion carried.

            D.        Resolution 901:  Approve Federal Home Loan Bank Application.

            The Board is aware that the agency’s funding plan for the Peterson Acres expansion project includes the possibility of a $200,000 Federal Home Loan Bank grant.  If approved the application will be sent September 27. It was sent for a technical review September 14^th.  Based on the review it is likely that the application will not be scored high enough to be funded based on the categories to be scored. For instance it is not a rural or homeless project and therefore will not be able to score points in those categories.  The review comments also included that the per unit subsidy request is higher than likely to be funded and that the project can support debt and does not need the grant. 

            After discussion which included the possibility of lowering the grant request to $150,000 the Board recommended that the application be submitted.  Commissioner Smith moved to approve Resolution 901, submit the Federal Home Loan Bank Application as presented.  Commissioner Johnson seconded the motion.  The motion carried.      

            E.         Discuss Granting Preference to Public Housing Residents Displaced by Hurricane Katrina and Using Section 8 Reserves for Assistance.

            Ms. Huppee reported that HUD has approved additional funding for housing authorities to serve public housing residents displaced by Katrina.  Housing Authorities may serve and be reimbursed for hurricane displaced public housing/Section 8 residents not previously receiving housing assistance. Ms. Huppee stated that if the board wanted to establish a fund that the amount be limited. The LDCHA spends between $4-7 thousand per household per year in Section 8 rent subsidies.  

            During discussion the board chose not to approve an established natural disaster policy but to approve a one-time preference policy specific to Katrina and Rita. Chairman Gonzales moved to approve the following criteria for a one-time 90-day preference on the waiting list for 10 displaced Katrina and Rita hurricane households who were not receiving assistance at the time of the hurricane, as Resolution 902.  Resolution 902 includes the following criteria: 1) loss of home due to hurricane Katrina or Rita, 2) required FEMA registration, 3) income eligibility, 4) no history of violent criminal activity nor being a sexual predator, 5) standard federal regulation eligibility, 6) suspension of documentation of social security card and birth certificates, 7) suspension of MTW for six months, 8) once housed eligible for transfer list, and 9) monthly reporting on status and review after 90 days. Commissioner Smith seconded Resolution 902.  The motion carried.      

8.         Calendar and Announcements.

            A.        Executive Director’s Vacation 09/28 - 10/06.

            B.         Check Signing Dates:  09/28 for 09/30 payroll; 10/04 for 10/01 accounts payable.

            C.        Clinton Place.   

9.         EXECUTIVE SESSION

            A.        Chairman Gonzales recessed into Executive Session at 7: 15 p.m. to conduct the Executive Director’s annual performance review.  The Board reconvened into Regular Session at 7:25 p.m.  The Board gave the Executive Director an outstanding rating and awarded a 2.5% merit pay raise. 

10.       Adjournment.

            There being no further items of business, Commissioner Amison moved to adjourn.  Commissioner Johnson seconded the motion.   The meeting was adjourned at 7:35 p.m.

_____________________________                                 _____________________________

Chair                                                                                   Secretary                                 Attest