Ann Arbor Separation Agreement - PDF

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					                            ANN ARBOR HOUSING COMMISSION
                               REGULAR BOARD MEETING
                                    January 17, 2007

The meeting took place in the AAHC Community Room, 727 Miller, Ann Arbor, MI 48103. Chairperson
French convened the meeting at 6:00 p.m.

ROLL CALL: Commissioners present: Larry French, James Jackson, David Parent, Deborah Gibson,
           and Alan Levy. Staff Present: Elizabeth Lindsley, Weneshia Brand, and Charles Pear
           Guest: Stephen Kunselman, Carol Schuler and Jimmy Williams


        Commissioner Jackson moved to approve the Agenda and Commissioner Parent supported. The
        Agenda was approved 4-0.


        A. Resident Organizations – None.

        B. Others Requesting to Speak – Kunselman: excited to be here and purpose is to obtain a
           thorough understanding of the Housing Commission operations.


        A. Regular Board Meeting – December 20, 2006. Commissioner Parent moved,
           Commissioner Gibson supported, to approve the minutes of December 20, 2006, and the
           motion passed unanimously, 4-0.


        A. Resolutions.
              1. FY 07-22: To Approve PH TAR Write-Off. Commissioner Jackson moved and
                  Commissioner Parent seconded Resolution FY07-22. French: could you explain
                  what the $2,000 cost under the column “Other Charges” represent. Lindsley: that cost
                  was incurred from a previous tenant’s damage to, two units; this amount was derived
                  by an agreement with Legal Services. AAHC doesn’t expect to collect from the
                  tenant. The resolution passed unanimously, 4-0.

Ann Arbor Housing Commission                                                         March 22, 2007
Regular Board Meeting - Minutes                                                                Page 1
                2. FY 07-23: To Approve Organizational Restructuring. Commissioner Parent
                   moved and Commissioner Levy seconded Resolution FY07-23. French: asked for
                   perspective of the resolution. Lindsley: Capital Improvement funds have been cut for
                   the last five years and additionally anticipates a cut of 10% this year. HUD has
                   mandated all PHA with more than 250 units convert to the Asset Management
                   Model. AAHC has determined two projects; the asset Management proposes that
                   each project is financially self-sustaining reporting financial entities. S8 has been
                   operating consistently with temporary staff and isn’t performing well. PH requires
                   new positions to meet HUD mandate. A meeting was held with Parent and Gibson to
                   discuss the new model and the best way to conduct business. An additional meeting
                   was held with Jackson and Levy to discuss new configurations and organizational
                   restructuring. A meeting with HR was held to discuss what options are available for
                   restructuring. It is proposed to add two positions in PH and one position in S8,
                   redesign job descriptions, and reclassify salary ranges; it is anticipated that more
                   funding will be allocated in FY08. French: HUD has mandated conversion of Asset
                   Mgt.; with the exception of Miller Manor and Baker Commons, no site is large
                   enough to be financially self-sustaining. Lindsley: or large enough to have a property
                   manager. French: HUD has mandated that AAHC reconfigure the organization,
                   operate with reduced funding, and with reduced rents. A combination of these faults
                   causes a dilemma to operate appropriately and forces the Commission to decide the
                   best ways to conduct affairs. Lindsley: Funding is provided on a calendar year;
                   operating and reporting is completed on a fiscal therefore, only six months of funding
                   is known. If the Commission reconfigured the organization, added three positions,
                   and continued with current salary rates, the Commission will be at a loss of over
                   $240K. Richard Martonchik assisted with benchmarking to establish salary ranges. If
                   the Commission reconfigured the organization, added three positions, and reclassified
                   salary ranges: the Commission will be at a loss of $60K. Section 8 would profit at
                   $25k and Low Rent in a deficit. Section 8 New Construction profits are used
                   proactively with Board approval. The model of Asset Management will change staff
                   roles and business operations. French: what is the proposed timeline? Lindsley:
                   configuration must be completed by July 1, 2007. French: is there a deadline of FY
                   08? Lindsley: yes, July 1, 2007 we must report as separate financial entities. Parent:
                   how would the physical reorganization occur in regards to inventory and vehicles.
                   Lindsley: Baker Commons will operate as the administrative office for the Eastside
                   sites and Miller Manor will service the Westside sites. Parent: how would the
                   maintenance of inventory be addressed? Lindsley: possibly some maintained in the
                   basement of Baker Commons; Miller Manor has a warehouse. French: will the
                   inventory be split. Lindsley: yes. Levy: this is a required model by HUD; we must
                   maintain operations with declining funding, un-funded mandates, and deteriorating
                   structures. He expresses his concern that the Commission’s model doesn’t have a
                   person to be a facilities manager. It is suggested that communication to staff is direct.
                   Parent: a timeline should be created to communicate change to residents; open
                   forums, newsletters, and meet and greet. Parent: adding a new position to Section 8
                   is to improve performance? Lindsley: yes, Section 8 hasn’t passed SEMAP in three
                   years and assumes new computer software will improve performance. Parent: would
                   the position of Clerk Waitlist be centrally located? Lindsley: yes, this position is
                   HUD approved. Levy: what other restructuring models were considered? Lindsley:
                   three options were considered; separation for the City of Ann Arbor, contract out to a
                   property management company, or layoff staff and hire from an employment agency.
                   Gibson: he proposed model of asset management cease to put the public housing at
                   the same business level as private housing; this ignores a couple of important factors

Ann Arbor Housing Commission                                                              March 22, 2007
Regular Board Meeting - Minutes                                                                     Page 2
                    with respect to the resident and the services provide by the hard working PH staff. In
                    the private housing market it is assumed that residents have stable income and
                    management has the option to raise the rent to meet operation cost. Reality is that the
                    resident in public housing have declining income; that is declining faster than the
                    Commission’s income with respect to employment opportunity etc. This is due to a
                    number of issues; the evidence with respect to revenues from resident, will carryout
                    that per capita income isn’t aligned with Ann Arbor cost of living. People who live in
                    PH are vulnerable, if the model is to be profitable in the new structure, the obvious
                    answer is to lease to people with more income; this doesn’t speak to the needs of the
                    resident. A large percentage of residents have SSI and SS as a source of income;
                    these residents are the very low income. What this means primarily is that there are
                    very few options. The initial mission of PH as stated in 1937, when a lot of people
                    were out of work, was to provide affordable housing. It was obvious then, that
                    privatization didn’t work, otherwise people would have some place to live and it is
                    obvious now that privatization hasn’t worked. Privatization is not the answer, as you
                    look around at the new construction throughout A2, it is not for low-income housing.
                    This places residents who want to stay, need to stay and like to stay in PH at more
                    risk. I want to point out, while the idea of increasing revenue and matching revenue is
                    the ideal revenue model, that it doesn’t meet the need of the residents or the people
                    on the waiting list. Jackson: the Commission and Board member are struggling to
                    maintain the Housing Commission and appreciates the work and efforts made by all
                    parties that have taken part in this difficult situation. Levy: suggest that Board
                    members look for ways to increase funding/revenue and request that Lindsley
                    provide a copy of HUD funding formula. Schuler: HR and AFSCME have yet to
                    discuss and plan for the restructure and options for staff. Open Public Commentary:
                    Twining: when would staff know more information? Schuler: Friday, at staff
                    meeting. Lindsley: mostly this will be a discussion. Schuler: the most important is to
                    satisfy contractual processes. Lindsley: staff will incur a 17-19% salary reduction; the
                    Executive Director will take a more substantial salary reduction, but each individual
                    must make their one decision. Williams: there is no comment, but the lack of
                    commenting doesn’t mean an approval from the AFSCME union prospective. The
                    resolution passed unanimously, 4-0.

        B. Discussion Items.

                1. Maintenance Update – Charles Pear. French: what is the status of the fire
                   unit? Pear: not for certain, more repairs have been completed; it is expected
                   the kitchen cabinets replacement will begin next; will check status. French:
                   what size unit is this? Pear: one bedroom. French: is there an occupancy
                   demand? Lindsley: a client has accepted the unit; availability is anticipated the
                   first week of February, but permit clearing is difficult due to extended holiday
                   weekends for city inspectors. French: explain the difference between the
                   inspections as reported for December. Lindsley: no unit inspections were
                   completed for December; but all site and system inspections were completed
                   for December. Pear: UPCS inspections are complete; this is a summary report
                   for HUD that reflects major repairs. Parent: will this report be included in our
                   Capital Plan? Pear: only major repairs are included in this report such as new
                   roofs. Parent: has Green Baxter received a new roof? Pear: two rows got new
                   roofs, but the other two need new roofs, as well. Lindsley: some repairs will

Ann Arbor Housing Commission                                                              March 22, 2007
Regular Board Meeting - Minutes                                                                     Page 3
                    be included in CFP and identified in the 5 yr plan; some repairs will be given
                    work orders and completed. Parent: is there a checklist used? Pear: yes, a
                    five-page inspection form. Parent: will the report be filed for submission?
                    Lindsley: yes. Gibson: what is the status of the heating system at Miller
                    Manor? Pear: staff has progressed to the fifth floor and each unit receives
                    repairs; each unit has individual thermostats. Parent: are unit repairs
                    completed as a result of resident call or chronologically? Pear: repairs are
                    completed by resident call. Gibson: is there a date scheduled for upcoming
                    inspections? Pear: Miller Manor is scheduled for March.

                2. Agency Plan Possible Policy Change Discussion – Elizabeth Lindsley.
                   French: how is the restructuring related to the agency plan? Lindsley: it isn’t
                   related; the agency plan doesn’t address reconfiguration. The targeting of the
                   broader income base consumer should be considered. The board should
                   consider developing a preference for this consumer base and the disposition
                   sale of property. Parent: define the target? Lindsley: the target is the
                   preference created for the higher income consumer. Parent: this will require
                   more advertising. Lindsley: yes. French: when is the deadline for the agency
                   plan? Lindsley: completed by the February Board Meeting. French
                   commented, email attachments for revised agency plan and to sell properties.

        A. Discussion Items.
            Housekeeping Standards – Weneshia Brand. French: define the meaning of the check
            marks on the schedule provided. Brand: this is an actual reporting checklist for the
            inspections conducted on January 5, 2007; the check marks indicate violations. Parent: were
            residents notified of their violations. Brand: residents were sent letters that concluded an
            overall finding and informed them of upcoming clean-ups and cost related to removal fees.
            Parent, inquired of the violations to a particular unit as opposed to that unit’s neighbor.
            Brand, explained that the disorder of the unit assumed one unit owned the items: not the
            neighboring unit. French: asked if the unit contained perishable items provided by Food
            Gathers and the process of distribution. Brand: explains the unit did contain perishable and
            nonperishable items: then explained the distribution of Food Gathers. French: suggests that
            the Commission has more control of the distribution process. French: asked if the violations
            could contribute to an eviction. Lindsley: yes, but the resident already has an agreement that
            upon two late payments of rent, the resident will receive an immediate writ/eviction.

        A. Asset Management –Parent/Lindsley. none
        B. Finance – French. none
        C. Personnel – Jackson/Levy. none
        A. Executive Director – French mentions an error on the report. Lindsley replies that error is
           noted. Parent inquires of South Maple. Lindsley: there are three scheduled move-outs, Parks
           and Rec., has provided a good proposal for the playground area, and the community has been

Ann Arbor Housing Commission                                                            March 22, 2007
Regular Board Meeting - Minutes                                                                   Page 4
            actively participating in events and meetings. Lindsley: mentions that Hikone has continued
            to have sewer backups and explains the cause. French: suggests that a meeting is held with
            Hikone residents and that resident may incur cost if problem persist.

        B. Housing Programs Manager on Occupancy Issues – Included in Board packet.
        C. Finance Manager – Included in Board packet.
        D. Maintenance Supervisor – Included in Board packet.
        E. Security Report – Included in Board packet.

        The meeting adjourned at 8:17 p.m.

        Commissioner Larry French, Chairperson                 Elizabeth Lindsley, Executive Director

Ann Arbor Housing Commission                                                          March 22, 2007
Regular Board Meeting - Minutes                                                                 Page 5

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