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HomeMy WebLinkAboutHousing Catalyst - Minutes - 01/19/19990 January 19,1999 BOARD OF COMMISSIONERS OF THE FORT COLLINS HOUSING AUTHORITY A meeting of the Board of Commissioners of the Fort Collins Housing Authority was held on Tuesday, January 19, 1999, at 7:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following Commissioners: Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Staff Members Present: Fischbach, Krajicek, Roy. Minutes Approved Commissioner Smith made a motion, seconded by Commissioner Wanner, to approve the minutes of the regular meeting of December 16, 1998 and the adjourned meetings of December 8, 1998 and December 22,1998. The vote on the motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Resolution No. 11 AmendinE the Personnel Policies Employee Handbook Adopted The following is staff s memorandum on this item. "Executive Summary On December 18, 1996, the Board of Commissioners for the Fort Collins Housing Authority approved its personnel policies. Since that time, few, if any, changes have been made to these policies. At this time, staff believes that several changes are warranted to improve future amendments to the policies and to improve the employee grievance process. Resolution No. 11 enables future changes to the personnel policies to be approved by both the Board of Commissioners and administratively by the Executive Director. This makes the approval process similar to that of the City of Fort Collins approach. Additionally, Resolution No. 11 improves the process for employee grievances, including the establishment of a pre -disciplinary meeting, issue resolution process, and name clearing process. Finally, this Resolution outlines the role of the City of Fort Collins Human Resource Department in employee disciplinary actions at the Fort Collins Housing Authority." January 19, 1999 Assistant City Manager Atteberry gave background on the item and explained the proposed personnel policies, which are consistent with the City's personnel policies. He noted that the policies have been discussed with Housing Authority staff, and no significant concerns were heard. Commissioner Smith asked about the process to be followed for any substantive changes to the policies and suggested an amendment at a future time to ensure that such changes are done within a public process. Commissioner Bertschy made a motion, seconded by Commissioner Kneeland, to adopt Resolution No. 11. Commissioner Smith asked if the human resource representative would be part of the Housing Authority staff. Commissioner Kneeland stated she would support the motion because these policies would be consistent with City policies. The vote on Commissioner Bertschy's motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Resolution No. 12 Authorizing the Execution of a Separation and General Release Agreement Terminating the Employment of Executive Director Rochelle Stephens, Adopted. The following is staff s memorandum on this item. "Executive Summary Aproposed Separation and General Release Agreement has been reached with Rochelle Stephens, the executive director of the Housing Authority. Under the Agreement, Ms. Stephens' employment with the Authority would be terminated as of February 28, 1999. She would remain on paid administrative leave in the interim. BACKGROUND: In February of 1993 the Housing Authority entered into an Employment Agreement with Rochelle Stephens, pursuant to which the Authority retained the services ofMs. Stephens as executive director of the Authority and secretary to the Board of Commissioners. Under the terms of the Agreement, January 19, 1999 Ms. Stephens services were to continue to February 28, 1994, and for successive one year periods thereafter unless the Agreement was terminated, either in accordance with the provisions of the Agreement, or by subsequent agreement of the parties. Following a recentfederal district court judgment against the Housing Authority, Ms. Stephens and one of its former Commissioners, the City Council appointed itself to serve as the new Board of Commissioners ofthe Authority and also appointed City Manager John Fischbach to serve as acting executive director and as temporary acting secretary to the Board. The Resolution appointing the City Manager provides that his services with the Housing A uthority are to continue until such time, if at all, that the current executive director and secretary to the Board is returned from administrative leave for the Board or a different executive director and secretary is appointed by the Board. Ms. Stephens has been on paid administrative leave since the federal district court judgment was entered and the City Manager is recommending that her contract with the Authority not be renewed beyond its present expiration date of February 28, 1999. Therefore, a proposed Agreement severing her employment with the Authority has been negotiated and executed by Ms. Stephens. Under the terms ofthe Agreement, Ms. Stephens' employment would be terminated as of February 28, 1999, and, in consideration ofher on -going receipt ofemployment compensation until that date, Ms. Stephens has agreed to release the Authorityfrom any claims she might have relating to her employment, and, in particular, any claim that the Authority indemnify her for the punitive damages assessed against her in the above -referenced court case. The Agreement also provides that, to the extent that the Housing Authority appeals the judgment against the Housing Authority, it will also pay Ms. Stephens' reasonable attorney's fees and costs related to any appeal she may file on her own behalf." City Manager Fischbach stated that this Resolution would impose an end to Ms. Stephens' contract as of February 28 and that this termination of employment had been discussed with Ms. Stephens. Commissioner Smith made a motion, seconded by Commissioner Wanner, to adopt Resolution No. 12. Commissioner Kneeland thanked Ms. Stephens for her years of dedication to affordable housing in Fort Collins. The vote on Commissioner Smith's motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Citizen Participation City Manager Fischbach stated that although the published agenda does not list an opportunity for Citizen Participation for items not on the agenda, the Board's adopted procedures call for a Citizen Participation opportunity. Ravenna Windwalker, Housing Authority tenant and Housing Authority employee, asked for clarification regarding the status of confidentiality and disclosure of information regarding Housing Authority employees. She spoke regarding the publication in the Coloradoan of salary information for Housing Authority tenants and employees without any notice to them that this information would be disclosed. She stated that it was her understanding, with regard to the Via Lopez project, that until the closing of the sales, the information disclosed in the newspaper would not be public knowledge. She asked that Council review a packet of information that she submitted. Citizen Participation Follow-up Commissioner Kneeland requested that staffprepare anoutline ofthe entire application and selection process for the Via Lopez project. She stated that if information must be open to the public, the applicant should be made aware of the disclosure requirements. City Manager Fischbach stated that staff will prepare a written response to Ms. Windwalker's allegations. Commissioner Byrne commended Ms. Windwalker for coming forward to speak to the Council about these issues. Commissioner Smith thanked Ms. Windwalker for speaking. Commissioner Kneeland clarified that her request for information is intended to go beyond the allegations presented and to look at the entire process. Resolution No. 13 Authorizing the Board's Chairperson and Secretary to Execute a Promissory Note Payable to, and a Deed of Trust for the Benefit of, the City of Fort Collins. Adopted. The following is staffs memorandum on this item. "Executive Summary The Fort Collins Housing Authority ("the Authority') is currently involved in litigation filed in the United States District Court for the District of Colorado, known as Carter-DeFrancesco v. Housing Authority of the City of Fort Collins, et al. (the Lawsuit'). A judgment has been entered in the Lawsuit against the Authority, the previous executive director and one of its former commissioners. As a result, the Authority has incurred extraordinary expenses related to the Lawsuit, including attorneys fees and costs. The Authority has filed a notice of appeal in the Lawsuit and may pursue the appeal, thereby incurring additional attorneysfees and costs. In addition, in order to ensure the ongoing operations of the Authority, it may be necessary for the Authority to file Chapter 9 bankruptcy proceedings, requiring the services of special legal counsel. It is anticipated that the current operating revenues are insufficient to cover the attorneysfees and costs previously incurred in the Lawsuit, and those that it may incur in the future with regard to the Lawsuit and in any bankruptcy action. On December 15, 1998, the Council ofthe City of Fort Collins ("the Council') adopted Resolution 98-172 ("the Council 's Resolution'), in which it approves the expenditure of Cityfunds to provide assistance to the Authority to pay its attorneys fees and costs related to the Lawsuit and any additional attorneysfees and costs for special legal counsel. The Councel's Resolution authorizes the City Manager to spend up to $104, 000.00 in 1998 and $100, 000.00 in 1999 to pay these legal fees and costs. Counsel's Resolution also directs the City Manager to investigate the legal and financial feasibility ofhaving the Authority repay the City for the Authority's legal fees and related costs advanced by the City, and to report back to the Council concerning such repayment. At the end of 1998 the City advanced a total of $17, 760 in the payment ofthe Authority's attorneys fees and costs related to the Lawsuit and the hiring ofspecial legal counsel related to bankruptcy. Under the Council 's Resolution, the City Manager currently has available to him $100, 000 to spend in 1999 for the Authority's legal fees and costs. The City Manager has decided that it is legally and financially feasible for the City's advances to the Authority to be considered as a loan. Therefore, the City Manager has presented to the Authority for its consideration a Promissory Note in the amount of $117, 760. (A copy ofthe Promissory Note is attached as Exhibit 'A" to the Resolution.) Under the terms ofthe Promissory Note, the Authority would be authorized to seek advances of up to $117, 760.00 from the Cityfor payment of its attorneysfees and costs related to the Lawsuit and to any bankruptcy action. The City Manager is also asking as a condition of this loan that the Promissory Note be secured by a Deed of Trust. (A copy ofthe Deed of Trust is attached as Exhibit "B"to the Resolution.) The Deed of Trust encumbers certain real properties currently owned by the Authority commonly known as 2217 West Elizabeth, 1400 Riverside Drive, 1204-06 and 1208-10 Castlerock Drive, and 517% East Prospect Road. This Resolution, if approved by the Board, will help ensure the Authority's ongoing operations and ensure that it will have the financial capability to pursue any appeal of the Lawsuit and any needed bankruptcy proceedings. " City Attorney Roy explained the proposed Resolution and the purpose of the promissory note and deed of trust. Commissioner Wanner made a motion, seconded by Commissioner Bertschy, to adopt Resolution No. 13. The vote on the motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Executive Session Authorized Commissioner Smith made a motion, seconded by Commissioner Mason, to adjourn into Executive Session to discuss legal issues. The vote on the motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. (**Secretary's Note: The meeting adjourned into Executive Session at 7:25 p.m. and reconvened following the Executive Session at 8:35 p.m.) Resolution No. 14 Authorizing the Filing of a Petition for Bankruptcy. Adopted City Attorney Roy read proposed Resolution No. 14 in full. Commissioner Smith made a motion, seconded by Commissioner Wanner, to adopt Resolution No. 14. Ravenna Windwalker, Housing Authority tenant and employee, asked what the impact of bankruptcy will be on Housing Authority employees. City Attorney Roy stated that special counsel has been retained to address this and other issues relating to bankruptcy. He stated that given the size of the judgment and the assets of the Housing Authority, the filing of bankruptcy may be one of the few ways the Authority might be able to stay in operation, continue to pay its employees, and provide affordable housing pending an appeal. Commissioner Byrne stated that there is no other alternative given the size of the judgment. The vote on Commissioner Smith's motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED 0 Resolution No. 15 Authorizing an Offer of Settlement Related to Civil Action No. 97-K-1995 and Subsequent Actions Related to Said Litigation Adopted City Manager Fischbach read the proposed Resolution in full. City Attorney spoke regarding the timing of the offer of settlement. He stated that if this Resolution is approved, City Council will have to consider an Ordinance appropriating the necessary monies to fund this offer of settlement. Commissioner Wanner made a motion, seconded by Commissioner Smith, to adopt Resolution No. 15. Commissioner Wanner spoke regarding the difficulty of the situation and stated that the Board has worked diligently and honestly on the problem. He stated that this offer constitutes the Board's best offer, that the terms of the agreement are firm and that this is no longer, from the Board's standpoint, a matter for negotiation. i Commissioner Smith thanked the tenants for their forbearance during a lengthy and difficult process and spoke regarding the intent to protect the interests of the Authority's affordable housing clients. Commissioner Byrne emphasized the responsibility of the Board to employees. Mayor Azari stated that this is a serious step for the Housing Authority and the City and that the goal is to place the Housing Authority in a position that will allow it to perform its duties. The vote on Commissioner Warner's motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Other Business Commissioner Bertschy stated that he has received a request from CSU housing that the Housing Authority look at the Northridge situation with regard to tenants with Section 8 vouchers and certificates. City Manager Fischbach stated that staff will report back to the Board next week. Adjournment Commissioner Smith made a motion, seconded by Commissioner Wanner, to adjourn to 6:00 p.m. or as soon thereafter as possible on January 26, 1999. The vote on the motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. The meeting adjourned at 9:00 p.m. V \�t Chairperson ATTEST: Secreta CC: Council • John Fischbach ---FYI Date : January 19, 1999 To: Board of Commissioners of the Fort Collins Housing Authority From: Ravenna Windwalker — tenant and employee of FCHA Through : Darin Atteberry, Assistant to the Interim Executive Director RE: Disclosure of Information to the Coloradoan in response to allegations concerning preferential treatment of employees for home -buyer selection for Via Lopez Dear Commissioners, As you are aware, on January W, 1999 — an article concerning the Via Lopez project appeared in the Coloradoan. This published article contained the following information which is believed to have been released by the agents of the FCHA to the Coloradoan: 1. Misleading information falsely identifying one employee as a victim of domestic abuse which has caused reputational, personal and emotional damages to that employee, that employee's spouse and their children. 2. The release of inaccurate information concerning the salaries of 4 employees of the FCHA whom are not currently city employees and whose wages cannot be construed as available to the public through the auspices of the Federal Freedom of Information Act. 3. Information releasing the names of all proposed home -buyers in the Via Lopez project and identifying the sale value of the homes they plan to purchase which as above cannot be construed as available to the public through the auspices of the Federal Freedom of Information Act. 4. The release of Information identifying those proposed home -buyers who are tenants and program participants of the FCHA which is specifically protected by US Department of HUD form HUD-9886, information collected on clients is protected from dissemination by Directive Number 570.508 regarding Public Access to Program Records, and specifically prevented from access by the Freedom of Information Act by 24CFR 85.42(f) which states: (f) Restrictions on public access. The Federal Freedom of Information Act (5 U.S.C. 552) does not apply to records Unless required by Federal, State, or local law, grantees and subgrantees are not required to permit public access to their records. At the risk of offending my employers and being fired as an at will employee, I must address these issues. As a program coordinator who has had extensive experience and training in the area of ethical practices and the maintenance of confidential materials and privileged communications, I have no doubt that we have illegally disclosed confidential information in this situation. In my professional opinion, to release confidential client information for the purposes of defending our agencies reputation is absolutely unconscionable. We appear to have sacrificed the very people that we serve in the act of defending our intent to protect and serve our clients. I am personally and professionally disturbed by the authorized release of this client information and I feel that these actions have jeopardized the professional integrity of myself, my program and our integrity as a governmental agency. I feel that we may have caused irreparable harm to the client families that we serve and it is my hope that as our board of commissioners, you will seek to find some way to ameliorate the damages caused by this act and ensure that such activities will not occur in the future. In addition, during the past seven days, employees of FCHA who are also tenants have faced additional stress in that they have been told that they may not be allowed to purchase homes at Via Lopez and that indeed, it may not be legal to for the FCHA to hire tenants and that we may lose our jobs. I cannot believe that it is the intent of the commissioners, or the acting agents of the FCHA to traumatize it's employees or it's clients. We certainly face such continued harassment from external sources, to ad to that burden by means of internal administrative pressure must not be condoned. I would ask for myself as an employee, for myself as a tenant and potential home -buyer, for our tenants as a program coordinator, and in the hopes of our future as a provider of housing to the community — that you investigate these matters and procure a remedy for these situations as soon as is reasonably possible. Respectfully, Ravenna Windwalker, MS