09/25/08, 8:00 A.M.

Pursuant to the e-mail notification dated September 16, 2008, the September  Heartland Apartment Association Board of Directors meeting was held at the above stated date and time at the HAA offices, 2405 Grand, Suite 106, Kansas City,  MO 64108.

Board members present were: Lee Harris, Scott Buescher, Jason Charcut, Bill Charcut, and Dennis Watts. Also present were Mary Jo Shaney, Ryan Huffman, Jim Beverlin,  and Sam Alpert. (Chris Erdley, Doug Price, Ward Katz, Lenora Carpenter, Ralph Lewis,  Rick Oddo, Jerry Miller,  Jim Bowers, and Ken Riedemann were  absent.)

Bill Charcut  convened and presided over the meeting.

The  minutes of the August  28, 2008 meeting were reviewed  and approved  by those present.

KCMO TRASH REBATE- As reported in August  by  Jim Bowers and Sam Alpert,  after the KCMO Transportation & Infrastructure Committee passed an ordinance to terminate the trash rebate program  out of committee to be adopted by the full City Council,  they had conferred with a number of council members  to advise them of the City’s potential legal exposure. Subsequent to  these communications, the full City Council referred the ordinance back to the Finance & Audit Committee for further consideration. On August 21st  Ordinance No. 080858 was introduced to be heard in the Finance & Audit Committee on September 3rd. The measure, which  was advanced out of committee and unanimously adopted by the full City Council on September 4th provided for an emergency   appropriation  from the General Fund  in the amount of  $800,000 to be used to bring unpaid trash rebates current , and to fund the program through October 31, 2008. Then on September 11th Ordinance No. 080935 was introduced and referred to the Transportation & Infrastructure (T&I) Committee to be heard. The T&I Committee has yet to hear the new ordinance,  which seeks to eliminate the trash rebate program all together by modifying the enabling section of the City code that defines the residential dwellings eligible for municipal  trash pick up services. Mary Jo Shaney and Sam Alpert explained that while the city seems to be determined to avoid reinstatement of the program, or to come into compliance with the 1976 court mandate, there continues to be uncertainty as to what may be ultimately required to achieve a satisfactory result for rebate participants.  There is a great deal of  frustration over the fact that  the HAA continues to be  forced to expend significant resources just to  recover  what has been  unlawfully taken through the City’s arbitrary termination of the program. Sam Alpert indicated that after some discussion with HAA legal counsel, it was determined that short of reinstatement of the program as mandated, the City would be advised that any negotiation will now necessarily include reimbursement of HAA’s legal expense incurred (approx. $30,000 to date). It is unlikely that the City would agree to this condition, so faced with the adoption by the City Council of Ordinance  No. 080935, a court action seeking both civil and criminal  contempt citations would quickly ensue.    Sam Alpert again suggested that a special assessment of at least $3.00 per KCMO unit (approximating  one month’s trash rebate) would be in order to fund  the HAA’s legal costs incurred  in this process.  Those in attendance agreed. 

KCMO BUSINESS LICENSE LITIGATION- Mary Jo Shaney  and Sam Alpert updated those present on the current status of ongoing  negotiations with both the City Council & City Attorney. Pending these talks, and upon the joint  request of the parties to the lawsuit,  Jackson County Circuit Court Judge O’Malley  granted a one year continuance.  At the request of the City Attorney the HAA has outlined its relative “point of beginning” with respect to  restructuring  the business license funding requirement to a flat fee basis  (cost per unit as opposed to paying on a  gross receipts calculation). This is  being advanced with some understanding that  the City may choose to address only  the passive ownership of  multifamily rental units, and not  speak to the gross receipts approach  to any other type of income property.  There has been no further progress other than  a communication from  Councilwoman Beth Gottstien  that we should expect  to hear soon from Steve Walsh in the City Attorney’s office. Upon pressing Mr. Walsh, he has indicated that there has been no clear direction from the City Council (Gottstien or anyone else) as to how negotiations are to proceed.

HAA MONTHLY NEWSLETTER CONTRIBUTION- Lee Harris distributed (for review and comment)  a proposed first edition of the HAA newsletter supplement. The supplement will be transmitted via e-mail for distribution ( through various associations and other contact mailing lists) to as many rental communities a possible throughout the region.

VOTER REGISTRATION- Sam Alpert reiterated the importance of institutionalizing voter registration as a part of  processing new residents. Through the  years  the HAA has  periodically emphasized the importance of this activity. Alpert  suggested that as the voter registration process has become far more convenient with the passage of time, it should be easily incorporated into standard operating procedures, as well as best practices. 

NEW BUSINESS-

Dennis Watts reported that a recent Mission  codes citation was settled short of  a court judgment.  It was decided that Lee Harris, Chris Erdley, and Sam Alpert would meet w/ Bucher Willis P.E. to voice industry concerns over the subjectivity of the Mission inspections.

Dennis Watts indicated that the September 6th fund raiser had managed to raise a significant contribution toward the HAA Legal Defense fund.

Sam Alpert reported that the Board of  REALTORS (KCRAR) had approved  a significant  contribution toward the HAA Legal Defense Fund (focus on Business License settlement). Alpert also indicated that he had received favorable response when seeking financial support from a number of unaffiliated apartment  owners  when he approached them regarding the KCMO trash rebate dispute.

The next regularly scheduled HAA Board of Directors meeting will be held on Thursday, October 30, 2008.

There being no further business to come before the Board, the meeting was adjourned at approximately  9:05 a.m.