HomeMy WebLinkAbout12-07-10 TSH Denton Agenda Packet
AGENDA
THE BOARD OF DIRECTORS OF THE
TEXAS STUDENT HOUSING CORPORATION – DENTON PROJECT
(AN INSTRUMENTALITY OF THE TOWN OF WESTLAKE)
DECEMBER 7, 2010
6:00 P.M.
TEXAS STUDENT HOUSING OFFICE
3 VILLAGE CIRCLE, COUNCIL CHAMBERS/MUNICIPAL COURT ROOM
WESTLAKE, TEXAS
1. CALL TO ORDER
2. REVIEW AND APPROVE MINUTES FOR THE MEETING ON JUNE 29, 2010.
3. REVIEW AND DISCUSS THE FINANCIAL CONSULTANT REPORT REGARDING
THE RIDGE.
4. ADJOURN
I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle,
Westlake, Texas, on December 3, 2010, by 5 p.m. under the Open Meetings Act, Chapter 551 of the
Texas Government Code.
CERTIFICATION
_____________________________________
Kelly Edwards, Secretary
If you plan to attend this public meeting and have a disability that requires special needs, please advise
the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made
to assist you.
TSH-Denton Minutes 06/29/10
Page 1 of 2
MINUTES OF THE MEETING OF
THE BOARD OF DIRECTORS OF THE
TEXAS STUDENT HOUSING CORPORATION – DENTON PROJECT
(AN INSTRUMENTALITY OF THE TOWN OF WESTLAKE)
June 29, 2010
PRESENT: President Jim Carter, Directors George Ledak, Jac Irvine, Jill McKean, and Chuck
Shultz and General Counsel Scott Bradley.
ABSENT:
OTHERS PRESENT: Executive Director Pete Ehrenberg and Secretary Kelly Edwards.
1. CALL TO ORDER
President Carter called the meeting to order at 7:00 p.m.
2. REVIEW AND APPROVE MINUTES FOR THE MEETING ON JANUARY 19, 2010.
MOTION: Director McKean made a motion to approve the minutes of the January
19, 2010. Director Schultz seconded the motion. The motion carried by
a vote of 5-0.
3. DISCUSS AND CONSIDER APPROVAL OF TSHC – DENTON PROJECT ANNUAL
BUDGET FOR FY 2010-2011.
Executive Director Ehrenberg provided an update and overview of the proposed budget.
Discussion ensued regarding the utilities and the cost to provide those utilities. The
utilities are capped for certain utilities.
MOTION: Director McKean made a motion to approve Budget as presented.
Director Ledak seconded the motion. The motion carried by a vote of
5-0.
TSHA – Denton Minutes 06/29/10
Page 2 of 2
4. ADJOURN
President Cater asked for a motion to adjourn.
MOTION: Director McKean made a motion to adjourn the meeting. Director Schultz
seconded the motion. The motion carried by a vote of 5-0.
There being no further business before the board, Director Irvine declared the meeting
adjourned at 7:14 p.m.
APPROVED BY THE TEXAS STUDENT HOUSING DENTON PROJECT BOARD OF
DIRECTORS ON DECEMBER 7, 2010.
______________________________________
Jim Carter, President
ATTEST
____________________________________
Kelly Edwards, Secretary
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• Current Management Company had 3 weeks to prepare for audit
• Limited access to financial information
— Requested : For 2010 - general ledger, financial statements
including 2009-10 trailing months, check registers, payroll run
Received : August 2010 and YTD Budget Comparison and
corresponding general ledger
• General Manager could not locate 14 lease files
• Property employees were restricted from discussing certain
topics with the ISH team
• Turn invoices were unavailable
• Could not assess sales tax exemption compliance without check
register
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Inadequate explanation for certain over 2010 budget items during the financial
interview. Examples of over budget categories'.
— Carpet Cleaning, Repairs, and Replacement- $9,500
— Turn Paint - $8,000
— Cleaning Turn - $12,700
— Furniture - $6,000
— Brochures - $15,000 and Internet Ads - $8,500
• Utility cap cost to the property over $28,500 per month or $282,000 annually
• Breezeway light on during daytime — Bldg. 20 — Photo 1-1 , 1-2
• Non revenue bedrooms were coded incorrectly — Table A
• 3 partially filled mobile storage units observed in the parking lot- Photo 1-3, 1-4, 1-5
• Observed a significant amount of newly purchased furniture in mobile units, but
could not locate invoice to quantify the value the purchases - Photo 1-6, 2-1 , 2-2
• Sales tax included on some invoices — no access to check register to confirm
Due to paint over spray on the sprinkler heads the asset was charged $30,000 to
replace heads
• Maintenance supervisor commented that more carpet was replaced than needed
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Maid service to clean the office may not be necessary s
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• Leasing desks were clutter free
• Leasing staff appeared professional and engaging - no tours were observed
• Insufficient tour/contact detail maintained in OneSite or on guest cards
• Insufficient follow up of tours (25% follow through on random sample) Table B
• Phone shop score one of lowest in peer group — Table C
• Curb appeal not conducive to attract new residents -- Photo 2-3 thru 3-6
Mattress and furniture in breezeways and on patios -- Photo 2-3, 2-4
Excessive debris from trees in common areas — Photo 2-5, 2-6
Breezeway lights were clogged with bugs and debris
Large sections of guttering on ground — Photo 3-3. 3-4
— Model condition unacceptable -- Photo 3-5 24
• No contact with UNT Director of Housing and R esidence Life within the last
months - "They make no effort to contact me" dated on a regular basis
• Property website information is not refreshed or updated
• UNT enrollment growth was 6.8% in last 24 months and campus annual rent gr wth
the last two years 2 to 4%. Property rent growth appeared flat (property
information was not available to confirm) manager et the property manager is
er
• The leasing staff is trained by the property g Y
new to student housing and has received no formal SH training
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• Implement the fundamental best practices of leasing in order to optimize occupancy
and rent growth and avoid unnecessary discounts (without increasing operational
expenses )
• Consider offsite climate controlled storage or vacant unit (1632) in lieu of mobile
storage in order to protect furniture from outside elements
• Implement a Purchase Order system to more effectively control costs
• Obtain 3 bids for all material services - especially for turn vendors
a Evaluate the need for maid service and consider reassigning to CA Staff
• Ensure that overhead beds are properly identified and recorded in property financials
• Analyze and reevaluate collateral materials to reduce marketing expenses
• Communicate sales tax exemption status to all vendors and provide certificate to
property employees to present during purchases
• Perform more thorough analysis of income and expenses
• Organize vendor files and separate years
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• Ensure that all prospect information is entered in OneSite
• improved follow through with all prospects to conclusion
• Raise rent to cover utility caps
• Address curb appeal issues immediately
• Reestablish and maintain on-going relationship with UNT to ensure referrals from school
• Disciplined approach to refreshing information on the website and monitor referral
statistics regularly
Regulars ongoing training and certification of leasing staff
• Improve response time and quality to prospect inquiries by phone or by website
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• Insufficient exterior lighting for the property
— Majority of buildings had lighting outages in stairwells, parking lots, and common areas
Some buildings had no exterior lights working - e.g. building 15
• The lack of key control puts the students safety at risk and creates a liability for the
property owner.
-- Maintenance shop was unsecured with open access to all unit keys — Photo 4-1
Key box and key control system was open and no check inlout system was apparent— Photo 4-2
• Large and aggressive breeds of dogs were observed on the property contradictory
to the lease agreement (e.g. Pit Bull and Great Dane)
• Significant resident and parental information (current and previous year) was
unsecured — Photo 4-3
• Drain covers were broken or missing exposing residents and employees to injury
and creating a liability to the owner — Photo 4-4, 4-5
• No auto gate closers on pool gates exposing the property to possible liability —
Photo 4-6
• Large tree limbs and standing water create a safety hazard Photo 2-5 thru 3-2
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• Replace all faulty lighting and remove debris from lighting lenses
• Secure all unit and bedroom keys in one location and maintain adequate key
control
• Walk all units and enforce lease agreement relative to pets and insure pet deposits
are received
• Secure all resident records and secure office back door to restrict unauthorized
access to office
• Replace all drain covers and evaluate all property grounds for potential liability
hazards
• Install auto closures on all pool gates and lock gates outside of normal business
hours
Remove all fallen tree limbs and address standing water
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• Photo Exhibits
• Table A — Non Revenue Units
• Table B — Guest Card and Follow up Evaluation
• Table C — Telephone Shop Analysis
• Table D — Manager and Resident Evaluations
• other supporting Documentation
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The Ridge at North Texas
Manager Questionnaire
1. Background experience ? qualifications? Certifications?
• No student housing experience
• No certifications
• Knox Henderson—3 Years
• AMLI Residential—S Years
• General Manager—3 Years
• Past experience mostly conventional
2. Top Leasing Agents/CAs(based on closing ratios)
• Felicia
• Stephannie
• Casey
3. What training have you been provided by Asset Campus Housing ?
a. No formal training as of today
b. "Thrown into the fire"
4. Is there a Corporate training program ?
a. Not yet—"Asset University" online classes start November 10th
5. What is the training program for the Community Assistants ?
a. No Corporate training
b. Trained by the General Manager
6. Explain the leasing process and follow-up.
a. General conversation
b. Property Tour
c. Present model
d. Discuss/show amenities
e. Close
f. Leasing Manager signs lease
7. Explain the maintenance process
a. Enter work order
b. Address with 72 hours
c. Complete
8. As of today, how many outstanding work orders do you have ?
a. 9 outstanding (6 on are hold for parts)
9. Average maintenance response time?
a. Better now—within 48 hours
10. Top 5 marketing/outreach ideas:
a. College Guide—local publication
b. UNT Daily—University newspaper
c. Signage at UNT
d. Key chain program
11. Morale of staff?
a. Need "More support systems"
12. Evaluation of this year's turn
a. Turn rates negotiated by Ken Amber.
b. Over Budget
c. University Furnishings in Storage Unit
13. What are the biggest challenges of your job?
a. "Cleaning up the mess"
4. Organization
ii. Staff
iii. Teamwork