AGENDA Regular Meeting of the Board of Directors Thursday, July 11, 2013, 6:00 pm

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5 AGENDA Regular Meeting of the Board of Directors Thursday, July 11, 2013, 6:00 pm NOTE: Times listed for Agenda Items are estimates only. Actual times may vary substantially dependent on circumstances. It is suggested that Members having an interest in a specific Agenda Item be in attendance from the start of the meeting. I. Procedural Items Item A. 6:00 pm Call to Order & Opening Remarks Ken Knueven, President B. 6:05 pm Adoption of Regular Meeting Agenda Ken Knueven, President C. 6:10 pm Approval of Minutes June 27, 2013 Regular Board Meeting Ken Knueven, President Disposition Discussion Action Action II. Presentations, Discussion & Action Items Item Disposition D. 6:15 pm Member & Board Comments Discussion E. 6:30 pm Momentum: The Next Generation of Metro Resolution of Support Supervisor Hudgins, Hunter Mill District Rep. Fairfax Co. Board of Supervisors Action F. 6:40 pm Affordable Housing 101 Amanda Andere, Board Director/Apartment Owners Representative Kerrie Wilson, Reston Interfaith Executive Director G. 7:15 pm Fiscal Committee Appointment Ken Knueven, President H. 7:20 pm Lake Use Requests Larry Butler, Director of Parks & Recreation Informational Action Action Lake Thoreau Boat Party Reston Triathlon Standup Paddle Boarding I. 7:30 pm Dock Maintenance Covenant Agreement Request: 2203 Burgee Court/Reston Section 84, Block 5 Larry Butler, Director of Parks & Recreation Brevetta Jordan, Director of Covenants Administration Wil Washington, Legal Counsel J. 7:50 pm 2014/2015 Budget Development Cate L. Fulkerson, Acting Chief Executive Officer Action Discussion/Action Determine Budget Priorities for Inclusion in 2014/2015 Budgets Currently Slated Capital Projects for 2014/2015 Funding Option for Select 2014/2015 Slated Capital Projects K. 10:30 pm Executive Session to Discuss Legal, Contractual or Personnel Related Matters Ken Knueven, President III. Close of Meeting Item L. 11:00 pm Adjourn Ken Knueven, President Action Disposition Action Reston Association Board of Directors Meeting - July 11, 2013

8 Affordable Housing and Our Community Jill Norcross Vice Chair, Board of Directors Kerrie Wilson, CEO Reston Interfaith

9 Reston Interfaith Mission/Programs Strategic Plan (2006) 1. Affordable Housing: Participate directly in affordable housing preservation and development projects and advocate for policies that preserve and develop affordable housing. 2. Resources for Moving Ahead: Residential and intensive case management services that support the path to self-sufficiency. 3. Neighborhood Resources: Partner with our community to provide resources and referrals. 4. Advocacy: Work with and for those affected by poverty or who struggle with selfsufficiency, to educate and develop consensus for change that begins at the community level. 5. Stewardship and Support: Ensure the integrity, quality and impact of our programs. Lines of Business (FY2013) 1. Build and Maintain Housing Stock 53 Townhomes + 9 Pipeline North Point Acquisition (12 Months) New Acquisition (Jan ) 2. Develop & Operate Programs HOST / Housing Counseling Supportive Services Child Development / Parent Support 3. Neighborhood & Community Services Integrated Services Network Community Building and Engagement Food Distribution/Hunger Relief Life-Skills and Literacy Training 4. Build and Maintain Support Funding Advocacy Volunteers Events and Engagement

10 Specific Reston Interfaith Affordable Housing Strategies for partner investment and support include: Preserve Affordable Housing Stock in Northwestern Fairfax County Renovate, Maintain Affordable Housing Properties and Build Community Assets Incorporate Green Building Practices and Improve Energy Efficiency for Tenant Savings Acquire/Develop or Lease Affordable Housing for Homeless/Vulnerable Individuals and Families

11 What is Affordable Housing? 1. Housing that costs the owners or tenants no more than 30% of their income for their housing related costs Rental Housing Cost = Rent + Utilities Ownership = Principal + Interest + Taxes + Insurance 2. Includes a wide range of housing Shelter night to night or permanent beds Special Needs homeless, disabled, etc. Working poor Workforce Ownership Single Family, Townhouse, Condo 3. Percentages Area Median Income (census data) 0 30% = Extremely Low Income 30 50% = Very Low Income 50 80% = Low Income % = Moderate Income 60% = Tax Credit Maximum

12 What is Affordable Rental Housing in the Region? In the Greater Washington region, the annual median family income is $107,300. HUD measures income levels based on the percentage of area median income (AMI) and how many people are in a household (hh). Extremely Very Low Low Low Median Income Level (% of AMI) 30% AMI 50% AMI 80% AMI 100% AMI Income limits; 1 person hh $22,550 $37,600 $46,750 $75,200 Income limits; 4 person hh $32,200 $53,650 $85,84 $107,300 Affordable monthly rent for a 2-bd apartment $701 $1,169 $1,634 $2,338

13 What is affordable in our region and for whom? Fair Market Rent (FMR) for a 2-bd is $1,412/mo. A Household must earn $56,480/year to afford it. Assuming a 40-hour work week, 52 weeks per year, the wage needed to afford the FMR for a two-bedroom apartment is $27.15 per hour (also known as the housing wage ). A minimum wage worker earns an hourly wage of $8.25. To afford the FMR for a 2-bd apartment, a minimum wage earner must work 132 hours per week. Or a household must include 3.3 minimum wage earners to make the apartment affordable. --Out of Reach 2013, National Low Income Housing Coalition

14 What does that mean in Reston? Apartments within Reston Association Boundaries Extremely Low-Income-Cedar Ridge Low-Income Stonegate/Island Walk Low-Income Apartments at North Point, Crescent Percentages Area Median Income (census data) 0 30% = Extremely Low Income 30 50% = Very Low Income 50 80% = Low Income % = Moderate Income 60% = Tax Credit Maximum

15 Affordable Housing Examples in Reston RI Townhomes 53 units, 49 town homes and 4 condos scattered throughout Herndon, Reston and Centreville. These are 2, 3 and 4 bedroom units.

16 Cedar Ridge Apartments 198 Units of Project-Based Apartments serving Extremely- Low and Very-Low Income Residents

17 The Apartments at North Point The Apartments at North Point 48 Tax-Credit Units, RIHC in Partnership with the Bozzuto Companies

18 Example of Affordability: Apartments at North Point Rental Rate: o1 Bedroom, 1 Bath ; 791 square feet - $1,050 o2 Bedroom, 2 Bath ; 967 square feet - $1,250 o3 Bedroom, 2 Bath ; 1,139 square feet - $1,440 Income Restrictions: o1 Person - $45,180 o2 Persons - $51,600 o3 Persons - $58,080 o4 Persons - $64,500 o5 Persons - $69,600 o6 Persons - $74,820 These are Tax Credit rents that target 60% of AMI and below. To reach very low income (30% AMI) and sometimes low income (50% AMI), a direct subsidy is required.

19 The Landscape Magisterial District Chart Hunter Mill District 16.34% of all Affordable Housing in Fairfax County The Cycle of Housing Stability Expiring Affordability Clauses at Height of Market = Loss of Affordable Rental Market Housing Market Collapse and Foreclosures Rebuilding Stability Housing Costs back up Sequestration Experts Say Availability of affordable housing linked to economic vitality and opportunity 28,000 units to close Fairfax County affordable rental housing gap 45,000 units for future Workforce housing gap GMU Center for Regional Analysis and Fairfax County s Housing Blueprint

20 What does this mean for Reston? What s Required? What do we influence? Crescent Example of Affordability Balance What is the story who will be served? Metro and Redevelopment JBG / Fairways Reston Town Center Tysons Corner Perspective.

21 If you ever find yourself in a conversation with someone who doesn t believe in housing subsidies, remind them of our country s largest housing program: Mortgage Interest Deduction

22 Questions..

Assessment & Finance Resolution 1 outlines the RA biennial budget development process: A detailed budget calendar is developed by the CEO, approved by the Board of Directors, and posted on the

24 Assessment & Finance Resolution 1 outlines the RA biennial budget development process: A detailed budget calendar is developed by the CEO, approved by the Board of Directors, and posted on the Association s website and made available at the Association s offices. Completed March 14 th. A Budget Suggestion form is developed and made available for Members, Board, Committees and Staff to suggest projects or spending and revenue recommendations for consideration by the Board of Directors. This is made available on Association s website and at the Association s offices. Received between April 26 th -May 31 st. All budget suggestions received are forwarded to the Board of Directors for consideration. Completed June 13 th.

25 Information Location

26 The CEO conducts a work session with the Board of Directors to discuss the overall budget process, and provide a summary of the budget suggestions received including an initial prioritization of the suggestions. Completed June 13 th. The Board of Directors will then determine which of the budget suggestions will be considered for inclusion in the CEO s budget proposal. Planned for July 11 th. The CEO will present other important factors the Board will need to consider for inclusion in the biennial budget including, underway now: Planned Capital Projects Reserve Funding Levels New Revenue Opportunities Program & Service Fees Cost Saving Opportunities Salary/Benefit Expenses

27 Budget Development After receiving feedback from the Board, the CEO will develop a biennial budget proposal for the Board s approval. Initial drafts to be presented July 25 th with Special Board Work Sessions scheduled for September 16 th and 21 st. The Association will hold public hearings on the proposed biennial budget to allow Members to understand the assumptions used in preparing the biennial budget proposal; understand the drivers of any assessment increase or decrease; and comment on the budget process. Scheduled for October 17 th and 26 th. Finally, after adopting the budget, the Board will set the Assessment rate for the first year of the biennial budget. Scheduled for November 21 st.

28 BUDGET SUGGESTIONS Between April 26 and May 31, RA received 136 Budget Suggestion submissions made by Members, the Board, Committees and Staff. The Senior Leadership Team (SLT) reviewed and prioritized the suggestions. The SLT priorities were organized alphabetically by functional area in RA. Each priority section was aligned with one of the Association s five Strategic Areas of Focus Change & Opportunity; Community Leadership & Engagement; Programs & Services; Sustainability & Community Viability; and Technology.

29 STAFF RECOMMENDATIONS The strategic theme for the 2014/2015 Budget should be Sustainability & Community Viability To effectively manage all resources, resulting in a sustainable and viable community It is time for the organization to pay attention to infrastructure upkeep and maintenance. We need to take seriously our responsibilities of: Conserving and protecting the value of all property; and, Improving, administering and maintaining such property in neat and good order. We need to reinvest in Reston; we need to better maintain what we have.

30 STAFF RECOMMENDATIONS ON DETERMINING 2014/2015 BUDGET INITIATIVES In reviewing the prioritized initiatives staff asked the Board to keep the following in mind: Many of the suggested initiatives have been on staff s wish list for more than four (4) years. Staff holds the same desire of the Board and Members of the community, extending the useful life of our common elements/infrastructure while at the same time maintaining such property in neat and good order. Many of the initiatives, if chosen, will have a long-term impact on the community as they put in place processes that will improve the appearance of the community, property values, and systems functionality. To accomplish some of these initiatives it will be important to have all of the interrelated resources in place: capital, human, and economic.

31 Think about the following when determining your 2014/2015 Budget Priorities: Will the initiative support or help achieve the Association s vision, mission, core values and strategic plan? Is the initiative directly related to any of the key purposes of the organization? What does the organization wish to accomplish in the next 24 month cycle?

32 INITIAL BOARD PRIORITIES FOR 2014/2015 On June 13, 2013, the Board received Staff s recommended new initiative priorities for possible inclusion in the 2014/2015 Budget Development process. The priorities were derived from among 136 Budget Suggestion submissions made by Members, the Board, Committees and Staff. Board Directors were asked to rank each of the Sections in order of priority; with #1 being their highest priority, #2 their second, #3 their third, etc. Eight of the nine Board Directors ranked the different Sections in order of preference with #1 being their highest priority and #8 being their lowest. Below are the results of their rankings.

33 INITIAL BOARD PRIORITIES FOR 2014/2015 The highest priority was Section H: Parks & Recreation Maintenance/Infrastructure. Total Score Section/Functional Area 12 Section H: Parks & Recreation Maintenance/Infrastructure 22 Section D: Human Resources 25 Section G: Parks & Recreation Programmatic Services 34 Section F: Member Services 39 Section E: Information Technology 44 Section B: Covenants Administration 44 Section C: Finance 50 Section A: Communications NOTE: The lowest number indicates the higher priority preference for the Board of Directors.

34 INITIAL BOARD PRIORITIES FOR 2014/2015 The next task the Board was charged with was to rank the initiatives within each Section. Although given the same instructions for the Sectional rankings, many Directors only ranked or indicated a preference for certain items. As a result, the tabulations for the individuals items are not grouped in order of priority but, instead by order of interest.

35 INITIAL BOARD PRIORITIES FOR 2014/2015 The initiatives below were of interest to seven (7) or more Board Directors: Section H: Parks & Recreation Maintenance/Infrastructure Submission Number Functional Category Budget Request Financial Category OPEX Submitted By 2014 Expense RA Board Member: Ken Knueven 2015 Expense 82 Maintenance & Upkeep Beautification program: new landscaping for all gateway entries into Reston. $3,000 $3, CSF Planning and design funds to renovate the CSF in CAPEX Parks & Rec $10, Natural Areas Provide a minimum of once a year trash pickup on all OPEX Parks & Rec $13,000 $13,000 Reston Association property 74 Recreation Replace the lights at our parking lots with LED bulbs. OPEX Parks & Rec $14,385 Areas 61 Pathways Pathway Blower for 2014, Buffalo Cyclone Blower CAPEX Parks & Rec $7,410

36 INITIAL BOARD PRIORITIES FOR 2014/2015 Section D: Human Resources Submission Number Functional Category 88 Human Resources 90 Human Resources 87 Human Resources Budget Request Financial Category Submitted By 2014 Expense 2015 Expense Increase employment screening pre/post to include all new hires and positions that work with children on a regular basis at $22.02/hr. + benefits OPEX HR $32,500 $32,500 Convert 11-month seasonal positions to full-time that are OPEX HR currently just under the F/T threshold in terms of average hours worked. Because of average hour worked threshold under Health Care Reform, starting in 2014 RA will be required to offer these individuals, if rehired, health insurance or pay a penalty. Grounds Worker - F/T salary + benefits $9,640 $10,190 Pathways Worker - F/T salary + benefits $10,520 $11,153 Tennis Maintenance Worker - F/T salary + benefits $12,654 $13,489 Grounds Worker - F/T salary + benefits $10,520 $11,153 Grounds Worker - F/T salary + benefits $11,587 $12,321 Grounds Worker - F/T salary + benefits $12,654 $13,489 Continue to build organizational capacity thru training & OPEX HR $35,000 $35,000 development opportunities for staff; i.e. professional development & tuition reimbursement

37 INITIAL BOARD PRIORITIES FOR 2014/2015 Section G: Parks & Recreation Programmatic Services Submission Number Functional Category 12 General Requests Budget Request Add a drinking fountain at the North Shore Tennis Courts. Description: These courts are used heavily by children taking tennis lessons or playing tennis. There is no water available at the courts. Young children need water often to stay hydrated so this is a child health and safety need. I don't have a cost estimate but believe that RA Parks & Rec can provide one. Financial Category Submitted By 2014 Expense CAPEX Member: Elaine Killoran $4, Expense 42 Aquatics Convert 11-mo seasonal to full time; salary + benefits. OPEX Parks & Rec $9,931 $10,508 Section F: Member Services Submission Number Functional Category 45 Member Services Budget Request Section E: Information Technology Submission Number Functional Category Add a seasonal position to cover the months of January through July, annually. 401K only for 2015 Budget Request 101 AMSIT Inventory tracking for Finance and IT - Barcode and scanner solution for fixed asset equipment Financial Category Submitted By 2014 Expense 2015 Expense OPEX Member Services $14,906 $15,830 Financial Category Submitted By 2014 Expense 2015 Expense CAPEX IT $14,000

38 IMPORTANT INITIATIVES WORTHY OF RECONSIDERATION Section A: Communications Submission Number Functional Category Budget Request 127 Communications Convert Graphic Designer Position from Part-Time to Full-Time (25 hr/week to 40 hr/week)- F/T salary + benefits Financial Category Submitted By 2014 Expense 2015 Expense OPEX Communications $23,440 $25, Communications-IT Media management solution (Cumulus, Photo Mechanic) CAPEX Communications $20,000 Section B: Covenants Administration Submission Number Functional Category Budget Request Financial Category Submitted By 2014 Expense 96 COV-IT Centralized Solution for Photo Storage CAPEX IT $15, Expense Section C: Finance Submission Number Functional Category Budget Request 119 Finance - IT Planning and budgeting tool including software and user licensing - Would like to have this in place before 2016/2017 Budget Development Process Financial Category Submitted By 2014 Expense 2015 Expense CAPEX Finance $50,000

39 IMPORTANT INITIATIVES WORTHY OF RECONSIDERATION Section E: Information Technology Submission Number Functional Category Budget Request 98 AMSIT IT Specialist I staffing position - tier 1 support, documentation, training (F/T salary + benefits) 102 AMSIT Additional storage for VMHOST for Communications data 105 AMSIT Document Management Solution (SharePoint) Build organizational capacity by leveraging technology to create operational efficiencies which ultimately saves labor & money; i.e. time clock, HR Actions/ESS, etc. Financial Category Submitted By 2014 Expense 2015 Expense OPEX IT $50,443 $54,846 CAPEX IT $20,000 CAPEX IT $160,000 Note: With the exception of the two personnel requests, the items identified for reconsideration involve Information Technology data management and storage.

40 NEXT MILESTONES IN THE 2014/2015 BUDGET DEVELOPMENT PROCESS 1. Week of July 8th CEO/CFO meet with staff to review proposed 2014/2015 budgets. These budgets do not include any new expense initiatives. 2. On July 11th, the Board will receive results of your initial budget priority preferences and be provided with information on currently slated Capital Projects for 2014/ On July 25, the Board will receive information on: Executive Summary of 2014/2015 Budget Packages Operating, Repair & Replacement, New Capital Assets Results of 2012 Salary Study and Recommendations for New Salary Structure Results of Program and Service Benchmarking Projects Recommended Program and Service Fee Scheduled for 2014/2015 Funding Option for Select 2014/2015 Slated Capital Projects 4. During the Board Budget Work Session Planned for September 16 th and 21 st, the Board will determine: Final new initiatives for inclusion in the 2014/2015 Budgets New Board Homework Assignment: Between July 14 th and September 16 th the Board must review the information provided by staff in preparation to make decisions that will shape the direction of the Association s financial plan for 2014 and 2015.

REVISED AGENDA Regular Meeting of the Board of Directors

REVISED AGENDA Regular Meeting of the Board of Directors Thursday, March 14, 2013, 7:00 pm NOTE: Times listed for Agenda Items are estimates only. Actual times may vary substantially dependent on circumstances.