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HomeMy WebLinkAbout1994-05-25 EHA MINUTES, ENGLEWOOD HOUSING AUTHORITY Board of Commissioners Regular Meeting May 25, 1994 L CALL TO ORDER IL m. The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 6: 15 p.m. on Wednesday, May 25, 1994, at 3460 South Sherman Street, Suite 103, Englewood, Colorado, 80110, by Chairman Thomas J. Bums. ROLL CALL Members Present: Thomas J. Bums, Chairman Norleen Norden, Vice Chairman Sheri Gulley, Commissioner* Matt Innes, Commissioner Bradley Zieg, Commissioner * * • •• Commissioner Gulley arrived at 7:20 pm Commissioner Zieg arrived at 6:30 pm Members Absent: None Also Present: STUDY SESSION Ms . Kim Higgens, Partner, Bondi & Co. Ms. Kendra Padgett, CPA, Manager, Bondi & Co. Paul Malinowski, Executive Director Mary A. Ryan, Recording Secretary Representatives of Bondi & Co ., Ms. Kimberley K. Higgins and Ms. Kendra Padgett, were present to distribute and review the 1993 audited financial statements . Ms.s Higgins and Padgett stated that these financial statements are the responsibility of the Housing Authority of the City ofEnglewood and that it was the responsibility ofBondi & Co . to express an opinion on these financial statements based on their audit. They also stated that these statements fairly represent the financial position of the housing authority . Balance sheets, statements of income and expenses, notes to the financial statements, analyses of surpluses and operating reserves were reviewed and discussed . The representatives from Bondi & Co. stated that there was one finding in the audited year. A utility allowance was calculated incorrectly. There was no questioned cost associated with this finding. Ms. Padgett suggested that the EHA test a sampling of files and ensure that this miscalculation does not re-occur. msw\a:\Minutes\0.5/2.5/94 I EHA BOC Regular Meeting 05/25/94 Discussion ensued again this year regarding the EHA's policy of preparing its financial statements on a prescribed basis of accounting that demonstrates compliance with accounting procedures prescribed by the Department of Housing and Urban Development. The EHA's practice differs from generally accepted accounting principles. The State of Colorado, Office of the State Auditor, sent a letter to the EHA dated May 11, 1994, recommending that the Authority's audit reports be prepared on a GAAP (Generally Accepted Accounting Principles) basis with supplemental HUD disclosures. Ms . Higgins again recommended that EHA staff evaluate both types of accounting reports and decide for themselves which type of reporting we prefer to do . Executive Director Malinowski again stated that he is not sure the EHA falls under the dictation of the Office of the State Auditor. He said no communication has been received from HUD allowing us to switch to GAAP. He also discussed with the auditors present how much additional auditing work they felt would be necessary in order to convert the EHA's books to GAAP. Bondi's representatives stated that it would be much easier if the EHA converted to GAAP at the beginning of the fiscal year. The EHA's accountant could get consultation from Bondi on a monthly basis to aid in the conversation. , Executive Director Malinowski asked the auditors if the EHA would be better off taking the excess reserves and set them up in a totally separate fund and have all of the innovative projects be funded from this account, e.g., the train depot project. The representatives from Bondi & Co. stated that a separate fund could be set up or a department in Simon Center. The Commissioners thanked the Bondi & Co. representatives for being present at this meeting to discuss the audited financial statements. 2. EHA BOC Regular Meeting -05/25/94 IV. MINUTES A. Regular Meeting held March 30, 1994 MOTION COMMISSIONER GULLEY MOVED TO ACCEPT THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD MARCH 30, 1994. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. There were no minutes for the scheduled Regular Meeting of the Englewood Housing Authority Board of Commissioners to be held on April 27, 1994, since the meeting was canceled due to lack of a quorum. B. Executive Session -March 30, 1994 MOTION COMMISSIONER GULLEY MOVED TO ACCEPT THE MINUTES OF THE EXECUTIVE SESSION HELD DURING THE MARCH 30, 1994 REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS TO DISCUSS LEGAL MATTERS CONCERNING LITIGATION AND REAL ESTATE. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Burns, Norden, Gulley, Innes, Zieg Nays: None Abstained: None Absent: None 3. EHA BOC Regular Meeting 05/25/94 V. VI. PRE-SCHEDULED VISITORS There were no pre-scheduled visitors at this Regular Meeting of the Englewood Housing Authority Board of Commissioners . DIRECTOR'S REPORT A. Narrative Report Discussion ensued regarding the Executive Director responding to an anonymous letter received from a Simon Center resident concerning the EHA funding the train depot project. Commissioner Zieg stated that Executive Director Malinowski handled this in the best way and he appreciated being notified of the situation. WHERE: Executive Director Malinowski stated that there was nothing new to report. Discussion ensued regarding the widening of South Santa Fe and how it will affect the residents of WHERE. The Director's Report for May 25, 1994, will become part of the minutes of this meeting as Exhibit "A". B. Program Reports Noted briefly . VII. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A. Agreement with Colorado Department of Transportation (DOT) for easement and right of way . Ratify Telephone Poll . The Colorado Department of Transportation wanted to purchase a small part of the property the train depot will sit . on to widen Dartmouth to Santa Fe. They also wanted a permanent easement adjacent to the right of way for a sidewalk . The DOT offered the EHA $2 ,390 for the right-of-way acquisition and $1,420 for the easement use . Because the DOT could condemn the property if the EHA did not accept their offer and since the offer appeared to be a very good one, Executive Director Malinowski recommended the EHA authorize the sale of that portion of 607 West Dartmouth as outlined in the DOT document for the offered prices . Also , since the EHA had already requested a foundation permit, this did not affect any setback requirement of the zoning code. Since Executive Director Malinowski received the information from DOT too late for the April 27 board meeting packet and the decision needed to be made before the May 25 Board meeting, a telephone poll was conducted . The votes were as follow : 4. I EHA BOC Regular Meeting 05/25/94 Ayes: Nays : Abstained: Absent: Bums, Norden, Gulley, Zieg, Innes None None None MOTION VICE CHAIRMAN NORDEN MOVED TO RATIFY THE TELEPHONE POLL OF APRIL 27 AND 29, 1994, APPROVING ENTERING INTO AN AGREEMENT WITH THE COLORADO DEPARTMENT OF TRANSPORTATION FOR EASEMENT AND RIGHT-OF-WAY ON PROPERTY AT 607 WEST DARTMOUTH A VENUE. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. B. Extension of contract with Community Housing Services . Ratify· Telephone Poll . The EHA entered into a contract with Community Housing Services (CHS) in 1993 to administer the Family Self Sufficiency Program. The contract was effective May 1 for a one-year period. The EHA proposed a six-month extension of the contract to coincide with the funding. The EHA's funding for FSS is primarily CDBG. Arapahoe County, as administrator of the CDBG program, agreed to give us a six-month extension on the grant expiration. There is about $12 ,000 left which will be more than enough to carry the program another six months. The EHA feels that CHS has done a good job and should be granted the extension. Since the expiration of the term of the contract followed closely behind the canceled April 27, 1994 EHA Board Meeting, a telephone poll was conducted. The results of the poll are as follow: Ayes: Nays : Abstained: Absent: Bums, Norden, Gulley, Zieg, Innes None None None 5. I EHA BOC Regular Meeting 05/25/94 MOTION COMMISSIONER GULLEY MOVED TO RATIFY THE TELEPHONE POLL OF APRIL 29, 1994, APPROVING A SIX-MONTH EXTENSION OF THE CONTRACT WITH COMMUNITY HOUSING SERVICES FOR ADMINISTRATION OF THE FAMILY SELF-SUFFICIENCY PROGRAM. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Gulley, Innes, Zieg None None None The Chairman declared the motion carried. C. 3356 South Pennsylvania Street. Ratify Telephone Poll . At the March 30 EHA Board Meeting, the Commissioners agreed to accept an offer on 3356 South Pennsylvania and offer financing for a second mortgage at the same interest rate as the first mortgage. The first mortgage lender told the purchaser and the EHA that the accrual of interest on the mortgage meant they would not approve the buyer for the amount of the first mortgage previously approved. The mortgage lender did, however, say a zero-percent deferred payment loan would be acceptable . The first mortgage lender provided backup documentation to this effect. A telephone poll was conducted on April 27 and 29, 1994 offering the Commissioners the following options : Option No. 1. Reduce the price by $5,000 to appraised value of $100,000 and provide a second mortgage in the amount of $5,000 as a deferred loan due and payable upon sale or transfer of title with a 0% interest rate . Option No. 2. Keep the price as-is, $105,000, and provide a second mortgage in the amount of $10,000 as a deferred loan due and payable upon sale or transfer of title with a 0% interest rate. Option No. 3. Do not change any terms or conditions and remarket the property to other buyers. 6. J e EHA BOC Regular Meeting 05/25/94 The results of the telephone poll are as follow: Option No . 1: Ayes: Nays: Abstained: Absent; Bums, Norden, Gulley, Zieg, Innes None None None MOTION COMMISSIONER GULLEY MOVED TO RATIFY THE TELEPHONE POLL OF APRIL 27 AND 29, 1994, ADOPTING A MOTION TO MODIFY THE MARCH 30, 1994 MOTION ON 3356 SOUTH PENNSYLVANIA STREET AS SHOWN BELOW. COMMISSIONER ZIEG SECONDED THE MOTION. MOTION COMMISSIONER GULLEY MOVED TO ACCEPT THE OFFERING PRICE OF UOS,000 REDUCE THE PRICE BY $5,000 TO APPRAISED VALUE OF $100,000 ON 3356 SOUTH PENNSYLVANIA STREET AND OFFER THE POTENTIAL BUYER A SECOND MORTGAGE OF $10,000 $5,000 AS A DEFERRED, PRINCIPAL AND INTEREST LOAN WITH INTEREST AT THE S,4,.ME RJ,.TE AS THE FIRST MORTGAGE 0% DUE AND PAYABLE UPON SALE OR TRANSFER OF TITLE. COMMISSIONER INNES SECONDED THE MOTION. Ayes: Nays: Burns, Norden, Gulley, Innes, Zieg None Abstained: None Absent: None The Chairman declared the motion carried. Note: At this point of the meeting, Comissioner Gulley excused herself from the meeting. This was done upon advice of EHA legal counsel, Jim Wagenlander in order to avoid a conflict since she is the President of the Greater Englewood Chamber of Commerce, also a party in the Train Depot project. I e EHA BOC Regular Meeting 05/25/94 7. D . Foundation and moving contracts for Depot. The EHA had received a moving bid and a foundation bid from Professional Building Movers for the train depot. It was felt to be beneficial to helve the mover and the foundation contractor be the same company to woid conflicts if the building did not fit exactly onto the foundation . The moving contract includes the cost of cleaning up the hole that will exist after the building is moved. · Executive Director Malinowski recommended approving a motion entering into a contract with Professional Building Movers for foundation and steel work for 607 West Dartmouth in the amount of $64,436; and approving a motion to enter into a contract with Professional Building Movers to move the train depot in the amount of $48,750 . The permit process was discussed briefly . The Building Department has reviewed the foundation plans and drainage report and once these are approved, the EHA will be able to obtain the foundation permit. Lengthy discussion ensued regarding a contract between the EHA and the Englewood Historical Society (EHS) for the purchase of the train depot and the land it will sit on and a contract between the EHS and the Chamber of Commerce for leasing of the basement office space underneath the train depot once it is on its foundation. The Commissioners were resolute about the EHA not signing any contracts for the foundation or move without the contractual arrangement with the EHS on the future purchase of the train depot and land at the Dartmouth/Galapago site . Commissioner Innes stated adamantly that the EHA needs a draft contract between the EHA and EHS for the sale of the depot and property; he was similarly resolute about a contract between EHS and Chamber of Commerce for the lease of the office space . He stated he would not vote "aye" on this project until the EHA has obtained some sort of contractual assurances and a list of the places the EHS intends to solicit grants from. Vice Chairman Norden suggested a compromise approving the contracts contingent upon contractual assurances from EHS to the EHA that they will purchase the train depot and pay for the land and the building move. She further suggested a meeting with the EHS and the EHA Board to get answers to some of the EHA's questions. Note: At this point, the Board asked Commissioner Gulley to come back to the meeting as a representative of the Greater Englewood Chamber of Commerce to discuss the long term lease the Chamber is to have with the Englewood Historical Society for the office space in the basement of the Depot building. 8. I -EHA BOC Regular Meeting 05/25/94 Commissioner Gulley stated that at this time she has withdrawn from active involvement with the Depot project from the Englewood Historical Society side, but did state that perhaps Dave Paschal, Chairman of their Depot Committee, could attend an EHA Board Meeting to bring the Commissioners up-to-tiat e from the EHS side. The Colorado Historical Society meets in July and February so the depot needs to be on site before July in order to obtain historical designation and begin the grant application process. She stated that the Chamber of Commerce was still interested in a long-term lease with EHS for the office space to be under the Depot. Commissioner Zieg stated that letters of intent could be used in lieu of not having a contract for the lease between the Chamber of Commerce and EHS and for the sale contract between EHS and EHA The Commissioners agreed that the best idea was to get the EHA attorney, Chamber of Commerce attorney and the EHS attorney together to get letters of intent done. Note: At this point, Commissioner Gulley left the meeting. MOTION COMMISSIONER INNES MOVED TO GO FORWARD WITH THE TRAIN DEPOT PROJECT AND (1) OBTAIN A LETTER OF INTENT FROM THE ENGLEWOOD IDSTORICAL SOCIETY TO PURCHASE THE TRAIN DEPOT BUILDING AND SITE IT WILL SIT ON FROM THE ENGLEWOOD HOUSING AUTHORITY; (2) OBTAIN A LETTER OF INTENT FROM THE GREATER ENGLEWOOD CHAMBER OF COMMERCE TO LEASE OFFICE SPACE IN THE COMPLETED TRAIN DEPOT ON THE GALAPAGO/DARTMOUTH SITE FROM THE ENGLEWOOD HISTORICAL SOCIETY ON A LONG-TERM BASIS. IF SUCH CONDIDONS ARE MET, IT WAS FURTHER MOVED THAT THE FOUNDATION CONTRACTS AND TRAIN DEPOT MOVE CONTRACTS BE SIGNED CONTINGENT UPON THE RECEIPT OF THE BILL OF SALE FROM THE PRESENT OWNER TO THE ENGLEWOOD HOUSING AUTHORITY. IT WAS FURTHER MOVED THAT UPON COMPLETION OF THE FOUNDATION AND THE TRAIN DEPOT BEING MOVED AND SET ON THE FOUNDATION AT THE GALAPAGO/DARTMOUTH LOCATION, THE BUILDING SHOULD THEN BE SECURED AND CLOSED OFF FROM WEATHER DAMAGE AND VANDALISM. COMMISSIONER ZIEG SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Burns, Norden, Innes, Zieg None Gulley None The Chairman declared the motion carried. 9. I EHA BOC Regular Meeting 05/25/94 Note: At this point, Commissioner Gulley rejoined the meeting. E. R evision to Investment Policy. Commissioner Zieg discussed the idea of revising the EHA's investment policy to allow for different investments for our non-federal funds . Currently, the EHA's investment policy covers all of its funds . Since not all of the EHA's funds are federal funds, the non-federal funds would not necessarily have to be under the same restrictions as federal funds. Commissioner Zieg wanted staff to review whether a "for-profit" corporation would better serve the EHA's investment of non-federal funds. Vice Chainnan Norden asked Commissioner Zieg what he was considering in the way of investments as far as legal and appropriate and not high-risk. Commissioner Zieg stated he wanted to consider a more entrepreneurial approach to the EHA's investments. He stated he felt that the EHA needs to take its investment funds and "give" them to a totally separate entity which would not be under the EHA's investment policy restrictions . The Commissioners suggested that a legal opinion be obtained from EHA's legal counsel on: 1. Whether it would be legal to move the investment funds to a new entity as proposed by Commissioner Zieg; and 2. If a separate fund could be set up, i.e . an "idea or innovative projects" fund, under Simon Center into which funds from the sale of the market rents and the Galapago/Dartmouth property could be put and invested in ways other than those outlined in the EHA's Investment Policy. Briefly discussed was Project BUILD. Commissioner Gulley stated that the only lots available in Englewood now have problems, e.g. no sewer. Moving houses onto the lots left on the Galapago/Dartmouth site was discussed . Commissioner Gulley stated that Jerry Nestler, Housing Specialist, should check on some of the vacant lots in Englewood that developers consider "too tough" to see if the EHA could develop them and still not be in competition with the private sector. VIll. FINANCIAL REPORTS. Briefly reviewed . IX. CONSENT AGENDA Briefly noted. 10. I r EHA BOC Regular Meeting 05/25/94 x. XI. GENERAL DISCUSSION ,-1 A. Commissioners' Choice The Commissioners stated that a commendation should be done for the accountant, Ron Schmidt, for ;,is good work on the financial statements. B. Director's Choice Executive Director Malinowski asked the Board what they wanted to do regarding additional personnel for the Rehab Program. He stated he wanted to know if he should request in the initial Housing Division personnel budget for FY'95 an additional person to do rehab . Commissioner Gulley asked if CDBG funds could be used to fund additional personnel. Executive Director Malinowski stated that he could do that. ADJOURNMENT COMMISSIONER INNES MOVED TO ADJOURN THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD MAY 25, 1994, AT 9:05 P.M. There was no further business to conduct at this meeting of the Englewood Housing Authority Board of Commissioners, and the Chairman declared the meeting adjourned. ·' ,·c::.· / . ) ,/ .· / ,c:_ ... L , -c-ZZ ,., . <r r '-1'0 ....._ Mary' A. R yan , Recor.dfng Secretary 11.