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HomeMy WebLinkAbout2009-08-05 EHA MINUTES• • • [. CALL TO ORDER ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS Regular Meeting August 5, 2009 Chair Arterburn was delayed in traffic. He requested Vice Chair Hara chair the meeting until he arrived. The Minutes were voted on; Resolution 14 was voted on . Chair Arterburn arrived and the scheduled visitors then made their presentations. II. The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 4 :05 p.m. on Wednesday, August 5, 2009 at 3460 South Sherman Street, Suite 203, Englewood, Colorado, 80113, by Vice Chair, Rodger Hara. ROLL CALL Members Present: Members Absent: Also Present: Ernie Arterburn, Chair (LA TE -EXCUSED) Rodger Hara, Vice Chair Beverly Bradshaw, Commissioner Charles Carter, Commissioner Jennifer Haynes, Commissioner Diane Ostmeyer, Alternate James Woodward, Mayor None Dawn Shepherd, Executive Director Renee Tullius, Administrative Manager Geula Sherman, Financial Services Manager Wendy Swanhorst, Swanhorst & Company Austin Bump, Swanhorst & Company Vincent Perez, Johnson Controls Carrie Thomas, Johnson Controls Glen Heitkamp, Johnson Controls III. MINUTES A. Regular Meeting held July 1, 2009. MOTION , • IV. • • COMMISSIONER BRADSHAW MOVED TO ACCEPT AND APPROVE THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS HELD JULY 1, 2009. COMMISSIONER CARTER SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Hara, Carter, Bradshaw, Haynes None None Arterburn The Vice Chair declared the motion carried. SCHEDULED VISITORS Dawn Shepherd presented back ground information summarizing the unique occurrence of the return of grant funds to the Division of Housing resulting in the decrease of a HOME grant and the issuance of a new Housing Development Grant to The Terraces on Pennsylvania. The legal partnership documents regarding The Terraces on Pennsylvania were not amended after that transaction and the lack of those documents prevents the auditor from "signing off' on the audit. All partners and attorneys have been contacted. All partners are cooperating but the documents must go thru the US Bank loan committees and the AEGON legal department. The amended documents do modify the partnership agreement to reflect the additional funds contributed by EHA which will expedite the transfer of ownership at the end of the tax credit period. Wendy Swanhorst, EHA auditor, must view all signed documents. Vice Chair Hara noted the additional funds increase EHA's equity in The Terraces. It is to the tax credit partner's advantage to sell to a qualified non profit at the end of the tax credit period as it shelters them from potential exit taxes. At the end of 15 years it is possible EHA could purchase The Terraces for $1.00 plus assumption of the remaining debt. Refinance options were discussed. The loan to value ratio will be low; the amount to refinance will likely be nominal. The utilization of the additional grant funds may require a change order to include additional items. Wendy Swanhorst is the principal of Swanhorst & Company. Austin Bump is the lead auditor for EHA at Swanhorst & Company. Wendy Swanhorst noted the Net Assets, Restricted for Housing Assistance Payments, Vouchers, as a negative number. She stated that number would increase by $9,000. It will remain negative indicating payments in excess of receipts and suggested it should not remain in a negative position indefinitely. She noted a large proportion of the loss at the Normandy was due to the return of the $183,000 grant funds. Wendy Swanhorst referenced the Management letter noting that the 2 , • • • implementation of new software impacted the lateness of the audit. Geula Sherman did note that although the finance area was the first department scheduled for conversion it became necessary to convert the Section 8 department first which delayed the availability of the financial information . Wendy Swanhorst stated that the grant expenses that currentl y appear as an expense are actually receivables. The financial statements and audit will be corrected to agree with that. She did describe the confusion over the treatment of the grant funding as a weakness in the higher level aspects of the accounting system although she found no weakness in the day to day operations. Dawn Shepherd and Ms . Swanhorst will meet to discuss improvements. EHA has until the end of September to submit the audit to HUD . Vincent Perez, Carrie Thomas, and Glen Heitkamp of Johnson Controls presented the history and organization of Johnson Controls. They described their approach as resident centric and characterized an ESCO agreement as an innovative financial vehicle that could be used to pay for improvements over 20 years with no risk to EHA. The types of improvements that could be included are the boiler at the Normandy, lighting improvements, water conservation and individual thermostats at Simon Center. Carrie Thomas does have a HUD approved RFP that she will share. If chosen Johnson Controls would perform a through audit of all buildings. They would present a detailed list of projects, and the savings and costs associated with each. At that point EHA could sign an agreement and proceed or opt out and pay the cost of project development. An ESCO agreement has the advantage of improving infrastructure, stabilizing costs and all improvements are implemented by Johnson Controls. There is a yearly service fee of $15,000 to $20,000 . The incentive per unit is $12,500 . Johnson Controls would train maintenance personnel and the residents. The Board members discussed the presentation after its conclusion and reached the consensus to obtain the RFP, and to submit it to HUD for approval. MOTION COMMISSIONER HA YNES MOVED TO APPROVE SUBMITTING THE RFP OBTAINED FROM JOHNSON CONTROLS TO HUD FOR AP PROV AL. COMMISSIONER BRADSHAW SECONDED THE MOTION. Ayes: Nays: Abstained: Absent: Arterburn, Bradshaw, Carter, Haynes None None Hara The Chair declared the motion carried . 3 • IV. DIRECTOR'S REPORT • • A. Narrative The BBQ lunches hosted by EHA for the residents were well attended; the residents enjoyed them. The engineering of the installation racks for the solar panels for Orchard Place and Simon Center should be finished and the application to Xcel submitted by the August 14 1h. Main Street Power remains optimistic and upbeat. The closing of the waiting list was noted. The consultant for the senior designation will be on site in August. The patio door repair project at Orchard Place is scheduled to begin August ih. B. Financial Reports Commissioner Bradshaw complimented Geula Sherman on the format. There were no questions . C. Program Reports The lease up the Terraces on Pennsylvania was noted. There were no questions. VI. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A. Resolution 13 Approving the 2009 Audit Resolution 13 is held for the September Board Meeting. B. Resolution 14 Approving the Transfer of Funds from Simon Center to Normandy Dawn Shepherd reported that the lease up rate at the Normandy was improving and there was some initial interest in purchasing the building. Geula Sherman estimated that a total of approximately $10,000 would be required to be transferred thru the end of 2009. If Capital Improvements were done, $50,000 would be needed . 4 • • • Commissioner Carter inquired as to the status of boiler replacement. Dawn Shepherd noted that Johnson Controls could replace the boiler as part of an energy control contract. Further discussion of the boiler was anticipated at the September meeting. MOTION COMMISSIONER BRADSHAW MOVED TO APPROVE RESOLUTION 14 APPROVING THE TRANSFER OF FUNDS FROM SIMON CENTER ACOUNTS TO NORMANDY FUND ACCOUNTS. COMMISSIONER CARTER SECONDED THE MOTION. Ayes: Nays: Hara, Bradshaw, Carter, Haynes None Abstained : None Absent: Arterburn The Vice Chair declared the motion carried. VII. INFORMATION AGENDA Commissioner Bradshaw noted the resident's notes. Commissioner Haynes noted the information on the Englewood police presentation re: Gangs and Graffiti . Mayor Woodward stated that Gangs were not the problem in Englewood; vandalism and tagging were more common. Serious crime has dropped in Englewood. VIII. GENERAL DISCUSSION A. Commissioner's Choice There were no comments. B. Director's Choice Both Simon Center and Orchard Place residents participated in National Night Out with about 30 residents at each building. The financial class arranged by Marty Mossman and held in the board room on Tuesday nights was a success. 14 persons completed the class. C. Council Communication 5 • • • IX. Jim Woodward reported that the issue of medical marijuana had been brought before the Council. Several businesses may be moving to Englewood. The budget process is ongoing. Sales revenues in July were down 9.5%. ADJOURNMENT Commissioner Haynes moved the meeting be adjourned. Commissioner Carter seconded the Motion. The Chair declared the meeting adjourned at 6:35 p.m. Ernie~ Englewood Housing Authority Board of Commissioners 6