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HomeMy WebLinkAbout2010-06-02 EHA MINUTES.. • • • I. CALL TO ORDER ENGLEWOOD HOUSING AUTHORITY BOARD OF COMMISSIONERS Regular Meeting June 2, 2010 The Regular Meeting of the Englewood Housing Authority Board of Commissioners was called to order at 4:00 p.m. on Wednesday, June 2, 2010 at 3460 South Sherman Street, Suite 203, Englewood, Colorado, 80113, by Chair, Ernie Arterburn. II. ROLL CALL Members Present: Members Absent: Also Present: Ernie Arterburn, Chair Beverly Bradshaw, Commissioner Charles Carter, Commissioner Jennifer Haynes, Commissioner (Delayed) James Woodward, Mayor& Council Liaison Rodger Hara, Vice Chair (Excused) Diane Ostmeyer, Alternate Dawn Shepherd, Executive Director Renee Tullius, Administrative Manager Geula Sherman, Financial Services Manager Jim Hamit, Operations Manager III.SCHEDULED VISITORS David Koch, Johnson Controls, Inc. (JCI) Carrie Thomas, Johnson Controls, Inc. Stephen Rivera, Johnson Controls, Inc. Mr. Koch's presentation included: • the steps EHA and JCI had taken to complete the energy audit and to analyze and choose the Energy Conservation Measures (ECMs) to be included in the contract; • the details of the improvements planned; • the financial worksheets delineating the savings, the expenditures and the cash flow; and • the next steps of the process. Mr. Koch referenced pictures boards depicting the resident receptions and the residents completing surveys. He stated that the purpose of the improvements is to provide the residents with high quality living conditions while lowering energy costs. EHA residents have been very • • • cooperative with JCI during the energy audit. The surveys had a 75% response rate , the highest of any building JCI has ever surveyed. Cooperation between the EHA and JCI staffs was exceptionally good. Rarely does the process follow the schedule set out in the RFP as the staff members have done in this project. The basic concept of an Energy Performance Contract (EPC) is that energy savings will pay for the improvements made by utilizing leveraged 3rd party funds. The loan payments will be made from the monetary value of the energy savings realized. This has the additional advantage of freeing up capital for other projects. For example, EHA is able to blend boilers for the high rise buildings and hot water heaters for the family units, which need to be replaced with or without an EPC, into the EPC freeing up that capital to address other issues. Other benefits are the comfort and safety of the living conditions, increasing the value and marketability of assets and providing a local economic stimulus. Many Energy Conservation Measures (ECMs) were evaluated by EHA; some were discarded. Hallway lights on motion detectors for example were discussed but deemed inappropriate for senior buildings. Mr. Koch referenced two sets of worksheets that had been distributed. Public Housing ECMs are evaluated on one set of work sheets; Simon Center and the Office Building on a second set of worksheets as public housing captures savings differently from Simon Center and the Office Building since public housing has an Annual Contributions Contract with HUD. A review of the ECMs followed focusing on lighting, thermostats and boilers/hot water heaters. The calculations utilize a 3% escalator. The aerators, showerheads, Safe-T elements, toilets and thermostats were displayed . Individual, wireless, programmable thermostats will be installed at Orchard Place. The programmable temperature will be set within limited parameters and residents will be trained in their use. The wireless DDC thermostats to be installed in Simon Center have been used in commercial applications for many years and are elderly friendly. Three different types of temperature control systems were evaluated at each building. The type chosen for each building had the most advantageous cash flow. The results of the temperature loggers that were placed in the apartments are the basis for the temperature parameters on the programmable thermostats. Commissioner Haynes inquired as to cleaning methods of the Safe -T elements and Commissioner Bradshaw asked if they changed color to indicate if they were hot. Dawn Shepherd will contact the Housing Authority in Grand Junction to determine their experience with them. Commissioner Carter verified that JCI staff or contractors would be responsible for the toilet replacement. Mr. Koch stated that JCI, as general contractor, would be responsible for everything. Commissioner Carter suggested replacing the air conditioners in the sitting rooms on each floor. EHA staff had determined that EHA staff would be responsible for that particular project. The cash flow analysis does include the service agreements for each building. The service agreement for Simon Center is more expensive than Orchard Place as in includes service calls as 2 .. well as a biannual checkup. As the system at Simon Center is more complicated and involved many new thermostats, new piping and valves the possibility of additional service needs was • projected. • • Mayor Woodward noted that the payback period on some items is longer than their expected life. Carrie Thomas indicated that a replacement fund is included in the analysis. Provision is made to replace those items with a life expectancy of less than 20 years. Commissioners Bradshaw and Haynes made inquiries into the overhead, profit and travel expenditures line items. A number of the JCI team members working on the project fly into Denver from other offices. It was noted that contingencies were included in the cash flow analysis as well as a capital contribution by EHA in the Orchard Place project. The capital would be used to buy down a loan. JCI would negotiate step lease payments with a lender so that EHA is not in a negative cash flow position during any year. EHA will purchase and own all improvements. JCI staff will monitor the performance of the ECMs through measurement and verification of the energy saving. JCI, as long term partners that guarantee the savings, has "a lot of skin in the game". If JCI makes a mistake, they have an incentive to discover it and to fix it. The ECM's and cash flow analysis at Simon Center were discussed. The service agreement and the necessity for step loan payments were noted. Dave Koch related that recent contracts had been able to secure loans in the 5% interest range. The average EPC is able to achieve an investment of $5,000 per unit. EHA's EPC will be able to achieve a much greater than average investment of $9,500 per unit with the energy savings. Construction is estimated to take one year. If the board approves proceeding with the EPC with Johnson Controls, JCI will simultaneously submit the contract (based on the HUD template) to the EHA attorney for review, assemble and submit the required packet to HUD for approval and send out an RFP to secure financing. It is optimistic but realistic to anticipate completing those three items in 4 to 6 weeks. If financing cannot be secured there will be no project. If financing is difficult to secure the term of the financing could be shortened. Major, national banks as well as local banks will be contacted. IV. UNSCHEDULED VISITORS None V. MINUTES A. Regular Meeting held May 5, 2010. COMMISSIONER BRADSHAW MOVED TO ACCEPT AND APPROVE THE MINUTES OF THE REGULAR MEETING OF THE ENGLEWOOD HOUSING 3 • • • AUTHORITY BOARD OF COMMISSIONERS HELD MAY 5, 2010 COMMISSIONER HAYNES SECONDED THE MOTION . Ayes: Nays: Arterburn, Bradshaw, Haynes, Carter None Abstained : None Absent: Hara The Chair declared the motion carried . VI. DIRECTOR'S REPORT A. Narrative Comcast's reduced service to the residents receiving basic cable was discussed. Resident's are able to contract directly with either Direct TV or DISH but the housing authority cannot off er these services to the residents under the continuing agreement with Comcast. 792 applications were received for the Douglas County Section 8 HCV program. EHA has not received a response to the appeal of the SEMAP score. EHA is surveying the Section 8 landlords to determine the number of accessible units available through just that group . This is pertinent information in the application for senior designation of Orchard Place. B. Financial Reports The Normandy fund is now completely closed. The IRS returned the fee they had charged EHA for submitting paper I 099 forms. C. Program Reports There were no questions. VII. DISCUSSION ITEMS, MOTIONS AND RESOLUTIONS A. Resolution 8 Approval to Submit Application to the U.S. Department of Housing and Urban Development to Participate in an Energy Performance Incentive Program and Authorization to Negotiate and Execute a Contract with a Financing Company and Negotiate and Execute an Energy Services Agreement . 4 • • • Chair Arterburn stated he liked JCI's proposal. Commissioner Bradshaw was impressed with the presentation and proposal and stated that doing nothing was not an option. Commissioner Carter liked the proposal noting that the buildings needed upgrading and the updating would improve living conditions. The project was too big for EHA staff to undertake. Dawn Shepherd noted JCI's expertise ; Chairman Arterburn noted the savings guarantee. HUD favores the use of energy performance contracts. Vice Chair Hara had emailed the board prior to the meeting that he was in favor of approving the project with JCI. Mayor Woodward noted that this opportunity currently exists but may not at a later time. He also noted that JCI should be a good project manager. Chairman Arterburn believed EHA should be able to secure financing at 5% interest. Commissioner Bradshaw stated the investment in the ECMs would be good for the residents . Mayor Woodward noted that the rate of increase in utilities will likely be higher than 3%. MOTION COMMISSIONER BRADSHAW MOVED TO APPROVE RESOLUTION 8 APPROVAL TO SUBMIT APPLICATION TO THE U .S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TO PARTICIPATE IN AN ENERGY PERFORMANCE INCENTITIVE PROGRAM AND AUTHORIZATION TO NEGOTIATE AND EXECUTE A CONTRACT WITH A FINANCING COMPANY AND NEGOTIATE AND EXECUTE AN ENERGY SERVICES AGREEMENT. COMMISSIONER HA YNES SECONDED THE MOTION . Ayes: Nays: Abstained: Absent: Arterburn, Bradshaw, Haynes , Carter None None Hara The Chair declared the motion carried . B. Resolution 9 Approval to Negotiate and Execute an Energy Services Agreement and to Execute and Negotiate a Contract with a Financing Company. MOTION COMMISSIONER HA YNES MOVED TO APPROVE RESOLUTION 9 APPROVAL TO NEGOTIATE AND EXECUTE AN ENERGY SERVICES AGREEMENT AND EXECUTE AND NEGOTIATE A CONTRACT WITH A FINANCING COMPANY. COMMISSIONER CARTER SECONDED THE MOTION . 5 • • • Ayes: Nays: Arterburn, Bradshaw, Haynes, Carter None Abstained: None Absent: Hara The Chair declared the motion carried. VIII. INFORMATION AGENDA There was no discussion IX. GENERAL DISCUSSION A. Commissioner's Choice Commissioner Bradshaw will provide new trail maps to the board. She discussed her teaching schedule during the summer. Chair Arterburn thanked the board for their work tonight. B. Director's Choice All issues were addressed . C. Council Communication Mayor Woodward discussed an upcoming study session, the financing of the Ameresco EPC and upcoming state legislation. X. ADJOURNMENT Chair Arterburn declared the meeting adjourned at 7:00 p.m. Rodger Hara, Vi e hai Englewood Hous g Authority Board of Commissioners 6