Public Improvement Trust

CITY OF HENDERSON PUBLIC IMPROVEMENT TRUST REGULAR MEETING MINUTES Wednesday, August 14, 2019 I. CALL TO ORDER Vice Chairman Ken Herman called the Public Improvement Trust meeting to order at 3:30 p.m. in the Mayor and Council Board Room, 4th Floor, 240 Water Street, Henderson, Nevada. II. CONFIRMATION OF POSTING AND ROLL CALL Rosa Reynolds, Administrative Analyst III, confirmed the Public Improvement Trust meeting had been noticed in compliance with the Open Meeting Law by posting the Agenda three working days prior to the meeting at City Hall, the Multigenerational Center, the Whitney Ranch Recreation Center, Fire Station No. 86, the Nevada Public Notice Website, the City of Henderson Website, and by mailing and emailing a copy of the Agenda to everyone appearing thereon on the Agenda Master Mailing List and Email List. Present: Vice Chairman Ken Herman Storm Ainsley Derek Muaina Randy Norton Jarod Van Wagoner Absent: None Staff: Victoria Dasis, Deputy City Clerk Wade Gochnour, Assistant City Attorney III Jim McIntosh, Chief Financial Officer Jessica Oneto, Accountant II Rosa Reynolds, Administrative Analyst III Guests: Derek Armstrong, Director of Economic Development and Tourism Diane Arvizo, Nevada Rural Housing Authority Bill Brewer, Nevada Rural Housing Authority Lisa Corrado, Asst. Director of Community Dev. and Services Steve Grierson, Former Trustee Lori Grossman, Senior Administrative Analyst Gilbert Medina, Community Development Grant Specialist Anthony Molloy, Interim Redevelopment Manager Ryan Patterson, Vintage Housing Inc. Public Improvement Trust Page 2 of 9 Wednesday, August 14, 2019 – Minutes Scott Shaver, Stradling Yocca Carlson & Rauth Sheri Valdez, Ovist and Howard David Vorce, Principal Redevelopment Fiscal Administrator III. PUBLIC COMMENT There were no public comments presented. IV. ACCEPTANCE OF AGENDA Vice Chairman Herman said NB-11 and NB-12 will be heard together and voted on separately. (Motion) Mr. Muaina introduced a motion to accept the agenda as amended. The vote favoring approval was unanimous. Vice Chairman Herman declared the motion carried. V. NEW BUSINESS NB-1 WELCOME AND INTRODUCTION OF NEW TRUSTEES CITY MANAGER'S OFFICE Welcome and introduction of Trustees Storm Ainsley, Randy Norton, and Jarad Van Wagoner. The Trustees introduced themselves and provided a brief overview of their backgrounds. NB-2 PRESENTATION RECOGNITION OF STEVE GRIERSON, CHAIRMAN CITY MANAGER'S OFFICE Recognize Chairman Steve Grierson for his years of service to the City of Henderson, Nevada Public Improvement Trust. Mr. Grierson spoke about his tenure on the Trust and expressed gratitude for the experience. Rosa Reynolds, Administrative Analyst III, thanked Mr. Grierson for his membership and gave him a letter of appreciation from Mayor March. Public Improvement Trust Page 3 of 9 Wednesday, August 14, 2019 – Minutes NB-3 PRESENTATION RECOGNITION OF CARON RICHARDSON, TRUSTEE CITY MANAGER'S OFFICE Recognize Trustee Caron Richardson for her years of service to the City of Henderson, Nevada Public Improvement Trust. Ms. Richardson was not in attendance; however, the Trustees spoke about her dedication and support to the Trust. NB-4 PRESENTATION RECOGNITION OF LORI GROSSMAN, SECRETARY CITY MANAGER'S OFFICE Recognize the service of Lori Grossman, Secretary, for her years of service to the City of Henderson, Nevada Public Improvement Trust. Lori Grossman, Senior Administrative Analyst, spoke about her tenure being the secretary for the Trust and thanked the City for the experience. Vice Chairman Herman thanked Ms. Grossman for her administrative support throughout the years serving as Secretary. Rosa Reynolds, Administrative Analyst III, thanked Ms. Grossman for her support and gave her a letter of appreciation from Mayor March. NB-5 ELECT CHAIRMAN CITY MANAGER'S OFFICE Election of one of the Trustees of the Public Improvement Trust to serve as Chairman of the Public Improvement Trust for a one-year term. (Motion) Mr. Muaina introduced to a motion to elect Ken Herman as Chairman of the Public Improvement Trust for a one-year term. The vote favoring approval was unanimous. Chairman Herman declared the motion carried. Note: Mr. Herman served as Chairman for the remainder of the meeting. Public Improvement Trust Page 4 of 9 Wednesday, August 14, 2019 – Minutes NB-6 ELECT VICE CHAIRMAN CITY MANAGER'S OFFICE Election of one of the Trustees of the Public Improvement Trust to serve as Vice Chairman of the Public Improvement Trust for a one-year term. (Motion) Mr. Norton introduced a motion to elect Derek Muaina as Vice Chairman of the Public Improvement Trust for a one-year term. The vote favoring approval was unanimous. Chairman Herman declared the motion carried. NB-7 ELECT TREASURER CITY MANAGER'S OFFICE Election of a Treasurer for the Public Improvement Trust to serve a one-year term. (Motion) Chairman Herman introduced a motion to elect Jim McIntosh, Chief Financial Officer, as Treasure of the Public Improvement Trust for a one-year term. The vote favoring approval was unanimous. Chairman Herman declared the motion carried. NB-8 ELECT SECRETARY CITY MANAGER'S OFFICE Election of a Secretary for the Public Improvement Trust to serve a one-year term. (Motion) Mr. Wagner introduced a motion to elect Rosa Reynolds, Administrative Analyst III, as Secretary of the Public Improvement Trust for a one-year term. The vote favoring approval was unanimous. Chairman Herman declared the motion carried. Public Improvement Trust Page 5 of 9 Wednesday, August 14, 2019 – Minutes NB-9 MINUTES PUBLIC IMPROVEMENT TRUST AUGUST 29, 2018 CITY MANAGER'S OFFICE Public Improvement Trust meeting minutes of August 29, 2018. (Motion) Chairman Herman introduced a motion to adopt the meeting minutes of August 29, 2018, as presented. The vote favoring adoption was unanimous. Chairman Herman declared the motion carried. NB-10 ANNUAL AUDIT REPORT CITY MANAGER'S OFFICE Accept the Annual Audit Report for fiscal year ending June 30, 2019, as prepared by the accounting firm of Ovist and Howard, CPAs and authorize the Chairman to sign the Management Representation letter. Sheri Valdez, Ovist and Howard, presented a summary of this item and stated the audit opinion was an unqualified opinion, and the financial statements were found to be fair and appropriately presented. (Motion) Mr. Van Wagoner introduced a motion to accept the Annual Audit Report for fiscal year ending June 30, 2019, as prepared by the accounting firm of Ovist and Howard, CPAs and authorize the Chairman to sign the Management Representation letter. The vote favoring approval was unanimous. Chairman Herman declared the motion carried. NB-11 RESOLUTION 2019 PRIVATE ACTIVITY BOND CAP CITY MANAGER'S OFFICE Resolution of the City of Henderson, Nevada Public Improvement Trust providing for the transfer of a portion of the City's 2019 Private Activity Bond Volume Cap to the Director of the Department of Business and Industry to be used by Vintage Housing Development, Inc. Note: NB-11 and NB-12 were heard together and voted on separately. Public Improvement Trust Page 6 of 9 Wednesday, August 14, 2019 – Minutes Ryan Patterson, Vintage Housing Development, Inc., gave a presentation on his company’s application for the City’s 2019 Private Activity Bond, and stated the proposed funds would support renovation and rehabilitation for the Vintage at Seven Hills Apartments complex. He said the renovations will include energy efficient flooring, cabinets, windows, and appliances in an effort to lower utility costs for tenants. Responding to a question by Mr. Norton regarding compliance with the State tax credit for low-income housing, Mr. Patterson said this property is outside of the original tax credit compliance date, being in its 16th year of the 30-year compliance period. He noted his company has never been out of compliance with this property, nor any other properties out of state. Responding to an inquiry by Mr. Norton regarding the energy efficient components of the renovations, Mr. Patterson said the windows will provide most of the savings, and that all the appliances will be updated to Energy Star. A discussion ensued regarding the apartment’s amenities and renovations of the project. Note: NB-12 was heard before a motion was taken on this item. (Motion) Mr. Muaina introduced a motion to adopt Resolution No. 159, for the Nevada Public Improvement Trust to transfer of a portion of the City's 2019 Private Activity Bond Volume Cap to the Director of the Department of Business and Industry to be used by Vintage Housing Development, Inc., in the amount of $11,500,000.00. The vote favoring approval was unanimous. Chairman Herman declared the motion carried. NB-12 RESOLUTION 2019 PRIVATE ACTIVITY BOND CAP CITY MANAGER'S OFFICE Resolution of the City of Henderson, Nevada Public Improvement Trust providing for the transfer of the City's 2019 Private Activity Bond Volume Cap to the Nevada Rural Housing Authority. Note: NB-11 and NB-12 were heard together and voted on separately. Bill Brewer, Nevada Rural Housing Authority, gave a presentation on the Nevada Rural Housing Authority’s application for the City’s 2019 Private Activity Bond, and stated the funds would go towards mortgage credit certificate program. Public Improvement Trust Page 7 of 9 Wednesday, August 14, 2019 – Minutes Mr. Brewer stated the Nevada Rural Housing Authority was unaware of another applicant for this bond, and would like to revise his request to be for the unused portion of the bond if the City does not have another use for the funds. Diane Arvizo, Nevada Rural Housing Authority, gave an in-depth presentation on the mortgage credit certificate program and provided an overview of the home-buying workshops the Nevada Rural Housing Authority provides. Chairman Herman opened the public hearing, asking if there was anyone present wishing to speak for or against NB-11 or NB-12. There being no one wishing to speak, the public hearing was closed. As requested by Mr. Muaina, Wade Gochnour, Assistant City Attorney III, clarified that the language in the backup for Resolution No. 160 was for the Nevada Rural Housing Authority’s original request, and the bond amount may be modified in the motion if the Trust chooses to. Scott Shaver, Stradling Yocca Carlson & Rauth, stated the City's 2019 Private Activity Bond Volume Cap is $16,164,276.33, and explained the Trust’s responsibility for the volume cap allocation. Responding to a question by Mr. Shaver regarding where the funds would be transferred, Ms. Arvizo stated the funds would be a direct transfer to the Nevada Rural Housing Authority; however, the Department of Business and Industry has the responsibility to file the transfer certificate. (Motion) Mr. Muaina introduced a motion to adopt Resolution No. 160, for the City of Henderson, Nevada Public Improvement Trust providing for the transfer of the City's 2019 Private Activity Bond Volume Cap to the Nevada Rural Housing Authority, in the amount of $4,664,276.33, and amend the language in Resolution No. 160 to conform to the $4,664,276.33 amount. The vote favoring approval was unanimous. Chairman Herman declared the motion carried. NB-13 FINANCIAL UPDATE CITY MANAGER'S OFFICE Review of the Public Improvement Trust financial documents Treasurer Jim McIntosh referred to the backup material titled Statement of Financial Position and stated the Trust has $150,813.71 in assets. He provided a summary of the Trust’s financial documents within the past year. Public Improvement Trust Page 8 of 9 Wednesday, August 14, 2019 – Minutes Mr. McIntosh introduced Jessica Oneto, Accountant II, who prepared and maintained the Trust’s financial statements. (Motion) Chairman Herman introduced a motion to approve the Public Improvement Trust financial documents. The vote favoring approval was unanimous. Chairman Herman declared the motion carried. VI. CHAIRMAN\MEMBER COMMENTS Mr. Norton recommended more outreach be done so various developers may apply for the City’s 2019 Private Activity Bond. Following an inquiry by Mr. Norton asking if Vintage Housing Development, Inc. was applying for a specific percent bond on the financing, Scott Shaver, Stradling Yocca Carlson & Rauth, stated he will research and provide that answer at a later time. Derek Armstrong, Director of Economic Development and Services, introduced himself and stated he is excited to learn about the bond processes in the City. Wade Gochnour, Assistant City Attorney III, stated the Trustees may request items on future agendas so staff can provide detailed information on a specific manner. Mr. Gochnour provided a brief overview of the Trust’s purpose and stated the Trustees may contact him for any further information. Following an inquiry by Mr. Norton regarding late bond applications, Mr. Shaver stated any applications submitted after September 1, 2019, will be forwarded to the State of Nevada for allocation. VII. SET NEXT MEETING No meeting was scheduled. VIII. PUBLIC COMMENT There were no public comments presented. Public Improvement Trust Page 9 of 9 Wednesday, August 14, 2019 – Minutes IX. ADJOURNMENT There being no further business to conduct, Chairman Herman adjourned the meeting at 4:29 p.m. Respectfully submitted, ____________________ Victoria Dasis, Deputy City Clerk