Housing Authority Board of Commissioners

MINUTES OF THE REGULAR MEETING OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA, HELD ON MONDAY, AUGUST 20, 2018 The Commissioners of the Housing Authority of the City of Michigan City, Indiana held a regular board meeting on Monday, August 20, 2018 at 4:30 p.m. The meeting was held at the Michigan City Housing Authority, 621 East Michigan Boulevard, Michigan City, Indiana 46360. The regular board meeting began at approximately 4:35 p.m. Commissioners who attended the meeting included Chairperson Carla Mock, Vice Chairperson Yolanda Thomas-Davis, Commissioner Virginia Keating, Commissioner Colleen Babb, Commissioner William Fine, and Commissioner David McCray. Commissioner Sean Fitzpatrick did not attend this meeting. Attorney Nelson Pichardo attended this meeting. Public in attendance included ALCO-TV Representative Andre Steele. Housing Authority personnel in attendance included Executive Director Norma Thomas and Secretary Robin Fly. MINUTES: July 16, 2018 Chairperson Mock called for approval of the Board meeting minutes as presented to the Board. Vice Chairperson Davis motioned approval of the minutes as presented to the Board. Commissioner Babb seconded the motion. CARRIED DIRECTOR’S REPORT: Chairperson Mock called for discussion of the director’s report. Executive Director Thomas informed the Board that at Boulevard Gardens four vacant units exists with one vacant unit under HUD approval and with two units vacant due to tenant’s deaths.. She stated that there are two vacant units at Lakeland Estates with a 98% occupancy rate. Executive Director Thomas said that last month was a Section 8 orientation class with 15 participants out of the approximately 100 letters that were sent out. She said that she attended the orientation class. In reference to the May 2018 and June 2018 Operating Expenditures Reports, Executive Director With specific reference to most recent report – June 2018, Operating Expenditures Report, Thomas explained to the Board that in working with a new fee accountant and orienting herself with the new format, the operating income for rents is $511,286.00, and the Housing Authority has received $349,902.16 for a total of 9 months. Other income in the amount of $196,366.00 consists of capital fund monies utilize for operating subsidies in year 2015 or year 2016, and according to Executive Director Thomas, this amount must be removed from the financial statements. In regards to administrative wages Executive Director Thomas said that the Housing Authority budgeted $332,406.00 and have already spent $197,390.00. She said that the total operating budget is $1,184,466.00 with the Housing Authority spending a total of $775,719 of that budget amount. On page 3 of the June 2018 Operating Expenditure Report Executive Director Thomas informed Board that there is a total net income loss of $80,976.30 and said that she would have to check with the fee accountant to determine where the loss is derived. Vice Chairperson Davis asked that the Board be updated immediately regarding the capital fund amount of $196,366.00, and requested Executive Director Thomas to send an email of the corrected balance sheet which could possibly affect the $80,976.30 net income loss. Chairperson Mock recommended that the Asset Management Committee (at which time she changed committee assignments on that committee to include Commissioner Keating, Commissioner Fine, and Vice Chairperson Davis) review the operating expenditures reports and investigate any other missing information with input from the fee accountant. In regards to the auditor Goldie Roberts Chairperson Mock said that after conversing with her about footnote notations in the audit report, Goldie Roberts informed Executive Director Thomas that she is unable to provide footnote notations because she would not be considered to be an independent auditor. Attorney Pichardo recommended hiring a third party auditor who is highly recommended and specializes in public sector accounting with a recommendation also from his law firm, Friedman & Associates. Chairperson Mock asked Attorney Pichardo to contact this third party auditor and to obtain cost fee to provide accounting services on behalf of the Housing Authority. Commissioner Keating said that she would like to approve hiring this auditor contingent upon the fees. Clarifying the need of a third party auditor, Attorney Pichardo explained to the Board that a third party auditor who specializes in public sector would ensure the Board’s understanding of the audit and would provide recommendations to move forward. Commissioner Keating stated that this third party auditor would also provide the Housing Authority protection in regards to the State Board of Accounts. With no further discussion Commissioner Keating motioned approval for Attorney Pichardo to contact a third party accounting firm and retain their services contingent upon an effective cost. Commissioner McCray seconded the motion. RESOLUTION NUMBER 2018-16 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE AUTHORIZATION FOR ATTORNEY NELSON PICHARDO TO CONTACT A THIRD PARTY ACCOUNTING FIRM FOR AUDITING SERVICES CONTINGENT UPON AN EFFECTIVE COST.  AYES NAYS Carla Mock Yolanda Thomas-Davis Colleen Babb Virginia Keating William Fine David McCray Commissioner Sean Fitzpatrick did not attend this meeting for a vote. CARRIED Chairperson Mock informed Board about an incident that occurred at Lakeland Estates. She said that Executive Director Thomas would meet with the individuals involved in the incident and that several families were involved in the incident. She said that the police arrived at the incident and receive no information thus unable to file a police report. Commissioner Keating inquired about vacant units and hiring status of the maintenance positions. In response to Commissioner Keating’s inquiry, Executive Director Thomas stated that at Boulevard Gardens four vacant units are attributed to 1 unit approved by HUD under MOD, 2 vacant units are attributed to tenant deaths with just one vacant unit in existence. She said that the Housing Authority is having a problem with hiring maintenance worker at the present rate, and recommended hiring outside sources. Executive Director Thomas stated that she met with representatives from South Bend, Gary and East Chicago Housing Authorities for recommendations as well as sending information to the City’s Human Rights Department and on Indeed.com and that most recent respondents lack maintenance work experience. She said that there is a recommendation to hire part time staff or residents. Commissioner Keating stated that funding is based upon the occupancy of units. Chairperson Mock recommended hiring residents to provide cleaning and painting services and suggested setting up interviews. With no further comments Commissioner Fine motioned approval of the Director’s report as presented to the Board. Commissioner Keating seconded the motion. CARRIED COMMITTEE REPORTS: OLD BUSINESS: Audit Results Chairperson Mock called for discussion of the audit results. Executive Director Thomas said that auditor Goldie Roberts would not provide footnote notations otherwise she would not be considered an independent auditor. Chairperson Mock asked if Goldie Roberts have submitted an audit report. In reply Executive Director Thomas said no and the report would be made available upon the Housing Authority using an outside source to do footnotes on behalf of the Housing Authority. In response to Chairperson Mock’s inquiry about paying the auditor Goldie Roberts who has not submitted an audit report, Executive Director Thomas said that an invoice has been submitted with the Housing Authority paying approximately $4,000 with remaining $3,000 that has not been paid. Executive Director Thomas stated that she would call auditor Goldie Roberts to obtain an audit report. Pipeline Safety Chairperson Mock called for discussion of pipeline safety. Attorney Pichardo stated that upon having a very productive meeting with two Indiana Utility Regulatory Commission’s (IURC) attorneys and engineers, a representative from Short Elliot Henderickson, Inc. (SEH), a representative from Utility Safety & Design, Inc. (USDI), Executive Director Thomas, and himself. He stated that the purpose of the meeting was to discuss the status of action regarding the pipeline safety penalty letter sent to the Housing Authority. He said that each area of concern in the letter was discussed with detailed plan provided on how to handle each concern. Attorney Pichardo said that the most important problem was the Housing Authority not having anyone on staff to handle gas leak calls. He said for now an individual from NIPSCO will be responding to the Housing Authority gas leaks until someone on staff is trained. There are training sessions scheduled for 2 Housing Authority employees on September 10th and 11th to respond to gas leaks, and according to Attorney Pichardo, a service announcement was handed out to each tenant providing information on who to call when confronted with a gas leak. Attorney Pichardo said that the main concern with pipeline safety is hiring someone as Master Meter Operator and the Housing Authority does not have anyone which is the reason the Board approved contracting with SEH. He said that after conversing with SEH, SEH will provide the mapping of locations as part of the plan and other policy and procedures to add to the master meter plan. USDI will draft an OQ similar to a manual plan and provide updates and provide other technical services on behalf of the Housing Authority with the Housing Authority providing a retainer for USDI according to Attorney Pichardo. Executive Director Thomas said the USDI submitted a total quote for $2,000 to train to workers and to include a $1,000 per month retainer fee to oversee pipeline safety operations on behalf of the Housing Authority with exception of a leak investigator for gas leaks. Attorney Pichardo recommended that the Housing Authority contract out with USDI to remain compliant with pipeline safety and that although USDI is unable to respond to gas leaks due to distance matters, USDI can provide training to staff to ensure the Housing Authority can solve gas leak problems and also serve as the deprogramming administrator to ensure everything is done in a timely manner. Attorney Pichardo informed Board that although USDI will handle the master meter operations, the Housing Authority technically remain the Master Meter Operator and retains liability for any problems. He said that there was a possibility of having NIPSCO become the Master Meter Operator; however, NIPSCO would have to replace all old pipes which is very expensive, approximately $500,000. Commissioner Keating said that specific required responsibilities that USDI will provide on behalf of the Housing Authority needs to be incorporated within the contract in detail and the contract with SEH needs to be modified. Chairperson Mock stated that after review of last month’s minutes there was no approval by the Board to contract with SEH. Commissioner Keating motioned to employ Short Elliot Henderickson, Inc. (SEH) to provide pipeline safety mapping on behalf of the Housing Authority. Commissioner Fine seconded the motion. RESOLUTION NUMBER 2018-17 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE HIRE OF SHORT ELLIOT HENDERICKSON, INC. (SEH) TO PROVIDING PIPLINE SAFETY LOCATION MAPPING WITH OTHER SPECIFIED POLICY AND PROCEDURE SERVICES. AYES NAYS Carla Mock Yolanda Thomas-Davis Colleen Babb Virginia Keating William Fine David McCray Commissioner Sean Fitzpatrick did not attend this meeting for a vote. CARRIED At that time Vice Chairperson Davis motioned to approve gas leaking training to 2 appropriate Housing Authority employees held on September 10th and 11th. Commissioner Keating seconded the motion. RESOLUTION NUMBER 2018-18 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE HIRE OF UTILITY SAFETY & DESIGN, INC. (USDI) TO TRAIN HOUSING AUTHORITY EMPLOYEES IN GAS LEAKS AND PERFORM THE SERVICES OF A DEPROGRAMMING ADMINISTRATOR FOR A TOTAL QUOTE OF $2,000 WHICH INCLUDES $1,000 PER MONTH RETAINER FEE FOR ADMINISTRATIVE TASKS INVOLVING PIPELINE SAFETY COMPLIANCE. a total quote for $2,000 to train to workers and to include a $1,000 per month retainer fee to oversee pipeline safety operations on behalf of the Housing Authority  AYES NAYS Carla Mock Yolanda Thomas-Davis Colleen Babb Virginia Keating William Fine David McCray Commissioner Sean Fitzpatrick did not attend this meeting for a vote. CARRIED ` NEW BUSINESS: Union Negotiations Chairperson Mock called for discussion of the union negotiations. Executive Director Thomas said that she spoke with other executive directors from other housing authorities to determine rate of pay for maintenance workers. She said that South Bend pays $15/per hour, East Chicago pays $17/per hour, and Gary pays $16/per hour. Commissioner Keating says that the Housing Authority should establish pay for general labor such as cleaning and painting. Executive Director Thomas said that general labor is $10/hour. PENDING ITEMS: Chairperson Mock called for review of the Michigan City Housing Authority pending items list. Executive Director Thomas informed the Board that she contacted the South Bend Housing Authority via email to discontinue the Memorandum of Understanding (MOU) and that the Housing Authority has hired a private contractor for inspections. Commissioner Keating motioned to remove MOU with South Bend inspectors. Vice Chairperson Davis seconded the motion. RESOLUTION NUMBER 2018-19 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE REMOVAL OF MEMORANDUM OF UNDERSTANDING (MOU) FOR CONTRACT HIRE OF HOUSING INSPECTOR FROM SOUTH BEND HOUSING AUTHORITY FROM PENDING ITEM LIST. AYES NAYS Carla Mock Yolanda Thomas-Davis Colleen Babb Virginia Keating William Fine David McCray Commissioner Sean Fitzpatrick did not attend this meeting for a vote. CARRIED Chairperson Mock asked for finalization of executive director’s evaluation before the next Board meeting. Attorney Pichardo advised placing the third party auditor on the pending items list. APPROVAL OF BILLS: PUBLIC COMMENTS: ADJOURNMENT: With no further business to bring before the Board, Chairperson Mock called for motion to adjourn the meeting. The meeting adjourned at approximately 5:45 p.m. _____________________________________ Carla Mock, MCHA Chairperson ___________________________________ Norma Thomas, Executive Director ATTEST:  RESOLUTION NUMBER 2018-16 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE AUTHORIZATION FOR ATTORNEY NELSON PICHARDO TO CONTACT A THIRD PARTY ACCOUNTING FIRM FOR AUDITING SERVICES CONTINGENT UPON AN EFFECTIVE COST. WHEREAS the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana approved auditing services of Goldie Roberts to audit all its accounts and records for twelve month period ending September 30, 2017 for total quote of $8,220.00, and WHEREAS Goldie Roberts performed the audit, and WHEREAS Goldie Roberts informed the Housing Authority that she is unable to provide notation footnotes and other information because providing such information would incriminate her as not being an independent auditor, and WHEREAS Housing Authority Attorney Nelson Pichardo recommended the Housing Authority hire a third party accounting firm to provide auditing services and advice, and WHEREAS, the hire of an accounting firm would be contingent on the hiring fee. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana authorized Attorney Nelson Pichardo to contact a third party accounting firm to provide auditing services contingent upon an effective cost. Adopted this 20th day of August 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner David McCray _______________________________________________ Carla Mock, MCHA Chairperson ATTEST:  RESOLUTION NUMBER 2018-17 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE HIRE OF SHORT ELLIOT HENDERICKSON, INC. (SEH) TO PROVIDING PIPLINE SAFETY LOCATION MAPPING WITH OTHER SPECIFIED POLICY AND PROCEDURE SERVICES. WHEREAS the Housing Authority of the City of Michigan City, Indiana is incompliant with the Indiana Utility Regulatory Commission (IURC) in respects to its pipeline safety program, and WHEREAS, the Housing Authority invited Short Elliot Hendrickson, Inc.(SEH) to its Board meeting held on July 16, 2018 to discuss how SEH as a multi-disciplinary engineering firm can provide pipeline safety services to assist the Housing Authority in being compliant with IURC, and WHEREAS, SEH is willing to provide mapping of locations and other policy and procedures specified in a contract involving pipeline safety master meter plan. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana approved the hire of Short Elliot Henderickson, Inc. (SEH) to provide primarily providing mapping of locations in regards to the master meter plan. Adopted this 20th day of August 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner Bill Fine _______________________________________________ Carla Mock, MCHA Chairperson ATTEST:  RESOLUTION NUMBER 2018-18 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE HIRE OF UTILITY SAFETY & DESIGN, INC. (USDI) TO TRAIN HOUSING AUTHORITY EMPLOYEES IN GAS LEAKS AND PERFORM THE SERVICES OF A DEPROGRAMMING ADMINISTRATOR FOR A TOTAL QUOTE OF $2,000 WHICH INCLUDES $1,000 PER MONTH RETAINER FEE FOR ADMINISTRATIVE TASKS INVOLVING PIPELINE SAFETY COMPLIANCE. WHEREAS the Housing Authority of the City of Michigan City, Indiana is incompliant with the Indiana Utility Regulatory Commission (IURC) in respects to its pipeline safety program, and WHEREAS, Utility Safety & Design, Inc. (USDI) provides pipeline safety services such as training staff for gas leaks, and WHEREAS, USDI has the qualifications to oversee all administrative and policy involving master meter plan, WHEREAS, USDI would charge a total quote of $2,000 to train 2 Housing Authority employees on gas leaks, and WHEREAS, included within the $2,000 quote is a $1,000 per month fee for other deprogramming administrative responsibilities involving pipeline safety master meter plan resulting in Housing Authority’s compliance with Indiana Utility Regulatory Commission’s (IURC) pipeline safety regulations, and WHEREAS upon hire of USDI the Housing Authority will remain liable as a Master Meter Operator. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana approved the hire of the Utility Safety & Design, Inc. (USDI) to provide training for 2 Housing Authority employees a total quote of $2,000 and to provide deprogramming administrative services for pipeline safety master meter plan and updates which includes a $1,000 per month retainer fee as part of the total $2,000 quote. Adopted this 20th day of August 2018. Resolution moved by: Vice Chairperson Yolanda Davis Resolution seconded by: Commissioner Virginia Keating _______________________________________________ Carla Mock, MCHA Chairperson ATTEST:  RESOLUTION NUMBER 2018-19 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE REMOVAL OF MEMORANDUM OF UNDERSTANDING (MOU) FOR CONTRACT HIRE OF HOUSING INSPECTOR FROM SOUTH BEND HOUSING AUTHORITY FROM PENDING ITEM LIST. WHEREAS the Housing Authority of the City of Michigan City, Indiana Board of Commissioners has established a pending items list to include assigned committees to a particular task for start and end date upon completion, and WHEREAS, MOU was placed on the items list on March 19, 2018, and WHEREAS, such item is removed because the Housing Authority will not seek to enter into a MOU with South Bend Housing Authority for its inspection services at this time. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana approved the removal of Memorandum of Understanding between the Michigan City Housing Authority and South Bend Housing Authority in regards to contracting out inspection services from the pending items list. Adopted this 20th day of August 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner Bill Fine _______________________________________________ Carla Mock, MCHA Chairperson ATTEST: