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, SEPTEMBER 17, 2018 The Commissioners of the Housing Authority of the City of Michigan City, Indiana held a regular board meeting on Monday, September 17, 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 4:30 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, Commissioner David McCray, and Commissioner Sean Fitzpatrick. 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. MINUTES: August 20, 2018 Chairperson Mock called for approval of the Board meeting minutes as presented to the Board. Commissioner Fitzpatrick motioned approval of the minutes as presented to the Board. Commissioner McCray seconded the motion. CARRIED DIRECTOR’S REPORT: Chairperson Mock called for discussion of the director’s report. Executive Director Thomas informed Board that no finance report exists due to fee accountant reassignment. She said that Utility Safety & Design, Inc. (USDI) arrived last week for certification training and will arrive on Monday to complete certification. In regards to the incident at Lakeland Estates Executive Director Thomas said that correspondence in the Board packet was sent to those residents involved. She said that a list of the vacant units totaling 10 units also is in the Board packet. She said that out of the 10 vacant units, 2 of the units are HUD approved under modernization resulting in 8 vacant units. In reference to the vacant units Commissioner Keating asked how long it will take to occupy the units. In reply, Executive Director Thomas stated that the Housing Authority’s main problem is that there are only 2 maintenance workers to rehab the units. Although there have been applicants arriving for maintenance positions, due to the pay and amount of work there has not been a lot of good candidates for the positions according to Executive Director Thomas. Chairperson Mock suggested that the personnel committee meet with Executive Director Thomas to eliminate this maintenance hiring problem with salaries in order to rehab the vacant units. She asked which unit is in dire need of rehab. Executive Director Thomas said a unit in dire need of rehab is 256 Merrihill Drive. Commissioner Fitzpatrick asked what are the major issues involving the units. Executive Director Thomas stated that the major issue involves units in which the families have resided for a long time. Commissioner Keating said that if the Housing Authority employs maintenance workers as employees, the salaries would be fixed by the contract. She that the Housing Authority could rent through an agency temporary employees and they will set the rate. With no further questions Commissioner Fine motioned approval of the Director’s report as presented to the Board. Commissioner Babb seconded the motion. CARRIED COMMITTEE REPORTS: Personnel Committee Chairperson Mock called for discussion of the personnel committee. She said that there are two issues to resolve including hiring someone to rehab the units and ensure that the director’s evaluation is completed by the end of October 2018. She held Commissioner Fine responsible for resolving the aforementioned issues. Commissioner Fine said that the union negotiations also should be resolved. Chairperson Mock stated that she would have a new committee assignment list at the next Board meeting and utilize rotation of commissioners on the various committees approximately every six months. OLD BUSINESS: Audit Results Chairperson Mock called for discussion of the audit results. Executive Director Thomas informed Board that in reference to an audit report submitted by auditor Goldie Roberts there were issues involving deficiencies in Section 8 file folders. Chairperson Mock asked that the asset committee meet to discuss the audit report. Executive Director Thomas explained to the Board that auditor Goldie Roberts audited the Housing Authority’s financial statements and the Michigan City Housing Development, Inc. (MCHDI) financial statements and combined both financial statements in a single report. She said that there should be two separate reports, one for the Housing Authority and one for MCHDI which is considered a separate entity. Chairperson Mock asked that asset committee wait until auditor Goldie Roberts has separated the financial statements before scheduling a meeting to review the audit report. Union Negotiations Chairperson Mock called for discussion of union negotiations and in answering Commissioner Fine’s question about the union process, she explained to Commissioner Fine that upon the personnel committee negotiating with the union, then the personnel committee presents a recommendation to the Board on how to proceed with the contract and then the Board would vote on that recommendation at that time. ` NEW BUSINESS: Schedule of Payment Standards and Fair Market Rents Chairperson Mock called for approval of the Schedule of Payment Standards and Fair Market Rents. She said that HUD issues the rental rates on an annual basis. Executive Director Thomas said that the Housing Authority pays 100 percent of payment standards. With no further discussion Commissioner Keating motioned to approve the Schedule of Payment Standards and Fair Market Rents effective October 1, 2018. Vice Chairperson Davis seconded the motion. RESOLUTION NUMBER 2018-20 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE THE ANNUAL SCHEDULE OF PAYMENT STANDARDS AND FAIR MARKET RENTS AS ISSUED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) WITH THE HOUSING AUTHORITY IN PAYMENT AT 100 PERCENT OF PAYMENT STANDARDS EFFECTIVE OCTOBER 1, 2018. AYES NAYS Carla Mock Yolanda Thomas-Davis Colleen Babb Virginia Keating William Fine David McCray Sean Fitzpatrick CARRIED Fiscal Year 2019 Operating Budget Chairperson Mock called for the review and approval of the estimated Fiscal Year 2019 Operating Budget. In presenting the operating budget to the Board, Executive Director Thomas explained that line item #130 is the operating income from rents funded at $467,088, and line item #210 is the administrative expense funded at $251,843 which includes employee wages, legal expenses. She said that tenant services is line item #250 funded at $6,000 and has not been utilized because no resident counsels exist. Line item #320 is utility allocated at $281,247 based upon last year’s total, and the maintenance department which includes wages, material and contract costs is allocated at $191,707, and according to Executive Director Thomas, page 2 of 4 with the inclusion of line item #440 employee benefit contributions the general expense balance has been altered, and with $9,000 set aside for maintenance expenses, the total operating expenditures are at $1,068,514. Executive Director Thomas stated that residual receipts are at $601,426 with estimated operating subsidy from HUD at $499,105 and with capital funds and management fees at $57,572 with a remaining deficit at $44,756. She said that she could review the budget to determine any costs to cut from the budget. Commissioner Keating inquired about the $601,426 in residual receipts. In response, Executive Director Thomas said that HUD funding is received based upon occupancy of units. She said that any vacant units over 60 days subtracts from funding received by HUD. Chairperson Mock asked that the operating budget be placed on the pending items list. PENDING ITEMS: Chairperson Mock called for review of the Michigan City Housing Authority pending items list. She said that the following issues should be added to the pending items list, (1) maintenance staffing (asset committee), (2) audit report review after two separate reports for Housing Authority and MCHDI have been established by auditor (asset committee), and (3) review of operating budget (asset committee). Commissioner Keating advised that bills be brought before the Board for review to determine what is being spent. She asked that the Board receive a list of each monthly bill payments and the amount paid each month which should go to the asset committee and that the Board should approve payments of the bills. Third Party Auditor Attorney Pichardo informed Board that he has left several messages and has not heard back from the third party auditor. He said that as soon as he receives a response he will draft a contract for Board review and approval. Pipeline Safety Attorney Pichardo stated that two maintenance employees have received certification training with USDI with one employee approved and the other employee pending approval. As soon as the other employee is certified another notice will go out to the tenants regarding actions to take during an emergency, and according to Attorney Pichardo, the tenants should contact the Housing Authority not NIPSCO. APPROVAL OF BILLS: PUBLIC COMMENTS: ADJOURNMENT: With no further business to bring before the Board, Chairperson Mock called for motion to adjourn the meeting. Vice Chairperson Davis motioned to adjourn the meeting. Commissioner Keating seconded the motion. The meeting adjourned at approximately 5:45 p.m. _____________________________________ Carla Mock, MCHA Chairperson ___________________________________ Norma Thomas, Executive Director ATTEST:  RESOLUTION NUMBER 2018-20 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE THE ANNUAL SCHEDULE OF PAYMENT STANDARDS AND FAIR MARKET RENTS AS ISSUED BY THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) WITH THE HOUSING AUTHORITY IN PAYMENT AT 100 PERCENT OF PAYMENT STANDARDS EFFECTIVE OCTOBER 1, 2018. WHEREAS, on an annual basis the United States Department of Housing and Urban Development (HUD) issues an update of its Schedule of Payment Standards and Fair Market Rents (FMR), and WHEREAS, the Housing Authority of the City of Michigan City will adhere to 100 percent of the payment standards of the FMR as referenced in the attached Exhibit A. NOW THEREFORE BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana approved the Schedule of Payment Standards and Fair Market Rents effective October 1, 2018 with the Housing Authority making payment at 100 percent of payment standards. Adopted this 17th day of September 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Vice Chairperson Yolanda Thomas-Davis __________________________________________________ Carla Mock, MCHA Chairperson ATTEST