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, OCTOBER 15, 2018 The Commissioners of the Housing Authority of the City of Michigan City, Indiana held a regular board meeting on Monday, October 15, 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 William Fine, and Commissioner Sean Fitzpatrick. Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting. Attorney Nelson Pichardo attended this meeting. Public in attendance included Wind Water Energy Conservation Business Development Manager Andrew Overmyer and ALCO-TV Representative Andre Steele. Housing Authority personnel in attendance included Executive Director Norma Thomas and Administrative Assistant Robin Fly. MINUTES: September 17, 2018 Chairperson Mock called for approval of the September 17, 2018 Board meeting minutes as presented to the Board. Vice Chairperson Davis motioned approval of the minutes and Commissioner Keating seconded the motion. CARRIED At this time Chairperson Mock called for changes to the agenda to include “Applegate & Company, PC Accountants” as an additional agenda item number three under new business and to include “Bank Forms” as an additional agenda item number four under new business. She also moved agenda item number two “Water and Energy to Move Forward with Financing” from under new business to agenda item number three under director’s report. DIRECTOR’S REPORT: Management Reports/Finance Report Chairperson Mock called for discussion of the director’s report. In reference to the Financial Report month ending July 2018 Executive Director Thomas informed the Board that the Housing Authority’s projected net rental income was $420,072 and the Housing Authority received $401,659 decreased by $18,413. She explained to the Board that the HUD operating subsidy requested for year 2018 was $510,417 with the Housing Authority receiving $354,883 to date. Executive Director Thomas said that the total anticipated low rent expense to date is $987,055 with expenses to date at $850,768 with a 16 percent decrease at $135,287 in comparison to last year. She said that decrease is due to vacant positions whereby salaries are no longer paid out along with other costs such as medical, dental and workers compensation. In regards to investment income the Housing Authority’s total investment income was $299 for 2018 with investment income received to date at $53 according to Executive Director Thomas. In response to the Board’s inquiry about the total investment income of $299 Executive Director Thomas explained to the Board that such income is an allotted investment based upon the Housing Authority 2019 budget. She said that a workbook is used whereby financial data is entered monthly and a program calculates how much is allotted for investment purposes. She stated that the investment is not in an account but is based upon what the Housing Authority is allowed for investment if required. Executive Director Thomas informed the Board that she has conversed with Lindsey Software about direct submission of financial information through software instead of via mail. Utility Bills Commissioner Keating stated that a disadvantage exists when developing the budget because the September 2018 budget has not been submitted. At that time Executive Director Thomas stated that copies of bills at the beginning of the month of September and October are in the board packet for review. She said that bills over $5,000 are to be approved by the Board and that the majority of those consist of NIPSCO and other utility bills. Chairperson Mock recommended giving authority to Executive Director Thomas to pay utility bills. Commissioner Keating motioned approval to allow the executive director to pay the utility bills and report to the Board actual bills paid. Commissioner Fine seconded the motion. RESOLUTION NUMBER 2019-01 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA FOR APPROVAL TO ALLOW THE EXECUTIVE DIRECTOR TO PAY UTILITY BILLS AND REPORT TO THE BOARD OF COMMISSIONERS THE ACTUAL UTILITY BILLS PAID. AYES NAYS Carla Mock Yolanda Thomas-Davis Virginia Keating William Fine Sean Fitzpatrick CARRIED Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting for a vote. Pipeline Safety Executive Director Thomas informed Board that in regards to pipeline safety both Maintenance Supervisor Barry Kelly and Maintenance Crew Leader Douglas McCormick have been certified for gas leak inspection but the paperwork is still pending, and that the newsletter will be sent out when paperwork has arrived. Commissioner Keating asked if the contract with SEH of Indiana has been signed. Executive Director Thomas said that the contract has not been signed. Attorney Pichardo said that he would review the contract which should only reflect SEH of Indiana’s mapping of the gas lines and inclusive of certain language involving rules and regulations. Commissioner Keating motioned that the amendment and endorsement of the contract with SEH of Indiana be completed by the end of this week. Commissioner Fitzpatrick seconded the motion. RESOLUTION NUMBER 2019-02 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE THE HOUSING AUTHORITY ATTORNEY’S REVIEW OF THE SEH OF INDIANA CONTRACT WITH THE HOUSING AUTHORITY MAKING ANY NECESSARY CHANGES TO THE CONTRACT BEFORE ENDORSEMENT. AYES NAYS Carla Mock Yolanda Thomas-Davis Virginia Keating William Fine Sean Fitzpatrick CARRIED Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting for a vote. Maintenance Positions Executive Director Thomas informed Board that in the last two weeks the Housing Authority interviewed two individuals for maintenance positions. She said that the individuals will be hired as part time temporary or full time temporary based upon their skills on a 60 day probation with a $10 per-hour rate and will be assigned a master maintenance test. In response to Commissioner Keating’s question about when the individuals would be hired, Executive Director Thomas stated that one individual would begin work tomorrow, and the other individual is pending hire based upon background check of his license. She said that one individual would be hired on a part time temporary basis and that his license had been suspended due to speeding in a school zone. At that time Commissioner Keating asked Attorney Pichardo to look up both individuals on Odyssey Criminal Records for a background check. Commissioner Fitzpatrick asked if the new hires will perform general maintenance tasks or were hired specifically to refurbish the units. In reply, Executive Director Thomas said that the new hires would perform all maintenance work needed. Chairperson Mock asked for a status report on this issue at the next Board meeting. Audit Results Executive Director Thomas said that she had a conversation with Goldie Roberts about separate audits, and that Goldie Roberts stated that because there are three board members on both the Housing Authority board and the MCHDI board, there is no need for separate audits. Executive Director Thomas said that a past OIG audit required establishment of a distinct separation between MCHA and MCHDI with MCHDI having to pay MCHA $22,000 every year based upon a repayment agreement. She said that separate bank accounts and tax id numbers exist for both the Housing Authority and MCHDI. Chairperson Mock said that Goldie Roberts indicated that the audit reports for MCHA and MCHDI would consist of two separate audits but under the same document cover. In response to Chairperson Mock’s inquiry about moving forward with audit reports involving auditor Goldie Roberts, Executive Director Thomas said that the auditor is waiting for response to issues such as Section 8 inspections, lack of strong internal control over the finance department, and late submission. Chairperson Mock asked that Executive Director Thomas email the Board when the information has been submitted to Goldie Roberts. With no further comments Commissioner Fine motioned to approve the Director’s report as presented to the Board. Commissioner Fitzpatrick seconded the motion. CARRIED Water and Energy Chairperson Mock called for discussion of Water and Energy financing. Wind Water Energy Conservation Business Development Manager Andrew Overmyer explained to the Board that the water and energy program is a HUD incentive program that allows housing authorities to obtain capital funds for improvements through energy efficiency. He stated that page three of the “HUD’s Energy Conservation Incentives: Energy Performance Contracting” explains the process of Wind Water Energy Conservation conducting an energy audit, guaranteeing the savings, borrowing money based upon those guaranteed savings with the borrowed money paying for equipment that will save on utilities. He said that the money saved repays the debt, a self-funding program. Funding according to project size is at $1,228,000 from the housing commission and the estimated annual savings is at $147,132, and due to various effects toward utilities with public housing, Wind Water Energy Conservation guarantees an annual savings of $132,419 with rebates at approximately $15,000 according to Mr. Overmyer. Mr. Overmyer informed the Board about the major capital improvements to include replacement of boilers at the quads and the main office and replacement of furnaces at Lakeland Estates and Scattered Sites. He said that other energy measures that will pay for themselves quickly include replacement of LED lighting, water fixtures, and thermostats. He said that $30,000 has been allocated toward replacement parts for boilers at the row houses. Mr. Overmyer explained to the Board that contingency money would go towards solving remediation issues involving moisture at the row houses by installing a Reme Halo In-Duct Air Purifier in the duct system to kill bacteria, mold and allergens and that insulation contractors would not begin work until the moisture remediation is completed. In reference to page 7 of “HUD’s Energy Conservation Incentives: Energy Performance Contracting”, Mr. Overmyer said that part of the operating subsidy is allocated toward utilities and that HUD will freeze the consumption levels and if rates increase, there will be an increase in the Housing Authority’s operating subsidy. On page nine of “HUD’s Energy Conservation Incentives: Energy Performance Contracting”, Mr. Overmyer informed the Board about the completed steps in the energy performing contracting process to include, an analysis to evaluate savings, an approved RFP by Board and HUD, Wind Water Energy Conservation chosen as WWEC and an energy audit. He said that the next steps involve HUD’s final approval and financing, construction installation (with 3% savings with Housing Authority as construction manager), and finally measurement and verification. With no questions Commissioner Keating motioned approval of Wind Water, and Energy Conservation’s request to petition HUD for the approval of the water and energy financing project. Vice Chairperson Davis seconded the motion. RESOLUTION NUMBER 2019-03 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE WIND WATER ENERGY CONSERVATION’S PETITION FOR HUD’S APPROVAL OF THE WATER AND ENERGY FINANCING PROJECT. AYES NAYS Carla Mock Yolanda Thomas-Davis Virginia Keating William Fine Sean Fitzpatrick CARRIED Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting for a vote. COMMITTEE REPORTS: Personnel Committee Union Negotiations Chairperson Mock called for discussion of the personnel committee. Commissioner Fine informed the Board that Commissioner McCray and himself met with the executive director to discuss the maintenance requirements involving maintenance personnel. He said that there was confusion about the committee’s responsibility and the Board’s approval in regards to union negotiations. In response, Chairperson Mock said that at the last Board meeting it was agreed upon that there would be additional discussion with the union. Attorney Pichardo stated that first the committee makes a recommendation based upon the initiation from the Board on the matter. Commissioner Fine motioned approval for the executive director to submit a letter stating the Housing Authority’s intentions to Teamsters Union Local 135. Commissioner Fitzpatrick seconded the motion. RESOLUTION NUMBER 2019-04 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO SUBMIT CORRESPONDENCE TO TEAMSTERS UNION LOCAL 135 SPECIFYING THE HOUSING AUTHORITY’S STANCE ON UNION NEGOTIATIONS. AYES NAYS Carla Mock Yolanda Thomas-Davis Virginia Keating William Fine Sean Fitzpatrick CARRIED Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting for a vote. Bank Forms Commissioner Fine as representative of the Asset Committee informed Board about bank forms awaiting appropriate Board endorsement, along with documentation to allow the Housing Authority to make payments electronically, and implementation of fraud protection software program entitled Positive Pay. Commissioner Keating explained to the Board that the Housing Authority issues pay checks and that individuals can change the amounts on those paper checks and that Positive Pay verifies all information before payment of any check. Commissioner Fine motioned approval for endorsement of bank forms and implementation of electronic payments and enactment of Positive Pay. Vice Chairperson Davis seconded the motion. RESOLUTION NUMBER 2019-05 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE SIGNING OF BANK FORMS, IMPLEMENTING ELECTRONIC PAYMENTS, AND APPLYING POSITIVE PAY FOR BANK TRANSACTIONS. AYES NAYS Carla Mock Yolanda Thomas-Davis Virginia Keating William Fine Sean Fitzpatrick CARRIED Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting for a vote. Third Party Auditor Vice Chairperson Davis informed Board that the Asset Committee met to discuss the Housing Authority’s financial audit and recommends the hiring of Applegate & Company, PC as a third party auditor to review the Housing Authority’s financial statements. Commissioner Keating requested the addition of a signature page to communicate to Applegate & Company, PC the Housing Authority’s acceptance of the agreement. Vice Chairperson Davis motioned to accept Applegate & Company, PC as the Housing Authority’s third party accountant to review the Housing Authority’s financials with the addition of a contract agreement for endorsement. Commissioner Fine seconded the motion. RESOLUTION NUMBER 2019-06 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE THE HIRE OF APPLEGATE & COMPANY, PC AS A THIRD PARTY AUDITOR OF THE HOUSING AUTHORITY’S FINANCIAL STATEMENTS.  AYES NAYS Carla Mock Yolanda Thomas-Davis Virginia Keating William Fine Sean Fitzpatrick CARRIED Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting for a vote. OLD BUSINESS: Fiscal Year 2019 Operating Budget Chairperson Mock called for discussion of the fiscal year 2019 operating budget. She stated that the Board is not capable of making a decision regarding the operating budget until receipt of the final financial statements month ending September 30, 2018 for year end. At that time Commissioner Keating motioned to place the fiscal year 2019 operating budget approval on the pending items list. Commissioner Fitzpatrick seconded the motion. RESOLUTION NUMBER 2019-07 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE PLACEMENT OF THE FISCAL YEAR 2019 OPERATING BUDGET ON THE PENDING ITEM LIST. AYES NAYS Carla Mock Yolanda Thomas-Davis Virginia Keating William Fine Sean Fitzpatrick CARRIED Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting for a vote. ` NEW BUSINESS: Request HUD to Place 212 Merrihill Drive in MOD Chairperson Mock called for approval to request HUD to place unit 212 Merrihill Drive at Lakeland Estates under modernization (MOD). Executive Director Thomas stated that she made a request to HUD to have 212 Merrihill placed under MOD for three years because the previous family living in the unit left the unit in significant damage with need of cabinets repair, bathroom remodel, and floor repair and said that Board approval is needed. In reply to Commissioner Fitzpatrick’s inquiry as to the length of time to refurbish the unit, Executive Director Thomas stated that the Housing Authority would have to contract the work out utilizing capital funds. Chairperson Mock requested a status update at the next Board meeting. Commissioner Keating motioned to approve the request to ask HUD to place unit 212 Merrihill Drive under MOD and on the pending item list. Commissioner Fitzpatrick seconded the motion. RESOLUTION NUMBER 2019-08 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO AUTHORIZE THE EXECUTIVE DIRECTOR TO REQUEST HUD APPROVAL TO PLACE UNIT 212 MERRIHILL DRIVE AT LAKELAND ESTATES UNDER MODERNIZATION (MOD). AYES NAYS Carla Mock Yolanda Thomas-Davis Virginia Keating William Fine Sean Fitzpatrick CARRIED Commissioner Colleen Babb and Commissioner David McCray did not attend this meeting for a vote. Chairperson Mock said that the housing managers need to seriously consider inspection of units due to too many issues with housekeeping. Commissioner Keating asked if the Housing Authority is seeking damages. Attorney Pichardo said that he would have to review the eviction judgment and said that damages are usually included in the eviction judgement. PENDING ITEMS: APPROVAL OF BILLS: PUBLIC COMMENTS: ADJOURNMENT: Chairperson Mock informed Board that the next meeting is scheduled on Monday, November 19, 2018 at 4:30 p.m. and there will an Asset Management Committee meeting on that day at 3:00 p.m. With no further business to bring before the Board Commissioners Fitzpatrick motioned to adjourn the Board meeting at approximately 5:25 p.m. Vice Chairperson Davis seconded the motion. _____________________________________ Carla Mock, MCHA Chairperson ___________________________________ Norma Thomas, Executive Director ATTEST:  RESOLUTION NUMBER 2019-01 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA FOR APPROVAL TO ALLOW THE EXECUTIVE DIRECTOR TO PAY UTILITY BILLS AND REPORT TO THE BOARD OF COMMISSIONERS THE ACTUAL UTILITY BILLS PAID. WHEREAS, in order to monitor the expenses of the Housing Authority to eliminate any excess spending toward an anticipated budget deficit, Board of Commissioners proposed that a list of all bills for payment be presented to the Board for review and approval, and WHEREAS, due to important time constraint to pay utility bills in a timely manner Board of Commissioners proposed immediate payment of utility bills, and WHEREAS, the payment of utility bills will be over $5,000. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana approved immediate payment of utility bills exceeding $5,000 by the executive director and that such payments are to be reported to the Board. Adopted the 15th day of October 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner William Fine __________________________________________________ Carla Mock, MCHA Chairperson ATTEST  RESOLUTION NUMBER 2019-02 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE THE HOUSING AUTHORITY ATTORNEY’S REVIEW OF THE SEH OF INDIANA CONTRACT WITH THE HOUSING AUTHORITY MAKING ANY NECESSARY CHANGES TO THE CONTRACT BEFORE ENDORSEMENT. WHEREAS, the Housing Authority has been cited for probable pipeline safety violations involving required adherence to rules and regulations by the Indiana Utility Regulatory Commission (IURC), and WHEREAS, the Housing Authority is required by IURC to have an Operation Qualification Plan enacted for pipeline safety and part of the plan consists of documented mapping system of the gas meters, and WHEREAS, the Board of Commissioners approved hire of Short Elliot Henderickson, Inc. (SEH) to provide pipeline safety mapping for the Housing Authority, and WHEREAS, upon submission of SEH of Indiana’s Master Agreement for Professional Services to the Housing Authority for review, the Board of Commissioners recommended the attorney review and make any necessary changes to the agreement before Housing Authority’s endorsement by the week ending workday of October 11, 2018. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana approved that the Housing Authority Attorney review and make any necessary changes to a contract agreement with SEH of Indiana to assist in mapping locations of the master natural gas meters before any endorsement. Adopted the 15th day of October 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner Sean Fitzpatrick __________________________________________________ Carla Mock, MCHA Chairperson ATTEST  RESOLUTION NUMBER 2019-03 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE WIND WATER ENERGY CONSERVATION’S PETITION FOR HUD’S APPROVAL OF THE WATER AND ENERGY FINANCING PROJECT. WHEREAS, the Housing Authority has implemented one of HUD’s energy conservation incentives involving an energy performance contract, and WHEREAS, the Housing Authority has chosen through RFP system Wind Water Energy Conservation to implement steps necessary for obtaining financing to install energy efficiency equipment with anticipation of guaranteed energy and finance savings in the future, and WHEREAS, Wind Water Energy Conservation has drafted an energy plan based upon an energy audit based upon Housing Authority’s energy need assessment, and WHEREAS, the energy finance project must be submitted to HUD for review and approval. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana approved the energy financing project by Wind Water Energy Conservation for submission to HUD for review and approval. Adopted the 15th day of October 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner Sean Fitzpatrick __________________________________________________ Carla Mock, MCHA Chairperson ATTEST  RESOLUTION NUMBER 2019-04 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE AUTHORIZATION FOR THE EXECUTIVE DIRECTOR TO SUBMIT CORRESPONDENCE TO TEAMSTERS UNION LOCAL 135 SPECIFYING THE HOUSING AUTHORITY’S STANCE ON UNION NEGOTIATIONS. WHEREAS, Teamsters Union Local 135 and the Housing Authority conduct annual union negotiations on behalf of the unionized maintenance personnel, and WHEREAS, the Housing Authority’s asset committee met on several occasions to discuss union negotiations, and WHEREAS, the asset committee recommended that the executive director submit correspondence to Teamsters Union Local 135 that specifically states the stance of the Housing Authority. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City has authorized the executive director to send correspondence to Teamsters Union Local 135 stating the Housing Authority’s stance on the negotiation issues. Adopted the 15th day of October 2018. Resolution moved by: Commissioner William Fine Resolution seconded by: Commissioner Sean Fitzpatrick __________________________________________________ Carla Mock, MCHA Chairperson ATTEST  RESOLUTION NUMBER 2019-05 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE SIGNING OF BANK FORMS, IMPLEMENTING ELECTRONIC PAYMENTS, AND APPLYING POSITIVE PAY FOR BANK TRANSACTIONS. WHEREAS, the Housing Authority’s endorsement of important banking forms is a necessary for proper operation of its financial payment transactions, and WHEREAS, the Housing Authority has proposed implementing payments through electronic process for timely response toward handling expenses, and WHEREAS, the Housing Authority deemed it necessary to implement Positive Pay program as a safety precaution to protect finance transactions from fraud, and WHEREAS, a minimal fee is assigned to Positive Pay. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City approved the endorsement of banking forms, electronic payments, and Positive Pay implementation for minimal fee. Adopted the 15th day of October 2018. Resolution moved by: Commissioner William Fine Resolution seconded by: Vice Chairperson Yolanda Thomas-Davis __________________________________________________ Carla Mock, MCHA Chairperson ATTEST  RESOLUTION NUMBER 2019-06 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE THE HIRE OF APPLEGATE & COMPANY, PC AS A THIRD PARTY AUDITOR OF THE HOUSING AUTHORITY’S FINANCIAL STATEMENTS. WHEREAS, the Housing Authority is required to have an annual audit of its financial statements, and WHEREAS, the Housing Authority Board of Commissioners approved the quote from auditor Goldie Roberts to audit the financial statements, WHEREAS, after the audit Goldie Roberts informed the Housing Authority of its incapability to issue an audit report with required foot notation as stipulated by HUD, and WHEREAS, Housing Authority recommended a third party accountant to review the audit by Goldie Roberts to ensure the Board of Commissioner’s understanding of this audit and to ensure the Housing Authority’s protection against any violation with the State Board of Accounts, and WHEREAS, as a third party auditor Applegate & Company, PC would present a contract agreement for proper endorsement by the Housing Authority, and WHEREAS, Applegate & Company would provide a total fee range from $2,500 to $10,000 and services provided will be billed at a standard hourly rate range from $42 to $174 per hour, and WHEREAS, Applegate & Company would perform detailed review, documentation, weakness evaluation and improvement implementation of the Housing Authority’s accounting record keeping processes. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City approved the hire of Applegate & Company, PC as a third party audit accountant of the Housing Authority’s financial statements. Adopted the 15th day of October 2018. Resolution moved by: Vice Chairperson Yolanda Thomas-Davis Resolution seconded by: Commissioner William Fine __________________________________________________ Carla Mock, MCHA Chairperson ATTEST  RESOLUTION NUMBER 2019-07 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE PLACEMENT OF THE FISCAL YEAR 2019 OPERATING BUDGET ON THE PENDING ITEM LIST. WHEREAS, the Housing Authority prepares an estimated fiscal year operating budget each year, and WHEREAS, Board of Commissioners recommended that the Housing Authority wait to receive the final financial statements month ending September 30, 2018 for the year end before finalizing the estimated fiscal year 2019 budget to present to the Board for approval. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City approved recommendation to place agenda item regarding fiscal year 2019 operating budget on the pending item list. Adopted the 15th day of October 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner Sean Fitzpatrick __________________________________________________ Carla Mock, MCHA Chairperson ATTEST  RESOLUTION NUMBER 2019-08 RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO AUTHORIZE THE EXECUTIVE DIRECTOR TO REQUEST HUD APPROVAL TO PLACE UNIT 212 MERRIHILL DRIVE AT LAKELAND ESTATES UNDER MODERNIZATION (MOD). WHEREAS, the Housing Authority has an approximate 30-60 day turnover refurbishment for a unit before HUD’s penalty for each day of vacancy is enacted, and WHEREAS, due to past family leaving unit 212 Merrihill Drive at Lakeland Estates in disrepair with much damage, repair to the unit would involve many days with the work contracted, and WHEREAS, the Housing Authority has an option to place the unit under modernization for a period of three years with being penalized as a vacancy unit if approved by HUD, and WHEREAS, agenda item 212 Merrihill Drive under modernization will be placed on the pending item list. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City approved authorization for the executive director to seek HUD approval for placement of unit 212 Merrihill Drive at Lakeland Estates under modernization (MOD) for three years for refurbishment with capital funding. Adopted the 15th day of October 2018. Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner Sean Fitzpatrick __________________________________________________ Carla Mock, MCHA Chairperson ATTEST