Housing Authority

REGULAR MEETING OF THE HOUSING AUTHORITY OF THE CITY OF MIDDLETOWN February 10, 2025 The Regular Meeting of the Housing Authority of the City of Middletown was held in the conference room at 40 Broad St., via in person attendance, and remotely through Teams (remote participates were provided a dial in number for audio, only) on Monday, February 10, 2025. Chairman Cacciola called the meeting to order at 5:00 p.m. and called the roll. PRESENT: Phil Cacciola, Chairman; Larry Riley, Commissioner; Brian Gartner, Commissioner; Senova Stone; Commissioner ALSO PRESENT: Ben Bare, Secretary; Christine Juraska, Finance Manager; Jason Lewellyn, Esq., Lori Vasi; ABSENT: Al Santostefano, Vice Chairman PUBLIC SESSION: No public comments FOLLOW-UP REPORT: None APPROVAL OF MINUTES: On motion by Commissioner Riley, seconded by Commissioner Gartner, it was unanimously voted to approve the minutes of the January 2, 2025, Special Meeting and the January 13, 2025 Regular Meeting. APPROVAL OF BILLS: On motion by Commissioner Stone, seconded by Commissioner Riley, it was unanimously voted to approve the bills as submitted. EXECUTIVE DIRECTOR’S REPORT: Mr. Bare reported that he has met with the mayor and attended one of his staff meetings. They discussed the need to fill some Commissioner appointments soon. The required notice for Tenant Commissioner has been sent out with a reply date of February 16, 2025. We will be using a State P credit card for purchases, which allows accumulation of points and rebates at the end of the year and allows for greater control over spending than a traditional business credit card. The Admissions and Occupancy Policy (ACOP) has been updated to be HOTMA compliant and will be going out for public hearing/review for a significant amendment update. The Administrative Plan for Section 8 has also been amended but will not require a public hearing. There has been significant procurement activity over the last month as well. ACCOUNTS RECEIVABLE: No Report LEGAL ACTION: Atty. Lewellyn reported on the Legal Report of 1/31/25. In January, two new Summary Process actions were filed with the court and 3 Pretermination Notices were issued. Two cases entered in stipulations with non-final stays. Atty Lewellyn also reported on the current litigation matters that are pending. Several CHRO matters are currently being handled by outside counsel and CHRO is investigating the claims of the employees. There is also a wage-an hour action pending in Superior Court. Atty Shea of Jackson and Lewis P.C is handling this case, which is in the discovery phase. Atty. Lewellyn also reported on the foreclosure of mechanic’s lien action brought by an outside contractor, A. Secondino and Sons, related to the Marino Manor expansion and the subsequent work that was done to remediate the water damage. The Housing Authority has responded to discovery requests. We have sent discovery requests to Plaintiff. This is a unique case in that there is a dispute on who had possession of the new units when water damage occurred. Attorney Lewellyn reported that the Housing Authority maintains it was never provided a bill, Monthly Meeting Minutes 2/10/25 Page 2 LEGAL ACTION (continued) request for payment or change order related to the remediation. A mechanic’s lien was filed on the land records and a foreclosure action started. Mediation has been discussed, but not scheduled. . There were no collections for the month of January. FINANCIAL: Ms. Juraska presented the LIPH (Federal), State Housing and HCV budgets, highlighting the components for the Federal programs. Mr. Bare and Ms. Juraska pointed out that LIPH is budgeted for a loss of approximately $633,000 in the upcoming fiscal year but that there were reserves to cover the loss. The loss is largely attributable to very high salary cost through June of 2025 and the one-time costs related to assessing MHA operations and finances, bringing procurements current (there are many expired contracts), and other related items. These costs are expected not to recur in future years and LIPH should return to profitability. Mr. Bare reported that staff raises are budgeted but will not be approved until the March meeting of the Board. On Motion by Commissioner Riley, seconded by Commissioner Stone, it was unanimously voted to adopt Resolution 2025-8, and waive reading of the same. HOUSING AUTHORITY OF THE CITY OF MIDDLETOWN RESOLUTION NO. 2025-8 Regarding Approval of 2025-2026 LIPH and HCV Budgets WHEREAS, the Board of Commissioners of the Housing Authority of the City of Middletown (“Authority”) considers and approves budgets for its low-income public housing and housing choice voucher programs on an annual basis; and WHEREAS, Authority staff has drafted proposed budgets for the low-income public housing and housing choice voucher programs and those proposed budgets are attached to this resolution; and NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of the City of Middletown, at its Regular Meeting held on Monday, February 10, 2024, at 40 Broad Street in Middletown, Connecticut, do hereby approve the attached budgets as the 2025-2026 budgets for the Authority low-income public housing and housing choice voucher programs. PASSED, ADOPTED, AND APPROVED this 10th day of February, 2025. ATTEST: ______________________________ ________________________________ Phil Cacciola Ben Bare Chairperson Executive Director Reviewed and Approved as to Legal Sufficiency: ________________________________________ Jason Lewellyn General Counsel SECTION 8: Mr. Bare informed the board of the Section 8 funding shortfall. The units in place numbers went up due to PBV lease ups through Glastonbury Housing Authority. The department has a significant backlog on recertifications. Monthly Meeting Minutes 2/10/25 Page 3 PERSONNEL: Mr. Bare informed the Commission that the accountant, Jason Williams resigned, and that the Assistant Director, Marie Webster, also resigned. The position opening for Assistant Director has been posted and responses are due by the end of next week. The Finance Department is currently getting help from another staff member who is doing data entry and bookkeeping, and is receiving overtime at the exact same cost as hiring a temp (within about a nickel per hour). Mr. Bare indicated that the various budgets also include salary additions for up to two additional maintenance personnel as well as up to two additional HCV personnel. It is unlikely that two HCV personnel will be hired, and it is possible that the salary for the second potential person would be used to bring a significant (pre-existing to Mr. Bare) HCV recertification backlog current. MAINTENANCE: Mr. Bare met with the tenants of Sbona Tower. He is working with Stephen Hughes in maintenance to address some of the issues that were brought up. He does plan to meet with residents of the other properties soon and has committed to meet with the Sbona residents monthly. MODERNIZATION: There was a bid opening for the Traverse Square siding project. The contract was awarded to Ahova Home Improvement LLC. Future projects include switchgear at Sbona Tower, and the fire alarm system in Sbona Tower. The lease with MGRS as well as the sublease to Charles IT ends at the end of February. MGRS has decided not to renew their lease with MHA. We are in the process of drafting a new, short term, lease directly with Charles IT that would only be for a limited time to allow them to move to new location. Charles IT has indicated that it would like to continue a leasing relationship with MHA after they move out their main operation and MHA has indicated it will not discuss that possibility until the current short-term lease is completed. SPECIAL REPORTS: None OLD BUSINESS: None NEW BUSINESS: Mr. Bare presented Resolution 2025-4 - Approval for Certain Contracts. This resolution ensures that all contracts are approved the correct way. Over the past couple of years the Board has approved contracts, before that it appears none were approved. The current procurement policy allows the Director to contract without Board approval. The contracts in the resolution are being procured under the old policy and this resolution makes it clear that is the case and that the Director can finalize the contracts without further Board approval. Some of these include audit, tax and other financial reporting advisory services, legal services, full-service Human Resources, financial audit services, insurance broker/risk management consultant, Traverse Square siding replacement, and procurement services. Mr. Bare explained the need for each contract briefly, many of them are to replace expired contracts, the Procurement Assistance contract is set up to put procedures in place to make sure MHA stays on top of contracting going forward and will also provide assistance with bringing all of the MHA contracts current. On motion by Commissioner Gartner, seconded by Commissioner Stone, it was unanimously voted to adopt Resolution 2025-4, and waive reading of the same. Monthly Meeting Minutes 2/10/25 Page 4 HOUSING AUTHORITY OF THE CITY OF MIDDLETOWN RESOLUTION NO. 2025-4 Regarding Executive Director Approval of Certain Contracts WHEREAS, the Board of Commissioners of the Housing Authority of the City of Middletown (“Authority”) has generally delegated approval of contracts to the Authority Executive Director pursuant to its Procurement Policy; and WHEREAS, the Board of Commissioners will be considering replacement of the current Procurement Policy in Authority Resolution 2025-7 during its February 10, 2025 Regular Meeting; and WHEREAS, the Authority is currently soliciting or has received responses and is evaluating proposals for a number of services (the “Services”) in the following areas: 1. Audit, Tax and Other Financial Reporting Advisory Services; 2. Legal Services; 3. Full-Service Human Resources; 4. Housing Consultant Services; 5. Financial Audit Services; 6. Insurance Broker/Risk Management Consultant; 7. Traverse Square – Siding Replacement; 8. Procurement Services WHEREAS, Authority staff estimated the cost of each potential Service contract prior to advertising and have otherwise followed the Authority Procurement Policy; and WHEREAS, contracts related to the Services will all be awarded in accordance with the current Procurement Policy; and WHEREAS, the Services were all solicited under the current Procurement Policy and should be approved and executed pursuant to the current Procurement Policy to avoid any confusion; NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of the City of Middletown, at its Regular Meeting held on Monday, February 10, 2024, at 40 Broad Street in Middletown, Connecticut, do hereby authorize the Executive Director to approve, negotiate and execute contract awards and contracts for the Services pursuant to the terms of the current Procurement Policy. PASSED, ADOPTED, AND APPROVED this 10th day of February, 2025. ATTEST: ______________________________ ________________________________ Phil Cacciola Ben Bare Chairperson Executive Director Reviewed and Approved as to Legal Sufficiency: _________________________________________ Jason Lewellyn General Counsel Monthly Meeting Minutes 2/10/25 Page 5 NEW BUSINESS cont. Mr. Bare presented Resolution 2025-5 – Proposed Bylaws. The proposed bylaws were submitted to the board for review over a week ago to satisfy the notice of amendment provisions in the current bylaws. Mr. Bare highlighted the more significant changes and agreed to follow up with Commissioner Gartner on a question related to the termination of Commissioner provisions. One important change is that the Board will no longer approve bills in meetings. Once budgets are adopted, staff will pay bills as they come in. If a budget changes, then the Board would be involved in potentially approving a change. On motion by Commissioner Riley, seconded by Commissioner Stone, it was unanimously voted to adopt Resolution 2025-5, and waive reading of the same. HOUSING AUTHORITY OF THE CITY OF MIDDLETOWN RESOLUTION NO. 2025-5 Regarding Approval of Amended and Restated Bylaws WHEREAS, the current Bylaws (the “Bylaws”) of the Housing Authority of the City of Middletown (“Authority”) are undated and appear to have been last updated around 2008; and WHEREAS, a copy of the Bylaws is attached to this resolution for reference; and WHEREAS, the Bylaws are out of date and do not reflect current operational conditions or industry best practice; and WHEREAS, Authority staff have drafted an updated set of bylaws (the “Proposed Bylaws”) and a copy of the Proposed Bylaws are attached to this resolution for reference; and WHEREAS, the Proposed Bylaws reflect current operational conditions and industry best practice while providing the Board of Commissioners greater administrative flexibility; NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of the City of Middletown, at its Regular Meeting held on Monday, February 10, 2024, at 40 Broad Street in Middletown, Connecticut, do hereby approve the attached Proposed Bylaws of the Authority. PASSED, ADOPTED, AND APPROVED this 10th day of February, 2025. ATTEST: _______________________________ ________________________________ Phil Cacciola Ben Bare Chairperson Executive Director Reviewed and Approved as to Legal Sufficiency: _________________________________________ Jason Lewellyn General Counsel Monthly Meeting Minutes 2/10/25 Page 6 Mr. Bare presented Resolution 2025-6 – Section 3 Plan and Related Materials. This a pure regulatory plan. Housing Authorities are required to have a Section 3 Plan, which changed in 2021 and rendered any existing Section 3 Plan obsolete. This is an update to bring our operation into compliance with the provisions of Section 3 of the Housing Act. On motion by Commissioner Gartner, seconded by Commissioner Riley, it was unanimously voted to adopt Resolution 2025-6 and waive reading of the same. HOUSING AUTHORITY OF THE CITY OF MIDDLETOWN RESOLUTION NO. 2025-6 Regarding Approval of Section 3 Plan and Related Materials WHEREAS, The purpose of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701u) as amended by the Housing and Community Development Act of 1992 (“Section 3”), is to ensure that employment and other economic opportunities generated by certain U.S. Department of Housing & Urban Development (HUD) financial assistance provided to the Authority, to the greatest extent feasible, and consistent with existing Federal, State, and local laws and regulations, are directed to Low-Income and Very Low-Income persons, particularly those who are recipients of government assistance for housing, and to business concerns that provide economic opportunities to Low-Income and Very Low-Income persons; and WHEREAS, the Housing Authority of the City of Middletown (“Authority”) is required to maintain a current Section 3 Plan and related materials to comply with Section 3; and WHEREAS, drafts of a Section 3 Plan and related materials are attached to this resolution for reference; NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of the City of Middletown, at its Regular Meeting held on Monday, February 10, 2024, at 40 Broad Street in Middletown, Connecticut, do hereby approve the attached Section 3 Plan and related materials as the Section 3 Plan and related materials of the Authority. PASSED, ADOPTED, AND APPROVED this 10th day of February, 2025. ATTEST: _______________________________ ________________________________ Phil Cacciola Ben Bare Chairperson Executive Director Reviewed and Approved as to Legal Sufficiency: _________________________________________ Jason Lewellyn General Counsel Monthly Meeting Minutes 2/10/25 Page 7 Mr. Bare presented Resolution 2025-7 – Procurement Policies. These proposed policies split the procurement into two buckets, one for LIPH and State Housing, and one for everything else. This would ensure that the state statutory and regulatory requirements are met where necessary, and that the authority has flexibility to procure more efficiently where those regulatory requirements do not apply. The policy also changes procurement thresholds and generally modernizes what the authority had. On motion by Commissioner Stone, Seconded by Commissioner Riley, it was unanimously voted to adopt Resolution 2025-7, and waive reading of the same. HOUSING AUTHORITY OF THE CITY OF MIDDLETOWN RESOLUTION NO. 2025-7 Regarding Approval of Procurement Policy Revision WHEREAS, the Housing Authority of the City of Middletown (“Authority”) maintains a Procurement Policy which was last revised by the Authority Board of Commissioners in September of 2018 (the “Current Procurement Policy”); and WHEREAS, there have been many regulatory and industry procurement related changes since 2018; and WHEREAS, instead of revising the Current Procurement Policy, replacement of it with both a Federal- Funds and DOH-Housing Procurement Policy as well as a Non-Federal Funds Procurement Policy will increase administrative efficiency and likely save contracting cost; and WHEREAS, the Federal Funds and DOH-Housing Procurement Policy will cover all Authority expenditures of federal funds utilized to support the low-income housing program and certain related expenditures as well as expenditures to support DOH-Housing; and WHEREAS, the more administratively efficient Non-Federal Funds Procurement Policy will cover all other Authority expenditures of funds (for example, contracting with HCV only funds); and WHEREAS, copies of the proposed Federal Funds and DOH-Housing Procurement Policy as well as the proposed Non-Federal Funds Procurement Policy are attached to this resolution for reference; and WHEREAS, Authority Resolution 2025-4 authorizes the Executive Director to make contract award, negotiate and execute contracts for certain Services solicited under the Procurement Policy which are currently still advertising or are in the process of proposal review and award: NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of the City of Middletown, at its Regular Meeting held on Monday, February 10, 2024, at 40 Broad Street in Middletown, Connecticut, do hereby approve the attached Federal Funds Procurement and DOH-Housing Policy and Non-Federal Funds Procurement Polices as the procurement policies of the Authority for all procurements going forward. The Board acknowledges that the Current Procurement Policy controls the procurement of Services as described in Authority Resolution 2025-4. PASSED, ADOPTED, AND APPROVED this 10th day of February, 2025. ATTEST: ______________________________ ________________________________ Phil Cacciola Ben Bare Chairperson Executive Director Reviewed and Approved as to Legal Sufficiency: _________________________________________ Jason Lewellyn General Counsel Monthly Meeting Minutes 2/10/25 Page 8 Mr. Bare presented Resolution 2025-9 – Investment and Bank Administrative Control Changes. This resolutions change the signatories and controllers of certain accounts to include Ben Bare and Christine Juraska. The financial advisors responsible for the various accounts provided the language for the resolution so the authority should be in good shape to move forward with these approved. On motion by Commissioner Riley, Seconded by Commissioner Stone, it was unanimously voted to approve Resolution 2025-9, and waive reading of the same. HOUSING AUTHORITY OF THE CITY OF MIDDLETOWN RESOLUTION NO. 2025-9 Regarding Approval of Investment and Banking Administrative Control Changes WHEREAS, the Housing Authority of the City of Middletown (“Authority”) maintains investment accounts for certain of its funds with Financial Northeastern Companies (“FNC”); and WHEREAS, the Authority maintains an OPEB Trust Account with Raymond James (“RJ”); and WHEREAS, the FNC and RJ accounts still reflect the prior executive director as controller; and WHEREAS, with Ben Bare as the new executive director and with the recent return of Christine Juraska as Chief Financial Officer, the controller roles need to be updated; NOW, THEREFORE, BE IT RESOLVED, that the Board of Commissioners of the Housing Authority of the City of Middletown, at its Regular Meeting held on Monday, February 10, 2024, at 40 Broad Street in Middletown, Connecticut, do hereby A. Approve Ben Bare and Christine Juraska as controllers of the following accounts (the “Investment Accounts): 1. Raymond James Account # 15288656 2. FNC Accounts # 104317, 179756, 214892, 160434, 136798 B. Name Ben Bare and Christine Juraska as Trustees for the OPEB Trust Accounts held by RJ and ending in 55, 33, 73 and 87 (the “OPEB Trust Accounts”) C. Authorize Ben Bare and Christine Juraska to transact and request asset movements in the Investment Accounts and the OPEB Trust Accounts on behalf of the Authority. PASSED, ADOPTED, AND APPROVED this 10th day of February, 2025. ATTEST: ______________________________ ________________________________ Phil Cacciola Ben Bare Chairperson Executive Director Reviewed and Approved as to Legal Sufficiency: _________________________________________ Jason Lewellyn General Counsel OTHER BUSINESS: None There being no further business to come before the Commission, on motion by Commissioner Riley, seconded by Commissioner Stone; it was unanimously voted to adjourn the meeting 6:12 pm. __________________________________ Ben Bare Secretary