Informational Meeting

MINUTES Informational Meeting Tuesday, January 17, 2023 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, SD 57104 1. Call To Order Council Members Present: David Barranco, Sarah Cole, Alex Jensen (arr. 4:04 p.m.), Rich Merkouris, Greg Neitzert (arr. 4:07 p.m.), Marshall Selberg, Curt Soehl, Pat Starr Council Members Absent: None Council Chair Curt Soehl called the meeting to order at 4 p.m. 2. Committee/Commission Reports A. Accessible Housing Advisory Board: Wednesday, January 11, 2023 (Council Member Selberg) Council Member Marshall Selberg provided a meeting summary. He stated that the 2023 Action Plan, HUD plan, was unanimously approved; the HOME-ARP Allocation Plan and Consultation was discussed; a presentation was made regarding a one-year update on the 2026 Housing Action Plan; and Board leadership was elected. B. Urbanized Development Commission (UDC): Thursday, January 12, 2023 (Council Members: Barranco, Merkouris, Neitzert, Starr) There was no report. C. Homeless Task Force: Councilor Rich Merkouris (Council Members: Merkouris (Chair), Selberg, and Soehl) Merkouris said that he has been meeting with the Administration and looking into funding options for some of the Homeless Task Force recommendations. It was determined to prioritize funding for the Helpline. He said that he has been talking to members of the public; and hopes to be able to announce, in the next couple of weeks, some private contributions being partnered with City funds. Merkouris will be meeting with the Administration on Friday to discuss funding for the Helpline and Street teams. 3. Councilor Remarks  Soehl reminded the public to dig out their fire hydrants. 4. Presentations A. 22-03 Housing Cash Handling by Emily Trujillo Rodriguez, Internal Auditor Presentation: Approximately 5 minutes followed by discussion Soehl mentioned that this would be Trujillo Rodriguez's last presentation, since she has accepted a new job. He expressed his appreciation for the work that she has done. Trujillo Rodriguez began by providing some background on Housing. She said that Housing aims to help ensure decent, safe, and sanitary living conditions through programs that assist with repairs and improvements. Their programs include: Single-Family Rehabilitation, Neighborhood Revitalization, Rental Rehabilitation, Emergency Mobile Repair, and Public Safety Down Payment Assistance. Eligibility is based upon income guidelines; depending upon the specific program, a certain percentage of the median family income is required. A 2022 Action Plan was submitted and approved. The objective of the audit was to determine if cash collections are safeguarded, deposited in a timely manner, and accurately recorded. She said that they wanted to be able to have information from a complete year. The scope of the report had detailed testing of transactions from January 1, 2021 through December 31, 2021. There were three Findings from the audit. Finding 1: Lack of secured storage for cash assets. Trujillo Rodriguez said she was looking for checks, that were going out, to be stored in a secure location. None of the Housing Specialist currently maintain locked storage for checks during the workday. Checks are stored in file cabinets and not locked during business hours in line with best practices. Finding 2: Deposit slips did not indicate personnel performing the deposit. Detailed testing showed that deposits are not completed with an indicator as to which employee performed the deposit line with best practices. Detailed instructions for completing deposits are also not included in either the Housing policies nor the Finance city-wide policy. Finding 3: Lack of segregation of duties for deposits. If the Housing Technician is unavailable, the embedded Finance Accountant completes the deposit slips. That accountant is the same person who later prepares the Munis journal entries for deposits. Trujillo Rodriquez said she wanted to see these things segregated. Trujillo Rodriquez spoke about how their recommendations have already been implemented. In conclusion, there was no evidence of fraud, waste or abuse detected within the specific scope of this audit. There was no discussion. B. 22-05 Employee Reimbursements (Non-Travel) by Emily Trujillo Rodriguez, Internal Auditor Presentation: Approximately 5 minutes followed by discussion Trujillo Rodriguez began by providing background information of the audit. The City of Sioux Falls offers employees the ability to receive reimbursement for business expenses incurred on the job. The expense reimbursement program is currently governed by the City Accounts Payable Policy, Executive Orders and various collective bargaining agreements. This does not include employee reimbursement while in travel status which are processed separately and have their own City policy. The total amount reimbursed through the program in 2021 was approximately $45,510. She said the most common reimbursement benefits for employees are: Car allowance/mileage reimbursement, Education assistance,  Employee recognition program, and Tool allowances and boot allowances. The accounts payable process as a whole is monitored by Finance. And the individual types of reimbursements and various thresholds eligible for reimbursement are the responsibility of department management to monitor. Trujillo Rodriguez said the detailed testing of transactions were from January 1, 2021 through December 31, 2021; and there were no findings. Two opportunities did emerge. Opportunity 1: Dedicated Employee Reimbursements Policy. This would be an opportunity to strengthen internal controls and increase consistency/clarity, a dedicated policy for employee reimbursements would be best practice. Opportunity 2: Standardized form/cover sheet for reimbursements. The first recommendation has already been implemented. An Employee Reimbursement Policy and Procedure document addressing departmental, meeting and board expenses as well as non-travel expenses was drafted and communicated to employees in December. The second recommendation became effective on January 1, 2023. A standardized form was developed to allow the employee to provide details in regard to the reimbursement. The form was implemented in conjunction with the new Employee Non-Travel and Departmental Reimbursement Policies. In conclusion, it was determined that overall effective controls are in place and reimbursements comply with City policies, procedures and best practices. Particular areas of success include a detailed accounts payable policy and standardized accounts payable internal controls. The recommendations that were provided were based on leading practices and will provide additional assurance to mitigate the risk of potential fraud, waste and abuse related to employee reimbursements. Trujillo Rodriguez said there was no evidence of fraud, waste or abuse was detected within the specific scope of this audit. Discussion followed with Councilor David Barranco thanking Trujillo Rodriguez for her work and for making this process look easier and streamlined. C. 2026 Housing Action Plan - Year 1 Update by Logan Penfield, Housing Development Manager; and Jeff Nelson, Accessible Housing Advisory Board Chair Presentation: Approximately 15 minutes followed by discussion Penfield began by introducing Jeff Nelson, Accessible Housing Advisory Board Chair. Nelson spoke for a few moments. He said the board's main job is to vet information and that it’s an important part of what they do. Nelson spoke about home shortages, low inventory and high demand. None of those help with affordable housing. He said affordability is a lot harder now. The board is working on coming up with solutions. Background was provided on the 2026 Housing Action Plan, which was the culmination of a 7-month process that involved meetings with local stakeholders, city and county officials, state and local elected officials, and non-profit developers in the Sioux Falls region. This process took place from May-December of 2021, with the Plan being presented to the City at an Informational Meeting on January 4, 2022. The following recommendations were made: Utilize Tax Increment Financing for single-and multi-family housing projects; Utilize the Strategic Housing Fund to support housing projects and strategic land acquisition; Look at local zoning requirements and work to increase density in strategic areas; Identify infill opportunities and work with partners to address; Expand affordable housing stock through expansion of new and existing partnerships; Leverage city and federal funds to incentivize core redevelopment; and Explore and expand partnership opportunities (for- and non-profit organizations). Penfield said the original plan was broken into five brackets (Land, Workforce, Public Incentives & Partnerships,  Design & Building Standards, and Infrastructure). Penfield showed the updated plan and explained how some tasks have been started and finished. He spoke about Highlights from 2022. They were: a Single-Family Housing TIF; the Children's Inn/CDBG-CV Purchase and Renovation; the Sioux Falls Development Foundation Partnership; the General-ARPA funding to South Eastern Development Foundation; and the Veterans Community Project Groundbreaking. Penfield said there were ongoing programs that are being administered in house. The City of Sioux Falls Programs include: the Neighborhood Safety Grant Program; the Single-Family Rehabilitation Program; the Neighborhood Revitalization Program; the Rental Rehabilitation Program; Mobile Home Repair; and Public Safety Down Payment Assistance. He showed a chart that explained the various program funding. Penfield reviewed the 2022 Sioux Falls Housing Program statistics. Affordable Housing Solutions, South Eastern Development Foundation, Habitat for Humanity, the Sioux Falls Development Foundation, Private Developers, Minnehaha County, Inter-Lakes Community Action Partnership, the Bishop Dudley House, Children's Inn, and the Glory House, are additional partners that will help accomplish the 2026 Housing Plan. Penfield reviewed a chart that showcased the Sioux Falls Housing Programs, Partnerships and Tools. A chart featuring HUD Income Limits, for programs, was discussed. Penfield concluded his presentation by speaking about the 2023 Projects and Goals, which are either in development or that they hope to see soon. The list includes: a Tax Credit Housing Project with Lloyd Companies; Glory House/MacArthur Foundation Proposed Project; HOME-ARP Allocation; Homeless Task Force Recommendations; Housing Action Team's ongoing effort to create a Housing Trust Fund; Strategic Partnerships with for- and non-profit developers; HOME/CDBG Funds; New reporting software for Housing; Core Neighborhood and Minnesota Avenue Redevelopment; New Partnerships for High School CTE programs. Discussion followed regarding: how long the average wait time is to hear back regarding approval of an application; a housing trust fund; the South Dakota Legislative session; appropriately and utilizing Legislative funds; zoning changes for increasing Downtown density; the MacArthur grant and the Glory House; regulations regarding short term furnished rentals; the size of the City's Housing Division; frustrations with funding; challenges and timelines regarding HUD funding; the great job that staff is doing; HOME-ARP funding; and Walnut Street. 5. Public Comment Scott Ehrisman spoke about bus service for the entire City, rental housing, density of Downtown for housing; and the importance of the Internal Auditor's Office. 6. Executive Session A. Consulting with legal counsel or reviewing communications from legal counsel about proposed or pending litigation or contractual matters pursuant to SDCL 1-25- 2(3) A motion was made by Council Member Jensen and seconded by Council Member Selberg to enter Executive Session at 5:04 p.m. Roll call vote to enter Executive Session. 8 Yes: Barranco, Cole, Jensen, Merkouris, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed.  A motion was made by Council Member Jensen and seconded by Council Member Barranco to exit Executive Session at 5:25 p.m. Voice vote to exit Executive Session. 8 Yes: Barranco, Cole, Jensen, Merkouris, Neitzert, Selberg, Soehl, Starr; 0 No: (None). Motion Passed. 7. Adjournment The meeting Adjourned at 5:25 p.m. Denise D. Tucker, MMC, Assistant City Clerk