MINUTES

GREEN BAY HOUSING AUTHORITY

Thursday, May 17, 2007

1424 Admiral Court, Second Floor Reading Room

Green Bay, WI 54303

10:30 a.m.

MEMBERS PRESENT: W. Van Ess, Chair; D. Dolan-Wallace, Vice-Chair; W. VandeCastle, H. Genunzio

MEMBERS EXCUSED: A. Nicholson

OTHERS PRESENT: K. Pamperin; A. Monday; R. Strong; N. Halvorsen; B. Sergott

APPROVAL OF MINUTES:

A motion was made by W. VandeCastle, seconded by H. Genunzio and carried to approve the minutes from the March 29, 2007 meeting of the Housing Authority of the City of Green Bay.

COMMUNICATIONS:

1. April 27 HUD approval of a four month extension for the FY 2005 Public Housing Resident Opportunity Self Sufficiency Grant WI074RFS01A005.

K. Pamperin stated HUD has provided a four-month extension to utilize the FY 2005 Public Housing Resident Opportunity Self Sufficiency Grant, which was delayed due to HUD providing the funding late. He stated we have four months to use the funds provided. He stated that the Housing Authority would not be applying for funding for 2006.because of the uncertainty with property management.

A motion was made by W. VandeCastle, seconded by D. Dolan-Wallace and carried to receive the communication and place on file.

K Pamperin distributed a late communication submitted by Wireless Capital Partners, LLC expressing interest in purchasing an option to purchase the Authority’s telecommunication leases. He stated the company would provide a lump sum payment at today’s value of the lease payments spread over a 15 or 25-year period. One lease might net a current payment of $225,000.00 through this lease purchase versus the Authority receiving annual payments each year. If the Authority’s current lease were continued and extended for the full twenty-five years (it is a five year lease with two fire year renewal options), the lease would return over $600,000.00 in total payments.

Following discussion it was the consensus of the Commissioners to have staff explore the opportunity further with the understanding that there is no commitment to proceed.

NEW BUSINESS

2. Authorization to proceed with financial consultant review of GBHA Project Based Stop Loss Budgeting and Accounting Submission at a cost not to exceed $3000.

K Pamperin stated that Senior Accountant Anne May-Steffel has been working toward positioning the GBHA to submit a Stop Loss Provision as a part of HUD’s mandated requirement to have housing authorities move to an Asset Based Accounting and Management. He stated the Housing Authority is a small agency and is not required to move to asset based accounting this year but will be required to do so in the near future. A. May-Steffel has determined that if we submit for Stop Loss this year the GBHA will save approximately $20,000 in capital fund and performance subsidy this year and over $100,000 over the next five years.

The HUD Asset Based Accounting Process is not real clear and there is disagreement between Congress and the Administration on directing HUD on how and when HUD must mandate the accounting change. There have been two extensions of time thus far, and most small agencies are struggling to determine how to proceed. A. May-Steffel has the Stop Loss submittal nearly complete, however the GBHA gets only one opportunity to submit and be successful in achieving “Stop Loss.” Staff has had discussions with three different consultants that are knowledgeable and capable of reviewing the data, which has been prepared for submission. Staff feels it would be beneficial to contract with a consultant to review the final Stop Loss submission to be certain we have it right and not lose our opportunity to save the funding.

D. Dolan-Wallace asked what experience a consultant would have if this is a new request.

R. Strong stated there should be a provision in the contract to safeguard the Housing Authority from paying the full price if the submission was not acceptable.

K Pamperin stated that we could work with the consultant to determine how they could assure us that the submission would be successful.

A motion was made by D. Dolan-Wallace, seconded by W. VandeCastle and carried to prepare a Request for Proposals with the provision of safeguarding the Housing Authority if the submission was not acceptable.

3. NeighborWorks Green Bay request for an extension on the existing loan on 815 Chicago Street, “The Armory Building”.

K. Pamperin introduced N. Halvorsen of NeighborWorks.

N. Halvorsen stated they have extensively worked with two developer/ buyers but both have declined to proceed. He stated they are currently cleaning and preparing the building to be more marketable. NeighborWorks Green Bay is working with DeLeers Construction to find a viable path to a feasible development. The GBHA loan for $205,000 expired December 31, 2006, so NeighborWorks Green Bay is requesting an eighteen-month extension from this date to June 30, 2008, to continue to work toward sale and development of the site

D. Dolan-Wallace asked if the property could be developed commercially.

N. Halvorsen stated DeLeers Construction has given costs on a new roof, hardwood floors, windows and replacing the entryway, which would make it more marketable for a commercial situation. He stated finding the right partner in redeveloping the site has proven to be challenging. He stated they have also looked at razing the structure.

N. Halvorsen stated NeighborWorks Green Bay is requesting an extension to June 30, 2008.

A motion was made by W. VandeCastle, seconded by D. Dolan-Wallace and carried to grant the extension of the $205,000 loan under the same terms and conditions through June 30, 2008.

4. Discussion and action on contracting for consulting services for guidance on the sale or transition of GBHA Scattered Sites.

K. Pamperin stated he had received an e-mail from Chip Lawe, Chief Financial Officer of ICS, last week indicating they are loosing money on the GBHA Scattered Site Management Contract and was giving notice that ICS would prefer not to continue managing the Scattered Site properties after December 31, 2007. The pre-RFP contract we are working under which has not been renewed because of ICS’s concern that they are continuing to lose money and their reluctance to enter into a new contract at a lesser per month fee, has a six month termination clause. This notice indicates they would prefer to be out of the Scattered Site Management Contract by January1, 2008.

In discussions with J. Syndergaard, K Pamperin expressed concern that ICS formerly the Housing Allowance Office has managed the Scattered Site properties since they were purchased and rehabilitated as public housing and if ICS sets a hard deadline for discontinuing management of the long partnership, it leaves the Authority in a difficult position. J. Syndergaard indicated they would work with the Authority to transition, but would like the Authority to know that ICS wants to discontinue management.

K. Pamperin stated he is exploring options for these properties. He stated the options are:

• Petition HUD to opt out of the Public Housing Program, with GBHA continuing ownership, and provide Project Based Housing Choice Vouchers to assist the residents to be able to afford the rent. This option still requires a management contractor or requires the Authority to staff management. This would be more traditional rental housing management with out the federal requirements attached to Public Housing.

• Opt out of Public Housing; transition the units to Project Based Housing Choice Vouchers to assist the residents to be able to afford the rent. And sell the properties as a group to a “for profit” or “not for profit” owner manager.

• Develop a program to sell the individual properties to residents, and use the sale proceeds as a revolving account to acquire rehabilitate and sell future properties as affordable home ownership. This has the benefit of continuing the affordable housing mission and rehabilitating neighborhoods

• Develop a program to sell the individual properties to residents, using the sale proceeds as subsidy to make the units affordable to very low-income resident buyers.

He stated each of the options are complex and require obtaining HUD approvals along the way. He feels the easiest and quickest would be the first option but that requires the Authority to continue ownership and management responsibilities. He stated the Authority needs to know that by opting out of the public housing program they are giving up an irreplaceable permanent federal commitment that contributes annual operating subsidy and capital improvement funds to maintain these housing units as affordable housing. He stated he has had discussions with a consultant that may be able to provide assistance to sorting through the advantages of the various options. He feels knowing and considering all options, as well as the most viable process within a manageable time frame, could best serve the Authority and the community.

W. VandeCastle stated the Housing Authority has to look at all the variables and how they relate to the options.

D. Dolan-Wallace stated he likes the idea of rehabbing homes and making the neighborhoods better. He stated he felt Planning Department staff should be involved. He stated there might be other programs out there that consultants may know of and can be looked at.

W. VandeCastle stated he would like a Request for Proposals prepared instead of a not-to-exceed amount.

K. Pamperin stated that preparing a Request for Proposals will take time, and we do have the property management issue to contend with.

D. Dolan-Wallace stated there should be a process set-up to evaluate each of the approaches we will be looking at and if they have any other possible alternatives. This would put everyone on the same playing field.

A motion was made by W. VandeCastle, seconded by D. Dolan-Wallace and carried to explore ways to bring in a consultant and report back to the Housing Authority.

5. Authorization to renew and update the Agreement and Memorandum of Understanding between the Green Bay Police Department the Green Bay Housing Authority and Langan Investigations.

K. Pamperin stated the Police Department is requesting to have the Memorandum of Understanding (MOU) and the Agreement between the Green Bay Police Department and Green Bay Housing Authority updated and executed under signature of the new Police Chief Jim Arts.

W. VandeCastle asked if this was renewed on a yearly basis stating we should look at a two-year agreement.

K Pamperin stated the MOU executed in May of 2004 is ongoing, and the Agreement will be modified to be continuous unless terminated by either party.

A motion was made by W. VandeCastle, seconded by D. Dolan-Wallace and carried to approve the updated Memorandum of Understanding (MOU) and the Agreement between the Green Bay Police Department, Langan Investigations and Green Bay Housing Authority.

BILLS

D. Dolan-Wallace asked what the bill for Foley-Lardner was for.

K. Pamperin stated it was for a letter written to Mansfield Moraine Ridge LLC for non-payment of that portion of the annual bond fees owed to the Authority. He stated the contracts do not allow for calling the bonds in default for this portion of the bond fee. If payment is not received, the Authority may have to take legal action directly against the owner and or property.

A motion was made by W. VandeCastle, seconded by D. Dolan-Wallace and carried to pay the bills as submitted.

ICS reported they currently have six vacancies, one of which is out of service for rehabilitation.

A. Monday report there are 10 vacancies at Mason Manor.

K. Pamperin stated he is in process of preparing bid specifications to replace all vinyl flooring, kitchen cabinets and one vanity at 1337 University Avenue.

K. Pamperin advised that he is investigating the possibility of borrowing ahead on Capital Funds for the Mason Manor addition. HUD and certain financial organizations including Fanniemae have developed the opportunity to borrow up to one-third of future Capital Funds over a twenty-year period to allow housing authorities to fund major improvements. This tool is generally used to improve serious deterioration or modernization needs and it is not certain storage addition would qualify, believed the back up elevator would.

He reported he is monitoring the web site in regard to our Fire Prevention Sprinkler System Homeland Security, Fire Prevention and Safety Grant Application. A number of grants have been awarded with more to be decided in the next few weeks.

K. Pamperin stated staff is still dealing with the City purchase order contract with JR Maintenance for work on the Authority property at 715 N. Chestnut under which JR Rome has filed a civil rights complaint with HUD.

JR Maintenance had invoiced the City first for $3201, then $2000, which was later withdrawn, and finally $4,052 for work performed. He stated he had the low qualified bidder that was awarded the re-bid of the property improvements at 715 N Chestnut provide an estimate on the time and cost it would have taken to complete the work JR Maintenance performed. His estimate was approximately $735. He stated based on reasonable estimates of time at JR Maintenances contract rate of $47.00 per hour, staff has come up with a range of $850 to $1357. He stated staff would like to offer Mr. Rome $1300 to resolve the billing.

D. Dolan-Wallace stated we should only pay what the actual cost should have been. If necessary he felt, we should get an estimate from another independent contractor. The other members agreed.

K Pamperin stated it is difficult to get other contractors involved when the work completed by JR Maintenance is no longer visible, the unit is occupied and most contractors do not want to get involved in a legal dispute.

R. Strong stated staff would work with the Law Department to resolve the contract.

There being no further business to come before the Authority, a motion was made by D. Dolan-Wallace, seconded by W. VandeCastle and carried to adjourn the meeting at 11:25 A.M.