APPROVAL OF MINUTES: December 19, 2016
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1 MINUTES OF THE REGULAR MEETING OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA, HELD ON TUESDAY, JANUARY 17, 2017 The Commissioners of the Housing Authority of the City of Michigan City, Indiana held a regular board meeting on Tuesday, January 17, 2017 at 4:30 p.m. The meeting was held at the Michigan City Housing Authority, 621 East Michigan Boulevard, Michigan City, Indiana 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 William Fine, Commissioner Colleen Babb, Commissioner Virginia Keating, Commissioner Dave McCray, and Commissioner Sean Fitzpatrick. Attorney Nelson Pichardo attended this meeting. Public in attendance included Housing Authority Liaison, City Council 5 th Ward Sharon Carnes, ALCO Representative Andre Steele, General Insurance Services (GIS) Representative Dan Nole, and Wind, Water and Energy Conservation (WWEC) Representative Andrew Overmyer. Housing Authority personnel attendees included Executive Director Norma Thomas and Executive Secretary Robin Fly. APPROVAL OF MINUTES: December 19, 2016 Chairperson Mock called for approval of the December 19, 2016 Board meeting minutes. Commissioner Keating motioned approval of the minutes as presented. Vice Chairperson Davis seconded the motion. December 29, 2016 Chairperson Mock called for the approval of the December 29, 2016 Special Board meeting minutes as presented to the Board. Commissioner Keating motioned approval of the minutes. Commissioner Fine seconded the motion. APPROVAL OF MANAGEMENT REPORTS: Chairperson Mock called for approval of the management reports as presented to the Board. In reference to the Section 8 Housing Choice Voucher Program Report month ending December 2016, Commissioner McCray inquired about the negative number of 8 vouchers open. Executive Director Thomas said that the minus 8 vouchers are included in the total number of 371 vouchers. Commissioner Babb motioned to approve the management reports. Commissioner McCray seconded the motion.
2 COMMITTEE REPORTS: OLD BUSINESS: APPROVAL OF BILLS: Workers Compensation Insurance and Business Owners Insurance Chairperson Mock called for approval of workers compensation insurance and business owners/epl insurance. General Insurance Services (GIS) Representative Dan Nole informed the Board about two insurance premium renewal invoices due January He stated that last year business owner s policy premium amount was $3, in comparison to this year s amount of $3, and that last year s premium included policy regarding employer practices liability involving sexual harassment, hostile workplace and wrongful termination coverage. The renewal premium for 2017 has increased approximately $52.00, and according to Mr. Nole, there has been a percentage increase involving appreciation on the policy for more insurance coverage on building contents. In regards to workers compensation coverage Mr. Nole explained to the Board that there has been an approximate $2,000 increase to this year s premium in the amount of $21,812 in comparison to last year s premium at $19,985. He said that the main component of the insurance premium calculation involves the insurance Experience Mod which for the Housing Authority has been excellent resulting in an approximate 26 percent discount which amounts to $8,000 in reduction costs. In regards to the $2,000 increase in comparison with last year s premium, Mr. Nole explained to the Board that last year s rate published by the State for housing authorities was at $3.05 and this year s rate has increased to $3.50 which accounts for the increase of $2,000. He said that audit results could perhaps produce a credit refund amount within the next 30 days. Commissioner Fine asked if the state rate of $3.50 applies only to the housing authority, clerical, salespersons, and drivers operations. In reply, Mr. Nole said that the rate includes anything except carpentry. He said that when the audit arrives, he would like to adjust the payroll and that the Housing Authority has multi-policy discount with inclusion of auto insurance, package policy, and workers compensation policy with GIS as the servicing agent. After discussion, Vice Chairperson Davis motioned to approve premium in the amount of $3, for renewal of Business Owners/EPL Insurance coverage. Commissioner Keating seconded the motion. With no inquiries involving the workers compensation policy, Commissioner McCray motioned to approve premium in the amount of $21,812 for renewal of workers compensation insurance coverage. Commissioner Fine seconded the motion.
3 NEW BUSINESS: Proposal for Energy Performance Contract Chairperson Mock called for discussion of the proposal for the energy performance contract. Wind, Water, Energy Conservation (WWEC) Representative Andrew Overmyer explained to the Board that the performance contract is initiated by HUD for housing authorities to obtain funding to pay for capital fund improvement items that are energy related. He said that the process for housing authorities is to submit request for proposal (RFP) which HUD has already approved for the Housing Authority. First Phase is to conduct an energy audit, and according to Mr. Overmyer, the Board will only approve the cost of the energy audit. He informed the Board that the Housing Authority could either use capital funds to pay off the audit or roll costs into financing monies that pay for other equipment. Mr. Overmyer explained to the Board that the audit study is used for specific identification of equipment costs in order to procure financing. In reference to the HUD s Energy Conservation Incentive: Energy Performance Contract information Mr. Overmyer said that after identifying energy and water costs, then the Housing Authority borrows monies to pay for the costs and once the equipment is implemented, savings is created when energy savings from new equipment installation repays the debt which is considered a self-funding program. If the program does not fund itself, WWEC as the acting energy service company (ESCO) would be responsible to pay the difference in order to guarantee cost savings according to Mr. Overmyer. Mr. Overmyer informed the Board that the Housing Authority has incorporated this energy program initiated by HUD in the past and on page 6 of HUD s Energy Conservation Incentive: Energy Performance Contract, savings are listed for each year resulting in a finance resource of over $2 million for the Housing Authority in addition to paying the financing debt costs within a 10-year period. HUD requires housing authorities to utilize at least 75 percent of savings for costs according to Mr. Overmyer. On pages 7 and 8 of the HUD s Energy Conservation Incentive: Energy Performance Contract Mr. Overmyer informed Board about energy conservation equipment needed at Boulevard Gardens and Lakeland Estates with a major concern for boilers at Boulevard Gardens. Attorney Pichardo asked if any cost is associated with the energy audit. In response Mr. Overmyer stated that a fee exists for his company to conduct the audit for approximate cost of $8,000 even though actual cost without discount is approximately $15,000. He said that such costs are delayed in order to have financing pay the audit cost. He said the energy service company hires subcontractors and adheres to Section 3 involving residents in the construction projects in an attempt to incorporate the community within this endeavor. Attorney Pichardo inquired about the time period to complete the audit. In reply, Mr. Overmyer stated that the audit lasts for approximately 2 months. With no further questions, as spokesperson for the Asset Management Committee, Commissioner Keating motioned to
4 approve audit cost of approximately $8,900 with proposal subject to contract review by Attorney Pichardo. Commissioner Fine seconded the motion. RESOLUTION NUMBER RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE WIND, WATER, ENERGY CONSERVATION (WWEC) AS THE ENERGY SERVICE COMPANY TO PERFORM ENERGY AUDIT AND TO COMPLETE THE ENERGY PERFORMING CONTRACT PROCESS. AYES Carla Mock Yolanda Thomas-Davis Colleen Babb Virginia Keating William Fine Dave McCray Sean Fitzpatrick NAYS 2017 Grant Submission Resolution No Chairperson Mock called for approval of the 2017 Grant Submission Resolution No She said that the resolution authorizes permission to the Executive Director to seek grants, complete and submit proper paperwork and documentation on an annual basis. With no further discussion Commissioner Fitzpatrick motioned to approve Grant Submission Resolution No as presented to the Board. Commissioner McCray seconded the motion. RESOLUTION NUMBER RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO AUTHORIZE PERMISSION TO THE EXECUTIVE DIRECTOR TO SUBMIT GRANT APPLICATIONS DURING FISCAL YEAR AYES NAYS Carla Mock Yolanda Thomas-Davis Colleen Babb Virginia Keating William Fine Dave McCray Sean Fitzpatrick
5 APPROVAL OF BILLS: HAI Commercial and Property Insurance Chairperson Mock called for approval of the Housing Authority Insurance (HAI) Group commercial property and equipment breakdown insurance coverage in the amount of $55,188. Commissioner Fine motioned to approve the aforementioned invoice as presented to the Board. Commissioner Babb seconded the motion. Chairperson Mock called for approval of the HAI Group Commercial, Public Officials, Terrorism, Mold, other Fungi or Bacteria claim liability insurance invoice in the amount of $14,297. Commissioner Keating motioned to approve the aforementioned invoice as presented to the Board. Vice Chairperson Davis seconded the motion. PUBLIC COMMENTS: ADJOURNMENT: Chairperson Mock adjourned meeting at approximately 4:45 p.m. Carla Mock, Chairperson Norma Thomas, Executive Director ATTEST:
6 RESOLUTION NUMBER RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO AUTHORIZE PERMISSION TO THE EXECUTIVE DIRECTOR TO SUBMIT GRANT APPLICATIONS DURING FISCAL YEAR WHEREAS, various grant opportunities are presented to housing authorities on an annual basis, and WHEREAS, the Board of Commissioners of the Housing Authority of the City of Michigan City has authority to permit the Executive Director to apply for grants to fund diverse activities of the Housing Authority of the City of Michigan City, Indiana, and WHEREAS, the Executive Director would also have the authority to execute all documentation involving applications for grant submissions. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana authorized permission to the Executive Director of the Housing Authority of the City of Michigan City, Indiana to submit grant applications for Fiscal Year Adopted this 17 th day of January Resolution moved by: Commissioner Sean Fitzpatrick Resolution seconded by: Commissioner David McCray MCHA Chairperson Carla Mock ATTEST:
7 RESOLUTION NUMBER RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE HOUSING AUTHORITY OF THE CITY OF MICHIGAN CITY, INDIANA TO APPROVE WIND, WATER, ENERGY CONSERVATION (WWEC) AS THE ENERGY SERVICE COMPANY TO PERFORM ENERGY AUDIT AND TO COMPLETE THE ENERGY PERFORMING CONTRACT PROCESS. WHEREAS, the Housing Authority is seeking to enter an energy performance contract with HUD for such benefits as new money for water/energy capital improvements, decrease water/energy costs, operating cost and frees up capital funds by implementing energy savings equipment, and WHEREAS, an energy service company assists the Housing Authority in the energy contract process from start to finish by performing energy audits, delivering a turn-key project and guarantees saving assuming most of project risk, and WHEREAS, the Housing Authority has worked with Wind Water Energy Conservation (WWEC) in the past and was pleased with WWEC s performance, and WHEREAS, the Housing Authority will compensate WWEC $8, as its energy service company to perform energy audit. NOW THEREFORE BE IT RESOLVED that the Board of Commissioners of the Housing Authority of the City of Michigan City, Indiana authorized hiring WWEC as its energy service company for a cost of $8, to perform energy audit and to assist from start to finish the Housing Authority s proposal to enter an energy performance contract with HUD. Adopted this 17 th day of January Resolution moved by: Commissioner Virginia Keating Resolution seconded by: Commissioner Bill Fine MCHA Chairperson Carla Mock
8 ATTEST:
Workers Compensation Insurance and Business Owners/ EPL Insurance
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