MINUTES OCTOBER 29, 2014 GRAND RAPIDS HOUSING COMMISSION. The President declared a quorum present.
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1 MINUTES OCTOBER 29, 2014 GRAND RAPIDS HOUSING COMMISSION The regular meeting of the Grand Rapids Housing Commission was held on October29, 2014 in the conference room of the administrative building at 1420 Fuller SE, Grand Rapids, Michigan. The President called the meeting to order at 7:04 p.m. Roll Call: Present: Absent: Bunn, Butler, Cooper, Miles, Zylstra None The President declared a quorum present. Also attending the meeting: Hattie Tinney, Deputy Executive Director, and John Carlson. MINUTES: Commissioner Cooper, supported by Commissioner Bunn, moved to approve the Minutes of the regular meeting of September 16, Mr. Carlson had concerns regarding the Minutes from the meeting he attended back on September 16th and noted that he didn t see the comments he made on the Minutes he printed off that he found on our website with the date of August. The Director informed him that the meeting that he attended was in September and those Minutes are being approved at this meeting and will be posted on our website following approval by the Board and that his comments and 1
2 concerns have been noted. Mr. Carlson also inquired regarding the statement by Commissioner Cooper as to receiving a written response to his questions and reiterated his statement from the meeting in September regarding the qualifications of the Housing Commission board members. Mr. Carlson also stated that he was unable to locate the budget on our website. Commissioners stated that the information he is looking for can be found on our website along with our financial statements, agency plan and audits that include the budgets. The Commission inquired as to what exactly he was looking for so that the Commission can get a better understanding of what he s looking to find. Mr. Carlson stated that he s interested in knowing where the millions of dollars are being spent. The Commission referred Mr. Carlson to the G.R. Public Library computers and that staff at the library may be able to assist him with navigating our website for the information he may be looking for. The Commission inquired if he had additional questions, he stated a few but won t ask them and stated that he s just a concerned taxpayer. Mr. Carlson stated that he also noticed we award a contract to Pioneer Construction and referenced that he used to own a portion of that company. Mr. Carlson left the meeting at 7:20 pm. RESOLUTIONS & MOTIONS: 1. The Director presented the Commission with a copy of the resolution approving the financial statements for period ending September 30, The following resolution was introduced read in full and considered: 2
3 WHEREAS, the Operating Statements of Income and Expenditures for the period ended September 30, 2014 has been prepared for and submitted to the Grand Rapids Housing Commission; and WHEREAS, the Housing Commission has reviewed the Statements; and WHEREAS, the Housing Commission, in its review, has determined that the expenditures are necessary in the efficient and economical operation of the Housing Commission for the purpose of serving low income families. NOW, THEREFORE, BE IT RESOLVED that the Operating Statement of Income and Expenditures for the period ended September 30, 2014 are in all respects approved. Commissioner Bunn, supported by Commissioner Cooper, moved adoption of 2. The Director presented the Commission with a copy of the resolution approving the changes and renewals to the fringe benefits. There will be a six percent (6%) increase in health benefits through Priority Health and staff will continue to research options for health care service including the health care exchange. Discussion regarding the 2% increase in salaries that was approved under the Budget submitted at the May 2014 meeting contingent on quotes received for fringe benefits in order to allow for the increase The following resolution was introduced, read in full and considered: 3
4 RESOLUTION APPROVING CONTRACT FOR HEALTH MAINTENANCE SERVICES WHEREAS, the Grand Rapids Housing Commission provides employees with health care benefits; and WHEREAS, the Housing Commission has evaluated the health care plan options and has elected to continue to offer all employees an HMO and a POS option. WHEREAS, the Housing Commission has proposed coverage at these levels at a premium of $ per month for HMO single enrollees, $ per month for POS single enrollees, $ per month for HMO families of two, $1, per month for POS families of two, $1,579 per month for HMO families with three or more members and $1, per month for POS families with three or more members. WHEREAS, enrollees in the Health Maintenance Operations (HMO) option and the (POS) option will pay 20% of their portions pre- tax under the approved Cafeteria Plan Section 125. All Point of Service (POS) plan participants will pay the difference of the two plans. NOW, THEREFORE, BE IT RESOLVED, that the contract health maintenance renewal of $831,150 with the above co- pays and rates between the Grand Rapids Housing Commission and Priority Health is hereby approved. Commissioner Zylstra supported by Commissioner Bunn, moved adoption of 4
5 14-70 The following resolution was introduced, read in full and considered: RESOLUTION APPROVING CONTRACT FOR DENTAL INSURANCE WHEREAS, the Grand Rapids Housing Commission provides employees with dental insurance; and WHEREAS, the Housing Commission has evaluated options from other providers; and WHEREAS, the current carrier, Delta Dental continues to offer a competitive premium for 100/80/60/50 level coverages. NOW, THEREFORE, BE IT RESOLVED, that the two year contract renewal of $60, between the Grand Rapids Housing Commission and Delta Dental is hereby approved. Commissioner Zylstra, supported by Commissioner Bunn, moved adoption of The following resolution was introduced, read in full and considered: RESOLUTION ADOPTING REVISED SELF- FUNDED VISION INSURANCE COBRA RATES WHEREAS, the Grand Rapids Housing Commission provides employees with vision care benefits; and 5
6 WHEREAS, the Grand Rapids Housing Commission evaluates vision insurance expenses annually and revised COBRA rates accordingly. NOW, THEREFORE, BE IT RESOLVED, that the self- funded vision insurance monthly COBRA rate of $16.16 per month for single coverage; $18.26 per month for double (2 members) $19.21 per month for families (3 members or more) effective December 1, 2014 and is hereby approved. Commissioner Zylstra, supported by Commissioner Bunn, moved adoption of The following resolution was introduced, read in full and considered: RESOLUTION APPROVING CONTRACT FOR LIFE, AD&D AND SHORT TERM DISABILITY INSURANCE WHEREAS, the Grand Rapids Housing Commission provides employees with life, AD&D, and short- term disability insurance; and WHERREAS, the Housing Commission has evaluated options from other providers; and WHEREAS, Reliance Standard offers a competitive premium for the same life insurance coverage and short- term disability as Mutual Of Omaha. NOW, THEREFORE, BE IT RESOLVED, that the contract of $7, between the Grand Rapids Housing Commission and Reliance Standard is hereby approved. 6
7 Commissioner Zylstra, supported by Commissioner Bunn, moved adoption of The following resolution was introduced, read in full and considered: RESOLUTION APPROVING AGREEMENT WITH THE EMPLOYEE ASSISTANCE CENTER WHEREAS, the Grand Rapids Housing Commission provides employees with an employee assistance program; and WHEREAS, the Housing Commission has evaluated options from other providers; and WHEREAS, Encompass provides a competitive premium for the same coverage and services. NOW, THEREFORE, BE IT RESOLVED, that the contract renewal of $ between the Grand Rapids Housing Commission and Encompass is hereby approved. Commissioner Zylstra, supported by Commissioner Bunn, moved adoption of The following resolution was introduced, read in full and considered: 7
8 RESOLUTION APPROVING CONTRACT FOR FLEXIBLE SPENDING ACCOUNT WHEREAS, the Grand Rapids Housing Commission provides employees with a flexible spending account which enables employees to pay medical and child care expenses tax free; and WHEREAS, the Housing Commission provides a maximum allowable payroll deduction of $2, for medical expenses and a $5, allowable by law for child care; and WHEREAS, the Housing Commission will offer a direct deposit plan and a provision to allow up to $500 of a participant s Health Care FSA balance to be carried over to the subsequent plan year. The carry over provision will replace the employee s opportunity for the 2.5 month grace period for medical expenses after the end of the plan year to incur expenses and to be reimbursed for the prior plan year. NOW, THEREFORE, BE IT RESOLVED, that the contract for $2, between the Grand Rapids Housing Commission and Corporate Benefits Strategies is hereby approved. Commissioner Zylstra, supported by Commissioner Bunn, moved adoption of The following resolution was introduced, read in full and considered: 8
9 RESOLUTION ADOPTING REVISED ANNUAL WAGE AND SALARY SCHEDULE WHEREAS, the Grand Rapids Housing Commission has previously adopted an annual wage and salary schedule; and WHEREAS, the Housing Commission has proposed an adjustment of 2.0% effective January 1, 2015 to the Annual Wage and Salary Schedule. NOW, THEREFORE, BE IT RESOLVED, that a revision to the Annual Wage and Salary Schedule reflecting a 2.0% increase effective January 1, 2015 is hereby approved. 3. The Director presented the Commission with a copy of the resolution approving the agreement with Ryan s Modern Sewer for Sewer Maintenance services for the various housing developments. The Commission suggested staff solicit additional bids due to the low response from the current list of vendors. Staff to get the current agreement in place and will solicit additional vendors for backup services if the current vendor is unavailable The following resolution was introduced, read in full and considered: 9
10 RESOLUTION APPROVING SEWER MAINTENANCE SERVICE BIDS ALL HOUSING DEVELOPMENTS WHEREAS, the Housing Commission is required under the Procurement Policy to seek competitive bids to ensure that supplies and services are procured efficiently, effectively, and at the most favorable prices; and WHEREAS, the Housing Commission has recently circulated Requests for Bids for the sewer maintenance services at all of its housing developments. WHEREAS, the Housing Commission has reviewed the bid submissions and has determined that it is in the organization s best interest to accept the bid submitted by the Ryan s Modern Sewer. NOW, THEREFORE BE IT RESOLVED that the Executive Director be authorized to enter into an agreement with Ryan s Modern Sewer for sewer maintenance services for the various housing developments and property under its management. Commissioner Cooper, supported by Commissioner Bunn, moved approval of 4. The Director presented the Commission with a copy of the resolution revising the Enterprise Income Verification System Security Policy (EIV) per HUD guidelines to provide staff with guidance and procedures to safeguard the agency and its clients. 10
11 14-77 The following resolution was introduced, read in full and considered: RESOLUTION REVISING THE ENTERPRISE INCOME VERIFICATION SYSTEM SECURITY POLICY WHEREAS, the Housing Commission has identified the necessity for revising the EIV System Security policy to ensure proper implementation and standardization of use regarding the Enterprise Income Verification system throughout the Housing Commission. NOW, THEREFORE, BE IT RESOLVED that the Housing Commission adopt the attached revisions to the EIV System Security Policy. Commissioner Zylstra, supported by Commissioner Bunn, moved adoption of 5. The Director presented the Commission with a copy of the resolution approving the submission of four (4) applications for the FY 2014 HUD Hearth Grant Continuum of Care Notice of Funding Availability, and if awarded, to enter into the necessary grant agreements The following resolution was introduced, read in full and considered: RESOLUTION APPROVING SUBMISSION FY 2014 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT HEARTH GRANT CONTINUUM OF CARE NOTICE OF FUNDING AVAILABILITY 11
12 WHEREAS, The U.S. Department of Housing and Urban Development has made available funding for organizations serving the needs of homeless populations under the FY 2014 HEARTH Continuum of Care grant programs; and WHEREAS, the Grand Rapids Housing Commission operates the Hope Community, Home at Last I, Home at Last II, and Home at Last III programs serving eligible populations under the grant application. NOW, THEREFORE BE IT RESOLVED, that the Executive Director is hereby authorized to submit four (4) grant applications for HEARTH Continuum of Care funds in the amounts of $159,663 for Hope Community, $120,257 for Home at Last I, $122,373 for Home at Last II, and $123,794 for Home at Last III and if awarded, enter into grant agreements for these funds. Commissioner Bunn, supported by Commissioner Zylstra, moved adoption of 6. The Director presented the Commission with a copy of the resolution approving the Creston Plaza Rental Assistance Demonstration Program financing Certification and Agreement as a final condition of closing The following resolution was introduced, read in full and considered: CERTIFICATION AND AGREEMENT OF Grand Rapids Housing Commission While processing the Rental Assistance Demonstration (RAD) applications of the Grand Rapids Housing Commission for Creston Plaza Phase I and Creston Plaza 12
13 Phase II with the United States Department of Housing and Urban Development (HUD), it was discovered that 84 families had been relocated and all 84 of these families had been relocated prior to the publication of Notice H /PIH (RAD Relocation Notice). In return for allowing this transaction to proceed with its RAD closing the PHA hereby certifies and agrees to comply and carry out the following: 1) PHA will provide each relocated resident with a right to return to the project once it is completed 2) If residents voluntarily decline their right to return, PHA will obtain from each such resident informed, written consent to receive permanent relocation assistance and payments consistent with the URA and written acknowledgement that acceptance of such assistance terminates the resident s right to return to the project. 3) If the PHA is planning on moving residents for over a year, PHA will offer these residents the following options before any move: a. Retaining their right to return and accepting temporary relocation assistance and payments; OR b. Declining their right to return and accepting permanent relocation assistance and payments at URA levels. 4) Notices will be provided to all relocated tenants and will contain the following information. For residents being relocated temporarily, PHA must provide residents with the RAD Notice of Relocation at least 30 days prior to any required move. For residents being relocated permanently, PHA must provide the RAD Notice of Relocation at least 90 days prior to any required move in addition to providing them 13
14 permanent relocation assistance and payments at URA levels. PHA may incorporate the required 30- and 90- day notices, respectively, with the RAD Relocation Notice. This Notice must include project- and resident- specific information, including specific move dates, not just a planned range, expected length of relocation, and comparable replacement units. If relocation extends beyond one year, PHA must provide residents with the Notice of Eligibility for URA Relocation Assistance and provide residents with another opportunity to retain or decline their right to return to the completed project. 5) PHA will not propose or request that a displaced person waive rights or entitlements to relocation assistance under the URA. PHA will remove any text indicating such a waiver of URA rights from all forms and information provided to residents. 6) PHA will offer all residents a right to return to the completed project and PHA s development plans must accommodate the housing choices made by these residents. These residents may voluntarily decline this right, but are then entitled to permanent relocation assistance and payments at URA levels. PHA hereby agrees to provide permanent relocation assistance and payments at said URA levels. 7) PHA will provide additional information for review, if requested by the HUD Regional Relocation Specialists or HQ staff to comply with the instructions prescribed by HUD to correct any deficiencies in the assistance and payments provided to these residents. Commissioner Bunn, supported by Commissioner Cooper, moved adoption of 14
15 7. The Director presented the Commission with a copy of the resolution approving Change Order No. 1 for Creston Plaza Phase I & II Construction Contract with a net change to contract in the amount of $2, to be deducted from the contract contingency line item The following resolution was introduced, read in full and considered: RESOLUTION APPROVING CHANGE ORDER NO. 1 TO THE CRESTON PLAZA, PHASE I AND PHASE II CONSTRUCTION CONTRACT WITH PIONEER CONSTRUCTION, INC. WHEREAS, the Grand Rapids Housing Commission (GRHC) has previously entered into contract with Pioneer Construction, Inc. (General Contractor) in the amount of Seventeen Million Three Hundred Thousand and 00/100 dollars ($17,300,000) to provide all construction services and activities necessary to deliver the Creston Plaza, Phase I and Phase II project in accordance with the approved plans and specifications prepared by Isaac V. Norris & Associates, P.C.; and, WHEREAS, Pioneer Construction, Inc. has submitted Bulletin No. s 1, 2, 4, and 5 which change the approved plans and specifications as listed in the table below: Bulletin # Description of Change Amount 1 Revisions to grading and retaining wall at 1073/1075 Lafayette and revision to retaining wall behind Barnett Street units. [Net Deduction] - $16,722 15
16 2 Gas piping and meter location revisions at single family, duplex, townhouse and triplex units. [Net Increase] $12,450 4 Revisions to watermain service and mainline demolition per City of Grand Rapids [Net Increase] $5,601 5 Revisions to Public Utilities based on requirements of the City of Grand Rapids Engineering Department [Net Increase] $1,443 Total Net Change to Contract = $2, NOW, THEREFORE BE IT RESOLVED, that the Executive Director is hereby authorized to issue Change Order No. 1 to the contract with Pioneer Construction, Inc. in the total amount of Two Thousand Seven Hundred Seventy- two and 00/100 dollars ($2,772.00), with said amount being deducted from the contract contingency line item. The total contract price with Pioneer Construction, Inc., after Change Order No. 1, will remain Seventeen Three Hundred Thousand and 00/100 dollars ($17,300,000.00). Commissioner Bunn, supported by Commissioner Cooper, moved adoption of 8. The Director presented the Commission with a copy of the resolution approving the creation of a bank account for Family Self- Sufficiency Escrow accounts as required by HUD. 16
17 14-81 The following resolution was introduced, read in full and considered: Account Resolutions Certificate for Treasury Management Services I am the duly elected and currently serving Director, President, Secretary, Treasurer or other officer authorized to deliver this Certification (the "Official") on behalf of the not- for- profit corporation, association, trust or other entity identified below (the "Association"); and The following resolutions ("'Account Resolutions") were duly adopted by the Board of Directors or other governing body of this Association; and, the Account Resolutions have not been rescinded or modified, and are in full force and effect: RESOLVED, Fifth Third Bank is hereby designated as an authorized depository of this Association and that one or more checking, savings or other deposit accounts ("Accounts") be opened and maintained with Fifth Third Bank in the name of the Association; RESOLVED FURTHER, that the opening and maintaining of the Accounts, all transactions in connection with the Accounts and all related services will be governed by written agreements provided by Fifth Third Bank, and by such rules, regulations and policies as Fifth Third Bank shall from time to time establish; RESOLVED FURTHER, this Association is authorized to obtain banking services from Fifth Third Bank including treasury management and corporate card services, and to enter into such agreement or agreements and documentation for such services as are required by Fifth Third Bank from time to time, including a Master Treasury Management Agreement, Terms and Conditions for various banking services, Signature Card, Commercial Card Agreement and Commercial 17
18 Account Rules (''Banking Agreements") each of which, when accepted or signed by an Authorized Person described below is approved and authorized in all respects; RESOLVED FURTHER, that the Association is authorized to incur and repay indebtedness, grant or give security, and incur and perform related liabilities and obligations to Fifth Third Bank in connection with the banking services obtained by the Association under the relevant Banking Agreements, including, without limiting the foregoing, with respect to: (a) transactions executed for the Association by Fifth Third Bank, (b) credit card services under the Commercial Card Agreement, and (c) import and export services for letters of credit as provided in the Terms and Conditions for such import and export services and related reimbursement, financing and security or collateral arrangements; RESOLVED FURTHER, that the Association is authorized to enter into, execute and deliver to Fifth Third Bank applications, documents, notes and agreements reflecting or evidencing such indebtedness, security, liabilities and obligations including those related to letters of credit, confirmation and payment services, reimbursement arrangements and related loans, lines of credit or similar financing arrangements, and security and collateralization arrangements. and a note or notes, security, pledge or similar agreement evidencing or securing such arrangements ("Banking Services Financing Agreements") each of which, when submitted, accepted or signed by an Authorized Person is authorized and approved in all respects; RESOLVED FURTHER: that (a) each of the individuals identified in the table entitled "Authorized Persons" appearing below, (b) each person serving as an 18
19 executive or finance officer of the Association (such as the Chief Executive Officer, President, Chief Financial Officer, Controller and Vice President Finance or similar title (each, an "Executive Officer")) from time to time. and (c) any other person designated by any such individual whose identity and signature are provided to Fifth Third Bank (each, an ''Authorized Person" and for purposes of certain Banking Agreements, an "Authorized Agent") is authorized on behalf of the Association and in its name to do any of the following: Accounts and Agreements. Open or close any deposit or other Account and execute on behalf of the Association signature cards (and designate persons with check signing authority), application forms, authorization, set- up and other documentation and agreements with Fifth Third Bank with respect to the Accounts and any services related to the Accounts including each of the Banking Agreements and Banking Services Financing Agreements; Payment Instructions. Issue, and designate persons with the authority to issue written_, telephonic, electronic, internet- based or oral instructions and payment orders for the transfer or payment of funds of the Association on deposit with Fifth Third Bank (or at any other financial institution) including by wire transfer, automated clearing house debit, book transfer and other physical and electronic means; Implementation and Setup. Select the services the Association will obtain from Fifth Third Bank, and instruct Fifth Third Bank on service options and features 19
20 desired by the Association, and the set up, implementation and security procedures relating to the services selected; and. Authorization. Designate, and advise Fifth Third Bank of the identity of persons (including officers and employees of this Association or its service providers) who have some or al1 of the authority of an Authorized Person with respect to one or more Accounts of the Association or services utilized by the Association, and limitations on the scope of such authority, if any, including a person or persons who will serve as administrator or service administrator with respect to a service or services obtained by the Association and have authority to: manage the service on behalf of the Association; select and administer security and operating procedures; designate persons as authorized users of a service; and, enable and administer user identification codes, passwords and other identification data. RESOLVED FURTHER, that all actions of the Authorized Persons, and all agreements, applications, documents and authorizations executed and delivered by the Authorized Persons prior to the date of these resolutions and in connection with the transactions contemplated by these resolutions are ratified, confirmed and approved in all respects; RESOLVED FURTHER: Fifth Third Bank is authorized to rely on the full and unrestricted authority as provided in these resolutions of any one Authorized Person unless otherwise certified to Fifth Third Bank by the Official; RESOLVED FURTHER, that the undersigned Official is authorized to deliver a certified copy of these Resolutions to Fifth Third Bank and certify to Fifth Third Bank the name, title and specimen signature of each Authorized Person. 20
21 I further certify that: these resolutions do not conflict with or contravene the certificate or articles of incorporation, bylaws or similar governing documents of, or any agreement, law or regulation applicable to the Association; and each of the following persons has been designated by the Board of Directors as an Authorized Person with the authority specified in the foregoing resolutions, and the signatures indicated below are genuine signatures of the indicated persons: Bobbie Butler, President, Carlos A. Sanchez, Executive Director. Commissioner Miles, supported by Commissioner Bunn, moved adoption of DIRECTOR S REPORT 1. The Director updated the Commission on the status of Creston Plaza. The Director also informed the Commission that Mayor George Heartwell has submitted a request to consider the installation of solar panels with discussion regarding being cost prohibitive at $5,000 per unit as staff did consider this option in the beginning stages but the cost to bring in the dirt to meet grade requirements prevented the addition of solar panels. Staff will look at various options ie: grant opportunities and if there is additional money after costs are paid, look at solar panels for the main building. Commissioner Zylstra requested the Director to contact the Mayor to clarify the discrepancy regarding the cost per unit. 21
22 2. The Director presented the Commission with a copy of the Five Year Plan Matrix highlighting on page 2 under goals I and J for their review. 3. The Director presented the Commission with a copy of the letter received from HUD with regard to our appeal designating the Grand Rapids Housing Commission a High Performer under the PHAS system. 4. The Director presented the Commission with a copy of the letter received from HUD regarding the renewal of the 2014 FSS Program funding in the amount of $259,815 to fund four (4) FSS program Coordinator positions. 5. Vacancy Report for September 2014 Adams Park 5 Campau Commons 0 Scattered Site I- V 0 Public Hsg. Total 5 Homeown Rental 0 Hope Community 2 Leonard Terrace 2 Oakdale 0 Mt. Mercy 1 Ransom Tower 1 Sheldon Apts. 0 Overall Total The Director presented the Commission with a copy of the Section 8 Status Report for September
23 7. The Director presented the Commission with a copy of the Personnel Report for October The Director presented the Commission with a copy of the Work Order Report for period 7/1/2014 9/30/2014 for their review. 9. The Director informed the Commission that staff has been contacted by city personnel that a buyer is interested in the purchase of Breton Village Green and is asking that that we terminate our option on the property. Staff will meet with counsel to further investigate the option agreement with Breton Village Green Limited Dividend Housing Association and update the Commission on the status There being no further business to come before the Commission, it was moved by Commissioner Zylstra supported by Commissioner Bunn, to adjourn. Ayes: Bunn, Butler, Cooper, Miles; Zylstra The President declared the meeting adjourned at 8:10 p.m. Carlos A. Sanchez Executive Director/Secretary 23
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