Board of Commissioners Meeting January 18, 2018

Transcription

1 Board of Commissioners Meeting January 18, 2018 The Commissioners of the Portsmouth Redevelopment and Housing Authority held their regularly scheduled meeting on January 18, 2018 at 5:00 p.m. at 3116 South Street, Portsmouth, Virginia. The meeting was called to order by the Chair, and upon roll call, those present were as follows: Present: Chair Davy Smith, III Vice Chair Dr. Reuben Washington Commissioner Charlene Cofield Commissioner Bruce LaLonde Commissioner Rita Roberts Absent: Commissioner Sonya Chapman Commissioner Leslie Harris Staff Present: Mr. Edward Bland, Executive Director Ms. Alisa S. Winston, Deputy Executive Director Ms. Karen James, General Counsel Mr. Scott Pontz, Director of Finance Mr. Brian Donahue, Director for Development Ms. Delores Adams, Director of Procurement & Resident Services Ms. Carol Thomas, Director of the Housing Choice Voucher Program Ms. La Shawn Brickhouse, Executive Secretary Others Present: Hon. Lisa Lucas-Burke, City Council Liaison Don Jump, Jump, Perry and Company, L.L.P. (via Skype) Michelle Wren, Portsmouth Partnership Ana Ley, Virginian-Pilot Chair Smith presented the minutes from the November 29, 2017 Regular Board Meeting. Commissioner LaLonde made a motion to accept and approve the minutes as presented, and Commissioner Roberts seconded: Roll Call Votes: Commissioner Roberts-Yes; Commissioner Cofield- Abstained (Absent from the November Meeting); Commissioner LaLonde-Yes; Vice Chair Washington-Yes; and Chair Smith-Yes. Motion carried by unanimous Chair Smith greeted the Board with a Happy New Year and stated that he looked forward to having a great year in Mr. Pontz presented the December Monthly Financial Statements and noted that the Authority had previously been on a one-month lag. The monthly financial statements were only briefly discussed, in order to focus more on the 2017 Draft Audit Report and answer any questions. Mr. Pontz went onto explain that all of PRHA s limited partnerships have different internal deadlines, therefore, in order to remain in accordance with everyone s tax return deadlines, each partnership is handled on a case by case. Deadlines are now March 15 th, versus April, which is far too early to have a tax return ready and reviewed. Tax returns are prepared and audited by Don Jump, of Jump, Perry and Company, L.L.P., the upfront work is done by PRHA staff and in turn the returns and audit are done concurrently. Tax returns are then sent to the limited partners. As for whether extensions are requested is dependent on the particular partnership, but never pose an issue. Mr. Pontz commented that Effingham is once again running within budget for the month of December. Good job to the operations team. The security bills for Effingham and Phoebus are also under control. The security line in 2018 is projected to stay in line for the rest of the year. Vice Chair Washington inquired as to whether the Authority is held to the requirements of any HUD submission or approval deadlines? Mr. Pontz responded that if HUD doesn t have a financial interest in the project, then it would only involve the partnership i.e. Towne Bank. All of the limited partnerships are composed of private businesses. 1

2 Mr. Jump then began to present the 2017 Draft Audit Report via Skype. Mr. Pontz mentioned that the draft has significant changes in the presentations, operations, and results from last year. The document will remain in draft form, while awaiting a document from the Virginia Retirement System. The document is an evaluation from last June on the pension plan, so the footnotes are mostly comprised of statistical info from the state s last year numbers. March 31 st is HUD s deadline, which is one deadline that cannot be missed because the penalty is too great. If the deadline is not adhered to then the Authority will be labeled as financially troubled. Mr. Jump s brief overview of 2017 Draft Audit Report included highlights of some of the most critical items in the table of contents. He explained how the information inputted by Mr. Pontz via the HUD system enabled, his firm to calculate the assets of the Authority. Mr. Jump explained to the Board, several Tax-Credit partnerships and information on not only the Authority s data, but that of other partnerships condensed financial statements. Commissioner LaLonde commended the financial team on their ability to show where all of the money is going. This year was especially overwhelming due to the fact that the financial team was able to break out the discrete properties visibility. This was something that had not been done previously. Commissioner LaLonde went on further to discuss how the Board now had oversight of almost 200 million dollars in assets. Which ultimately means that the Authority will have enough money to pay their bills for the next three and a half cycles. Pension liabilities was the next topic of discussion; during 2008 and 2012, a lot of companies were not funding their pensions. Being that the funding of pension plans is based upon stock market performance, it is Commissioner LaLonde s hope that within the next year PRHA can fully fund their pension plan. Mr. Bland praised the financial department and staff for where we are today. Mr. Pontz made a disclaimer that on page 15, there is over $71 million of unrestricted money, which will turn into operating reserves, therefore, leading people to believe that this is money available to spend. However, that and notes receivable are not liquid or collectible. Vice Chair. Washington questioned the difference between restricted and unrestricted? Mr. Pontz clarified that monies are appropriated for certain things such as, Section 8 and Public Housing, making the money mortgage receivable and not cash in the bank. Val Jenkins was absent during the meeting due to death in the family, so Ms. Winston stepped into give the report for Housing on her behalf. She presented the Board with two resolutions in order to write off bad debt. She explained that bad debt can stem from residents leaving the program without paying rent, property damages, or through receiving excess subsidy for not reporting additional income, etc. The debt being presented to the Board is from January 1, 2017 through June 30, Ms. Winston reiterated that just because this debt will be written off does not mean that the Authority cannot not still pursue collecting the debt owed. Public Housing has $29, 827 in uncollectible debt, consisting of twenty-five delinquent accounts. Assisted Housing has $13, in uncollectible debt, consisting of seventeen delinquent accounts. Ms. Winston restated that writing off bad debt is in accordance with policy that requires the Authority to write off bad debt every six months. Commissioner LaLonde mentioned that many of those who owe money no longer live in the Commonwealth and this poses difficulties when attempting to collect the debt. He went on to applaud the staff for their continued compassion towards those who are still in debt for one reason or another. As landlords we have the responsibility to collect debt. Ms. Winston made a recommendation to write of the bad debt. Commissioner Roberts asked whether any of the debts were due to death. According to the report there were three debts attributed to death in the Assisted Housing. Ms. Winston went on to further explain that a majority of the debt stems from Swanson Homes, which is approximately $8,000. The matter is currently in litigation with the representation of the tenant by Legal Aid, however, the matter is constantly continued without any rent being collected. Mr. Bland stated that there has been a new trend amongst other Authorities, which places rent owed to Authorities in escrow accounts until litigation is settled. Commissioner Roberts questioned what will be put into escrow, if no one is paying rent? Mr. Bland explained that whether the judge rules in the plaintiff s or the Authority s favor the money will be placed into an escrow account, until the case is decided. Vice Chair Washington commended the Authority on the amount of compassion given towards those former residents who still have bad debt on our ledger. As a previous landlord, Mr. Washington told a story of how a former tenant left his property without paying a tremendous light bill and it eventually became his responsibility to pay. 2

3 Chair Smith introduced Resolution : Resolution Writing Off Uncollectible Resident Account Receivable (Public Housing) in the amount of $29, Commissioner LaLonde made a motion to approve the resolution as presented, and Commissioner Roberts seconded: Chair Smith introduced Resolution : Resolution Writing Off Uncollectible Resident Account Receivable (Assisted Housing) in the amount of $13, Commissioner LaLonde made a motion to approve the resolution as presented, and Commissioner Cofield seconded: Mr. Bland asked if anyone had any questions on December 2017 Significant Activities Report. Commissioner LaLonde asked when would be the Wendy s Grand Opening? Mr. Donahue gave a window of within the next thirty days. Michelle Wren, the Executive Director of the Portsmouth Partnership came to speak to the Board about the four mission pillars of the partnership. She also shed some light on the positive relationships that have been fostered over the last few years between about six local Portsmouth companies, PRHA, the City of Portsmouth, and the Portsmouth Partnership. She mentioned that the Vann H. Lefcoe Leadership Development Fund program currently has nineteen participants and has graduated over five hundred people. PRHA has donated a $10,000 grant for the next two years, to assist the partnership and Ports Events with such events as First Fridays, The Concert Series, and the Farmer s Market. This year Towne Bank plans to match PRHA and also donate $5,000. Some of the activities in which the Portsmouth Partnership along with Ports Events have carried out are, Feet on the Street, First Fridays and the Farmer s Market in downtown Portsmouth. During the colder months, Portsmouth residents have the option to sample local beer at the MoMax Brewery in the Churchland neighborhood of Portsmouth. So far, $25,000 of the proceeds from these specific events have been donated back to the Children s Museum. In order to attract more tourism to Portsmouth, the partnership has partnered with the Downtown Portsmouth Renaissance Hotel and the Old Towne Business Association, to offer weekend packages, where guest can stay the weekend and visit any museum for free. Alisa Winston asked about the partnership s scholarship fund and whether the partnership planned to implement this once again. Ms. Wren was familiar with the former program and stated that this was something that they d like to implement in the near future. She concluded by saying that Portsmouth is typically an overlooked small town however, by having more events like Restaurant Week and First Fridays, Portsmouth will be able to bring in more revenue and tourism. Mr. Bland asked the Board to please review and provide staff with any questions or concerns they had in regards to the proposed PRHA Travel and Tool Policies. Which will be presented as Resolutions during the February Board Meeting. Mr. Bland would like for all policies to be implemented in March, but no later than April. Mr. Bland also proposed to the Board, the adoption of Summer Work Hours during the months of June through August, as well as offering staff Good Friday off so that they may have a long Easter holiday. Mr. Bland announced that the Board s Retreat will be held on February 10 th, in order to prepare for the joint work session with the City Council and EDA on March 10 th. Mr. Bland also went onto congratulate Commissioner LaLonde on his new job with the city. He also invited the Board members to attend the Annual MLK Breakfast being held on Saturday, February 3, For those 3

4 who would like to attend should let Mr. Bland know so that tickets may be purchased and any unclaimed tickets will be offered to the members of staff. Commissioner LaLonde commended Brian Donahue on his work at the City Council Meeting, which led to the acquisition of the cellphone tower across from Victory Crossing. He also recommended that the Board begin to invite an EDA representative to the Commissioner s Meetings, in order to promote unity amongst the two agencies. Commissioner LaLonde questioned how many PRHA staff members had begun to utilize the newly implemented 457-Compensation plan? Mr. Bland responded that he would have to ask the Human Resource Department for that information and it would be available at the next meeting. Commissioner LaLonde went onto question whether the implementation of the summer work hours and having Good Friday off were things that the staff would like to have? Being that there was a lack of participation at the free Christmas party, he suggested that Mr. Bland conduct a 360 climate survey, which will assist in making decisions on moving forward with such changes. He would also like to see more funding pushed towards cleaning up trash at the various housing properties across Portsmouth. During his visits to the various properties he has seen an increase in trash and feels the cleanup will assist in preserving the morale of these developments. Per the request of Mr. Bland, Mr. Donahue gave an update on the 2010 demolition of a small rental office during Phase II of the Dale Home project which led to the utilization of a portion of Capital funds. Mr. Donahue stated that the demolition of the building had possibly not been notated on the properties list, prior to demolition. Vice Chair Washington asked what would be the worst case scenario stemming from the demolition and Mr. Donahue answered that HUD is doing some research, but the Authority would have to reimburse HUD. This ultimately will cycle itself right back into PRHA funding. Commissioner Roberts questioned how the discrepancy was found? Mr. Donahue stated that the address was still in the system, but the physical building no longer existed. Vice Chair Washington voiced his concern with the Board s Meetings not being conducive with the schedules of those who would like to attend and how he s been approached by some in the public stating that the meetings are not as transparent as they should be. Mr. Bland responded to Vice Chair Washington, that the Authority is in the works of having all meetings video recorded and circulated on the local City of Portsmouth Channel. Others in the meeting agreed that no matter when or where the meeting is held someone will be inconvenienced or not be able to make it. Vice Chair Washington believes that that the more people in the meeting the more effective it will be. Chair Smith thanked the Board members for volunteering their time as Commissioner. He shared a few highlights from his trip to San Diego for the PHADA conference, in which Mr. Bland and Commissioner Cofield attended as well. While in San Diego he was able to network and absorb a great deal of information, as well as bring back worksheets from various workshops that he intends to share with his fellow board members. Chair Smith introduced Resolution : Resolution of Intent to Meet in Closed Meeting. Vice Chair Washington made a motion that the resolution be approved as presented, and Commissioner Roberts seconded. The meeting was adjourned at 6:19 p.m. and reconvened at 7:02 p.m. Chair Smith presented Resolution : Resolution Directing the Virginia Freedom of Information Act Certification Required by Section D of the Code of Virginia, As Amended, Be Included in the Authority s Minutes of This Meeting. Vice Chair Washington made a motion that the following resolution be approved as presented, and Commissioner Cofield seconded. Roll Call Votes: Commissioner Roberts- (left prior to the roll call vote); Commissioner Cofield- Yes; Commissioner LaLonde-Yes; Vice Chair Washington-Yes; and Chair Smith-Yes. Motion carried by unanimous 4

5 Mr. Bland invited all members of the Board to attend the employee mandatory Sexual Harassment Training being held on Friday, February 2 nd. He mentioned that this is a well needed training, especially in the wake of all the sexual allegations in the media today. There were no other comments and the meeting adjourned at 7:03 p.m. 5