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03-12-1996 I MINUTES OF A REGULAR MEETING OF 2 THE HOUSING AUTHORITY OF THE CITY 3 OF LAS CRUCES BOARD HELD ON 4 MARCH 12, 1996 5 6 The Board Meeting of the Housing Authority of the City of Las Cruces was held at 6:12 7 8 p.m. at 926 S. San Pedro, in the City of Las Cruces, State of New Mexico. 9 10 1. Roll Call. 11 12 The meeting was called to order by Lorraine R. Gutierrez, Chairperson. 13 14 MEMBERS: Lorraine R. Gutierrez, Chairperson 15 Daniel V. De La 0, Commissioner 16 Trevas Y. Ryan, Commissioner 17 Frances Williams, Commissioner 18 19 ABSENT: Alice E. Holmes, Commissioner 20 (excused) 21 22 OTHERS: Andrew Holguin, Interim Exe. Director 23 Caroline Velarde, Executive Secretary 24 Sharon Hansen, Accountant 25 Delbert Ortiz, Maintenance Manager 26 Tom Hassell, Modernization Manager 27 Sam Encinias, Planner/Grant writer 28 Cruzita Herrera 29 Jeff Collins 30 31 * 2. Approval of the Minutes of a Special Meeting for February 12, 1996. 32 33 * 3. Approval of the Minutes of a Regular Meeting for February 13, 1996. 34 35 * 4. Approval of the Minutes of a Special Meeting for February 16, 1996. 36 37 * 5. Approval of the Minutes of a Special Meeting for February 27, 1996. 38 39 * 6. Approval of Payments for the month of February 1996. 40 41 * 7. Financial reports for the period ending January 31, 1996. 42 43 * 8. Vacancy, Eviction, Personnel and Maintenance report for the period ending 44 February 29, 1996. 45 46 Chairperson Gutierrez entertained a motion to approve the above consent agenda. So 47 moved by Commissioner De La 0. Seconded by Commissioner Ryan. Chairperson 48 Gutierrez took a vote for approval: 49 Commissioner De La 0 voted in favor. 50 Commissioner Ryan voted in favor. 51 Commissioner Williams voted in favor. 52 Motion carried. * consent agenda 1 53 9. Public Participation. 54 There was no public participation. 55 10. Interim Executive Director's Report. 56 a. Audit for FY1995 57 On March 1 st, the HACLC received the results of the audit for fiscal year 1995. There 58 were three findings cited in the audit that Sharon Hansen, Accountant, explained at 59 length that dealt with the emergency procurement to have the personnel policy revised; 60 the federal financial reporting; and the Series A bond issue. 61 b. FY 1997 Operating Budget 62 Ms. Hansen gave the Board an overview of the operating budget and its current status. 63 Ms. Hansen explained that she is working on the preliminary stages of the budget 64 beginning with the salaries. 65 c. Bank accounts, balances and signatures 66 Ms. Hansen apprised the Board of what had transpired since the separation of the 67 former Executive Director in regards to the bank accounts, the balances and the 68 signatures. 69 d. Special Internal audit 70 Mr. Holguin explained that he asked Ms. Hansen to research what it would cost to have 71 a full audit done. The CLC recently completed its audit and the HACLC will need to 72 pay its portion of the audit which is $5,106.00. The Board decided that it would be cost 73 effective to have the internal auditor conduct a limited audit since the separation of the 74 former Executive Director. 75 e. CDBG Application - Truant Officer 76 Mr. Encinias, Planner/Grant writer, apprised the Board on the status of the CDBG grant 77 application. Basically, the HACLC is requesting funds to continue the position of the 78 agency's Truant Officer for another year. Mr. Encinias explained that the Truant Officer 79 was hired under the 1995 Drug Elimination Multi-Family Grant application. The Truant 80 Officer's job consists of networking with Las Cruces Public Schools; tutoring the 81 students; getting students back into school or helping them with job placement. 2 82 f. Tax Credit Project 83 At Mr. Holguin's request, Mr. Encinias conducted more research on the tax credit 84 project. Mr. Encinias briefly explained his findings. The proposal that Mr. Sanders of 85 Jaynes Corporation presented to the Board at last month's meeting to have the HACLC 86 apply for the 1996 Low Income Housing Tax Credit appears to be a good opportunity 87 for the organization to develop an additional 100 units of affordable housing. Misters 88 Holguin and Encinias reviewed the file and spoke with Mr. Sanders to answer some 89 preliminary questions. Mr. Encinias pointed out that the State of New Mexico has 90 extended the deadline for application from March to July 1, 1996. 91 Mr. Encinias continued to say that before the HACLC continues to explore this project 92 further, the agency must determine if it meets the minimum qualification of applying 93 under the auspices of a non-profit organization. Specifically, could the agency apply 94 under the Las Cruces Housing Development Corporation (LCHDC) which is classified 95 as a non-profit under the New Mexico Corporation Commission? The former Executive 96 Director always gave the impression that LCHDC was a "Single Purpose" non-profit 97 classified under section 501(c)(2) of the IRS code. 98 A review of the LCHDC By-laws and Articles of Incorporation showed that it was 99 organized in 1977 to: 100 To review the serious shortage of decent, safe and sanitary housing for persons 101 of families of low income in Las Cruces, NM. 102 103 To engage in or assist in the development of operation of the low-income 104 housing as an instrumentality of the HACLC and the CLC. 105 106 The By-laws and Articles express the fairly broad powers of the LCHDC, which includes 107 the ability to issue bonds. 108 Currently, the LCHDC's sole function is to act as the "Issuer" of bonds for the HACLC's 109 Section 8 New Construction units located off of Valley Drive and Burley Court 110 respectively. These bonds were recently re-financed. Mr. Encinias briefed through the 111 Indenture which outlines the requirements between the Issuer and Trustee, First 112 Security Bank of New Mexico (FSBNM) in Albuquerque. There was a lot of 113 documentation written by various attorneys. 114 Mr. Encinias further explained that Ms. Kathy Earl of FSBNM recommended that a legal 3 115 opinion would be essential to determine if the HACLC can pursue with the tax credits. 116 In addition, the HACLC will need to ensure that pursuing the tax credits will not 117 jeopardize the tax-exempt status of interest payments to bond holders on the debt 118 service. To do so will mean default on the debt which require the bonds to be 119 immediately paid off. These requirements are under sections 103(b)(2) and 148 of the 120 Internal Revenue Code. 121 Mr. Encinias concluded that if the Board agreed to pursue this initiative, it was 122 suggested that they resolve to have legal counsel research the matter. An opinion 123 should be issued indicating what can and cannot be done by the LCHDC under the 124 auspices of all applicable and existing requirements. It should also address what non- 125 profit designation has been issued by the IRS to the LCHDC. 126 g. Las Cruces Housing Development Corporation (LCHDC) 127 Mr. Holguin informed the Board that since the separation of the former Executive 128 Director, there are only two active board members for the LCHDC. The former 129 Executive Director served as the President, while Mr. Raymond H. Rede is the Vice 130 President and Mr. Holguin the Secretary/Treasurer of the corporation. The LCHDC 131 annual meeting was scheduled for March 5th as per the By-laws, however, Mr. Rede 132 was unable to attend. The meeting will be rescheduled on a later date in the month. 133 There was a lengthy discussion about the possibility of having more people on 134 corporation board. A question was raised about what kind of role does person serve on 135 the corporation board. Due to the circumstances of the separation of the former 136 Executive Director, it was suggested that the current Secretary/Treasurer be appointed 137 as Acting President and that the current Vice President be appointed as Acting 138 Secretary/Treasurer until further notice. 139 Chairperson Gutierrez entertained a motion that Mr. Holguin be appointed as Acting 140 President and that Mr. Rede be appointed as Acting Secretary/Treasurer for the 141 LCHDC and be authorized to sign the Nonprofit Corporate Report. So moved by 142 Commissioner Williams. Seconded by Commissioner Ryan. Chairperson Gutierrez 143 took a vote for approval: 144 Commissioner De La O voted in favor. 4 145 Commissioner Ryan voted in favor. 146 Commissioner Williams voted in favor. 147 Motion carried. 148 h. NM3-10 budget 149 Mr. Tom Hassell, Modernization Manager, apprised the Board on the status of project 150 NM3-10 (the acquisition of 19 units) which was recently completed. Mr. Hassell 151 explained that due to unforeseen construction problems, the work will come in at 152 $3,225.23 over the approved budget. Mr. Hassell explained the reason for the budget 153 overrun. The following is a cost breakdown of the current budget: 154 Original Budget $1,562,750.00 155 Expended To Date $1,542,467.87 156 Remaining Budget Balance $20,282.13 157 Contract Balance to complete rehab. Work $23,507.36 158 Budget overrun ($3,225.23) 159 160 Mr. Hassell noted that the above figures included the purchase of the units, consultant 161 fees, administrative fees, property taxes, etc. 162 163 The costs relating to just the construction portion of the project are as follows: 164 165 Original Contract Price $298,247.00 166 Total Change Orders (asbestos, roofing, vandalism) $36,637.26 167 Total Contract $334,884.26 168 Total Contract with Tax $356,233.13 169 Percent Change Orders (10% is average) 12.28% 170 171 The change orders in detail are as follows: 172 173 Change Order#1: $14,928.26 174 175 Roofing and roof decking was done in eight units; the electrical service panel in one 176 unit was not up to code and therefore, replaced. In addition, various ductwork was 177 performed to meet code requirements. 178 179 Change Order#2: $5,192.00 180 181 There was extensive vandalism done at one unit on Eugene Drive and minor vandalism 182 at one unit on Wingate Road. 183 184 185 186 5 187 Change Order#3: $12,915.00 188 189 The removal of asbestos tile in four units was performed. 190 191 Change Order#4: $3,602.00 192 193 There were various minor changes (primarily electrical work) in all 19 units which was 194 not foreseen in the original bid specifications. 195 196 The Modernization Department is requesting approval to expend $3,225.23 of the 197 Section 8 retroactive HAP budget to offset the above budget shortfall. There are some 198 final electric bills that need to be paid on approximately five units. The current balance 199 of the Section 8 retroactive HAP budget is as follows: 200 Current Balance $57,554.12 201 Less Budget Shortfall above $3,225.23 202 Remaining Balance $54,328.89 203 204 Chairperson Gutierrez entertained a motion authorizing the reallocation of funds from 205 the Section 8 New Construction retroactive HAP payment to be allocated to acquisition 206 NM 3-10 in the amount of $5,000. So moved by Commissioner Williams. Seconded by 207 Commissioner De La O. Chairperson Gutierrez took a vote for approval: 208 Commissioner De La O voted in favor. 209 Commissioner Ryan voted in favor. 210 Commissioner Williams voted in favor. 211 Motion carried. 212 L Journeyman Electrician 213 As requested by the Board at last month's meeting, Mr. Hassell provided information 214 validating the reasons for acquiring a Journeyman Electrician. Mr. Hassell explained 215 that he researched the status of performing electrical work through routine 216 maintenance. The following are his findings: 217 1. State regulations require that a licensed electrical journeyman electrician must be 218 available to perform any and all aspects of electrical work, including things such as 219 replacing light switches. The State will allow an organization such as the HACLC to 220 have one licensed journeyman directing the work of up to three laborers, however 221 the journeyman must be present at all times during the work process. 222 223 2. In the event the HACLC is found in violation of the above, such as having the non- 224 licensed maintenance employees performing repairs without licensed supervision, 225 the Construction Industries Division can prosecute the individual in violation and 6 226 penalize that person with up to 90 days in jail and/or a monetary fine not less than 227 $1,000 and not more than $300.00. The organization would not be held liable, 228 although if a worker were to be injured or killed in performance of this work, the 229 HACLC could be held liable to civil prosecution. 230 231 In light of the above and based on the amount of current and potential future work 232 relating to electric repairs, it seems apparent that the HACLC must bring a licensed 233 journeyman on staff. This could be accomplished in a number of ways as follows: 234 1. Hire a full/part time journeyman electrician. 235 2. Contract the work to a licensed electrical firm on an as needed basis. 236 3. Train someone in-house to complete the training necessary to achieve journeyman 237 status. 238 239 Mr. Hassell pointed out that the HACLC has made attempts to hire a licensed 240 journeyman electrician, however, this has not been successful primarily because the 241 hourly rate being offered was not comparable to the standard local rate. Currently, 242 licensed journeymen are being payed on average of $10.00 to $12.00 per hour and up 243 to $25.00 per hour based on Davis-Bacon jobs. 244 Mr. Hassell further explained that contracting an electrical firm may not be cost 245 effective or even achievable depending on the perceived need and the amount of work 246 to be performed. The average cost for an electrician is $25.00 to $50.00 per call with a 247 minimum half hour charge. A contract electrician may not be available immediately 248 when needed causing some inconvenience or possible hazard to HACLC clientele. 249 The procurement of these services would be very time consuming under the HACLC's 250 present procurement policy and procedures. 251 He went on to say that training someone in-house has many benefits, however, one 252 drawback to this is that state regulations require that "No individual is eligible to take an 253 examination for a certificate of competence (journeyman's license) unless the person 254 has had two year experience in the occupation or trade for which a certificate of 255 competence is sought." 256 A lengthy discussion ensued pertaining to the three options that were given. The 257 Board asked Mr. Ortiz, Maintenance Manager as to why it has been difficult for the 258 HACLC to obtain a Journeyman Electrician. Mr. Ortiz informed the Board that not many 259 would-be applicants are keen to the idea of working for $7.77 per hour if it requires 260 them to have a license when they could earn more money somewhere else. Mr. Ortiz 7 261 explained that one applicant was interested in taking the job and doing other 262 maintenance assignments if only the hourly rate would be at least $8.50. The Board 263 took this into consideration and thought that perhaps the hourly rate could be increased 264 to $8.50 if the applicant would accept the job. Mr. Ortiz assured the commissioners 265 that the applicant was genuinely interested in the position. Mr. Ortiz did point out that 266 he has one maintenance employee who has been with the agency for 15 years and has 267 a journeyman plumber's license yet earns less than $8.50 per hour. It would not be fair 268 to pay the licensed journeyman electrician more money due to the fact that a licensed 269 journeyman plumber generally earns more. 270 Chairperson Gutierrez commented that since the HACLC is currently working on the 271 budget, that a proposal should be made for the licensed journeyman plumber's salary 272 be adjusted accordingly. The Chairperson recommended that it be considered as a 273 salary re-adjustment. The Board recommended that all salaries be reviewed for 274 comparability. 275 Chairperson Gutierrez entertained a motion authorizing the HACLC to immediately re- 276 advertise the Journeyman Electrician's position which will also include performing 277 other maintenance duties as required per the job description at the hourly rate of $8.50. 278 So moved by Commissioner Williams. Seconded by Commissioner De La O. 279 Chairperson Gutierrez took a vote for approval: 280 Commissioner De La O voted in favor. 281 Commissioner Ryan voted in favor. 282 Commissioner Williams voted in favor. 283 Motion carried. 284 j. Letterhead logo 285 Mr. Holguin stated that he recently discovered that the logo on the proposed letterhead 286 presented at last month's meeting has a copyright; therefore, the HACLC will not be 287 able to use it as its own. It was decided to have a contest in which the employees 288 would participate by submitting their ideas for a new logo. 289 k. Inventory of HACLC property 290 Ms. Hansen stated that she and Mr. Eddie Clark, former Maintenance Inventory Aide, 8 291 conducted an inventory in January resulting in no findings, errors or discrepancies. 292 Since the separation of the former Executive Director, Ms. Hansen conducted an 293 inventory on February 14, 1996, which resulted in no findings, errors or discrepancies. 294 I. Cellular phone 295 Mr. Holguin informed the Board that he had instructed Ms. Velarde to place the 296 services of the cellular phone on suspension. Since the separation of the former 297 Executive Director, no staff members have utilized the cellular phone. It behooved the 298 HACLC to suspend the services at a rate of $5.00 a month for three (3) months rather 299 than paying the regular monthly service fee of $49.95 plus tax. The Board agreed that 300 this decision was cost effective. 301 m. Resolution No. 541 - A Resolution To Revise The Personnel Policies And 302 Procedures Manual For The Housing Authority Of The City Of Las 303 Cruces. 304 The Board tabled this item and will address it at the April board meeting. 305 11. Discussion regarding limited personnel matters. 306 Chairperson Gutierrez entertained a motion to go into closed session at 6:15 p. m. So 307 moved by Commissioner De La 0. Seconded by Commissioner Ryan. Chairperson 308 Gutierrez took a vote for approval: 309 Commissioner De La 0 voted in favor. 310 Commissioner Ryan voted in favor. 311 Commissioner Williams voted in favor. 312 Motion carried. 313 Chairperson Gutierrez entertained a motion to reconvene into open session at 6:35 314 p.m. So moved by Commissioner Ryan. Seconded by Commissioner Williams. 315 Chairperson Gutierrez took a vote for approval: 316 Commissioner De La 0 voted in favor. 317 Commissioner Ryan voted in favor. 318 Commissioner Williams voted in favor. 319 Motion carried. 9 320 Chairperson Gutierrez entertained a motion to go into closed session at 9:35 p.m. So 321 moved by Commissioner De La O. Seconded by Commissioner Williams. Chairperson 322 Gutierrez took a vote for approval: 323 Commissioner De La O voted in favor. 324 Commissioner Ryan voted in favor. 325 Commissioner Williams voted in favor. 326 Motion carried. 327 Chairperson Gutierrez entertained a motion to reconvene into open session. So moved 328 by Commissioner Ryan. Seconded by Commissioner Williams. Chairperson Gutierrez 329 took a vote for approval: 330 Commissioner De La O voted in favor. 331 Commissioner Ryan voted in favor. 332 Commissioner Williams voted in favor. 333 Motion carried. 334 Chairperson Gutierrez entertained a motion authorizing a five percent (5%) salary 335 adjustment increase for Thomas Hassell effective the pay period starting on February 336 21 st during the interim period as Deputy Director. So moved by Commissioner Ryan. 337 Seconded by Commissioner Williams. Chairperson Gutierrez took a vote for approval: 338 Commissioner De La O voted in favor. 339 Commissioner Ryan voted in favor. 340 Commissioner Williams voted in favor. 341 Motion carried. 342 Chairperson Gutierrez entertained a motion to authorize payment to Mary T. Torres, 343 attorney, for services rendered as per the submitted invoice of February 14th and for 344 two invoices dated March 11 th. So moved by Commissioner Williams. Seconded by 345 Commissioner Ryan. Chairperson Gutierrez took a vote for approval: 346 Commissioner De La O voted in favor. 347 Commissioner Ryan voted in favor. 348 Commissioner Williams voted in favor. 349 Motion carried. 10 350 351 352 12. Recommendations and Comments by Board Members. 353 * Chairperson Gutierrez announced that Mrs. Frances Williams has been appointed as 354 the newest board member to the HACLC. The Chairperson stated that Vice 355 Chairperson Flores was no longer a commissioner due to personal circumstances. The 356 Board Members and others present welcomed Commissioner Williams to the HACLC. 357 * Commissioner Ryan stated that she will no longer be working as the coordinator for 358 Teen Court. However, she would like to see the HACLC get more involved with Teen 359 Court especially since some of the clients consist of HACLC youth. Commissioner 360 Ryan observed that the HACLC's Truant Officer, Hope Bueno, attended a court session 361 accompanied by some young people who reside in the housing neighborhoods. 362 * Commissioner Ryan requested that arrangements be made to have the newest board 363 member, Commissioner Williams, registered as a member to National NAHRO. It was 364 also requested that copies of the minutes for the past six (6) months be made available 365 for the new commissioner to peruse through. 366 * The Board instructed Mr. Holguin to make arrangements to reactivate the HACLC's 367 agency membership with National NAHRO. 368 * Commissioner Williams offered her services ( at no charge) to train the employees in 369 the areas of sexual harassment, goal setting, and team building. The commissioners 370 thought that this was a good idea and thanked Commissioner Williams for providing her 371 services. 372 13. Other Business. 373 Mr. Holguin requested to take annual leave from May 28th through June 7th. 374 Chairperson Gutierrez entertained a motion to approve Mr. Holguin's request. So 375 moved by Commissioner Williams. Seconded by Commissioner Ryan. Chairperson 376 Gutierrez took a vote for approval: 377 Commissioner De La 0 voted in favor. 378 Commissioner Ryan voted in favor. 11 379 Commissioner Williams voted in favor. 380 Motion carried. 381 Adjournment. 382 Chairperson Gutierrez entertained a motion for adjournment. So moved by 383 Commissioner Williams. Seconded by Commissioner De La O. Chairperson Gutierrez 384 took a vote for approval: 385 Commissioner De La O voted in favor. 386 Commissioner Ryan voted in favor. 387 Commissioner Williams voted in favor. 388 Motion carried. 389 Adjournment 11:12 p.m. 390 SEAL ..,;;,r.xAPPROVED BY, Cg-ole 391 '••' . . 392 ,m #~i 393 394 �'� Lorraine R. Gutierrez, Chairperson 395 396 397 398 399 SUBMITTED BY, 400 401 402 403 404 Andrew T olguin, Interim EZOEWve Director 405 406 12