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05-29-2012SpecMtg 1 MINUTES OF A SPECIAL MEETING OF THE 2 MESILLA VALLEY PUBLIC HOUSING AUTHORITY 3 BOARD OF COMMISSIONERS 4 5 May 29, 2012 6 7 8 The Board of Commissioners of the Mesilla Valley Public Housing Authority held a 9 Special Meeting at their upstairs conference room located at 926 S. San Pedro Street, 10 Las Cruces, NM 88001. 11 12 1. CALL TO ORDER 13 14 Chairman Jir6n called the meeting to order at 10:30 a.m. 15 16 2. ROLL CALL 17 18 MEMBERS PRESENT: Art Jir6n, Acting Chairman 19 Felix Cordero, Commissioner 20 Arturo Marrujo, Commissioner 21 22 MEMBERS ABSENT: Ralph Chaffee, Vice Chairman (Excused) 23 24 STAFF: Robbie Levey, Interim Executive Director 25 Jesse Padilla, Interim Deputy Director 26 Sharon Hansen, Accountant 27 Christine Gonzalez, Executive Assistant 28 29 GUESTS: None 30 31 32 3. WELCOME AND INTRODUCTIONS 33 34 Chairman Jir6n welcomed and thanked everyone for coming to the meeting. 35 36 4. PUBLIC INPUT 37 38 Chairman Jir6n noted there was no one present from the public. 39 40 5. CONFLICT OF INTEREST INQUIRY BY CHAIRMAN AS REQUIRED BY 41 RESOLUTION NO. 2012-02 42 43 Pursuant to Resolution No. 783, Chairman Jir6n inquired if any Commissioner or staff 44 member had any known conflict of interest with any item on the agenda. No one 45 expressed or revealed any conflicts. 46 47 6. APPROVAL OF REGULAR AGENDA 48 49 Motion was made by Commissioner Marrujo to approve the regular agenda. Motion 50 was seconded by Commissioner Cordero. 1 1 Commissioner Jir6n — aye 2 Commissioner Marrujo — aye 3 Commissioner Cordero — aye 4 5 Motion was approved unanimously. 6 7 7. APPROVAL OF CONSENT AGENDA — Items marked with an asterisk (*) are 8 considered routine items and will be voted on with one motion. 9 10 N/A 11 12 8. APPROVAL OF THE MINUTES OF THE PREVIOUS REGULAR MEETING AND 13 OF SPECIAL MEETINGS, IF ANY 14 15 N/A 16 17 9. RESOLUTIONS 18 19 Resolution No. 2012-18 —Approving the Award of the Independent Audit 20 Contract for Fiscal Year 2012 21 22 Motion was made by Commissioner Cordero to approve Resolution 2012-18. Motion 23 was seconded by Commissioner Marrujo. 24 25 Commissioner Marrujo questioned the cost of next year's audit in comparison to this 26 year's cost. Ms. Hansen explained that in the past the Housing Authority had been 27 included in the City of Las Cruces' audit. Because we are now an independent entity, it 28 was necessary to prepare a Request for Proposals (RFP) and then rank proposals. 29 Commissioner Marrujo then asked if the Housing Authority will be doing this each year. 30 Ms. Hansen stated that we can request permission from the State Auditor to use the 31 same auditor for the following two years as long as there are no issues with the audit 32 firm. 33 34 Ms. Levey discussed the Audit contract stating that one audit would be done for the 35 Housing Authority of the City of Las Cruces for July 1, 2011 through December 31, 36 2011. A separate audit for the Mesilla Valley Public Housing Authority would be done 37 for the period of January 1, 2012 through June 30, 2012. Short discussion followed. 38 Chairman Jir6n asked if anyone had any additional comments. He then asked for a 39 vote on the motion to approve. 40 41 Commissioner Jir6n — aye 42 Commissioner Marrujo — aye 43 Commissioner Cordero - aye 44 45 Motion was approved unanimously. 46 47 Resolution No. 2012-19 —A Resolution Authorizing the Interim Executive 48 Director to Execute Certain Documents with Wells Fargo Bank and Dona 49 Ana Title Company on Behalf of MVPHA in Connection with Refinancing 50 the Mortgage for Oak Street Apartments 2 1 Chairman Jir6n stated that 2012-19 is the Resolution asking that the Interim Executive 2 Director be allowed to execute documents with Wells Fargo Bank and Dona Ana Title 3 Company for refinancing the mortgage for Oak Street Apartments. 4 5 Motion was made by Commissioner Marrujo to approve Resolution 2012-19. Motion 6 was seconded by Commissioner Cordero. 8 Chairman Jir6n asked if anyone had any comments. No comments were made, and 9 Chairman Jiron then asked for a vote on the motion to approve. 10 11 Commissioner Jir6n — aye 12 Commissioner Marrujo — aye 13 Commissioner Cordero — aye 14 15 Motion was approved unanimously. 16 17 Resolution No. 2012-20 — A Resolution Authorizing the Interim Executive 18 Director to Execute Certain Documents with Wells Fargo Bank and Dona 19 Ana Title Company on Behalf of the MVPHA in Connection with 20 Refinancing the Mortgage for Almendra Apartments 21 22 Chairman Jir6n stated that this Resolution is the same as 2012-19 except that this one 23 authorizes the Interim Executive Director to execute certain documents with Wells 24 Fargo Bank and Dona Ana Title Company for Refinancing the Mortgage for Almendra 2s Apartments. 26 27 Motion was made by Commissioner Cordero to approve Resolution 2012-20. Motion 28 was seconded by Commissioner Marrujo. 29 30 Chairman Jiron asked if anyone had any comments. Commissioner Marrujo stated that 31 he wants to be sure that the annual savings realized on these refinances be used 32 toward the properties. Ms. Levey stated that in the budget for FY 2013, Oak, Almendra 33 and Burley Court have their own funding. Chairman Jir6n stated that the Technical 34 Review form included in each Resolution states that savings will be used toward the 35 properties. 36 37 Chairman Jiron asked if there were any additional comments. He then requested a vote 38 on the motion to approve. 39 40 Commissioner Jir6n — aye 41 Commissioner Marrujo — aye 42 Commissioner Cordero — aye 43 44 Motion was approved unanimously. 45 46 Resolution No. 2012-21 — A Resolution Authorizing the Interim Executive 47 Director to Execute Certain Documents with Wells Fargo Bank and Dona 48 Ana Title Company on Behalf of the Mesilla Valley Public Housing Authority 49 in Connection with Refinancing the Mortgage for Burley Court Apartments 50 3 1 Chairman Jir6n stated that this Resolution is similar to the previous two resolutions, 2 except that this one is for Burley Court. It allows the Interim Executive Director to 3 execute documents with Wells Fargo and Dona Ana Title Company for refinancing the 4 mortgage for Burley Court. 5 6 Motion was made by Commissioner Cordero to approve Resolution 2012-21. Motion 7 was seconded by Commissioner Marrujo. 8 9 Ms. Levey stated that when Burley Court Apartments were split from Valley Vista 10 Apartments, the former Executive Director mortgaged Burley Court with Citizens Bank. 11 The New Mexico Housing Corporation was also on the mortgage. There was no due 12 diligence conducted by Citizens Bank. When Ms. Levey requested backup documents 13 authorizing the mortgage for Burley Court from Citizens Bank, they had none. Citizens 14 Bank recently confirmed that no due diligence was conducted by the bank. It is in the 15 best interests of the Housing Authority to refinance with Wells Fargo Bank. The new 16 loan will have only the Housing Authority on the mortgage, NMHC has been removed. 17 18 Chairman Jir6n asked if anyone had any additional comments. He then asked for a 19 vote on the motion to approve. 20 21 Commissioner Jir6n — aye 22 Commissioner Marrujo — aye 23 Commissioner Cordero — aye 24 25 Motion was unanimously approved. 26 27 11. NEW BUSINESS 28 29 Ms. Levey stated that today the proposed budget would only be discussed and actual 3o approval would be at the June 26, 2012 Board meeting. Chairman Jir6n asked what 31 criteria is used to get to the categories that are put in the budget. Ms. Hansen 32 discussed the proposed budget for Fiscal Year 2013 stating that to put in figures for the 33 budget, she looks at the history of expenses, where we are going, etc, and stated this 34 year was a very difficult year. Burley Court has no history since it has not stood on its 35 own before. Almendra, Oak and Pecos have not been budgeted at the site level so she 36 is estimating expenses. She stated that this budget is brought before the Board with 37 their best efforts but most likely the budget will be revised. Ms. Levey reminded the 38 Commissioners that HUD funding is not on a yearly basis, it is on a month-to-month 39 basis. 40 41 Chairman Jir6n asked if they could adjust the budget accordingly by moving from one 42 particular project to another. Ms. Hansen stated that is not possible since, for example, 43 the Section 8 Voucher program money cannot be used for Public Housing expenses. 44 She stressed the importance of having developer's fees available because there is no 45 restriction on those funds. Ms. Levey then stated that last year, the former Executive 46 Director used $285,000 from operating reserves for Public Housing to plug the deficit 47 despite HUD saying not to do this. Ms. Levey stated that when the budget is approved 48 by the Board of Commissioners each year in June, HUD does not get a copy of the 49 budget. All HUD requests is a copy of the Resolution approving the budget. 50 4 1 Mr. Jiron commented that the Board could not tell during the year whether expenses are 2 within budget. Ms. Hansen replied that the income statements presented in the monthly 3 board reports show the budgeted and actual expenditure for each line item in each 4 program. 5 6 Ms. Levey also stated that funding for the Family Self Sufficiency (FSS) program will not 7 be available until January 1, 2013 (if awarded) since HUD now funds this program on a 8 calendar year basis. Therefore, funds from July 1, 2012 through December 31, 2012 9 are not available and will require laying off the FSS Coordinator at the end of June 10 2012. 11 12 She also mentioned that premium co-payments for employees have been paid by the 13 Housing Authority at 80 percent and employees have paid 20 percent. Because of the 14 budget deficit, we are reducing the Housing Authority's portion to 75 percent and 15 increasing the employee's portion to 25 percent. Employees have already been 16 notified. Ms. Levey stated that next year we will be short one half of our 2012 Capital 17 Fund Program, the State may be increasing the PERA contribution rate by 2 percent 18 which will impact the Housing Authority, and we may also not have any business 19 activities funding. Rather than taking a big hit next year, we are trying to scale down 20 little by little. 21 22 Commissioner Marrujo asked what are sundry expenses. Ms. Hansen stated that 23 sundry expenses are miscellaneous items, such as court costs and filing fees. 24 Commissioner Marrujo also asked why there is no contingency funding in the budget. 25 Ms. Hansen stated because that is not a recognized item that we are required to have in 26 place. 27 28 Ms. Levey stated that Robledo Ridge will have its own budget and will be paying 29 salaries and benefits for its property manager and maintenance staff. Also, the new 30 procurement officer has gone out to bid on such items as pest control, locksmith, 31 landscaping, some things that are routine in nature, and now we have someone in place 32 for such items, anticipating these costs may be reduced. 33 34 Chairman Jiron stated he understood that by approving the Resolution allowing the 35 Interim Executive Director to sign for items $50,000 or less could serve as a 36 contingency fund since we should be able to purchase whatever items are needed. 37 Ms. Levey clarified that the Resolution (Resolution No. 2012-15) was for the Interim 38 Executive Director to sign documents such as mortgage documents, not just to move 39 money around from one place to another. Per Ms. Hansen, we are required to maintain 4o a fiscal year budget, but HUD funds on a calendar-year basis. 41 42 9. ADJOURNMENT 43 44 There being no further business, Commissioner Marrujo made a motion to adjourn the 45 meeting. Motion was seconded by Commissioner Cordero. 46 47 Commissioner Jiron — aye 48 Commissioner Marrujo — aye 49 Commissioner Cordero — aye 50 Motion approved unanimously. Meeting adjourned at 10:52 a.m. 5 1 SEAL APPROVED BY 2 3 4 5 6 ArtT*6n7hairman 7 8 9 SUBMITTED BY 10 11 12 14 Robbie R. Levey, Interim Executiv Director 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 6