Willington Housing Authority
MINUTES
October 20, 2014
60 Old Farms Road – Senior Center
Willington, CT
PRESENT – Chairman Robert Campbell, Vice Chairman Wilbur Gangaway, Secretary Don Berg, Member Laurel Millix, Treasurer Claudia D'Agata, Financial Consultant David Berto, Recording Secretary Brenda Sullivan.
1. Call to Order – The meeting was called to order at 6:03 p.m.
2. Present to speak – No member of the public present to speak.
3. Old Business – Button Hill senior housing project
D. Berto discussed change orders and associated costs, the first being storm drains and basins ($2,000) and the second being installation of electrical conduits through the road during the current phase of work ($10,000). He noted that certain issues with the site have come to light, however, which affect funds available for these two items. The currently installed water lines aren't deep enough – they are in danger of freezing – and the cost to bury them deeper would be approximately $10,000. Also, an unexpected number of large rocks on the site needed to be hauled away and the cost for this work is currently estimated at $35,600. Therefore, the total for addressing the water lines and the rocks exceeds what was earmarked for the change orders.
D. Berto said he and R. Campbell discussed with the contractor (Ladd) whether they would lower the charges for removing the rocks by $10,000, which would free up enough funds to lower the water lines.
D. Berg said he believes Ladd wasn't aware of how much money was earmarked for change orders.
R. Campbell noted that Ladd hasn't been following procedures for paying bills in a timely manner.
D. Berto asked D. Berg if he believes, as a result of having a discussion with Ladd, that the contractor is willing to lower the price for removing the rocks.
D. Berg said he believes they have concerns that they may not be paid for the work.
R. Campbell said the contractor will be paid for the rock removal but lowering the water lines is important. He said initially it appeared a portion of the line had to be lowered but it's now apparent all of the line has to be lowered. He said the change order is correct, it calls for lowering the line anywhere on the site within the project boundaries.
D. Berto said that if the cost of rock removal isn't reduced, installing the electrical conduits through the road now cannot be done.
D. Berto also reviewed the Department of Housing/Department of Labor discussion about whether the Button Hill project needed to use prevailing wages. When it was determined prevailing wages were required, contractor Zlotnick Construction was asked to adjust their estimated costs for their part of the project. The DOH awarded the Button Hill project an additional $750,000 to cover the wages, but Zlotnick's revised costs totaled $800,000. D. Berton said Zlotnick claims costs for subcontractors have increased by $50,000 during the time when the prevailing wages question was being debated. This puts the project over budget.
D. Berto, D. Berg and R. Campbell have had discussions with Zlotnick and have concluded that if Zlotnick cannot bring its costs down, the project will be sent back to the previously qualified bidders to be re-bid. R. Campbell said that the delays with Zlotnick providing updated pricing is throwing is affecting the project meeting its deadlines.
D. Berto noted the WHA isn't allowed to enter into a contract with Zlotnick until both sides agree on the final costs, so neither the WHA or the contractor are currently bound to an agreement. He said Zlotnick spoke with Lynne Skeet at his office today and they were not planning to change their prices. He also noted that Zlotnick did reduce its overhead and profit margin to 4 percent. He said that if Zlotnick's estimates are accepted by the WHA, the committee will have to document the validity of these figures in order to approach the DOH for additional funds. He pointed out that it was the DOH – not the Willington Housing Authority – that came up with the $750,000 figure to comply with prevailing wages, so this might be taken into consideration if the WHA asks for additional funds.
D. Berg suggested that the Town might help by waiving or lowering the $75,000 building permit fee and said he will talk with the First Selectman about whether this is possible.
R. Campbell noted that the WHA is incurring costs that benefit the town: lowering the water lines, connecting the water lines to the Senior Center, site cleanup that includes the previous senior center project, and having 40-50 large rocks removed from the site.
R. Campbell also noted Zlotnick could have looked at the plans to find places where costs could be lowered to stay within the project's budget.
Related to these discussions, the WHA passed the following resolutions:
Resolution 1
“If reasonable pricing as discussed with the current contractor (Zlotnick Construction) is not provided to the WHA by Oct. 23, 2014, the WHA will on Oct. 24 invite all previously qualified contractors (including Zlotnick) to reprice the Button Hill Senior Housing Project, based on the bid package – not including the work currently underway – with bids to be returned to the WHA no later than Nov. 17, 2014.”
C. D'Agata made the motion to approve this resolution, L. Millix seconded the motion; D. Berg abstained from the vote. All others voted in favor. Motion passed.
Note – L. Millix left the meeting at 7:55 p.m.
Resolution 2 (see attached scanned document)
“Certified Resolution of the Governing Body” required by the CT Department of Housing
“WHEREAS, pursuant to Section 8-206 of the Connecticut General Statutes, the Connecticut Department of Housing is authorized to extend financial Assistance for housing development projects; and
WHEREAS, it is desirable and in the public interest that the Willington Housing Authority make an application to the State for $3,135,000 in order to undertake the Button Hill Senior Housing Project and to execute an Assistance Agreement,
NOW THEREFORE, BE IT RESOLVED BY THE Board of Directors
1. That is is cognizant of the conditions and prerequisites for the state financial assistance imposed by Section 8-206 of the Connecticut General Statues, as amended and 24 CFR Part 92 of the regulations of the United States Department of Housing and Urban Development.
2. That the filing of an application for State financial assistance by Willington Housing Authority in an amount not to exceed $3,135,000 is hereby approved and that
Robert Campbell, Chairman is directed to execute and file such application with the Connecticut Department of Housing to provide such additional information, to execute such other documents as may be required, to execute an Assistance Agreement with the State of Connecticut for State financial assistance if such an agreement is offered, to execute any amendments, decisions, and revisions thereto, and to act as the authorized representative of Willington Housing Authority.
W. Gangaway moved to approve the resolution, C. D'Agata seconded the motion – all present voted in favor. The resolution passed.
Resolution 3
(see attached scanned document)
“Willington Housing Authority Resolution for Borrowing” (from Putnam Bank)
RESOLVED, That the corporate action taken as necessary to borrow from Putnam Bank up to $20,000 as a predevelopment loan for predevelopment costs associated with the Button Hill Apartments elderly housing project in Willington, CT; and
RESOLVED, That the Chairman and/or the Secretary be, and each hereby is, authorized to enter into, execute and deliver in the name of and on behalf of the corporation, all such documents required by Putnam Bank or as may be necessary or appropriate to consummate the transactions contemplated by the foregoing resolutions.
D. Berg moved to approve the resolution, W. Gangaway seconded the motion – all present voted in favor. The resolution passed.
The WHA also agreed to cancel the regular Nov. 17, 2014 meeting and schedule a Special Meeting for Nov. 24 at 6 p.m. in order to discuss the repriced bids, if Zlotnick Construction does not meet the Oct. 23 deadline for new pricing.
4. New business – None.
5. Approval of Minutes
D. Berg made the motion to approve the Sept. 8, 2014 minutes with the following corrections – Line 60, correct spelling of ASH0w and Line 82, correct spelling of ZREC. C. D'Agata seconded the motion – all present voted in favor. Motion passed.
6. Treasurer's Report
C. D'Agata reported the balance as of Sept. 8, 2014 is $2,324.47, which includes $700 from the town [reimbursement of bidder map fees for G&P], and deduction for $69.97 for secretarial expenses.
7. Adjourn – The meeting adjourned at 8:26 p.m.
Respectfully submitted by Recording Secretary Brenda Sullivan. Please note that minutes are posted prior to being officially approved – changes/corrections are indicated in the subsequent month’s meeting minutes.
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