Willington Housing Authority
MINUTES
May 11, 2015
60 Old Farms Road – Senior Center
Willington, CT
PRESENT – Chairman Robert Campbell, Vice Chairman Wilbur Gangaway, Secretary Don Berg, Treasurer Claudia D'Agata, Member Laurel Millix, Housing Consultant David Berto, First Selectman Christina Mailhos and Recording Secretary Brenda Sullivan.
1. Call to Order – The meeting was called to order at 6:04 p.m.
2. Present to speak – No member of the public present to speak. (Discussion by C. Mailhos of septic system permit is included under New Business.)
3. Old Business – Button Hill senior housing project.
D. Berto updated the WHA on the status of federal funds awarded for the Button Hill project.
Most recently, he said, the FHLB sent a letter committing the funds but it also contained previously undisclosed requirements, such as using rents that align with federal guidelines instead of based simply on the renter's income as submitted in the WHA budget. D. Berto said the budget the WHA submitted balanced; using the federal guidelines to set rents doesn't balance.
D. Berto said he reported this to them, but also asked if they would award the WHA $800,000 to buy and install solar panels, which would significantly lower electric costs, which would then make it possible to lower the rents. They didn't want to cover that cost, he said.
D. Berto said that about a week ago, he was informed by phone that the WHA will now receive state Department of Housing funds instead of federal funds. Also, an environmental review required under the federal funds was recently completed, but is no longer required because of the switch to state funds, D. Berto said.
Laurel Millix joined the meeting at 6:08 p.m.
D. Berto said that in order for the DOH to now give the WHA state funds, it has to go before the state Bond Commission. The Commission normally meets once a month but the April meeting was canceled. However, if the DOH gives the WHA a revised commitment letter, work on the closing can continue while awaiting the next meeting of the Bond Commission.
D. Berto also said that the DOH prefers to give loans. He said he will request that the DOH still give the Button Hill project the original base amount as a grant, but also approve a $600,000 loan to be paid with zero interest over 30 years ($20,000 a year) to buy solar panels. Those discussions are just beginning, he said.
R. Campbell noted that because of this new process with the DOH, construction cannot begin in the spring as planned but may be pushed to the end of July, which means the contractor's labor rates and materials costs may change – which the DOH needs to be made aware of. D. Berto said his office has been in contact with Zlotnick Construction to ask them to re-verify their pricing. His office is also verifying the state's current required wage rates, given the 6 month delay.
There was discussion about covering the costs of solar panels. R. Campbell asked D. Berg if C-PACE funding is possible. D. Berg said he believes it may be. There's also the Z-REC payments and rebate money (about $100,000) that will help cover costs, he said. R. Campbell noted that Z-RECs are cash flow to repay the loan.
There was discussion about alternative sources of funds for solar panels. D. Berto noted the WHA cannot get tax credits because it is a nonprofit. He asked if there may be an organization that would install the solar panels, receive tax credits, and sell the WHA electricity. D. Berg said there may be a lease arrangement like that. D. Berto said that any loan the WHA receives for solar should be zero-interest in order to get the financial benefit of solar generated power.
R. Campbell said the WHA should also look at finding lower costs for the appliances versus what was quoted by Zlotnick, as well as other changes that have the potential to save money such as changing the type of siding and using high-performance vinyl windows that are already trimmed.
C. D'Agata asked how the delay in construction, due to the changes in DOH funding discussed earlier, will affect the contractor, given a possible three-month delay. R. Campbell said contractors are familiar with these delays and adjust their hiring of subcontractors accordingly.
R. Campbell said Putnam Bank is working on a second extension.
4. New Business –
There was discussion of the existing septic system serving the housing complex and the senior center. R. Campbell said he is aware of the upcoming review of the system in order to renew the permit.
C. Mailhos said that in the time since the system was installed, nothing was done regarding being in compliance with the permit.
She said that the town anticipates the annual testing and monitor wells will cost a few thousand dollars a year, though she doesn't have an actual figure at this time. However, that doesn't include any kind of remediation or repairs that might be required as a result of the review. She said the testing and wells are being addressed now in anticipation of the review in a year.
R. Campbell asked if this work was put out to bid. C. Mailhos said the cost is less than $5,000.
D. Berg asked if this affects the Federal Home Loan Bank timing. D. Berto said, yes, but they've granted an extension. At this time, the FHLB funds are not in jeopardy.
D. Berg said he believes the town Building Department is close to completing its review and there will be further discussion of the permit fees.
D. Berto left the meeting at 6:37 p.m.
R. Campbell said it's better to keep the septic system permit current rather than have to reapply, which could involve digging up the system and a lot of additional costs.
D. Berg reported that he has the four signed Z-REC service agreements/contracts with EverSource.
R. Campbell reported that Ladd contractors came back to the site to complete their work and now Eric Peterson will check the grading. Ladd also will do some grass seeding.
5. Correspondence – C. D'Agata gave R. Campbell the monthly bills.
6. Approval of Minutes – D. Berg asked that words in parenthesis on line 51 be deleted. C. D'Agata moved to accept the minutes of April 13, 2015 as corrected. L. Millix seconded the motion. Motion passed unanimously.
7. Treasurer's Report – C. D'Agata reported a balance of $641.52.
8. Adjourn – The meeting adjourned at 6:50 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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