Revised 5-17
MINUTES
Willington Housing Authority
Monday, May 9, 2016 – 6 p.m.
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, Recording Secretary Brenda Sullivan.
1. Call to Order – The meeting was called to order at 6:06 p.m.
2. Present to speak – No members of the public present to speak.
3. Old Business – Button Hill senior housing project
There was discussion about using Harvey vinyl windows for the Button Hill project. R. Campbell said he negotiated a $6,000 savings on windows. He noted the locks on these windows can also be activated via a string, therefore complying with an ADA maximum-height requirement (to operate the window). The windows also won't need to be painted and they have built-in screens.
W. Gangaway moved, and C. D'Agata seconded the following motion:
The Housing Authority will purchase Harvey windows for the Button Hill Senior Housing project.
The motion passed unanimously.
There was discussion about tile underlayment (Ditra waterproofing underlayment mat) to address concerns about potential water leaks from the roll-in showers on the second floor. Also discussed was whether to install the same underlayment in the entryways where there also would be ceramic tile. The underlayment wouldn't be necessary on the first floor because the floor is laid on concrete.
R. Campbell said the underlayment is an additional $5,645 cost. He said it shouldn't be needed if caulking is done correctly.
D. Berg questioned whether underlayment is needed in the entryways. C. D'Agata asked what the savings would be if it wasn't used in the entryways. D. Berto said about $1,000. He also said weighted shower curtains should be purchased to minimize water on the bathroom floor, versus expecting the tenants to supply them.
W. Gangaway said he favored the underlayment. Even though the units will be inspected annually, it would be easy not to see a crack in the caulking, he said.
D. Berg said spending approximately $4,000 for the underlayment in the bathrooms doesn't seem like an unreasonable price compared to water damage and repair costs.
C. D'Agata said she's in favor of underlayment for the bathrooms but not the entryways.
C. D'Agata moved, and D. Berg seconded the following motion:
To install Ditra tile underlayment in the bathrooms, but not in the entryways.
Discussion followed. R. Campbell said he was concerned that the tile manufacturer might require a 1-1/8” solid structure under the tile in order to provide a warranty. The motion passed with all in favor except for R. Campbell.
D. Berg said the project engineers are asking for installation of a building management system to control heating, at a cost of $100,000 for four buildings. Whether this cost is included in the plans needs to be discussed at Wednesday's construction meeting. R. Campbell said Zlotnick would have to rebid the heating system because the chosen contractor didn't include this expense. D. Berto said he believes the system wouldn't provide enough benefit for the cost.
D. Berg said he met with John Ladd and to date, one conduit has been installed under the driveway, and enclosed in concrete. He said Ladd followed the civil plan with regards to the location of the main conduit runs along the north edge of the driveway. He said there are three pictures from Crosskey, but he'd like more in order to address other questions such as how many conduits actually run under the roadway..
D. Berg asked where things stand with the Eversource easement. D. Berto said he's working with Eversource, and it has to do with the location of power lines.
D. Berg said he met with Charter cable and they are OK with a single 3” conduit, versus including a spare. He said Frontier missed their scheduled appointment, so it is unknown what Frontier will require for conduits.
There was discussion about the option of a power-purchase agreement (PPA) for solar power generation.
D. Berto said he and D. Berg met with the Connecticut Green Bank last week, and they said they'd research the cost of a second party installing solar panels on the Button Hill buildings and then selling the power back to the project. The owner of the equipment gets a tax break, and this would lower the power costs.
R. Campbell said this could happen at the end of construction. D. Berg noted the tax breaks (or ZRECs) could expire by then. R. Campbell said they might be able to reapply at that point.
There was discussion about the power bills. R. Campbell said the administrator pays for the electricity to operate the heating and cooling systems, but the individual tenants pay for their energy use, such as lights and other devices they use.
D. Berg said the current rate of 19 cents per kilowatt hour is expected to drop to 16 cents. According to the Connecticut Green Bank, the cost for power with a leased PV (solar) system or PPA could drop to 9.7 cents, plus the standard meter charge, currently $19.25.
D. Berto said the PV system doesn't generate all of the building's electricity, since the system wouldn't generate at night, so there would also be an Eversource bill. R. Campbell said there could be a savings of about 25 percent.
D. Berg said he wasn't sure, but all charges might be included on one bill. W. Gangaway said some seniors may not understand why their bills fluctuate.
D. Berg said the Housing Authority might want to go with 48 solar panels instead of 66, because this configuration on the roof might lessen chances of a “snow avalanche” in the winter when the panels are heated by the sun.
D. Berto said the discussion indicates more research needs to be done.
D. Berto noted that because the State Department of Housing is giving the project state and Federal Home Loan Bank funds, FHLB requires certain wage rates. Contractors will be responsible for paying the correct wage rate, but his office is discussing who should check they are complying. He said there's some money in the budget for this task.
D. Berto reported that the Housing Authority's Directors & Officers Insurance will expire in July. He said Zlotnick gave the Housing Authority the name of their agent with a good price for the Builders Risk Insurance and it's possible that the D&O insurance could be transferred to them as well, if they offer competitive pricing.
There was discussion about the project's mortgage.
D. Berto said that when the Housing Authority submitted its application to the FHLB, the agency gave the Housing Authority a rate that could be plugged into the project budget, which was 4.91 percent. D. Berto said that since then, rates have dropped 2 percent.
He said that currently, the Housing Authority has these options: make a “forward rate-lock commitment” for 2.5 percent for 15 months, or 2.56 percent for 18 months; or 12 to 15 months from now when construction is complete, take the rate that's available at that time.
D. Berto said he doesn't foresee rates dropping any lower. He suggested locking in the rate for 18 months, because that would give the project time to generate rental income for paying the mortgage.
D. Berto said the Housing Authority now is paying interest only on the construction mortgage, to Putnam Bank. This will convert at end of construction to payments on principal and interest. He said that currently, Putnam Bank is loaning the Housing Authority money for construction; when the loan converts to a permanent mortgage, the FHLB will make payment to Putnam Bank.
W. Gangaway asked how confident D. Berto feels that, if construction is completed in 12 months, the units will be rented and generating income. D. Berto said rentals at Willington Woods went very quickly.
D. Berg made and R. Campbell seconded the following motion:
To apply for a forward rate-lock commitment for 18 months.
The motion passed unanimously.
4. New Business –
R. Campbell said he wants a sign on the site acknowledging Federal Home Loan Bank that also includes information about the Willington Housing Authority. He'd also like a contact phone number and email address on the sign for the public to use. He said this sign will be made privately.
R. Campbell said the Housing Authority should begin interviewing property management companies. He said that in another three months, the Housing Authority will want a management company to begin looking for and screening potential tenants. He asked D. Berto to solicit proposals and give the Housing Authority the top three candidates to consider. W. Gangaway offered information about the New Samaritan Corporation, which manages properties in Mansfield, CT. He also said he'd like ACCESS be invited to submit a proposal.
R. Campbell said he'd like to set a date in June for a ceremonial groundbreaking.
C. D'Agata asked how rental rates are determined. R. Campbell said the government has established income tiers – income ranges – and where a person's income falls within these tiers determines the rent they will pay. D. Berto said at this point, whether someone is income-eligible to live at Button Hill probably can be determined now because there's an income cap, but setting the rental rates cannot be done until the units are set to be rented because the parameters of the tiers can change. C. D'Agata said she has a long list of interested residents.
D. Berto left the meeting at 7:30 p.m.
5. Correspondence – None.
6. Approval of minutes –
W. Gangaway moved to approve the February 15, 2016 minutes. D. Berg seconded the motion, which passed unanimously.
The following errors were noted in the April 11, 2016 minutes: line 41, C.L. Millix should be L. Millix; line 23-24 should read, “batteries would offset some peak demand charges.”
D. Berg moved to approve the April 11 minutes as corrected. L. Millix seconded the motion, which passed unanimously.
7. Treasurer’s report – C. D'Agata reported a current balance of $442.89 after secretarial costs.
8. Adjourn – The meeting adjourned at 7:35 p.m.
Respectfully submitted by Recording Secretary Brenda Sullivan. Please note that minutes are posted prior to being officially approved – changes/corrections are normally indicated in the subsequent month’s meeting minutes.
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