MINUTES
Willington Housing Authority
Monday, August 8, 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; consultant David Berto and Recording Secretary Brenda Sullivan.
1. Call to order – 6:05 p.m.
2. Present to speak – No members of the public present to speak.
3. Old Business – Senior Housing “Button Hill”
D. Berto gave an update on construction. He said the first building is fully framed with windows installed, the second building is almost completely framed, the concrete foundation for the third building is complete, but work on the fourth building is being delayed while power lines (Eversource, Frontier and Charter) are being relocated.
D. Berto said weekly job meetings are being held on Wednesday afternoons to address any issues. To date, there have been 22 change orders, some of which have resulted in savings for the project. Overall, the project is on track, he said.
D. Berto said funds have been coming in as expected from Federal Home Loan Bank and the Department of Housing, and bills are being paid in a timely manner.
He also said that Putnam Bank has approved an interest rate locked in at 2.5 percent over 30 years, beginning in November. He explained that FHLB is buying points on the loan, which reduces the interest from 4.5 percent to 2.5 percent.
In response to a question from W. Gangaway, D. Berto said his email to the Housing Authority recommends accepting what he believes are reasonable cost estimates for insulation work. D. Berg also said he believes the breakdown of costs provided by Zlotnick Construction is clear. D. Berto recommended going forward and processing this as a change order.
Regarding the change orders, W. Gangaway said the project's carpenters/contractors have expressed concerns to him because “they never know what's going to come up next.” He said they are leery of going forward when there might be more changes. He also said when he went to Town Hall, someone told him he or she is unhappy about some Housing Authority members visiting the Town Hall.
R. Campbell reported on the July groundbreaking ceremony and said it was well attended, and covered by the Boston Herald, Journal Inquirer and the Chronicle. D. Berto said the timing of the ceremony was good because people could see the construction underway, and that there was lots of discussion.
D. Berg gave an update on researching the options and costs of solar power generation for the project. He said the Housing Authority has until September or October to reapply for ZRECs, or try again next February. He said it's probably better to opt out of the current ZREC contracts, and reapply in the future, because they are for 15 years and one year has already elapsed. He also said there may be an opportunity in future to take part in the Solarize Willington project.
After further discussion about the pro's and con's of ownership versus PPA, and locating the panels on the roof or on a ground mount, D. Berto recommended that, in order to avoid slowing down the project, a decision on use of photovoltaic be postponed until after the buildings are complete and then, if funding is available, use a ground-mounted system.
R. Campbell said he believes that if photovoltaic is going to be used, it has to either break even in terms of costs/savings or make money.
There was discussion about what functions should be included on the owner's panels. R. Campbell said that the air-conditioning condensers are not currently included on the owner's panels.
There was discussion about proposals from management companies. D. Berto said invitations to bid were sent to companies that would meet Department of Housing requirements regarding management of affordable housing projects. He reviewed the bid packages submitted by the ACCESS Agency and DeMarco Management Corporation.
D. Berto reviewed the costs submitted by each company for processing applications for the initial rentals, and for ongoing operations. Discussion followed.
The general consensus was that because ACCESS already has an office on site, to manage Willington Woods – and DeMarco did not address onsite management/office space – that this would be one advantage of choosing ACCESS. R. Campbell asked if HUD might object to using the same office for two different projects. D. Berto said HUD would require an accounting of how ACCESS allocates its services.
W. Gangaway asked if annual maintenance costs are paid upfront. D. Berto said, no, those services are paid for as needed, and added that not much maintenance would be expected in the first few years.
There was discussion about the length of contract. D. Berto said either party has a 30-day notification for termination of contract.
W. Gangaway asked if the Housing Authority would be interviewing these two companies. D. Berto said the bid packages contain all the necessary information. C. D'Agata asked if there will be an opportunity to negotiate with the selected company; D. Berto said, yes.
C. D'Agata asked how often the Housing Authority will meet with the management company. R. Campbell said, after start up, probably quarterly.
C. D'Agata asked what is the role of the Housing Authority once the project is completed. D. Berto said the Housing Authority will be the owner. He said the Housing Authority was formed in order for the town to have affordable housing, which includes oversight, as well as construction.
C. D'Agata made a motion to move forward and negotiate with the ACCESS Agency as the management company for Button Hill Senior Housing. The motion was seconded by D. Berg. Discussion followed.
L. Millix asked if DeMarco Management, which initially managed Willington Woods, was fired. R. Campbell said that HUD wouldn't allow ACCESS Agency to manage the property during the initial rental period, so a temporary qualified agency was brought in. He said DeMarco knew this was a short-term contract and that the ACCESS Agency would be taking over.
The motion was put to vote; motion passed unanimously.
D. Berto left the meeting at 7:20 p.m.
4. New Business –
R. Campbell said he received a letter from Senior Center President Edward D'Agata asking if a 30-35 foot, illuminated flagpole can be installed in one of the project's parking lot islands to honor local veterans. The letter states the Senior Center would pay for the flagpole and the light. R. Campbell asked C. D'Agata to ask E. D'Agata to call him to go over details concerning such things as the type of lighting and wattage, wiring, and installing the foundation, in order to estimate costs and determine who will pay for them. D. Berto noted there would be an ongoing cost to light the flagpole. D. Berg added that there might be some engineering costs, depending on the Town's requirements. The Housing Authority favors this request, pending more details.
5. Correspondence – C. D'Agata said she has received new bills, and that she completed a census form sent to the Housing Authority, online.
6. Approval of minutes – C. D'Agata moved to accept the July 11, 2016 minutes as submitted; W. Gangaway seconded the motion; motion passed unanimously.
7. Treasurer’s report – C. D'Agata distributed a report covering two months. The current balance is $2,299.98.
8. Adjourn – C. D'Agata moved to adjourn; D. Berg seconded the motion; motion passed unanimously. The meeting adjourned at 7:25 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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