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HomeMy WebLinkAboutHousing Catalyst - Minutes - 12/22/19980 • December 22, 1998 BOARD OF COMMISSIONERS OF THE FORT COLLINS HOUSING AUTHORITY An adjourned meeting of the Board of Commissioners of the Fort Collins Housing Authority was held on Tuesday, December 22, 1998, at 6:00 p.m. in the Council Chambers of the City of Fort Collins City Hall. Roll Call was answered by the following commissioners: Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Staff Members Present: Fischbach, Krajicek, Duval. Resolution No. 7 Approving the 1999 Comprehensive Operating Budget Adopted The following is staff s memorandum on this item. "Financial Impact This proposed annual comprehensive operating budget establishes the authorization for the operation ofthe Housing Authorityfor the fiscal year 1999. This budget provides for the ongoing operations ofthe Housing Authority and includes no provisions for new capital projects. Also, fees and expenses related to the recent lawsuit are not covered by the budget. Executive Summary Following review and discussion (and revisions if necessary) by the Director of Finance, the City Attorney, the City Manager and the Board of Commissioners, the budget has historically been approved. Due to financial obligations, it would be advantageous to have approval by January 1, 1999. Consideration of this resolution was postponed to this date and time to allow time for additional clarification ofthe proposed budget. BACKGROUND: In general, the Fort Collins Housing Authority annual operating budget is formula driven, leaving littlejlexibilityfornewprograms. The basisforformula allocations isprimarily number oftenants currently housed by the Housing Authority and fair market rent (FMR) rates. The Housing Authority's proposed budget includes the following funds: December 22, 1998 Public Housing Family Investment Center Certificates Vouchers Management Development This operating budget will help provide affordable housingfor approximately 912 units throughout the community and totals approximately $1.5 million. Currently, the Housing Authority staffs 29 full-time employees and four interns. " City Manager Fischbach introduced the item and noted that Commissioners have received a listing of the properties owned by the Housing Authority, the estimated fund balance, and the estimated unfunded expenditures of the Housing Authority. He noted that this is a work in progress and an update will be provided to the Commissioners at the next meeting. Assistant City Manager Atteberry presented the proposed 1999 comprehensive operating budget. He stated that Commissioners have received a breakdown of management costs and a written response to the questions asked last week by Mr. Herrera prepared by Finance Director Fluharty Alan Fluharty, Housing Authority Finance Director, noted that the budget has been restructured to make it easier to understand. He stated that the Fort Collins Housing Corporation has a separate budget and that the allocation for management services is the only FCHC item shown in the Housing Authority budget. He noted costs associated with technology and Year 2000 solutions. He stated that there is no budget for reserves because the Housing Authority has historically operated at a very slender margin. He stated that only $4,000 is allocated for legal expenses because this is an operating budget, and any allocation for the DeFrancesco lawsuit is outside of this budget and any legal fees associated with a real estate project are charged to the project. He spoke concerning the allocation for management costs in the detail budget. Commissioner Smith asked for clarification regarding the public housing HUD change. Fluharty stated that the change results from HUD reinstating the 3% inflation factor on rents. Commissioner Smith asked for clarification regarding changes in revenue and expenditures. Fluharty spoke regarding the management cost allocations. Commissioner Smith asked about the inclusion of payments -in -lieu -of -taxes in the budget. City Manager Fischbach stated that two years of PILOTS are not budgeted. Commissioner Kneeland asked if, based on the audit information received, the books and accounts of the Housing Authority are in order. She noted the concern expressed in the audit letter regarding • December 22, 1998 of the Housing Authority if the lawsuit damages ro paid out. City Manager Fischbach et is proper and progress has been made since the audit the viability uit value in the properties owned by the stated that the books are in order, the budget significant eq Y expenditures. letter was written. He stated that there is Housing Authority and spoke regarding fund balances and unfunded Commissioner Smith asked about the $10,0001ine item regarding write-offs. Fluharty stated that Comm this is the projection for 1919- to adop t Resolution anner made a motion, seconded by Commissioner Bertschy, No. 7. The vote on the motioneTaNaylo s-. eas: Commissioners Azari, Bertschy, Byrne, Commissioner W Kneeland, Mason, Smith and THE MOTION CARRIED. Commissioner Azari expressed appreciation for the work that has been done regarding the budget. Resolution No. 8 Establishin Revised Procurement Policies Adopted - The following is staff, s memorandum on this item. "Financial Impact Implementation of the revised policies is not expected to have a financial impact. "Executive Summary cent the effective mechanisms for Authority in re In the course of ma SagznBi g pYo°turement poli cies �to lack some of the eff ctweeksstaff has found the provisions. Housing Authorityurchasingprocess, efficient operation of the purchasing process that are provided in the City's purchasing p o the Housing Authority spurchasing code be In order to improve the effectiveness a dipolicies similar to the City's p staff is recommending that new procurement adopted for the Housing Authority. BACKGROUND: ddressed in the In order to allow for ad inien` PSI and practical has prepared the propo ed revised Procurement Housing Authority's procurer ro rate the City's purchasing code provisions. The significant Policy by modifying as app p following: 1 the Housing Authority Executive modifications that have been made include the f Director is designated as the Purchasing Agent, and is responsible for those tasks assigned to the 3 PurchasingDecember 22, 1998 cOmpeAgent in the City'sPurchasin uthoritttve process is $25, 000 (rather than $30, 000, as in the Ci g system; 2) the dollar threshold for a required formal authoritypreviously approved by the Board,• and 3 must be approved by the Board in contrast to the Ci ty's system) to trackthe signature to approve exceptions or all s st mtions beyond the threshold amount er from the existing Housing'4uthoai esbetween $30, 000 and $100, 000 to sizwhiceallows the Cily typolic in that it allows more discretion sto the Purch i n q agnt (Executive Director) to use existing competitive bids and proposals for new gent exceptions to the process in more detail, and specifies procedures better tailored Purchases, the actual ies processes used to carry out procurements, compared to the existing Housing iloruthto actual City Manager Fischbach stated that staff is recommending ryPolicy. ' Policies in place of the Housing Authority's Procurementemend ngpoladoption of the Ci tY's procurement Commissioner Kneeland asked staff to highlight the differences in the policies. Assistant City Manager Atteberry explained the differences between the old Housing Authority Executive Director would be designated asthe w policies. He stated that the threshold for a required formal competitive process would be Purchasing agent, that threshold amount would have to ti a $25,000, and all exceptions beyond allow the Executive Director more discretion t use existing competitive bids. Carrie Daggett, He stated that the policy would Assistant City Attorney, explained existing Housing Authority processes and the practical benefits of the changes. Commissioner Kneeland expressed concerns about how much oversight may be needed and requested information about how the Housing Authority will be managed for the next six months. She asked ifthis kind of change could be made on a temporary rather than permanent basis. Da stated that this purchasing policy is not significantly different in substance to the prior purchasing policy. Deputy City Attorney Duval stated that the Board could change the policy to revert to the old policy at any time in the future. Commissioner Azari asked A City's Purchasing Aif this would allow the Housing Authority to use the services of the Agent. City Manager Fischbach replied in the affirmative. 8. The vote on hKneelandoliomade a folloon,ws: seconded by Commissioner Smith, to adopt Resolution No. 8. The vote on the motion was as follows: Yeas: Commissioners Azazi, Bertsch Mason, Smith and Wanner. Nays: None. Y, Byrne, Kneeland, THE MOTION CARRIED. 4 December 22, 1998 Resolution No. 9 Acting Ex Officio as the Board of Commissioners of the Fort Collins Housing Authority, Authorizing the Board Chairperson to enter into a Professional Service Agreement with Bondi & Co. Certified Public Accountants for Auditing Services Adopted. The following is staff s memorandum on this item. "Executive Summary Per State and Federal regulations, the Fort Collins Housing Authority is required to provide an independent annual audit by a certified accountant of all books and accounts of the Authority. To accomplish this, it is necessaryfor the Authority to select a suitable accountingf:rm to provide such services. On September 15, 1998 (Resolution 98-130), the Fort Collins City Council entered into a professional services agreement with Bondi & Co., Certified Public Accountants, for city auditing services for 1999, renewable for additional annual terms through 2003. The procurement policy of the Authority permits the use of competitive proposals by other governmental agencies for equivalent services as a basis for procurement by the Authority. For this reason, staff i.; recommending entering into a professional services agreement with Bondi & Co. " Assistant City Manager Atteberry spoke regarding the competitive process followed and the reasons for choosing Bondi & Co., Certified Public Accountants, as auditors for the Housing Authority. Commissioner Azari asked if the previous audit firm has special expertise in housing. Atteberry stated that the previous auditor had significant expertise in housing. He stated that Bondi & Co. also has significant expertise with housing authorities. City Manager Fischbach noted the housing authority experience of Bondi & Co. Commissioner Byrne asked if the last audit done was performed for a two-year period and asked why the audit deadline was not met. Atteberry stated that the last audit was for two years and spoke regarding audit deadlines. Commissioner Byrne asked about the audit fee. City Manager Fischbach stated that the exact fee is unknown but will not exceed $20,000. Commissioner Byrne asked about the audit review process. City Manager Fischbach stated the process has not yet been defined. 5 December 22, 1998 Commissioner Wanner made a motion, seconded by Commissioner Mason, to adopt Resolution No. 9. The vote on the motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. Nays: None. THE MOTION CARRIED. Other Business Commissioner Smith asked why the Housing Authority budget is not adopted by ordinance. Deputy City Attorney Duval stated that the Housing Authority is not a municipality and is not required to act by ordinance. Commissioner Mason suggested reviewing other Housing Authority processes to determine if improvements can be made. City Manager Fischbach stated that staff is working on several other processes at this time. Commissioner Kneeland requested a two -page memorandum on the plan and timetable for the Housing Authority. Mayor Azari spoke regarding the need for the Council to stay closer to Housing Authority activities in the future. Adjournment Commissioner Smith made a motion, seconded by Commissioner Mason, to adjourn the meeting to January 5, 1999 at 6:00 p.m. or as soon thereafter as possible. The vote on the motion was as follows: Yeas: Commissioners Azari, Bertschy, Byrne, Kneeland, Mason, Smith and Wanner. THE MOTION CARRIED. The meeting adjourned at 6:45 p.m. ATTEST: City anager, Acting Secretary