MINUTES OF A SPECIAL MEETING
OF THE BOARD OF COMMISSIONERS
OF THE HOUSING AUTHORITY
OF THE CITY OF EL PASO, TEXAS
MONDAY, JULY 25, 2016
Item # 1. Call to Order. The Chairperson called the meeting to order at 5:30 p.m.
Item # 2. Pledge of Allegiance. Recited Pledge of Allegiance.
Item # 3. Invocation/Moment of Silence. Moment of silence.
Item # 4. Establishment of a Quorum.
PRESENT: Chairperson Burt Blacksher, Presiding; Commissioners Eileen Karlsruher, Francisco Ortega, and Lupita Licerio. The Chairperson declared a quorum with four Commissioners present. Commissioner Anna L. Perez was absent.
ALSO PRESENT: Gerald Cichon, Chief Executive Officer; Bob Blumenfeld, HACEP Attorney; Art Provenghi, Corporate Attorney; Donna Clarke, Chief Operating Officer; Satish Bhaskar, Chief Financial Officer; William Zeigler, Chief Human Resources Officer; Daniel Cantu, Chief Information Technology Officer; Richard Seges, Chief Real Estate Officer; Hector Montoya, EP HOME General Manager; Hanna Sarah, Director of Finance; John Irvin, Director Design and Construction; Roman Velasquez, Director of Housing Programs; Frank Cota, Director of Strategic Initiatives; Javier Camacho, Public Information Officer; Oscar Arriaga, Public Information Specialist; Juan Pulido, Procurement Manager; Robert Bueno, Security Officer; Patricia Quintanilla and Aracely Saenz, Executive Secretaries.
Item # 5. Presentation of the 2016 Winners of the Housing Authority of the City of El Paso, Texas’ Annual Art Competition. Javier Camacho, Public Information Officer, said that the theme of this year’s annual art competition was “Changing the Phase of Public Housing.” We offered several categories such as social media popular vote, middle school category, high school category, and above and beyond category. He said that the winner of the Social Media category, Hunter Kirtley from Eastlake High School, was unable to join us, but we will be mailing his $100.00 prize. Mr. Camacho introduced Delilah Avila as the winner of the middle school category with a prize of $250.00; Yazmin Gamez as the winner of the high school category and the recipient of a prize in the amount of $450.00; and Cesar Inostroza as the winner of the above and beyond category earning a prize of $950.00.
Mr. Camacho thanked the Board for their support and for allowing us to pursue this year’s event.
Item # 6. Mandatory Procurement Training for the Board of Commissioners of the Housing Authority of the City of El Paso, Texas. Bob Blumenfeld, HACEP Legal Counsel, said that we are required by HUD to do a mandatory procurement training. This is a training that the Board has done before, but starting next year we are going to add the processes required by our partnerships. The Housing Authority’s procurement process is highly regulated. We have to comply with Federal and State laws, HUD’s procurement handbook, the Authority’s ACC contract with HUD, the Authority’s procurement policy, and various ethics and conflict of interest laws. According to HUD’s guidance, the Board has ultimate responsibility for the agency’s operation including establishing policies; reviewing, approving, and monitoring budgets and key financial transactions; and ensuring that the agency is acting legally and with integrity in its operations. State law also vests the power on contracts in excess of $50,000 to the Board. He provided an overview of the procurement and contracting process and said that all purchases and contracts over $50,000 are presented to the Board for their review and approval. He said that certain things have to be conducted in an open meeting. Attorney Blumenfeld said that a frequent question is how much they can talk to staff prior to the Board meeting to make sure that you have enough information to make an informed decision. He said that they can talk to the CEO before the meeting, but it must not be for the purpose of evading open meeting obligations. Also, the law restricts deliberations about a contracting decision; deliberations must take place at a Board meeting. There can be no direct or indirect discussions, phone calls, emails or text messages amongst Board members about specific action to be taken at a Board meeting. We have public comment for bidders, residents, and the public-at-large to offer comments on a contract approval item. There are times when the lawyers will advise not to discuss certain bid-related matters in public because it is in the Authority’s best interest not to disclose in case the item has to be re-bid. When there is a need for legal advice, it can be discussed in executive session. Attorney Blumenfeld discussed the numerous procurement safeguards that we have. He provided a list of things for the Board to consider when approving contracts or purchases. He said that we do not recommend Board members to get directly involved in procurement because they are the ultimate decision makers. He said that in previous years, we had Board members that served on the selection panel and it was criticized by HUD. Attorney Blumenfeld asked if they had any questions regarding the Conflict of Interest and Code of Ethics Policies. He added that Mr. Cichon is the designated Conflicts Officer in case they ever have any issues or questions. Attorney Blumenfeld offered to answer any questions.
Chairman Blacksher asked what would be the proper procedure if they are contacted by a contractor to discuss an existing or proposed contract.
Attorney Blumenfeld responded that they should re-direct them to the appropriate staff, which in this case would be Mr. Cichon. It would also be appropriate to direct them to Mr. Pulido as the Contracting Manager. He suggested to document the fact that they were contacted and to report it to Mr. Cichon.
Mr. Cichon said that our procurement process prohibits vendors from contacting Board members when an RFP is on the street. He said that we have invalidated vendors from soliciting if they have conversations with the Board and/or staff. We are very strict and we are very clear with them regarding the process. He added that Board members may be contacted by people who are upset about a contract that has been awarded; he asked to re-direct those people to him.
Chairman Blacksher thanked Attorney Blumenfeld for his training.
Item # 7. Resident Association Presidents to be Heard. None.
Item # 8. Citizens to be Heard. None.
Item # 9. Approval of Minutes of a Regular Board Meeting That Took Place on June 22, 2016. Commissioner Karlsruher made a motion to approve item # 9. It was seconded by Commissioner Licerio. Motion carried unanimously.
Consent Agenda:
Item # 10. Purchasing and Construction Contract and Purchase Order Awards:
A. Request that the Contracting Officer be Authorized to Sign Recommendation for Contract Award for Property Appraisal and Market Studies Contract # OPS 16-R-0017. Contract Term Requested is One-Year With Two (2) One-Year Options. This Contract was Procured Through the Request for Proposal (RFP) Process. The Recommendation is as Follows:
Department: / DevelopmentAward to: / WPB Appraisal Group
Valbridge Property Advisors
Novogradac and Company / $75,000 Estimated
(Combined)
Funding Source: / Development
Procurement Type: / Request for Proposal (RFP)
Contract Term: / New
B. Request that the Contracting Officer be Authorized to Sign Extension to Contract for Internet Private Network MPLS Contract # IT 15-C-0010. This is the Third Year of a Three (3) Year Contract. This Contract was Procured Through a Cooperative Entity Process DIR Contract No. DIR-TEX-AN-NG-CTSA-005. The Recommendation is as Follows:
Department: / Information TechnologyAward to: / AT & T / $315,180 Estimated
Funding Source: / COCC
Procurement Type: / Cooperative Contract
Contract Term: / Renewal
C. Request that the Contracting Officer be Authorized to Sign Extension to Contract for Financial Consultant Services Contract # RAD 15-C-0007. This is the Second Renewal of Two. This Contract was Procured Through the Request for Proposal (RFP) Process. The Recommendation is as Follows:
Department: / DevelopmentAward to: / EJP Consulting Group LLC / $50,000 Estimated
Funding Source: / Development
Procurement Type: / Request for Proposal (RFP)
Contract Term: / Renewal
D. Request that the Contracting Officer be Authorized to Sign Extension to Contract for Land Surveyor Professional Services Contract # RAD 16-C-0012. This is the First Renewal of Three. This Contract was Procured Through the Request for Proposal (RFP) Process. The Recommendation is as Follows:
Department: / DevelopmentAward to: / SLI Engineering / $183,873 Estimated
Funding Source: / Development
Procurement Type: / Request for Proposal (RFP)
Contract Term: / Renewal
E. Request that the Contracting Officer be Authorized to Sign Extension to Contract for RAD Physical Condition Assessment Services Contract # RAD 16-C-0007. This is the First Renewal of Three. This Contract was Procured Through the Request for Proposal (RFP) Process. The Recommendation is as Follows:
Department: / DevelopmentAward to: / AEI Consultant / $96,084 Estimated
Funding Source: / Development
Procurement Type: / Request for Proposal (RFP)
Contract Term: / Renewal
F. Request that the Contracting Officer be Authorized to Sign Recommendation for Contract Award for Construction Management Services Contract # RAD 16-C-0023. This Contract was Procured Through the Request for Proposal (RFP) Process. The Recommendation is as Follows:
Department: / DevelopmentAward to: / ECM International / $3,469,000 Estimated
Funding Source: / Development
Procurement Type: / Request for Proposal (RFP)
Contract Term: / New
G. Request that the Contracting Officer be Authorized to Sign Extension to Contract for Child Care Services Contract # OPS 14-C-0014. This is the Second Renewal of Three. This Contract was Procured Through the Request for Proposal (RFP) Process. The Recommendation is as Follows:
Department: / Property ManagementAward to: / YWCA / $106,794 Estimated
Funding Source: / PILOT Funds
Procurement Type: / Request for Proposal (RFP)
Contract Term: / Renewal
Mr. Cichon discussed the proposed items under the consent agenda and offered to answer any questions.
In Reference to Item # 10-F, Commissioner Karlsruher asked if ECM International has enough staff because, to their credit, they receive a lot of project management awards from other entities. Her concern would be if they have enough staff to cover all contracts they have.
Richard Seges, Real Estate Officer, responded that in their proposal they provided information showing that they have the staff available to start immediately. We are comfortable with their ability and the quality of people that they proposed.
Mel Herrera, President of ECM, said that they currently have about 35 staff members in El Paso most of them professionals in the field of construction and/or engineering. They feel comfortable with their proposal and our needs.
Commissioner Licerio made a motion to approve consent agenda items # 10 A-G. It was seconded by Commissioner Ortega. Commissioners Karlsruher, Licerio and Ortega voted in favor of all the items. Chairman Blacksher abstained from item # 10-F and voted in favor of the rest of the items. Motion carried.
REGULAR AGENDA
Item # 11. Discussion and Action Regarding Resolution Authorizing the Approval and/or Ratification of the Stop Loss Insurance With HCC Life Insurance Company for the Health Insurance Claims in Excess of the Housing Authority’s Self-Insured Limit. William Ziegler, Chief Human Resources Officer, said that there were some discussions about our healthcare coverage, our partners, and the need to replace our stop loss carrier. We have replaced them with HCC. HCC is a company that is amenable to Meritain and that coverage started as of July 1. The policy has a $250,000 threshold coverage just as before. Mr. Zeigler offered to answer any questions.
Commissioner Karlsruher made a motion to approve Resolution 2111 under item # 11. It was seconded by Commissioner Ortega. Motion carried unanimously.
Item # 12. Discussion and Action Regarding Resolution Authorizing the Return of the Commitment to Enter Into a Housing Assistance Payment (CHAP) for the 74 Individual Public Housing Homes/Scattered Sites (the “Project”) to the U. S. Department of Housing and Urban Development (HUD), and to Approve the Continued Operation of the Project as Scattered Sites Public Housing. Mr. Cichon said that this is a departure from our attempt to do a full RAD conversion, but with the 25% set-aside all of our units are not converting to RAD. These are 74 single family units that we are proposing to continue to operate as public housing units. He asked Mr. Seges to elaborate.
Richard Seges, Chief Real Estate Officer, said that we owned a number of scattered sites around El Paso. In converting these sites to RAD we encounter a couple of things that warranted keeping them as public housing units. From the beginning our goal was to convert everything to RAD, but with Tays and Krupp we were required to keep 74 units as public housing. Our goal is to become a small Public Housing Authority which carries a lighter regulatory burden; in order to do that we have to retain no more than 250 public housing units. This proposal keeps us under the 250 unit threshold. The 74 scattered sites are all individual homes, 30 – 40 years old, scattered around El Paso, and they are not in great repair. These units were part of Tranche 1B, and the plan was to convert them to RAD by doing conventional mortgage financing. We were hoping to do limited renovations, but the mortgage lender had issues with limited renovations of the homes. It turn out that the cost of conversion exceeded the market value of the homes. We decided to propose leaving these units as public housing. If approved, we would have 148 public housing units, which is way below the 250 threshold. It does have some value because these units will provide us with a portfolio that we can use to house over income tenants and other tenants that may not fit the LIHTC profile. Mr. Seges offered to answer any questions.
Chairman Blacksher said that based on the description of the condition of these properties what is the plan if there is no money to maintain and fix them.
Mr. Seges responded that we will continue to maintain them. Our goal is to come up with a plan that allows us to replace with something else, but we do not have the answer right now.
Mr. Cichon added that on a long term we plan to nurse these units until we find that answer. These units will become at risk. If we do a 9% in 2019 we could sell these 74 units and convert them into a multifamily property. Right now we do not have an answer, but we know that financially they do not make sense.