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Home My WebLink AboutHousing & Redevelopment Authority - Minutes - 02/20/2024HOUSING AND REDEVELOPMENT AUTHORITY OTTERTAIL COUNTY · MINNESOTA The Otter Tail County HRA Board of Commissioners Met for a regular meeting on February 20, 2024 at 11 :45 am Government Services Center SOO West flr Avenue Fergus Falls, MN S6S37 at the Big Pine/Rush Lake Rooms, 505 South Court St., Fergus Falls, MN Board Members Present: Wayne Johnson, Chairperson Jeff Ackerson Kurt Mortenson Betty Murphy Leland Rogness, Vice Chairperson Others Present: Amy Baldwin, OTC HRA Executive Director Tanya Westra, OTC HRA Housing Program Supervisor Julie Bakken, OTC HRA Accounting Specialist Sarah Schake, CDA Project Manager Paula Grunewald, OTC HRA Administrative Assistant Mitch Harry, HRA Project Manager 1. CALL TO ORDER Chairperson Johnson called the meeting to order at 11 :45 am. 2. APPROVAL OF AGENDA Amy Baldwin, Otter Tail County HRA Executive Director, stated that Resolution 274 and 275 were numbered incorrectly and that a new agenda was provided with the corrected resolution numbers. Motion made by Kurt Mortenson, second by Lee Rogness lo approve the February 20, 2024 agenda with the changes noted. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Betty Murphy, second by Jeff Ackerson to approve the Consent Agenda. Motion passed unanimously with no items to be pulled. Director Baldwin noted that the number of vouchers distributed last month was 100 and this month will be 108. These are the highest numbers that she recalls. Commissioners questioned if we had enough funds and Tanya Westra, Housing Program Supervisor, said yes as we have money in reserves from previous unused funds. 4. NEW BUSINESS A. Housing Program & Project Support Request for Proposal Amy Baldwin, OTC HRA Executive Director, reported that an RFP was issued on February 9 for the Housing Program & Project Support Services with responses due at 8:30am, February 20, 2024. One proposal was received from Barbara Dacy, LLC, which was forwarded via email to the Commissioners as well as available as a handout at today's meeting. Director Baldwin stated that the proposal includes the key components requested, that Barbara Dacy had included in her bid her hourly rate of $65 not to exceed 730 hours or $47,500, and she anticipates remote work. Lee Rogness questioned if we could offer her a position since she was previously employed with the County. Director Baldwin stated she had been a contracted position so 218-998•8730 ® OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER @ ottertailcounty.gov LIVE YO UR best life HERE. 1r---------~---------- there was not a restriction on her being contracted again. Betty Murphy stated that Barbara Dacy knows Otter Tail County and has a good history with Otter Tail County. Director Baldwin requested authorization to offer Barbara Dacy, LLC a contract based on terms outlined. Motion made by Lee Rogness, second by Kurt Mortenson to approve. Motion passed unanimously to enter into an independent contractor agreement with Barbara Dacy, LLC, with the ability to renew after one year. B. Resolution No. 276 Approving Public Housing Radon Mitigation Bid Tanya Westra, OTC HRA Housing Program Supervisor, reported that she received two bids to install radon mitigation systems in the HRA's Public Housing units and recommends proceeding with Radon Remedies, LLC. They are based out of Fargo and have an office in Fergus Falls. She stated that HUD Capital Fund covers radon mitigation and the bid submitted was $19,500. The HRA would be utilizing $11,897.12 of 2020 Capital Funds and $7,602.88 of 2022 Capital Funds. Westra recommended placing the mitigation system in all 13 units as the Minnesota Department of Health requires when levels are at 4 pCi/L radon mitigation system are needed and for levels 2-3.9 pCi/L an action to reduce the amount of radon in the home is urged. Commissioners questioned the system and were told the systems are low volume, low speed fans and works with existing sump pump pits. They also asked if adding the systems would drop the value of the units and the answer was likely no, as this is a requirement now in all new construction. Motion made by Lee Rogness, second by Jeff Ackerson to approve. Motion passed unanimously. 5. OLD BUSINESS A. North Fields of Dalton: Resolution No. 277 Authorizing Staff to Proceed with Financing and Contract Preparation for Construction of Senior Affordable Housing Amy Baldwin, OTC HRA Executive Director, stated that the North Fields project has been in the works for the past couple years. In 2023, construction pricing for the project had come in significantly over budget. On January 20, 2024, an ad was published in the Daily Journal, posted on the Otter Tail County website, provided to the Lake Region Builders Association and distributed to various contactors to solicit bids for modular construction as well as onsite work for an affordable senior housing project located in Dalton. Deadline for the submission of sealed bids was February 9, 2024. Base construction bids submitted totaled $1 ,372,407, with an option to update siding for an additional $26,999 in material and labor costs for a total of $1 ,399,406. With construction (including the siding update), appliance/miscellaneous site expenses, legal/professional services/insurance, permits/fees, marketing/lease up expense, reserves and project contingency, the estimated total for the two triplexes, each consisting of 2- 2BR units and 1-1 BR unit with garage and porch, was estimated to be $1,664,221 . A review of sources of funding was provided, which includes County Support (repaid by HRA levy pledge over 20 years), Statewide Affordable Housing Aid, Housing Trust Fund and other HRA Resources. Rents are projected at 2 BR -$900, and 1 BR -$700. The annual expenses of the development included advertising, legal/administration, water and sewer, trash, maintenance/repairs, snow/lawn care, payment in lieu of taxes, insurance and replacement reserves. Commissioners discussed reserves, potential lease-up date, who would be the potential tenants, inflation, garage size, and bidder engagement. Bids accepted: Modular Construction Onsite Carpentry Excavating Concrete Mechanical and Plumbing Electrical Northstar Systembuilt Novelty Construction LLC Leitch Excavating Novelty Construction LLC Novelty Construction LLC Ohren Electric $761 ,567 plus siding upgrade $16,604 $216,061 plus siding upgrade $10,395 $61 ,870 $157,510 $1 15,519 $59,800 plus $400 for electric vehicle charging Pg. 2 If change orders are needed, it was recommended to poll Commissioners to keep the project going. The Commissioners said they trust the staff decisions. Motion made by Kurt Mortenson, second by Betty Murphy to approve drafting contracts with Northstar Systembuilt, Novelty Construction LLS, Leich Excavating and Ohren Electric. Motion passed unanimously. 6. DISCUSSION A. Publicly Owned Housing Program (POHP) Application Tanya Westra, Housing Program Supervisor stated that this round of POHP loans are funded by General Obligation Bonds in the form of a 20-year deferred, forgivable loan to HRA/CDA/PHAs with the property remaining in public ownership for a 35-year compliance period. Discussions with the HRA Board have taken place regarding the possibility of utilizing RAD Conversion for the Public Housing Units in the future. If we proceed with the POHP application, a RAD conversion would not be possible during the 35-year compliance period. She recommends waiting until the next round of funding is released to see how they will be funded by Minnesota Housing (cash vs GO Bonds) as we may not want this restriction. 7. EXECUTIVE DIRECTOR REPORT Amy Baldwin, OTC HRA Executive Director, presented the 2023 Community Development and Housing, Department Annual Report. 8. GENERAL DISCUSSION -TOPICS BY COMMISSIONERS Commissioners discussed Dalton and since we have the numbers to kept it rolling. 9. ADJOURNMENT At 12:51 pm a motion was unanimously carried to adjourn the meeting. Secretary/Clerk Date 1 Pg.3