HomeMy WebLinkAboutHousing & Redevelopment Authority - Minutes - 04/18/2023OTTERTAIL OTTER TAIL COUNTY I HOUSING
COUNTY -MINNESOTA
The Otter Tail County HRA Board of Commissioners
Met for a regular meeting on April 18, 2023 at 11 :45pm
At the Otter Tail County Government Services Center
Board Members Present:
Wayne Johnson, Chairperson
Kurt Mortenson
Betty Murphy
Leland Rogness, Vice Chairperson
Absent: Jeff Ackerson
Others Present:
500 W Fir Ave, Fergus Falls, MN
Barbara Dacy, OTC HRA Executive Director
Paula Grunewald, OTC HRA Administrative Assistant
Tanya Westra, OTC HRA Project Manager
Amy Baldwin, OTC CDA Director
Kevin Currie, Construction Consultant
Scott DeMartelaere, Design Intent Architects
Via Teams:
Kris Vipond, OTC Assistant Finance Director
Sarah Schake, Independent Contractor
1. CALL TO ORDER
Chairperson Johnson called the meeting to order at 11 :45am.
2. APPROVAL OF AGENDA
Government Services Center
500 West Fir Avenue
Fergus Falls, MN 56537
Motion made by Lee Rogness, second by Kurt Mortenson to approve the April 18, 2023 Agenda without changes.
Motion passed unanimously.
3. APPROVAL OF CONSENT AGENDA ITEMS
Motion made by Kurt Mortenson, second by Betty Murphy to approve the Consent Agenda. Motion passed
unanimously. No items were pulled for additional consideration.
4. OLD BUSINESS
A. Resolution No. 235 Authorizing Execution of the Architectural and Engineering Services Agreement
with Design Intent
Barbara Dacy, OTC HRA Executive Director, reported that Design Intent was selected for Architectural and
Engineering Services from a Request for Qualifications Process. Scott DeMartelaere, from Design Intent was
present for any questions. Dacy reported that ground source heat pumps will not be part of the project and that
Mechanical Engineering services were not included in the cost. The architectural total should be approximately
$31 ,537 for Schematic and Permit Set Phase plus some minimal hourly charges for Permitting Phase and
Construction phase. Kevin Currie, Construction Consultant reported that propane will be the heat source. Director
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Dacy also said we can use these plans for up to 3 years but if the contract is terminated for any reason, the HRA
would be required to pay Design Intent a $5,000 licensing fee, and the plans could only be used for the Dalton
project. Motion made by Kurt Mortenson, second by Lee Rogness to approve Resolution No. 235. Motion passed
unanimously.
5. NEW BUSINESS
A. Resolution No. 236 Adopting Capital Asset, Capitalization, and Disposition of Assets Policy
Director Dacy reported that she had emailed a revised version of the Exhibit A for the Capital Asset,
Capitalization , and Disposition of Assets Policy on April 14, 2023 to all board members. Handouts were also
available at the meeting. She stated that the policy establishes the definitions, criteria, and procedures when it
comes to accounting for and tracking capital assets. The policy would apply to the HRA Public Housing units,
North Field of Dalton units in Dalton, and any building improvements completed in the future. She stated that
capital assets are defined as having a cost more than $5,000 and having a useful life of 3 plus years. The
capitalized assets will be tracked in the PHA Web Software in which Julie Bakken, HRA Accounting Specialist,
has already entered these assets. She also noted that acquisition of assets must be part of the annual budget or
approved by the board. Finally, she stated the policy adopts a depreciation schedule based on Generally
Accepted Accounting Principles (GAAP). Motion made by Kurt Mortenson, second by Betty Murphy to approve
Resolution No. 236, using the April, 14, 2023 revised version of Exhibit A. Motion passed unanimously.
B. Resolution No. 237 Authorizing Execution of Change Order for Hidden Meadows Bid Alternate #1
Tanya Westra, Project Manager reported that Phase 1 homes are under contract and expected to close on May
15 (3 BR) and June 20 (2 BR). She stated that the purpose of this item to obtain authorization to start Phase 2 for
the construction of the third and fi nal home. Ms. Westra stated that the budget is below cost, and the project will
have unused value gap monies, and the project is on budget. She stated that the realtor reports a strong market
for a 2 BR home. Ms. Westra will attend the Battle Lake City Council in the beginning of May. Motion made by Lee
Rogness, second by Kurt Mortenson to approve Resolution No. 236 to begin Phase 2. Motion passed
unanimously.
6. DISCUSSION
A. North Fields of Dalton Project Update
Dacy reviewed the procurement policy and recommended the HRA use the Competitive Proposal Process instead
of sealed Bidding. She stated this method permits consideration of technical factors, discussion with offerors,
negotiation of price or cost and other contract terms, revisions of proposal before the final contractor selection and
the opportunity to withdraw at any time up until the point of award. Mr. Currie stated that by using the procurement
plan there would be competitive proposal contracts for 1) a general contractor, 2) a mechanical contractor, and 3)
an electrical contractor with specific scopes of work. There would be a 4th contract if the solar would proceed. He
stated this would maximize interest and competition, cost savings, integrated design, and accurate project
budgets. The process would entail issuing RFP advertisements, reviewing proposals, selecting the contractors,
and construction starting possibly at the end of September, early October 2023. Ms. Dacy stated in order to
accomplish the start date of the project a special meeting would need to occur. The Board determined that the
date for the Special Meeting will be Monday, June 12th at 8:00am. It was noted that this initial project with the
triplex designs could be used for future projects and thus accomplish cost efficiencies.
B. HRA Commissioner Training, Part 1
Commissioners gave their feedback on the 1st Commissioner Training and noted that it was a good training with the
basics of how to be a Board member. Other comments included:
• Policies need to be renewed each year. The Chair noted that the training emphasized the
Procurement Policy, an Ethics Policy, an Eviction Policy, and a Strategic Plan.
• Commissioners need to listen to all ideas and understand the value of all points of view, and respect
other Commissioners. Once a decision is made all Commissioners are to accept it and support it.
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• The Board should conduct "succession planning" to make sure that staff are in place to carry out the
functions of the HRA. It was noted that staff has anticipated position vacancies.
• It was suggested that it would be good to have the CDA members also take the class.
7. EXECUTIVE DIRECTOR REPORT
Director Dacy informed the HRA board members that the OTC HRA has scored as a High Performer for fiscal
year 2022 with the Public Housing program. She congratulated Tanya Westra, Kris Vipond, Julie Bakken, and
Paula Grunewald. The board also thanked Barbara Dacy. It was suggested that a press release/other
communication be created with the help of Shannon Terry and Amy Baldwin. Motion made by Lee Rogness,
second by Betty Murphy to approve. Motion passed unanimously.
Director Dacy also discussed that staff is working with 4 property owners to apply for rehabilitation funding for
"Section 515" financed properties. There are two properties in Parkers Prairie, one in Battle Lake, and one in New
York Mills. The rehab loans are a preservation tool as they need new windows and roofs.
8. GENERAL DISCUSSION -TOPICS BY COMMISSIONERS
The Board discussed the necessity to preserve housing in the county.
9. ADJOURNMENT
At 12:45pm a motion was unanimously carried to adjourn the meeting.
Kurt M6rtenson/Secretary/Clerk
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