HomeMy WebLinkAboutMN-IURAGOV-2016-03-18Approved: 5/20/16
108 E. Green Street
Ithaca, New York 14850
(607) 274-6559
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MINUTES
ITHACA URBAN RENEWAL AGENCY
Governance Committee (GC)
8:30 AM, Friday, March 18, 2016
Third Floor Conference Room, City Hall, Ithaca, NY
Present: Eric Rosario, Susan Cummings, David Whitmore, Kathy Schlather
Excused: None
Vacancy: 1
Staff: Nels Bohn, Charles Pyott
Guests: None
I. Call to Order
Chairperson Rosario called the meeting to order at 8:37 A.M.
II. Agenda Additions/Deletions
Bohn noted he would like to add a reaffirmation of the IURA mission statement, under
“New Business.” No objections were raised.
III. Public Comments (3‐minute maximum per person) ― None.
IV. Review of Meeting Minutes: January 20, 2016
Schlather moved, seconded by Cummings, to approve the January 20, 2016 minutes,
with two minor modifications. Carried Unanimously 3‐0
V. New Business
A. Review of FY2015 IURA Finances & Assets ‐ Review
Bohn noted that no action item is associated with this review. He reported that the
auditors completed the audit and IURA staff has every indication the IURA will receive a
clean financial audit report. In terms of the Administrative Budget, Bohn noted the
IURA did not expend as much money as originally projected.
(David Whitmore arrived at 8:45 a.m.)
Ithaca
Urban
Renewal
Agency
IURA GC Minutes
March 18, 2016
Page 2 of 16
Bohn explained that the Bank Account Analysis documents IURA’s various accounts over
time, for comparison purposes. The trend line is generally level. Some accounts are
more flexible than others (e.g., “11030, Non‐CDBG, #05”), in terms of whether they are
permitted to cover administrative costs.
Cummings observed the report does not show the potential use of the neighborhood
fund, which amounts to an additional $1M available to the IURA, but which was never
formally appropriated or bonded. Bohn replied that is correct.
Cummings suggested identifying an appropriate accounting mechanism to show that as
possible financial resource. Bohn replied that the IURA would need to discuss that with
Bond Counsel. Since it would have annual budget impact on the City, it would also need
to be discussed with the City. He could consult with the auditors and explore what
might be devised (at the very least a note of some sort could be inserted).
Bohn noted the “Summary of IURA Assets” includes both cash and non‐cash assets, with
a total which is fairly good. On the right‐hand side are listed any Federal funding
restrictions associated with each line item. For example, the “Industrial Business Parks”
and “NON‐CDBG” lines cannot be employed for non‐urban renewal purposes. The
Committee has been discussing the potential for making more repayable loans, as part
of its long‐term funding strategy, which should be low‐risk projects. He added that INHS
is developing a model to refinance most of its rental housing stock, which may be an
opportunity for the IURA.
Cummings recalled at the last meeting the Committee discussed possibly pursuing a
financial ownership position in some projects. Bohn replied that the IURA could
certainly explore that, where it sees opportunities.
Cummings asked if the IURA could fund moderate‐income housing projects. Bohn
replied that UDAG and HODAG funds would be available for those kinds of projects;
however, overall there would not be a lot of funds available for that type of use. The
Public Authorities Law restricts the IURA to only undertaking activities it has been
expressly authorized to conduct. At next meeting Committee, there could be a
discussion of the IURA’s expressly authorized activities.
B. Reaffirmation of IURA Investment Guidelines
Bohn noted the guidelines essentially focus on the need to preserve principal and limit
investments to very low‐risk funds. He should also note that the IURA has pledged
collateral from banks and pledged securities from Tompkins Trust Company (TTC),
against IURA bank accounts for any amounts more than the $200,000 Federally insured
amount. The total insurance and collateral represents $3M+ of secured investments.
The IURA is satisfying its investment guidelines that it be fully insured.
IURA GC Minutes
March 18, 2016
Page 3 of 16
Cummings observed the guidelines also mention “additional considerations” (e.g., ease
of administration, services offered). She asked to what extent the IURA scrutinizes what
Tompkins Trust Company offers its customers (e.g., fairness of its fees, benefits it
provides its customers).
Bohn replied that the IURA examines the bank’s Community Reinvestment Act status
and it ranks near the top; however, that does not reveal much in terms of things like fee
structures, and so on.
Cummings asked if there are other local banking institutions that offer excellent services
and fee structures for their customers. She would like to see the IURA support a
banking institution that is a leader in terms of providing affordable services to low‐
income customers.
Bohn replied that Alternatives Federal Credit Union would probably be a leader in that
respect; however, the IURA actually used to bank with them and experienced some
difficulty. He indicated that IURA staff could certainly examine TTC fees and compare
them to others banking institutions. He would expect to see numerous trade‐offs in
most cases. He added that there are certain intrinsic advantages for the IURA banking
with TTC (e.g., ease of access, banking the same institution the City uses).
Moved by Cummings, seconded by Whitmore:
Reaffirm IURA Investment Guidelines
WHEREAS, on March 25, 2011, the IURA adopted investment guidelines regarding the
investing, monitoring and reporting of funds of the IURA, and
WHEREAS, the Public Authorities Law requires each public benefit corporation to
adopt and annually review and approve such guidelines, and
WHEREAS, the IURA periodically reviews the investment guidelines, and
WHEREAS, at its March 18, 2016 meeting, the IURA Governance Committee reviewed
its investment guidelines and compliance with the guidelines, and recommends the
following; now, therefore, be it
RESOLVED, that the IURA hereby reaffirms the IURA investment guidelines, dated
March 25, 2011.
Carried Unanimously 4‐0
IURA GC Minutes
March 18, 2016
Page 4 of 16
Ithaca Urban Renewal Agency
Investment Guidelines
Public Authorities Law (PAL) requires each public benefit corporation to adopt
investment guidelines regarding the investing, monitoring and reporting of funds of
the corporation and annually review and approve such guidelines (section 2925 of
PAL).
Investing
The primary investment objective for managing funds of the IURA is to preserve
capital and comply with all applicable regulations and requirements pertaining to the
funds managed. A secondary investment objective is to maximize interest earned on
monies managed by the IURA. A tertiary investment objective is to deposit
investment funds in qualified financial institutions that meet the financial needs of
residents and businesses within the IURA service area. An additional consideration is
ease of administration and services offered by depository institutions, such as the
availability of internet banking, including on‐line documentation of cancelled checks
and account balances, and free wire transfers.
Because the IURA acts as a pass‐through of grant funds from federal agencies to end
users, the grant funding source agency may establish special requirements for
management of such funds. For instance, the US Department of Housing & Urban
Development requires that all bank interest earned on HUD funds be remitted to the
US Treasury annually.
Agency monies may be invested in obligations of the US Treasury or deposited in
federally insured commercial banks, trust companies, or credit unions, preferably
institutions located within the City of Ithaca and the urban renewal project boundary
area. Agency monies may be deposited in the above‐listed institutions in demand
accounts and certificates of deposit.
Collateral is required for demand deposits and certificates of deposit at a minimum of
100% of all deposits not covered by federal deposit insurance. Obligations that may
be pledged as collateral are obligations of the United States and its agencies and
obligations of New York State and its municipalities and school districts.
Signatories on deposit accounts shall be designated by resolution of the IURA. Only a
designated signatory is authorized to establish investment accounts. Two signatures
of designated signatories shall be required on all checks issued by the IURA.
IURA GC Minutes
March 18, 2016
Page 5 of 16
Monitoring
Investment statements shall be reconciled with the general ledger on a monthly
basis. The reconciliation shall be reviewed by staff to verify that the investment
statements and the IURA balance sheet match on a monthly basis.
No less than annually, the Agency shall review its investment guidelines and its
investments.
Reporting
An independent auditor shall review IURA investments on an annual basis as part of
the independent audit of financial statements. The IURA shall review the
independent audit and address any recommendations, concerns or findings.
C. Self‐Evaluation of IURA Board Performance
Bohn explained that the IURA Board conducts the evaluation annually. This year’s
results generally appear positive and seem similar to last year’s (with perhaps a few
more “Somewhat Agrees” responses this year).
Rosario suggested the IURA use one year’s evaluation results as a baseline, so it can
begin to identify a historical trend line and track the results more easily over a period of
years.
Cummings suggested adding some questions or an “additional comments” line.
Whitmore suggested asking something like, “Is there something you would change [..]”
about the Board.
Schlather observed that generally speaking the results look pretty good.
Rosario noted he could send Bohn suggestions for modifying the form, to review at the
next Committee meeting.
IURA GC Minutes
March 18, 2016
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IURA GC Minutes
March 18, 2016
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D. Procurement of Independent Contractors
1. Legal Services Resolutions
Bohn explained that the independent services contracts were all put to bid last year.
The IURA is only required to conduct the bidding process once every three years. He
added that IURA staff is very pleased with the work of Sharon Sulimowicz, who was new
last year.
Moved by Whitmore, seconded by Cummings:
2016 Procurement of Independent Legal Services: Geldenhuys
WHEREAS, the contract for independent legal services with Mariette Geldenhuys,
Attorney‐at‐Law (Geldenhuys) expires on February 29, 2016, and
WHEREAS, in accordance with IURA procurement policy and regulations contained in
24 CFR §85.36, the IURA selected Geldenhuys through a Request for Proposals (RFP)
selection process in 2015, and
WHEREAS, whereas per applicable procurement regulations, a contractor selected
through an initial competitive selection process may be renewed for up to three
additional one‐year terms without undertaking a new competitive selection process,
and
WHEREAS, a proposed 2016 contract would constitute the first one‐year extension of
the base independent consultant contract, and
WHEREAS, Geldenhuys submitted a proposal on March 2, 2016 to continue providing
legal services to the IURA at a maximum billing rate of $205 per hour, a 2.5% increase
from the current contract rate, and
WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided
by Geldenhuys, and
WHEREAS, the 2016 IURA budget recommended a total authorized contract amount
of $18,000 for legal services; now, therefore, be it
RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel,
to execute a contract extension for independent contractor legal services with
Mariette Geldenhuys, Attorney and Mediator, at a maximum hourly rate of $205 per
hour with the total amount not to exceed $18,000, and be it further
IURA GC Minutes
March 18, 2016
Page 8 of 16
RESOLVED, that the source of such funds for legal services shall be derived from a
variety of funding sources, including, but not limited to, CDBG and HOME funds, and
expenses shall be billed to the appropriate source of funds for which the services
were performed.
Carried Unanimously 4‐0
Moved by Cummings, seconded by Whitmore:
2016 Procurement of Independent Legal Services: Ruswick
WHEREAS, the contract for independent legal services with Richard P. Ruswick,
Attorney at Law, (Ruswick) expired on February 29, 2016, and
WHEREAS, in accordance with IURA procurement policy and regulations contained in
24 CFR §85.36, the IURA selected Ruswick through a Request for Proposals (RFP)
selection process in 2015, and
WHEREAS, whereas per applicable procurement regulations, a contractor selected
through an initial competitive selection process may be renewed for up to three
additional one‐year terms without undertaking a new competitive selection process,
and
WHEREAS, a proposed 2016 contract would constitute the first one‐year extension of
the base independent consultant contract, and
WHEREAS, Ruswick submitted a proposal on March 9, 2016 to continue providing
legal services to the IURA at a maximum billing rate of $185 per hour, a 2.8% increase
from the current contract rate, and
WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided
by Ruswick, and
WHEREAS, the 2016 IURA budget recommended a total authorized contract amount
of approximately $2,500 for legal services; now, therefore, be it
RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel,
to execute a contract extension for independent contractor legal services with
Richard P. Ruswick at Levene, Gouldin, & Thompson, LLP, at a maximum hourly rate
of $185 per hour with the total amount not to exceed $2,500, and be it further
IURA GC Minutes
March 18, 2016
Page 9 of 16
RESOLVED, that the source of such funds for legal services shall be derived from a
variety of funding sources, including, but not limited to, CDBG and HOME funds, and
expenses shall be billed to the appropriate source of funds for which the services
were performed.
Carried Unanimously 4‐0
Moved by Cummings, seconded by Whitmore:
2016 Procurement of Independent Legal Services: Sulimowicz
WHEREAS, the contract for independent legal services with Sharon M. Sulimowicz,
Attorney at Law, (Sulimowicz) expired on February 29, 2016, and
WHEREAS, in accordance with IURA procurement policy and regulations contained in
24 CFR §85.36, the IURA selected Sulimowicz through a Request for Proposals (RFP)
selection process in 2015, and
WHEREAS, whereas per applicable procurement regulations, a contractor selected
through an initial competitive selection process may be renewed for up to three
additional one‐year terms without undertaking a new competitive selection process,
and
WHEREAS, a proposed 2016 contract would constitute the first one‐year extension
of the base independent consultant contract, and
WHEREAS, Sulimowicz submitted a proposal on March 9, 2016 to continue providing
legal services to the IURA at a maximum billing rate of $140 per hour, a 0.0% increase
from the current contract rate, and
WHEREAS, the IURA staff is highly satisfied with the quality of legal services provided
by Sulimowicz, and
WHEREAS, the 2016 IURA budget recommended a total authorized contract amount
of approximately $2,500 for legal services; now, therefore, be it
RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel,
to execute a contract extension for independent contractor legal services with Sharon
IURA GC Minutes
March 18, 2016
Page 10 of 16
M. Sulimowicz, Attorney‐at‐Law, at a maximum hourly rate of $140 per hour with the
total amount not to exceed $2,500, and be it further
RESOLVED, that the source of such funds for legal services shall be derived from a
variety of funding sources, including, but not limited to, CDBG and HOME funds, and
expenses shall be billed to the appropriate source of funds for which the services
were performed.
Carried Unanimously 4‐0
2. Community Development Consulting Services Resolution
Cummings noted that the Committee never has the opportunity to see Sicherman’s
work. Bohn replied he seems to perform pretty well: he is timely, thorough, and
sophisticated in his approach. He even strengthened the IURA’s collateral position for a
couple of loans.
Moved by Cummings, seconded by Whitmore:
2016 Procurement of Independent Consultant Services: H. Sicherman & Co., Inc.
WHEREAS, the contract for independent professional consulting services with H.
Sicherman & Co., Inc. (Sicherman) expired on February 28, 2015, and
WHEREAS, in accordance with IURA procurement policy and regulations contained in
24 CFR §85.36, the IURA selected Sicherman through a Request for Proposals (RFP)
selection process in 2015 to provide technical assistance for development,
administration and implementation of the IURA community development program,
including loan underwriting, and
WHEREAS, whereas per applicable procurement regulations, a contractor selected
through an initial competitive selection process may be renewed for up to three
additional one‐year terms without undertaking a new competitive selection process,
and
WHEREAS, a proposed 2016 contract would constitute the first one‐year extension of
the base independent consultant contract, and
WHEREAS, Sicherman submitted a proposal on February 29, 2016 to continue
providing community development consulting services to the IURA at a maximum
billing rate of $169 per hour, a 3% increase from the current contract rate, and
IURA GC Minutes
March 18, 2016
Page 11 of 16
WHEREAS, loan underwriting services of Mr. Richard Rickli of Sicherman are offered
at a rate of $139 per hour, and
WHEREAS, the IURA staff is highly satisfied with the quality of services provided by
Sicherman, and
WHEREAS, the 2016 IURA budget recommended a total authorized contract amount
of $12,000 for community development consulting services; now, therefore, be it
RESOLVED, that IURA Chair is hereby authorized, upon review of IURA legal counsel,
to execute a contract extension for independent contractor community development
services with H. Sicherman & Co., Inc. at a maximum hourly rate of $169 per hour
with the total amount not to exceed $12,000, and be it further
RESOLVED, that the source of such funds for legal services shall be derived from a
variety of funding sources, including, but not limited to, CDBG and HOME funds, and
expenses shall be billed to the appropriate source of funds for which the services
were performed.
Carried Unanimously 5‐0
3. Minute‐Taking Services
Moved by Whitmore, seconded by Schlather:
2016 Procurement of Independent Minute‐Taking Services: Charles Pyott
WHEREAS, Mr. Charles Pyott has been providing the IURA with minute‐taking
services to the IURA as an independent contractor since July 8, 2011, and
WHEREAS, the annual contract for his services expired on February 28, 2015, and
WHEREAS, Pyott has submitted a proposal to continue to provide minute‐taking
services at a rate of $18.76 per hour, a 2.2% increase from 2015 rates, and
WHEREAS, the IURA staff is highly satisfied with Pyott’s performance, and
WHEREAS, the 2014 IURA budget recommends an authorized amount of $5,000 for
minute taking services; now, therefore be it, and
WHEREAS, at their March 18, 2016 meeting the Governance Committee considered
this matter and recommended the following; now, therefore, be it
IURA GC Minutes
March 18, 2016
Page 12 of 16
RESOLVED, that the IURA Chairperson is hereby authorized, upon review of IURA
legal counsel, to execute a one‐year contract extension for independent contractor
minute‐taking services with Charles Pyott at a rate of $18.76 per hour with the total
amount not to exceed $5,000, and be it further
RESOLVED, that the source of such funds shall be derived from non‐CDBG funds.
Carried Unanimously 4‐0
E. Support Partial Exemption of Owner‐Occupied Residential Properties Subject To
Affordable Resale Restrictions – Resolution
Rosario explained that the resolution is the product of a long‐standing IURA concern
with affordable housing in the housing trust being assessed at more than its actual re‐
sale value by the Tompkins County Assessment Office. This resolution urges the State to
amend its real property tax law. Tompkins County also passed similar resolution.
Moved by Whitmore, seconded by Cummings:
Resolution Urging New York State to Amend Real Property Tax Law to Allow
Tompkins County the Option to Provide Partial Exemption to
Residential Properties Subject to Resale Restrictions
WHEREAS, there is a demonstrable and critical shortage of affordable housing within
the City of Ithaca and Tompkins County; and
WHEREAS, this Common Council has attempted to address that shortage through a
number of measures, including financial participation with Tompkins County and
Cornell University to create Community Housing Development Fund, which provides
subsidies for creation of affordable housing; and
WHEREAS, Section 501(c)(3) of the Internal Revenue Code allows for the creation of
nonprofit entities that have as one of their purposes the acquisition of land to be held
for the primary purpose of providing affordable homeownership through the
implementation of deed or ground lease restrictions; and
WHEREAS, the nonprofit agency is subject to an initial regulatory agreement
restricting purchase of these properties in accordance with an income test; and
WHEREAS, such programs are known generically as community land trusts, and
IURA GC Minutes
March 18, 2016
Page 13 of 16
WHEREAS, with the support and encouragement of the members of the Community
Housing Development Fund, the community land trust model is being utilized in
Tompkins County as a means to develop affordable housing that remains affordable
throughout its existence by means of limitations on future re‐sale prices; and
WHEREAS, while the limitation on resale prices promotes long‐term affordability,
New York State’s Real Property Tax Law does not allow consideration of such
limitations when determining the assessed valuation of property participating in a
community land trust, resulting in assessed values that can far exceed the restricted
re‐sale value of the property and a property tax burden well in excess of that borne
by properties that have similar re‐sale values in the marketplace; and
WHEREAS, this adverse element of the Real Property Tax Law is deterring the
development and purchase of homes through the community land trust program and
is therefore exacerbating the shortage of affordable housing in Tompkins County; and
WHEREAS, it is in the interest of City of Ithaca to address that deterrent to the
development of affordable housing; and
WHEREAS, at their March 18, 2016 meeting the IURA Governance Committee
discussed this matter and recommends the following; now, therefore, be it
RESOLVED, the IURA urges the New York State Legislature to amend the Real
Property Tax Law by creating a new section of law that would allow Tompkins
County, by local law, to grant a partial exemption equal to the difference between
the full resale value absent any restriction and the maximum resale value of said
property established by said ground lease to residential properties located on land
owned by a nonprofit entity and subject to a ground lease or deed restrictions which
restrict the resale price of the property for at least 30 years, and be it further
RESOLVED, that the IURA recommends that the City of Ithaca Common Council adopt
a resolution supporting a proposed amendment to Real Property Tax Law so that
owner‐occupied, resale‐restricted affordable residences incur a property tax bill
similar to residential properties with similar re‐sale values in the City of Ithaca.
Carried Unanimously 4‐0
Cummings asked about the anticipated timeframe for action. Bohn replied that the
resolution was crafted as narrowly as possible to avert any potential opposition from
other communities, so it could conceivably be adopted as soon as late summer.
IURA GC Minutes
March 18, 2016
Page 14 of 16
Cummings asked if other local organizations and government entities could be added to
the list of signatories (e.g., Town of Ithaca, Cornell University). Bohn replied that INHS
will be appearing before the Planning and Economic Development Committee, so the
IURA could consult with them about that at that time.
F. IURA Mission Statement Reaffirmation
Moved by Schlather, seconded by Whitmore:
Reaffirmation of IURA Mission Statement
WHEREAS, on March 25, 2011, the IURA adopted the following IURA mission
statement:
“The Ithaca Urban Renewal Agency secures and manages resources to
improve the social, physical and economic characteristics of the City of
Ithaca by expanding access to quality affordable housing, strengthening
neighborhoods and the local economy, and supporting other community
development activities.”
WHEREAS, the Public Authorities Law requires each public benefit corporation to
adopt and annually review its mission statement, and
WHEREAS, the IURA periodically reviews its mission statement, and
WHEREAS, at its March 18, 2016 meeting, the IURA Governance Committee reviewed
this matter and recommends the following; now, therefore, be it
RESOLVED, that the IURA hereby reaffirms the IURA mission statement, dated March
25, 2011.
Carried Unanimously 5‐0
VI. Other Business
A. Review of IURA Financials: February 2016
Bohn reported all grants are in good shape, with two minor exceptions (although
progress was made on those this past week). Tompkins Community Action’s Housing
First program was funded from 2013‐2015. They just submitted some required
documentation, so their 2013 funds and most of their 2014 funds will be spent. They
agreed that most of the 2015 funds would not be spent.
IURA GC Minutes
March 18, 2016
Page 15 of 16
Cummings expressed concern with Tompkins Community Action’s organizational
capacity and efficacy. She would caution the IURA about selecting them to operate
future programs.
Bohn indicated the one other delinquent project is the Downtown Ithaca Alliance (DIA)
Business Boost program, which finally submitted documentation for funding assistance
to three businesses. It does not seem likely it will expend the full approved funding
amount.
Bohn indicated that while there were some delays in loan repayments, there are no real
problems of note. Diane’s Downtown Auto is delinquent for the first time in a long
time. The Art and Found loan has been written off by the IURA. The Finger Lakes School
of Massage made a late payment. The INHS 210 Hancock Street project was billed
incorrectly by M&T Bank (which then refused to accept a payment check for some
reason), but all those issues have now been resolved.
Bohn reported all lease payments are current, except Southside Community Center,
whose lease obligations are being waived while its RIBS program is being re‐evaluated.
B. Review of HUD Annual Community Assessment
Bohn explained that the HUD Annual Community Assessment is a ‘desk monitoring’
evaluation it conducts. HUD indicated the IURA is in compliance with all HUD
requirements and it has no recommendations for improvement.
Bohn added that the official HUD award letter has also been received. HOME funding is
11% less than last year’s, while CDBG funding is 1.5% less. He noted that HOME is the
only funding allocated for new construction housing, so that is significant decrease. (It is
also the only program that permits rental assistance.)
Cummings suggested the IURA urge Common Council to send a letter to HUD and some
other Federal agencies asking what the situation is. Bohn responded that it is really a
factor of the 2011 Budget Control Act and the Republican‐controlled Congress. He
indicated he would follow up on the issue.
C. Project Updates & Staff Report
Bohn noted all the 2015 HUD Entitlement Grant applications have been received.
D. IURA & Common Council Actions of Interest to Committee
No discussion.
IURA GC Minutes
March 18, 2016
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VII. Adjournment
The meeting was adjourned by consensus at 10:00 A.M.
— END —
Minutes prepared by C. Pyott, edited by N. Bohn.