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HomeMy WebLinkAboutMN-IURAGOV-2021-10-08 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY GOVERNANCE COMMITTEE (GC) 8:30 A.M., Friday, October 8, 2021 Present: Eric Rosario, Chairperson; Kathy Schlather, Vice-Chairperson; Susan Cummings Excused: David Whitmore Vacancy: 1 Staff: Nels Bohn; Charles Pyott Guests: None I. Call to Order Chairperson Rosario called the meeting to order at 8:34 A.M. II. Agenda Additions/Deletions None. III. Verbal/Written Public Comments None. IV. Review of Meeting Minutes: April 16, 2021 Schlather moved, seconded by Cummings, to approve the meeting minutes, with no modifications. Carried Unanimously: 3-0 V. New Business A. IURA Strategic Planning — IURA Fiscal Sustainability Outlook: Discussion Bohn explained the IURA is reasonably well-situated in terms of its immediate fiscal outlook, with its recent additional HUD CDBG-CV funding awards and forthcoming HOME Investment Partnerships Program (HOME)-American Rescue Plan (ARP) award, although there may be a few challenges to resolve after 2023. He noted two items in the meeting agenda packet relate to a potential change to the Office of Management and Budget’s (OMB) Metropolitan Statistical Area (MSA) definition. OMB originally proposed to increase the population threshold for MSA designation to 100,000, but recently decided to maintain the current threshold at 50,000. Also in the meeting materials is a chart tracking FY2022 HUD and USDA program funding projections, including potential increases in Community Development Block Grant (CDBG) Program and HOME funding. Approved: 1/21/22 IURA GC Meeting Minutes October 8, 2021 Page 2 of 16 2 Bohn remarked, as described in his “IURA Fiscal Sustainability Outlook” memo to the Committee, additional CDBG-CV projects and other Special Projects have recently created significantly more work for the IURA’s 3.63 Full-Time Equivalent (FTE) staff, resulting in increased accrued compensatory and vacation time. These accruals represent an unfunded IURA liability, since employees must be paid for all vacation and compensatory time accrued, upon retirement. IURA GC Meeting Minutes October 8, 2021 Page 3 of 16 3 Cummings suggested the IURA develop a methodology for identifying and securing private local funding, since it is otherwise so dependent on which political party happens to be in power. It would also provide the IURA more freedom to fund the types of projects it is most interested in funding. The IURA could examine best practices for how other communities have approached the issue. In addition, the IURA could pursue the $1M in approved City bond funding, which she has mentioned at prior meetings. Bohn replied he could certainly explore what other communities have done, as well as discuss the issue with the Mayor. The IURA did enter into a revenue-sharing agreement with the City for the Cayuga Green, LLC loan. When the City originally conveyed the Cayuga Green property, it allowed a portion of future revenue from the sale/loan to be retained by the IURA (currently $40,000/yr.) to cover costs associated with joint City/IURA projects. The IURA could revisit that arrangement, or develop another similar arrangement with the City for a community development project. Any pursuit of the $1M in approved City bond funding would require Common Council action. IURA GC Meeting Minutes October 8, 2021 Page 4 of 16 4 Rosario agreed with Cummings’ suggestions. He is impressed with City Director of Sustainability Luis Aguirre-Torres’ ability to piece together creative financing for some of the City’s sustainability projects. It may be helpful for the IURA to consult him to identify new approaches for identifying funding sources. He could be invited to a future Committee meeting. Schlather asked what governs what the IURA can and cannot do with its funds. Bohn replied he could send her more information about that. According to the NYS Public Authorities Law, a public benefit organization, like the IURA, is not permitted to award grants or issue loans of its own funds, unless expressly permitted in its enabling statute. Schlather remarked she was concerned when saw the vacation and compensatory time accruals. She suggested hiring temporary staff on an as-needed basis. IURA GC Meeting Minutes October 8, 2021 Page 5 of 16 5 Bohn replied the memo does outline some options for approaching the accruals issue (e.g., super- incentivizing use of vacation time). Cummings asked what type of work could be contracted out and if an additional accountant could perform some of the more routine tasks. Bohn replied it would be challenging to find a part-time accountant who could be effectively integrated into the workflow, without requiring an inordinate amount of training. Bohn added it may also be possible to buy out compensatory time and convert it into more retirement benefits (which would also not be subject to taxation or FICA deductions). Staff expressed some interest in that approach. The IURA’s current HR policy prohibits an employee’s compensatory time from exceeding 80 hours. The IURA could also expand a buy-out approach to include vacation time. Rosario noted converting compensatory time to additional retirement benefits seems an elegant solution, although he is not sure it represents the healthiest, most sustainable long-term solution. Schlather remarked buying out vacation time may just end up incentivizing staff not to use it. Bohn remarked he will explore some of the best ideas discussed today and return to the Committee. B. FY2022 IURA Administrative Budget Rosario explained the annual IURA budget is required to be submitted to the NYS Authorities Budget Office 60 days prior to the end of the fiscal year. As noted in Bohn’s “Proposed 2022 IURA Budget” memo, the recommended 2022 budget of $401,446 represents an increase of 3.4% from the 2021 budget. If a one-time $9,000 projected Inlet Island appraisal expense is excluded, however, the annual increase would only be 1.1% (since it is anticipated the fee will be reimbursed upon sale of Inlet Island property). Bohn added the budget includes a 3.0% staff salary increase, which is roughly equivalent to the 3-year average salary increases for the City’s Executive Unit agreement. Staff compensation and benefits account for 86% of the IURA budget. Unfortunately, health insurance premiums will increase 7.3% in 2022. Cummings recalled discussing legal expenses at the last meeting and the need to begin recruiting a pool of new attorneys. Bohn replied the IURA will be issuing a new RFP for legal services in January 2022, so that will be an opportunity to address the issue. Cummings noted she would like to see an aggressive search to replace the current out-of-town attorney, in favor of a local attorney. IURA GC Meeting Minutes October 8, 2021 Page 6 of 16 6 IURA GC Meeting Minutes October 8, 2021 Page 7 of 16 7 Schlather moved, seconded by Cummings: Adoption of FY2022 IURA Administrative Budget WHEREAS, the IURA desires to annually adopt an administrative budget to guide expenditures and manage financial resources of the IURA, and WHEREAS, New York State law governing public authorities requires submission of a proposed budget 60 days prior to the start of the next fiscal year, and IURA GC Meeting Minutes October 8, 2021 Page 8 of 16 8 WHEREAS, the IURA budget is due to be submitted to the New York State Authorities Budget Office (ABO) by November 1st of each year, and WHEREAS, the IURA Governance Committee reviewed this matter at their October 8, 2021 meeting and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby adopts the FY2022 IURA Administrative Budget, dated 10/5/21. Carried Unanimously: 3-0 IURA GC Meeting Minutes October 8, 2021 Page 9 of 16 9 IURA GC Meeting Minutes October 8, 2021 Page 10 of 16 10 IURA GC Meeting Minutes October 8, 2021 Page 11 of 16 11 IURA GC Meeting Minutes October 8, 2021 Page 12 of 16 12 IURA GC Meeting Minutes October 8, 2021 Page 13 of 16 13 C. HUD Annual Community Assessment (PY2019) — Review Bohn explained the report included in the meeting materials is HUD’s standard annual desk review of IURA activities, which concluded the IURA “has carried out its program substantially as described in its Consolidated Plan submission.” IURA GC Meeting Minutes October 8, 2021 Page 14 of 16 14 D. Personnel Matter (possible Executive Session to discuss the medical, financial, credit, or employment history of a particular person) ― EXECUTIVE SESSION ― Cummings moved, seconded by Schlather, to open the Executive Session at 9:37 a.m. Carried Unanimously: 3-0 Schlather moved, seconded by Cummings, to close the Executive Session at 9:47 a.m. Carried Unanimously: 3-0 Rosario reported in the Executive Session the Committee unanimously approved awarding the Community Development Planner a one-time merit-based ward of $3,000 in recognition of her outstanding work in securing the Anti-Displacement Learning Network (ADLN) grant, in addition to all the other work she has performed for the IURA. Cummings moved, seconded by Schlather: Merit-Based Bonus to IURA Community Development Planner WHEREAS, the Governance Committee discussed correspondence received regarding the high-quality of work performed by the Community Development (CD) Planner, and WHEREAS, a highly positive performance review of the CD Planner was conducted in 2020 that recognized the work of the CD Planner to initiate and coordinated an Enterprise Anti-Displacement Learning Network (ADLN) grant application, and WHEREAS, over the past 12 months, the CD Planner has successfully led the collaborative planning effort to create the $1 million ADLN anti-eviction and housing stability program to be delivered by the Human Services Coalition of Tompkins County, and WHEREAS, in 2021, the CD Planner was also instrumental in securing the $500,000 Mayors for a Guaranteed Income (MGI) grant, and developed an implementation scope of work to expand housing stability, and WHEREAS, the CD Planner continued to successfully complete regular HUD Entitlement Grant work, including two additional rounds of CDBG-CV funding thereby doubling the number of funded projects to manage, all against a backdrop of the COVID-19 pandemic, and WHEREAS, IURA annual budgets set aside $5,000 for merit-based bonuses or salary adjustments at the Agency’s discretion, and IURA GC Meeting Minutes October 8, 2021 Page 15 of 16 15 WHEREAS, the Director of Community Development recommends allocation of a bonus to the CD Planner in acknowledgement of work completed to coordinate a network of community stakeholders and funders to design and roll-out an anti-eviction and housing stability program while fulfilling normal job duties, and WHEREAS, the IURA Governance Committee recommended the following action; now, therefore, be it RESOLVED, that the IURA hereby awards a $3,000 one-time bonus to the Community Development Planner in recognition of excellence in performance, including work to organize, develop, and coordinate the $1.5 million anti-eviction and housing stability program, and be it further RESOLVED, that the funds shall derive from the $5,000 merit-based salary/bonus pool established in the adopted 2021 IURA budget. Carried Unanimously: 3-0 E. Independent Contractor Services: Minute-Taking Bohn explained that since the IURA has had so much more work associated with administration and monitoring of a considerable number of HUD Entitlement projects over the past 18 months, including CDBG-CV activities, but a limited amount of Contracts Monitor time for minute-taking, the proposed resolution seeks to alleviate some of that burden. It would be a trial process to determine if a satisfactory person can be identified. Schlather moved, seconded by Cummings: Independent Professional Service Contract — Minute-Taking WHEREAS, the IURA is administering increased federal funding allocated to the City in response to the COVID-19 virus pandemic, and WHEREAS, such increased funding increases the workload for the Contracts Monitor who provides primary minute-taking services for the IURA and its committees in addition to primary subrecipient monitoring and compliance duties, and WHEREAS, the City of Planning and Development Department seeks to hire a part-time seasonal employee to provide minute-taking services, and WHEREAS, there may be an opportunity for collaboration between the IURA and City on minute- taking services, and WHEREAS, transferring the minute-taking task for Economic Development Committee meetings and possibly another committee would allow the Contracts Monitor to focus more time on contracts monitoring activities, and IURA GC Meeting Minutes October 8, 2021 Page 16 of 16 16 WHEREAS, the Contracts Monitor would continue to provide minute-taking for IURA Board meetings, and WHEREAS, as of August 31, 2021, $9,518 of the $10,000 budgeted amount for “other professional services” in the 2021 IURA budget was expended, though $7,355 of this amount was for unplanned engineering services for the Green Street Garage Urban Renewal Project which were fully reimbursed, and WHEREAS, net out-of-pocket expenses expended to date for “other professional services” equals $2,163 as of August 31, 2021, and WHEREAS, the IURA Governance Committee reviewed this matter at their October 8, 2021 meeting and recommended the following; now, therefore, be it RESOLVED, that the IURA hereby authorizes the IURA Chair, subject to review by IURA legal counsel, to enter into an independent services contract for minute-taking services with a contractor recommended by the IURA Director of Community Development in an amount not to exceed $2,500. Carried Unanimously: 3-0 VI. Other Business A. Review of IURA Financials: August 2021 Bohn reported all HUD Entitlement Program projects are progressing well, with a few exceptions (e.g., Salvation Army mortgage payment assistance project). The Salvation Army has had difficulty identifying homeowners-in-need. B. IURA & Common Council Actions of Interest to Committee ― Report None. C. Staff Report Bohn reported that Director of Planning and Development JoAnn Cornish retired at the end of October. Lisa Nicholas will serve as Acting Director, until a new director is hired. Bohn reported the Mayor recently hired a new Chief of Staff, Faith Vavra. VII. Adjournment The meeting was adjourned by consensus at 10:21 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.