HomeMy WebLinkAbout2014_12_11 Housing Authority Minutes TOWN OF MAMARONECK HOUSING AUTHORITY
BOARD MEETING MINUTES
12/11/14
In attendance:
Board Members:Rick Cherry-Chairman,Sal Iacono-Treasurer,Bob Kirby-Secretary,
Caroline Silverstone and Dolores Battalia
Managing Agent:Bram Fierstein
Town Board Liasion:Not present
The Board Meeting was called to order promptly by Chairman,Rick Cherry,at 9:05 AM.The
minutes from the last meeting in July,2014 was approved by the Board in a unanimous vote.
The Chairman indicated that the new Town Board Liasion,Tom Murphy,named by the Town
Supervisor Nancy Seligson in June,could not attend today's meeting but will attend future
meetings if they are held in the evening hours.
1. Cash Position HVB Operating Account $ 102,790.07
@ 12/11/14: HVB Capital Account $ 2,209.87
Morgan Stanley L/T Reserve$ 651,147.73
Morgan Stanley S/T Reserve $ 60,140.51
Total $ 916,288.18
2. Managing Agent's Report: The Managing Agent,Bram Fierstein,reported to the Board
that all apartments are fully rented and total arrears are currently$10,890.The current
rents offered to tenants are"undermarket"--the intentional aim of the Board.Bram also
presented the updated Tier Report that indicates there are currently 14 Section 8 tenants
representing 26.4%of the tenant totals--12 Section 8 tenants are the minimum required.
3. 2015 Operating Budget:The Managing Agent presented the 2015 Operating Budget for
Board approval.The operating budget estimates a small surplus for the year and contains
the following major assumptions:a small 1.2%rent increase for one year leases and
2.0%for two year leases during FY 2015,continuation of the$75,000 funding of the L/T
Reserve,$7,500 in engineering fees for siding replacement specifications,and a modest
salary increase for the custodian,Abner Duke.The Chairman,Rick Cherry,indicated that
the rent increase for the 2015 Budget should revert to the 2%for one year leases and 3%
for two year leases,as currently in effect for 2014.These approved rent increases will
continue until all current leases are renewed unless the Board decides to change it.The
• Board tentatively approved the budget for next year but wanted to see the revised rent
increases impact at the next Board meeting.
4. Driveway Repairs:The Managing Agent mentioned that the Town has not made any
further repairs to the driveway since the last Board meeting in July.Town Administrator
Steve Alfieri has recently indicated that the Town would provide a guarantee for the bond
refinancing in exchange for the Housing Authority paying the entire cost of the driveway
repair/replacement.Chairman Cherry indicated that we should still request the Town have
their engineering staff provide us cost estimates for the repairs to ensure the Housing
Authority pays a fair price for the repaving.Bram also wanted to clarify that the Town
continue to reimburse the Authority for 50%of the snow plow expense for 2015.
5. Bond Refinancing:The Treasurer,Sal Iacono,invited our financial advisor,Mr.
Richard Tortora of Capital Markets Advisors LLC,to present to the Board the
analysis he prepared for the refinancing of the Housing Authority bonds.Mr.
Tortora discussed the$100,000 interest savings on the refinancing due to the
lower rate environment,but that will be offset by the required fees that would
approx.total$85,000.However,because the Board intends to borrow additional
funds for major capital projects,the bond refinancing makes economic sense.
There are a number of items the Board needs to provide Capital Markets Advisors
with in the weeks to come--audited financial statements for the past five years
and both current year 2014 budget reconciled with actual results and a projected
2015 budget.The Board will also have to participate in a Town of Mamaroneck
Board meeting in January,2015 to obtain the Town's guarantee(i.e.,"backstop")
to receive a AA credit rating for the refinancing.The Housing Authority will
also provide a Bond Authorization to our Bond Counsel and schedule a public
hearing in February,2015.Mr.Tortora gave an estimate that these events would
take place over a period of 4-6 weeks before the final pricing and completion
of the refinancing takes place.Because of the bond refinancing importance,the
Board has scheduled a follow up Board meeting for Friday,December 19th and
asked Mr.Tortora to provide a financial analysis of various options with different
borrowing amounts to understand the impact on cash flows.
6. Major Capital Projects: In order to derive an accurate borrowing amount for the
Series B bond issuance(i.e.,"New Financings")Bram Fierstein and Sal Iacono
will revise the cost estimates for the following projects:Cedar siding
replacement,Driveway repair/replacement,Roof repair,and Window
replacements.A portion of the L/T Reserve will be used for these expenditures
but Mr.Tortora's explanation of the"arbitrage rule"requires that all of the new
borrowings be spent within two years of the initial borrowing.
7. The next Board Meeting will be scheduled for Friday,December 19th @ 8:30 AM.
The Board Meeting adjourned at 10:30AM.
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