Minutes, August 17, 2021

Minutes of the August 17, 2021 Clarksville CDC Monthly Meeting 

The meeting was held via Zoom in order to allow the participation of a board member who is out-of-town.

Board members present: Aly Byatt, BJ Friedman, Paula Hern, Kim O’Brien, Mary Reed, Chris Thomas, and Gregory Tran

Others present: Brad Prak and Mary Vega, Prak Property Management

 

1.    On a motion by Paula, seconded by Chris, the minutes from the July 20, 2021 monthly board meeting were approved. Approval came after a discussion of a couple of items discussed at the July meeting: Mary reported that CCDC insurance payments can only be made either monthly or annually; we will reach out to Google Fiber for service to the Haskell House at a later date.

2.    BJ presented the monthly financial reports, the first prepared by Prak Property Management (PPM.) The Board was impressed with the level of detail. There are now 4 reports: Accounts Payable, Balance Sheet, Profit and Loss, and Trial Balance. Brad explained that the Balance Sheet provides a snapshot, whereas the Trial Balance is more thorough. Linda Parsons of PPM ] will be on a future agenda to give the Board a “tutorial” on the reports. In the meantime, Brad encouraged Board members to email him with any questions.

All security deposits are now being held in a separate account at Frost Bank. A transfer was made from our Money Market account to establish this account.

Brad requested a copy of our schedule of depreciation in order that new purchases can be added.

PPM began working with CCDC in late June. In regard to what to expect in charges from PPM, Brad described July as a “messy transition” month, and that things are getting back on track in August. He anticipates that come September things will be back to normal, promising that “in 90 days this will all be a distant memory.”

 The minutes from the August 12, 2021 meeting of the Finance and Operations Committee appear at the end of these minutes. 

3.    The ‘review of how our accounting is handled now that we are working with Prak Property Management’ was discussed as a part of Agenda Item 2.

4.    Mary updated the Board on financial challenges ahead for CCDC. Not only are we are looking at increased costs associated with deferred maintenance on our properties, we will be facing cash management issues with our 2 grant-funded projects. Both the Haskell House repairs and the new construction at 1611 W. 10th Street are reimbursement grants in which we will front all costs. We know that the Haskell House repairs will cost more than the grant, and while we are in negotiations for the City to cover the additional expenses, it looks as if this will be on a reimbursement basis, as well.  There is also the real possibility that 1611 W. 10th actual costs will exceed projected costs.

5.    Monthly property reports:

CCDC properties managed by PPM: Brad reported that exterior inspections have been conducted on all properties. Interior inspections have been postponed due to COVID, but interior repairs are being made when tenants report problems. The front staircase at 1710 W. 10th was replaced and repairs were made to its side staircase. Mary wondered if volunteers could tackle some of the projects that had been identified in the exterior inspections. Brad agreed that some could. This will be discussed further at the next Board meeting.

New construction at 1611 W. 10th Street. Kim’s written report is included at the end of these minutes.

Grant-funded repairs to the Haskell House: Mary continues to work with Kim McKnight at PARD to make this project happen. Phoenix One, PARD’s preferred contractor, has submitted a bid but it exceeds the grant funds available. Kim McK is working to see that the City covers the additional expense. Mary also reported that the City made the needed plumbing repairs and running water has been restored to the community garden.

Renovation projects funded by OWANA funds. Mary reported that the bid received for the additional ingress/egress at the Charlotte property exceeds the total amount budgeted for both intended properties.  PPM will get another bid.

6.     Pamela Hill conducted an audit of the 2020 fiscal year (October 2019-September 2020.) There were no negative findings. On a motion by BJ, seconded by Paula, the 2020 Audited Financial Statement was approved.

Kim requested that next year’s audit be performed earlier in order to meet our Austin Housing Finance Corporation’s reporting deadline for the 1611 W. 10th Street project (audit due 6 months’ following the close of the fiscal year.) Brad stated that our fiscal year financials will be closed by the first week of November and the audit can begin after that.

7.    Under Other Business, Mary reported that 2 neighborhood children deep-cleaned the Neighborhood Center’s front porch, and rather than accept payment, they donated their time to the CCDC. The Board was heartening by their generosity and support!

8.    The board did not meet in Executive Session.

Action taken via Electronic Vote:

On July 27, 2021, the board approved allowing American YouthWorks/ YouthBuild Austin to hire contractors of their choice for the 1611 W. 10th Street house. This matter was time-sensitive and could not wait until the August meeting.

Minutes from Finance & Operations Committee Meeting on August 12 2021

Attending: BJ Friedman, CCDC Treasurer, Paula Hern, and Mary Reed, CCDC President. Absent: Chris Thomas, CCDC Vice President

1. BJ explained that Linda Parsons with Prak Property Management (PPM) is now handling our bookkeeping and generating financial reports for the CCDC.

2. BJ reviewed the July financials that Linda Parsons had provided her so far. They are more detailed than we have seen in the past. BJ will ask Linda to pull out the data related to 1611 West 10th, the Haskell House renovations, and the OWANA projects because we plan on maintaining separate budgets for them.

3. BJ briefly reviewed our most recent audit noting that there were no negative findings.

4. Mary discussed the spreadsheet PPM put together outlining the exterior repairs needed at each CCDC property as well as issues with over-grown trees, vines and bushes. She noted that Brad Prak estimates addressing all of the problems will cost about $25,000 and most are the result of neglect for several years. Mary suggested that to save money, the CCDC board and other neighborhood volunteers can address some of the problems during a CCDC Volunteer Day. 

4. PPM has not inspected the interiors of our properties due to the uptick in COVID. We will receive a separate spreadsheet specifying what needs to be repaired or replaced once those inspections happen.

4. Mary reviewed the status of the CCDC’s three on-going projects:

• 1611 West 10th Street. Kim is taking the lead on managing this project and will serve as the liaison with the Austin Housing Finance Corporation and American Youth Works, among other things. For example, she will meet with James Delgado (AYW) to update the project budget.

• Haskell House repairs. The repairs are going to cost far more than the $46,452.00 Heritage Tourism Grant the CCDC received. Mary has had numerous meetings with Kim McKnight and others with PARD about the project and it appears that PARD will fund the amount of the project that exceeds the grant amount. She will be meeting with Kim et. al. again next week.

• OWANA-funded projects. Mary told the Committee members that Aubrey got a bid for adding second egresses at 1011 Charlotte. Unfortunately, the bid is really high: More than $64,000. We planned on funding this work and some other projects with the OWANA money we received -- about $52K. Now we are looking at a project that will exceed that amount and so we will not able to fund any of the other projects we had planned on paying for with the $52K.  Mary will ask PPM to get some bids for 1011 Charlotte to see if they can get a bid that is lower than $64K

5. Mary discussed the fact that the CCDC is probably going to experience a cash crunch in the coming months, which means that cash flow management will be critical. The situation we are in is the product of a three key factors – all of the deferred maintenance expenses we are facing, the fact that because of various delays, both 1611 and the HH projects are going to hit at the same time and both are reimbursement-based, and the cost of supplies and contractors has skyrocketed in recent months. We will probably have to tap our LOC to help juggle our financial obligations. Mary also noted that although our money market balance looks healthy, only about $13,000 of it is not earmarked for something specific.

6. Committee members discussed how to get board members to become more actively involved in the management of the CCDC rather than just attending board meetings. Mary noted that she would like everyone to read the documents they receive prior to each meeting and ask questions about anything they don’t understand, suggest solutions, etc. To date, BJ, Kim and Mary have been the most involved board members, but they don’t have all of the answers and to them being on the board lately has felt almost like a part time job even though they are volunteers like everyone else.

No one had any real solutions about how to increase engagement although Paula suggested delegating more although that can be problematic. She also said that it would be nice to know something about each of our tenants so they are more than just addresses.

 

1611 W. 10th Street Progress Report                                                          August 17, 2021

General Issues

·      We’re experiencing positive working relationships with David Clauss and James Delgado with American YouthWorks/YouthBuild Austin, and with Sherry Cardino, our grant manager with the Austin Housing Finance Corporation/City of Austin. All are supportive and responsive.

·      Mary, BJ, and Kim are working to determine the best way to internally manage this project—in terms of approving/processing invoices, communicating with and reporting to AHFC/COA, etc. We’re learning through trial and error, but are meeting required reporting deadlines and getting the bills paid

·      We’re getting closer and closer to getting our required Purchase Order from the COA. Once that is in place, we can begin requesting reimbursement for approved expenses.

·      As a reminder on how this project will work, AHFC/COA will reimburse us for $77,950 of the total project cost (estimated to be $197,500.) Their reimbursement process is very specific as to which expenses can be reimbursed and when. AYW/YBA is operating as our General Contractor, but CCDC is responsible for all expenses upfront. Because of the reimbursement requirement, cash management may become an issue down the line. But we have a healthy reserve set aside in our Frost Money Market account ($83,147—former HomeBase loan) and there is also our line of credit at Frost that we can rely on if needed.

·      Getting a handle on the 1611 budget is proving to be a challenge. Kim is continuing to work with David and James on this. Additionally, with construction-related cost increases in the 2 years since the budget was created and approved, there’s a general concern. James is beginning to secure bids which will help us determine potential impact.

June and July Progress

·      American YouthWorks established the building footprint with string lines; removed trees that were in the way

·      Foundation contractor began work (purchasing materials, heavy equipment rental, site work to establish building pad)

·      AYW installed required silt fence.

·      Pre-construction environmental review completed.

·      American YouthWorks (AYW) secured builders risk insurance for the project.

·      The foundation contractor worked on forms for the slab.

·      Plumbing, electrical, and HVAC subcontractors have been hired.

·      The project passed Layout Inspection. (The next inspection will happen prior to pouring contract, on track to happen at the end of August.)

·      Site sign has been ordered to inform the neighborhood that the house is a joint project of the CCDC, AHFC, City of Austin, and the AYW.

·      Water Tap permit has been obtained. 

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