Minutes, September 21, 2021
Minutes from the September 21, 2021 Clarksville CDC Monthly Meeting
Board members in attendance: Aubrey Carter, Aly Byatt, BJ Friedman, Malcolm Greenstein, Paula Hern, Kim O’Brien, Mary Reed, Gregory Tran.
Others in attendance: Brad Prak and Rene Gonzalez, Prak Property Management (PPM)
1. On a motion by Aly, seconded by Paula, the minutes from the August 17, 2021 monthly board were approved with corrections.
2. BJ presented the monthly financial reports prepared by PPM. All rents are current. Items of interest include: postage expense was for annual renewal of the post office box; audit expense included the preparation of CCDC’s 990; bank service charges were related to tenants using Paypal to pay rent—Brad is looking into another method for tenants to pay that will avoid these charges; maintenance contracts include a $4,475 expense to repair the stairs at W. 10th Street. We operated at a $9,265 deficit in August. A portion of this ($4,092) are construction expenses at 1611 W. 10th Street. These costs will be covered by funds in our money market account designated for this project and some may be reimbursable from our Austin Housing Finance Corporation (AHFC) grant. Linda Parsons at PPM is working on the best way to show these expenses moving forward. In response to Paula’s question about the janitorial contract expense ($110) Brad responded it was a reimbursement to PPM for work done. Extermination expenses are for rodent control at 2 properties.
The Finance and Operations Committee did not meet this month.
3. Brad Prak, PPM, CCDC’s property manager, gave a report on the state of our properties and the impact it will have on our finances moving forward. PPM completed exterior inspections on all properties in July. Internal inspections are pending due to COVID concerns. Brad walked the board through a spreadsheet that details needed work. Some things apply to all locations, e.g., cleaning and repairing gutters and installing leaf guards, overgrown landscaping at all locations. Other items are specific to individual units.
PPM’s findings show that there is much deferred work that needs to be addressed. The work can be spread out, but the goal is to get caught up within 3 years. This will mean higher maintenance expenses over this period.
In response to a question by Paula regarding when we’ll know the complete picture, Brad said that interior inspections will begin in October. PPM staff have already noted some things while performing requesting maintenance (e.g., incomplete drywall repairs.) Emergency items will be addressed right away, other items will be added on the spreadsheet’s “to be done” list. Some items—missing smoke detectors—have already been addressed.
Brad detailed PPM’s pro-active approach to maintaining the properties. For example, PPM goes in every other month to test smoke detectors, carbon monoxide detectors, and exchange air filters.
PPM is reviewing all property and tenant files, ascertaining that income verifications are complete and accurate, and that we are charging the appropriate rents. The idea of moving one or more units to “market rates” in order to increase our income was discussed. All options will be considered. Brad is putting together a spreadsheet that looks at different scenarios. He will present it to the board when he has all questions answered.
In discussion, BJ brought up the fact that due to COVID, tenant incomes might be down which will cause annual certifications to decrease. Gregory pointed out that tenants have responsibilities they need to meet. Brad responded that we need to set our criteria and we need to be consistent in enforcement.
4. BJ presented the FY 2021-22 Budgets. For the first time, projects with outside revenue streams will have separate budgets.
Operating Budget: Includes all current CCDC properties, maintenance-related expenses at the Haskell House, and repair projects funded by OWANA/Home Base grant. The proposed budget shows a deficit of $15,000. Per the discussion outlined above in #3, we expect maintenance expenses to increase this year. There is potential savings in the OWANA/Home Base funded projects (see Item #5) which with OWANA’s approval, may be able to supplement some of the deferred maintenance costs.
1611 W. 10th Street: Includes projected expenses related to this new construction unit. A portion of this project is funded by a reimbursement grant from the City of Austin/AHFC; CCDC is responsible for the rest. This budget was developed 2 years ago—construction costs have increased since then. Project general contractor American YouthWorks (AYW) is in the process of collecting bids. When that is complete, this budget will be updated. There is a real concern that required funds will exceed what we have available. We will work with AYW to minimize costs where possible, and seek additional funding sources if needed.
Haskell House Repairs/Renovation: Includes projected expenses related to repairs/renovations at the Haskell House funded through a City of Austin Heritage Grant. This budget was developed with the best information available, but current costs exceed the grant received. As discussed below in #5, we continue to work with City officials to find ways to fund the completion of this project. The budget will be adjusted as additional information is ascertained.
CCDC is looking at a lean financial year, requiring the board to be vigilant and cost-conscious due to projected/expected deficits. Budget monitoring will be key, along with exploring additional income sources.
On a motion by Paula, seconded by Gregory, all budgets were approved.
5. Monthly property reports:
CCDC properties managed by Prak Property Management: information included in #2 and 3.
1611 W. 10th Street: Kim reported that we have received our Purchase Order from the City—required in order to receive reimbursement for approved expenses. She hopes to have a draw request submitted in early October. The following work took place in August: A temporary power pole was installed, permit has been issued, and power is in place at the site; the foundation contractor finished setting forms and digging beams. Aubrey asked if there are drawings he could look at because he has some questions regarding the foundation preparation. BJ will provide them to him.
Grant-funded repairs to the Haskell House: Mary continues to work with City Parks Department officials on this project. Costs have increased significantly since the Heritage Grant budget was prepared and the grant awarded. Parks is looking at ways to participate in funding.
Renovation projects funded by OWANA/Home Base funds: PPM obtained a second bid for the addition of two new egresses at 1011 Charlotte Street--$21,850, which is substantially less than the first bud. There will be additional costs associated with the project—services of a structural engineer and permitting—amounts unknown at this time, but the amount of this new bid means that we will have OWANA funds leftover. We had thought those funds would be needed to include an additional egress at 1821B Waterston, but we have learned that the unit’s current egress meets safety requirements and the addition is not needed. When all costs are known for 1011 Charlotte, the board can consult with PPM on how to allocate any leftover funds. Reallocation will be presented to OWANA.
6. Discussion of a CCDC Volunteer Day: We’re looking for a day in mid- to late-October for board members and community members to work on the exteriors of our properties. Aly volunteered to coordinate.
7. Under Other Business, Paula reported that there is $1300 in Parks Foundation Fund. The Parks Department plans to repaint lines for pickleball court and fix the splash pad.
8. The board did not meet in Executive Session.
Action taken via Electronic Vote:
On September 14, 2021, the board voted to authorized Kim O’Brien to sign an agreement with Texas Disposal Systems for the provision of a portable toilet at 1611 W. 10th for the duration of the construction project. CCDC’s Policies and Procedures require that contracts be signed by the board president or vice-president, unless otherwise designated by the board. This matter was time-sensitive and could not wait until the September meeting.