Peoria Housing Authority Regular Monthly Meeting Of the Board of Commissioners Monday, March 28, 2011 4:30 P.M.

Minutes CALL TO ORDER Chair Richard Zuckerman called to order the regular meeting of the Peoria Housin g Authority Board of Commissioners at 4:35 p.m. on Monday, March 28, 2011 in Adm inistration Building, Multi Purpose Room, 100 S. Richard Pryor Place, Peoria, Il linois followed by the Pledge of Allegiance and a moment of Silence. ROLL CALL A roll call of the commissioners included the following persons present: Chair R ichard, Zuckerman; Vice-Chair, Robert McQuirter; Treasurer, Ken Zika; Secretary, Aurthur Perkins; and Commissioner Carl Cannon. STAFF PRESENT Chief Executive Officer, Brenda Coates; Development/Asset Management Manager, Lo ri Frampton; Modernization/Development/Asset Management Director, Yvonne Long; I nterim Chief Financial Officer, Danette Snopek; Section 8 Director, Elizabeth Le wis; Community Relations Manager, Meghan Lundeen; Human Resource Manager, Julie Taylor; PHA Attorney, Brian Mooty; and other staff members of the Peoria Housing Authority. PRESENTATIONS Project Labor Agreement Martin Helfers, ED, West Central Illinois Building Const ruction Trades Council Mr. Helfers introduced himself as the Executive Director of the West Central Ill inois Building Construction Trades Council. He indicated that the Council repre sents 17,000 union construction professionals across 13 counties for West Centra l Illinois. He gave a presentation to the Board about the benefits of Project L abor Agreements (PLA), which provides the customer with a guarantee that histori cally the project would come in on time and on budget. The companies that bid t he work and the apprenticeship program is in place, and approved by the Bureau o f Apprenticeship Training Standards, which means that under the training standar ds they are investing money back into the community, and training the next gener ation of construction professionals. On the non-union side of the program, they could not offer those types of programs. He stated that several different studies have been completed from the Economic P olicy Institute (EPI) that can be accessed on the Internet about successful proj ects that have been brought in on time and on budget with the use of the PLA. S everal other benefits in having a signed PLA, is that they insure that you have head of household type caliber job for the people who pay taxes in the community . It also helps insure local workers on local projects. He explained that when a contractor comes to town with their workers, for every 7 dollars that they ea rn, 6 dollars goes back with the contractor and 1 dollar stays in Peoria. If th ey would employ local workers, 7 dollars stay in the local community. PLAs also

provide local opportunities for local people. He stated that one thing that is occurring in our industry is the baby boomer era, which he is one of, a Steamfitte r by trade. There are approximately 425 active steamfitters out of the Peoria l ocal. One-hundred and seventy of those members will be eligible for retirement in the next 5 years, a tremendous movement of high paying highly skilled employe es out of the work force. That opens up opportunities for others to apply. He stated that in the next 5-10 years, a swing would occur in the average number of locals throughout the building trades. Therefore, they make presentations to h igh school seniors. They are informed that they can get into the trades in the next 5-10 years and learn a skilled trade. He responded to questions that reg arding PLAs explaining that when a contractor signs a PLA for a contract, the tra des are able to work on the project along with others hired from the employment office. Upon completion of the contract, the contractor will be eligible to bec ome a local bargaining agreement contractor/signatory contractor, and then four or five of our members will become members of that organization. This builds th e market shares not only throughout the community but also in this area where th ere is a need for minority contractors. Discussion followed regarding projects completed in the Peoria area that had signed PLAs and MBE/WBE participation. Com missioner Cannon informed Mr. Helfner that presently, there is a young man in th e room that received his GED that he might want to talk with him. There being no other discussion about Project Labor Agreements, Chair Zuckerman t hanked Mr. Helfers for making the presentation to the Board. General Education Graduates Hedy Elliott-Gardner Hedy Elliott-Gardner presented to the Board one of her latest GED graduates, a T aft Homes resident who resides with his mother. She stated that he came in to t he class in late December 2010 and from day one, she considered him a super star . He graduated in February 2011 with a score of 277. She stated to pass the GE D you need 225 points to pass. There are a number of tests that an individual h as to pass to get through the process for mathematics. She stated that writing is the most difficult to complete because you have to know a number of concepts. She indicated that if you read well you would do fine on science, reading, and social studies. The writing, essay, and the math would require a tester would have to know 50 concepts. Mrs. Gardner stated that the test would change in 2012. They are adding trigono metry. The test is a seven and one half hour test that does not include the con stitution. This young man came to all of the classes at all sites. He was very dedicated to the program and was always there. He completed a two credit hour course through Illinois Central College, a study skills class, received a certif icate, and showed up for every class on time. She praised the young man for his efforts in receiving financial aid. He is considering two different programs a t Illinois Central College or going away for college, possibly Western Illinois University. Mrs. Gardner also commended his mother, who has been equally dedica ted to the program. Chair Zuckerman commended and congratulated both mother and son on their achieve ment and wished them well in their endeavor. Discussion followed about scholars hips and the Pell Grant, program cuts and fund for the GED program. Commissione r Cannon requested to be on the committee to find ways to keep the program going . Meghan Lundeen, Community Relations/Special Project Manager stated that she pres ented a business plan to the Mayors office, which resulted in Illinois Central Co llege offering their assistance to fund the program. They planted the seed with ICC to grow the program into a full time partnership. She stated that she is l ooking at ways for the RiverValley Foundation to step in and make the connection where ICC could not. Discussion followed about part-time hiring at ICC and Dis

trict 150 budget cuts. Commissioner Cannon announced that Ms. Elliott-Gardner was chosen as the Elite Ou treach Youth Teacher of the Year. She will be formally recognized at a May cerem ony. Mrs. Elliott-Gardner stated that she will be working in Haiti at the Child rens Clinic with the treatment of children and working with the mothers on literac y skills for a couple of weeks. The Board congratulated Mrs. Elliott-Gardner for all of her professional work an d dedication to the program. APPROVAL OF MINUTES FROM LAST MEETING Chair Zuckerman asked for any corrections to the minutes of the Working Policy S ession, February 16 and the Annual and Regular Monthly Meeting on February 23, 2 011. There being no correction, Chair Zuckerman entertained a motion to accept and approve the minutes as submitted. Commissioner Cannon made the motion to ap prove the minutes as recorded and Commissioner Perkins seconded the motion. A r oll call of the Commissioners indicated the following: Ayes: Zuckerman, McQuirter, Zika, Perkins, and Cannon. Nays: None. Motion carried. CONSENT AGENDA AND RESOLUTIONS (ACTION ITEMS) Consent Agenda Chair Richard Zuckerman asked for the removal of any items from the Consent Agen da for further discussion, which consists of the Finance, Section 8, and Operati ng Reports. There being none, Chair Zuckerman entertained a motion to approve t he Consent Agenda as submitted. Commissioner Zika made the motion to approve the Consent Agenda as s ubmitted. Commissioner Cannon seconded the motion. A roll call of the Commissi oners indicated the following: Ayes: Zuckerman, McQuirter, Zika, Perkins, and Cannon. Nays: None. Motion carried. Resolutions #AR012411-02 Revision to the FY 2011 Public Housing Operating Budget

Danette Snopek, Interim Chief Financial Officer informed the Board that Resoluti on #AR012411-02 was brought to the Board for approval at the January 2011 Board meeting; it was tabled for more discussion. Chair Zuckerman entertained a motion to remove Resolution #AR012411-02 off the t able for discussion and approval. Commissioner Zika made the motion to remove t he resolution from the table for discussion. Commissioner Perkins seconded the motion. A roll call of the Commissioners indicated the following: Ayes: Zuckerman, McQuirter, Zika, Perkins, and Cannon. Nays: None. Motion carried. Commissioner Williams entered the meeting. Chair Zuckerman asked for any discussion regarding the revision to the Public Ho using Operating budget. There being none, Chair Zuckerman entertained a motion to approve Resolution #AR012411-02 Revision to the FY 2011 Public Housing Operat ing Budgets. Commissioner Perkins made the motion to approve the revisions to t he Public Housing Operating Budgets for the FY 2011. Commissioner Zika seconded the motion. A roll call of the Commissioners indicated the following: Ayes: Zuckerman, McQuirter, Zika, Perkins, Cannon, and Williams.

Nays:

None. Motion carried.

#AR032811-01 Disposition of Computer Monitors, Printers, and Various Obsolete Computer Equipment Danette Snopek, Interim Chief Financial Officer informed the Board that the Admi nistration is requesting their approval to dispose of computer monitors, printer s and various obsolete equipment, that was purchased between 1995 and 2005 that eventually depreciated. The cost for the items are as follows: Estimated Cost Total 27 Computer Monitors $3,679.83 7 Printers $1,238.46 1 Switch Board $ 400.00 3 Battery Backup Devices $1,500.00 1 TV/VCR Combo $ 150.00 1 VCR $ 80.00 $7,048.29

She informed the Board that due to recent measures of discarding obsolete items, the items are out of commission by todays technological standards and sitting in storage due to the purchase of updated equipment last year. There is no need t o keep the equipment when it could benefit other companies by disassembling the equipment and reusing the spare parts. She stated that the Administration inten ds to contract with a company to remove the items from storage and use them as t hey see fit. Therefore, the Administration is recommending the approval of Reso lution #AR032811-01 to dispose of the computer equipment. Discussion followed a bout disposing of the equipment to other companies such as the computer fair hel d this weekend. There being no other discussion, Chair Zuckerman entertained a motion to approve Resolution #AR032811-01 as submitted. Commissioner Cannon made the motion to a pprove Resolution #AR032811-01 to dispose of the obsolete computer equipment. C ommissioner Williams seconded the motion. A roll call of the Commissioners indi cated the following: Ayes: Zuckerman, McQuirter, Zika, Perkins, Cannon, and Williams. Nays: None. Motion carried. #AR032811-02 Approval to Post an Amendment to the FY 2010-2014 Five Year Agen cy Plan and FY 2011 Annual Plan for a 45 Day Comment Period Yvonne Long, Director of Modernization and Development informed the Board that t he Administration is requesting approval to post a proposed amendment to the 201 0-2014 Five Year Agency Plan and 2011 Annual Plan that includes the utilization of the Capital Fund Financing Program option. The housing authority is required to post the amendment to the plan for a 45-day comment period. When the Admini stration requested the previous amendment to the 2010-2014 Five Year and FY 2011 Annual Plan, included was diverse funding opportunities that could be available under Choice Neighborhoods for leveraging sources. At that time, the PHA did n ot foresee the possibility of using the Capital Fund Financing Program (CFFP). The program is part of the requirement of the annual plan for the development ap proval process. Staff has spoken with our HUD Representatives; they have recomm ended looking into the CFFP as an option for Harrison Homes Phase III. The Admi nistration is recommending specifically referencing the CFFP as a potential sour ce of leveraging for that program and to the utilization of the program as a ple dge of future capital fund appropriations, including replacement-housing funds t hat must be approved by HUD Headquarters, Washington, DC. Ms. Long recommended the approval of Resolution #AR032811-02 to allow the Admini stration to post the proposed modifications of the plan for 45-day comment perio

d. There being no discussion, Chair Zuckerman entertained a motion to approve Resol ution #AR032811-02 to post the amendment to the 2010-2014 Five Year Agency Plan and 2011 Annual Plan for a 45-day comment period to include the utilization of t he Capital Fund Financing Program as a source of leveraging for the redevelopmen t of Harrison Homes Phase III. Commissioner Perkins made the motion to approve Resolution #AR032811-02. Commissioner McQuirter seconded the motion. A roll ca ll of the Commissioners indicated the following: Ayes: Zuckerman, McQuirter, Zika, Perkins, Cannon, and Williams. Nays: None. Motion carried. OLD BUSINESS Public Housing Assessment System (PHAS) Financial Indicators FYE December 31, 20 10 Danette Snopek informed the Board that in response to the Public Housing Assessm ent System Financial Indicator memo presented in February board packet, the Boar d would find the revised memo with the scores that the Housing Authority will re ceive for the financial sub-indicators 5 and 6 that include: Sub-indicator 5 Expense Management/Energy Consumption, which measures the abilit y to maintain an expense ratio at a reasonable relative level to our peers. The maximum points a PHA can receive in this category is 1.5 points. Ms. Snopek informed the Board that the housing authority would receive the full 1.5 points in this category for 2010. Sub-indicator 6 Net Income or Loss Divided by Expendable Fund Balance, which mea sures the effect of current years operations on existing reserves. The maximum p oints a PHA can receive in this category is 1.5 points. Ms. Snopek informed the Board that the housing authority would receive the full 1.5 points in this category for the FY 2010. Mrs. Coates asked about the Occupancy Loss sub-indicator as questioned at the la st meeting. Ms. Snopek answered that both she spoke with the HABCO Auditors. S he stated that the modernization or casualty units do not count against us based on the 573 units for 2010 of the four AMPS and the units taken out of total cou nt. She informed the Board that the housing authority received a score of 4.5 f or sub-indicator number 4, which measures the housing authoritys ability to lease up units and maximize rental income. The maximum points a PHA can receive in t his category is 4.5 points in this sub-indicator. Discussion took place regardi ng the previous number of points recorded for this indicator, which was 0, because after a discussion with the auditors the units were all offline in Public Housin g Information Center (PIC), which should have been removed last year. Staff ind icated that there was a discussion with our REAC Analyst and she indicated that as long as our unit numbers match up in PIC we should receive the points for the public housing units only. The Board determined that the scores in 2009 could have been different if we had known not to consider the modernization or casualt y units in the unit count for this sub-indicator. Ms. Snopek stated that based on unaudited information, the total score for 2010 will be 26.33 for the financi al indicator. Harrison Homes Phase III Update Yvonne Long, Modernization/Development/Asset Management Director informed the Bo ard that a small development crew is working on Harrison Homes Phase III team. We have been very grateful to have the assistance of the Ad-hoc Board representa

tive, Commissioner Zika on the redevelopment planning. Staff has been working w ith the local HUD Field Office that also brought in a representative from HUD He adquarters to talk about the non-federal leveraging source that is required for the project. For Harrison Homes Phase III, it was reported that there was an in itial tax credit application submitted that was denied. Staff appealed the deci sion, which was denied again. She stated that this financing option is not avai lable to the housing authority. Staff will have to find alternative resources t o obtain 1.2 million dollars leveraging source against our three and one-half mi llion dollar second increment replacement housing funds. The housing authority proposes to have approximately a 5.3 million dollar constr uction budget to build twenty-seven units in Phase III. Ms. Long stated that th e funds would include the second increment funds of approximately 3.5 million do llars, the non-federal leveraging funds of approximately 1.2 million dollars and approximately $650,000 in restricted net assets, funds received from the School District for the sale of the 22-acres of land at IL-32A and IL-3-3. The Planne d Unit Development will go before the City Council in the month of April for app roval. It requires a second approval for the subsequent phase. Staff is working now to research the Capital Fund Financing Program as an option for the non-fed eral leveraging source to close the project and receive approval for our develop ment proposal through the local HUD Field Office. The housing authority would n eed HUD approval for the CFFP in order to have our grants obligated by its deadl ine date in September of this year. PHA Website Update Meghan Lundeen, Public Relations Manager/Special Project Manager informed the Bo ard that Tom Larson was able to produce mug shots of people on the trespass list . His recommendations were recent additions to the trespass list and recent arr ests posted on the list and the website. The information has been live on the w ebsite as of two days ago. Shortly after the board meeting, they were printed a nd available at the sites as well as the Administration Building. She stated th at they decided to update the site no more than once a month unless there is som e massive problem in the summer that would require that we update the site more often. We will add mug shots as they become available but when we receive new m ug shots and add them to the website, others may be removed from the list. She went on to explain the process of updating the list that is very time consuming. Discussion followed about the residents passing information along about the tr espass list and people on the property that are not allowed. Taft Update Mrs. Coates informed the Board that the housing authority would be holding the s econd resident meeting on April 13, 2011 at 6:00 p.m. In addition, there will b e a Taft Working Group meeting held during the day just prior to the resident me eting. That meeting will include some commissioners, PHA staff, and other offic ials. Although, a good number of residents attended the first meeting, we asked those residents to reach out to other residents and inform them about the meeti ng to continue to receive feedback from the residents. We thought of holding th e meeting at RiverPlex, but some residents expressed that they were not comforta ble going to the site. We were thinking that we might receive more community in put by having the meeting at a neutral location. It was a little disappointing with the attendance from the community. With the information that went out, she indicated that she thought that she would see more community participation. We are receiving indirect comments about Taft, but when you ask the community part icipate in a meeting to receive their feedback, we do not see a lot of cooperati on from the community. Discussion followed about getting more community partici pation to attend the meeting. Commissioner Zika expressed his surprise of the number of residents that attende d the meeting and how they felt about their community. He expressed that it was

heartwarming to see how much the residents cared about their community and staf f. He stated that the other observation is that Mrs. Coates was being kind abou t her comments about her disappointment about the community and City participati on. He stated that he would be a little blunt about no one from the City in att endance. He stated that it was very disappointing that there are five or six pe ople on the task force and none of them attended the resident meeting. Ms. Lundeen stated that there was one person from the City Planning Department t hat e-mailed and said that he could not attend. Chair Zuckerman stated that he appreciated those Commissioners attending the mee ting along with the staff. NEW BUSINESS Asset Management Monthly Project Performance Reports Ms. Long informed the Board that in a memorandum included with the packet it des cribes the new monthly performance report that the Asset Managers are utilizing to report all of the indicators for PHAS; occupancy, work orders, unit turnaroun d, etc. The Administration is proposing that these reports become a part of the consent agenda every month to provide a snap shot of the AMPs performance. The report is part of the work that was completed with National Facilities Consultan t (NFC) as the Asset Management Conversion Review. They d completed an assessme nt of our current compliance with asset management conversion. We took their re commendations and looked at created a monthly report that was easier to use. Sh e reviewed with the Board the descriptive items within the report. She indicate d that the report would help the Asset Managers to monitor their site performanc e on a monthly basis. Chair Zuckerman indicated that if there were any specific questions that need an swering regarding the report, someone would need to attend to respond. Mrs. Coa tes stated that Mrs. Frampton would be available to respond to any questions tha t the Board may have. Commissioner Williams asked if the intent of the report is to have each Asset Ma nager work on areas that are problems to improve their performance. Staff confi rmed that this is the intent of the report; tenant accounts receivable in partic ular to have an action plan of the concerns and quickly address them. Commissioner Zika asked if the information is manually inputted into the documen t or is the information pulled from some other data. Ms. Long stated that it is manual in the sense that you are taking the data provided and inputting it into the report. The information is not populated from some other source. Commissi oner Zika expressed that the information could be used as a comparable to improv ement to each month AMPs performance. He asked about the process for following u p on comments and notes included in the report. Ms. Long explained the Asset Ma nagers completed the reports each month and submit them to their supervisor. If there are any issues, the supervisor will bring those to her and will go to the Executive Office for direction. Commissioner Zika expressed that according to the comments in the reports, the A sset Managers are not comfortable with completing the documents. Mrs. Coates stated although this is a great report, we as an agency need to look at ways to make it easier for the Asset Managers. The report is difficult beca use it takes a lot of time. The problem that we have is we are still documentin g on from oldest software that is available called wintegrate an old DOS faced s oftware. Something needs to be done about a plan to move forward to purchase th e software for the Elite system.

Public Housing Assessment System (PHAS) Interim Rule Yvonne Long stated that the Public Housing Assessment System Interim Rule slide show was updated on March 17. It is available on the HUD website for review. T he management operations indicator breaks out the detail for how we will be scor ed under MASS. There is a slide show for Physical Assessment Sub-System (PASS), Management Assessment Sub-System (MASS), and Financial Assessment Sub-System (F ASS) for your review at your leisure. Ms. Long reviewed some of the changes to the PHAS indicators based on the slide show dated February 18, 2011, which would require updated training and the final rule coming out to create an assessment tool to monitor performance. CHIEF EXECUTIVE OFFICER COMMENTS Inspections Mrs. Coates announced the inspections would be starting the week of April 18th f or Taft Homes, Harrison Homes, and Scattered Sites. The housing authority has n ot been notified of the inspection dates for Sterling. She stated that Sterling might be assigned to another contractor. HUD Contracted Accounting Firm Deloitte & Touche Mrs. Coates also announced the HUD contracted with the accounting firm Deloitte & Touche. They will be in house to conduct a review on ARRA and the Operating F und the week of April 18th. BOARD COMMENTS City Council and the Senior Citizen Project Chair Zuckerman stated that because he is a member of the Peoria Opportunities F oundation, he was very disheartened on the City Council voting down the senior c itizen project. He stated that part of the problem is that they did not lay the ir groundwork early enough, but they were on a short timeline. They did not get to the neighbors soon enough. Discussion followed. Annual Report Commissioner McQuirter congratulated Meghan Lundeen on the job well done to the annual report. He stated it was very nicely done. COMMUNITY COMMENTS Chair Zuckerman stated that because we are all a community, he would like to cha nge Public and Resident Comments to Community Comments because it more amicably describes that we are invested in the community. Willie Anderson Mr. Anderson addressed his concern about not receiving a shed for his unit at Ri verWest South and a no trespassing sign on the property. Mrs. Lundeen explained to him the difference between the no trespass list and a no trespass sign. She asked if he was requesting a no trespass sign on the property. He indicated th at he was requesting a sign to post at the site. ADJOURNMENT TO EXECUTIVE SESSION There being no other items for discussion, Chair Richard Zuckerman entertained a

motion to adjourn the Regular Monthly Meeting of the Board of Commissioners for March 28, 2011 and move into Executive Session for the purpose of discussing Pe rsonnel Issues, Litigation, Collective Bargaining Agreements and Real Estate pur chase. Commissioner Perkins made the motion to move into Executive Session. Co mmissioner Zika seconded the motion. A roll call of the Commissioner has indica ted the following: Ayes: Zuckerman, McQuirter, Zika, Perkins, Williams, and Cannon. Nays: None. Motion carried. Commissioner Cannon exited the meeting at 5:30 p.m. ADJOURNMENT OF REGULAR MEETING There being no other items for discussion, Chair Richard Zuckerman entertained a motion to adjourn the Executive Session, move back into the Regular Meeting of the Board of Commissioners, and adjourn the meeting for Monday March 28, 2011. Commissioner Perkins made the motion to move out of the Executive Session and ba ck to the regular session for the purpose to adjourn the meeting for Monday, Mar ch 28, 2011. Commissioner Zika seconded the motion. A roll call of the Commiss ioner has indicated the following: Ayes: Zuckerman, McQuirter, Zika, Perkins, and Williams. Nays: None. Motion carried. The meeting adjourned at 6:00 p.m. Respectfully submitted by PEORIA HOUSING AUTHORITY Aurthur Perkins Board Secretary