PUBLIC HEARING MINUTES
SEPTEMBER 24, 2001
COUNCIL CHAMBERS
7:30 P.M.
PURPOSE: TO RECEIVE CITIZEN INPUT ON AN APPROPRIATION OF $5,000 FROM CAPITAL AND NON-RECURRING EXPENDITURE ACCOUNT TO PAY FOR CONSULTING SERVICES BY THE CONNECTICUT HOUSING INVESTMENT FUND, INC. (CHIF)
The Public Hearing was called to order at 7:35 p.m. The Clerk of the Council read the Call of the Meeting (copy attached). The following Town Council Members were present: Deputy Mayor Havens; and Councillors Burnham, Delnicki, Fine, Pelkey, and Streeter. (Mayor Lassman Fisher, Councillor Aman and Councillor Williams were absent.) Also present was own Manager Matthew B. Galligan. (Town Attorney Barry Guliano was absent.)
There were approximately five (5) people in the audience.
Town Manager Matthew Galligan began his report by giving a brief history on this subject. He said that for some time the Housing Authority has had a Building Committee looking into a project involving congregate care housing as presently exists in (i.e.) Glastonbury for elderly and seniors not necessarily in need of a nursing home, but would only require some assistance during the day.
When the process began, according to Mr. Galligan, the Town worked with Metro Realty trying to develop 75 units which have already been approved by the Town s Planning and Zoning Commission. These particular units, he said, are strictly rental units; and, he continued, there are already 350 applicants from seniors who wished to get into those units.
What was being asked for this evening, the Town Manager said, was basically a contractual relationship between the Town and The Connecticut Housing Investment Fund, or CHIF. CHIF, according to Mr. Galligan, is an organization that provides financing and contractual services for Housing Authorities, local development authorities in providing affordable housing for low-income residents as well as seniors. Here in South Windsor, he said, their goal is looking for a congregate care- type facility for seniors.
MINUTES
Public Hearing Appropriation for Consulting Services for
South Windsor Housing Authority
Page 2
September 24, 2001
Mr. Galligan said that the contract being discussed this evening would provide the monies needed to seek Requests for Proposal from developers who are in the business of putting this type of program together, and moving it forward.
The Housing Authority originally received a $15,000 planning Grant from Community Development Small Cities, Mr. Galligan reported. A report followed in November of 1999 which outlined the parcel at Oakland and Foster Roads given to the Town by the Watson family, with the proviso that the property be used for Senior Housing. A site analysis has been done, including field and soil conditions, and the conclusion reached that the west side was clearly an inexpensive site to develop; and, that some of the materials that would be taken out of the site could be used for fill and sand and gravel for other areas.
The Town Manager reported that the original budget on the construction cost was $4.9 million which included $3.8 million for the building (with brick siding); site work was $300,000; full basement for $78,000; shingles and elevator - $200,000; dining room equipment - $15,000; kitchen equipment - $25,000; and a contingency of 10%. Additional construction costs in addition to the foregoing would be for concrete testing and building permits of $50,000; design architect - a fee of 7.9%; A-2 survey work; Clerk of the Works, contractual service (legal and accounting) all adding up to project cost for 44 units of $5.5 million.
He and the Housing Authority have also spoken to DECD and several State agencies about an ongoing pilot program with five other communities who had applied for Grants. Nursing Home care, he said, has been determined to be a very expensive choice especially when there are people who do not need that level of care but have no other place to go.
CHIF, according to the Town Manager, will assist the Town in evaluating project costs; evaluate the developers, and process Requests for Proposal. After speaking with DECD, Mr. Galligan said he learned that out of the five people who submitted applications for a Grant, they are now down to two (2) because of the operating costs involved. CHIF, he continued, would try to help the Town develop criteria such as debt cost, operating costs, revenues received from outside services and what the bottom price will be to the residents. He pointed out that these would be residents who did not have large incomes; therefore, an attempt would be made to keep the cost under $1,000/month to provide these services.
MINUTES
Public Hearing Appropriation for Consulting Services for
South Windsor Housing Authority
Page 3
September 24, 2001
What was being recommended this evening, Mr. Galligan stated, is that the Town enter into a contract with CHIF an agency with great experience, and a CEO with a tremendous amount of experience putting these projects together. The contract being referred to this evening, he said, would cost approximately $3,000; however, Mr. Galligan felt it would be prudent to have some additional contingency funds to use for testing, etc. Originally, he said, $50,000 had been budgeted in Capital and Non-Recurring Expenditures only $5,000 was being requested for now.
He said that he would get back to Council following CHIF s findings to fill the Members in on project and operating costs. He also told the Town Council that Janet Prior (Executive Director of Housing for the Elderly) wanted to run this program herself and have control over its operation. Mr. Galligan felt, however, that following his discussions with DECD, he learned that the Grant funding and the funds for operating costs may not continue to sustain this project.
The Town Manager s suggestion, therefore, was that the Council not only look at the Housing Authority operating this program itself but, that the Town go into the marketplace of developers who do this for a living, get Section 202 funding, and who have contacts with contractors who build these types of facilities. He then recommended that the Authority contract with a developer to build it as a turnkey operation with the Housing Authority creating a Board to oversee the developer to make certain they were following the guidelines.
Deputy Mayor Havens asked if he was right in assuming that this was a private contracting firm who would be evaluating the needs and costs for this type of housing. He also asked if it was not so that this type of project was not comparable to Flax Hill or The Elms. Mr. Galligan replied that it was indeed a private contracting firm who would also be charged with making recommendations. He also confirmed that it was not similar to Flax Hill and The Elms.
Since this was to be built on the Watson property, Deputy Mayor Havens said he assumed the developer would pay the Town for the land use. Mr. Galligan agreed. The Deputy Mayor then asked the Town Manager if he anticipated the Town incurring any additional costs. Mr. Galligan replied that the Town would incur no additional cost.
MINUTES
Public Hearing Appropriation for Consulting Services for
South Windsor Housing Authority
Page 4
September 24, 2001
Explaining what prior year practice has been, Mr. Galligan stated that the Town always came up with the first $100,000 to get the project started spreading it over two years: $50,000 the first year; and $50,000 the second year. After that, he said, there should be no additional cost to the Town. The Town, he continued, has to be very cautions how this project is funded because the Town cannot contribute to the Housing Authority that this is a project that has to be funded totally by revenues and is self sufficient. It may not be done, he said, with General Fund dollars.
Councillor Fine had questions regarding the level of service. Mr. Galligan did, in answer to her question, confirm that it was a long term facility. She then asked what the difference was between what was being proposed here, and (for instance) Summerville. Mr. Galligan explained the difference in detail, but which, in summary, was that the project being proposed was more independent living.
Councillor Pelkey expressed his feelings that more of this type of housing was needed.
The Deputy Mayor then asked for a straw vote on the following:
All those in favor of appropriating the
Requested $5,000 for a consultant 2
All those opposed 0
The Public Hearing was closed at 7:50 p.m.
Respectfully submitted,
Patricia R. Brown
Clerk of the Council
| 
