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Home My WebLink About01/22/2008WVRHA WHEAT RIDGE HOUSING AUTHORITY AGENDA January 22, 2008 CITY COUNCIL CHAMBERS 4:00 P.M. A. Call Meeting to Order B. Roll Call C. Approval of the Minutes: November 27, 2007 & January 8, 2008 D. Officers Reports E. Public Forum F. Unfinished Business 1. Discussion of implementation of special project G. New Business 1. Presentation byRebuilding Together 2. Authorization to hire Swanhorst & Company to perform Audit H. Other 1. Adjournment WHEAT RIDGE HOUSING AUTHORITY MINUTES January 8, 2008 A. CALL MEETING TO ORDER The meeting was called to order by Chair Brungardt at 4:00 p.m. in the City Council Chambers of the Wheat Ridge Municipal Building, 7500 Wadsworth Boulevard, Wheat Ridge, Colorado. B. ROLL CALL Authority members present: Cheryl Brungardt Kent Davis Kathy Nuanes Lena Rotola` Janice Thompson Others present: C. NEW BUSINESS Sally Payne, Executive Director Ryan Stachelski, Ecoziomic Development Specialist Henry Wehrdt, Construction Manager Larry Nelson, Cornerstone Realty Betty Maybin, Comer§tone Realty Curtis Gilmore, Wheat Ridge Foundation Brian Ojala, Entasis Group Aaron Ojala, Entasis Group Ron Abo, The Abo Group Ann Lazzeri, Secretary Proposal review of potential new housing project Chair Brungardt reported that Jefferson County requires a specified project before Community Development Block Grants (CDBG) can be awarded. The County has approved these funds to be used toward proposed renovation of the old Fruitdale School building into owner-occupied lofts. Ryan Stachelski addressed the two following questions that need answers before the Housing Authority could move forward with the project. Regarding the deed restriction which requires the property to be used for educational purposes, the city attorney has advised that the Housing Authority would need to condemn the property directly from the School District rather than Housing Authority Minutes - 1- January 8, 2008 from the Wheat Ridge Foundation. The School District has indicated they would be amenable to a friendly condemnation. Regarding cost of the project, two architects were invited to present proposals for renovation of the building. (A copy of the proposals are attached as addendums to the minutes.) • The Entasis Group - Mr. Stachelski introduced Aaron and Brian Ojala of the Entasis Group to review their design proposal. They described two designs including one for residential lofts only and the other for residential lofts with a retail component. They proposed thirteen,residential units. These would be one and two-bedroom units ranging in size from 650 square feet to 1,060 square feet. The units would have separate utilities, card reader entrances for security purposes, and small storage areas. They believed the structure to be very salvageable. The proposed plan allows for two parking spaces per residential unit and two parking spaces per retail unit. There is the possibility for carports or garages. In response to a question about the availability of adjacentproperty to the west, Mr. Stachelski stated that the property is presently too expensive. There is the possibility of a lot line adjustment for the school property which would add some parking area: Janice Thompson commented that adding commercial to thesesidential component would make it too crowded. Mr. 6tachelski explained that he askzd the architects to take a look at a retail scenario as a means to subsidize the cost of the building if necessary. Cheryl Brungardt commented that the Housing Authority's experience is that garages make a property more saleable: In response to a question froin Larry Nelson, Aaron and Brian reviewed several other projects they have been involved with including 26 units in Arvada. These units were priced for low to higher incomes. Housing Authority members were invited to tour some of their projects. Henry Wehrdt asked about structural soundness of the building. Aaron stated that the building seems to be very sound but would advise inspection by a structural engineer. He also explained that the $115 per square foot estimate mostly includes hard costs. He didn't know yet about water and sewer costs. He also noted that all the lower units would probably be handicapped accessible, however elevators would not be installed for the second floor. Cheryl Brungardt commented that she would like to see environmentally friendly (green) elements integrated into the plan. Janice Thompson commented that it is important to keep the historical integrity of the building when considering things such as solar panels. Housing Authority Minutes - 2- January 8, 2008 • Curtis Gilmore - Mr. Stachelski introduced Curtis Gilmore of the Wheat Ridge Foundation. Mr. Gilmore reported that Colorado Acts is very interested in renovating the building for use as a school of theater for home-schoolers, charter schools, etc. Colorado Acts has indicated they would make a$250,000 donation to the Foundation if they are allowed to have the building. If the property is not utilized by the Housing Authority and goes to Colorado Acts, the Foundation would reimburse the Housing Authority in the amount of $5,000 forproperty evaluation costs. He also commented that the reverter clause would not apply in this case because the building would be used as a school. In response to a question from Janice Mr. Gilmore stated that students pay school is also talking to banks about i son about Colorado Acts' funding, o attend Colorado Acts School. The to purchase the building. Janice Thompson stated that she wants the "Fruitdale"'name to be incorporated in whatever use the building may have. In response to a question from LEna Rotola, Mr. Gihnore explained that the school would be in operation year around: In response to a question from Cheryl Brungardt, Mr. Gilmore stated that the school has not yet looked at the parking situation. Juiice Thompson asked if the school would be a long term project. Mr. Gilmore replied that he believed it would be long-tenn since Colorado Acts has been in operation for thirteen years. He also stated that water and sewer taps far the building were transferred to the new school. • The Abo Group - Mr. Stachelski introduced Ron Abo to give his presentation on preliminary designs and costs for renovation of the building. Mr. Abo presented a history of his firm and a digital presentation of other projects designed by his firm. He stated that his firm does not do hazardous material investigation and would suggest having a Phase I study done. From his initial walk-through he suspected there may be some asbestos and maybe some lead paint. He was basing his estimates on 6 units per level, or a total of 12 residential units. Following the architects' presentations, there was discussion by the Authority. i ~ Housing Authority Minutes -3- January 8, 2008 Henry Wehrdt explained that there is a caveat with the $75,000 grant from the HOME grant program. The funds cannot be expended until approximately June of 2008 or dedicated until the contract is signed with the County. There is also an additional $37,500 remaining in home funds that could be redirected to this project. These funds could be used in determining the feasibility of the project. He also explained that this is not the type of project he is accustomed to working with and therefore it is best to involve an architect. Kathy Nuanes commented that she was previously unaware of the interest by Colorado Acts and suggested that the Housing Authority should have a dialogue with the Wheat Ridge Foundation and the neighborhood in an attempt to reach a decision as to the best use of the building and how it would best serve the community. She also asked for more information on "friendly condemnation." Mr. Stachelski read the city attorney's opinion about the condemnation. ICathy Nuanes asked that a copy of his opinion be included in the next Authority packet. Janice Thompson expressed concern about how the'adjacent property to the west might be developed. Lena Rotola commented that,good development could encourage other good development. Sally Payne commented that per the Fruitdale Subarea Plan, an overlay zone for 40' Avenue will be developed eventually to give some control over usage. Lena Rotola also expressed concern'about the neighborhood's negative reaction if another school is planned for the area. Kathy Nuanes requested Mr. Stachelski to determine the viability of the Colarado Acts proposal far discussion at the next Authority meeting. D. OTHER Lany Nelson reported that there is one unit left for sale at Park Side. It does include a garage. E. ADJOURNMENT It was moved by Kathy Nuanes and seconded by Kent Davis to adjourn the meeting at 6:09 p.m. The motion passed unanimously. Cheryl Brungardt, Chair Ann Lazzeri, Recarding Secretary Addendum: Copy of proposals from the Entasis Group and the Abo Group Housing Authority Minutes - 4- January 8, 2008 4 E ik " t;a4: S - i4=,- architects+buiiders g rrD u P. Architecture Design Fee Proposal 12/06/07 Client: clo: Ryan Stachelski Economic Development Specialist City of Wheat Ridge 7500 W. 29th Avenue Wheat Ridge, CO 80033 Architect: c/o: Brian Ojala, AIA NCARB Entasis Group, LLC 4952 Ward Road Wheat Ridge, CO 80033 Tel. 720-420-7242 Project Information: Project Narrative/ Summary: Ryan, We would like to approach this proposal differently than the previous proposals that we have written for past clients. We would like to present this proposal as a 3 phase-sequential exploration of design and architecture. We believe that this would save the city money and time if the project is broken down into phases. This would allow the City of Wheat Ridge to treat this proposal as a menu of options. 1216/2007 1 of4 Project Name: Fruitdale School Renovation 44'h Avenue 4ah ntza si4~ architects+builders g ro u p Phase 1 Scope of Work (assuming Wheat Ridge would have a preliminary Structural investigation) Under this first phase, Entasis Group will conduct a feasibility study on this project. We would explore/ design a new parking layout (for the Residential and Commercial portions), attempt to locate additional commercial building(s) along 441h and explore the existing school building by conceptually Iaying the maximum amount of possible dwellings units inside. We would introduce our Mechanical, Plumbing, Electrical, Roofing, Demolition (inside walls, not building) contractors to visit the project. This would allow an early synopsis and a clear understanding of the project. We would then understand all the major issues with the building at this stage. This phase would also include a preliminary cost analysis. Summary: COI1CBpt SItE PI811: (showing new possible layout of commercial building footprinf, parking for Residential and Commercial Preliminary Code Study: Site and Building Co17Cept L8y0ut in Existing Building: This would show circulation, exiting, handlcap accessibility, and unit bcation (no internal design on individual units in this phaSe) Introduce Sub-Contractors: MEP = Mechanical, Electrical, Plumbing, Roofing i.e.: Feasibility Study/Investigation Cost Analysis Preliminary Cost Estimating/ MEP feasibility study/investigation: $5000 Architectural Design Fee / Phase I: $14800 If the city of Wheat Ridge finds that the project is feasible and economical we would then move into a Phase II. Phase II Scope of Work This phase would be the Design Development Phase. This would include a finely tuned site plan, floor plans, elevations, preliminary material selections, and coordination with MEP consultants. Site Plan - Design Development Phase. Ploor Plans - Internal Unit Layouts Elevations - 4 Cad Drawings, 1 Rendering of Front "newly Renovated Facade" 1 Preliminary wail Section Introduce MEP Consultants - Prelim Design Material Investigations-Windows, Flooring, Walls, Ceiling, Finishes, Landscaping Detailed Cost EstimatinglBudgetingl and MEP feasibility studylinvestigation (Site and Existing building, no commercial buildings) 12/612007 Page 2 of 4 EElk ntasi4=,- architects+builders g ro u p Detailed Cost Analysis $6000 Architectural Design Fee / Phase II: $25000 Phase III Scope of Work We will take your entire project through architectural design and the county submittal process for fnal City Approval and final Building Department Approval. Entasis Group will coordinate all activities between the project and all sub-consultants such as mechanical, electrical, plumbing, traffc, lighting, structural and civil engineers and any other consultants required by the project. 1.Entitlements / City Submittal Coordination with civil and electrical engineering, and all pertinent requirements to obtain County approval for this development. 2. Construction Documents During this phase, the initial design is developed to a state of completion, ready for construction bidding and construction itself. Value engineering may be applied in the phase to ensure an efficient project and best use of all resources. This phase includes the production of construction documents new construction space plans, elevations, schedules, detaiis, and specifications. Ali construction documents will be reviewed for quality assurance, completion and proper coordination. We will also coordinate with structural and mechanicallelectrical engineers and integrate their drawings into our final document sets. This final set will be submitted to the building department for final approval of construction. Final Cost Estimating/ MEP feasibility study/investigation : $0 If Entasis Group is General Contractor MEP + Structural Engineer Design Contract (not part of this proposalJ Estimated but not inc/uded. $35000 Architectural Design Fee / Phase III: $25000 Construction Administration Throughout construction, Entasis Group will review shop drawings and submittals, respond to contractor questions (if Entasis Group is not the GC), review pay requests, provide field observation, complete the punch list, follow up on the punch list, and attend construction meetings. Architectural Construction Administration Fee / Phase III: $0 If Entasis Group is the general contractor $10,000 If Entasis Group is solely the architect. 12/6/2007 Page 3 of 4 ~ntasis archifects+builders g rou p Hourly Billing Rates Principal-In-Charge $ 95.00/hr Sr. ProjectArchitect $ 85.00/hr Project Manager $ 75.00/hr Field Superintendent $ 65.00/hr CAD Production $ 35.00/hr Entasis Group reserves the right to amend the billing rates should the work of this contract continue past January 1 of the year following execution of this agreement. Exclusions: Consultants other than Structural, MEP and Equipment related to scope outiined above Voice/data design specifications Artwork, accessory or plants cape specification or layout Post-Occupancy services after the punchlist Fire sprinkler design Professional services related to modifications/improvements to the base building other than specifically listed above Conditions of Services In addition to fees for services described above, for Client approved additional time and/or services that are supplementary to the scope of this Work Authorization, the owner agrees to reimburse Entasis Group on an hourly billing rate basis, or at a mutually agreed to fixed cost for additional services. After acceptance of this document, owner agrees to engage in the AIA 141 Architect/Owner contract. Please do not hesitate to contact me if you have any questions. Thank you for this opportunity. Sincerely, Brian Ojala, AIA NCARB Architect + Partner Entasis Group, LLC 1216/2007 Page 4 of 4 the abo group sustainable architecture December 12, 2007 Ryan Stachelski Economic Development Specialist City of Wheat Ridge 7500 W. 29th Avenue Wheat Ridge, CO 80033 Re: Fruitdale School Dear Ryan: 1660 wynkoop street suite 900 denver, colorado 80202 303-531-4990 ph 303-531-4998fax principals ronald k. abo, aia john w. priebe, aia The Abo Group, Inc. is very pleased to provide you and the City of Wheat Ridge Housing Authority with this proposal for professional design services. We understand that the City of Wheat Ridge and the Wheat Ridge Housing Authority wish to determine the feasibility of converting the historic Fruitdale School into residential use and to maximize the use of the remainder of the site for mixed use development. The following proposal is to provide services to develop a conceptual site plan indicating the number of dwelling units and area available for commercial or retail use and the required parking. Also included wiil be a conceptual cost estimate for construction. The following is a detailed scope of our services: Scope of Services 1. Meet with representatives of the City of Wheat Ridge and the Wheat Ridge Housing Authority on site to determine the goals and objective of the project. 2. Develop site plan alternatives to be presented to the City of Wheat Ridge and the Wheat Ridge Housing Authority. 3. Finalize a preferred conceptual aiternative site design that indicates the number and size of units in the historic school building and the placement, number and size of residential units, size of commercial/retail buildings, parking and open space. 4. Conceptual cost estimate of construction costs based on square footage costs. 5. Present a written and graphic report on the findings of the study effort. Compensation We propose to provide the above services for a lump sum price of Five Thousand Five Hundred and Sixty Dollars ($5,560.00) plus reimbursable expenses. Reimbursable expenses include: mileage, reproduction, copying, messenger service, computer plotting, and other incidental direct costs attributable to the project. An estimate of reimbursabie expenses for this project is approximately $500. [Name] December 10, 2007 Page 2 of 2 We are very enthusiastic about working with you, the City of Wheat Ridge, and the Wheat Ridge Housing Authority on developing this important trend setting project that not only preserves an important part of Wheat Ridge history, but enhances the economic development and vitality of the current community. Sincerely, The Abo Group, Inc. 41, Ronald K. Abo, AIA President MINUTES WHEAT RIDGE HOUSING AUTHORITY November 27, 2007 A. B. Janice Thompson Kent Davis Sally Payne, Deputy Director Dick MatEhews, Accountant Larry Nelson, Cornerstone Realty Betty Maybin, Cornerstone Realty Henry Wehrdt, Jefferson County Housing Authority Ryan Stachelski, Economic Development Specialist 7erry DiTullio, Mayor Kathy Field, Administrative Assistant C. APPROVAL OF MINUTES: October 23, 2007 It was moved by .Tanice Thompson and seconded by Lena Rotola to approve the minutes of October 23, 2007. The motion passed 3-0. D. OFFICERS REPORTS There were no officer reports. CALL MEETING TO ORDER The meeting was called to order by Chair Brungardt at 4:04 p.m. in the City Council Chambers of the Wheat Ridge Municipal Building, 7500 Wadsworth Boulevard, Wheat Ridge, Colorado. ROLL CALL Authority members present: Cheryl Brungardt Kathy Nuanes (arrived 4:10 p.m.) Lena Rotola Authority members absent: Ofliers present: E. PUBLIC FORUM There was no one present to address the Authority. F. UNFINISHED BUSINESS • Larry Nelson reported that the 41" Avenue property has closed. • The tenant at the Allison Court property will move out December 1, 2007. Henry Wehrdt will begin renovation after the property is vacated. • Larry Nelson reported that work is nearly coinplete on the Parfet property. Housing Authority Minutes - 1- November 27, 2007 G. NEW BUSINESS 1. 2. 3. Resolution 01-2007, Presentation & Approval of 2008 Budget Dick Matthews reviewed the Housing Authority's 2008 budget. There was no one from the public who wished to comment on the resolution. Following review and discussion by the Authority, it was moved by Lena Rotola and seconded by Kathy Nuanes to approve Resolution 01-2007, a resolution enacting a budget and appropriation for the year 2008 with an amendment to include $37,500 under "Other Income" for 2008. The motion carried 4-0. Certificate of At the time the Housing Authority was formed, all documents were signed with the exception of the Certificate of Commissioners. It was moved by Kathy Nuanes and seconded'by Janice Thompson to approve the Certificate of Commissioners of the Wheat Ridge Housing Authority. The motion carried 4-0. New Proiect Ideas Ryan Stachelski, Eeonomic Development Specialist, presented a project idea to renovate the old Fruitdale School into owner-occupied lofts. The Wheat Ridge Foundation has been in discussions with the School District regarding sale of the building. The Foundation could purchase the building for ten dollars and it has been suggested that the Housing Authority would be'the best entity to develop the property. There is a deed restricrion on the property that the building must always be used for educational purposes. The City Attorney is reviewing all the details associated with the deed restriction. Mr. Stachelski will be meeting with architects to determine an estimation of renovation costs. Another idea which has been discussed is to develop single level retail along 44`" Avenue. Following discussion by the Authority, there was consensus for Mr. Stachelski to report back to the Authority once he has more information regarding the legal issues and renovation cost estimations. Housing Authority Minutes - 2- November 27, 2007 4. Discussion about 2008 Home Application Sally Payne reported that, as a result of the letter of interest sent to the Community Development Advisory Board requesting a$75,000 grant, the Board has requested a complete application with a caveat that a specific project be identified in the application. The application is due December 7a, H. 1. OTHER • Cheryl Brungardt suggested having a Housing Authority representative attend an employee meeting at Lutheran Hospital to infonn employees of the available housing afforded by the Housing Authority. ADJOURNMENT It was moved by Janice Thompson and si the meeting aC 5:35 p.m. The motion pa5 Authority meeting is scheduled for January Lena Rotola to adjourn ously. The next Housiug Cheryl Brw7gardt, Chair Atui Lazzeri, Secretary Housing Authority Minutes - 3- November 27, 2007 Rebuilding Together. Metro Demer About Rebuilding Together What is our mission? Our mission is to work in partnership with the community to rehabIlitate the houses of low-income homeowners, particulazly the elderly and disabled, so that they may live in warmth, safety and independence. Our goal is to make a sustainable impact in partnership with communities. On National Rebuilding Day, held once a yeaz on the last Saturday in April, the metro Denver chapter rehabilitates over 40 homes, all within the time frame of a one-day event. Additionally, on the first Saturday of October, Rebuilding Together Metro Denver hosts a second Rebuilding Day and rehabilitates an additiona120 homes. Throughout the yeaz, Rebuilding Together Metro Denver performs small home repairs for homeowners on more than 250 homes annually through its yeaz-round programs, A Home for All Seasons and The Emergency Home Repair Prograin. What is our national impact? As the largest volunteer home rehabilitation organizafion in America, our work takes place in 1,879 cities and towns in 48 states. The cumulative effort, projected through the yeaz 2008, will be a total of 2.5 million volunteers working 24 million hours to rehabilitate 105,020 houses and non-profit facilities. In 2007, alone, more than 267,000 volunteers donated their time to rehabilitate more than 8,900 houses and non-profit facilities. Why are these services needed? The number of low-income homeowners increases each year. The current 24 million low-income homeowner families aze expected to grow to an astonishing 28.5 million by the year 2010. The impact will be realized as more and more families aze placed in the position of choosing between vital necessities, such as food or medicine, or a roof that does not leak. Rebuilding Together works to ensure that as many of those families as possible do not have to make these difficult choices. What type of work is done? Rebuilding Together repairs homes so that low-income elderly and disabled homeowners may continue to live in warmth, safety and independence. Since its incepfion in 1999, the metro Denver nonprofit has repaired over 400 homes and 8 nonprofit facilities. Through donated supplies and materials, Rebuilding Together is able to leverage $3 of services for every $1 donated. The work of Rebuilding Together could not happen without the generosity of hundreds of skilled and unskilled volunteers joining together to transform homes. Each year, more than 1,000 volunteers report to "work", performing hundreds of repairs such as installing new roofs, carpets, floors, wheelchair ramps, deadbolts, windows and appliances. Unskilled volunteers helped with painting, cleaning, and weatherizing to make homes clean and comfortable. How are homeowners selected? Homeowners must be low-income and elderly, disabled, or caring for a disabled family member, and unable to do the work themselves. They must own and occupy their home. Homes are chosen through a cazeful selection process administered by staff and a volunteer house selection committee. Applications are accepted on a year round basis and referrals aze made by human service organizations, housing agencies, synagogues, churches, hospitals or by self-referral. Do homeowners pay? There is no cost to the homeowner. All repairs are free for eligible homeowners. Labor and many supplies aze typically donated. Homeowners and family members aze asked to welcome the volunteers into their homes and work alongside them to the extent possible. Our work is done with fanulies and neighborhoods, not for them. Who sponsors Rebuilding Together? Funds come from generous individuals and volunteers, corporations, foundaflons, civic organizations, churches, and synagogues that are interested in making a profound difference in the community. Rebuilding Together is a non-profit, non-sectarian organization supported by voluntazy contributions of time and money. Every dollar given is wisely spent and is an investment in building stronger communities. Is my contribution tax-deductible? Yes. All contributions are tax-deductible. Contributions can be sent to Rebuilding Together, 4100 E. Mississippi Ave., Denver, CO 80246 For more infornzation, please call 720-524-0840. ~&(y Swanhorst & Company LLC Cmified PublicACroumants November 26, 2007 Board of Directors Wheat Ridge Housing Authority 7500 West 29th Avenue Wheat Ridge, Colorado 80033 We are pleased to confirm our understanding of the services we are to provide to the Wheat Ridge Housing Authority. We will audit the basic financial statements ofthe Authority, as of and for the year ended December 31, 2007. Also, the managemenYs discussion and analysis, if prepared, will be subjected to certain limited procedures, but will not be audited. Audit Objective The objective of our audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformiTy with accounting principles generally accepted in the United States ofAmerica and to report on the faimess ofthe additional information referred to in the first paragraph when considered in relation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America. Our audit will include tests of the accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion on the financial statements is other than unqualified, we will fully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining effective internal controls. In fulfilling this responsibiliTy, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives ofinternal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions aze executed in accordance with managemenYs authorizations and recorded properly to permit the preparation offinancial statements in accordance with generally accepted accounting principles. You are also responsible for all management decisions and functions, for designating an individual with suitable skill, lmowledge, or experience to oversee our financial statement prepazation services and accepting responsibility for the financial statements. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. You are also responsible for adjusting the financial statements to correct material misstatements and for affirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented ue immaterial, both individually and in the aggregate, to the basic financial statements taken as a whole. 8400 E. Crescent Parkway • Suite 600 • Greenwood Village, CO 80111 •(720) 528-4306 Fax: (720) 528-4307 Boazd of Directors Wheat Ridge Housing Authority Page 2 Management is responsible for establishing and maintaining effective internal controls, including monitoring ongoing activities; for the selection and application of accounting principles; and for the fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. Management is responsible for the design and implementation of progams and controls to prevent and detect fraud, and for informing us about all known or suspected fraud involving management, employees who have significant roles in intemal control, and others where the fraud could have a material effect on the financial statements. You are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud received in communications from employees, former employees, regulators, or others. In addition, management is responsible for identifying and ensuring that the Authority complies with applicable laws and regulations and for taking timely and appropriate steps to remedy any fraud, illegal acts, or violations of contracu or grant agreements that we may report. With regard to using the auditors' opinion, you understand that you must obtain our piior written consent to reproduce or use our report in bond offering official statements or other documents. Audit Procedures-General An audit includes examining, on atestbasis, evidence supportingthe amounts and disclosures in the financial statements. Therefore, our audit will involve judgment about the number oftransactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or regulations that do not have a direct and material effect on the financial statements. However, we will inform you of any materiai errors and any fraud that comes to our attention. We will also inform you of any other violations of laws or regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might azise during any later periods for which we are not engaged as auditors. Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, and may include tests ofthe physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selecfed individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures-Internal Control In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to . determine the nature, timing, and extent of our. auditing procedures for the purpose of expressing our opinion on the Authority's financial statements. An audit is not designed to provide assurance on internal control or to identify significant deficiencies. However, we will inform the governing body or audit committee of any matters involving internal control and its operation that we consider to be significant deficiencies under standazds established by the American Institute of Certified Public Accountants. Significantdeficiencies include a control deficiency or combination ofcontrol deficiencies such thatthere is more than a remote likelihood that a misstatement of the financial statements that is more than inconsequential will not be prevented or detected. Board ofDirectors Wheat Ridge Housing Authority Page 3 ~ Audit Procedures-Compliance Identifying and ensuring that the Authority complies with laws, regulations, contracts, and agreements is the responsibilityofmanagement. Aspart of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we will perform tests ofthe Authority's compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Audit Administration, Fees, and Other Our fees for these services will be at our standard hourly rates plus out-of-pocket cosu (such as report reproduction, typing, postage, copies, telephone, etc.) except that we agree that our maximum fee, including expenses, will not exceed $5,000. If the Authority is required to perform a Single Audit, additional fees will not exceed $2,000. Our standazd hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. The above fee is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances will not be encountered during the audit. Ifsignificant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. We appreciate the opportunity to be of service to the Wheat Ridge Housing Authority and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and retum it to us. Very truly yours, ~'c.~eo.q~ t e:;,~ u.c., Swanhorst & Company LLC RESPONSE This letter correctly sets forth the understanding of the Wheat Ridge Housing Authority. By Wheat Ridge Housing Authority 01117108 Budget vs. Actual January through December 2007 Jan - Dec'07 Budget $ Over Budget % of Budget Ordinary Income/Expense Income 500 • Sale of Units 246,900 1,000,000 -753,100 25% 530 • Rent - 8,395 10,000 -7,605 84% 535•Interestlncome 30,160 5,000 25,160 603°h 549 • Miscellaneous Income 0 500 -500 0°h Totalincome 265,455 1,015,500 -730,045 28°h Cost of Goods Sold 551 • Beginning Cost of Units 525,081 480,370 44,711 109% 555 • Purchase of Units 735,900 600,000 735,900 723% 560 • Acquistion Appraisal Fees 7,400 562 • Acquisitions Costs 4,381 565 • Condo Map 3,683 567 • Constmction Period Maintenance 785 568 • Construction Management 5,145 577 • Homeowners Association 2,750 572 • Loan Costs 1,230 573 • Rehabilitation - Appliances 2,850 576 • Rehabilitation - Exterior 17,480 580 • Rehabilitation - Various 47,637 400,000 352,363 12°h 581 • SupplieslMaterials 293 599 • Ending Cost ot Units -1,125,600 -600,000 -525,600 188°h TotaICOGS 276,415 880,370 -663,955 25°h GrossProfit 69,040 135,130 -66,090 51°h Expense 700 • Selling Costs 2,635 2,597 38 101 °,6 704•Buyerlncentives 0 37,155 -31,155 0°.6 705 • Closing Costs 7,588 5,745 -4,157 28% 770•Commissions 9,693 41,368 -31,675 23°h 720 • Homeowners Association Capital -775 750 • Accounting 8 Legal 6,700 9,000 -2,300 74°h 762 • Bank Charges 7,165 50 1,115 2,330% 777 • City Reimbursement 3,667 6,000 -2,333 61 °,G 775 • Conference 8 Meeting Expense 75 500 -425 75°,G 787 • Dues, Books & Subscriptions 60 500 -440 72% 802 • Gardening & Maintenance 2,183 2,500 317 87°h 803 • Grants 804. Homeowners Association Dues 250 3,956 2,000 1,956 198°,G 807 • Insurance 1,732 825 • OKce Supplies 0 250 -250 0% 832 • Postage 51 100 -49 57 % 843 • Repairs 8,932 1,500 7,432 595% 853 • Supplies 0 250 -250 0% 857 • Taces - Real Estate 173 7,000 -827 17°•6 865 • Trash Removal 0 500 -500 0% 872 - Utilities 2,886 2,000 886 144036 Total Expense 45,570 707,015 -61,445 43°h Net Ordinary Income 23,470 28,175 -4,645 83°,b Other IncomelExpense Otherlncome 564 • CDBG Grant 187,500 75,000 112,500 250°b Total Other Income 187,500 75,000 112,500 250°h OtherExpense 970 • Interest Expense 78$ Total Other Expense 788 Net Other Income 186,712 75,000 117,772 249°b Netlncome 210,782 103,115 107,067 204°/a Page 1 Wheat Ridge Housing Authority 01117/08 Balance Sheet As of December 31, 2007 no, 11 •m ASSETS Current Assets Checking/Savings 113 - 1st Bank -Cliecking (219) . 120 • 1st Bank - Money Market 454,861 Total Checking/Savings 454,662 Other Current Assets 151 • ParkSide Projectlnventory 171,380 753 • Parfet Project Inventory 374,343 154 • Allison Project Inventory 388,545 155 - 41st Avenue Project 251,332 Total Other Current Assets 1.125,600 Total Current Assets 1,580,261 Other Assets 273 • No[e Receiva6le - Baca 8,886 290 • HOA Working Capital 350 Total Other Assets 9,236 TOTAL ASSETS 1,569,497 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 300 • Accounts Payable 6,882 315 - Construction Retainage 990 Total Accounts Payable 7•872 Other Current Liabilities 310 • Real Estate Taxes Due 3,036 340 • 41st Avenue Loan - tst 8ank 123,000 Total Other Current Liabilities 126,036 Total Current Liabilities 133,908 Total Liabilities 133,908 Equity Net Income 210,182 465 - Fund Balance 1,245,407 Total Equity 7,455,589 TOTAL LIABILITIES 8 EQUITY 1,589,497 Page 1 Page 1 of 3 Kathy Field From: Ryan Stachelski Sent: Wednesday, January 16, 2008 8:33 AM To: Kathy Field Subject: FW: Fruitdale School Follow Up Flag: Follow up Flag Status: Red Kathy Below is the list of comments from Mr. Dahl that Kathy wanted attached to the Agenda to the next WRHA Agenda. I think that the WRHA would like to read the whole communication. Th an ks, Ryan ~ f~ic:I~~~ -----Original Message----- From: Gerald Dahl [mailto:gdahl@mdkrlaw.com] Sent: Thursday, November 29, 2007 9:40 AM To: Jerry DiTullio; Randy Youn9 Cc: Kenneth ]ohnstone; Malcolm Murray Subject: RE: Fruitdale School If the City itself is not taking title, it does not condemn. Condemnation does not damage value - it is a process of acquiring property only. The other use the term "condemn" is in the nuisance abatement context, where a building, for example,is declared "condemned" and thus not fit for occupation, etc. Completely different concept not at work here. Let us know when you want us to get involved. Gerald E. Dahl gdahl@mdkrlaw.com Direct: 303-493-6686 Murray Dahl Kuechenmeister 8s Renaud LLP 2401 15th Street, Suite 200 Denver, CO 80202 Phone: 303-493-6670 Fax: 303-477-0965 '1'his electronic mail transmission and any accompanying documents contain information belonging to the sender which may be confidential and legally privileged. If you are not the intended recipient of this e- mail, you are hereby notified that any dissemination, distribution or copying of this e-mail, and any attachments thereto, is strictly prohibited. If you have received this e-mail in error, please notify me immediately by telephone or e-mail and destroy the original message 1/18/2008 Yage L oY .5 without making a copy. Thank you. From: Jerry DiTullio [mailto:jerryditullio@comcast.net] Sent: Thursday, November 29, 2007 6:53 AM To: Gerald Dahl; 'Randy Young' Cc: 'Kenneth Johnstone' Subject: RE: Fruitdale School Mr Dahl, Thanks. Does City Council need to also condemn? Does the condemnation damage the property or property value in any way? Thanks Mayor Jerry DiTullio, Wheat Ridge 303.237.4806 Email: jerryditullio@comcast.net Website: www.ci.wheatridge.co.us i~A~c -----Original Message----- From: Gerald Dahl [mailto:gdahl@mdkrlaw.com] Sent: Thursday, November 29, 2007 12:33 AM To: Jerry DiTullio; Randy Young Cc: Kenneth ]ohnstone Subject: Fruitdale School I have received the title information from the School District attorney. The restriction on the deed is an automatic reverter clause, which is triggered if the property is not used for school purposes. The transfer of the property to other than an educational institution could trigger the reverter. There is the option to provide for some continued educational use of the property in order to continue to satisfy the deed condition. I have talked with Malcolm Murray about this. The easiest way to eliminate the risk of the reverter is to have the Housing Authority enter into an agreement with the School District to allow condemnation of the property. The agreement should recite the purpose for the acquisition by the Housing Authority and the fact that the condemnation is necessary to carry out the public purpose of the Housing Authority. The agreement should also recite the School DistricYs consent to the condemnation and the compensation agreed upon. The Housing Authority would then condemn the property in fee simple. We would stipulate to the compensation and since no one will object to the condemnation, the court will issue a rule and order conveying the property in fee simple, free of the reverter clause, to the Housing Authority. We can assist with drafting the agreement and initiating the condemnation. Let me know how you would like to proceed. Gerald E. Dahl 1/18/2008