0:00Standing committee meeting on today, Thursday, March 19th.
0:04Madam Clerk, will you please call the roll?
0:06Councilmember Letitia Johnson.
0:08Councilmember Gabriela Santiago Romero.
0:11Council President Pro Temporal Komene Young the second.
0:14Pro Tempera Young did indicate that he was running a little behind this morning, but he's on his way.
0:20Madam Chair, you have a corn present.
0:22Having a quorn present, we are now in session.
0:26Good morning, Member Santiago Romero.
0:29Is there a motion on the minutes?
0:32There's a motion to approve the minutes.
0:33Hearing no objections, that action shall be taken.
0:38We are going to move into general public comment.
0:41If there's anyone joining us in person or virtually who'd like to make a public comment, public comment, we'll be cut off in one minute at 9 0.
0:52Uh, if you'd like to make a public comment, please raise your hand prior to 909, and we would love to hear your comment.
1:05We don't have any hands in the committee of the whole.
1:07How many hands do we have raised virtually?
1:10Good morning, madam chair.
1:12We currently have six hands raised for virtual public comment.
1:15All right, thank you.
1:15We're gonna give everyone a minute and a half this morning.
1:19We can get started with the first caller.
1:33Our first caller is Samsung SMG991U.
1:39Caller, you have a minute and 30 seconds for general public comment.
1:46Yes, I'm calling in regards to the land bank slash the city on property that I'm in and taken care of for since 1999 when my neighbor's husband passed.
1:57She told me she didn't want the house.
1:58I came downtown to get child to go through the procedures.
2:02I never heard nothing from them.
2:04Land bank came in at 2014.
2:06I got emails and everything.
2:08I went down to see them.
2:09I haven't heard nothing from them until maybe 2019.
2:13And they're talking about they're gonna move my stuff out of there.
2:16No, I already went to that deed for uh meeting with uh councilwoman at large Mary Waters and I talked to Ted Phillips.
2:24They need to stop harassing me, council people, because none of nobody wanted this house.
2:30I was only it was only two people left on my street, period.
2:33Two, and you know who took care of this block?
2:36Me and one of my neighbors.
2:39I took care of the house, I took care of grass, lots on both sides of me and all that.
2:45So I wish you tell them to please leave me alone at time.
2:48They're gonna come out next week and they're gonna have me move my property.
2:51Well, I'm gonna get back with count with uh Ted Fillers with the housing coalition again because I was there at that meeting.
2:58I'm sick of being harassed by somebody that didn't care about nothing, nothing at all.
3:03The city, the land bank, none of them.
3:06And I have ex land bank people that work there that told me that they would him, her and another person was working with for me to get the property, but the land base.
3:22Next caller is William M.
3:25Davis, you have one minute, 30 seconds for general public comment.
3:29Good morning, young ladies.
3:32Okay, just looking at 5.2 on the agenda.
3:36I think more needs to be done as relates to lowering the threshold for community benefits ordinance.
3:42Uh also I think it need to be some, you know, like I said, I think you could lower it over a number of years, be it you know, four or five years or what have you.
3:51Uh also separately, I think more needs to be done to uh claw back.
3:55Y'all have no problem about clawing back our savings from the safety trade retirees to claw back, the you know, the ones that gets these developments to get these, you know, get these monies uh that they if they don't live up to their agreements.
4:11One example is uh Gilbert in the Hudson building, but you know, there's a lot of opportunities to do more so that more could be helping people in the community and not just helping millionaires and billionaires.
4:24So I look forward to y'all making more changes to improve what's going on and to make it more inclusive for community groups.
4:39Our next caller is Betty A.
4:42Varney, you have a minute, 30 seconds for general public comment.
4:45Uh, good morning to all within the sound of my voice.
4:49Barner, president of the Soto Elsewhere Black Association.
4:52Uh, if you are a uh person who needs help at your home, you need assistance with your chores, you need a caregiver, whatever, and you are not eligible for Medicaid.
5:06Please contact D Triple A Detroit Area Agency for the Aging at 446, 4444, 313, 446, 4444, and ask for the My Choice waiver program.
5:26The MI Choice waiver program.
5:31When you call, ask to speak to someone in regards to that program.
5:35If you're not eligible for Medicaid, they have a program that allows you to earn 2900 a month and be eligible for Medicaid.
5:46They come out, do an assessment at your home, and you can start receiving the services that you need to assist you to keep you in your home.
5:55This program is a federal government program set up to keep you out of a nursing home or assistant living.
6:05If you call, I'm uh people are saying they can't get through, they're not getting return calls.
6:10When you call a couple of times, document your call who you speak to, have teleoperated.
6:16You want to speak to a supervisor.
6:25Cunningham, you have a minute, 30 seconds for general public comment.
6:39Well do honorable body, everyone on the sound of my voice.
6:45313 444 9114, 313, 444, 9114.
6:55I really thank God that I've been homeless for 10 years and depression and all the things that I've been through that you couldn't tell unless I told you.
7:11And if you think it's over, just look at my life.
7:15You still can be used.
7:18God is a way maker, miracle worker, promise keeper, light in the darkness.
7:28I'm hearing a lot from the people, and they don't even feel like putting in the complaint because they think it's not going to do anything.
7:35The pressure needs to be on.
7:38So I give out handwater's gloves and bus tickets at the bus stops.
7:42And I take time out to do advocacy.
7:46You can look up Patreon, Brother Cunningham.
7:49Folks are giving five dollars, 10.
7:54It allows me to take time off to do things like this.
7:58Also, I'm asking for your prayers.
8:00Me and Transit Writers United will be in Pittsburgh for transit advocacy training.
8:08Hopefully, I don't fall asleep during some of the sessions.
8:17Our next caller is caller ending in 039.
8:20Caller ending in 039.
8:22You have one minute, 30 seconds for general public comment.
8:32Are you sitting up there with the liar?
8:35One that lied about the findings on the allegations of voter fraud by not in the citizen report saying she read it on May tonight.
8:46But I'm sick and tired of all y'all.
8:50So I gotta do what I gotta do to get Mimi what she wants, ask for it and request it.
8:59Now that 29,000 has been replaced over Spring Garden, but this Conrad Mallet and it's David Bell character, David Bell, Building Safety Engineering, and Comrade Mallet, General Corporation Council.
9:18I want my money that I had to spend to replace everything that got stripped off that house, and you acting kind of funky.
9:27Now you know somebody that's been knowing me for over half a century, 50 years, and they will tell you that I'm real, but you been dodging me.
9:41So now I'm getting ready to play my game.
9:46For real, for real, for real.
9:49And I'm young blood on the Brewster Project in 1980.
9:55Check the record, and I'll stand up 100.
10:06Our next caller is Tyson Gersh.
10:08Tyson Gersh, you have a minute, 30 seconds for general public comment.
10:15Hi, can you hear me?
10:19Um, I guess I just wanted to comment on uh item where to go.
10:27You know, it's funny.
10:29Uh with the Northern Landing Project, like not a single person except Quincy Jones who sold property for the development itself.
10:40Other than him, not a single person that lives anywhere near the proposed project wanted it anywhere near them.
10:47Um it's a bad design, it's a bad project, but all of these people who live nowhere near us, like Patricia Dockery, who's over a mile away, managed to show up at every single hearing and chime in in support of it.
11:02And of course, she's getting hooked up by the city.
11:0677 grand now uh well, I'm sorry, whatever 168 minus 77 is, and now she's getting an additional 77 grand.
11:16And you know, it just makes you like it's like why everybody's so frustrated because anytime the city wants something to happen, they find a bunch of people who aren't affected by it, and they come in to try and drown out the voices of the people that are affected by it, and the city promises them things in exchange, you know, and it's just a broken engagement process.
11:38Um, and yeah, I've only supported Patricia's thing because it doesn't affect me and let her do what she wants.
11:44She lives over there, but she shouldn't be coming in and chiming in and trying to drown out my voice.
11:52The next caller, Madam Chair, our last caller is owner papa.
11:57Owner Papa, you have one minute, 30 seconds for general public comment.
12:07Good morning, ladies, and through the chair may I be heard.
12:11Um, I'm I'm inquiring about the uh housing choice voucher.
12:15Is this section eight?
12:16And how has it changed?
12:17I've never known the section eight to um assistant home ownership.
12:22Um, but is this something new for section eight and have all of the legacy people been eliminated because of the court system?
12:32I think I think the court system should not hear any landlord that is not in compliance, and that should be made clear to 36th district court.
12:42Um this this 100% CDBG funding for home investor loan portfolio.
12:49You're using our community development block grant and our neighborhood stabilization pro uh program.
12:54That you know that was developed so that you we've got money from our C D BG funds to you know do a roof, do windows, uh do a porch, and now our uh properties are falling down, especially in the aviation subdivision because you guys don't we get absolutely nothing for our federal tax dollars that we send to Washington, nothing comes back to the people in the aviation subdivision except for uh gentrification.
13:22I can I can see where it's going, but um what you smelling happening.
13:27Uh we getting ready to I I have people flying ISIS flags around my neighborhood.
13:33Um that that is unacceptable to me and to my neighbors.
13:39All right, thank you.
13:40That now concludes our general public comment, and I do just want to say to Miss Riley, um, I think it is a good idea if you speak with someone from UCAC um and ask for them to provide some representation for you to address that issue with the Detroit Land Bank Authority.
14:00Uh, in regards to Ruben Crowley's comment, my chief of staff, Mr.
14:05Gary Gray, who has known you for nearly half a century, uh, did visit the property that you referenced and worked with you um to understand what the issue was and assisted you uh on behalf of my office and Miss Carol Hughes, the housing choice voucher is Section 8, a section eight voucher.
14:30Um, I believe it has been able to be utilized for homeownership for some time.
14:37Um the local, if you will, um, entity, the Detroit Housing Commission, uh, that is the ability to identify or determine whether or not they are allowing that program to be utilized.
14:52Um, and so we're just encouraging and asking that they do so, recognizing how much of a benefit it will be to uh the residents to be able to own a property.
15:04Member Santiago Romero, any additional feedback?
15:09No, I don't have anything.
15:10All right, thank you.
15:11All right, that moves us now back to the agenda and unfinished business beginning with line item 5.1.
15:19Line item 5.1 is the status of council member Letitia Johnson submitting memorandum requesting LPD to draft a resolution regarding the housing choice voucher home ownership option.
15:31The resolution is attached to line item 6.4.
15:34Is there a motion to receive and file line item 5.1?
15:40Hearing no objections, that action shall be taken.
15:44Line item 5.2 status of council member Mary Waters, submitting memorandum relative to the nuisance abatement suit request for the Leland House apartments.
15:55Is there a motion to discuss?
16:01Thank you, Members Hantiago Romero.
16:04Attorney Anderson, is there an update?
16:07Through the Chair Graham Anderson Law Department.
16:10We were in mediation all day yesterday.
16:13I haven't heard a report of the outcome yet.
16:16Um but I'm sure we will have one shortly for this body.
16:19I would ask for a two-week bring back on 5.2.
16:23There's a request for a two-week bring back.
16:28There's a motion to bring line item 5.2 back in two weeks.
16:32Hearing no objections, that action shall be taken.
16:38Status of Councilmember Letitia Johnson submitted memorandum relative to Hance Farms LLC purchase agreement.
16:45Is there a motion to discuss?
16:51Thank you, Member Santiago Romero.
16:54Is there anyone here from the administration or Mr.
17:16Good morning through the chair.
17:17This is John Trong with the Housing Revitalization Department of the Real Estate Division.
17:23I know we've been trying to determine who might have access to additional information above and beyond what was shared by the Detroit Land Bank Authority, and I'm not sure if you have an update.
17:52To the administration, do we have Ms.
17:56Washington on the level of increased awareness that morning through the chair?
18:08If you can please assist in connecting with the law department who may have additional information about this line item, we would certainly appreciate it.
18:20or Attorney Goldman was on the line and shared a little bit of information a couple maybe two or three weeks ago when we originally talked about this.
18:31Um he alluded to maybe having access to some additional information because he was around and perhaps involved in the negotiations, but we have not been able to secure any information about additional land that was part of a purchase agreement for Hans Farms.
18:54Yes, we'll do a matter of trial work on that with the law department.
18:57All right, thank you so much.
18:58Um so we will bring this back in two weeks to allow for uh that to happen and uh see where we go from there.
19:12There's a motion to bring line item 5.3 back in two weeks.
19:16Hearing no objections, that action shall be taken.
19:20Line item 5.4 status of civil rights inclusion and opportunity department.
19:26This is the community benefits ordinance or comannual report for future of health.
19:33I was able to meet with the developer to get an update on the CLT.
19:38Is there a motion to receive and file line item 5.4?
19:43Hearing no objections, that action shall be taken.
19:48And I'm glad to say that things are progressing with the CLT.
19:52So I was getting asked.
20:00So I was getting I'm really looking for that entity because they were able to receive not only land but financial resources to assist in standing up a community land trust and having it be primed for a development project.
20:12They are making great progress, albeit a little slow, but I think you know it's is worthy of the time to go slow to get it done correctly and to be able to do development projects that meet the need of the residents in that particular community.
20:30And so glad to say that they are moving forward.
20:33But we'll we'll certainly continue to connect with them just as progress is being made and intercede where we need to.
20:45Moving on to new business in line item 6.1.
20:50Line item 6.1 is contract number 6006558-a two 100% ARPA funding.
20:59Amendment number two to provide an extension of time increase of funds for development of public facility rehabilitation accessibility upgrades.
21:11Contractor Stafford House contract period through March 31st, 2026, or sorry, can't amended contract period is through June 30th, 2026.
21:26Contract increase amount 77,267 and 50 cent.
21:35Member Santiago Romero, I'm not sure if you have any questions about this line item.
21:40I'm very familiar with it.
21:42Um, but would like to turn the floor over to you if you have any questions or if there is a motion.
21:51Um motion to approve with discussion.
21:57Discussion, member Santiago Romero.
21:59Thank you, Madam Chair.
22:00Just want to confirm that this is for two addresses, correct?
22:05For Sir Metro, it looks like, and for Stafford House, and understanding that this is for ADA accessibility.
22:13Just want to confirm that's what this is for.
22:15And we have several folks that are joining us for this line item.
22:22I'm not sure if any one of you would like to raise your hand to respond to the question.
22:26I'm not sure that we need all five people.
22:40Please introduce yourself for the record.
22:42And it looks like the chair, Larry Catchware from the Housing and Refundization Department.
22:50And I who do we have joining us?
22:55Morning through the chair.
22:56This is John Salvatore in the Housing and Revitalization Department.
23:03Uh, through the chair to Council Member Santiago Romero, I believe the question was um if this just relates to the Stafford House project or Sierra Metro also.
23:16This is just related to the Stafford House location, and it is for accessibility uh improvements.
23:23And there were some um construction issues, structural issues that were identified during the construction when the construction work began, and it's to add funding to um allow and reimburse for those additional costs that were incurred in this project.
23:40Just wanted to confirm because this is ARPA funding.
23:42Um, and I figured that some folks had questions.
23:46Uh so thank you for that.
23:47Thank you, Madam Chair.
23:48Um other questions from me.
23:52Member Santiago Romero, since you all are here, um, I know in during a previous discussion there were questions about an elevator.
24:02Um, and seeing that this is for accessibility upgrades.
24:06Do you all know if the elevator is being accommodated within the use of these funds?
24:14Through the chair, my understanding our our scope of work that we were involved with are just accessibility improvements to the main floor of the building for the um to to help serve the the clients of you know it's that they're serving in that building on the first floor.
24:31So they're entryway improvements and um some flooring improvements to to help with accessibility and mobility on the first floor.
24:40I do not believe that there was an elevator that was part of the scope of work that I'm aware of.
24:45Okay, if you can just please look into it.
24:48I know there was some discussion about an external elevator um to be able to meet ADA accommodations for utilizing the um apartment units that I believe are on the second floor.
25:00If you can look into that.
25:01And then I am wondering if these are reprogrammed ARPA funds that are being utilized and provided for this project.
25:09I'm not sure if either one of you are aware of that, or if Ms.
25:16Yes, through the through the chair.
25:18The um there was a larger budget amount uh appropriated for ARPA improvement for these accessibility improvement projects.
25:29And this this is really dollars that were not utilized by other projects that were able to be completed a little bit under budget.
25:37So we're able to remove move those funds to this project to help fill uh the gap that was identified during the construction process.
25:48And just to be clear, you're indicating that these funds were already provided to HRD for housing projects.
25:58All right, thank you.
26:00I don't have any additional questions.
26:02There was a motion to send line item 6.1 to formal with the recommendation to approve.
26:09Hearing no objections, that action shall be taken.
26:16Moving on to line item 6.2.
26:19Line item 6.2 is contract number 600 7474-a2.
26:26This is a lease agreement, rental rate amendment number two to extend and expand the right to mine minerals from properties owned by the city of Detroit contractor, Detroit Salt Company, contract period through December 31st, 2055.
26:48Is there a motion to discuss discussion?
26:59I'm interested in the information that you'd like to share.
27:05Uh I'm also joined by the Detroit Salt Mines with uh George Davis, uh, Yesir Anwal and Anna Um Fishman.
27:12I don't know if they can be elevated as well.
27:15We will work on that.
27:17Anna Fishman, George Davis, and I'm not sure the third name I heard.
27:22Yeah, it was uh Yasir Anwar.
27:24I think should be joining us.
27:26He's the general manager of operations there.
27:29And if you all can raise your hand if you are not being ported over to join us as a panelist.
27:35Oh, they're all together.
27:40Please introduce yourselves for the record.
27:43Uh I'm Anna Fishman.
27:44I'm our senior corporate counsel at Detroit Salt.
27:47Uh, yes, and we're general manager at uh the Detroit Salt Company.
27:50Uh George Davis, director of public relations here at Detroit Salt Company.
27:58Trump, you may proceed to.
28:01So this is uh the second lease amendment with the Detroit Salt Company.
28:05The city of Detroit's been in an active lease with them since 1999.
28:10Um this is to extend it for another 30 years, as well as add uh properties with excuse me, uh mining potential to kind of give uh you know everybody background and the audience and and members there.
28:23There's two revenue streams that we've traditionally received when it comes to the salt mines.
28:28If you can imagine, you know, a map of the city of Detroit and um if Detroit Salt Company needs to chime in.
28:34Imagine that map mirrored 1100 feet below us, maybe 11 to 1200 feet below us, uh, you know, as a salt basin.
28:41As I understand it, there's you know, imagine a chunk of 99% or 98% pure salt that I think stretches as far as Grand Rapids.
28:50You know, that's the salt that you see on the road salt used today during the winter.
28:54It's you know critical important to not only our city, but across the state of Michigan, and I think there's other users as well.
29:00And so for the salt mines, you know, they've they're they're down there mining almost in a grid.
29:05And I think uh, you know, I'll have them chime in if I'm you know, misquoting numbers.
29:09I think it's about a 40 by 40 grid.
29:11And so, you know, imagine again this 11, 1200 feet below us, all mining activities down there, you know, they go in certain directions, northeast, you know, south.
29:21Uh, and then so they mine in a grid.
29:23And so traditionally back to the revenue streams for us is one for um lease payments.
29:28So you've got to pay to access these underground roads, right?
29:31And so you've got not only the the actual you know mine or salt itself that you're getting revenue from, you know, there you've also got to they've also got to pay, you know, folks, whether it's us or other um owners of the land, you know, to get back and forth.
29:47And so this lease right now, right now the city's still in an active lease from 1999.
29:52We've amended it um uh a first time in 2006.
30:00Uh right now we're only getting uh lease payments as um you know all the all the salt that the city owned, you know, 1200 feet below us had been mined already.
30:06And so this right now uh sets us up uh for another 30 year lease.
30:11We'd uh you know, we'd get revenue from uh the roads back and forth.
30:16We'd see uh increases on there as well as mining potential for actually getting paid for the the road salt that we owned underneath us, you know, close to nine million dollars over the next 30 years.
30:26I know that's a lot right now, so I'll take a pause for any questions or concerns or uh if the salt mines needs to correct me on any of those ballpark figures.
30:37No correction from the uh Detroit Salt Company.
30:48I don't have any questions relative to the revenue aspect of it, but thank you for pointing out that the salt under the city has already been mined.
30:56So essentially they're providing um revenue to the city to still be able to access that tunnel, if you will.
31:06And also um access more uh you know underground salt that we do own, and so there's gonna be additional revenue there.
31:14If this doesn't continue, let's say if this this amendment weren't approved, I think the revenue stream for us is you know a couple thousand years just for rent.
31:21But right now, if you look at the 30-year spread, where you know we'd be basically selling them the road salt that we own underneath us on city assets, you know, we'd be getting uh about 8.9 million dollars.
31:37All right, thank you.
31:39The the question that I really had that I wanted to ask is how do you all ensure that there are no foundational issues for land above the salt mine?
31:52Uh so uh uh good morning, uh good morning, council uh members, uh Madame Chair.
31:58Uh I guess uh uh the best way to answer this is uh a proven history of 120 years of mining uh under the city of Detroit.
32:06Uh we've always been there for the city.
32:08Uh we've always operated and we've always uh uh been there.
32:12Uh I guess a perfect example is this past winter.
32:15Um we do monitor our operations uh uh continuous.
32:19We are federally regulated through uh uh the mines safe and health administration.
32:25Uh so uh through those uh administrative uh measures and stop gaps, uh we ensure sustainable uh mining operations throughout the city.
32:35Uh we're under a lot of uh infrastructures uh out of uh uh for an example uh roads uh and and for for many many many years uh we've proven that our method uh is sustainable and it's proven not to cause any disturbance to surface.
32:53Uh best way to describe it is the uh uh the uh uh freeze and thaw cycle that uh Detroit and uh Michigan and extend experiences has more impact uh to infrastructure than we would ever do.
33:09But can can you give an explanation of what it is that you do?
33:16Uh so uh the Detroit Salt Company, uh we've existed since 1906.
33:21Uh we're mining under the city of Detroit, uh about 1100 feet below ground.
33:26Uh it's a uh uh a historically proven method of mining.
33:30Uh it's called the room and pillar mining method, uh, where we extract road salt, uh, we process the road salt, and um uh we've uh uh we we provide the uh what I would call the Hanolul blue uh road salt that everybody is accustomed to here uh within the city of Detroit.
33:49Yeah, uh the pillars are left behind uh from uh uh structural uh stability standpoint.
33:55Uh the mine has gone through a lot of evolutions throughout its history, and most recently we are using continuous miners uh for as our mining method, uh best in class mining method that uh that that exists in the industry uh that has basically no surface impact, we do not blast and we do not uh cause any disturbance.
34:16Um and can you just share who inspects the um not the work that you do as it relates to mining, but just to ensure that there are no foundational challenges that are created as a result of the work you do.
34:33Um that is usually done through uh um public works division, they take uh measurements.
34:39Uh the city engineers have been here in the past to just inspect to make sure things are solid and there are no uh subsidence uh issues here in the city.
34:50All right, thank you.
34:51Member Santiago Romero.
34:53Thank you, Madam Chair.
34:54Through you to our presenters, good morning.
35:00I just want to share um that a good portion of this is under District 6, it's under Southwest Detroit specifically.
35:04And as someone that has lived there my whole life, I remember when they used to use explosions.
35:09Um, it was very disruptive.
35:11It was not a fun time in the neighborhood, and that has changed.
35:15Um, my team and I recently visited the SALT mines.
35:18Thank you for having us.
35:19We wanted to see firsthand how these things operate because we do have those same questions and concerns, right?
35:25I mean, we did see the continuous machine, it's essentially just a rolling pin that drives into the salts, and then they gather it.
35:35I highly suggest to anyone in the city that is able to to see how it works, and if they welcome you to do so, if they can, just for you to see firsthand um that it is safe.
35:45Um, the jobs it creates, um, also learned about the jobs.
35:48Uh, highly encourage anyone uh to look to to work in in in this field.
35:54It's a very good um, it's a very good field to go into.
35:57It's a special field.
35:58You are essentially a mole, you are underground for a long time.
36:02But if you are okay being underground, getting paid well, um getting taken care of for for for your work.
36:08This is a field to go into.
36:10Um, so just wanted to share that that we've seen the evolution of of the salts mine and and how they do their work here in the city.
36:17We had those same questions and concerns, um, but this is very, very, very deep underground.
36:23It's pretty terrifying.
36:25Um, but um I am actually happy to to see us um being able to um receive more as a city uh for for for the work being done.
36:38Um but just wanted to share that, madam chair.
36:44I don't have any additional questions.
36:46Is there a motion on line item 6.2?
36:51There's a motion to send line item 6.2 to formal with a recommendation to approve.
36:55Hearing no objections, that action shall be taken.
36:59Thank you all so much for joining us.
37:03Line item 6.3 is contract number 6007575, 100% CDBG funding to manage the loan servicing and collection for the home investor loan portfolio, community development block grant, and neighborhood stabilization program notes.
37:24This is a replacement contract, contractor revella Inc.
37:29contract period through June 30th, 2027.
37:33Total contract amount 240,138.
37:40Is there a motion to discuss line item 6.3?
37:46Um, I believe we have Kyle O'Fori, Rebecca Labove, and Elizabeth Ayana Johnson who will be joining us.
37:57If we can move them over as panelists, I do have a couple of questions.
38:18Please introduce yourselves for the record.
38:21Good morning, Rebecca Labove, Housing and Revitalization.
38:26Good morning, Kyle O'Fori, Housing and Revitalization Department.
38:30Good morning, Elizabeth Ayana Johnson, Office of Contracting and Procurement.
38:35And I'm working to fix my camera.
38:40Um, so can someone please share with us uh there is an indication that this is a replacement contract.
38:47Uh, can we talk about why the contract?
38:51I guess the previous contract is being replaced.
38:55Yes, I can speak to that.
38:57So this is more of a an administration and administrative switch of the company.
39:05We have worked with Mino Lending Solutions for the past several years.
39:10This contract was approved in 2022.
39:12And at the time, Mino had a company called Ravella that developed the software that we use to service our more than 150 loans with borrowers around the city.
39:27Mino Lending has decided to go ahead.
39:30Mino Lending has decided to focus more specifically on lending and has asked to transfer the contact or the contract to Ravella.
39:39The both companies are fairly small.
39:42We at the department have been in regular biweekly contact with originally representatives from both, but in the past few months, just the representatives from Ravella to talk about the ongoing loan details and changes like that.
40:00So from a day-to-day perspective, this is a very small change that will just allow the company that we're working with to be Revella rather than Mino.
40:13Anything additional the chair nothing from me.
40:21Um so I believe we had a contract that came before us not long ago.
40:28Is this and and I was trying to figure out what contract it was, if I could come up with the contract number and all of that, because I recall um a CDBG um, I don't want to say oversight contract, but um Miss Lebeau, do you know what I'm referring to?
40:52And I'm wondering, is this the same contract that Mr.
40:56O'Fori just spoke to, or was that something different?
41:02To the chair, I believe the contract you may be referring to was our technical assistance provider.
41:08It was a contract with uh gatehouse solutions who advise us on how to ensure that the use of our HUD funds um from you know home to CDBG to C D B G DR to NSP is in alignment um with the regulations, and when we get into thorny questions about eligibility, they assist us with those and resolving any past findings from prior use of funds.
41:35Um that is a separate contract uh from this.
41:39This is really regarding collecting the program income um for repayments on the loans that we make.
41:45We don't collect a huge amount of of money from these contracts, but it uh in total we're now collecting with this loan servicer about 400,000 a year, and that's money that we can use directly to invest back into other affordable housing projects.
42:01So it is an important service, and it also keeps our borrowers accountable uh to the city.
42:07Um I just really wanted to understand the difference between the two contracts because my mind recalled um the previous contract and just wanted to ensure that um there was a difference in the services that were being provided.
42:23Any any additional questions seeing none?
42:25Is there a motion on line item 6.3?
42:30There's a motion to approve line item 6.3 and sent to formal with a recommendation to approve.
42:36Hearing no objections, that action shall be taken.
42:42And now line item 6.4, submitting resolution authorization urging the promotion of the housing choice voucher home ownership program.
42:52This is the resolution.
42:53Is there a motion to send line item 6.4 to formal?
42:59There's a motion to send line item 6.4 to formal with a recommendation to approve.
43:04Hearing no objections, that action shall be taken.
43:08That brings us to member reports.
43:11Member Vice Chair Santiago Romero.
43:15And I do not have a report either.
43:18If there is nothing further to come before this committee, we shall stand adjourned, noting that our 10 o'clock budget hearing will take place in about 10 minutes.
43:28This motion this meeting shall stand adjourned.