SUMMARY OF MINUTES FINANCE COMMITTEE 4:30 P.M., MONDAY, JANUARY 13, 2014 COMMITTEE ROOM ROOM 239, CITY HALL
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1 SUMMARY OF MINUTES FINANCE COMMITTEE 4:30 P.M., MONDAY, JANUARY 13, 2014 COMMITTEE ROOM ROOM 239, CITY HALL MEMBERS PRESENT: OTHERS PRESENT: Mayor Allen Joines (out at 5:34 p.m.) Council Member Robert C. Clark, Chair Council Member Denise D. Adams, Vice Chair Council Member Vivian H. Burke Council Member Derwin L. Montgomery Council Member Molly Leight Council Member Jeff MacIntosh Council Member Dan Besse (in at 4:44 p.m.) Council Member James Taylor, Jr. (in at 5:13 p.m.) Chair Clark called the meeting to order and stated that without objection, the Committee would first consider the Consent Agenda. He noted staff requested to pull Item C-10(a). Council Member Montgomery pulled Items C-1, C-6, C-7(c), C-7(d), C-7(e), C-7(f), and C-7(g). Council Member Adams pulled Items C-2 and C-5. Council Member Burke pulled Items C-8 and C-9. No other items were pulled for discussion. Council Member Adams made a motion to approve the balance of the Consent Agenda. The motion was duly seconded by Council Member Burke and carried unanimously. CONSENT AGENDA Property Matters C-3. RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY OWNED BY PACLAND REVOCABLE LIVING TRUST RELATING TO KINGSTON ROAD CULVERT REPLACEMENT PROJECT THROUGH A NEGOTIATED SETTLEMENT (NORTHWEST WARD) - Property located on Kingston Road. [$19,635]. Community and Economic Development C-4. CONSIDERATION OF ITEMS RELATING TO AN ECONOMIC DEVELOPMENT LOAN TO THE WINSTON-SALEM CHRONICLE (EAST WARD):
2 FINANCE COMMITTEE MINUTES January 13, 2014 Page 2 Finance/Budget a. RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT LOAN TO THE WINSTON-SALEM CHRONICLE. [$100,000.] b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE FISCAL YEAR C-7. CONSIDERATION OF ITEMS RELATING TO CONTRACTS: Transportation a. RESOLUTION APPROVING RENEWAL OF THE MICROSOFT ENTERPRISE AGREEMENT FOR SOFTWARE LICENSING AND MAINTENANCE SERVICES - Microsoft, Inc. - $436,235 (Estimated Amount - First Year) and $1,308,705 (Total Estimate - Three Years). b. RESOLUTION AWARDING CONTRACT FOR PURCHASE OF ONE ARTICULATED OVER-CENTER AERIAL DEVICE - Altec Industries, Inc. - $155,612. h. RESOLUTION AWARDING CONTRACT FOR PURCHASE OF ONE KNUCKLE BOOM GRAPPLE LOADER WITH DUMP BODY - Whites International Trucks - $142,348. i. RESOLUTION AWARDING CONTRACT FOR PURCHASE OF REMOTE CONTROL ASSEMBLY FOR THE ANDROS ROBOT - Remotec, Inc. - $43,645. C-10. CONSIDERATION OF ITEMS RELATING TO MUNICIPAL AGREEMENTS WITH THE NORTH CAROLINA DEPARTMENT OF TRANSPORTATION: General Government b. RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A MUNICIPAL AGREEMENT WITH THE NORTH CAROLINA DEPARTMENT OF TRANSPORTATION FOR THE MAINTENANCE OF TRAFFIC CONTROL DEVICES - Schedule A Signs. c. RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A MUNICIPAL AGREEMENT WITH THE NORTH CAROLINA DEPARTMENT OF TRANSPORTATION FOR THE MAINTENANCE OF TRAFFIC CONTROL DEVICES - Schedule C Signals.
3 FINANCE COMMITTEE MINUTES January 13, 2014 Page 3 C-11. APPROVAL OF FINANCE COMMITTEE SUMMARY OF MINUTES - December 9, C-1. RESOLUTION AUTHORIZING THE RELEASE OF DEED RESTRICTIONS ON PROPERTY PURCHASED BY WILLIAM R. CARPENTER AND MARTHA D. CARPENTER IN THE KIMBERLY-NORTH WINSTON URBAN RENEWAL PROJECT (NORTH WARD). [This item was remanded to Finance Committee by City Council at its October 28, 2013 meeting.] In response to Council Member Montgomery s question, Mrs. Angela Carmon, City Attorney, indicated the City would have to consider each urban renewal project property as being unique and develop reasons for releasing those properties from deed restrictions. In response to Chair Clark s question, Mr. Lee Garrity, City Manager, noted staff is in discussions with the owner of another urban renewal project property. Mr. Kirk Bjorling, Real Estate Administrator, indicated there are currently only two urban renewal projects. Council Member Adams noted these types of collaborations are good for the community. She added that the lot has been vacant for a number of years. Council Member Burke and carried unanimously. C-2. RESOLUTION AUTHORIZING THE ACCEPTANCE OF A FEE SIMPLE DONATION FROM BROOKSTOWN DEVELOPMENT PARTNERS, LLC (NORTHWEST WARD). In response to Council Member Adams question, Mr. Greg Turner, Assistant City Manager, explained Item C-2 addresses the dedication of land for the Business I-40 Rehabilitation Project. There is a separate project that will be tied to the street and signal improvements included in the budget amendment in Item C-8. Council Member Burke and carried unanimously. C-5. CONSIDERATION OF ITEMS RELATING TO THE REIMBURSEMENT OF LOCAL AGENCIES: a. RESOLUTION AUTHORIZING REIMBURSEMENT OF LOCAL AGENCIES DUE TO DELAY IN RECEIPT OF FEDERAL GRANTS. b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE FISCAL YEAR
4 FINANCE COMMITTEE MINUTES January 13, 2014 Page 4 In response to Council Member Adams questions, Mr. Derwick Paige, Assistant City Manager, indicated that neither the City nor the local agencies will receive back grant funding from the U.S. Department of Housing and Urban Development for the period from July 2013 through December Council Member Burke. In response to Council Member Montgomery s question, Mr. Paige explained the City serves as a pass-through for federal funds for Continuum of Care service providers. Typically there is a direct correlation between the funding the City provides and the services these agencies provide the community. In response to Chair Clark s questions, Mr. Tim West, Program Supervisor, noted the City received 12 months of funding that will begin in December He added the funding cycle will be off by seven months. In response to Chair Clark s question, Ms. Leslie Mozingo, representing Strategics Consulting, LLC, indicated she will look into retroactive reimbursement for these funds on behalf of the City. Chair Clark offered a friendly amendment to the motion to require the local agencies to reimburse the City should they receive retroactive reimbursement from the federal government. Council Members Adams and Burke accepted the friendly amendment to the motion and second. Council Member Montgomery noted the item is an example of the local impact of the federal government shutdown. Council Member Besse in at 4:44 p.m. The motion to approve the item was carried unanimously. C-6. RESOLUTION AUTHORIZING WINSTON-SALEM POLICE DEPARTMENT TO PURSUE GRANT FUNDING FOR TWO SWORN DOMESTIC VIOLENCE OFFICER POSITIONS. In response to Council Member Montgomery s questions, Mr. Barry Rountree, Police Chief, indicated the Winston-Salem Police Department (WSPD) works with Family Services and Safe on Seven on domestic violence cases. The department also has a family services unit with two nonsworn employees who provide domestic violence victim services. The grant will allow WSPD to hire two sworn police officers to increase the unit s ability to investigate domestic violence cases. Council Member Burke noted investigating domestic violence cases requires more than two trained police officers.
5 FINANCE COMMITTEE MINUTES January 13, 2014 Page 5 In response to Council Member Adams questions, Chief Rountree stated the department will transfer experienced officers to the domestic violence unit and hire new officers to replace them. He noted the department will need $168,205 for the positions salaries and equipment. Mr. Garrity added the funds will be needed after the grant expires. He indicated that committing to keeping the positions even after the grant funding ends gives the City a better chance of receiving the grant. In response to Chair Clark s questions, Chief Rountree noted detectives will work in the new positions. He added there are currently 43 detectives assigned to the department s criminal division. Chair Clark noted the one-time funds would be used for ongoing expenses. Council Member Burke and carried unanimously. C-7. CONSIDERATION OF ITEMS RELATING TO CONTRACTS: c. RESOLUTION AWARDING PURCHASE ORDER FOR COMPACT SEDAN VEHICLES - Capital Ford of Wilmington, LLC - $264,622. d. RESOLUTION AWARDING PURCHASE ORDER FOR COMPACT PICK-UP TRUCKS - Modern Toyota, LLC - $266,378. e. RESOLUTION AWARDING PURCHASE ORDER FOR CHEVROLET CAPRICE POLICE PURSUIT VEHICLES - Modern Chevrolet, LLC - $667, f. RESOLUTION AWARDING PURCHASE ORDER FOR DODGE CHARGER POLICE PURSUIT VEHICLES - Horace G. Ilderton, LLC - $592,410. g. RESOLUTION AWARDING PURCHASE ORDER FOR POLICE PURSUIT VEHICLE LIGHTING EQUIPMENT - Horace G. Ilderton, LLC - $141, (Estimated Amount). In response to Council Member Montgomery s question, Mr. Jerry Bates, Purchasing Director, noted the car dealerships with which the City has contracts do not offer incentives to City employees. Council Member Adams requested staff look into ways dealerships can offer a discount to City employees. Mr. Garrity explained the City encourages companies to offer discounts to City employees, but does not link the discounts to a specific contract. He noted that a list of discounts for City employees is available on the employee intranet.
6 FINANCE COMMITTEE MINUTES January 13, 2014 Page 6 Chair Clark stated he is delighted to see the City buying vehicles from local dealerships. Council Member Montgomery made a motion to approve Items C-7(c) through C-7(g). The motion was duly seconded by Council Member Adams and carried unanimously. C-8. CONSIDERATION OF AMENDMENTS TO THE FISCAL YEAR BUDGET ORDINANCES FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA: a. ORDINANCE AMENDING THE ANNUAL APPROPRIATION AND TAX LEVY ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR Council Member Montgomery. In response to Council Member Burke s question, Mr. Ben Rowe, Assistant City Manager, explained the item will provide funds to replace the gas boiler at the Benton Convention Center. The project may exceed $100,000 in cost. An internal team is still looking at the recommendations from the consultant that prepared a master plan for the Convention Center. After the Public Assembly Facilities Commission finishes reviewing those recommendations, they will forward the item to the City Council. Council Member Burke requested information on the amount of funding the City will provide for the Convention Center and how those funds will be used. The motion to approve the item was carried unanimously. C-9. INFORMATION ON USER FEE REVIEW PROCESS. Council Member Adams stated she is glad the City is moving forward with bringing user fees up to date. Council Member Burke requested an update on how the City is doing in collecting user fees. Chair Clark requested staff include enterprise fees in the list of user fees. He noted the item is part of an ongoing effort to address the recommendations made by the Citizens Organizational Efficiency Review Committee. C-10(a.) RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A MUNICIPAL AGREEMENT WITH THE NORTH CAROLINA DEPARTMENT OF
7 FINANCE COMMITTEE MINUTES January 13, 2014 Page 7 TRANSPORTATION FOR THE MAINTENANCE OF TRAFFIC CONTROL DEVICES Schedule B Pavement Markings. In response to Council Member Adams question, Mr. Turner noted the total amount for the schedules is a couple of hundred thousand dollars per year. Council Member Adams requested a copy of the schedule. Council Member Burke and carried unanimously. GENERAL AGENDA G-1. RESOLUTION AUTHORIZING ADDITIONAL FINANCIAL ASSISTANCE FOR A PREVIOUSLY APPROVED REVITALIZING URBAN COMMERCIAL AREA PROJECT (NORTHEAST WARD) - Ogburn Station Shopping Center [$400,000.] Mr. Ritchie Brooks, Community and Business Development Director, gave the staff presentation on this item. In response to Council Member Adams question, Mr. Brooks indicated the project was initially approved for a $20,000 forgivable loan and a $20,000 low-interest loan. The project was later approved for a $40,000 forgivable loan and a $40,000 low-interest loan for a total of $120,000 in assistance. The forgivable loans are forgiven once the low-interest loans are repaid. Council Member Adams requested information on the recent changes to the Revitalizing Urban Commercial Areas (RUCA) program. She noted that some participants in the RUCA program may not have the expertise needed to perform the work for the projects, adding it is the City s responsibility to help citizens. She expressed concern about giving financial assistance without expectations. Council Member Burke expressed concern that the tenants in the Ogburn Station Shopping Center are being neglected. Council Member Taylor in at 5:13 p.m. In response to Council Member Montgomery s questions, Mr. Brooks stated the tenant and Mr. Kim, the property owner, have an agreement that outlines certain requirements the owner has obligated himself to fulfill. Staff will work with the owner on a separate RUCA loan for the shopping center. He added that both staff and the tenant s attorney have looked at the lease. In response to Council Member MacIntosh s question, Mr. Brooks indicated the financial assistance is a business loan.
8 FINANCE COMMITTEE MINUTES January 13, 2014 Page 8 Council Member Leight noted that some of the damage to the property is the owner s fault. She added that both the owner and the tenant need to be held accountable. In response to Chair Clark s question, the Southeast Plaza Shopping Center RUCA project is the only project in which the owner is taking full responsibility for the facility without any tenants. Chair Clark expressed concern that only the loans to property owners appear to be successful. He also expressed concern about the tenant s lack of a business plan. He questioned if the business s anticipated revenue and expenses had been considered. Council Member Burke made a motion to approve the item. The motion was duly seconded by Council Member Adams and carried on a vote of three in favor and one opposed. Those voting in favor of the motion were Council Members Adams, Burke, and Montgomery, with Council Member Clark voting in opposition. G-2. RESOLUTION APPROVING THE FEDERAL FISCAL YEAR 2015 AGENDA FOR THE CITY OF WINSTON-SALEM. Ms. Mozingo gave the presentation on this item. In response to Mayor Joines question, Ms. Mozingo noted the Marketplace Equity Act has received a lot of attention lately as local governments have expressed concern about the millions of state and local tax dollars lost through Internet sales. Council Member Besse noted the Marketplace Equity Act provides a uniform national interstate system for collecting sales taxes that are already owed. Council Member Taylor requested the agenda include an action item focused on reentry efforts for adult offenders. Council Member Adams requested information on the success of past federal fiscal year agendas. She also requested additional detail and examples for each of the agenda items. She further requested the agenda include more small business initiatives. She also requested the agenda include an item related to agricultural efforts in the urban core. Mayor Joines out at 5:34 p.m. Council Member Montgomery suggested staff meet with the Housing Authority of Winston-Salem to discuss how the City can help the organization secure additional funding after its planning grant expires. In response to Council Member Montgomery s question, Ms. Mozingo indicated there will be some impact on the City s representation in the U.S. House of Representatives until Congressman Mel Watt s replacement is found. She added that her firm is working on ways to ensure the impact is minimal.
9 FINANCE COMMITTEE MINUTES January 13, 2014 Page 9 Chair Clark noted the Council Members will attend the National League of Cities meeting in March. Council Member Montgomery and carried unanimously. G-3. GENERAL FUND FORECAST FOR FISCAL YEARS AND Mr. Rowe gave the staff presentation on this item. In response to Chair Clark s question, Mr. Garrity indicated the exclusion of proprietary computer software from the tax base takes away the City s gain from the Caterpillar plant. In response to Chair Clark s question, Mr. Rowe noted the total amount of the utility franchise tax is $11 million to $12 million. Council Member Besse noted the $3.3 million gap between ongoing revenues and fund balance appropriation is due to legislative action that has taken money away from local governments. Council Member Taylor requested information on how the new tax reform is projected to affect City government and local businesses. Chair Clark requested a list of potential and approved state legislation affecting City government. ADJOURNMENT: 5:50 p.m.
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