SUMMARY OF MINUTES FINANCE COMMITTEE 4:00 P.M., MONDAY, AUGUST 12, 2013 COUNCIL CHAMBER ROOM 230, CITY HALL
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1 SUMMARY OF MINUTES FINANCE COMMITTEE 4:00 P.M., MONDAY, AUGUST 12, 2013 COUNCIL CHAMBER ROOM 230, CITY HALL MEMBERS PRESENT: MEMBER ABSENT: OTHERS PRESENT: Mayor Allen Joines (out at 5:33 p.m.) Council Member Wanda Merschel, Chair Council Member Vivian H. Burke Council Member Robert C. Clark Council Member Molly Leight, Vice Chair Council Member Derwin L. Montgomery (in at 5:05 p.m.) Council Member Denise D. Adams (in at 4:14 p.m.) Council Member James Taylor, Jr. (in at 5:29 p.m.) Chair Merschel called the meeting to order and stated that without objection, the Committee would first consider the Consent Agenda. Council Member Clark requested to pull Items C-1 and C-4(a) for discussion. No other items were pulled. Council Member Burke made a motion to approve the balance of the Consent Agenda. The motion was duly seconded by Council Member Clark and carried unanimously. CONSENT AGENDA Property Matters C-2. CONSIDERATION OF ITEMS RELATED TO THE SALE OF CITY-OWNED PROPERTY: a. RESOLUTION AUTHORIZING THE SALE OF CERTAIN CITY-OWNED PROPERTY AT 3301 KIRBY STREET UNDER THE PROVISIONS OF N.C.G.S. 160A-269. b. RESOLUTION AUTHORIZING THE SALE OF CERTAIN CITY-OWNED PROPERTY AT 828 EAST DEVONSHIRE STREET UNDER THE PROVISIONS OF N.C.G.S. 160A-269.
2 FINANCE COMMITTEE MINUTES August 12, 2013 Page 2 c. RESOLUTION AUTHORIZING THE SALE OF CERTAIN CITY-OWNED PROPERTY AT 308 W. TWENTY THIRD STREET UNDER THE PROVISIONS OF N.C.G.S. 160A-269. Community and Economic Development C-3. RESOLUTION APPROVING A NINE-MONTH EXTENSION TO A SUBGRANTEE AGREEMENT WITH UNITED WAY OF FORSYTH COUNTY, INC. Finance/Budget C-4. CONSIDERATION OF ITEMS RELATING TO CONTRACTS: b. RESOLUTION AWARDING CONTRACT FOR CONSTRUCTION OF KINGSTON ROAD CULVERT REPLACEMENT - D.H. Griffin Infrastructure, LLC - $389,907 (Estimated Amount). c. RESOLUTION AWARDING PURCHASE ORDER FOR TRUCK MOUNTED VACUUM LEAF COLLECTION MACHINES - White s International Trucks - $299, C-5. C-6. RESOLUTION RATIFYING, APPROVING AND AUTHORIZING EXECUTION OF A CITY OF WINSTON-SALEM/FORSYTH COUNTY INTERLOCAL AGREEMENT FOR A MASTER ADDRESS DATABASE PURSUANT TO N.C.G.S. 160A-461. RESOLUTION ACCEPTING THE FISCAL YEAR 2013 ANNUAL TAX SETTLEMENT AND ADOPTION OF AN ORDER TO COLLECT CURRENT TAXES FOR 2013 (FISCAL YEAR ) AND DELINQUENT TAXES FROM 2004 THROUGH C-7. 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 FISCAL YEAR b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE FISCAL YEAR
3 FINANCE COMMITTEE MINUTES August 12, 2013 Page 3 General Government C-8. RESOLUTION AUTHORIZING THE ACCEPTANCE OF A DONATION FROM THE FORSYTH COUNTY FARM BUREAU FOR A NEW PUBLIC ADDRESS SYSTEM FOR THE CATTLE BARN AT THE DIXIE CLASSIC FAIRGROUNDS. C-9. APPROVAL OF FINANCE COMMITTEE SUMMARY OF MINUTES - July 8, C-1. RESOLUTION ACCEPTING OFFER FROM NORTH CAROLINA BAPTIST HOSPITAL - Property located at 121 Polo Road. In response to Council Member Clark s question, Mr. Lee Garrity, City Manager, indicated staff will discuss possible public safety uses for the facility during the Public Safety Committee meeting. Council Member Clark noted the City does not usually receive buildings this nice and suggested taking a look at how it can be used. In response to Chair Merschel s question, Mr. Garrity stated there are no property taxes currently being paid on the building. The City will assume the operating and maintenance costs of the facility. In response to Chair Merschel s question, Mr. Derwick Paige, Assistant City Manager, explained the Special Operation Response Team (SORT) is made up of multiple agencies. SORT is relocating to another facility that is being provided to them by Baptist Hospital. Chair Merschel requested a list of the different agencies that comprise SORT. Council Member Burke directed staff to ensure that the questions raised by the Committee are answered. Mayor Joines thanked Baptist Hospital for making the donation. He indicated the donation was a way of assisting the City with the operating costs of Sunday bus service. Mr. Paige added that if the City decides to use the building for public safety purposes, there will be some costs associated with upgrading the facility to meet the seismic building codes. Council Member Clark made a motion to approve the item. The motion was duly seconded by Council Member Burke and carried unanimously.
4 FINANCE COMMITTEE MINUTES August 12, 2013 Page 4 C-4(a). RESOLUTION AWARDING PURCHASE ORDER FOR SELF CONTAINED BREATHING APPARATUS EQUIPMENT - MES-Municipal Emergency Services, Inc. - $627, Council Member Clark expressed concern about spending nearly $700,000 because the equipment is out of warranty. Mr. Jerry Bates, Purchasing Director, noted there are regulations that will expire by The City is using several units that are outside of the warranty and do not meet current regulations. Staff intends to purchase half of the needed replacements this year and the other half in Fiscal Year 2015 to be in complete compliance with the regulations. In response to Council Member Clark s question, Mr. Greg Turner, Assistant City Manager, indicated the National Fire Protection Association is the federal government agency that sets the regulations. Council Member Clark requested additional information on the regulations. Chair Merschel indicated that by consensus, the item will be held in Committee pending additional information on regulations and requirements. GENERAL AGENDA G-1. RESOLUTION AUTHORIZING ECONOMIC DEVELOPMENT ASSISTANCE TO WAKE FOREST UNIVERSITY HEALTH SCIENCES FOR THE EXPANSION OF WAKE FOREST INNOVATION QUARTER. Mr. Paige gave the staff presentation on this item. He noted the project will create 450 jobs, 50 of which will be new jobs. The developers are committed to hiring at least 50% of the contractors locally. The developers also have agreed to a goal of at least 10% Minority and Women Business Enterprise program participation. In response to Council Member Clark s question, Mr. Paige indicated that as a special condition of the agreement, the property that will be made available by not installing surface parking will have to be developed for taxable purposes if it is to be developed during the incentive grant term. Council Member Adams in at 4:14 p.m. Council Member Burke noted Wake Forest University is creating a positive atmosphere in the downtown area. She stated she is not against the project, but will hold her vote until Monday after all questions have been answered. Chair Merschel requested reducing the estimated $90.9 million investment cost to a minimum $90 million in the agreement.
5 FINANCE COMMITTEE MINUTES August 12, 2013 Page 5 In response to Chair Merschel s questions, Mr. Paige explained the City will obtain a form from Wake Forest that shows the wage rates and benefits for each employee working at the property. He indicated the provision for relocating or creating at least 450 full-time jobs within five years of receipt of the first disbursement of City funds was based on the projected business model. He stated he will find out if a three year term would work for Wake Forest. He noted Mr. Eric Tomlinson, President of Wake Forest Innovation Quarter, indicated Wake Forest Innovation Quarter is a whollyowned subsidiary. In response to Chair Merschel s questions, Mrs. Angela Carmon, City Attorney, indicated the actual economic development agreement will state the Innovation Quarter will create a minimum of 50 jobs at a minimum of $20,000. She added staff will check to see if the Innovation Quarter should be listed on the agreement as a wholly-owned subsidiary. Chair Merschel suggested increasing the minimum wage to at least $26,000, an amount between a living wage for a single adult and a living wage for a single adult with a child. Council Member Clark suggested checking with Wake Forest about putting in an average wage. He expressed concern that a minimum of $26,000 could eliminate a lot of jobs. Chair Merschel suggested placing the item on the City Council s September 3 meeting agenda to allow Council Member Leight time to review the item and staff time to answer questions raised by the Committee. Council Member Burke suggested private businesses should be encouraged to offer better salaries than the City offers. She noted the City should prepare to meet companies job needs. Mr. Tomlinson introduced himself and noted he has attended several Committee and Council meetings and is pleased to do so. Ms. Judith Burrell stated she is the liaison for public outreach for the Innovation Quarter and the University and her role is to ensure the avenues of communication are broadened and questions are answered. Mr. Tomlinson indicated one of his responsibilities is to attract companies to the city. He noted earlier in the day, he met with several prospective companies and worked on the design of the technology incubator that will be located inside the facility. Ms. Burrell noted the Innovation Quarter has a SciTech program which engages local middle and high school students in learning activities. Mayor Joines indicated Wake Forest is taking all the risk in the project and if they do not pay property taxes on the investment, the City will not make an incentive payment. He added the City will receive 38 years of property taxes in the deal.
6 FINANCE COMMITTEE MINUTES August 12, 2013 Page 6 Chair Merschel requested staff discuss the reimbursement schedule with the entities involved. She also requested to know how much of the investment is going towards the cost of the deck and how much is going towards normal City infrastructure improvements. Council Member Burke made a motion to forward the item to the City Council s September 3 meeting without a recommendation. The motion was duly seconded by Council Member Clark. Council Member Clark requested to know the percentage of City employees who earn less than $26,000 and those who earn less than $20,000. Mayor Joines noted one percent of the project will be used to fund public art in the community. The motion to forward the item was carried unanimously. G-2. CONSIDERATION OF A RESOLUTION APPROVING A SMALL BUSINESS LOAN FOR COMPRISES CONSULTING, LLC. Mr. Paige explained the Small Business Loan Committee reviews loan requests ranging from $10,000 up to an average of $35,000, but can go up to $100,000. The Loan Committee consists of representatives from business, banking, law, and one City staff member. This item is appealing the Loan Committee s decision to deny a citizen s application. Mr. Ken Millett, Small Business Liaison, gave the staff presentation on this item. He noted the Loan Committee denied the request because the firm does not have a tangible client base and because the use of funds is for more soft costs than the City's program will typically fund. Mr. Edgar Simon, Jr Valley Court, Unit B, CEO of Comprises Consulting, LLC gave a presentation on his company s history and objectives. In response to Chair Merschel's question, Mr. Simon indicated his firm does not have an active client list at this point. In response to Council Member Burke's question, Mr. Andrew Dreyfuss, 2711 Buena Vista Road, Chair of the Loan Committee, indicated having a client list, more equity, and more partners could have made the Loan Committee more comfortable with approving Mr. Simon s application. In response to Council Member Burke's questions, Mr. Millett explained that an applicant can reapply to the Loan Committee if it is established that the business plan has changed significantly. He indicated he met with Mr. Simon on several occasions prior to the Loan Committee considering the application and he would give Mr. Simon the same opportunity to meet with him before he applies again. In response to Mayor Joines question, Mr. Dreyfuss confirmed the firm s proposed equity is currently $900.
7 FINANCE COMMITTEE MINUTES August 12, 2013 Page 7 Council Member Clark indicated the S.G. Atkins Enterprise Center is a business incubator that may offer the services Mr. Simon needs. Council Member Montgomery in at 5:05 p.m. In response to Council Member Adams question, Mr. Paige noted that when a business is seeking a loan and does not have tangible collateral, there is a greater risk to the City s resources. He added staff can make changes to the program after looking at how other cities handle such requests. G-3. ORDINANCE AMENDING THE ANNUAL APPROPRIATION AND TAX LEVY ORDINANCE FOR THE FISCAL YEAR Institute for Dismantling Racism. Mr. Evan Raleigh, Performance Reporting and Engagement Manager, gave the staff presentation on this item. In response to Council Member Clark s question, Reverend Willard Bass, 3412 Milhaven Road, Executive Director of the Institute for Dismantling Racism (IDR) indicated the fee for participating in the program is $350 per person. Council Member Clark noted the City has spent approximately $17,000 so far on IDR s training for City employees. Council Member Burke made a motion to approve the item. The motion was duly seconded by Chair Merschel. Council Member Montgomery noted it is essential for the City to have support on racial issues. Council Member Adams requested a timeline, feedback, and information on the 74 City employees who have participated in the training program. Mr. Garrity noted he participated in one of IDR's classes and it was one of the best diversity training programs he has attended. He added IDR has been a strong partner in assisting the City when issues arise. The motion carried on a vote of two in favor, none opposed, and one abstaining. Those voting in favor of the motion were Chair Merschel and Council Member Burke, with Council Member Clark abstaining. Chair Merschel noted the item will be placed on the General Agenda at next Monday s City Council meeting. G-4. PROPOSED DOWNTOWN BUSINESS IMPROVEMENT DISTRICT REPORT. Mr. Ben Rowe, Budget/Evaluation Director, gave the staff presentation on this item.
8 FINANCE COMMITTEE MINUTES August 12, 2013 Page 8 In response to Council Member Clark's questions, Mr. Rowe indicated the tax rate would be adopted each year during the budget process. Mr. Mark Dunnagan, 1260 Yorkshire Road, noted by State statute, the City would notify all property owners of the proposed Business Improvement District (BID) with hopes that they would then notify tenants. He added the Downtown Winston-Salem Partnership (DWSP) maintains a database of all tenants in the BID and could notify them of the public hearing. Council Member Taylor in at 5:29 p.m. In response to Council Member Clark s question, Mr. Rowe indicated the Downtown Business Improvement District Advisory Committee would develop a work plan for the DWSP to implement. Council Member Clark requested to know how many property owners endorse the plan. Council Member Burke noted downtown businesses want protection. She thanked the Downtown Winston-Salem Partnership for its work in making the downtown area livable. In response to Council Member Montgomery s question, Mrs. Carmon indicated the Advisory Committee position held by the City Manager or his designee would be exempt from term limits. In response to Council Member Montgomery s question, Mr. Rowe confirmed that future appropriations would be restricted to the BID. In response to Chair Merschel s question, Mr. Rowe stated staff will provide a resolution at next Monday s City Council meeting that will accept the report and set the date for a public hearing. In response to Mrs. Carmon s question, Mr. Dunnagan indicated DWSP would make all of its records available for the renters in the proposed BID. Mayor Joines out at 5:33 p.m. G-5. REVENUE BILLING AND COLLECTIONS COMPLIANCE AUDIT PRESENTED BY CHERRY BEKAERT, LLC. Mrs. Lisa Saunders, Chief Financial Officer, noted Committee members received an executive summary and a report from Cherry Bekaert, LLC. She added the City is in compliance with all federal, State, and City ordinances for revenue and billing collections. She also noted the report contains minor management recommendations. Chair Merschel thanked the representatives from Cherry Bekaert, LLC for attending and added the Council Members will direct any questions they may have to Mrs. Saunders. ADJOURNMENT: 5:35 p.m.
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