SUMMARY OF MINUTES FINANCE COMMITTEE 4:00 P.M., MONDAY, DECEMBER 9, 2013 COMMITTEE ROOM ROOM 239, CITY HALL
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1 SUMMARY OF MINUTES FINANCE COMMITTEE 4:00 P.M., MONDAY, DECEMBER 9, 2013 COMMITTEE ROOM ROOM 239, CITY HALL MEMBERS PRESENT: OTHERS PRESENT: Mayor Allen Joines 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 James Taylor, Jr. Council Member Jeff MacIntosh (in at 4:11 p.m.) Chair Clark called the meeting to order and stated that without objection, the Committee would first consider the Consent Agenda. Council Member Adams pulled Item C-1. Council Member Burke pulled Item C-2(d). Chair Clark pulled Item C-3. No other items were pulled for discussion. Council Member Montgomery made a motion to approve the balance of the Consent Agenda. The motion was duly seconded by Council Member Adams and carried unanimously. CONSENT AGENDA Finance/Budget C-2. CONSIDERATION OF ITEMS RELATED TO CONTRACTS: a. RESOLUTION AWARDING CONTRACT FOR PURCHASE OF READY MIXED CONCRETE - Hartley Ready Mix Concrete Mfg., Inc. - $305,055 (Estimated Amount). b. RESOLUTION AWARDING CONTRACT FOR ASPHALTIC CONCRETE FOR STREETS DIVISION - Yadkin Valley Paving, Inc. - $2,473,810. c. RESOLUTION AWARDING CONTRACT FOR CONCRETE PIPE - Foltz Concrete Pipe Co. - $122,
2 FINANCE COMMITTEE MINUTES December 9, 2013 Page 2 Transportation e. RESOLUTION AWARDING CONTRACT FOR ROOF REPLACEMENT AT THE UTILITIES CONSTRUCTION AND MAINTENANCE ADMINISTRATION BUILDING - Radco Construction Services, Inc. - $102,500 (Alternate Bid). C-4. RESOLUTION APPROVING AN INCREASE IN THE PURCHASE ORDER TO SMITH-ROWE, LLC FOR WORK ASSOCIATED WITH THE MOTOR ROAD EXTENSION PROJECT - $150,000. General Government C-5. C-6. ORDINANCE DESIGNATING CERTAIN PROPERTY AS A HISTORIC LANDMARK - Chatham Manufacturing Company - Western Electric Company Complex, 800 Chatham Road. Public Hearing: December 16, RESOLUTION DECLARING CERTAIN CITY OWNED EQUIPMENT SURPLUS AND AUTHORIZING THE SALE THEREOF. C-7. APPROVAL OF FINANCE COMMITTEE SUMMARY OF MINUTES - November 18, C-1. RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH UNITED HEALTHCARE FOR THE PROVISION OF A RETIREE MEDICARE ADVANTAGE PLAN. Council Member Adams requested a comparison of the Blue Cross and Blue Shield plan and the United Healthcare plan. In response to Council Member Burke s question, Mrs. Carmen Caruth, Human Resources Director, indicated the department receives City employee feedback about insurance plans year round. A Healthcare Task Force consisting of Human Resources, Finance, Budget, and Employee Medical staff makes decisions about insurance changes. Council Member Burke suggested establishing a committee of other City employees who can provide input on the insurance plan. In response to Council Member Leight s question, Mrs. Caruth indicated Blue Cross and Blue Shield did not receive approval from the North Carolina Department of Insurance in time for staff to offer the plan to employees. Chair Clark expressed concern about the inconvenience for employees switching plans. He requested information on why the State did not approve Blue Cross and Blue Shield s plan. Council Member Burke made a motion to approve the item. The motion was duly seconded by
3 FINANCE COMMITTEE MINUTES December 9, 2013 Page 3 Council Member Adams and carried unanimously. C-2. (d) RESOLUTION AWARDING PURCHASE ORDER FOR CHEVROLET IMPALAS - Bobby Murray Chevrolet, Inc. - $177,600. Council Member Burke asked staff to make an effort to support local businesses that bid on City contracts and purchase orders. Mr. Jerry Bates, Purchasing Director, explained staff works diligently to identify local car dealerships, but by law, the City is required to award a purchase order to the lowest responsive bidder. In response to Council Member Montgomery s question, Mr. Bates confirmed the City may reject all bids. Council Member MacIntosh in at 4:11 p.m. Council Member Adams made a motion to approve the item. The motion was duly seconded by Council Member Montgomery and carried unanimously. C-3. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR Mr. Ben Rowe, Budget and Evaluation Director, gave the staff presentation on this item. Council Member Montgomery made a motion to approve the item. The motion was duly seconded by Council Member Adams. Chair Clark expressed concern about encumbering the City s budget by earmarking funds, noting sweepstakes operations are an uncertain revenue stream. Council Member Montgomery stated there is a need for identifying a source of revenue to continue to fund the Revitalizing Urban Commercial Areas (RUCA) program. Council Member Adams noted the need for thinking outside of the box to find ways to help the entire community. Council Member Taylor noted the Southeast Ward has experienced a lot of economic development as a result of the RUCA program. He asked the Committee to support the item and continue to revitalize urban commercial areas. Council Member Leight noted RUCA projects have been financed through the Dell Repayment Fund, which has been earmarked for economic development. She added there is no difference between earmarking the sweepstakes revenue for the RUCA program or combining that money with the Dell Repayment Fund.
4 FINANCE COMMITTEE MINUTES December 9, 2013 Page 4 Mayor Joines stated the RUCA program has proven its merit in the community. He suggested making good use of the earmarked sweepstakes revenues for as long as they are available. The motion 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. GENERAL AGENDA G-1. RESOLUTION AUTHORIZING A LEASE AGREEMENT WITH COLISEUM PARK PLAZA CORPORATION PROVIDING SPACE FOR THE RELOCATION OF EMPLOYEE MEDICAL/HR TRAINING/ENGINEER FIELD OFFICE Coliseum Drive. [Continued from the November meetings of the Finance and Public Works Committees.] Mr. Greg Turner, Assistant City Manager, gave the staff presentation on this item. In response to Council Member Montgomery s question, Mr. Turner explained staff looked for a facility with at least 5,500 square feet of space to accommodate the Engineer Field Office and another 5,500 square feet for the Employee Medical/Human Resources training operations. The facility must also have adequate parking space and the ability to accommodate heavy duty pavement and large vehicles. He indicated staff identified two sites that can house both the Employee Medical/Human Resources training operations and the Engineer Field Office. There are six to eight sites that can house the Engineer Field Office only. Council Member Montgomery made a motion to relocate the Employee Medical/Human Resources Training operations to the Coliseum Drive site and relocate the Engineer Field Office to the Fifth Street site. The motion failed due to the lack of a second. In response to Council Member Adams question, Mr. Turner explained there was neither time for the owners of the Thirty-Second Street site to provide staff with information about the upfit costs of the facility nor time for staff to survey the inside of the building. Mayor Joines noted the short-term lease can be used for development in parts of the community such as the Coliseum Drive area. He added that separating the relocated operations is an opportunity to spread economic impact throughout the city. In response to Council Member MacIntosh s question, Mr. Turner indicated the annual lease for the Coliseum Drive site includes the facility s upfit costs. In response to Council Member Leight s question, Mr. Turner stated staff will look into building a fence to secure the portion of City Yard affected by the Salem Creek Connector.
5 FINANCE COMMITTEE MINUTES December 9, 2013 Page 5 In response to Council Member Burke s questions, Mr. Turner indicated staff ruled out the Thirty- Second Street location from consideration because of its distance from City Yard. He added that as a condition of the lease, the landlord is required to upfit whichever facility is selected. Council Member Montgomery noted the lease rate for the Fifth Street site would be at or below the costs associated with relocating crime prevention operations to the facility. Mr. Lee Garrity, City Manager, suggested the Committee forward the item to the City Council without a recommendation while staff meets with the landlords to gather additional information. Council Member Burke made a motion to forward the item to the City Council without a recommendation and pending additional information on the Thirty-Second Street, Fifth Street, and Coliseum Drive sites. The motion was duly seconded by Council Member Adams and carried unanimously. G-2. CONSIDERATION OF ITEMS RELATING TO FUNDING FOR WIRELESS BROADBAND INTERNET SERVICE AT SEVEN MULTI-FAMILY RENTAL DEVELOPMENTS: [This item was remanded to Finance Committee by City Council at its October 28, 2013 meeting.] a. RESOLUTION AUTHORIZING FUNDING TO NOVATION BROADBAND FOR CONTINUATION OF WIRELESS BROADBAND INTERNET SERVICE AT SEVEN MULTI-FAMILY RENTAL DEVELOPMENTS. b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE FISCAL YEAR Mr. Derwick Paige, Assistant City Manager, gave the staff presentation on this item. In response to Council Member Burke s question, Mr. Paige indicated the Winston-Salem/Forsyth County School System is not able to track the correlation between internet access and specific students growth. The schools were able to provide data that showed that students exceeded growth compared to the previous school year. Internet access may have contributed to that growth. In response to Council Member Adams questions, Mr. Paige stated internet service is offered to all of the units in the rental developments. He added that residents are currently paying for internet service because there has been a disruption in service as a result of the City s contract ending. In response to Council Member Adams question, Mr. Chris Ecton, representing Innovation Broadband noted his firm is also working with the City of Raleigh on a similar project. Council Member Montgomery noted the project is an opportunity to make an impact in areas of the community that are dealing with economic issues.
6 FINANCE COMMITTEE MINUTES December 9, 2013 Page 6 In response to Council Member Burke s questions, Mr. Ecton stated he met with the property manager at LaDeara Crest Estates but not the residents of the complex. Chair Clark inquired if Internet access is a necessity. He further inquired to what degree the City should subsidize Internet access for residents of the complexes. Mr. Paige noted the City has invested in the seven apartment complexes in the past and is not trying to compete with the private sector by subsidizing but instead use Community Development Block Grant funding to provide assistance. Council Member Adams suggested staff look at ways to partner with other community organizations to address student success. Council Member Burke made a motion to approve the item. The motion was duly seconded by Council Member Adams. In response to Council Member MacIntosh s question, Mr. Ecton explained the service is provided at a bulk rate to the complexes and can be averaged out to a per unit price. In response to Council Member Taylor s question, Mr. Garrity stated funding for the project will come from housing finance assistance funds. The motion to approve the item was carried unanimously. Mr. Garrity noted that earlier this year, the City Council approved the City s participation in the North Carolina Next Generation Network Request for Proposals for Gig.U high speed broadband Internet project. Staff is in the process of reviewing the proposals. The design involves creating high speed infrastructure that competes with the highway and allowing competitive low-priced internet access for citizens at a reasonable rate. Mr. Turner indicated staff will bring an item regarding Gig.U to the Committee within the next few months. G-3. PRESENTATION OF THE CITY OF WINSTON-SALEM ANNUAL FINANCIAL REPORT FOR FISCAL YEAR Mrs. Lisa Saunders, Chief Financial Officer, introduced Mr. Eddie Burke, representing Cherry Bekaert, who gave the presentation on this item. In response to Council Member Adams question, Mr. Burke explained staff will follow up with an action plan. He added there is a timeline included in the financial statement. ADDITIONAL ITEM Chair Clark noted a Council Member had expressed interest in changing the Committee s meeting
7 FINANCE COMMITTEE MINUTES December 9, 2013 Page 7 start time. Council Member Montgomery suggested the meetings begin at 5:00 p.m. instead of 4:00 p.m. Council Member Taylor indicated he did not see a need to change the time because the meetings are televised. Council Member Leight suggested moving the Tuesday Committee meetings to an earlier time similar to the Monday Committee meetings schedule. Council Member Burke stated she favored not changing the Monday meeting time. Chair Clark requested staff poll the Council Members about the Committee meetings schedule. ADJOURNMENT: 5:12 P.M.
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