Finance Committee Meeting October 3, 2013 The City Council Finance Committee met on Thursday, October 3, 2013 for a called meeting in Council Chambers, located on the 2 nd floor of the Municipal Administration Building, 306 E. Colonial Avenue, Elizabeth City, NC. MEMBERS PRESENT: LATE ARRIVAL: MEMBERS ABSENT: OTHERS PRESENT: Councilwoman Anita Hummer, Chairwoman Mayor Joe Peel Councilman Ray Donnelly Mayor Pro Tem Lena Hill-Lawrence (Arrived at 10:10 a.m.) None City Manager Rich Olson Finance Director Sarah Blanchard Deputy City Clerk Vivian White The meeting was called to order by Chairwoman Hummer at 10:00 a.m. A moment of silent reflection was observed, after which Chairwoman Hummer led the Pledge of Allegiance to the American Flag. 1. Agenda Adjustments and Approval: Chairwoman Hummer called for any adjustments to and approval of the agenda. Motion was made by Mayor Joe Peel, seconded by Councilman Ray Donnelly, to accept the agenda as presented. The motion carried unanimously by Hummer, Peel and Donnelly. 2. Adoption of Various Budget Amendments: Chairwoman Hummer called on City Manager Olson for a summary of this item. Mr. Olson explained that there were three budget amendments for consideration by the Finance Committee. The first budget amendment is to record action taken by the Council at the last meeting on the award of Community Support Grants; the second amendment is to record the receipt of a bullet-proof vest grant by the police department; and finally, is an amendment to record forfeiture funds received by the police department. City staff recommends that these amendments, as detailed below, be forwarded to the City Council for consideration and approval: BE IT ORDAINED by the City Council of the City of Elizabeth City that the following amendments be made to the annual budget ordinance for the fiscal year ending June 30, 2014: SECTION I. That the General Fund Forfeiture Funds (103220.0030) and Police Department Travel & Education (105100.1400) be increased by $905. 1
(To record forfeiture funds received by Police Department.) SECTION II. That the General Fund Bulletproof Vest Grant (103490.5104) and Police Department Bulletproof Vest Expenditure (105100.3601) be increased by $2,000. (To record bulletproof vest grant funds.) SECTION III. That the General Fund Contingency (106620.6000) be decreased by $45,100 and the following Community Support Grants be increased: (106620.4610) Food Bank of the Albemarle 7,500 (106620.5820) YMCA 1,500 (106620.5830) Kids First 6,000 (106620.4540) Pasquotank Library 900 (106620.5866) Port Discover 7,500 (106620.5865) National Council of Negro Women 1,500 (106620.5840) River City CDC 5,000 (106620.5845) American Legion Post 84 1,500 (106620.5875) Albemarle Hospital Foundation 10,000 (106620.5883) SPCA 1,200 (106620.5884) SOULS 2,500 (To record community support contributions for FY 2013/14.) Motion was made by Mayor Joe Peel, seconded by Councilman Ray Donnelly, to recommend that the City Council approve the budget amendments as presented. The motion carried unanimously by Hummer, Peel and Donnelly. 3. Adoption of Budget Amendment for Water and Sewer Fund: Mr. Olson explained that in January 2012, the City entered into a Municipal Agreement with NCDOT to relocate a twenty inch and a six inch waterline, which were in conflict with the Knobbs Creek Bridge project. In addition, there were electrical lines that had to be relocated; but since the electric lines pre-dated the bridge, NCDOT had to pay 100% of the relocation cost. The waterlines that had to be moved had to be paid for by the City, since they were installed after the bridge was constructed. The estimated cost under the Municipal Agreement was $620,000, but the project came in at $290,150. Staff made arrangements with NCDOT to have the state pay for the relocation cost, with the City reimbursing the state over a three-year period at zero percent interest. The City was to begin payment within sixty days of invoicing by the Department but not later than one year after the project was let to contract. Since the City was having difficulty with the NCDOT contractor, staff refused to pay NCDOT by the August 18, 2013 deadline in an effort to hurry the contractor along. Since NCDOT did not receive payment from the City in a timely manner, $96,716.67 was deducted from the City s Powell Bill allocation. The following budget amendment will reimburse the City s Powell Bill account and charge the expense appropriately to the Water and Sewer Account. The budget amendment required reads as follows: 2
BE IT ORDAINED by the City Council of the City of Elizabeth City that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2014: SECTION I. That the Water & Sewer Retained Earnings Appropriated (313990.000) and DOT Water Line Reimbursement (318280.7311) be increased by $96,717. (To record 1 st of three installment payments for water line relocation for Knobbs Creek Bridge. Due to miscommunication between DOT and Public Works Director, this is being withheld from the City s Powell Bill Funds. This will require a transfer from Water & Sewer to General Fund to reimburse Powell Bill.) Councilman Donnelly inquired if the City lost anything in this transaction. Mr. Olson responded that the City lost nothing and that this was a bookkeeping procedure to properly expense the cost of the project. Motion was made by Councilman Ray Donnelly, seconded by Mayor Pro Tem Lena Hill- Lawrence, to recommend that the City Council approve the budget amendment as presented. The motion carried unanimously. 4. Purchase by NCDOT of two rights-of-way on property owned by the City of Elizabeth City in connection with the South Road Street bridge project: Mr. Olson explained that in order for NCDOT to construct the South Road Street bridge project, additional right of way is needed from the City. The first tract that NCDOT would like to acquire runs parallel to South Road Street and consists of 3,064 square feet in the City s cemetery property. The City earlier had this area probed to insure that no graves were in the area. NCDOT is also requesting acquisition of a small strip of land, which the City owns between the Herrington Road and South Road Street bridges, but is just north of the V where Herrington Road and South Road Street intersect. This piece of property consists of approximately 298 square feet. NCDOT has offered the City $1,725 for the cemetery parcel and $900 for the piece of property just south of the bridge. These offers are consistent with NCDOT s acquisitions and staff has no problem with the price. Chairwoman Hummer questioned Mr. Olson to assure no graves were present in the cemetery parcel. Mr. Olson responded that this parcel is actually in the flood plain and would not be usable. He also indicated that the City s 34 kv electrical line would not have to be relocated. Motion was made by Mayor Pro Tem Lena Hill-Lawrence, seconded by Councilman Ray Donnelly, to recommend that the City Council authorize Mayor Joseph W. Peel to execute all documents needed to convey to NCDOT two pieces of property on South Road Street by adoption of resolution. The motion carried unanimously. 5. Purchase by NCDOT of a right-of-way on property to be acquired by the City of Elizabeth City in connection with the South Road Street bridge project: 3
Mr. Olson explained that the City is scheduled to close tomorrow on the purchase of property from Tony and Tammy Rice on South Road Street. NCDOT also needs to acquire a strip of property from this parcel as right of way in connection with the construction of the South Road Street Bridge. Although NCDOT has already prepared all legal documents for the conveyance of the right of way by Mr. and Mrs. Rice, once the City s deed is recorded they will generate new documents in the City s name. City staff is asking that the Council approve the sale of a section of this property that will be acquired by the City in the amount of $4,675. Mr. Olson reported that staff met on Tuesday with NCDOT at the site; and it has been determined that there will be no issues in tying in Herrington Road to South Road Street at this location. Councilman Donnelly asked if it was premature to consider this item since the City did not yet own the parcel. Mr. Olson responded that everything should be settled tomorrow; however, if there is a problem, the item will be removed from the City Council agenda. Motion was made by Mayor Pro Tem Lena Hill-Lawrence, seconded by Councilman Ray Donnelly, to recommend that the City Council authorize Mayor Joseph W. Peel to execute all documents needed to convey this property to NCDOT by adoption of resolution. The motion carried unanimously. 6. Award of Bid for Street Resurfacing Project: Mr. Olson apologized for the lateness in providing the write-up for this request; however, the bid opening was held just yesterday. The City received two bids: one from RPC Construction, Inc. and the second from Barnhill Contracting, Inc. Barnhill bid $1,959,032.50 and RPC bid $1,928,858.75. Therefore, the low bidder is RPC. Mr. Olson explained the line item analysis used by staff in determining the per unit quantities for each bidder and reported that staff is very happy with the bids. Mr. Olson detailed the costs received for those projects, which had been prioritized in August by the City Council as follows: Crescent Drive, Brooks Avenue, Church Street, West Main Street, Poindexter Street parking lot, and resetting the brick pavers on a section of Selden Street. Mr. Olson answered several technical questions posed by the Finance Committee members. Motion was made by Mayor Joe Peel, seconded by Mayor Pro Tem Lena Hill-Lawrence, to recommend that the City Council authorize the City Manager to enter into a contract with RPC Contracting, Inc. for an amount not to exceed $1,260,000 (the amount appropriated from the Powell Bill Funds); and further direct the City Manager to report back to Council on a regular basis advising the Council of the progress being made on the Resurfacing Project and the status of the budget for this project. The motion carried unanimously. 7. Miscellaneous: Mr. Olson reported that the City had included the US 17 North sidewalk project match funding of $200,000 in the current fiscal year Powell Bill budget. He received a call from NCDOT advising that NCDOT has some money from a federal source and they will be taking over the project and paying the entire cost. The design work should begin in December 2013; bids should be received in April 2013, with construction to begin in June 2014. When you look at that segment, 4
the only missing link is from Knobbs Creek Drive to North Road Street. City staff will be evaluating that project, which will have some very expensive facets. Chairwoman Hummer inquired about the 17 South Sidewalk Project. Mr. Olson responded that a pre-bid meeting was being held concurrent with the Finance Committee meeting; and that four to five contractors were in attendance. The bridge over Knobbs Creek has been the stumbling block for this project, but bids are due back on October 22, 2013 for the project. There being no further business to discuss, Chairwoman Hummer called for a motion to adjourn. Motion was made by Mayor Pro Tem Lena Hill-Lawrence, seconded by Mayor Joe Peel, to adjourn. The motion carried unanimously. Chairwoman Hummer thanked everyone for attending and adjourned the meeting at 10:38 a.m. Councilwoman Anita Hummer Chairwoman Vivian D. White Deputy City Clerk 5