SUMMARY OF MINUTES FINANCE COMMITTEE. 4:30 p.m., Monday, January 12, 2015 COMMITTEE ROOM. Room 239, City Hall
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1 SUMMARY OF MINUTES FINANCE COMMITTEE 4:30 p.m., Monday, January 12, 2015 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 (in at 4:41p.m.) Council Member Molly Leight Council Member Dan Besse Council Member Jeff MacIntosh Council Member James Taylor, Jr. Chair Clark called the meeting to order and stated that without objection, the Committee would first consider the Consent Agenda. Council Member Adams removed Items C-1, C-4, C-6, C-8 and C-11, Council Member Burke removed Item C-5, and Chair Clark removed Item C-7 for discussion. No other items were removed. 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 C-2. C-3. RESOLUTION AUTHORIZING THE SALE OF CERTAIN CITY-OWNED PROPERTY UNDER THE UPSET BID PROCEDURE N.C.G.S. 160A-269, 958 West Clemmonsville Road (South Ward) [$450]. RESOLUTION AUTHORIZING ACQUISITION OF PROPERTY AT THE CORNER OF REYNOLDA ROAD AND WOODBERRY DRIVE FOR FUTURE REPLACEMENT OF FIRE STATION NUMBER EIGHT LOCATED AT 2417 REYNOLDA ROAD. (Northwest Ward) [$212,000]. Finance/Budget
2 FINANCE COMMITTEE MINUTES JANUARY 12, C-9. C-10. RESOLUTION CERTIFYING AND DECLARING THE RESULTS OF THE SPECIAL BOND REFERENDUM ON THE BOND ORDER AUTHORIZING THE ISSUANCE OF BONDS AND HELD FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA. RESOLUTION AUTHORIZING THE CITY MANAGER TO DONATE TABLES AND CHAIRS TO THE PHILO-HILL MAGNET ACADEMY OF WINSTON- SALEM. a. RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT LOAN TO WINSTON-SALEM BUSINESS, INC. - Union Cross Business Park - $2,500, b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR General Government C-12. ADOPTION OF AN ORDINANCE FOR LOCAL HISTORIC LANDMARK DESIGNATION OF THE REYNOLDS BUILDING, 51 EAST FOURTH STREET LOCATED IN THE EAST WARD AND THE CHARLES A. COOPER HOUSE, 411 SOUTH MAIN STREET LOCATED IN THE SOUTH WARD. a. ORDINANCE DESIGNATING CERTAIN PROPERTY AS A HISTORIC LANDMARK - The Reynolds Building, 51 East Fourth Street (East Ward). b. ORDINANCE DESIGNATING CERTAIN PROPERTY AS A HISTORIC LANDMARK - The Charles A. Cooper House, 411 South Main Street (South Ward). C-13. APPROVAL OF FINANCE COMMITTEE SUMMARY OF MINUTES - December 8, Property Matters C-1. RESOLUTION AUTHORIZING AN EXTENSION OF A LEASE AGREEMENT WITH KDM OF WILMINGTON, LLC PROVIDING A SITE FOR A LEAF MULCHING FACILITY (North Ward). In response to Council Member Adams, Mr. Gregory M. Turner, Assistant City Manager, replied this will not be a new lease but a two year renewal on an existing lease. He added the location is on 32 nd Street across from Employee Medical Services. In response to Chair Clark, Mr. Kirk Bjorling, Real Estate Administrator, indicated the site is approximately three acres.
3 FINANCE COMMITTEE MINUTES JANUARY 12, Mr. Turner explained that the City does have a facility located on Forum Parkway, but it is not as geographically desirable as the location on 32 nd Street. Council Member Burke requested the purchase amount of the Forum Parkway location. Council Member Burke and carried unanimously. Community and Economic Development C-4 RESOLUTION FORGIVING THE OUTSTANDING BALANCE OF AN ECONOMIC DEVELOPMENT LOAN FOR GET INTERACTIVE, INC. [$50,000]. Council Member Adams asked for a report on how many loans the City has forgiven in the last two years, with information on the amounts of the loans, the purpose of the loans, and who received the loans. Chair Clark requested better documentation on what the City receives when an in-kind service is exchanged for a loan payment. Council Member Burke and carried unanimously. C-5. CONSIDERATION OF ITEMS RELATED TO REQUESTS FOR FINANCIAL ASSISTANCE FROM WINSTON-SALEM BUSINESS, INC.- Speculative Building: a. RESOLUTION APPROVING AN ECONOMIC DEVELOPMENT LOAN TO WINSTON-SALEM BUSINESS, INC. - Union Cross Business Park - $2,500, b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR Mr. Derwick Paige, Assistant City Manager, gave the staff update on this item. In response to Chair Clark, Mr. Robert Leak, Winston-Salem Business, Inc. (WSBI), replied the City will be in first lien position on the property. He responded to Council Member MacIntosh s question stating he believes he will have no problem selling the building once completed. Mr. Leak indicated his clients are looking for existing buildings this size and larger but the City does not have the inventory. Council Member Taylor inquired what would happen if the facility is not purchased. Mr. Leak replied he will sell the building to a developer that will lease the property.
4 FINANCE COMMITTEE MINUTES JANUARY 12, Council Member Burke and carried unanimously. C-6. CONSIDERATION OF ITEMS RELATED TO REQUESTS FOR FINANCIAL ASSISTANCE FROM WINSTON-SALEM BUSINESS, INC. - Enterprise Park Boulevard: a. RESOLUTION APPROVING FINANCIAL ASSISTANCE TO WINSTON- SALEM BUSINESS, INC. - Enterprise Park Boulevard - $500, b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR Mr. Leak gave the update on this item. In response to Council Member Burke, Mr. Leak replied he held a meeting in December for the tenants of the Business Park. Two-thirds of the tenants attended this meetings and those tenants were in favor of assisting with half the cost of the road. He indicated he is currently speaking with the other tenants. In response to Council Member Besse, Mr. Leak stated the only trees on the prepared site are small trees. The mature trees are in the corner of the Business Park and the size of the site exceeds the City ordinance for landscaping. Council Member Montgomery inquired if WSBI has shown the remaining undeveloped site in the Business Park to interested companies with the road completed. Mr. Leak indicated they had. Council Member Burke and carried on a vote of three in favor, none opposed and one abstaining. Those voting in favor of the motion were Council Members Clark, Adams and Burke. Council Member Montgomery abstained from the vote. Public Safety C-7. CONSIDERATION OF ITEMS RELATING TO 911 PUBLIC SAFETY COMMUNICATIONS CENTER. a. RESOLUTION AUTHORIZING THE EXECUTION OF A CONTRACT BETWEEN THE CITY OF WINSTON-SALEM AND BELLSOUTH TELECOMMUNICATIONS, LLC/AT&T. b. ORDINANCE AMENDING THE PROJECT BUDGET ORDINANCE FOR THE CITY OF WINSTON-SALEM, NORTH CAROLINA FOR THE FISCAL YEAR
5 FINANCE COMMITTEE MINUTES JANUARY 12, Mr. Barry Rountree, Chief of the Winston-Salem Police Department, gave the staff presentation on this item. In response to Chair Clark, Chief Rountree explained the City of Winston-Salem and Forsyth County serve as backup for each other. He noted that shared information between the Winston- Salem Police Department and the Forsyth County Sherriff Department was secure, and the information being shared would not be detailed personal information. In response to Council Member Montgomery, Ms. Rebecca Boles, Public Safety Communications Director, added larger cities like Greensboro and Durham are already using this technology and have not had any issues with security. She stated this service would not improve the issues 911 has with location of cell phones and internet phone users but they are looking into improving the reliability of locating these calls. In response to Chair Clark, Chief Rountree explained 911 can gather the location of cell phones through latitude and longitude, rather than GPS technology. In response to Council Member Montgomery, Ms. Boles indicated that many Voice-over- Internet providers are including the home address of their customers in their database technology. Council Member Montgomery and carried unanimously. Leisure Services C-8. CONSIDERATION OF ITEMS RELATED TO ARCHITECTURAL DESIGN SERVICES FOR RECREATION FACILITIES: a. RESOLUTION AUTHORIZING AN AGREEMENT WITH STEELE GROUP ARCHITECTS, PLLC FOR PROFESSIONAL ARCHITECTURAL DESIGN SERVICES FOR THE RENOVATION OF WINSTON LAKE PARK [$411,125]. b. RESOLUTION AUTHORIZING AN AGREEMENT WITH NORWOOD ARCHITECTURE & DESIGN, INC. FOR PROFESSIONAL ARCHITECTURAL DESIGN SERVICES FOR THE RENOVATION OF SALEM LAKE PARK. [$338,000]. c. RESOLUTION AUTHORIZING AN AGREEMENT WITH STIMMEL ASSOCIATES, P.A. FOR PROFESSIONAL ARCHITECTURAL DESIGN SERVICES FOR THE DEVELOPMENT OF JAMISON PARK [$351,885]. d. RESOLUTION AUTHORIZING AN AGREEMENT WITH STIMMEL ASSOCIATES, P.A. FOR PROFESSIONAL ARCHITECTURAL DESIGN SERVICES FOR THE DEVELOPMENT OF QUARRY PARK.
6 FINANCE COMMITTEE MINUTES JANUARY 12, Council Member Adams inquired how the City verifies M/WBE and if the City conducts on-site verification. Mr. Turner indicated companies submit sworn affidavits and staff reviews the affidavits against the detailed bills to ensure they are using the M/WBE consultants they identified. This is minority firms as opposed to minority individuals. The City does not preform on-site verifications. In response to Council Member Montgomery, Mr. Turner explained the company that provided the master plans for the Winston Lake project was not the company that was chosen to complete the Winston Lake project. Chair Clark requested a spreadsheet be provided for Council Member Montgomery of the breakdown of points provided per category for the Winston Lake project. Council Member Burke and carried unanimously. C-11. RESOLUTION APPROVING THE FEDERAL FISCAL YEAR 2016 FEDERAL AGENDA FOR THE CITY OF WINSTON-SALEM. In response to Council Member Adams, Ms. Leslie Mozingo, Strategics Consulting, LLC, replied she would prepare a report explaining the work done on behalf of the City by her firm over the last two years. Council Member Montgomery and carried unanimously. GENERAL AGENDA G-1. RESOLUTION AUTHORIZING ADDITIONAL FINANCIAL ASSISTANCE FOR PREVIOUSLY APPROVED REVITALIZING URBAN COMMERCIAL AREA PROJECT---SOUTHEAST PLAZA SHOPPING CENTER. Mr. Ritchie Brooks, Director Community and Business Development Office, gave the staff presentation on this item. In response to Chair Clark, He replied he was not aware of the City giving $2 million in assistance to this type of project in the past. He replied to Council Member Burkes s question stating the City does have several other RUCA projects at this time. The financing structure for the existing RUCA projects is different than what is proposed for Southeast Plaza. The existing RUCA projects are under the old guidelines which were 50% low interest loans and 50% forgivable loans. The City would need to look at what portion of the existing RUCA projects loans are low interest loans and converting those low interest loans into a grant or a forgivable loan or a combination of the two.
7 FINANCE COMMITTEE MINUTES JANUARY 12, Mr. Derwick Paige, Assistant City Manager, indicated there are currently seven other loans that are amortizing and have a current value of $408,194. If the City forgave these loans, it would be similar to what is being proposed for Southeast Plaza. In response to Council Member Montgomery, Mr. Paige replied the approximate total investment in Wake Forest Innovation Quarter is $10 million and the commitment to Brookstown Development Partners, LLC is approximately $28 million. Mayor Joines stated Southeast Plaza will provide a good return for the City. Council Member Leight requested RUCA project stakeholders be consulted prior to removing funds from their projects. Council Member Besse indicated he would like this Item brought to Council without the removal of $38,000 from West Salem Shopping Center and the inclusion of more detail on what the additional funds would be used for in the Southeast Plaza Shopping Center. Council Member Burke requested information on how much money the City would need to invest to convert the six acres of land into a park. Council Member Adams requested more information on the value of the six acres as well as additional information on the agencies the City has given money to out of previous budgets and the amount of that money that has not been used. Council Member Taylor agreed that he would support this resolution moving forward with the requested changes. He also stated he has had interest in the six acres from a local soccer league. In response to Council Member Montgomery, Mr. Brooks replied there is currently no timeline for previous RUCA projects, but the City has started to incorporate a timeline into some new projects. Council Member Adams made a motion to approve the item with removal of $38,000 for use by West Salem Shopping Center and further information on the use of funds for the Southeast Plaza Shopping Center. The motion was duly seconded by Council Member Montgomery. Those voting in favor of the motion were Council Members Adams and Montgomery. Council Members Clark and Burke abstained from the vote. G-2. GENERAL FUND FORECAST FOR FISCAL YEARS AND Mr. Trevor Minor, Director Budget and Evaluation Department, gave the staff presentation on this item. In response to Chair Clark, Mrs. Angela Carmon, City Attorney, replied due to a recent court case the City should not count on revenue from sweepstakes operations in the future, and at this time the City does not have a replacement revenue.
8 FINANCE COMMITTEE MINUTES JANUARY 12, In response to Council Member Montgomery, Mr. Minor replied the sales tax increase figure is a conservative amount. He stated the re-evaluation period by the County Tax Office will occur in In response to Council Member Burke, Mr. Lee Garrity, City Manager replied the property tax rate was adjusted when property values decreased to ensure the City would receive the same amount of property tax revenue. G-3. INFORMATION ON IMPLEMENTATION OF THE REVITALIZING URBAN COMMERCIAL AREAS 3 PROGRAM. This item will be considered at the February Committee meeting. G-4. INFORMATION ON TRANSFORMING URBAN RESIDENTIAL NEIGHBORHOODS. This item will be considered at the February Committee meeting. ADDITIONAL ITEM Chair Clark recognized Mr. Jimmy Bonham of 1617 East Fourteenth Street, Winston-Salem, North Carolina. Mr. Bonham requested notification from the City Attorney s Office concerning his request for Business Relocation Assistance. Chair Clark indicated that staff would follow up accordingly with Mr. Bonham. ADJOURNMENT: 5:57 p.m.
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