Finance Committee Meeting Summary – May 13, 2025
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Finance Committee Meeting Summary – May 13, 2025
The Finance Committee of the City of Winston-Salem met on Tuesday, May 13, 2025, at 4:00 PM in the City Council Chambers. Chair Robert C. Clark presided, with Mayor Pro Tempore Denise D. Adams, Council Member Annette Scippio, and Council Member James Taylor, Jr. present. Mayor Allen Joines and other council members also attended. The meeting covered a consent agenda, a financial audit report, debt financing, opposition to state legislation affecting street funding, an IT system update, and approval of a new health insurance administration contract. The meeting adjourned at 5:25 PM.
Consent Calendar
- C-2: Resolution awarding a construction contract for Muddy Creek Greenway Repairs (West Ward) to RES Environmental Operating Company, LLC for $827,597.62 – approved via consent, referred to City Council on June 2, 2025.
- C-4: Ordinance amending the FY2024-2025 Project Budget Ordinance – approved via consent, referred to City Council on May 19, 2025.
- C-5: Approval of the Finance Committee summary minutes from April 15, 2025 – approved via consent.
- Items C-1 and C-3 were pulled from the consent agenda for individual discussion and voted on separately.
Public Comments & Testimony
- No public comments were made.
Discussion Items
- C-1 – Police Vehicle Upfits Contract: Assistant Chief Christopher Diamont presented the resolution to award a contract to Brooks Network Services for $1,094,679.60. He explained that the previous vendor (MCA) failed to complete 13 vehicles from the FY2023-2024 budget, and Brooks agreed to finish those. The bid was not the lowest, but Brooks offered a five-year warranty, ballistic door panels for officer safety, and on-site repair services. The alternative vendor (Batteries of North Carolina) would charge $650 per vehicle for transport and did not include the ballistic panels. The contract covers 60 police vehicles currently awaiting upfitting. The motion to approve carried unanimously.
- C-3 – Innovation Quarter Stormwater Facility Rehabilitation: Keith Huff, Traffic Field Operations Director, presented the $1,649,285.00 contract with Freshwater Construction, LLC to refurbish the 15-year-old stormwater pond serving 266 acres of downtown. Work includes structural repairs, replanting for aesthetics, and graffiti removal. The pond is city-owned. Funds come from stormwater utility fees. The motion to approve carried unanimously.
- G-1 – Financial Statement Audit and ACFR: Daniel Gagerty (Cherry Bekard) and CFO Kelly Latham presented the FY2024 audit results. The city received an unmodified (clean) opinion. However, a material weakness was identified related to financial reporting of $6.7 million in transit grant receivables (recorded before grant execution) and $1.7 million in non-capitalizable costs in capital projects. A $3.8 million adjustment for opioid settlement revenue (to be recognized over 15 years) was also noted. The audit was delayed due to staffing turnover and a cybersecurity incident. The city’s fund balance is 55% (above the required 25%), and water/sewer coverage ratio is 0.59 (above the 0.50 threshold). The LGC will require a letter signed by a majority of council regarding the material weakness, late issuance, and a statutory budget violation (transit fund reporting). The report was for information only.
- G-2 – Limited Obligation Bonds (LOBs): CFO Kelly Latham presented a resolution to amend an installment purchase contract with the NC Municipal Leasing Corporation to issue up to $44 million in LOBs for capital projects approved in FY2023. The debt is collateralized by city buildings and requires LGC approval. Projects include park improvements (tennis/pickleball courts at multiple parks), the Bellview Recreation Center replacement, and Link Golf Course improvements. Several projects are already completed or underway; the city can reimburse itself. A public hearing is set for June 2, 2025. The motion to approve carried unanimously.
- G-3 – Opposition to Senate Bill 257 (Powell Bill Funds): City Attorney Camille French and Budget Director Scott Tesh presented a resolution opposing SB 257, which would restrict Powell Bill (gas tax) funds to cities with populations under 150,000, eliminating Winston-Salem’s eligibility. This would result in a loss of at least $8.7 million annually, impacting 30 miles of street resurfacing and supporting road maintenance. The funds are currently used for capital and operating street projects. The resolution criticizes the bill for singling out seven large cities. Council Member Taylor questioned the distinction from House Bill 765 (addressed the prior day). The motion to approve the resolution carried unanimously.
- G-4 – HRIS System Update: IT Director Tom Kureczka provided an informational update on replacing the current HR and payroll system (Cyborg, implemented in 1996) which reaches end-of-life December 31, 2025. The time-and-attendance system (Kronos) ends March 31, 2027. An RFP received 15 vendor responses; after evaluations, the city selected UKG (cloud-based). Implementation is expected by fall 2026 to meet the December 2026 deadline. A contract approval request will come in June 2025. No vote was taken.
- G-5 – CIGNA Insurance Contract: HR Manager Joy Simmons presented a resolution to award a contract to CIGNA for administration of the city’s self-funded health and dental insurance plan. Four proposals were received; United Healthcare was deemed non-responsive. CIGNA scored highest (462 points) and offered a three-year rate guarantee at the current $35.36 per member per month (with a 3% increase in years 4 and 5). Estimated annual administrative fees are $1,065,790; estimated pharmacy rebates are $4.6 million. CIGNA also subcontracts 14% of work to NC HUB-certified firms (Nutrition Plus and Blue Dove Promotions). The contract includes $422,278 in performance guarantees. Since moving to CIGNA in 2022, health care costs have averaged 5% annual growth versus 7-10% industry trend, with no plan design changes or premium increases for employees. The motion to approve carried unanimously.
Key Outcomes
- Consent Agenda Items (C-2, C-4, C-5) approved via consent; C-2 referred to Council June 2, 2025.
- C-1 (Police Vehicle Upfits) – Approved unanimously.
- C-3 (Stormwater Facility Rehab) – Approved unanimously.
- G-2 (Limited Obligation Bonds) – Approved unanimously; public hearing set June 2, 2025.
- G-3 (Opposition to SB 257) – Approved unanimously; resolution to be sent to state legislators.
- G-5 (CIGNA Insurance Contract) – Approved unanimously; new contract effective January 1, 2026.
- G-1 (Audit) – Informational; city staff to provide corrective action plan to LGC by end of week.
- G-4 (HRIS) – Informational; contract approval expected in June 2025.
- Next Steps: Council members to sign the LGC letter regarding audit findings; staff to finalize HRIS contract and monthly tracking of project list for LOBs.
Meeting Transcript
Motion second to approve the balance of the agenda if every yeah I'm assuming we were doing this verbally. All in favor say aye. Uh any opposed? Those are approved. We will do them in um numerical order. C one of the city clerk will please read that one. C one resolution awarding a contract for police vehicle upfits. Good afternoon. Uh Mr. Chairman. Do you have the floor if you'll give us a brief introduction? We'll do. I'm assistant chief diamet with the Winston Southern Police Department over the Executive Support Bureau. I'm here to talk today about a bid process that we put together for our police vehicle lighting packages. We have been using uh MCA, a local vendor for the last several years. They were unable to meet the uh contracted uh obligation of installing our vehicle upfits. Uh they did not complete 13 vehicles from what would have been the 2324 budget. Uh we found uh another vendor, Brooks uh out of um Gibsonville, North Carolina. They agreed to take on those vehicles and upfit them for us. They are currently returning those 13 vehicles to us now. Uh we've received about six of those vehicles back so far. Um I worked with Mr. Redfield and the police department did to try to do a five-year RFP bid out for our vehicles, which would be a change from the way we've been doing it in the past uh to be more efficient and to get our vehicles upfitted. Uh we currently have 60 vehicles that were purchased in this past budget uh that we are waiting to upfit. Uh they've been sitting here for several months now, and we have not been able to get them upfitted and out on the patrol where they need to be. Uh and here we are now coming on to another budget year, which we'll be bringing in more vehicles hopefully when the budget comes out. Uh so we we did end up going with what ended up being the highest bidder, but the reason we did so is because Brooks is offering uh services that the others are not. Uh federal signal is who we use for our lighting packages. Federal signal gave a professional reference for Brooks, as they are one of their high highest vendors. Uh Brooks also is going to be installing a ballistic door panel in the driver's side of all of our patrol vehicles, which we do not have now. Um that is that expense will stop multiple rounds uh taken to a driver's door should they be shot, so that incurs a large officer safety piece that is included in their bid. Uh and then additionally, they offer a five-year warranty uh where they will send technicians to us if we have any type of problem with any of the uh uh installation of any of the pieces, not just the lighting packages, but lock boxes, uh the panels in the back that uh the shields, any anything that they do installation on, they do a five-year. It's basically kind of like a bumper to bumper warranty that they do where they will fix those uh here in Winston Salem. They will send a technician here to fix those. Um we spoke with um batteries of North Carolina who also bid, they came in as the lowest. Uh we requested a uh upfit for them for the uh ballistic panels to be added into their doors, uh which came out to be about $2,000 per vehicle, which put them much closer to the 1,000 uh or $1,000 for that, uh, as well as there was not something factored into Brooks or into batteries bid, which was they are gonna charge us $650 per vehicle to transport them to their facility, which is just south of Raleigh, about a two and a half hour trip for us. Uh all of those things taken into consideration were why we decided that Brooks was going to be the best choice for us. Everything runs so well in our city, and we observe all of the regulations like the one with the lowest bidder, etc. But uh, I had seen these vehicles parked down there at the yard, and I kept wondering why aren't they on the street? So now I know. Thank you so much. Uh but I I move for approval. I just wanted us to see the complexity. Is there a second? Second. Motion second, any other questions or comments. Yes, ma'am. In light of the delay, uh has that hampered us being able to provide staff with the vehicles, and or do we get the 60 vehicles? What happens to the other fits on vehicles? The auction on the yes, yes, ma'am.
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