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HomeMy WebLinkAboutMay 2, 2006 Augusta Richmond County Commission REGULAR MEETING COMMISSION CHAMBER May 2, 2006 Augusta Richmond County Commission convened at 2:11 p.m., May 2, 2006, the Hon. Deke Copenhaver, Mayor, presiding. Present: Hons. Holland, Smith, Brown, Grantham, Hatney, Williams, Beard, Cheek, Bowles and Brigham, members of Augusta Richmond County Commission. Also present: Steve Shepard, Attorney; Fred Russell, Administrator; Lena Bonner, Clerk of Commission. The invocation was given by the Reverend Joey Thompson, Pastor, Crawford Avenue Baptist Church. The Pledge of Allegiance to the Flag of the United States was recited. Mr. Mayor: Pastor Thompson, thank you so much for that wonderful prayer. We will be getting something to you later. Thank you for being here. With that, we will move into the consent agenda. The Clerk: Our consent agenda consists of items 1 through 3, items 1 through 3. Mr. Mayor: Are there any additions to the consent agenda or items to be pulled for discussion? Mr. Grantham? Mr. Grantham: Thank you, Mr. Mayor. Under the Public Service Committee, we have items 4 through 9. I have checked with the applicants that are present today requesting these licenses. I’d like for those items to be on the consent agenda, along with item 6, which is a motion to approve the Georgia State Department of Transportation, which is a grant for the Stage II, the Terminal Area Improvements out at Bush Field. Items 4 through 9. PUBLIC SERVICES 4. New Application: A. N. 06 - 23: A request by Abdullah S. El Khalifa for an on-premise consumption Beer & Wine license to be used in connection with Crazy Leggs Corner Pocket located at 2450 D Windsor Spring Rd. District 6. Super District 10. 5. New Application: A. N. 06 - 24: A request by Judith Taylor for an on- premise consumption Liquor, Beer & Wine license to be used in connection with Ear 2 Ear Enterprises DBA Red Hugh's Irish Pub located at #2 8th St. There will be Sunday Sales. District 1. Super District 9. 6. Motion to approve Georgia State Department of Transportation Contract (Grant) for Stage II - Terminal Area Improvements. 1 7. Motion to approve Federal Airport Improvement Grant. 8. Discussion: A request by Emily B. Makuch for a Therapeutic Massage license to be used in connection with Jon Ric Salon located at 229 Fury's Ferry Rd. District 7. Super District 10. 9. Motion to approve a Resolution to authorize a grant application to be filed with the United States Tennis Association (USTA) in partnership with the National Recreation and Park Association(NRPA) for funding assistance for the construction of a tennis complex at Diamond Lakes Regional Park. Mr. Mayor: Okay. Mr. Cheek? Mr. Cheek: Mr. Mayor, if there are no questions from the Commission, have item 12 from Public Safety added to the consent agenda, please. PUBLIC SAFETY 12. Review the Information Technology 2005 Annual Report Mr. Mayor: Mr. Williams? Mr. Williams: Mr. Mayor, I’d like to get a little clarification on number 9. A couple of questions I have. Got no problem with the agenda item. I just need to get some understanding. I’ve got a couple of questions to ask on that one if you don’t mind. PUBLIC SERVICES 9. Motion to approve a Resolution to authorize a grant application to be filed with the United States Tennis Association (USTA) in partnership with the National Recreation and Park Association(NRPA) for funding assistance for the construction of a tennis complex at Diamond Lakes Regional Park. Mr. Mayor: Ms. Beard? Ms. Beard: Mr. Mayor, I think items 15 and 16 could be added to the consent agenda. FINANCE 15. Approve the replacement of 4 Marshal’s Department sedans for $24,1512.00 each from Bobby Jones Ford of Augusta, Georgia (Lowest bid offer on bid 05-159). 16. Consider a request from Miracle Making Ministries, Inc. for city sponsorship through the purchase of tickets for the Mayor's Prayer Breakfast on May 4, 2006. Mr. Mayor: Mr. Smith? Mr. Smith: Thank you, Mr. Mayor. Under Engineering Services, numbers 18, 19, 20, 21 and 22. ENGINEERING SERVICES 2 18. Approve funds in the amount of $22,610 to WR Toole for engineering services for Belair Hills Subdivision Water System Improvements. 19. Approval is requested to authorize condemnation of a portion of Property #139-0-301-00-0 2827 Harwood Street, which is owned by Wilbert Rainey and Ann L. Rainey for 1,640 Sq. Feet for a Permanent Easement and 1,639 Sq. Ft. of Temporary Easement. AUD Project: Horsepen Sanitary Sewer, Phase 2A. 20. Approve Deductive CO #2 in the amount of $97,174.00 for final quantity adjustments to the Samplers for Industrial Customers Project. 21. Approve Deductive CO #2 in the amount of $594,622.75 to make final quantity adjustments to the 60105 Butler Creek Interceptor Upgrade Project. 22. Approve award to Blair Construction for the installation of the Raborn Road Waterline under the daily rate for equipment and personnel. Mr. Mayor: Mr. Shepard? Mr. Shepard: I’d ask that 23 be added. ATTORNEY 23. Motion to approve Option for Acquisition of Easement to BellSouth. Mr. Mayor: Mr. Williams? Mr. Williams: Mr. Mayor, I need some more clarification now on something else. Item 18. This is a familiar item that we do but those items that we ask DBE person to have input in, I just need to know have those guidelines that we put in place have been met by all these bids that we received. If that’s the case I got no problem but I need to hear from our DBE person. Mr. Mayor: Ms. Gentry? Mr. Williams: Ms. Gentry, right. Ms. Gentry: Mr. Mayor, members of the Commission, what item? Mr. Mayor: 18. Mr. Williams, was it 18? Mr. Williams: 20. 18 and 20 I think it is, Mr. Mayor. That’s another one. Ms. Gentry: As it relates to item number 20, I am not familiar with this item. Item number 18, which is to be awarded to Belair--W.R. Toole Construction for the Belair Hills Subdivision, I am familiar and they are in line as it relates to our DBE program. Mr. Williams: 21, Mr. Mayor? The Clerk: That’s a deduct. 3 Ms. Gentry: That’s a deduct, also. Mr. Williams, I’m not familiar with that one. Mr. Williams: Well, now, y’all came in and wanted to add consent agenda and I just want to make sure that we are not fast forwarding. It’s all right to run but you get fast forward I think it been better to call that out than the let that go. Mr. Mayor, I guess we probably need to put it on the committee to talk about the DBE person and how this relates so we won’t have to stop every time to do this. But this ought to go through that office and we ought to be reassured. We hired a staff person to handle this stuff and we still have to check it up here every time. Thank you, Ms. Gentry, Mr. Mayor. Those items been cleared. I got no problem. Mr. Mayor: Thank you, Mr. Williams. Mr. Cheek? Mr. Cheek: Mr. Mayor, I don’t know if this has the consent of the body but I would consider on item 25 for moving over to the consent agenda. OTHER BUSINESS 25. Consider/Adopt Formal Resolutions to authorize Interest Rate Swap with Deutsche Bank, AG. 2005. Mr. Mayor: Anybody, item 25? Does anybody have any problem with item 25? Mr. Grantham: I’ve got some questions on that one, Mr. Mayor. Mr. Mayor: Are there any further additions? Mr. Williams: Mr. Mayor, can we get—Mr. Grantham, you want to pull it off or you want to just get your question answered? Mr. Grantham: I’m going to pull it off. Mr. Williams: Okay. Mr. Mayor: Okay. Mr. Brigham: Mr. Mayor, I think we probably could add item 26 to consent agenda, about the lighting plan for Barrett Plaza. OTHER BUSINESS 26. Discuss/approve lighting plan for Barrett Plaza. (Requested by Commissioner Marion Williams) Mr. Mayor: Is everybody good with 26? 4 Mr. Williams: Could we go back through those numbers again, Mr. Mayor, so we’ll know exactly? Mr. Mayor: Please. Madame Clerk, would you please go back through the numbers? The Clerk: Items 1 through 3, item 4, items 5, 6, 7, 8, 9, 12, 15, 16, 18, 19, 20, 21, 22, 23, and 26. Mr. Grantham: Mr. Mayor? Mr. Mayor: Mr. Grantham? Mr. Grantham: Could we consider item number 28, please? OTHER BUSINESS th 28. Resolution calling Special Election for filling vacancy in 4 District Commission seat. Mr. Williams: Mr. Mayor? Mr. Mayor: Mr. Williams? Mr. Williams: I’ve got a little objection. I’d like to talk about item 28, just for a little while. There is no clear set time and I think we need to look at that. July is a time but there are two other numbers or dates that we maybe can use and I would like to hold that out so we can talk about it. Mr. Mayor: Okay. In reading those back, Madame Clerk, did you include 9? I think that number 9—Mr. Williams had— Mr. Williams: Yes, I needed some clarification on that grant. The Clerk: All right. Mr. Brigham: Mr. Mayor, I also think we could add number 14 to the consent agenda. FINANCE 14.Motion to approve the 2007 Budget Calendar. Mr. Hatney: Mr. Mayor, we can add number 10 also. ADMINISTRATIVE SERVICES 10. Approve the deferred retirement of Ms. Nancy Dickerson under the 1977 Pension Plan. 5 Mr. Mayor: Are there any further additions? The Clerk: The consent agenda, the consent agenda consists of the following items: items 1, 2, 3, 4, 5, 6, 7, 8; 9 pulled for discussion; 10, 12, 14, 15, 16, 18, 19, 20, 21, 22, 23 and 26. Mr. Mayor: Mr. Bowles? Mr. Bowles: Mr. Mayor, I believe the Attorney needs more time on item number 2 in order to work out some legal language for the contract regarding local preferences with the airport. I would ask him if he wants this item pulled to give him more time. ATTORNEY 2. Motion to approve an Ordinance providing preferences to local businesses doing business with their local government within a 5% margin not to exceed $10,000. (Approved by Commission in meeting April 18, 2006 - second reading) Mr. Mayor: Mr. Shepard? Mr. Shepard: I have received some additional information, Commissioner, but I also just received communication from the DBE person so yes, I would like it continued one time. Mr. Mayor: And so we are— Mr. Williams: Is that to be brought back to— Mr. Shepard: Very next time, Mr. Williams. Mr. Williams: [unintelligible] is that something we need to talk about in committee? Mr. Mayor: Mr. Shepard? Mr. Williams, could you repeat your question? Mr. Williams: My question was do—does this come back to us in committee so we’ll know prior to it getting to the Commission? Mr. Shepard: It can, Mr. Williams. That would be no problem with me. Mr. Williams: I just think that before it gets back here we at least ought to hear it in committee. Mr. Mayor: Okay. 6 Mr. Shepard: Well, I have no problem with it going back to the committee system. Mr. Williams: I mean the committee is going to come, Mr. Mayor, before— Mr. Mayor: Okay. Is everybody good with number 2 going back to committee? Can I get a motion to Is everybody clear on the items added to the consent agenda? approve the consent agenda? Mr. Williams: So move. Mr. Cheek: Second. CONSENT AGENDA: PETITIONS AND COMMUNICATIONS 1. Motion to approve the minutes of the Regular Meeting of the Commission held April 18, 2006. 3. An Ordinance to amend Augusta-Richmond County Code Title 1, Chapter 2, Section 2(a); to provide for an amendment to the monthly schedule for the holding of the regular meeting of the Augusta-Richmond County Commission on the first Tuesday in every month; to provide for the scheduling of the first meeting in April to the last Wednesday of March each year effective with the first regular meeting of the Commission in April, 2007; to repeal conflicting ordinances and for other purposes. (Approved by Commission in meeting April 18, 2006 - second reading) PUBLIC SERVICES 4. New Application: A. N. 06 - 23: A request by Abdullah S. El Khalifa for an on-premise consumption Beer & Wine license to be used in connection with Crazy Leggs Corner Pocket located at 2450 D Windsor Spring Rd. District 6. Super District 10. 5. New Application: A. N. 06 - 24: A request by Judith Taylor for an on- premise consumption Liquor, Beer & Wine license to be used in connection with Ear 2 Ear Enterprises DBA Red Hugh's Irish Pub located at #2 8th St. There will be Sunday Sales. District 1. Super District 9. 6. Motion to approve Georgia State Department of Transportation Contract (Grant) for Stage II - Terminal Area Improvements. 7. Motion to approve Federal Airport Improvement Grant. 8. Discussion: A request by Emily B. Makuch for a Therapeutic Massage license to be used in connection with Jon Ric Salon located at 229 Fury's Ferry Rd. District 7. Super District 10. ADMINISTRATIVE SERVICES 10. Approve the deferred retirement of Ms. Nancy Dickerson under the 1977 Pension Plan. 7 PUBLIC SAFETY 12. Review the Information Technology 2005 Annual Report FINANCE 14. Motion to approve the 2007 Budget Calendar. 15. Approve the replacement of 4 Marshal’s Department sedans for $24,1512.00 each from Bobby Jones Ford of Augusta, Georgia (Lowest bid offer on bid 05-159). 16. Consider a request from Miracle Making Ministries, Inc. for city sponsorship through the purchase of tickets for the Mayor's Prayer Breakfast on May 4, 2006. ENGINEERING SERVICES 18. Approve funds in the amount of $22,610 to WR Toole for engineering services for Belair Hills Subdivision Water System Improvements. 19. Approval is requested to authorize condemnation of a portion of Property #139-0-301-00-0 2827 Harwood Street, which is owned by Wilbert Rainey and Ann L. Rainey for 1,640 Sq. Feet for a Permanent Easement and 1,639 Sq. Ft. of Temporary Easement. AUD Project: Horsepen Sanitary Sewer, Phase 2A. 20. Approve Deductive CO #2 in the amount of $97,174.00 for final quantity adjustments to the Samplers for Industrial Customers Project. 21. Approve Deductive CO #2 in the amount of $594,622.75 to make final quantity adjustments to the 60105 Butler Creek Interceptor Upgrade Project. 22. Approve award to Blair Construction for the installation of the Raborn Road Waterline under the daily rate for equipment and personnel. ATTORNEY 23. Motion to approve Option for Acquisition of Easement to BellSouth. OTHER BUSINESS 26. Discuss/approve lighting plan for Barrett Plaza. (Requested by Commissioner Marion Williams Mr. Mayor: We have a motion and a second. Any further discussion? Commissioners will now vote by the usual sign. Mr. Hatney abstains [Item 5]. Motion carries 8-1 [Item 5]. Motion carries 9-0 [Items 1, 3, 4-8, 10, 12, 14-16, 18-22, 23, 26]. The Clerk: Kind of an afterthought, but in the case of any objectors, to read the alcohol petitions: PUBLIC SERVICES 4. New Application: A. N. 06 - 23: A request by Abdullah S. El Khalifa for an on-premise consumption Beer & Wine license to be used in connection with Crazy Leggs Corner Pocket located at 2450 D Windsor Spring Rd. District 6. Super District 10. 8 5. New Application: A. N. 06 - 24: A request by Judith Taylor for an on- premise consumption Liquor, Beer & Wine license to be used in connection with Ear 2 Ear Enterprises DBA Red Hugh's Irish Pub located at #2 8th St. There will be Sunday Sales. District 1. Super District 9. The Clerk: Are there any objectors to those alcohol petitions? Thank you. Mr. Mayor: Madame Clerk, let’s move on to item number 9. The Clerk: PUBLIC SERVICES 9. Motion to approve a Resolution to authorize a grant application to be filed with the United States Tennis Association (USTA) in partnership with the National Recreation and Park Association (NRPA) for funding assistance for the construction of a tennis complex at Diamond Lakes Regional Park. Mr. Mayor: Mr. Williams? Mr. Williams: Thank you, Mr. Mayor. Tom, I’m in support of this. No doubt. But I’m asking a question. The question is that if this grant is approved and we get this money, then we going to have to staff this facility with employees and stuff; is that right? Mr. Mayor: Mr. Beck? Mr. Beck: Mr. Mayor, members of the Commission, that would be correct. The proposal is, and of course this is United States Tennis Association grant, this 200,000, if you allow us to make application, which that’s what we are asking you for today, would potentially build a 12 court tennis complex which has been on the master plan at Diamond Lakes Regional Park, which this Commission has approved. With that would come some operational costs with the facility, would come with some revenues. Right now I think our projected operational cost for the facility, minus revenues, is approximately $60,000 a year. Mr. Williams: And that what prompted my question, Mr. Mayor. You know, we talked about the contract that we had with the tennis pro and what the charges was and what we was paying versus what the city was getting. And I’m in support. I mean we done a lot of work at Diamond Lakes and I think it’s the right facility for it. But then when we look at the cost that going to be associated with it, I think we need to be aware of how much that is going to be, [unintelligible] going to take to run it, how many, how many dollars. I mean you ask for a car, you got to change the oil, you got to put tires on it, you got to maintain it. So I just think we need to be mindful of that. I’m not opposed but that question came up. I wanted to ask those questions. Mr. Mayor: Okay. 9 Mr. Williams: I make a motion that we approve, Mr. Mayor. Mr. Cheek: Second. Mr. Mayor: We have a motion and a second. Is there any further discussion? Commissioners will now vote by the usual sign. Motion carries 9-0. The Clerk: PUBLIC SAFETY 11. Motion to award Bid Item #06-115, Multi-Purpose Rescue Boat to Nautica International Inc. Mr. Mayor: Mr. Cheek? Mr. Cheek: Mr. Mayor, I’m going to ask a question, and I ask this because I’ve had a long history of asking this same question. Do we have housing for this particular craft, out of the weather? Just for my peace of mind. We do have the dive team, their boat put up, too? Mr. Mayor: Chief Willis? Mr. Willis: Yes, we do have housing. This particular apparatus will be housed at Engine Company 1 down close to the river. We have got the bids for the housing for the rescue boats. We are waiting on some crush and run and concrete to be put down so we can move forward with that. Mr. Cheek: Motion to approve. Finally. Thank you. Mr. Williams: Second. Mr. Mayor: We have a motion and second. Any further discussion? Commissioners will now vote by the usual sign. Motion carries 9-0. The Clerk: FINANCE 13. Consider a request from Concord Management Limited regarding a refund of the late payment penalty for 2005 taxes on the property of Stonegate Club Partners, Ltd. (Map 40, Parcel 47.06). Mr. Mayor: North, can you— 10 Mr. Williamson: We have the [unintelligible]. Mr. Mayor: Okay. Please state your name and address and keep it to five minutes, please. Mr. Graham: Mr. Mayor, Commissioners, my name is Bill Graham. I work on behalf of Concord Management, which is the management arm of Stonegate Partners [unintelligible]. In the 2005 tax year the county proposed a value for our property, which we did appeal. Basically for the 2005 tax year, the Board of Assessors proposed a value which we subsequently appealed to the Board of Assessors. Upon their review there was a valuation change made reducing the value. We furthered that appeal again. During this process that appeal was sent to the Board of Equalization for a hearing, which was then later scheduled for November of ’05. The first appeals began in July with a follow-up appeal in August with a letter from the Board stating there would be a hearing in October. Around September a 2005 tax bill was issued for the property and received by us. In the past tax bills in our experience here had been withheld until conclusion of appeals. We subsequently learned that the process had changed and the county was issuing temporary tax bills. In September we had not yet had a formal hearing with the Board of Equalization. We spoke with the [unintelligible] said that’s not your final bill, you’ll get a final bill after you have this hearing. Again, confusion on our part of not understanding the process that had changed. In November we had a hearing. The Board of Equalization found for the county and upheld the value it had been initially reduced to. So we sat back and started waiting for a final tax bill. The tax bill didn’t come but a delinquent bill came. And then we suddenly jumped up and said we’ve got a problem, we didn’t pay our taxes, the county thinks we should have, and I believe Mr. Williamson may tell you differently but I think that was some time in January or February of ’06. As soon as we found out we made our payment, including penalties and interest and so forth. And then after speaking with the assessor again relative to our actions or inactions they suggested that we petition the board for a refund of the penalty. We’re not asking for a refund of the interest. It was confusion on our part, clearly, and we were expecting to get a final bill, unaware that we had gotten a bill during the process that the county viewed as being a correct bill in September, two months prior to the actual final adjustment value hearing. That’s our request. Mr. Mayor: Commissioner Grantham? Mr. Grantham: Thank you, Mr. Mayor. I ask the tax assessor, the tax commission office how much is that penalty that we’re talking about? Mr. Williamson: The amount of penalty that was paid was $12,385.91. Mr. Grantham: So that was 10% of the original tax bill? Mr. Williamson: That is correct. 11 Mr. Grantham: Okay. Mr. Williamson: In addition they paid interest in the amount of 3715.77 but he’s not asking for that. Mr. Grantham: I’m willing to give him that. Mr. Mayor: Commissioner Williams? Mr. Williams: North, your recommendation, your— Mr. Williamson: I’m in a tight spot here. The reason is because— Mr. Williams: Ain’t as tight as up here now. Mr. Williamson: Well, come join me. The reason is because the circumstances do not meet the criteria that was outlined by the Board of Commissioners for us to give relief. And of course the amount far exceeds what the Tax Commissioner can do by the onus of the Commission. So we have to leave it up to you gentlemen and lady. Mr. Mayor: So the ball’s back in our court. Mr. Williamson: Back in your court. Mr. Williams: Mr. Mayor, I didn’t get a recommendation. I mean I want to know. It’s going to be up to this body but I need to know as the director of that department. Mr. Mayor: Mr. Williamson? Mr. Williams: [unintelligible] Mr. Mayor: Rev. Hatney? Mr. Williamson: In response I must say I can’t recommend it. I’m sympathetic but the rules and regulations don’t allow me to recommend it. Mr. Mayor: Rev. Hatney? Mr. Hatney: [unintelligible] Mr. Mayor: Okay. Can we get a motion either way? Mr. Williams: I make a motion that we follow the guidelines of the director, North Williamson, and deny, Mr. Mayor. 12 Mr. Mayor: We have a motion. Is there a second? Mr. Hatney: Second. Mr. Mayor: We have a motion and second. Any further discussion? Mr. Cheek: Just a question, Mr. Mayor. Mr. Mayor: Mr. Cheek? Mr. Cheek: Thank you, Mr. Mayor. Is there precedent for us doing or following the request of the taxpayer? Is there precedent already set up for us to provide this kind of relief in another cases? Mr. Mayor: Mr. Shepard? Mr. Shepard: Mr. Mayor, members of the Commission, it usually involves some sort of error in noticing the bill, some error in the process inside the assessor’s office. But after rereading this again, it doesn’t appear that there was any of that involved. I think what they should have done was paid the full bill, prosecuted their appeal, then they could have gotten it back. Mr. Williamson: Mr. Mayor? Mr. Mayor: Mr. Williamson? Mr. Williamson: There are three options here. One is to refuse the request, the other one is to grant the request, and the third one is to give a partial relief. I’m just offering that for your consideration. Mr. Mayor: We have a motion on the floor and a second. Any further discussion? Mr. Hatney: What is the motion? Mr. Mayor: The motion is to deny. Mr. Hatney: Okay. Mr. Mayor: Commissioners will now vote by the usual sign. Mr. Bowles and Mr. Grantham vote No. Motion carries 7-2. Mr. Mayor: Next agenda item? 13 The Clerk: FINANCE 17. Discuss the process for the selection of the Underwriters for the $44M SPLOST V Bond Issue. (Requested by Commissioner Betty Beard) Mr. Mayor: Ms. Beard? Ms. Beard: Yes, I’ve spoken with him and he says he has the information for us. Mr. Mayor: Okay. Rev. Hatney? Mr. Hatney: I’d like to ask our attorney what would be the consequence if we do not act on this today, because we just got handed something here and we trying to keep from doing that. Mr. Mayor: Mr. Shepard? Mr. Shepard: There will be no consequences that are adverse to the transaction. We can bring it back either in the next regularly scheduled meeting or we can bring it in a specially-scheduled meeting but I just wanted to ask the Commission to look at this today. The bond counsel and I and Ms. McNabb, who is your financial advisor, have had several telephone conferences and this information would set up a competition to bid out the bonds. I can understand your position, Mr. Hatney. This is intended to be supplemental, but it is a competitive type of method of seeking the underwriter, which is what I understood you wanted. And if you would like to defer it, it could be deferred. We need to probably act and have the bonds sold on or about the end of June, but that would be still possible if we waited say—if we waited until committee meeting. Mr. Hatney: [unintelligible] postpone to [unintelligible]. Mr. Shepard: We could do that. Mr. Hatney: I move we that we postpone this to the next meeting. Mr. Mayor: We have a motion. Mr. Holland: I second that. Mr. Mayor: Ms. Beard? Ms. Beard: I was going to say that. Mr. Mayor: Ms. Beard? 14 Ms. Beard: I would like to recommend that it goes back to the Finance Committee and then to the Commission meeting. Mr. Mayor: Mr. Cheek? Mr. Cheek: Mr. Mayor, just a general question. I don’t know that today is the day to get the answer to it, but this is month five, month six after we passed the SPLOST. We promised the people of this city that we would have these projects on the ground and I’m just wondering if this—are we months away, years away from having design and groundbreaking? Just had news today that we lost 150 more jobs in this city to a mill closing and this was touted to the people as an economic stimulus to construction and other projects. And I just wonder where we are on getting this bonding done and the design complete and these buildings and attractions and construction jobs and all on the way. Mr. Mayor: Mr. Russell? Mr. Russell: Mr. Mayor, if I may. As you know, you instructed me to make sure we move quickly with these projects and we’ve done so, I think. The bonds have been validated. We’re moving right along with schedule as far as selling them. The proposal you have in front of you is that next step in trying to determine a competitive method to determine who the bonds are sold to. The projects that have had money available to them through previous SPLOSTs are well within being worked with as far as design and purchase of property in those areas that are moving forward. As you do know, we did not st begin collecting those SPLOST dollars until April 1, even though it was passed in January. So I’m pretty optimistic at this point that our promise to move dirt and put in bricks and mortar are moving very well according to schedule. And given the nature of those collections, I think we’re probably moving along very well, sir. Mr. Mayor: Mr. Grantham, did you— Mr. Grantham: Yes. I still have a question. Thank you, Mr. Mayor. I read this as a request for our Finance Chairman that we receive the process of selection and discuss it and then make a decision based on the information given and that decision—I think we receive this as information and then we come back at our next meeting either via the Finance Committee and to the next meeting to make a decision regarding this. That’s the way that I read this whole thing being put before us. Mr. Mayor: I agree. Mr. Grantham: So I just wanted to have some clarity on that, see if the rest of our body felt the same way. Mr. Mayor: Rev. Hatney, does your—would you want to amend your motion? I believe you recommended it come back before the Commission meeting, but to go through Finance Committee and then come back— 15 Mr. Hatney: She recommended Finance and it would automatically come back after that so I can live with that. Mr. Mayor: Okay. Mr. Cheek? Mr. Cheek: Just one final question to the Administrator, Mr. Mayor. So we are moving concurrently with the judicial center, the jail pods and the convention center for design and land acquisition and bonding to bring these projects into fruition? Mr. Mayor: Mr. Russell? Mr. Russell: Yes, sir, we are. Mr. Cheek: Thank you very much. Mr. Russell: Once again, it’s my job to move that so we’re doing that as far as we can. Mr. Mayor: We have a motion and a second. Is there any further discussion? Commissioners will now vote by the usual sign. Motion carries 9-0. The Clerk: OTHER BUSINESS 24. Appoint Interim 4th District Commissioner. Mr. Mayor: All right, I’m waiting to see somebody’s hand go up. Dr. Hatney? Mr. Hatney: May I make an observation before we begin this process? I painfully watched what happened the last time this was attempted and have some real misgivings with the whole thought of folks not being to decide on an individual. You sure can’t put four folks or five folks in one seat. Everybody [unintelligible] and some of us are committed to different individuals, which is fine. But from my perspective I just think we should try to get this done whereas we can [unintelligible] same time, at the same time I’m concerned about the fact that looks like to me, even with the resolution to set the date for the voting, to me that was kind of out of tilt, you know. Because [unintelligible] I’d like for my feelings to be respected. But sometimes that doesn’t happen. But I’m going to put in a recommendation of young man I’ve known all his life, and that is Mr. Keith Brown. Mr. Holland: I second that. Mr. Mayor: We have a motion and a second. 16 Mr. Shepard: Nomination. Mr. Mayor: We have a nomination and a second. Mr. Williams: Mr. Mayor, I move that the nominations be closed. Mr. Mayor: Mr. Cheek? Mr. Cheek: Mr. Mayor, I’m going to nominate Venus Cain. Mr. Mayor: Mr. Bowles? Mr. Bowles: Mr. Mayor, there is another gentleman interested, Mr. Al Mason, who spent 20 years with military service, a man of integrity and great character that’s been a servant for our country and now wants to give back to the local community so it’s my privilege to nominate Mr. Al Mason. Mr. Mayor: Okay. Mr. Williams, you moved that the nominations be closed? Mr. Williams: Two people ago, Mr. Mayor. Mr. Mayor: Well, we will now—Madame Clerk, would it be appropriate to vote as nominated? The Clerk: Mr. Keith Brown. Mr. Brigham, Mr. Smith, Mr. Grantham and Mr. Cheek vote No. Nomination fails 5-4. The Clerk: Venus Cain. Mr. Brigham, Mr. Hatney, Mr. Smith, Mr. Grantham, Mr. Williams and Mr. Holland vote No. Ms. Beard abstains. Nomination fails 2-6-1. The Clerk: Mr. Al Mason. Mr. Williams, Mr. Brigham, Mr. Hatney and Mr. Holland vote No. Ms. Beard abstains. Nomination fails 4-4-1. Mr. Mayor: Mr. Williams? Mr. Williams: Thank you, Mr. Mayor. The Super District Commissioner made a comment earlier and I think he’s well in his rights to do that and I support what he said. 17 It is very important to put somebody in that seat. Each time there have been an opening here, whether it’s been on the Super District on the side of the black community or the Super District side on the white community, we have worked together in order to do and put place in that position those people who [unintelligible] Super District Commissioner who wanted that person in. And each time I see how when it’s reversed and several times [unintelligible] we have not been able to get the cooperation and the collaboration that we need from our counterparts. I mentioned the other day, Mr. Mayor, about this prayer breakfast thing, and I’m serious about that because people go out and pray but then they come back and do the same things they been doing for 200 years. [unintelligible] communication with God and you would always pray, but when people pray they ought to have enough sense to realize that God gives them the insight to do what it right and do what is necessary. And it’s bad that we can come to some conclusion on one candidate. When the Super District Commissioner who is the [unintelligible] he can support both districts, he can’t both for both districts—it’s important to have that vote up here. But you going to cripple this government, you going to cripple this community, then we need I want to offer a to just take off those we don’t want up here and keep the ones we do. motion that we revisit the selection process , Mr. Mayor, and follow the will of our Super District Commissioner as he may make a selection. He has already done that and people still decide to pick the person they want. And you can’t pick everybody. I think all those people are great people. They have an opportunity to run for the position, they have an opportunity to sell themselves. But we need a person in this chamber that represent District 4 today. We don’t need it next week, we don’t need it two weeks from now, we don’t need it a month from now. We need it today. And I’m ashamed to be a part of some of this stuff that goes on up here, Mr. Mayor. Mr. Mayor: We have a motion to reopen. Mr. Cheek? Mr. Cheek: Mr. Mayor, I’m going to do what I’ve done, and try to do through every vacant chair since I’ve been a member of this Commission, is nominate the person that the Commissioner from the vacant chair recommended and in that case, just as I did with District 3, District 7, and tried to do with Super District 9, I want to nominate Bernard Harper for that position. Mr. Mayor: We had a motion to reopen the nominations. Do we need a second to pass it? Mr. Cheek: I’ll second that. Mr. Mayor: We have a motion and second to reopen the nominations. Any further discussion? Commissioners will now vote by the usual sign to reopen the nominations. Mr. Bowles and Mr. Brigham vote No. Motion carries 7-2. 18 Mr. Mayor: Mr. Cheek, I believe it would be appropriate for you to make your nomination. Mr. Cheek: Thank you, Mr. Mayor. Not to stay on the subject very long—I’m not even going to go there. One trip to Disneyland a day is enough. I want to nominate Bernard Harper. Mr. Mayor: Rev. Hatney? Mr. Hatney: I nominate again Keith Brown. Mr. Mayor: Any further nominations? Mr. Williams: I move the nominations be closed, Mr. Mayor. Mr. Mayor: Okay. Nominations are closed and we will vote in the order nominated. The Clerk: Bernard Harper. Mr. Bowles, Mr. Brigham, Mr. Hatney, Mr. Smith, Mr. Grantham and Mr. Holland vote No. Mr. Williams abstains. Nomination fails 2-6-1. The Clerk: Keith Brown. Mr. Brigham, Mr. Smith, Mr. Grantham vote No. Nomination carries 6-3. Mr. Mayor: I personally would like to thank the Commission for working through that in this meeting, as I agree that that District needs representation. We will take a recess [unintelligible] swear him in. [RECESS] Mr. Mayor: Call the meeting back to order. Mr. Shepard? ADDENDUM 30. Motion to approve authorization for the Mayor to execute the affidavit of compliance with Georgia's Open Meeting Act. Mr. Shepard: Mr. Mayor, members of the Commission, I’d ask that you be authorized to sign the closing meeting affidavit, that the discussion in legal session were on matters appropriate to executive session, including pending and potential litigation, real estate and personnel. 19 Mr. Mayor: Do we have a motion? Mr. Grantham: So move. Mr. Williams: Second. Mr. Mayor: We have a motion and second. Commissioners will now vote by the usual sign. Motion carries 9-0. Mr. Mayor: We will now swear in the gentlemen who is about to be out newest Commissioner, Mr. Keith Brown. Keith, would you please come forward? And Judge Brown, would you please do the honors? I think we ought to stand for this. Judge Brown: I will administer two oaths. The official oath and the loyalty oath. Mr. Brown, I ask that you raise your right hand and place your left hand on the Bible. Please repeat after me. I’ll administer the official oath first. I, Keith Brown— Mr. Brown: I, Keith Brown— Judge Brown: Do solemnly swear or affirm— Mr. Brown: Do solemnly swear or affirm— Judge Brown: That I will truly and faithfully— Mr. Brown: That I will truly and faithfully— Judge Brown: Perform the duties— Mr. Brown: Perform the duties— Judge Brown: Of the office of Commissioner— Mr. Brown: Of the office of Commissioner— Judge Brown: Of Augusta, Georgia— Mr. Brown: Of Augusta, Georgia— Judge Brown: To the best of my abilities. Mr. Brown: To the best of my abilities. Judge Brown: I do further solemnly swear or affirm— 20 Mr. Brown: I do further solemnly swear or affirm— Judge Brown: That I am not the holder— Mr. Brown: That I am not the holder— Judge Brown: Of any unaccounted for— Mr. Brown: Of any unaccounted for— Judge Brown: Public money due this State— Mr. Brown: Public money due this State— Judge Brown: Or any political subdivision— Mr. Brown: Or any political subdivision— Judge Brown: Or authority thereof— Mr. Brown: Or authority thereof— Judge Brown: That I am not the holder— Mr. Brown: That I am not the holder— Judge Brown: Of any office of trust— Mr. Brown: Of any office of trust— Judge Brown: Under the government— Mr. Brown: Under the government— Judge Brown: Of the United States— Mr. Brown: Of the United States— Judge Brown: Any other state— Mr. Brown: Any other state— Judge Brown: Or any foreign state— Mr. Brown: Or any foreign state— 21 Judge Brown: Which I am prohibited from holding— Mr. Brown: Which I am prohibited from holding— Judge Brown: By the laws of the State of Georgia— Mr. Brown: By the laws of the State of Georgia— Judge Brown: And that I am otherwise— Mr. Brown: And that I am otherwise— Judge Brown: Qualified to hold said office— Mr. Brown: Qualified to hold said office— Judge Brown: According to the Constitution— Mr. Brown: According to the Constitution— Judge Brown: Of the United States— Mr. Brown: Of the United States— Judge Brown: And the laws of Georgia— Mr. Brown: And the laws of Georgia— Judge Brown: And that I will support— Mr. Brown: And that I will support— Judge Brown: The Constitutions— Mr. Brown: The Constitutions— Judge Brown: Of the United States— Mr. Brown: Of the United States— Judge Brown: And of this State— Mr. Brown: And of this State— Judge Brown: So help me God. 22 Mr. Brown: So help me God. Judge Brown: I will now administer the loyalty oath. Please repeat after me. I, Keith Brown— Mr. Brown: I, Keith Brown— Judge Brown: A citizen of Augusta, Georgia— Mr. Brown: A citizen of Augusta, Georgia— Judge Brown: And being an employee of Augusta, Georgia— Mr. Brown: And being an employee of Augusta, Georgia— Judge Brown: And recipient of public funds— Mr. Brown: And recipient of public funds— Judge Brown: For services rendered— Mr. Brown: For services rendered— Judge Brown: As such employee— Mr. Brown: As such employee— Judge Brown: Do hereby solemnly— Mr. Brown: Do hereby solemnly— Judge Brown: Swear— Mr. Brown: Swear— Judge Brown: And affirm— Mr. Brown: And affirm— Judge Brown: That I will support— Mr. Brown: That I will support— Judge Brown: The Constitution— 23 Mr. Brown: The Constitution— Judge Brown: Of the United States— Mr. Brown: Of the United States— Judge Brown: And the Constitution of Georgia— Mr. Brown: And the Constitution of Georgia— Judge Brown: So help me God. Mr. Brown: So help me God. Judge Brown: Congratulations. Mr. Brown: Thank you. Mr. Mayor: Mr. Shepard? ADDENDUM 33. Motion to approve a consent order dismissing the condemnation case of Augusta, Georgia vs. Boral Bricks. Mr. Shepard: Thank you, Mr. Mayor. Mr. Mayor, members of the Commission, I would ask for authority to add and approve a consent order dismissing the condemnation case of Augusta, Georgia, condemnor, versus Boral Bricks for no further payment of monies other than what has been tendered into the trial court, that each party pay their own attorney's fees and that any interference with the use of the haul road be the subject of any future claim or litigation as set forth in this consent order. Mr. Cheek: Move to add and approve. Mr. Williams: Second. Mr. Mayor: We have a motion and second. Commissioners will now vote by the usual sign. Mr. Shepard: If it makes any difference, Mr. Mayor, that consent order is being submitted to Judge Brown. Motion carries 10-0. Mr. Mayor: Mr. Shepard? 24 Mr. Shepard: Again, Mr. Mayor, I’d ask that the body add and approve the joining by Augusta of a lawsuit known as City of Rome versus Hotels.com which we would become a plaintiff in the case which would seek to have the hotel-motel tax properly paid as the plaintiffs contend to local governments, one of which would be Augusta, and that the further stipulation be included that Augusta would join provided that there would be no expense to Augusta as far as court costs or attorney's fees. ADDENDUM 31. Motion to add and approve the joining by Augusta of a lawsuit known as City of Rome vs. Hotels.com. Mr. Hatney: So move. Ms. Beard: Second. Mr. Mayor: We have a motion and second. Commissioners will now vote by the usual sign. Motion carries 10-0. Mr. Mayor: Mr. Shepard? Mr. Shepard: Thank you, Mr. Mayor. One final matter. Has two parts to be added and approved, from the legal meeting. Ask that the Commission place of record option contracts negotiated on the properties to the immediate east of this Municipal Building, the one owned by the law firm which is 520 Greene Street Partners, really three lots, as set forth in those option contracts, and also that the option contracts be enrolled in the minutes of the Clerk as the other contract would be for the properties controlled by the Billy Lynn estate, which are to the immediate east of the properties at 520 Telfair Street, Greene Street, and the option contracts set forth that the purchase price for law firm property would not exceed 1,350,000 and that the purchase price of the estate property not exceed 300,000. ADDENDUM 34. Motion to add and approve Option Contracts for properties adjacent to the Municipal Building. Mr. Cheek: Move to add and approve. Mr. Hatney: Second. Mr. Mayor: We have a motion and a second. Any further discussion? Mr. Williams: Mr. Mayor? Mr. Mayor: Mr. Williams? 25 Mr. Williams: Is that coming back to committee [unintelligible]? Mr. Shepard: Mr. Williams, the contracts provided that we would have an option contract. An opportunity to buy is what this represents. It ties up the property. It is subject to an environmental study. It’s subject to title exam. They are option contracts. The power now lies in this body to purchase or not to purchase. Mr. Williams: My question is, even though it’s an option, option [unintelligible] contract like you stated, it would come back to this body to be ratified again if we purchased. This body, this document gives you the authority. I just want to know what, before I agree, what I’m agreeing to. Price-wise. I mean not to exceed is one thing. And I know you tried to talk about it back there. I understand. But I just want to make sure before I okay it, I want to know what the price is. I ain’t going to buy a pig in the barn now. I’m going to know what the price is before I agree to it. Mr. Mayor: We get another look at it; correct, Mr. Shepard? Mr. Shepard: These are option contracts. We’re buying time but we’re also stepping to the front of the line so that nobody can take it from us if we want it. Mr. Williams: I agree. But Mr. Mayor say it get a chance to come back to this body so we’ll know. That’s all I’m saying. Mr. Shepard: Yes, sir. Mr. Williams: If I approve this and don’t know and you go out and it comes to whatever amount and we do it, if it’s [unintelligible] then I mean. Mr. Mayor: We get another look; correct? Mr. Shepard: Yes, sir. This does not—this gives you the opportunity to act, Mr. Williams. Mr. Mayor: It does not bind us to purchase. Mr. Shepard: It does not. Mr. Mayor: That’s what I want to hear. Mr. Shepard: But we want to be first in line, Mr. Williams. Mr. Williams: I understand. Mr. Mayor: We have a motion and second. Any further discussion? Commissioners will now vote by the usual sign. 26 Motion carries 10-0. Mr. Mayor: Is that all you’ve got, Mr. Shepard? Mr. Shepard: Yes, sir, from the legal meeting. Thank you, sir. Mr. Mayor: Madame Clerk, next agenda item? The Clerk: OTHER BUSINESS 25. Consider/Adopt Formal Resolutions to authorize Interest Rate Swap with Deutsche Bank, AG. 2005. Mr. Cheek: Motion to approve. Mr. Holland: Second. Mr. Mayor: We have a motion and a second. Mr. Grantham: We’re on which one? Mr. Mayor: 25. Mr. Grantham: I have some questions. I’m the one that asked this be held up. Mr. Mayor: Okay. Mr. Grantham? Mr. Grantham: Thank you, Mr. Mayor. In looking at this, I know it was approved, I had a couple of questions. And I talked to the representative last week, Marty Stallone, about my question when I raised it as to who they had talked to as far as the negotiation based on the contract. And he sent me the—sent me some information of people that they had dealt with over previous years but it did not indicate or say that they had either negotiated or discussed this particular issuance with any particular person to get a bid from them at that time. And I realize he came back to tell us that this was the recommendation being made because this particular company was the first company that came to us with this package, so that was the basis for what I understood the recommendation. But a couple of questions since that was passed and I’m not, I’m not as concerned about whether it was passed or not, but I’m concerned about what’s in this group of papers that we have in the backup on item number 25. And in item number 25 there’s some agreement with Image as well as agreements with Gardnyr Michaels in regards to fees and I’m trying to find out where it is indicated the amount of fee that we’re going to pay to either one of these companies that are representing us in this issue. So that’s my first question, is why is there not a fee percentage or fee amount included in the agreement that we have with these two companies? 27 Mr. Mayor: Could you please state your name for the record, and go ahead. Mr. Stallone: Certainly. Good afternoon. I’m Marty Stallone from Image and I was here before you a few weeks ago. Just before I address that specific question, the piece of paper that I handed out to you was an update of a prior document that we had submitted and this ties in to the answer to your question, Commissioner, and that is the transaction that is proposed is-- the economics of it are ultimately determined by the markets. And standing before you two weeks ago we had an estimate of what we thought it would be and still even standing before you at this moment this is more recent estimate, but as and until the board approves the transaction, the ultimate economics will not be exactly locked in. As it relates to the expenses, that documentation was submitted as part of your normal board packet that went out last week, and at that time we didn’t have the answers to all of those questions as we’ve been finalizing the transaction over the last week. And we still won’t know exactly to the dollar those transactional costs, again until the transaction is locked in. I’ll go over a budget with you in just a moment. The way that the resolution is drafted, and your attorney can correct me if I misunderstand this, but you’re going to be asked to approve the substantially finally form of contracts and documentation. And the Mayor will be authorized to execute the necessary contracts as a representative of the board when all those blanks are filled in and all the numbers are exactly known. Now, the budget for those particular items are that when dealing with these particular types of instruments, much like if you buy a bond from your personal broker, or a CD, there is a commission that is charged for the execution of that transaction, or I think you were talking about a bond issue a little bit earlier in the meeting, you pay an underwriting discount or commission for somebody to buy the bonds from you and then resell them to investors. There is a commission involved here with Deutsche Bank for the execution of this transaction. That commission is expressed in th terms of basis points, which is a basis point is 1/100 of a percent and their proposed commission is 13-1/2 basis points. Okay, now part of our, or I should say our role for you is two fold: one leading up this meeting has been to evaluate the proposal, identify the risks, explain them to you, weigh the pros and cons of the economics and then recommend a course of action, which we’ve done up until today. The second half of our role in this particular transaction with you is if in fact you do approve it this afternoon is when it is executed, is to represent to you that that commission, together with all the other terms and conditions in the documentation that is part of your board packet are commercially reasonable and on market for this particular type of transaction around the country. We have already done that and the documents are in order with respect to Deutsche Bank and the interest rate management plan and the commission is on market for other transactions that have been done here in your home state, for MARTA and the City of Atlanta and some other issuers around the state, as well as around the country for other similar type of issuers that are cities and counties around the United States. Mr. Mayor: Mr. Grantham? Mr. Grantham: I’m going to continue, if you don’t mind, Mr. Mayor. And of course I just received something that, as Rev. Hatney makes comments about a lot of 28 time and I appreciate his indulgence in this fact, is that I had not been given this piece of information until today, and so it’s difficult for me, as Commissioner Williams indicates a lot of times, to vote on something that I don’t have a final answer on, and I don’t know still what my fees are going to be that you’re going to charge me or what Gardnyr Michael is going to charge me. That’s the problem I’ve got in signing a contract or even giving my authority to the Mayor to sign a contract. If that’s the case then I don’t know about it. Mr. Stallone: With respect to the new information, it is in exactly the same format and in exactly the same analysis that was given to this board about six months ago. The only difference is that the market is different today than what it was a week ago or month ago or year ago, this is meant to show you where the market is now. It’s not, so it’s not new information in the way it’s presented, and in fact oftentimes I’m obligated to stand here and say you were presented an idea some time ago and the economic benefit was anticipated to be this, and now with the passage of time it’s almost as good, but not quite, and you should still do it. Mr. Grantham: Right. Mr. Stallone: In this particular case, through no work of mine, just shear, shearly fortuitous in the market, that the economics of the transaction are absolutely materially better than when you started looking at this particular transaction and so we’re lucky to be where we are today with the ability to act upon it and potentially achieve the kind of savings as are projected in this last analysis. So it is merely a market update which is as of the close of business yesterday. Mr. Grantham: Okay. My only question, Mr. Mayor— Mr. Mayor: Mr. Grantham? Mr. Grantham: This—and I know I’m supposed to have two minutes. I’m going to ask two minutes for each question. But if this is—we have a five year ?? now that you are presenting to us. Mr. Stallone: Yes. Mr. Grantham: And heretofore, in the documentation you gave us last August, we were on a month-to-month ?? basis. Mr. Stallone: That’s right. Mr. Grantham: And so tell me why that changed so drastically from a month-to- month to a five year based on a recommendation back then, would that have been a good decision to make to do it then, or is it a better decision to make to do it now based on a five year ?? 29 Mr. Stallone: That’s an excellent question. When the presentation was originally delivered and the analysis was done, the presentation was made on the one month ?? index. You’re exactly correct. That was July of last year. And as I’ve said a couple of times already, as the markets change it is our job for you to continue to monitor the market and not have you act upon what made sense in July of last year because that was in the old presentation, but rather to do what is best for you today since now you’re in the position to execute the market, in the market. So the reason for the adjustment to the five year index and also ?? the economics are so significantly improved is that the market for the five year ?? index is materially better today than then the one month and that’s why that was chosen. You should also know that that is a five year index but it is taken discreetly every week so you’re not stuck with a rate for five years and then in five years look at it again. Mechanically it will function the same as the original proposal. We’re just choosing an index which provides significantly better economic. I’ll also point out that many people who did a transaction similar to this, let’s say last June or July with the one year ?? index are now converting to the five year because of the better economics. Now, you have the opportunity to do that right out of the gate. Mr. Grantham: I am going to ask you one other—well, two questions. One is that you indicated at the last meeting that we have the option of being able to terminate or to cancel at any time. Mr. Stallone: Yes, sir. Mr. Grantham: What, what is the expense of that termination? Mr. Stallone: I’ll give you an analogy. Mr. Grantham: And that’s what I’m looking for. Just a general of what we’ve talked about. Mr. Stallone: If you—again as investments, relate this to our personal decision making or that of your regular city function—if you buy a 10 year Treasury bond and the rate on that 10 year Treasury bond is 5 percent, it doesn’t mean that you must hold it for 10 years to get your money back. You can decide a week from now or a month or two years from now to sell it. What are you going to get for it? You’re going to get for it, it depends on what the market is a year from now when you want to sell it. If interest rates then are 5.5 percent you get a little bit less than what you paid for it. But if interest rates are 4.5 percent you get a little bit of a premium. So the same will be true with this. At any time and you’ll see in the documentation you have before you there is a lengthy section on what’s called optional termination, which is section ?? of the document on exactly how and when you may terminate, which by the way is any time after it’s executed from now until its final expiration. You can terminate at any time and there are procedures for determining exactly what the market value is and that is a function that we’ll continue to provide for you. When the time comes you need not just take that number from the counterparty in this case, Deutsche Bank. They’ll give you a number, we’ll verify it, if you dispute it there are written procedures on how you reconcile the 30 dispute, and then you’ll get a market value at the time. What that might be a year or two from now I can’t really tell you that any more than I can tell you where interest rates are going to be a year or two from now. But it is a marketable liquid instrument just like any other fixed income security. So you do have liquidity. Mr. Grantham: What does a flat rate do to us? Mr. Stallone: Pardon me? Mr. Grantham: What does a flat rate do to us, a flat tax, as far as our return as far as what we have on our investments goes? Mr. Stallone: If there is a flat tax that is an amount similar to our current income tax or even lower—let’s say the top marginal income tax right now is about 35 percent. Even if they institute a flat tax of around 25 percent you are still fine. If they were to institute a flat tax where everybody’s income taxes go down to 10 percent forever and they did that starting next year— Mr. Grantham: We’re in trouble. Mr. Stallone: --then this transaction would probably lose you money. However, if they do it 10 years from now and you’ve had good performance for the first 10 years, then what you would likely give back in the last 10 or 15 years would still probably not make this a losing transaction. And there is a detailed calculation in that August memo that we submitted of every marginal tax rate, and as time goes by during the amortization of how that would play out for you. Mr. Grantham: Mr. Mayor, I appreciate the time, but spending $160 million is important to me. Mr. Mayor: I understand. Mr. Grantham: I think I need the proper answers and I thank you, Mr. Stallone, for the information. Mr. Stallone: My pleasure. Mr. Mayor: Commissioner Brigham? Mr. Brigham: I’m not going to be as gentle. I would prefer rather than it be quoted in basis point, I would rather it be quoted in dollars as far as the fee. Mr. Stallone: Okay. Mr. Brigham: So can you do that? 31 Mr. Stallone: The fee amount at 13.5 basis points on 160 million would be an underwriting commission of approximately $3 million. Mr. Brigham: That’s what I wanted to know. The other thing I want to know is this an upfront, guaranteed annual thing or is this a float or what? We’ve talked about several different ways how this would work and I don’t know what this contract says as to whether it’s an annual or a float or what on the funds that come to us, or is it all upfront? Mr. Stallone: No, it is not upfront. Although there is a way to structure these and some people have structured them to take the money up front. That was not recommended here for the primary reason that you have the ability—and again, there was discussion about a bond issue. If you issued a bond issue right now for the 40 million or so that you discussed, your interest rate is probably—because you can ?? basis— approximately 4 percent. If you want to take all the potential economic value and upfront cash out of this transaction, then the counter-party in this particular case, Deutsche Bank, which would be true for any financial institution, they borrow on a taxable basis. They’re a private, for-profit entity so they’ve got to borrow taxably which right now is 5.5 or 6 percent. So it doesn’t make any sense for you economically if you want an infusion of capital today to borrow from Deutsche Bank at say 6 percent. You may as well add it to your bond issue at 4 percent. Economically you’re much better off. So the proposed transaction would be not to take a significant amount of money up front but to take it in anticipated positive cash flow. And the reason that we gave you the page that I just handed out is, it is not guaranteed each and every year. It will fluctuate depending on the market and interest rates. But what we do is we back test the structure as its currently proposed and look at different interest rate cycles going back to 1990, and this is the cash flow that you would have expected if you had done it in 1990 to date. So we all use this. Everybody in the financial market uses historical data to try to project and make a reasonable business decision for a transaction going forward and that’s what you’re being proposed, is we hope and expect that the cash flow annually will be in the order of magnitude that you have here. Mr. Brigham: But if it was a tighter market like it was in the late—early 2000s, we would not expect this kind of return? Mr. Stallone: Actually, year 2000 is in here and if you had done this transaction in 1999 at this level, in 2000 you would have still benefited by 1.4 million. Mr. Brigham: Would have benefited, but we would not consistently continue to benefit as the markets tighten? Mr. Stallone: Again, in every tightening and using cycle of the Federal Reserve, and there’s three of them in this [unintelligible], again we’ve taken actual interest rates, every single week for every year from 1990 through the end of this past month, so this is actual performance for every deal, I’m sorry, for every year in that interest rate cycle and it is still positive. Now, again, some years it’s great at 2.7 million; in other years it’s not 32 quite as good, it’s a million. But a million is still a million. You know. So it is going to fluctuate but in different interest rate cycles and that’s why we like this particular concept and structure is it has been time tested through those different cycles and performed very well. Mr. Brigham: And the funds are going to come in on what kind of basis? Are they coming in on a monthly basis, quarterly basis? Mr. Stallone: It will either come monthly or semi-annually. One of the final determinants in the pricing is to compare the structure of those two, monthly or semi- annually, and to see what produces the best pricing. And again, since the board hasn’t finally authorized it yet, that is one final detail that is yet to be worked out. Mr. Mayor: Commissioner Williams? Mr. Williams: Thank you, Mr. Mayor. We been talking about this swap for almost a year now. Got here to the door and still can’t swap it. But what benefit is it going to be to this government? I hear all these questions from all these mathematical geniuses that we got, that know all of this bond stuff. All my little stock is in my pocket right now. I’m not that—I just want to know what benefits this government is going receive for doing this swap. Mr. Stallone: If you look at the page that was just distributed to you— Ms. Beard: It’s right here. Mr. Stallone: --is the expectation based on 16 years of actual data, is that it should produce average annual cash flow to the water fund of $1.8 million a year. Now, the very first year it might be 400,000. But then the next year it might be 2.8. It is going to fluctuate. But using all the resources that we all have available to us, this demonstrates that historically has averaged 1.8 million of cash flow benefit to you. Mr. Williams: Mr. Mayor, I’m going to call for the question. My motion was to approve or somebody’s motion was to approve. But let’s go on and do this and get this over with if that’s the case. We been— Mr. Mayor: Okay. Mr. Williams: --hee-hawing around for— Mr. Mayor: The question has been called. We have a motion and second. Commissioners will now vote by the usual sign. Mr. Brigham and Mr. Grantham vote No. Motion carries 8-2. 33 Mr. Stallone: Thank you very much. Mr. Mayor: Thank you. Ms. Beard: Mr. Mayor, I would like to say one thing. I would like to thank him for the fine job he’s done and I’d just like to bring to the attention of everyone that his company is the top swap company in the country and we looked at others before making the decision to work with them. Mr. Stallone: Thank you. Mr. Mayor: Next agenda item, Madame Clerk? The Clerk: OTHER BUSINESS 27. Discuss the duties and responsibilities of the Marshal's Department as it relates to ARC Code Enforcement. (Requested by Mayor Pro Tem Marion Williams) Mr. Mayor: Mr. Williams? Mr. Williams: Thank you, Mr. Mayor. I had the Clerk put this on the agenda to talk about the duties and responsibilities. We have done a great job, I think, in cleaning up around this city of Augusta. We done a great job cleaning up around the city of Augusta as to, related to trash and stuff that been put on empty lots and different stuff. And I’ve got probably the majority of that. But I asked the attorney to give me some ruling on code enforcement and related to the Marshal’s Department. We end up calling Augusta Cares. They call the Marshal. The Marshal calls Rob Sherman’s office out there. And they end up picking it up. But I just need to hear from the attorney what’s the guidelines, what are we supposed to be doing, just where are we? Mr. Mayor: Mr. Shepard? Mr. Shepard: Thank you, Mr. Mayor. Members of the Commission, we have an ordinance and I brought it with me, where code enforcement could be handled and it’s empowering the agents of Public Works and Utilities to issue citations, a set of ordinances such as sediment control, such as junk cars. Your Marshal has full authority to cite for all violations that go into Magistrate Court, including code violations. We have adopted a practice where the code violations that were determined by some of these officers such as officers in Public Works, for example, or Code Enforcement would report that, not just independently, although they have that authority. They have been cooperatively working with the Marshal. The Marshal’s office was an appointed office I think until 1997 I think that he became an elected official. And he then has his own authority, Mr. Williams, for code enforcement. The departments, we understand, have worked with the Marshal largely because of a public safety issue. The public safety issue 34 being, quite frankly, that a marshal who is uniformed and sworn and is appearing in citation process to the violator appropriately attired with badge, gun and a thorough knowledge of the code sections. And so the main public benefit was that the Marshal could work through a situation which when the marshal cited somebody or when the code officer cited somebody they were note as respectful of that code officer as a marshal. The marshal appears to carry more authority. And so that has been the, that has been the policy and I have—I think it’s Ordinance 62-45 that sets forth those individuals not in the Marshal’s Department who can make those citations. I’ll be happy to put that into the record in just a minute. Mr. Mayor: Commissioner Williams? Mr. Williams: Thank you, Mr. Mayor. The attorney just shared with me that he’s able to carry a gun and a badge and that’s all I heard. I don’t see the relationship that we supposed to been putting together. We call Augusta Cares, they call the Marshal. The Marshal in turn call Code Enforcement. Code Enforcement calls our Public Works and we pick the stuff up. Now, if we’ve got to do that, we don’t need to have the Marshal involved. If the Marshal is going to go out and write a citation, fine these people, and get them into court, is what I thought they was able to do, but if you call Augusta Cares, Public Works—not Public Works, but Code Enforcement people has been the one to go out and pick this stuff up and fine these people. I don’t understand. Mr. Russell can attest, I called him the other day, [unintelligible] and MLK was a young man cleaning off an empty lot that we done picked up on 25 times. And the Marshal came out and I think they found the guy that was doing it. But when people dump stuff on these lots and set them out like that, we are not doing any good by letting it stay out there. We’ve got to find a way to let them know that that is against the law, that if you break the law there’s consequence for breaking the law. So I hear the attorney saying that the marshal have the badge and authority and gun but what’s being done to alleviate Now, I’m going to ask the Clerk to put it all of this stuff from repeat I haven’t heard. on Public Safety Committee that we talk about this in Public Safety. Get the Marshal to come in, [unintelligible] Code Enforcement, along with our administrator so we can sit down and put something in place that either they going to do it or they are not going to do it. So I make that in the form of a motion, Mr. Mayor, in order to have that done so we can get a process together. Now, I talked to Augusta Cares, and Martha King has been really good on trying to do what she can but it just goes round in a circle. We can alleviate calling the Marshal. Just go and call Public Works or somebody from Code Enforcement to have it picked up. But to call the Marshal and they put it down as if here’s another time that they dealt with, which they just wrote up. I mean we just approved four or five cars at $27,000 I think it was apiece. They look good driving down the road. But we need to get some dirt on them. They need to stop and work on these situations that is out there. I got a serious problem with that and I’d just like to see that we do something to get— Mr. Mayor: We have a motion. Is there a second? Mr. Holland: Second. 35 Mr. Mayor: Motion and second. Mr. Cheek? Mr. Cheek: Mr. Mayor, the reason we’re at where we’re at is exactly what the attorney said. The idea of having a Code Enforcement person go up, usually in maybe a shirt with a Public Works shirts on and no uniform pants, deliver a citation to a door for somebody that’s going to require them to clean up their yard at substantial cost is going to put these ladies and gentlemen at great risk in some situations. The reason we went to the Marshal’s Department is because they are licensed law enforcement officers, which does carry more weight, which adds an officialness which we, quite frankly, are not able to fund unless we certify all of our Code Enforcement people as law enforcement through the State, which is several thousand dollars apiece, one. Two, they generally drive their private cars to and from these different locations and if we again are going to send these people in the field we should put them in city vehicles which would be additional cost and additional gas consumption and wear and tear and additional vehicles to the fleet. So I encourage us to look through these process. Maybe there are some ways we can tweak the priority. The bottom line is whether it’s Code Enforcement or the Marshal’s Department, if we have repeat offenders it’s not either entity’s fault, it’s the repeat offenders unless we lock people up where they can’t go back and repeat offend. So we have to raise—we have to raise the penalties so high that we dissuade this type of behavior and that falls back on us. But I look forward to it coming to Public Safety and we will meet Monday at 3:00. Mr. Mayor: We have a motion and a second. Any further discussion? Commissioners will now vote by the usual sign. Motion carries 10-0. The Clerk: OTHER BUSINESS 28. Resolution Calling Special Election for filling Vacancy in 4th District Commission Seat. Mr. Brigham: Mr. Mayor, since I put in on the— Mr. Mayor: Mr. Brigham? Mr. Brigham: --the item on the agenda, I move that we call a special election for July 8th. Mr. Grantham: Second. Mr. Mayor: Mr. Williams? 36 Mr. Williams: Mr. Mayor, I think that we need some debate on, some conversation anyway, on whether we going to do it July when. I’m—is there not going to be another election in September, Mr. Mayor? Mr. Mayor: I believe—Mr. Shepard? Mr. Shepard: [unintelligible] Ms. Bailey. Mr. Mayor: Ms. Bailey? Mr. Shepard: We wanted the board to have the first opportunity to act in the situation. You’re running near the deadline and so Ms. Bailey and I were asked to put together a scenario for calling the election. The first election that you could call in this th District, District 4, would be for July 18, 2006. There are alternatives that we stated in the agenda item and the agenda item also refers to an authorized election date in th September, which is September 19, 2006, and you also could have it at the general election. The benefits of moving ahead would be to return the seat to an elected status as soon as possible. You would have no cost by doing it at the general primary because all the boxes in that District will be open. If you go to the September date you would have a th special election. I think you said [unintelligible] September 18 date? th Ms. Bailey: That is correct. The July 18 election date, as well as the November election date are, as Mr. Shepard said, dates on which the polling places in Richmond County would be open anyway. The September date currently, while the date is available to use as a special election, there is nothing scheduled to be held on that date right now. So to have that special election on that date would require separate funding that’s not currently budgeted in the Board of Elections budget. Mr. Cheek: What’s the cost? Ms. Bailey: The cost to open up those seven or eight—there are seven polling locations—would be approximately $20,000. Mr. Mayor: Mr. Williams? Mr. Williams: Lynn, thank you very much. And the reason I was [unintelligible] or looking at a later date to give all the candidates who going to run for this position time to run, time to meet the District out there, time to let the people know what they represent and what they about. If we rush this, if we do it took quick, I think we will not give them that benefit. They may think it’s easy but it is truly a job and it takes a lot of sacrifice and a lot of work and to give everybody an opportunity I wanted—Mr. Mayor, my interpretation was that we do this in September sometime. $20,000 is still—Lynn, [unintelligible] runoff? Ms. Bailey: There could—sure, there could be a runoff. So you could take that amount and times it time two. So yes, that would be the case. I can tell you also that I 37 think you have a timeline in your package that if it went forward to the July date you could see that we do not have many days between now and when our ballot must be prepared. So the only way that it would be possible to have this election in July is for this body to pass a resolution today for the Elections Board to meet tomorrow, and they are poised to meet in the event the Commission pushes forward with this. We would then publish the call for the election this Friday and open up qualifying the following Monday, th May the 8, for two-and-a-half days. So everything would happen very quickly. That’s the only way to do it and to satisfy certain federal laws that we’re required to adhere to because of the nature of the election coming up in July. Mr. Williams: If we went to September what would that do? Ms. Bailey: If you went to September, you know, certainly there’s more time. I think the issue in September is obviously the cost of doing the election. Moving on to September we would be talking about probably—and I would have to go back and study the timeline, I’m not prepared to discuss it with absolute accuracy, but the qualifying would probably be some time around the first part of August, maybe even the end of July. Mr. Williams: That’s all, Mr. Mayor. Mr. Mayor: Commissioner Holland? Mr. Holland: Yes, Mr. Mayor, I—being one who is still feeling the [unintelligible] of campaigning, I have to agree with Commissioner Williams. I think it would just be a little too quick to have these people to be voted on within the next few weeks. I think the applicant, the person that’s already been sworn in needs some time to give him an opportunity to move out through the communities so that they can get, the District, can get the constituents, to know them. So I totally agree that we need to just wait until September. I don’t think it’s going to hurt this city that much. It’s going to help the persons that’s running for these different positions. So I agree. Mr. Mayor: Commissioner Grantham? Mr. Grantham: Thank you, Mr. Mayor. I looked back and we had a similar situation here a couple of years ago, right after I was brought on board with an election in November. But we had two appointees at that time in January of ’04. And that was Ms. Beard and of course Ms. Sims. And there was a special election that was held in March, which reflect about the same time we’re talking about now. And so whether there was opposition or not, you know, these ladies did not request or was there any delay as far as an election time for July or even in November that following year. I don’t think we’re putting a burden on any particular person. I think what we’re doing is seeing who wants to step forward. I feel like there is an opportunity here for people to qualify next week if they so desire and to get on with it and [unintelligible] not an expense to the taxpayers of this community and I feel like we are doing the best for this entire government by going th ahead with this special election on July 18. Thank you, Mr. Mayor. 38 Mr. Mayor: Commissioner Cheek? Mr. Cheek: Mr. Mayor, I’m in favor of going ahead with it but my concern is that we don’t have a situation where we go to a special election in September for the sake of the appointee being in the seat for four additional meetings. If we trust the current person there and we decide to go to November or September, I plead with this body not to waste twenty thousand or so dollars of tax money that we can use in other areas and allow it to be held during the general election where we can allow the time and save the money. I’m just saying if we’re going to wait—if it’s the will of the body not to elect at this point in time to go with the earlier date, at least go to the later date and not waste the $20,000 over the sake of the same person being in the seat who is there now for four additional meetings, which is about the difference between the September and November dates. Mr. Mayor: Okay, but just a point of clarification. This resolution is to have it in July, but if we do not pass this resolution we can then make a decision between September and November. Ms. Bailey: Yes, sir. And again the time line that I’ve prepared for you all was to simply give you an opportunity put this on to a July vote if you chose to do that. But the other two dates are certainly available with the caveat that the September election would require additional funding. Mr. Williams: Mr. Mayor, if I can. Mr. Mayor: Commissioner Williams? Mr. Williams: The resolution calls for July, I think, but can’t we do this any time we set that time? We have to turn this down and then turn around on another agenda? Can I make a substitute motion, I guess is what I’m asking. Mr. Mayor: I believe the— Mr. Shepard: [unintelligible] Mr. Williams: I’m asking the question. I don’t want to vote this up or down and If we change to date to November, that would be the then come back with some else. only thing we need to do wouldn’t it? I make that in the form of a motion and see if I get a second on it. Mr. Mayor: Substitute motion. Mr. Hatney: Second. Mr. Mayor: We have a substitute motion and a second. Is there any further discussion? Commissioners will now vote by the substitute sign. 39 Mr. Brigham, Mr. Smith, Mr. Bowles, Mr. Grantham and Mr. Cheek vote No. Motion ties 5-5. Mr. Mayor: Oh, democracy in action. I, I will vote on the substitute motion to have the election in November. The Mayor votes Yes. Motion carries 6-5. The Clerk: OTHER BUSINESS 29. Motion to approve Resolution in support of expansion of Augusta 2-Way Free Calling Zone and any study required by law which must be undertaken prior to said expansion. (Requested by Commissioner Jerry Brigham) Mr. Mayor: Mr. Brigham? Mr. Brigham: Yes, sir. Two-way calling. Mr. Mayor, I asked this resolution be presented to us so to expand the local calling service, the area, so that we can include Waynesboro, Wrens and Thomson as local calling and make a request of the Public Service Commission to do a tariff study to see if this is possible and to figure out what the cost would be. Mr. Cheek: So move. Mr. Hatney: Second. Mr. Williams: Call the question. Mr. Mayor: Commissioner Williams? Mr. Williams: I was calling for the question, Mr. Mayor. Mr. Mayor: Oh. Any further discussion? Commissioners will now vote by the usual sign. Motion carries 10-0. Mr. Mayor: No further business? Mr. Shepard? FINANCE 17. Discuss the process for the selection of the Underwriters for the $44M SPLOST V Bond Issue. (Requested by Commissioner Betty Beard) 40 Mr. Shepard: In the matter of the bond, Mr. Woods has left but I would ask that Kilpatrick Stockton have the opportunity to file their engagement with the Commission which sets the fee for the SPLOST counsel for $75,000, and that includes local counsel. Mr. Mayor: Can we get a motion to that effect? Mr. Grantham: So move. Mr. Cheek: Second. Mr. Mayor: We have a motion and a second. Any further discussion? Mr. Williams? Mr. Williams: What we doing, Mr. Mayor? I thought we had [unintelligible]. Mr. Shepard: You had asked to have all the blanks filled in [unintelligible] and Jerry got away from here but to cap SPLOST counsel’s fee at $75,000. Mr. Williams: And all those questions we been asking— Ms. Beard: Is that in reference to this latest SPLOST, what we’ve just done? Mr. Shepard: Yes, ma’am. That’s for this [unintelligible]. Ms. Beard: Would you mind sending that to the Finance Committee? Mr. Hatney: So move. Mr. Williams: Second. Mr. Mayor: We have a motion and second. Commissioners will now vote by the usual sign. Y’all hang on. I’ve got one more thing to vote on right quick. Mr. Grantham votes No. Motion carries 9-1. Mr. Mayor: I would look for a motion to place Commissioner Brown on former Commissioner Colclough’s committee assignments. ADDENDUM 32. Motion to approve placing Commissioner Brown in former Commissioner Colclough's committee assignments. Mr. Williams: So move. Mr. Hatney: Second. 41 Mr. Mayor: We have a motion and a second. Any further discussion? Commissioners will now vote by the usual sign. Motion carries 10-0. Mr. Mayor: With no further business to come before this body, we stand adjourned. [MEETING ADJOURNED] Lena Bonner Clerk of Commission CERTIFICATION: I, Lena J. Bonner, Clerk of Commission, hereby certify that the above is a true and correct copy of the minutes of the Regular Meeting of Augusta Richmond County Commission held on May 2, 2006. ________________________ Clerk of Commission 42