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HomeMy WebLinkAbout03-25-1996 Meeting FINANCE & APPROPRIATIONS COMMITTEE COMMITTEE ROOM - March 25, 1996 2:00 P. M. I PRESENT: Hons. J. Brigham, Chairman; Handy, Vice-Chairman; Bridges and Beard, members; Jim Wall, Interim Attorney; A. B. McKie, Jr., Interim Comptroller; Charles Dillard, Interim Urban Services Administrator; Linda Beazley, Interim Suburban Services Administrator; Christy Attaway, Building Official; Glenn Greenway of the Finance Department; Lena Bonner, Clerk of Commission- Council and Nancy Morawski, Deputy Clerk of Commission-Council. ABSENT: Hon. Larry E. Sconyers, Mayor. Also Present: Wayne Partridge of the Augusta Chronicle, George Eskola of WJBF Television and Hons. Zetterberg, Powell and H. Brigham, Commissioners. The Committee first considered the matter of the Lawton B. Evans School property. At this time Mr. Pete Fletcher, Dr. Charles Larke and Mr. Paul Dunbar appeared before the Committee regarding this item. I Mr. Fletcher: Lawton B. Evans was used for years as a school and in 1992 and 1993 we used it for pre-K programs. The Augusta Players rented the auditorium. The School Board wanted to construct a new building for Davidson Fine Arts School downtown and the cost of that was about $12 million. Davidson does not qualify for~any state funds at all. The state gave us $75,000 toward planning but the rest would be local money. We decided to sell Lawton B. Evans and apply that toward Davidson. In doing the title examination, we found that Lawton B. Evans had been given to the school board by the City in the early 1900's and it says if we cease to use the school for educational purposes, the property reverts back to the City. We wrote the City and asked that they let us purchase it and in return, we would give a reversionary interest to the City in the new Davidson school that would have the same proportionate value as what we sold Lawton B. Evans for. The Finance Committee considered this on December 13, 1993 and they approved working with us on the transfer of the property when a sale was identified. City Council also passed this and based on this recommendation, the School Board issued $11 million in bonds in which part of the proceeds from the sale of this site would be used towards funding construction. We open the bids on April 7 for this. Paul Dunbar wrote me a letter saying that the proposal was not something the City would go along with but he thought we could reach an agreement. We talked back and forth and then the governments merged so that's where we are now. We are asking you to go along with the agreement made in 1993 with our pledge that we will use that money to add to the construction of Davidson and give you whatever reversionary clause would be equivalent. I Mr. Dunbar: In 1993 when they had that discussion, it was subject to the lawyers being able to work out the details of the transaction. I saw in the City Code that the the City cannot give away City property. It must be sold either by public sale or by public outcry. There is a provision in there where you can swap land of equal value but obviously a lapsed reversionary interest in this particular piece of property can hardly be compared to a reversionary interest in Davidson Fine Arts property which may not generate any money for the next 500 years. There is a provision in the law which says there can be transfers between governmental entities provided that the property is used for a public purpose. The problem here is we know that the property is not going to be used for a public purpose, it's going to be sold. We know that someone was willing to pay $600,000 and remove the asbestos in the building. Basically what you are being asked to do is to make a gift to the Board of Education of this property. We took this up in the last meeting of City Council and I was charged with getting together with Pete Fletcher to work out some sort of a compromise of this and we discussed a number of things. The other issue that came up was that it is a beautiful building and there was some question about its historic preservation. Everything was subject to the lawyers looking at the legal issues and working out the legal problems. Mr. Fletcher: We had a contract for $730,000 and would have netted about $670,000 and the purchaser was going to remove the asbestos. We need the money to make the budget balance. Mr. Erik Montgomery: I'm with Historic Augusta and we would like to express our concern about the future preservation of this property because it is a fine, historic building and is eligible for the National Register of Historic Places although it is not listed. We would request that regardless of what you do, that you place this under the Historic Preservation Ordinance which would mean that the future of the property, whether it is restored or eventually torn down, that whatever remains there or is built back can come before the Preservation Commission and be reviewed so that we can have some control over this site. Mr. Beard: Would this affect your moving forward with the Davidson project? Mr. Fletcher: No, but we had counted on this and we will have to find the differential in funds to balance the budget. After further discussion, Mr. Beard: I move that since the School Board has no use for that property and it's not being utilized for that purpose, that we retain our interest in the property. Mr. Bridges: Second. I I I Mr. Handy: Could we take this before the full Commission? I Mr. Chairman: We would have to do that anyway. If you want to make a motion to table it, I'll take it. Mr. Handy: I'll do that. Mr. Chairman: I'll second it. Motion dies with Mr. Bridges and Mr. Beard voting "No". Mr. Chairman: We'll vote on the original motion now. Mr. Handy: Was there a signed agreement? The Clerk: No, there wasn't. Motion dies with Mr. Handy and the Chairman voting "No". Mr. .Chairman: This will go to the full Commission. Communication from the Interim Attorney submitting a request from Landrum Supply Company for a waiver of penalties for taxes on certain parcels of property, was read. I Mr. Wall: North said there was nothing irregular in the handling of this. I would recommend that you waive the penalty but not the interest. Mr. Beard: I so move. Mr. Handy: Second. Motion adopted unanimously. -. Communication from the Interim Attorney requesting the approval of the abatement of taxes on property located at 602 Taylor Street which is being leased by Augusta-Richmond County. The Board of Education has already approved a waiver of taxes on this property, was read. Mr. Handy: I so move. Mr. Bridges: Second. Motion adopted unanimously. I Communication from the Interim Attorney submitting a letter from Joseph C. Garrison requesting a waiver of penalties and interest (a total of $5,899.49) due to the original tax notices being mailed to P. O. Box 2603 rather than P. O. Box 260. The penalty amount is $4,376.50 and the interest amount is $1,522.99, was read. Mr. Wall: I think it's appropriate to waive the penalty but not the interest. Mr. Bridges: I so move. I Mr. Handy: Second. Motion adopted unanimously. The Committee next considered information regarding the Crime Bill of 1995. Mr. McKie: This bill, which is known as the Victims Bill of Rights, has mandated funding of a Victims Rights Program through the Solicitor's Office and the District Attorney's Office. This will be funded by the addition of 5% fines imposed on those who appear in court. These two offices are ready to implement this and have acquired office space and are ready to hire the people and begin the program. We recommend that we establish the Coordinator, Assistant Coordinator and Secretary positions in each office and fund these positions for the coming year. We are mandated to do this. Mr. Bridges: I move we approve the recommendation of the Comptroller. Mr. Beard: Second. Motion adopted unanimously. I Communication from the Interim Comptroller regarding a request to purchase prior year services for 1977 Retirement plan from Benny R. Pennington, Water and Sewerage Department, was read. Mr. Bridges: I so move. Mr. Chairman: Second. Motion adopted unanimously. The Committee next discussed the proposed bond issue. Mr. McKie: We have proposed and discussed the refinancing of waterworks bonds and the evaluation of the entire debt structure of the new government. In order to proceed with that I would like to propose that we prepare in conjunction with the County Attorney RFPs for selection of an investment banker and bond counsel for this project and bring it back to the Committee at its next meeting for review, hopefully recommendation and passage by the full Committee. Mr. Bridges: I so move. I I I I Mr. Beard: Second. Motion adopted unanimously. Communication from BellSouth submitting a new agreement for the BellSouth commission for your pay telephones. You are currently receiving 20% commission on BellSouth usage from these phones. With the new agreement your commission would increase to 25% on BellSouth usage as long as the phones average $4.00 per day of BellSouth usage. The $4.00 minimum is a change from your current contract. Also, this new agreement grants BellSouth the exclusive rights for the installation and maintenance of your public telephones. This agreement covers the BellSouth telephones on Broad Street, 28th Street, 19th Street and the transit facility at 1546 Broad Street. Please let me know if any other areas should be covered by this agreement, was read. The Clerk: This is for pay phones in various locations. These phones brought in approximately $6,400 last year as revenue for the City. Apparently years ago someone authorized that the commission checks for the phones in the lobby of this building be sent to the Junior Chamber of Commerce because they helped finance the Christmas parade at that time. They cannot provide me with a signed document to that effect. This agreement is for five years and they want an exclusive on these phones. The Recreation Department has a few phones, the Library has three and they're proposing we put all of these under one agreement at 25%. You may want to refer this to someone to check into. Mr. Handy: I move that we refer this to the County Attorney for his review. Mr. Beard: Second. Motion adopted unanimously. ADJOURNMENT: There being no further business, the meeting was adjourned. Lena J. Bonner Clerk of Commission-Council NWM