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HomeMy WebLinkAbout06-24-1996 Meeting I I I FINANCE & APPROPRIATIONS COMMITTEE COMMITTEE ROOM - June 24, 1996 2:00 P.M. PRESENT: Hons. J. Brigham, Chairman; Handy, Vice- Chairman; Bridges and Beard, members; Charles Dillard, Interim Administrator for Operations; Linda Beazley, Interim Administrator for Administration; Paul DeCamp of the Planning Commission; Jim Wall, Interim Attorney; Harrison Sears, Tax Assessor; John Etheridge, Human Resources Director; Heyward Johnson, Acting Transit Manager; Lori D'Alessio of the Attorney's Office; A. B. McKie, Jr., Interim Comptroller; Glenn Greenway of the Comptroller's Office; Keven Mack of the Economic Development Office; Lena Bonner, Clerk of Commission-Council and Nancy Morawski, Deputy Clerk of Commission-Council. ABSENT: Hon. Larry Sconyers, Mayor. Also Present: Sylvia Cooper of the Augusta Chronicle, George Eskola of WJBF Television and Hons. Zetterberg, Todd, Mays and H. Brigham, Commissioners. Communication from the Interim Attorney submitting a letter from Carbonic Industries requesting a waiver of penalty in the amount of $1,084.23 and interest in the amount of $707.99, was read. Mr. Wall: I have represented this company in the past but do not represent them at the present time. It appears this was their error. Mr. Bridges: I move that we retain the penalty and interest. Mr. Handy: Second. Motion adopted unanimously. Communication from the Interim Attorney submitting a letter and attachments from R. Thomas Fuller requesting a waiver of penalty in the amount of $410.89 and interest in the amount of $253.29 on behalf of Bruce and Martha Lyons, was read. Mr. Wall: Here it appears there was a wrap-around mortgage and apparently the tax bill did not get in the proper hands and so I think it is appropriate that the penalty be waived but not the interest. Mr. Bridges: I move that we waive the penalty but not the interest. Mr. Handy: Second. Motion adopted unanimously with Mr. Beard out of the room. Communication from the Interim Attorney submitting a Resolution authorizing the transfer of assets in the 1945 and 1977 Pension Plans to be transferred to Smith Barney (Robinson Humphrey), was read. I Mr. Wall: In addition to the Resolution, I have a trustee certification and agreement on four different accounts but related to these two pension plans as well as a qualified retirement plan and IRA client agreement. I also have a Resolution naming certain authorized officers to act on behalf of those accounts, an investment agreement and a consulting group agreement. I recommend these for approval and suggest that these be dated as of the date of the transfer of the first Commission-Council action and just ratify these in order for us to go ahead and place these with Smith Barney so they can start exercising management responsibilities over these accounts. After a short discussion, Mr. Bridges: I move that we approve the documents as well as the Resolution. Mr. Beard: Second. Mr. Wall: Would you want to accept dating the documents them as of the last meeting in May? Mr. Bridges: I'll accept that amendment to the motion. I Motion adopted unanimously. The Committee next discussed RFP's for Financial and Legal Services. Mr. McKie: This is for the RFP for the proposed bond issue. This will involve waterworks and we will see if we can refinance with a level term payment and consolidate them all into one. The combined sewer overflow projects would be about $13 million and we would expect the total issue to be around $45 to $50 million. Mr. Todd: What would be the negatives and positives of going with an RFP? Mr. McKie: The positive would be that you would possibly have more people bidding for the services. The negative side is that you are dealing with professionals whose strength lies in their ability and what they bring to the table in terms of lower interest rates and lower overall costs. A person who bids cheaply might not have the market knowledge or the contacts and you end up paying a higher interest rate on the bonds and twice as much in the long term. We've always gone with a negotiated basis in which we've dealt with people we've known. We've always done well in this manner so far. Mr. Wall: I would think you would not be well served by I I I I going out with a true RFP. You could go out for a request for qualifications. Mr. McKie: I'd like to use the same people we have used in the past. We know the quality is there and we can negotiate the fee structure. Mr. Chairman: I feel that we should go out for the RFP in order to see what's out there for our benefit. After further discussion, Mr. Beard: I move that we have our legal and financial staff negotiate this with people we have dealt with in the past and get the best rates possible without the RFP. We would also not rule out unsolicitied proposals. Mr. Handy: I'll second that. Motion adopted with Mr. Brigham voting "No". The Committee next discussed standard criteria for future privatization proposals. Mr. McKie: We've talked about standardizing services. I'd like to propose that we develop a standardized approach to looking into this, something on an investment type of approach where we consider all costs, we use net present value in the approach and where we seek to minimize the long term cost or maximize the long term income to the government. I would like to see you endorse this so that we'll have a standard way of doing it no matter who works on the privatization and so that you don't spend your time looking at the methodology and wondering about the logic behind it. This would become a procedure for anyone to follow. Mr. Bridges: I move that we develop these policies and procedures for future privatization. Mr. Chairman: I'll second it. Motion adopted unanimously. Communication from the Interim Comptroller requesting that the attached lists of vehicles be declared surplus and sold at public auction. These are vehicles that are beyond their economic life and have been replaced by other vehicles. The Sheriff's Department is in dire need of parking space for its current operating vehicles. These vehicles represent funds that should go into our equipment pool. I recommend that the Clerk be directed to advertise immediately and the Administrator be directed to schedule the sale at the earliest legal date, was read. Mr. Beard: I move that we dispose of the vehicles and ask the Administrator or someone she designates to proceed with the process to conduct the sale. Mr. Bridges: Second. I Mr. Brigham: Paine College had asked for a vehicle; I don't know if this could help them or not. Ms. Beazley: The Sheriff says that most of these cars are not fit to be given to anyone. But I'll check with him. Mr. McKie: The Police Chief at Blythe had wanted a car. We had traditionally sold a car to Hephzibah and Blythe for $1.00 so if you wouldn't mind including that. Motion adopted unanimously. Communication from the Interim Comptroller stating the Amateur Athletic Union "Team Augusta" girls 18 and under basketball team has requested funds to participate in the National Youth Basketball League National Tournament. We have budgeted funds available for specific allocation. In the past we have made similar contributions for travel costs and entrance fees. This amount would total $1,025.00. There are other costs such as food and lodging that we have required the team to pay. I recommend the allocation, was read. . Mr. Beard: Second. I Mr. Bridges: I so move. Motion adopted unanimously. Communication from the Interim Attorney submitting a letter from Bill Warfield of Brookside Properties, Inc. requesting a waiver of penalty and interest by Augusta Equity, L.L.C., was read. Mr. Wall: This is a situation where the tax bill was sent to the wrong place because of a foreclosure sale. I think the waiver of the penalty is in order. Mr. Handy: I so move. Mr. Beard: Second. Motion adopted unanimously. An agreement between the Georgia Department of Corrections and Augusta-Richmond County regarding reimbursement by the County to GDC for expenses incurred in providing two accounting positions to collect and process persons serving probated sentences from the State Court of Richmond County, was read. Mr. Wall: I think this is a standard agreement we've had I I I I and I recommend it. Mr. Handy: I so move. Mr. Bridges: Second. Motion adopted unanimously. Communication from the Director of Human Resources submitting the retirement request from Marion F. Farr, was read. Mr. Etheridge: Everything is in order on Mr. Parr and I ask that you approve his retirement. Mr. Bridges: I so move. Mr. Beard: Second. Motion adopted unanimously. Communication from the Richmond County Board of Assessors submitting a refund recommendation from Raco Trucking in the amount of $145.12 and from Raco Service Station in the amounts of $73.92 and $3.34, was read. Mr. Handy: I move for approval. Mr. Bridges: Second. Motion adopted unanimously. Communication from the Interim Attorney requesting approval of a Franchise Agreement with Atlanta Gas Light Company, was read. Mr. Wall: This is basically a 3% franchise fee for 30 years. Mr. Handy: I move for approval. Mr. Bridges: Second. Motion adopted unanimously. Mr. Chairman: We need to add one item to the agenda. Mr. Handy: I move for approval. Mr. Beard: Second. Motion adopted unanimously. Mr. DeCamp: We were recently awarded two historic preservation grants by the Department of Natural Resources. The first is for $15,000 and will fund the development of design guidelines manual for the Bethlehem neighborhood. The second I is for $3,700 will help fund the printing of the Summerville design guidelines manual which was developed by the Summerville Neighborhood Association last year. We are asking for approval of the contracts with DNR for each grant and for you to front the total amount of the grants which is $18,700. These are reimbursable grants so we can't get the grant funds until after the projects are completed. Mr. Handy: I so move. Mr. Beard: Second. Motion adopted unanimously. Mr. McKie: I would like to pass out something I received from the Mayor's Office. It's a GMA telecommunications franchise management agreement. The Mayor asked that it be distributed for everyone to look at and make a recommendation. ADJOURNMENT: There being no further business, the meeting was adjourned. Lena J. Bonner Clerk of Commission-Council I NWM I