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HomeMy WebLinkAbout2015-11-24-Meeting Mintues Administrative Services Committee Meeting Commission Chamber - 11/24/2015 ATTENDANCE: Present: Hons. M. Williams, Chairman; D. Williams, Vice Chairman; Lockett and Davis, members. Absent: Hon. Hardie Davis, Jr., Mayor. ADMINISTRATIVE SERVICES 1. Motion to approve the revocation of the contract with Cigna for Universal Life and to negotiate an agreement with a vendor to offer the coverage elected by employees as well as new enrollments without requiring an Evidence of Insurability (EOI). Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner Mary Davis Commissioner William Lockett Passes 2. Motion to approve the minutes of the Administrative Services Committee held on November 10, 2015. Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner William Lockett Commissioner Mary Davis Passes 3. Report from the HCD Director regarding the difference between Enterprise Zones and Tax Allocation Districts. (Requested by Commissioner Hasan) Item Action: www.augustaga.gov Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve receiving this item as information. Motion Passes 4-0. Commissioner William Lockett Commissioner Mary Davis Passes 4. Motion to reauthorize the ordinance designating the Laney-Walker Enterprise Zone. Originally approved by Commission May 21, 2002. (Referred from November 17 Commission meeting) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner William Lockett Commissioner Mary Davis Passes 5. Motion to reauthorize the ordinance designating the Rocky Creek Enterprise Zone. Originally approved by Commission May 21, 2002. (Referred from November 17 Commission meeting) Item Action: Approved Motions Motion Type Motion Text Made By Seconded By Motion Result Approve Motion to approve. Motion Passes 4- 0. Commissioner William Lockett Commissioner Mary Davis Passes Administrative Services Committee Meeting 11/24/2015 1:05 PM Attendance 11/24/15 Department: Caption: Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: “Cigna” is a registered service mark, and ” the “Tree of Life” logo is a service mark, of Cigna Intellectual Property, Inc., licensed for use by Cigna Corporation and its operating subsidiaries. All products and services are provided exclusively by such operating subsidiaries and not by Cigna Corporation. Such operating subsidiaries include Connecticut General Life Insurance Company (CGLIC), Cigna Health and Life Insurance Company (CHLIC), and HMO or service company subsidiaries of Cigna Health Corporation and Cigna Dental Health, Inc October 28, 2015 RE: Augusta Richmond County Group Universal Life We have reviewed the circumstances for the proposed Group Universal Life (GUL) coverage for Augusta Richmond County. Our proposal reflected the Minimum Participation Requirement of 20% or 200 applicants. The agreed upon Open Enrollment Period (July 6,2015 through July 17, 2015) did not yield the minimum participation results that were needed for the coverage to be implemented with Cigna.. As a result the GUL offer is therefore being withdrawn. GUL policies will not be issued to the employer, or its employees. Inasmuch Augusta Richmond County sponsors Basic and Voluntary Term Life programs to its employees. Sincerely, Connecticut General Life Insurance Company Administrative Services Committee Meeting 11/24/2015 1:05 PM Cigna Revocation - Universal Life Department:Human Resources Caption:Motion to approve the revocation of the contract with Cigna for Universal Life and to negotiate an agreement with a vendor to offer the coverage elected by employees as well as new enrollments without requiring an Evidence of Insurability (EOI). Background:Augusta, Georgia reviewed several companies to select a single carrier for The Universal Life contract. The objective of the RFP process was to select a carrier who will provide eligible participants with a quality, affordable life insurance policy with high guarantee issue limits (minimum $100,000 GI) and a solid minimum guaranteed interest rate. The Cigna proposal reflected the Minimum Participation Requirement of 20% or 200 applicants. The agreed upon Open Enrollment Period (July 6, 2015 through July 17, 2015) did not yield the minimum participation results (only 90 employees participated) that were needed for the coverage to be implemented with Cigna (see attachment). For this reason, the Cigna contract needs to be revoked. Analysis:We reviewed four (4) compliant respondents to the Universal Life RFP. While all the companies had the capabilities required to provide this product to Augusta, Georgia, we felt that Cigna stood out above the others. Financial Impact:It had been more than seven (7) years since this policy was vetted. We believed that Cigna could offer employees an improved product with premium savings for most employees. There was no cost to Augusta Richmond County for this product. Alternatives:The alternative to our recommendation is to not have a Universal Life vendor. Recommendation:Negotiate an agreement with a vendor to offer the coverage elected by the 90 employees as well as new enrollments without requiring an Evidence of Insurability (EOI) Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Finance. Law. Administrator. Clerk of Commission Administrative Services Committee Meeting 11/24/2015 1:05 PM Minutes Department:Clerk of Commission Caption:Motion to approve the minutes of the Administrative Services Committee held on November 10, 2015. Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: Administrative Services Committee Meeting 11/24/2015 1:05 PM Enterprise Zones and Tax Allocation Districts Department:Clerk of Commission Caption:Report from the HCD Director regarding the difference between Enterprise Zones and Tax Allocation Districts. (Requested by Commissioner Hasan) Background: Analysis: Financial Impact: Alternatives: Recommendation: Funds are Available in the Following Accounts: REVIEWED AND APPROVED BY: ALL PARCELS - LANEY WALKER RESIDENTIAL AND COMMERCIAL - TAXABLE Value Summary 2001(Pre-Implementation) 2009 2015 $ 65,535,339 $ 87,844,855 $ 90,141,371 VALUE CHANGES 2001 TO 2009 2009 TO 2015 2001 TO 2015 $ 22,309,516 $ 2,296,516 $ 24,606,032 34% 3% 38% EnterpriseZone Growth Since Implementation Total Parcels 105 Value Summary 2001(Pre-Implementation) 2015 $ 3,751,990 $ 16,078,312 Dollar Growth $12,326,322 Percentage Growth 329% Existing Laney Walker Enterprise Zone Boundary Description Beginning at a point which is the intersection of the centerlines of 12th Street and Telfair Street thence in a southeasterly direction along the centerline of Telfair Street a distance of 4 540 feet more or less to a point of intersection with the centerline of 5th Street thence in a southwesterly direction along the centerline of 5th Street a distance of 3 660 feet more or less to a point of intersection with the centerline of Laney Walker Boulevard thence in a northwesterly direction along the centerline of Laney Walker Boulevard a distance of 1 080 feet more or less to a point of intersection with the centerline of the right of way of the Norfolk Southern Railroad thence in a southwesterly direction along the centerline of the Norfolk Southern Railroad a distance of 8 150 feet more or less to a point of intersection of the centerline of Molly Pond Road thence continuing southwest along the centerline of the Norfolk Southern Railroad a distance of 325 feet to a point thence going north 32 degrees 47 minutes west a distance of 2 480 feet more or less to a point on the centerline of Old Savannah Road thence in a northeasterly direction along the centerline of Old Savannah Road a distance of 1 090 feet more or less to a point of intersection with the centerline of the right of way of the CSX Beltline Railroad thence in a northwesterly direction along the centerline of the CSX Beltline Railroad a distance of 2 140 feet more or less to a point of intersection with the centerline of Clay Street thence in a northeasterly direction along the centerline of Clay Street a distance of 1 575 feet more or less to a point of intersection with the centerline of Anderson Avenue thence in a westerly direction and then a northerly direction along the centerline of Anderson Avenue a distance of 550 feet more or less to a point of intersection with the centerline of Poplar Street thence in a northwesterly direction along the centerline of Poplar Street a distance of 1 490 feet more or less to a point of intersection with the centerline of McCauley Street thence in a northeasterly direction along the centerline of McCauley Street a distance of 655 feet more or less to a point of intersection with the centerline of Wrightsboro Road then in a westerly direction along the centerline of Wrightsboro Road a distance of 175 feet more or less to a point of intersection with the centerline of RA Dent Boulevard thence in a northeasterly direction along the centerline of R A Dent Boulevard a distance of 4 325 feet more or less to a point of intersection with the centerline of D’Antignac Street thence in a southeasterly direction along the centerline of D’Antignac Street a distance of 950 feet more or less to a point of intersection with the centerline of 12th Street thence in a northeasterly direction along the centerline of 12th Street a distance of 2 165 feet more or less to the point of beginning. Recommended Laney Walker Enterprise Zone Boundary Expansion Description AHCD recommends that the Commission update the boundary description for Laney Walker Enterprise Zone to include Cherry Tree, the Foundry Site and its associated parcels thusly: Beginning at the point of intersection of the centerline of Laney Walker Boulevard and the centerline of R.A. Dent Boulevard; thence in a southwesterly direction along the centerline of R.A. Dent Boulevard to the point of intersection of the centerline of R.A. Dent Boulevard and the centerline of Wrightsboro Road; thence in an easterly direction a distance of 150 feet, more or less, to the point of intersection of the centerline of Wrightsboro Road and the centerline of Railroad Avenue; thence southwesterly along the centerline of Railroad Avenue a distance of 945 feet, more or less, to the point of intersection of the centerline of Railroad Avenue and the centerline of Poplar Street; thence southwesterly along the centerline of Poplar Street to the point of intersection of the centerline of Poplar Street and the centerline of Government Road; thence easterly along the centerline of Government Road to the point of intersection of the centerlines of Government Road and 15th Street; thence in a southerly direction along the centerline of 15th Street to the point of intersection of the centerline of 15th Street and the centerline of Suwanee Quintet Boulevard; thence easterly along the centerline of Suwanee Quintet Boulevard to the point of intersection of the centerlines of Suwanee Quintet Boulevard and the centerline of Lee Beard Way; thence northeasterly along the centerline of Lee Beard Way to the point of intersection of the centerline of Lee Beard Way and the centerline of Wrightsboro Road; thence in a southeasterly direction along the centerline of Wrightsboro Road to the point of intersection of the centerline of Wrightsboro Road and the centerline of Augusta Avenue; thence northeasterly along the centerline of Augusta Avenue to the point of intersection of the centerline of Augusta Avenue and the centerline of Laney Walker Boulevard. Administrative Services Committee Meeting 11/24/2015 1:05 PM Laney-Walker Enterprise Zone Reauthorization Department:Augusta Housing and Community Development Caption:Motion to reauthorize the ordinance designating the Laney- Walker Enterprise Zone. Originally approved by Commission May 21, 2002. (Referred from November 17 Commission meeting) Background:The Augusta Code at 2-4 provides for the Designation of Enterprise Zones as an economic development incentive for depressed areas suffering from disinvestment as a way to encourage reinvestment in housing and employment for the area. The area previously designated as the Laney-Walker Enterprise Zone meets the criteria for designation and reauthorization found at O.C.G.A. 36-88-8, and with continued development in the area related to the Neighborhood Revitalization Strategy specifically targeting the Laney-Walker and Bethlehem neighborhoods. Additionally, these neighborhoods are identified in the Augusta-Richmond County Comprehensive Plan as ‘Areas in Need of Redevelopment.’ With the assistance of these incentives, and further execution of these development plans, Laney-Walker / Bethlehem projects to see continued growth and development over the coming years. The designation, in place since 2002, will continue to allow for the incentives to businesses that create 5 or more new jobs being exempt from ad valorem taxes on a scale over a 10-year period. Residential investment will also continue to be encouraged through the continued 10-year ad-valorem property tax exemption as well. To better align this strategic economic development tool with currently planned developments in the area, we are recommending extending the boundaries of the Laney-Walker Enterprise Zone to incorporate developments already underway by Walton Communities in the old Cherry Tree Crossing area, as well as planned developments scheduled for the Foundry site location. Please reference the attached maps and boundary descriptions for precise descriptions of the recommended boundary expansions. Analysis:AHCD is working with reputable developers (in this expanded area) to construct/develop multi family high density housing (affordable on the Cherry Tree Crossing site & market rate on the Foundry site). The expansion of the enterprise zone, will potentially enable the developer to receive enhanced credits. As such, AHCD is before the Commission asking for permission to expand the boundaries of the existing enterprise zone to include these project sites. These project are consistent to the LW/B Urban Redvelopment Plan of providing a mixture of housing options in the LW/B area. The incentives of tax abatement are positive, and the theory is that revenue not realized due to the abatement would not have happened without the incentives. The abatement schedule for ad valorem taxes is as follows: 100% first 5 years; 80% for years 6 and 7; 60% for year 8; 40% for year 9 and 20% for year 10. In addition, the City could elect to waive fees and other forms of revenue. Financial Impact:See the Value Summary on the attached Boundary Map. Alternatives:1)Re-authorize Laney Walker Enterprise Zone with recommended boundary expansions (see attachment), 2)Reauthorize Laney Walker Enterprise Zone with existing boundaries, or 3)Don’t re- authorize Laney Walker Enterprise Zone. Recommendation:Re-authorize Laney Walker Enterprise Zone with recommended boundary expansions. Funds are Available in the Following Accounts: N/A REVIEWED AND APPROVED BY: ROCKY CREEK Total Parcels 20 Value Summary 2001(Pre-Implementation) 2015 $ 4,892,605 $ 7,483,126 Dollar Growth $ 2,590,521 Percentage Growth 53% ROCKY CREEK RESIDENTIAL AND COMMERCIAL - TAXABLE Value Summary 2001(Pre-Implementation) 2009 2015 $ 306,555,582 $ 361,880,525 $ 364,503,441 VALUE CHANGES 2001 TO 2009 2009 TO 2015 2001 TO 2015 $ 55,324,943 $ 2,622,916 $ 57,947,859 18%1%19% Administrative Services Committee Meeting 11/24/2015 1:05 PM Rocky Creek Enterprise Zone Reauthorization Department:Augusta Housing and Community Development Caption:Motion to reauthorize the ordinance designating the Rocky Creek Enterprise Zone. Originally approved by Commission May 21, 2002. (Referred from November 17 Commission meeting) Background:The Augusta Code at 2-4 provides for the Designation of Enterprise Zones as an economic development incentive for depressed areas. Rocky Creek meets the criteria for designation found at O.C.G.A. 36-88-8, and with continued redevelopment and reinvestment in the area encouraged by the Enterprise Zone tax incentives this area projects to see continued growth and development over the coming years. The designation, in place since 2002, will continue to allow for the incentives to businesses that create 5 or more new jobs being exempt from ad valorem taxes on a scale over a 10-year period. Analysis:The incentives of tax abatement are positive, and the theory is that revenue not realized due to the abatement would not have happened without the incentives. The abatement schedule for ad valorem taxes is as follows: 100% first 5 years; 80% for years 6 and 7; 60% for year 8; 40% for year 9 and 20% for year 10. In addition, the City could elect to waive fees and other forms of revenue. Financial Impact:See attached Valuation Summary contained on the Boundary Map. Alternatives:Reauthorize Rocky Creek Enterprise Zone or don’t reauthorize Rocky Creek Enterprise Zone. Recommendation:Reauthorize Rocky Creek Enterprise Zone. Funds are Available in the Following Accounts: N/A REVIEWED AND APPROVED BY: