HomeMy WebLinkAboutRegular Commission Meeting November 1, 2016
REGULAR MEETING COMMISSION CHAMBER
NOVEMBER 1, 2016
Augusta Richmond County Commission convened at 2:00 p.m., November 1, 2016, the
Hon. Hardie Davis, Jr., Mayor, presiding.
PRESENT: Hons. Lockett, Guilfoyle, Sias, Frantom, M. Williams, Fennoy, D. Williams,
Hasan and Davis, members of Augusta Richmond County Commission.
Absent: Hon. Smith, member of Augusta Richmond County Commission.
Mr. Mayor: I’ll call this meeting to order. The Chair recognizes Madam Clerk.
The Clerk: Yes, sir, at this time we will have our invocation delivered by Pastor Joseph
Lennon, Senior Pastor, Augusta First Church of the Nazarene after which we’ll have our Pledge
of Allegiance to the Flag. Would you please stand.
The invocation was given by Pastor Joseph Lennon, Senior Pastor, Augusta First Church
of the Nazarene.
The Pledge of Allegiance to the Flag of the United States of America was recited.
Mr. Mayor: Pastor Lennon, thank you so much for your spiritual guidance and your civic
leadership to our community. We want the citizens of Augusta to know that you are representing
the body of faith very well and we salute your efforts. Would you give him a round of applause
on today? (APPLAUSE) Pastor.
Pastor Lennon: Thank you so much.
Mr. Mayor: My pleasure.
The Clerk: At this time we’ll have our Recognitions of Service, Mr. Mike Loeser along
with the Administrator and the Mayor.
Mr. Loeser: Thank you. My name’s Mike Loeser, your Human Resources Director. Today
we are happy to recognize our Years of Service Recipients. For the month of October there are 25
to 20-year recipients and 13 25 to 50-year recipients of which four are here this afternoon. With
25 years of service Dana Totka with the Marshal’s office. (APPLAUSE) Ralph Gunter from our
Fire Department. (APPLAUSE) With 30 years of service Tangela McCorkle from Augusta 911.
(APPLAUSE) George Clemmons from our Parks and Recreation Department. (APPLAUSE)
The Clerk: I call your attention to our consent agenda with consists of items 1-13, items
1-13. For the benefit of any objectors to our Alcohol petition once the petition is read would you
please signify your objections by raising your hand. I call your attention to:
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Item 1: Is to approve a request for an on premise consumption Liquor, Beer & Wine
License to be used in connection with 2864 Deans Bridge Road.
The Clerk: Are there any objectors to this alcohol petition? Mr. Mayor, members of the
Commission, our consent agenda consists of items 1-13 with no objectors to our alcohol petition.
Mr. Mayor: The Chair will entertain any motions to add or pull from the consent agenda.
There being none ---
Mr. Lockett: Move to approve.
Mr. Hasan: Second.
CONSENT AGENDA
PUBLIC SERVICES
1. Motion to approve New Ownership Application: A.N. 16-35: a request by Charles
Kendrick for an on premise consumption Liquor, Beer & Wine License to be used in
connection with Kush located at 2864 Deans Bridge Rd. There will be Dance. District 2.
Super District 9. (Approved by Public Services October 25, 2016)
ADMINISTRATIVE SERVICES
2. Motion to approve the Abandon Property Task Force and ask Housing & Community
Development, Marshal’s Department, Code Enforcement and Environmental Services to
meet with representative from Mt. Calvary Baptist Church, Liberty Baptist Church and the
House of Prayer regarding the cleanup of abandoned properties near 1200 block of
Wrightsboro Road. (Approved by Administrative Services October 25, 2016)
3. Motion to approve the award of the RFP for PBM (RFP #16-236) to Magellan and
authorize the Mayor to execute the approved contract for a period of three years. (Approved
by Administrative Services October 25, 2016)
PUBLIC SAFETY
4. Motion to amend the contract between Richmond County Correctional Institution (RCCI)
and Trinity Services Group, Inc. to reflect changes in the cost of meals. (Approved by Public
Safety October 25, 2016)
5. Motion to approve the award of RFQ Item #16-198 Architectural Design Services to
Johnson Laschober & Associates and authorize the Mayor to execute the appropriate
documents. (Approved by Public Safety Committee October 25, 2016)
ENGINEERING SERVICES
6. Motion to approve change order #1 for construction of the Goodrich Street Raw Water
Pumping Station (RWPS) in the amount of $1,122,307.00. (Approved by Engineering
Services Committee October 26, 2016)
7. Motion to approve Change Order for Professional Services for Goodrich Street RWPS.
(Approved by Engineering Services Committee October 25, 2016)
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8. Motion to approve the award of Bid #16-239 for the extension of water and sanitary sewer
services at Gordon Highway and Jimmie Dyess Parkway. (Approved by Engineering
Services October 25, 2016)
9. Motion to determine that the Alley between 512 Reynold Street and 514 Reynold Street
as shown on the attached plat has ceased to be used by the public to the extent that no
substantial public purpose is served by it or that its removal from the county road system is
otherwise in the best public interest, pursuant to O.C.G.A §32-7-2, with the abandoned
property to be quit-claimed to the appropriate party(ies), as provided by law and an
easement to be retained over the entire abandoned portion for existing or future utilities as
directed by Augusta Engineering Department and Augusta Utilities Department. (Approved
by Engineering Services Committee October 25, 2016)
10. Motion to approve Utilities Department Contract Redetermination with Fort Gordon
and Authorize Additional Positions. (Approved by Engineering Services Committee October
25, 2016)
PETITIONS AND COMMUNICATIONS
11. Motion to approve the minutes of the regular meeting of the Commission held October
18, 2016 and Special Called Meeting October 25, 2016)
APPOINTMENTS
12. Motion to approve the appointment of Mr. Roy Jones to the ARC Library Board of
Trustees representing District 6.
13. Motion to approve the appointment of Mr. Brian Mosley to the ARC Transit Citizens
Advisory Board representing District 9.
Mr. Mayor: --- thank you, we’ve got a motion and a second to approve. Voting.
Mr. M. Williams: Mr. Mayor, point of order please, personal privilege I guess might be in
order, personal privilege, Mr. Mayor.
Mr. Mayor: All right, state your inquiry.
Mr. M. Williams: I’m voting for the consent agenda but I think number ten we should
have some conversation with our Engineering as to what we’re doing at Fort Gordon as to what
our position is and what could possibly take place out there. I’d just like to enter it into the record
so we can a talk with maybe the Engineering Department or Tom Wiedmeier whoever needs to
have that conversation I think to have a conversation with that.
Mr. Mayor: Absolutely I couldn’t agree with you more. All right we’ll make sure that
that’s part of our meeting minutes and we’ll have some follow up conversation, thank you. All
right voting.
Mr. Lockett: Mr. Mayor there’s a blank screen up here.
Mr. Mayor: Okay, all right at this point you’ve voted and we’re just waiting on the
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Commissioner from the 10, he’s not here.
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Mr. Smith out.
Motion Passes 9-0. \[Items 1-13\]
PRESENTATION(S)
A. Presentation by Ms. Becky Shealy, Interim Director Daniel Field Airport regarding
Daniel Field Airport. (Requested by Commissioner Dennis Williams)
The Clerk: Mr. Mayor, members of the Commission, under our Presentation portion of the
agenda this item has been rescheduled to our next Commission meeting.
Mr. Mayor: Thank you.
The Clerk:
ADMINISTRATIVE SERVICES
14. Motion to approve by Resolution the FY 2017 Annual Action Plan for the following
programs funded by the U.S. Department of Housing and Urban Development (HUD):
Community Development Block Grant (CDBG) Program, Home Investment Partnerships
(HOME) Program, Emergency Solutions Grant (ESG) Program, Housing Opportunities for
Persons with AIDS (HOPWA) Program. (No recommendation from Administrative Services
Committee; Received as information Commission meeting 10-4-16)
Mr. Mayor: Okay, in our last meeting this came from Administrative Services I believe
and there was a lot of discussion as it relates to this and what was being asked of this body. I’m
going to recognize the Chairman of Administrative Services and then we’ll hear from the Director
of Housing and Community Development Mr. Welcher to speak to the resolution at the appropriate
time. All right, the Chair recognizes the Chairman of Administrative Services. Commissioner
Williams.
Mr. M. Williams: Thank you, Mr. Mayor. I guess my first question would be about the
document that we received. I know we have the best Clerk in America but my first question is did
this document come out of the Clerk’s office like this as far as the heading, I can’t really understand
all of the entities I’m supposed to be looking at because of the ---
Mr. Mayor: Okay, all right, so let’s do this right here. I’m going to draw everybody’s
attention to Tab 14 all right, everybody’s attention to Tab 14 and Mr. Welcher, if you’ll approach,
all right.
Mr. M. Williams: Well and if that’s the case I’m really having issues because we talked
about this in the last meeting it came to the full Commission because we need to do something
because of the timeline and I understand that. But when you get documents that I can’t even tell
what the heading is on it, it just raised a lot of concern when you’re talking about an entity with so
much funds that affects so many different facets. Me and Mr. Welcher had several conversations
but I’ve got a couple of questions, Mr. Mayor, I guess I just need to ask those not knowing exactly
what I’m asking so don’t feel Mr. Welcher I’m being that I’m scrutinizing you as much but I
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couldn’t tell exactly what I was looking at because this has been mis-print, bad print, bad machine
whatever it is I just didn’t come out good. But these HOPWA funds, can you explain what those
funds are, what they do?
Mr. Mayor: All right Commissioner can, all right so all right, yeah, just suspend for just a
minute. Okay, I believe Mr. Welcher has a presentation, is that correct?
Mr. Welcher: Yes.
Mr. Mayor: Okay would you like to go through the presentation first and maybe that will
answer the questions that may come up?
Mr. M. Williams: The questions let me respond, Mr. Mayor, just to you if we got this
information that I carried around in my house, in my sleep, in my car and then I got to go through
a presentation to get to the understanding that I didn’t need to have it sent to my house. I mean so
I’m just saying that if we’re going and that’s the reason for getting our booklets our early so we
can go through it. I’ve got no problem with going through it again but I’m looking at some stuff
that I took out of my folder that I really can’t understand and maybe the ones that y’all got might
be a little bit different and maybe I’m the only one to see this but, okay so ---
Mr. Mayor: Okay, all right so this is how we’re going to do it. Mr. Welcher, here’s what
I’d ask you to do. I see you’ve got a series of slides up here and I think the slides that are of
question that begin with the tabular charts, okay and that’s where you’re spending the revenue in.
Is that correct, Chairman Williams?
Mr. Welcher: That’s right.
Mr. Mayor: Okay all right so if you’ll start there with a proposed action plan where you
spend the resources at I think that’s where you need to be.
Mr. Welcher: Okay Mr. Mayor and members of the Commission first thing that I will say
is the documents that you see before you now were sent to the Clerk’s office via an email
attachment so I just want to be sure everybody clearly understands that we did not photocopy the
documents that you have in your packets and your signatures. I just want to be sure that everybody
clearly understands that. The item before you is our, HCD’s recommendation for this body to
adopt or approve the 2017 HUD Annual Action Plan as submitted. The plan is the City of
Augusta’s through our department annual application what you see before you which lists activities
to be undertaken next year utilizing CDBG, HOPWA, ESG and HOPWA funds. At this point our
compliance measures have been met. Only two written comments have been received therefore
your approval today will allow for HCD to proceed with this submittal. What you have before you
here you see 2017 proposed. Typically when you’re submitting applications on an annual basis to
HUD your 2017 numbers should match your 2016 actual numbers and as you see there that’s what
you have. A question may come up as to your estimated program income. Program Income
basically is funding that we receive back from subsidy loans that we put out, funding that we will
receive back from housing sales, funding that we will receive back from down payment of closing
costs loans that come back to our department. So, our estimated revenue for 2017 is $3.9 million.
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Our expenditures as you see for have been categorized or summarized into the various categories
CDBG services. Basically what that is are working with those non-profits that provide services
for the good of the community. CDBG Housing and Development which merely entails for the
most part housing rehab activities as well as emergency rehab activities. CDBG Economic
Development, this is the portion of funding that we have to be able to work in partnerships to
provide small business element loans for new and existing business owners. CDBG Contingency
you CDBG Contingency what that is it allows us to be able to provide funding whether it be for
demolition, clearing whether it be pretty much for additional rehab it’s just actually a contingency
fund that can be used at the allow of the Administrator and/or the Commission.
Mr. Mayor: Mr. Welcher, can you suspend for a moment?
Mr. Welcher: Sure.
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Mr. Mayor: Okay, all right the Chair recognizes the Commissioner from the 9 for a series
of questions.
Mr. M. Williams: Thank you, Mr. Mayor. Mr. Welcher, you said you emailed these
documents that I have here but these documents I guess emailed like this to our Clerk. I’m hoping
that our Clerk did not just inadvertently put this in our, in my packet. Now the rest of them are
probably all right with that but my eyes are gone. I can’t hardly see my hand in front of my face -
--
The Clerk: I have the same copy you have Commissioner.
Mr. M. Williams: Okay well ---
The Clerk: Once we printed it out the attachment that’s what we ---
Mr. M. Williams: I want to ---
The Clerk: --- that was the result of printing out the attachment.
Mr. M. Williams: --- I want to clarify that. I don’t think Mr. Welcher intended but that’s
the way it came and what he gave you, right?
The Clerk: Yes, sir.
Mr. M. Williams: Well, that’s the way it came to my house and when my packet, and I
really can’t tell what I’m looking at it I mean even right here now and I’ve got some issues with a
couple of things. With all these acronyms and people here the CDBG, ESG funds and HOME
fund the HOPWA fund people don’t understand that, that’s Greek. And when you talk about all
of the thousands of dollars that we’re spending in different areas then money recaptured coming
back in money put in one place and another I’m getting a little bit confused. But let me ask my
question. Is any changes being made I guess is the best way to put it to the programs or the money
that’s been coming into Augusta. And you gave me a copy of it but I asked you for that before the
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money that we receive from the Federal Government into this city. So my question is any of this
money being used differently than what the program was set up before for, that’s the first question
for Mr. Welcher.
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Mr. Welcher: When we came before you on September 28 and we came before you on
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October the 4 and the presentation that we provided to you and the numbers we provided to you
at that time the numbers have not changed.
Mr. M. Williams: Okay, so tell me what do you use the program income for I mean what’s
that used for?
Mr. Welcher: Program income, we received program income from the different programs
so from a housing standpoint just say HOME when we provide funding to a nonprofit or a CHODO
to build a home when the home is sold and the funding comes back to this government or back to
HCD we put it back into the pot to be able to provide additional housing programs and services.
Mr. M. Williams: And once we approve this program that money don’t come back to this
body no more because it’s been approved to do housing with. So ya’ll do some other housing with
it, is that right?
Mr. Welcher: That’s correct and a good thing to notate about program income you’re
receiving program income because through a lot of these services especially when we work with
nonprofits and CHODOs the way that we commit the funding is as a loan. If we gave it to them
in grants you would not have program income coming back but since the Federal Government has
on an annual basis continued to decrease these programs and the allotments that come in on an
annual basis we thought that it was prevalent to be a couple of things. We’re supporting and
helping our nonprofits by being able to leverage their funding and being able to provide affordable
housing and/or provide services but also on the back end the City of Augusta is protecting the City
of Augusta is giving money back that we can relend back out for additional activities.
Mr. M. Williams: Okay, in services, some of you mentioned some of the very important
not just putting a home up a house up but services that people that need those services. How can
this body be assured that those services I mean you can put a person in a house or in a building but
providing the services and making sure they’re that it’s being carried all the way through like it
needs to be. How do we know that’s taking place?
Mr. Welcher: Well, a couple things. One would be based on your approval of the Annual
Action Plan that you have before you if we’re just taking 2017 based on what you approve is how
the funding has to be used unless we come back before you and say we want to make a change to
this Annual Action Plan that you have approved. And typically what happens is if there is a
substantial change, if we’re making a change to the plan that you approved that is above $50,000
dollars typically we come back. Those things that are under $50,000 dollars typically we don’t.
The second thing would be is every dollar that we provide to a nonprofit service recipient CHODO
we are providing it to, Commissioner on a reimbursement basis. We don’t provide these funds up
front so they must show just cause and they must provide adequate documentation to show where
they have completed the activity in which they’re trying to be reimbursed for.
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Mr. M. Williams: My long-term experience taught me something from Ms. Stella, what’s
her name, Ms. Bonner ---
Mr. Welcher: Stella Taylor.
Mr. M. Williams: --- Ms. Taylor told us as a body that we had a two many CHODOs. I
thought the more we had the better but she explained something to me in my tenure that you can
have too many. But if we don’t know who’s doing what, who’s getting the same money or who’s
not getting money how can we get a handle on that, Mr. Welcher, to know that the same people
ain’t coming back to the pot that’s being done because you deal with a lot of federal monies.
You’re the gatekeeper so to speak. And so going through your office, going through your
department that’s where this stuff is handled at so how do we know that this is being done and it
ain’t a repeat, however ya’ll want to phrase it. I don’t know how to phrase it.
Mr. Welcher: I’ll definitely tell you there is no repeat. We have competitive application
process across all programs. Those who perform are awarded. Those who don’t are not.
Mr. M. Williams: Okay what is that H O, what’s HOPWA what does that stand for
HOPWA.
Mr. Welcher: Housing Opportunity for Persons with Aids.
Mr. M. Williams: Housing Opportunity for Persons with Aids and that’s a very serious
issue we hear that all the time. Is that program being changed, are we using those funds for that
or are we using those funds for something else at any time? Let me go back. Let me change by
changes have we used that money that’s specified for that purpose which you just said, have we
used that for something else at any time?
Mr. Welcher: No, sir ---
Mr. M. Williams: Okay ---
Mr. Welcher: --- that would be ineligible.
Mr. M. Williams: --- okay. That’s all, Mr. Mayor. I’ve got a couple more but my
colleagues ---
Mr. Mayor: Go ahead if you want to. Why don’t you go ahead and continue your series
of questions. Let’s go ahead and exhaust them and then I’ll recognize somebody else.
Mr. M. Williams: Well, Mr. Welcher answered my question that he says he’s not changing
the services. They’re not using HOPWA funds for anything but for that. Is that right?
Mr. Welcher: The funding that you see before you will be used for eligible activities,
correct.
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Mr. M. Williams: Not just before me it can be behind me I ain’t talking about this before
me I’m talking about the funds that we’ve been getting into this city for well for how many years
it’s been coming in. I asked my question have we ever used it or do we, you see a lot of times we
take one pot and use it to help another pot to get over the stove or something. So I’m trying to
make sure that if that’s the case I need to know I’m just trying to ask those questions is that ---
Mr. Welcher: Your HOPWA funding are used for only HOPWA eligible activities,
otherwise the city would have been deemed non-compliant and would’ve had to pay money back
which has not been the case.
Mr. M. Williams: We have used other monies to help other programs, we have changed
direction on monies, right? In legal cases where we can do that we have done that, right?
Mr. Welcher: You can leverage in partner funding in federal funding, yes, you can.
Mr. M. Williams: Okay, okay so what funds did we use when we did that at that time. I
ain’t talking about what’s in front of me but just ---
Mr. Welcher: HOPWA funding?
Mr. M. Williams: --- any funding. I’m trying to get a handle on it because it’s a lot, Mr.
Welcher.
Mr. Welcher: Okay.
Mr. M. Williams: I mean when you talk I told you.
Mr. Welcher: Yes, sir, well you, we’ve got situations where we use CDBG and HOME
money together. We’ve been able to use the CDBG money to demolish and clear a lot and use the
HOME money to construct a lot so that would be one example.
Mr. M. Williams: Okay, Mr. Mayor, thank you, I appreciate that.
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Mr. Mayor: The Chair recognizes the Commissioner from the 1 the Engineering Services
Chair Commissioner Fennoy.
Mr. Fennoy: Mr. Welcher ---
Mr. Welcher: Yes, sir.
Mr. Fennoy: --- the, would you go back to the, I think the slide before this one. It was the
one where it’s $50,000 dollars less this year than last yeah, $50,000 dollars less this year than they
got last year. Right here, right here, this right here. The $50,000 dollars that’s short for 2017, is
this coming from St. Stephens Ministry?
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Mr. Welcher: No, sir, it’s not. That would be, that’s CDBG funding and what you’re
showing is actually a decrease there. What we did was move that money down to the contingency
line. St. Stephens I believe what you’re referencing would be down in the HOPWA, HOME and
services line.
Mr. Fennoy: Okay and the reason I asked this question is because I got a letter from St.
Stephens. Are you familiar with that letter?
Mr. Welcher: Very familiar with the letter, sir.
Mr. Fennoy: Okay and would you give me your position on that letter and the impact that
it would have on that program?
Mr. Welcher: The letter had to do with, if you look at the recommended funding levels for
St. Stephens Family Initiative in East Augusta CDC each one of these I call them partnering
agencies, service providers took a reduced $55 to $60,000 dollars. And the reason they were
reduced in our opinion based on the funding that we had to work with was you see the line where
it says HOPWA Community Residents. The program or the strategy HOPWA Program in itself
talks about several things if you go back and read the regulations and what it talks about is the
program strategy is to provide housing and support services. And an applicant that comes through
the HOPWA Program must within 15 days of coming through the program they must commit to a
housing plan. So at the end of the day it’s all about being able to be sure that within a five-year
period a person who has been diagnosed with AIDS or HIV they come in that they are giving
sound case management, they are given sound support services and support but at the same time
we have to be sure that there’s adequate housing available whether through transitional permanent
housing for persons who are considered, who have HIV and AIDS. So what we try to do, I am
very happy and confident with the partners that we have. And in working with St. Stephens
Foundation East Augusta CDC I think they’ve done a great job of providing the services so it’s no
knock against them but all we’ve been able to do is work with the funding that we have. If you’ll
allow me to show you this slide here. If you notate the green line, let me just give you some facts.
The green line here this is your HOPWA line so as all other funding sources have continued to
decrease HOPWA has increased over the years. I’m not saying I’m happy about it. If you go back
to 2011 where I have my cursor here the City of Augusta received around $425,000 dollars total
for the HOPWA Program. Why? Through the Georgia Department of Health on prorata share
based on the number of HIV and AIDS cases. Based on that number they provide a certain amount
to the city. Well, as you can see today five years later instead of getting $425,000 dollars a year
the City of Augusta is getting over a million dollars. Now let me give you something else. The
money cannot just be used for Augusta Richmond County. The money is for the entire
Augusta/Aiken, South Carolina Metropolitan statistical area which consists of Burke County,
Columbia County, McDuffie County, Richmond County, Aiken County as well as Edgefield
County. If you look at Aiken and Edgefield, you have 15 cities that this funding has to stretch to
so we have to be sure on the back end that we’re talking about a holistic approach not only
providing the support services which we do very good at doing. And St. Stephens is providing
housing but we need for all of our service providers to be sure that when we talk about a housing
plan for our clients who have HIV. Everybody deserves housing. I’ll never change that. So, for
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the persons who have a housing plan we have to be sure on the back end that there’s funding
available to be able to provide that product as well.
Mr. Fennoy: And, may I continue, Mr. Mayor, and my concern is whether St. Stephens
will be able to continue to provide the services they’re providing if they are cut by $50,000 dollars.
Mr. Welcher: If I may respond, sir.
Mr. Fennoy: Yes, sir.
Mr. Welcher: My response to that is I had a conversation with the Executive Director of
St. Stephens on yesterday, I had a conversation with the Executive Director of Family Initiative
on yesterday, had a conversation with the Executive Director on East Augusta CDC on yesterday
and based on additional funding, based on one of our service providers who has experienced new
leadership, who has experienced turnover of staff, they are relinquishing a great percentage of their
funding if not all. So, there is additional money that has come back into that will be coming back
into our coffers here recently. So,my conversation with these agencies on yesterday and they can
stand and attest is the fact that they will be funded, they potentially will fund them at the same
level that they were funded at last year so hopefully there will be no cuts.
Mr. Fennoy: Thank you. That’s the question I should’ve asked the first time. Thank you,
Mr. Welcher.
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Mr. Mayor: The Chair recognizes the Commissioner from the 7, Commissioner Frantom.
Mr. Frantom: Thank you, Mr. Mayor. My question’s for Hawthorne.
Mr. Mayor: Absolutely.
Mr. Frantom: Hawthorne, these groups that are asking for the money, do they have to
provide audited financial, 990’s as a part of the process?
Mr. Welcher: Yes, sir, yes, they do.
Mr. Frantom: Okay the second question I have is what percentage of the applicants receive
funding under these areas I mean ---
Mr. Welcher: Well, based on through this competitive RFP process if I just take last year
I believe all but one were funded at the 2017 level.
Mr. Frantom: Okay, thank you, Mr. Mayor.
Mr. Mayor: All right, thank you. All right, the Chair recognizes the Commissioner from
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the 9.
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Mr. M. Williams: Thank you, Mr. Mayor. Mr. Welcher, I appreciate those answers I’ve
been hearing my colleagues the questions you’ve given. I guess my question would be about the
building of affordable properties. Ms. Jackson and I had a conversation about affordable properties
but with the CHODOs we have, when they say we may have too many I know that but that’s what
I was told, are you and or the Housing and Development in the building properties as the same as
the CHODOs are doing for now or is that a separate deal that you manage versus getting into the
process yourself because if I was the gatekeeper and I’m going to build a home I’m going to put
back because that’s just human nature to put back what I need more so than anybody else needs or
I will cut whatever program I can cut. You told Mr. Fennoy that you don’t think that there will be
a cut. You didn’t say there wouldn’t be. You know you said hopefully that there wouldn’t be a
cut to St. Stephen’s and I hope there’s not either. But my question to you about are you in the
building as well as the CHODOs doing the building, that creates a problem in my mind if that
happens. We’ve got into that in a lot of cases. We’ve got into building some stuff. You and I
talked about it again and I disagree with. It looks nice but was it affordable or was it something
that’s going to sustain for a long period of time or just look good for a short period of time? My
question to you are you into the building?
Mr. Welcher: Yes and no.
Mr. M. Williams: No, you can’t be that. It’s like being pregnant now you’re either one of
those and you can’t be, either you is or either you ain’t, Ms. Bonner.
Mr. Welcher: Yes is we’re serving as master developer for the Laney Walker/Bethlehem
Consolidation Project in which you gave us the latitude to do so we’re service developer for that
area but no we’re not competing with any of the CHODOs. We do have funding available for
them based on their lot, based on their work and their various service areas.
Mr. M. Williams: Well, what you explained about the Laney Walker area and doing the
building enhancing that area compared to, Ms. Bonner, I’ve got to go way back to Deans Bridge
Road when we was looking at doing some work out there.
The Clerk: Diamond ---
Mr. M. Williams: No, Deans Bridge Road ---
Mr. Speaker: Villa Europa?
Mr. M. Williams: --- Villa Europa, Diamond and Lover, what is it?
The Clerk: Dover and Lyman.
Mr. M. Williams: Dover and Lyman. I mean I’m going way back there when we was going
to out there we was going to create the mall that’s what we said and it’s history now. We’re going
to go out there and we’re going to design something that we’re going to use around the city. We
have not done that yet. But we talked about it years ago, ooh, I can’t tell you how long it’s been
there, Rev. Ivey, but it’s been a long time. But we talked about going out there and we’re going
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to create the mall situation so we know how to go from there and we haven’t done anything yet
and here we are now doing almost the same thing. We done went, and we’ve got a lot of projects
going and that’s good but I can’t see how we have to reprogram money or send money back and
we done sent money back to the federal government because we didn’t use it. So if we’re in the
building and competing with the CHODOs whose doing that kind of stuff that’s going to create
something for us. East Augusta’s done some building downtown I know but if we’re going to be
doing the same thing they’re doing even if you do everything right it’s going to seem like that
you’re looking out for one area more so than another one. Does that make sense? I’m not saying
you all but that’s the perception that it’s going to seem like and people are going to start to I guess
mumble but I think we need to approve this but the money we’re working on now is 2015 or ’16
money that we’re working on today? We approved the ’17 but what are we working on today?
Which funds are we working on, federal funds to come in lately?
Mr. Welcher: You’re working on ’16, ’15 is what you’re working on.
Mr. M. Williams: We’ve still got some ’15 money and some ’16 money?
Mr. Welcher: Right, sir. It depends on which program you’re talking about. What you
will be approving today will be the actual action plan for ’17 for next year.
Mr. M. Williams: That’s all, Mr. Mayor (inaudible).
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Mr. Mayor: All right, the Chair recognizes the Commissioner from the 8.
Mr. Guilfoyle: (inaudible Commissioner Bill Fennoy).
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Mr. Mayor: Okay, I’ve got him. The Chair recognizes the Commissioner from the 1.
Mr. Fennoy: Motion to approve.
Mr. Hasan: Second.
Mr. Mayor: We’ve got a motion and a second to approve. Voting. Madam Clerk, while
they’re voting I think this is certainly an appropriate time. We received a letter in our office from
the Chairman of County Commissioners Chairman Al Scott. We certainly all reflected on the good
work this city and our partners across the community did when it came to the evacuees from
Chatham County. And so I’m going to take a moment to read the letter from Chairman Scott. And
it reads: I’m pleased to be able to present this message of appreciation while also expressing my
heartfelt gratitude to you elected officials, staff and citizens of your fine city for the hospitality
bestowed during Hurricane Matthew crisis. Approximately 2,200 Chatham County residents
evacuated to Augusta and they were well received and taken care of. I would be remiss if I did
not take this time to thank you for the kindness and support the City of Augusta provided for them.
I would also like to thank the Richmond County Board of Education for providing meals and other
essentials that made our citizens as comfortable as possible during their stay. Your generosity will
not be forgotten. Chatham County and its residents have a long road ahead in recovering from the
aftermath because of Hurricane Matthew however it is great to know that there are communities
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such as yours who are ready to assist them when situations like this occur by insuring that our
community’s greatest asset, our citizens, are taken care of. Again, thank you and please let me
know if I may be of any service to you. Sincerely, Albert J. Scott, Chairman, Chatham County
Commission. That’s a good word for the citizens of this community and we do say thank you, Mr.
Scott, for knowing you can send your citizens to Augusta and they will be well taken care of.
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Thank you. The Chair recognizes the Commissioner from the 1.
Mr. Fennoy: Mr. Mayor, in reference to that letter it was brought to my attention that Gold
Cross Ambulance Services went to Savannah and transported a lot of the disabled and people that
required hospitalization to Augusta and then they took them back to Savannah when it was time
for them to go back.
Mr. Mayor: I believe the gentleman knows of that what he speaks. Fantastic. The Chair
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recognizes the Commissioner from the 6, state your inquiry.
Mr. Hasan: Thank you, Mr. Mayor. Mr. Mayor, I’d just like ask if we could all get a copy
of that.
Mr. Mayor: Absolutely.
Mr. Hasan: Thank you, sir.
Mr. Mayor: Madam Clerk?
Mr. M. Williams votes No.
Mr. Smith out.
Motion Passes 8-1.
The Clerk:
ADMINISTRATIVE SERVICES
15. Consider information documentation as tasked by the Commission in its October 4, 2016
meeting from the Administrator regarding the status of pay for the ex-officio member of the
Planning Commission and/or whether anyone on the Planning Commission was authorized
to be paid as of 2011 reorganization.
Mr. Mayor: Okay, the Chair recognizes Administrator Jackson.
Ms. Jackson: Yes, there are some documents in your booklet. In addition on Friday I
believe the packet went out from me to all of you with some of the same documents as well as a
few others. In regards to the last question or the last portion of that agenda item where it asks
whether anyone on the Planning Commission was authorized to be paid as part of the
reorganization, as far as I understand there was not a formal vote by the Commission to pay those
individuals but the compensations will continue as it was prior to the reorganization.
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Mr. Mayor: Okay, I’m going to recognize the Commissioner from the 1. If you’ll
remember from a historical perspective there were a series of questions about this matter and it
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was the Commissioner from the 1 who asked for a specific series of data dumps and I think that’s
what we have in front of us, Ms. Jackson?
Ms. Jackson: Correct.
Mr. Mayor: I don’t know about anything coming to us in the mail, I have not received
anything but we do have this package.
Ms. Jackson: That’s it, sir ---
Mr. Mayor: Okay, this is it right here.
Ms. Jackson: --- that’s it.
Mr. Mayor: All right, is there anything you want to highlight? It’s a lot of information
anything you want to highlight for us?
Ms. Jackson: Nothing in particular from my standpoint.
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Mr. Mayor: Okay. All right, the Chair recognizes the Commissioner from the 1.
Mr. Fennoy: (inaudible).
Mr. Mayor: All right, he waives. All right, the Chair recognizes the Commissioner from
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the 6.
Mr. Hasan: Thank you, Mr. Mayor. Mr. Mayor, if I understood the Administrator correctly
she was saying that the board would just continue with what was being done and with that being
said we could look at this two ways. And that means if we continue to being done then that part
of it’s not quite true because the ex-officio discontinues to being paid, so that’s one thing. The
other thing as we look at Exhibit B on the information that they gave in the reorg it says members
of the Planning Commission shall serve for such compensation as shall be established by the
Augusta, Georgia Commission.
Mr. Mayor: Commissioner, would you suspend?
Mr. Hasan: Yes, sir.
Mr. Mayor: Okay, all right you’re referencing something and you have not directed us to
it, we want to be looking at the same thing you’re looking at.
Mr. Hasan: Exhibit B.
Mr. Mayor: Exhibit B?
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Mr. Hasan: Yes, sir, I did.
Mr. Mayor: All right, in this full package or ---
Mr. Hasan: That’s the one that’s with the ordinances on the front of it ---
Mr. Mayor: Okay.
Mr. Hasan: --- and that’s going back to the clear part of the document. Exhibit B.
Mr. Mayor: That’s in our notebooks?
Mr. Hasan: Yes, sir, it should be. That’s what I just think you had in your hand ---
Mr. Mayor: Okay.
Mr. Hasan: --- with the clear part in ‘E’, Item E in Exhibit B.
Mr. Mayor: All right, if you’ll give us just a moment. Okay in your notebooks under Tab
15, under Tab 15.
Mr. Guilfoyle: About 12 pages in from the back.
Mr. Mayor: Okay.
The Clerk: It’s in the ordinance.
Mr. Mayor: Say that again?
The Clerk: It’s in the ordinance ---
Mr. Mayor: Okay.
The Clerk: --- 7272 you have under Exhibit A and then ---
Mr. Mayor: That’s correct.
The Clerk: --- it’s quite a few pages into the document.
Mr. Hasan: Just the clear part where there’s no blackout, go back to the clear part.
Mr. Mayor: So it’s in the notebook as well as in the handbook.
The Clerk: There’s no red line on ---
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Mr. Hasan: No red line.
The Clerk: --- no red line.
Mr. Mayor: All right, Exhibit B Section 1-4-81 paragraph, which paragraph,
Commissioner.
Mr. Hasan: E.
Mr. Mayor: Okay all right, Section 1-4-82 Paragraph E. All right, we’re there. Continue,
Commissioner.
Mr. Hasan: At that time there’s a reorg and based on this ordinance that was put before
the Commission at that particular time in 2011 it said, members of the Planning Commission shall
serve for such compensation as shall be established by the Augusta, Georgia Commission. So in
essence at that time if you look at this, Mr. Mayor, it’s saying that the Commission will establish
whether that board is to continue to be paid or not be paid; they had the right one way or the other.
So in truth be told the board has no right to even continue paying itself and if it did, it most surely
did not have the right exclude ex-officio. There’s no vote as Ms. Jackson has stated that’s
officially said that the Planning Commission shall continue to pay itself or there’s no vote showing
that the Planning Commission shall no longer pay the ex-officio. You can’t find a vote to that
effect. This is strictly, even as of today, the Commission needs to vote to continue to pay
whomever to be paid.
Mr. Mayor: All right, anybody else? All right, the Chair recognizes the Commissioner
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from the 7.
Mr. Frantom: Thank you, Mr. Mayor? Can the Administrator confirm there was no vote
or policy stating that what Commissioner Hasan just said?
Ms. Jackson: To best of my knowledge in the research with the Clerk’s office there was
no evidence of a vote, is that correct?
The Clerk: Yes, sir, we found no record within our minutes indicating that there was an
actual vote establishing the compensation for the Planning Commission and I’ve verified that with
the Director also.
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Mr. Mayor: The Chair recognizes the Commissioner from the 2.
Mr. D. Williams: Can somebody tell me what was the policy for ex-officio members of
Richmond County?
Ms. Jackson: I can speak to what I was told was the practice at that time. I was told that
the practice had been that ex-officio members of boards that were internal to the city or county
were not compensated. I understand that that was a member of the Commission that served during
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that time period and he was advised that after the merger that there was no compensation for him
and it continued that way for several years until the question was brought up this year.
Mr. Mayor: Commissioner D. Williams, is that your final question, sir?
Mr. D. Williams: Yes, sir.
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Mr. Mayor: Okay the Chair recognizes the Commissioner from the 1.
Mr. Fennoy: Mr. Mayor, would it be appropriate at this time to set or to vote on whether
members of the Planning Commission will be paid or does it have to be a separate agenda item?
Mr. Mayor: I think it would appropriate to do whatever you like. I think you will hear it.
You are talking about a matter and if that’s what you want to do certainly it’s within your right to
frame a motion to do that. Hold on, hold on all right, Commissioner Fennoy, your question is
whether or not it’s proper for us to based on the information that’s been presented and
understanding that there was not a formal action taken by this Commission or a Commission that
to ratify this information the compensation package for members. All right, Commissioner, what
do you want to do?
Mr. Fennoy: I just want to make a motion that we ratify, what are we ratifying, Ms.
Bonner?
The Clerk: The Bylaws and the Rules of Procedure of the Planning Commission revised
as of July 2014, it’s in your packet. It’s right at the beginning three pages in, the third page in, at
the bottom of the page it referenced item number six, compensation shall be paid to those members
that attend the regular monthly meeting. The amount of the compensation shall be the Chairman
of the Planning Commission shall be $250.00 dollars per month. All other members receive
$150.00 dollars. And as to the ex-officio number one, it defines membership. The Augusta
Planning Commission shall be comprised of such members as appointed under Title 8 of the
Augusta, Georgia City Code. A liaison may be appointed by the Commission who shall be
an ex-officio member.
Mr. Mayor: All right, so I’m going to come back to you for your motion. All right, the
Chair’s going to recognize our Parliamentarian. All right okay you’re going, I want you to be
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prepared for a question. The Chair recognizes the Commissioner from the 7 for a question.
Mr. Frantom: Thank you, Mr. Mayor. Andrew, can you kind of give us you know are we
opening up a slippery slope here approving this? Can you kind of and what your feelings are about
this issue?
Mr. MacKenzie: Sure. I’ll initially say that this is a matter that could squarely be
considered pending and potential litigation. I would just (unintelligible) some caution in asking
for a legal opinion in a public forum, that’s what we have legal meetings for. I will say if it’s the
will of the body to move in the direction to clarify what the pay should be for the ex-officio liaison
member I’ve researched this issue and I do have a motion to that effect if that’s the will of the body
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to do that. Short of that I would suggest that you not ask me for a legal opinion in a public forum
as that could have an adverse impact on any potential litigation related to this issue unless you
waive that privilege.
Mr. Mayor: And we will not be doing it. All right, now let’s go back to the underlined
motion that might be before us. As I understand it, Madam Clerk, the motion that the
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Commissioner from the 1 is asking is for ratification of the bylaws as presented by the Planning
Commission, is that not true?
The Clerk: Yes, sir, with regard to the compensation ---
Mr. Mayor: That’s correct.
The Clerk: --- is that correct, sir?
Mr. Fennoy: Yes.
Mr. Mayor: Okay, all right now, I think that’s certainly a reasonable request that’s out
there. That was never done; we’ve heard from a historical perspective that that was never done
and so this body is going to make the decision to ratify what was never ratified before. All right,
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the Commissioner from the 1 that’s your motion.
Mr. Fennoy: That’s my motion.
Mr. Mayor: All right, you need a second.
Mr. Hasan: Second.
Mr. Mayor: All right you’ve got a motion and a second, all right just hold on I’m going to
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recognize you. All the Chair recognizes the Commissioner from the 4 for a question. State your
inquiry.
Mr. Sias: The only thing I’m asking here is you also made reference to compensation
which is Item 6 in this bylaw. Are we not ratifying the rest of the bylaws or just Item 6?
Mr. Mayor: You know what, you’re a smart man.
The Clerk: I think that the ordinance doesn’t, it only references the compensation being
established by the Commission, is that right, Andrew? That’s the only part of the bylaws that
relatively mentioned in the ordinance itself. All the other bylaws are structured to the operation
of the Planning Commission. The compensation portion is the only section that is referenced in
Exhibit B under the Ordinance 7272e which states, members of the Planning Commission shall
serve for such compensation as shall be established by the Augusta Commission. This ordinance
does not reference any of the other organizational structures.
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Mr. Mayor: Okay, all right so okay all right, Madam Clerk, I’m going to defer these
questions to the Parliamentarian. Attorney MacKenzie, is it not true that the bylaws and/or
ordinance under Exhibit B would be ratified by this body, the board?
Mr. MacKenzie: It’s not required that the bylaws be ratified by this body except that in
this instance as referenced by the Clerk the ability to set compensation is the authority of this body
and that would need to be done. So, you could ratify just the compensation portion of it; it’s not
required that this body ratify all the bylaws.
Mr. Mayor: All right, I think we’ve heard our answer. All right, I’ve got a motion and a
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second, all right? And to the Commissioner from the 4 question what we’re ratifying is the
compensation clause in the bylaws. That’s what we are ratifying because it is required by this
body. Okay?
Mr. Lockett: Mr. Chair?
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Mr. Mayor: The Chair recognizes the Commissioner from the 5 for a question.
Mr. Lockett: Would you be so kind as to have the Clerk read the motion please?
Mr. Mayor: All right, Madam Clerk.
The Clerk: The motion shall be compensation for the Augusta Georgia Planning
Commission shall be paid to those members that attend the regular monthly meeting. The amount
of compensation shall be the Chairman of the Planning Commission shall be $250.00 per month.
All other members receive $150.00.
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Mr. Mayor: Voting. Waiting on the Commissioners from the 1 and the 2.
Mr. Lockett, Mr. Guilfoyle vote No.
Mr. M. Williams abstains.
Mr. G. Smith not voting.
Motion Passes 6-2-1.
Mr. Lockett: Point of personal privilege, please?
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Mr. Mayor: The Chair recognizes the Commissioner from the 5.
Mr. Lockett: Thank you, Mr. Chairman. Is this retroactive?
Mr. Mayor: All right, Madam Administrator.
Ms. Jackson: I can only answer in terms of you know, normally you would only make this
effective after it’s been voted upon so I’ll assume, I would request clarity as well but I would
assume that meant that it would be from this point forward.
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Mr. Lockett: Mr. Mayor, may I follow up please?
Mr. Mayor: You may.
Mr. Lockett: Does that mean that I can get on the agenda to be paid for these boards that
I’m currently serving on in an ex-officio capacity? This is for the General Counsel. I know we’re
not in legal but do I have any grounds with that?
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Mr. Mayor: All right suspend, suspend. To the distinguished Chairman of the 5 from the
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5 Chairman of Public Safety I think we’ve already been advised about giving legal opinions and
getting legal guidance on the floor. If we want to recess and have an Executive Session, I’m
certainly happy to entertain that. But I respectfully ask you to withdraw your question.
Mr. Lockett: Mr. Chair I will because I really didn’t expect the response, I just wanted to
throw that out there. Thank you.
Mr. Mayor: Okay, all right I need another letter to read, I’m going to make one up in a
minute.
Mr. Mayor: Okay, all right we’ll reconvene, come back to order. All right, here’s our
posture. We need to clarify the matter that was before us just a moment ago and the Chair’s going
to entertain a motion to reconsider the Commission’s previous action.
Mr. Fennoy: So moved.
Ms. Davis: Second.
Mr. Mayor: We have a motion and a second to reconsider our previous action. Voting.
Mr. M. Williams abstains.
Mr. Lockett and Mr. Smith out.
Motion Passes 7-0-1.
Mr. Mayor: Okay, all right, the Chair recognizes Attorney MacKenzie for a motion.
Mr. MacKenzie: Sure. It is suggested the motion would be, a motion to approve the
compensation of the Planning Commission members as follows: compensation shall be paid to
those members that attend the regular monthly meeting, the amount of compensation shall be the
Chairman of the Planning Commission shall receive $250.00 per month and all other members
receive $150.00 per month and such pay shall be inclusive from the time that the 2011
reorganization occurred and to recognize that the Augusta, Georgia Planning Commission is the
entity created by both the City of Augusta and Richmond County prior to the consolidation of
these governments and to recognize the benefit to the Planning Commission of having a member
of the Augusta, Georgia Commission serve as an ex-officio liaison and to approve compensation
of $150.00 per meeting attended to be provided to such a liaison from Planning Commission funds.
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Mr. Hasan: Motion to approve.
Mr. Mayor: Okay, I’ve got a motion.
Mr. Sias: Second.
Mr. Mayor: I’ve got a motion and a proper second. All right, the Chair recognizes the
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Commissioner from the 3 for an inquiry, state your question.
Ms. Davis: Mr. Mayor, can I ask Mr. MacKenzie to clarify something please?
Mr. Mayor: Absolutely.
Ms. Davis: Will you reread the area where, I mean the line or two sentences where you
mentioned going back to 2011. Are we considering paying back from 2011 to now or what exactly
were you saying on that?
Mr. MacKenzie: This is clarifying that the compensation with respect to the regular
members and the Chairman will be inclusive with what’s already been paid since the 2011
reorganization. So it’s approving the compensation that’s already been paid plus stating that it’s
not requiring anybody to pay any money back that’s already been paid.
Ms. Davis: Okay.
Mr. Mayor: And that’s a very important matter you don’t, you’re not requiring those
members to have to repay. All right, I’ve got a motion and a second.
Mr. Fennoy: I’ve got a question, Mr. Mayor.
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Mr. Mayor: The Chair recognizes the Commissioner from the 1 for a question.
Mr. Fennoy: Okay, if we approve this motion, if we don’t approve this motion, will the
members of the Planning Commission continue to get the compensation that they’re currently
receiving?
Mr. MacKenzie: That’s a real good question that I’m going to reserve the answer to
because that will probably require a legal opinion but I don’t think you would need the answer. If
the motion does, is approved then that’s not an issue we really need to deal with.
Mr. Fennoy: And I guess one other question.
Mr. Mayor: Continue.
Mr. Fennoy: Can we approve this motion for the regular members to get paid and not the
ex-officio member?
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Mr. MacKenzie: You could do that because the authority to set the compensation is with
this body.
Mr. Mayor: All right, I’ve got a motion and a second. The Chair recognizes the
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Commissioner from the 2.
Mr. D. Williams: I’m just making sure I’m on the right road. Will the motion allow,
require us to go back and pay all the ex-officio members from 2011?
Mr. MacKenzie: No, it won’t.
Mr. Mayor: Correct, it will not.
Mr. D. Williams: Okay.
Mr. Sias: Roll call?
Mr. Mayor: Commissioner, I would respectfully ask you to withdraw that, respectfully
let’s just push the button, Commissioner.
Mr. Sias: All right, I’ll withdraw that.
Mr. Mayor: Thank you, sir. All right, voting. It’s important that we go ahead and support
this and move forward. It’s long overdue to bring resolution to this matter.
Ms. Davis, Mr. Sias, Mr. Hasan and Mr. Frantom vote Yes.
Mr. D. Williams and Mr. Guilfoyle vote No.
Mr. Fennoy and Mr. M. Williams Abstain.
Mr. Lockett and Mr. Smith out.
Motion Fails 4-2-2.
Mr. Mayor: Mr. Hasan, I hope you’re getting ready to ask this body to reconsider as such.
Mr. Hasan: Yes sir I would definitely do that, Mr. Mayor, because as now that we have
brought this issue before us in terms of 2011 was never ratified to continue paying the board in
any capacity. And we have voted against this measure here then the board can no longer effective
in my mind, and I’m not an Attorney at this time continue to be paid because we just voted against
the motion we would address the issue now.
Mr. Mayor: I couldn’t agree with you more, couldn’t agree with you more. I think it would
be an appropriate time to reconsider your action again. The Chair recognizes the Commissioner
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from the 1.
Mr. Fennoy: Mr. Mayor, I’d like to make a motion that the members of the Planning
Commission that’s appointed by the delegation and the ---
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Mr. Mayor: Suspend, Commissioner, just suspend. Attorney MacKenzie.
Mr. MacKenzie: Procedurally it would be appropriate to do a motion to reconsider the
action just taken first.
Mr. Mayor: That’s right.
Mr. Hasan: I make a motion to reconsider the action just taken, Mr. Mayor.
Ms. Davis: Second.
Mr. Mayor: I’ve got a motion and a second to reconsider. Voting. This is a matter that
really needs to be resolved today, really needs to be resolved today. This is a real test of this body
and how we will govern moving forward. The tough issues may require deliberation and we’ll get
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through it. All right, I’m waiting on the Commissioner from the 1.
Mr. D. Williams, Ms. Davis, Mr. Hasan, Mr. Frantom and Mr. Guilfoyle vote Yes.
Mr. Sias votes No.
Mr. Fennoy and Mr. M. Williams Abstain.
Mr. Lockett and Mr. Smith out.
Motion Fails 5-1-2.
Mr. Guilfoyle: Motion to approve reconsidering agenda item 15.
Dies for lack of second.
Mr. Mayor: Okay, Attorney MacKenzie, well you know I know I want to ask you a legal
question but I shouldn’t ask you that out here. I’d like for this body to entertain a motion to go
into Executive Session to probably bring closure to this matter. Otherwise I’m going to ask you a
question publicly and I probably shouldn’t. All right, Madam Clerk, if you’ll go ahead and prepare
us for the next item on the agenda.
The Clerk:
FINANCE
16. Motion to approve execution of non-binding loan application with Georgia
Environmental Facilities Authority (GEFA) for a Waste to Energy Project in an amount not
to exceed $62 million and transmit to GEFA by close of business November 1, 2016.
(Requested by Commissioner Wayne Guilfoyle)
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Mr. Mayor: All right, the Chair recognizes the Commissioner from the 1.
Mr. Fennoy: Motion to approve.
Mr. Guilfoyle: Second.
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Mr. Mayor: We’ve got a motion and a second. All right, the Chair recognizes the
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Commissioner from the 8.
Mr. Guilfoyle: Mr. Mayor, I was wondering if Dean Alford could come up and do a
presentation to where some of the colleagues that was not able to attend the meeting as well as the
general public to see what we what this actually about as far as this project.
Mr. Mayor: Okay, I think that’s proper we’ll do that, five minutes. All right, Mr. Dean
Alford. All right, Mr. Dean Alford and from a local perspective we have Mr. Mark Johnson our
Director of Environmental Services who will be able to answer any questions if necessary. All
right, Mr. Alford.
Mr. Alford: Thank you, Mr. Mayor and Commissioners. I need to know where to plug this
in. And I will do this briefly and if I may ask for assistance to give each one of you a quick
summary of the discussion we had today. Commissioners and the Mayor, I will move through this
fairly quickly but just as a matter of reference back in July of 2015 Environmental Services put
out an RFP for the purpose of looking how to take basically advantage of your municipal solid
waste and to turn into a revenue source. And we responded to that RFP and today as a result of
about 17 months worth of work, here’s a quick summary of what we’re proposing. Today you
have about 350,000 wet tons of municipal waste that comes into the landfill. We’re proposing to
take approximately one-third of that municipal waste and turn it into diesel fuel, water production,
wood vinegar and bio-char. Let me go ahead and say to you now we’ve taken over a ton of this
material and have ran it through the process. We know the technology works. I’ve got samples
over here and if I have time I’d be glad to show it to you and I’ll give you a little more detail of
that as we go through this presentation. This is a $61 million dollar project that you qualify for
GEFA loans because of a situation with Spirit Creek and I’ll talk about that. This project will
generate $4.2 million new dollars to the city over the 20-year life of the loan. It’ll generate positive
cash flow of $152 million dollars, that’s a quick summary. Real quick like, the team that was
proposed Allied Energy Services which I’m President and CEO of, Proton Power provides the
technology and AMAC Foster Wheeler is environmental engineers, and (inaudible) is the feed
stock that we’re looking at. What we’re proposing to do is take the municipal waste and turn it
into pellets. We’ll do separation of the material. We’ll turn this into pellets. And here is an
example of the system that’s in Bulgaria it does exactly this and makes the pellets that we’ll be
using. From that process we will feed them into a technology that’s produced by Proton Power in
Knoxville, TN. There’ll be sixteen of these units that you see. At 2,000 degrees centigrade they
turn basically the material into hydrogen and from that hydrogen we’re able to make diesel fuel
and we’re also able to make biochar. Now if you’ll notice in this process that we also are going to
make water and the reason this is significant is right now you’re taking four-million gallons of
water out of Spirit Creek which is a non-attainment creek. The fact now that we can reduce that
down to about a million gallons you qualify for Federal Revolving State Funds which means you
can get money at two and a half percent for 20 years for a project like this. So, this is your landfill
site if you look in the very top right corner I mean left corner you’ll see the proposed site, let me
drill down. One of the things I want to point to you is where the scale house is. This project does
not require any of the funds currently coming in to the landfill at this time. This project basically
the blue part you see here is where is the feedstock, and I won’t take much of your time but
basically we’ve done the preliminary engineering and we’re ready to go relative to the cost. Let
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me say to you now that we would be proposing to come back to you with a fixed-cost contract as
it relates to the construction of this project. There are many benefits; let me walk you through
them quickly. There’s 65-full time jobs and 50-indirect jobs that will be created from this project
and they go from entry level to management positions. In addition there are environmental
benefits; again we reduce the pollution of Spirit Creek. You also are flaring off about 50% of your
landfill gas and also the fact you’ll have renewable diesel. You deal with potentially a non-
attainment area here in this area and also reduce your carbon footprint. There are benefits to the
Environmental Services operations again it’s 110,000 tons that won’t go into that landfill. It allows
you to reduce some of the expenditures you’re making perhaps in the recycling program. We will
now take 100% of that landfill gas and use it for electricity and again we will reduce the amount
of water that’s coming out of the Spirit Creek by $3.4 million dollars. I know as a Commission
and as a city you have sustainability objectives and this particular project allows you to check off
a couple of boxes, air quality, solid waste and renewable energy. We’ve also been in contact with
Augusta Technical College and the Augusta University and basically are looking to them and have
chatted with them everything from research to job training and using Quick Start for the
development of the skills for the 65 laborers in this project. The economics of this project also
allows you potential stable diesel fuel processing. Today the fleet uses, your fleet uses about
225,000 gallons, your Public Transit about 167,000 gallons, that’s a half a million gallons of the
4.3 that if you wanted to fix your price for fuel you could do that. In addition you’ve got places
like Richmond County schools, Columbia County schools that would be good candidates for the
renewable energy. And here’s what the numbers are. We have contracts. One of the things that’s
taken us this long is we have contracts for the diesel fuel a $1.85 a gallon, we have contracts for a
dollar a gallon for the wood vinegar, we have contracts for $600 dollars a ton with the Biochar.
Those are 20-year contracts and those escalators allow the fact that if you’ve got that product it is
so that the city’s not taking any risk relative to getting that $4.2 million dollars from a revenue
perspective. In addition we have technology risks taken care of through Craft Insurance. Hanover
will actually be the insurer but that basically that policy says for some reason this technology
doesn’t work it pays off the $61 million dollar debt. So what we’ve been able to do is reduce the
city’s risk from a revenue perspective and from a capital outlay perspective. The reason again you
qualify for GEFA funds is because of the clean water situation. We’ve met with GEFA probably
a half dozen times now; they’re very excited about the project. This is a very innovative way of
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dealing with this issue of municipal solid waste and how to create what I would call 21 Revenue
Strings for cities and municipalities across our state. There is a full performer. I’ll be glad to share
it with you, we’re not going to walk through it at this time but to be glad to help you in any way
to understand that. The schedule is we’re asking for your approval today for the Mayor to simply
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sign the application. It is a non-binding loan application. The in first quarter on January the 23
GEFA will take up that application but we will know ahead of time if it’s being recommended.
Between now and then you’ll have a chance to look at the final engineering to review the project
but what’s important relative is the timing of the day of today is to get basically get the GEFA loan
submitted. If everything were to be approved, the permits will be approved in the second quarter,
ground breaking in the third quarter of 2017 and this would be operating by the fourth quarter of
2018 meaning in 2019 you would begin to receive the revenue that we had talked about. Mr.
Chairman, I know I did that very quickly but I was hoping basically that I’d be glad to answer any
questions at this time.
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Mr. Mayor: Okay, thank you so much I appreciate it. The Chair recognizes the
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Commissioner from the 4 for a question.
Mr. Sias: Thank you, sir. Mr. Alford, I’ve got a couple of quick questions.
Mr. Alford: Yes, sir.
Mr. Sias: You said that we would be able to use a 100% of the gas, correct ---
Mr. Alford: Landfill gas.
Mr. Sias: --- landfill gas and that’s also the same gas we’re flaring off now, correct?
Mr. Alford: No, sir, it’s not completely correct. Let me give you, right now you’re selling
and the contract’s going to expire in 2017 to a kaolin company so you’re selling half of that but
that contract’s going to go away and you’re flaring the other half.
Mr. Sias: And you’re saying that once that contract go away, with using this device or this
process we will be able we won’t flare anymore gas.
Mr. Alford: That’s correct.
Mr. Sias: Now understanding the type of process this is normally wouldn’t that be the
incoming trash now all these other gases are coming from the lines and everything that we already
have buried in the landfill that’s presently there.
Mr. Alford: That’s correct.
Mr. Sias: How are we going to route that out?
Mr. Alford: Well, first of all you’ve got a substantial period of time in that landfill gas
supply that you have plus what your land, you’re still going to put 2/3 of what’s coming in into the
ground. And we will use that landfill gas that you have we’ll create about 2.5 megawatts of load.
This facility will use about 4.5 megawatts so we’ll have to buy some of this from Georgia Power
but we’ll basically use all the landfill gas possible to use as much of that 4.5 as possible.
Mr. Sias: And really if I may continue?
Mr. Mayor: You (inaudible).
Mr. Sias: I didn’t see in your estimate what would be the construction costs and everything
to reroute these other gases that’s already there back down to the facility.
Mr. Alford: Basically the, there’s no rerouting of the gas per se. What happens is we’re
able to put that there it’s a lot easier to send electricity than it is to seam the pipe. So, we’ll
basically put it where it comes out of the system right now where it’s being compressed we’ll put
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a generator there then run electricity that way and that is in our constructions costs. It’s a lot
cheaper to run wires than it is a pipe.
Mr. Sias: I’m having a hard time visualizing that but okay moving right along on the diesel
part ---
Mr. Alford: Yes, sir.
Mr. Sias: --- we’re going to produce commercial grade diesel from the simple process at
hand with no other additives and no other anything required to meet federal standards and all this
for commercial grade ready to operate diesel.
Mr. Alford: That’s correct, sir. Well, what happens and let’s be real clear you’re going to
have hydrogen coming off and there is a distilling process that’s in this budget. And in that process
we basically are able and right now that’s being done as we speak and I’ve got samples over, and
it meets all the ASTM standards that are required for that. I’d be glad to provide you the lab results
of the diesel that came out of your landfill and it met all those standards.
Mr. Sias: I’ve got my concerns but thank you very much.
Mr. Mayor: Do you have an example of that, Mr. Alford?
Mr. Sias: One last question.
Mr. Mayor: You can ask as many as you like.
Mr. Alford: This is the, this actually came out of your landfill out of the Augusta Landfill
and basically what we’re proposing to do is to take that and make it into these pellets. And from
these pellets through that process this was the diesel was made from one ton of waste that came
out of Augusta Landfill and this is the wood vinegar that came out of that process. And so this has
to meet ASTM standards and like I said we’ve got the lab results and I’d be glad to send those to
you, Mr. Commissioner.
Mr. Sias: I’ve got another question other than the fact I hope the Marshal don’t come at
you about bringing that diesel in the building, just kidding.
Mr. Alford: Okay.
Mr. Sias: But the question I want to ask you when you were going through your slides you
referenced a plant I believe that’s overseas ---
Mr. Alford: Yes.
Mr. Sias: --- a facility like this. Can you reference and that was in Bulgaria?
Mr. Alford: That’s correct.
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Mr. Sias: So with that in mind are you able to reference any continental United States sites
or facilities like this?
Mr. Alford: Yes, sir, we are. We’re able to reference the fact that in some of the cases in
the United States they’re using just 100% biomass. When we first talked about this we talked
about using the municipal using the biomass and your municipal waste as a means of doing this
project and not using as much municipal waste. As we’ve gone through this process we’ve come
to realize, and by the way in Greece and in Bulgaria this also is 100% municipal waste is what
they’re using to make petroleum base product. But right now we can take you to facilities in the
United States where biomass is coming out of the landfills and waste is being made into diesel and
wood vinegar.
Mr. Sias: And we’ll be one the first to be the entire process.
Mr. Alford: That’s correct, in the United States.
Mr. Sias: Okay, I’m just thinking about that one.
Mr. Alford: Yeah.
Mr. Sias: Thank you.
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Mr. Mayor: The Chair recognizes the Commissioner from the 8.
Mr. Guilfoyle: Thank you, Mr. Mayor. Dean, you had mentioned as far as liability for
Augusta Richmond County on this investment you had used the term $61 million dollars. Was
that just an error on your verbiage because it should’ve been $62 million dollars?
Mr. Alford: Well, if you’ll notice it says up to $62 million. The application’s going to say
$61 million six-hundred and something thousand dollars so at the time that document was we
weren’t sure exactly what the full number was going to be but that’s exactly what the number’s
going to be.
Mr. Guilfoyle: All right, a question about the diesel fuel is that to be used as a blend like
the ethanol or is that just used directly in that state?
Mr. Alford: It can be used directly in that state, for instance if you wanted to use it way
otherwise it will be blended. So, the contract we have will be blended because that is the
requirements of the federal government right now for the oil companies to begin to blend that fuel.
And then it also qualifies of which we took no credit for REINS which is Renewable Energy Index
Numbers but that is 100% renewable and it can be blended or it can be burned straight up.
Mr. Guilfoyle: Okay, one last question, Mr. Mayor. As far as the diesel per gallon on the
wholesale market it could bought cheaper than what this customer that’s willing to lock us in for
20 years. How is that?
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Mr. Alford: Well, first of all the wholesale price of diesel stand along the benefit of those
who will buy this they’re going to basically look at the REINS dollars. And so for right now REIN
is running about a dollar. Four weeks ago it was a dollar seventy so you add that to that wholesale
price. But also it’s kind of like some other renewables. We’ve got folks who want to be green
and they’re willing to lock in for $1.85 for diesel but also as you well know today much of your
fleet buys it retail which is closer to $2.25/2.30 a gallon. So that’s the difference between
wholesale/retail and kind of in between is what this price is marked at.
Mr. Guilfoyle: Right and I’m getting, it just matters what the future OPEC market it going
to be doing to determine fuel either on the gas side or diesel side.
Mr. Alford: Right.
Mr. Guilfoyle: And asphalt’s a big contributing factor in the outcome (unintelligible).
Mr. Alford: And let me say this to you, 4.3 million gallons on one end is a lot, well, to
your fleet but it’s about a little over a month and a half of the local truck stop. So it’s not a huge
amount; it’s not going to change the market place.
Mr. Guilfoyle: Right.
Mr. Alford: Somebody’s going to use this and it’s only going to be about a month’s worth
of supply for them.
Mr. Guilfoyle: Thank you, Dean. I appreciate your presentation. I hope everybody’s got
a clear understanding of how this process works. Mr. Mayor, I think there’s a motion and a second
on the floor.
Mr. Mayor: There is a motion and a second on the floor. I’m going to go down to, yep, I
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got him. I’m going to go to the Commissioner from the 6 for a question.
Mr. Hasan: Thank you, Mr. Mayor. Mr. Mayor my question is I’m not questioning the
validity of the project. What I’m questioning is the validity of the process inside the government.
When you look at this project, this project was supposed to be not any cost to Augusta, any cost to
Augusta. I got I talked to Commissioner Guilfoyle last Wednesday I think it was we were at Daniel
Village and I was asking for will there be additional information in our agenda book and he assured
me he would. It would be some information in there. But nothing was in there so I went to the
well, it’s not a big deal. Nothing was in there so I apologize for that if you misunderstood my
question when we was stopping at Daniel Village. But anyway so I went to the Procurement
Department and asked them to give me the proposal that went out last year and it came back in
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July the 15 2015. But as you both know when it comes back in at that time that’s not the time it
actually the conversation like this started. When you go back and I see some hands up if anybody
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wants them here I’ve got them right here this is May the 18 when one of the questions that was
in the Procurement Department in fact what was the funding source. It asked whether it was
General Fund, whether it was state funds, whether it was federal funds, whether it was SPLOST
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funds, was it a grant, was it a state contract, was it a TSPLOST. The response came back on the
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21 they said also Ms. Tanner where’s the funding source or is there not going to be a cost to
Augusta. The response here by way of email that there would not be a cost to Augusta meaning
that at any time even though once again we’re not questioning the validity of the project that
Augusta was not supposed to get involved in terms of getting this debt, seeking this $62 million
dollar loan when you round it off. But not only that even the terms that we have it says $50 million
and not $62 million so that should concern us. Also when you’re talking about you go also go to
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August the 13 when Mark said something to the Procurement Department it says the waste
divergence/energy program. The compliant bid was received from Allied Energy Services, LLC.
The submission was evaluated per the criteria in the RFP. At this time we respectfully request to
meet with the vendor to discuss the project scope limitations and financial available through the
proposed project prior to entering into contract negotiation with the vendor.
Mr. Mayor: Do you have a question?
Mr. Hasan: I agree I’m reading my point now; I’m not going to let you cut me off now.
Mr. Mayor: I’m not going to cut you off. I want you to get to your point.
Mr. Hasan: I’m making statements. I’m not asking a question. I told you that. I told you I
didn’t have a question for ya’ll.
Mr. Mayor: Okay, do you have a question for anybody?
Mr. Hasan: I’m sharing information with my colleagues.
Mr. Mayor: Okay.
Mr. Hasan: Okay. From there what we have here, Mr. Mayor, is that when we talk about
doing these kinds of things and negotiating with potential vendors what we do we have a selection
committee. That selection committee here per our code is a selection committee minimally
consists of representatives from the Procurement Office, the using agency and the Administrator
or his designee shall convene for the purpose of evaluating the proposal. The Procurement was no
way involved in this process in terms of looking at these numbers here when they got back with
whomever they spoke to. This concerns me, Mr. Mayor. We also have a Financial Advisor. So
none of these people are being talked too or shared information with them about this project and
by incurring this type of debt. There’s no way, Mr. Mayor, that we are supposed to encourage this
type of debt. This was not our responsibility. I don’t talk about his insured or those kinds of things.
This is something that we should not be involved with through this process. There should’ve been
a better process to do that and as a result I cannot support this, Mr. Mayor. I hope my colleagues
won’t either because we can’t afford to violate the process. We’ve got processes in place and we
need to abide by them.
Mr. Mayor: I can’t, I certainly can’t speak to the process that you’re referring to.
Mr. Alford: Mr. Mayor, may I?
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Mr. Mayor: All right, hold on just a moment, hold on just a moment. All right, I don’t
know if it’s appropriate. I don’t have anybody from Procurement in here that I can see. I see Mr.
Johnson back there I mean the Commissioner is referencing a process that I don’t know anything
about. All right, do you want to speak to the process because I don’t, all I’ve heard a couple of
times is from Administrator Jackson just in our conversation is that there was an RFP that was put
out for this. I think if you put out an RFP that generally goes through Procurement I think.
Mr. Johnson: Correct, an RFP did go out ---
Mr. Mayor: Okay.
Mr. Johnson: --- it came back into Procurement, it was evaluated per Procurement
standards where Procurement sat as part of that committee. I sat as part of that committee and I
don’t know who else was there, that was significantly a long time ago. The other point of fact is
in the RFP itself there’s a couple of sentences that talked about if it was economically feasible to
Augusta we would consider a partnership, funding or some general language to that effect and
that’s in the RFP document itself. But again I don’t have that specific documentation in front of
me.
Mr. Mayor: Okay ---
Mr. Alford: And, Mr. Mayor, if I may add one part to that if I may.
Mr. Mayor: Okay.
Mr. Alford: We did propose for a less than a $50 million dollar project to the
Commissioner’s point. What happened was the department asked us to look at using more waste
than biomass and that’s what added to that cost. And we can do whatever but I just want you to
know that was part of the proposal in the process of making a better project over the past 18
months, that was the process that was done. We read that RFP as the way Mr. Johnson said it was.
Mr. Mayor: Okay all right, I’m going to bring a little brevity to the conversation and I’ve
got lots of questions. The board is lit, Ms. Bonner. I’ve got lots of questions the board is lit and
I’m going to go down the line. What’s being asked for today at least pursuant to the agenda item
is just support for completing the loan application, a non-binding application with GEFA with
hopes of them saying they may or may not support this effort, is that not true?
Mr. Alford: That’s correct.
Mr. Mayor: Okay, so that’s all we’re being, in other words the City of Augusta is not
having to build the project.
Mr. Alford: That’s correct.
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Mr. Mayor: Okay all right, I’m going to go to the Commissioner from the 9 who has a
series of questions.
Mr. M. Williams: Thank you, Mr. Mayor. Mark, you answered that and I’d like to ask
you a couple of questions since you’re the expert in the landfill area today. Tell me your thoughts
on this project, Mark. What do you --
Mr. Johnson: All concerned candidly he brought in a very viable project. Our concern
from the gate was don’t bring me a black box. Don’t bring me something that I can’t see, that I
can’t touch, that I can’t go kick the tires on, if you will. Number one he came in with a process
that was looking at wood waste and we challenged him to take that and turn it into trash because
that’s where the bang for our buck is. If I can keep 100% of my revenue and only bury 80% of
my trash, that’s a benefit to us. That’s number one. So we challenged him to finesse and tweak
that project just a little bit to better meet our needs and our long term objectives because that slows
down the need to build additional landfill space at additional cost. Number two was to
Commissioner Hasan’s point I don’t believe it was tied to the money. Our goal was risk, how do
we mitigate risk. And we’ve challenged Allied Energy to mitigate that risk through providing me
guaranteed contracts, providing me a way to cover debt service so that Augusta has the means and
methods of insuring that we’ve minimized the risk as best we can. Thus far I think we’ve done a
good job with that. Now speaking candidly, I’ve seen technology that works very well with wood
waste. We’ve sent samples and we’ve done a lot of labs and a lot of analytics on a ton of trash so
it’s taking wood waste that’s cellulose and it’s taking recycled paper that’s cellulose and it’s
running it through the same system but it’s still a new system to trash here. So we’re taking
components that we know work and we’re putting them together in a fashion and we’ve tested it
the best we can, we’ve minimized the liability the best we can. And so to answer your question
there’s an ounce of risk and we’ve mitigated the risk the best we can through contracts, insurance
and opportunity. Today you’re being asked just to submit the application because if you don’t get
the funding it’s going to be real hard to get the project. So every other piece the contracts for
construction, the contracts for operations and maintenance those different pieces still come back
before you for consideration and approval so that’s my answer.
Mr. M. Williams: I think you like talking trash you know that but I just, I’m a little bit
personally I’m a little bit nervous about cosigning and that’s what we’d be doing. It’s like buying
a car. Tom Wiedmeier, if I get you to cosign for a new Mercedes you really, I got nothing really
to worry about because your name’s on the line. And if I pay for it then you’re all right but if I
don’t pay they ain’t come looking for me. They’ll come looking for the man that cosigned. So
that kind of concerns me when you’re talking about millions of dollars. I’m not saying and I met
with Dean earlier and I’m not against the project I just think that there’s got to be some more
conversation. That number just don’t flow around my house like that it just ain’t something I can
use all the time. It ain’t like $200.00 dollars; I can talk about $200.00 dollars because they owe
me that much on the Planning and Zoning Board, I can talk about that. But when you talk about
millions we’ve got to be able to make sure that we’re doing everything that we can to do this. The
other concern I got is Sean Frantom says we’re going to be leaders and we’re going to be pioneers
in doing something different and I like that but I’m just wondering why it took us 3,000 years to
start to step out to do something. Why do it today? I mean I think we ought to be pioneers. I
though we ought to be doing some things differently to make everybody look at us but that scares
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me because we never did it before and you know we’re always concerned about something we
never did before; we don’t want, changes, it’s just it’s rough to handle. So as an expert in
environmental do you think that we’re on the right track I guess with asking for an application not
to do nothing but just it’s like applying for a job. You might not really want the job but you put
your name in the hat so if the man calls you, you can say no I ain’t ready or yes I am because I
think if he calls you and you applied for it I think he wants you to come on in and you ought to go
in. So, do you think that’s the way to, your opinion on that.
Mr. Johnson: I think if you didn’t have the money you can’t do the project and if you don’t
make the application. When you buy a house you go to the bank and you apply then they tell you
how much money you can get and then you shop for a house. The same basic thing is if you go to
the bank and you’re asking for the funds then it tells you whether or not you even have the
opportunity to do the project.
Mr. M. Williams: Okay, I’m going to leave that alone because I’ve got an answer for that
to but I’m going to leave that alone. That’s all I’ve got, Mr. Mayor.
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Mr. Mayor: All right, the Chair recognizes the Commissioner from the 2. Commissioner
would you speak into the microphone, please, sir.
Mr. D. Williams: Yes, can I ask the Administrator a question?
Mr. Mayor: You may.
Mr. D. Williams: Madam Administrator, would this project help the General Fund for
Augusta?
Ms. Jackson: If it is successful, if it generates the revenue that has been specified, the
General Fund would get 5% of that gross amount in terms of the franchise fees.
Mr. D. Williams: Just 5%?
Ms. Jackson: Yes.
Mr. D. Williams: Thank you, ma’am.
Mr. Mayor: Madam Administrator, I’m going to follow up with that question. All right,
so okay that’s an excellent question Commissioner, that is an excellent question. All right so I’m
going to follow up with that question. Based on that franchise fee being passed back to the General
Fund what is that amount?
Ms. Jackson: I think the net number that presentation discussed was $4 million.
Mr. Mayor: Okay.
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Ms. Jackson: I’m not sure what the gross number is. I believe we talked franchise fees on
the gross number so that would be you know 5% of whatever that gross would be and I’m not sure
what it is.
Mr. Alford: The gross revenue would be a little over right at $16 million dollars.
Mr. Mayor: Okay.
Ms. Jackson: The gross revenue to the Enterprise Fund, sir?
Mr. Speaker: (inaudible).
Mr. Mayor: All right, Mr. Johnson.
Mr. Hasan: What’s your gross number?
Ms. Jackson: In the presentation I think he said $4 million was the net, $4.2 million was
the net revenue.
Mr. Johnson: It would be about $15 million dollars, $8 million for diesel, $4.8 million for
biochar, $2.4 million for wood vinegar.
Mr. Mayor: Okay. All right, so I’ve got a better question. It’s a real simple one; I’m a
simple man. Ms. Bonner, it’s a simple one. I’m going high. If this project were successful, I like
the way you framed that Ms. Jackson I agree. If this project were successful upon it being
operational would we be receiving money that we currently don’t have in that based on all of the
conversation we’re having right now? We certainly could use would that be a reasonable question?
Ms. Jackson: If the project is successful there could be revenue derived for the General
Fund from it.
Mr. M. Williams: Point of order, Mr. Mayor, to Ms. Jackson?
Mr. Mayor: Okay well hold on, hold on, do you have a question for Ms. Jackson?
Mr. M. Williams: (inaudible).
Mr. Mayor: All right let me recognize somebody else and then I’ll come back to you. All
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right the Commissioner from the 2 he had the floor. Now I’m going to go down to the
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Commissioner from the 4 who had his hand up a moment ago.
Mr. Sias: Thank you, sir.
Mr. Mayor: Yes, sir.
Mr. Sias: If you don’t mind, I’d like to address this to Mr. Johnson please.
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Mr. Mayor: Okay.
Mr. Sias: And this kind of on the political side of this kind of venue. In 2015 when ya’ll
put the RFP out, and this is just a question of understanding. When we’re talking about spending
a gross amount of money or signing for it or however it’s kind of you like to be prepared and say
yeah, I want this. So, when we put the RFP out was that in any way shape, form or fashion
approved or viewed or addressed by the Commission?
Mr. Johnson: Prior to putting the RFP out?
Mr. Sias: Yes.
Mr. Johnson: No.
Mr. Sias: And see here’s why I said that. It’s kind of this is a for lack of a better word
have you put, this is a $62 million-dollar pill that we will have to swallow either signing for it
whatever guarantee’s whatever. And I go back to you about the houses and going to the bank.
Generally, folks go to a real estate agent a lot of times. Sometimes this real estate agent will pull
some deals to get that house financed at the bank, all kind of twisting and re-managing of loans
status and all of this, I know that for a fact now okay? So, when this is coming back to us we
didn’t and I was on the Commission in 2015. I don’t have the history of some of my colleagues
but I sure don’t remember saying I want this facility. And I might not even have had these
questions if I had the opportunity to say we want, we want to be involved in that. So when things
kind of go this way you have all these so much anxiety and questions about this stuff when you
looked around and we say okay we got a briefing on the bio thing and $62 million dollars, what’d
you say? And so sometimes as a Commissioner we have a hard pill to swallow when we get these
things like this so I just wanted to make sure that, that I didn’t miss that meeting or wasn’t there
when we discussed that we had a desire for this kind of facility. And I’m not saying that was
wrong I’m saying that I think it would’ve been much better for this process if we had been talking
about it and say hey, we’ve got this great idea we want ya’ll to give it some thought tell us where
to go with it. Thank you.
Mr. Mayor: All right, Mr. Johnson, to you.
Mr. Johnson: I understand your point. In previous years two or three years prior we
released a similar RFP that was brought back to the Commission. We just couldn’t get it to contract
execution through the negotiation process. So the Commission had seen something similar several
years prior but it wouldn’t be of this body as a whole as it is today.
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Mr. Mayor: All right, the Chair recognizes the Commissioner from the 8. I’ve got a
motion and a second to approve.
Mr. M. Williams: I’ve got a question for Ms. Jackson.
Mr. Mayor: I’m coming back to you.
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Mr. M. Williams: I wasn’t quite sure ---
Mr. Mayor: I’m coming, I’m coming.
Mr. Guilfoyle: Mr. Mayor, thank you for acknowledging me. The only thing this is a non-
binding loan application. That’s it. Once it comes back we find out either we get approved or not
approved. At that moment I think everybody had an opportunity to meet with Dean at the request
of I believe the Administrator and the Mayor for us to sit down. I was fortunate to sit in the meeting
with Bill Fennoy and we asked a lot of questions. I’m not one to hold back questions I know that
and actually I had Mr. Dean meet with a fuel supplier in a meeting because certain things I don’t
know I’d rather go to the people who’s experts in that field and he was actually impressed with
this. But the only thing we’re doing is just applying for the application at this point; it’s going to
come back to us two or three times. I know that we’ve got this budget session coming on and the
way this government’s spending money we’re going to have to recapture something, invest in the
future to where we could actually get revenues no different that the solar project Mr. Dean had
brought forth. It was a positive and it’s positive for Augusta going green but this is just a start.
Let’s just put a crack in the door and I would appreciate ya’ll’s consideration. Thank you.
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Mr. Mayor: The Chair recognizes the Commissioner from the 1.
Mr. Fennoy: Yes, Mr. Dean, I think once we do the application and the application is
approved this project will be up and running by I think you said 2018?
Mr. Alford: That would be the, that’s the schedule right now, sir.
Mr. Fennoy: Okay and assuming that this project is up and running in 2018 that’s when
we will begin to receive the $4 million dollars net from this project.
Mr. Alford: That’s correct.
Mr. Fennoy: And you mentioned that there are no other projects like this in this country.
Mr. Alford: There’s no other projects taking 100% municipal waste in the United States
and making diesel fuel. There is taking biomass out of landfills or whatever the case may be but
there are two projects like this in Europe that’s doing exactly the same thing.
Mr. Fennoy: And I guess my question is what’s so special about the waste in Richmond
County because I mean what I mean ---
Mr. Alford: Great question.
Mr. Fennoy: --- it looks like a great idea I mean and we’re always talking about we need
stuff that’s going to generate some revenue for the city. And this will I mean to me based on what
you’ve presented is the best way we could do that. And I’m just wondering why nobody else has
done it.
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Mr. Alford: Mr. Chairman, I mean and it’s not 100% accurate when you say nobody else.
There’s a lot of waste energy products throughout the United States, there are many, many, many
waste energy. A lot of them are making electricity, some are making ethanol, some are making
different products okay? The issue is for instance if we try to make use yours to make electricity
the problem is the avoided cost that utilities would pay for that makes that project not as
economical as it does in other parts of the country. The other part of it is is with this technology
we’re able to basically use the diesel because of the renewable and the REINS. The part that also
makes you all unique about this situation you qualify for these Federal Revolving Funds so it’s a
combination of things. On one hand if you’ll go out there and Google there are literally hundreds
of waste energy projects. They’re just different energy if you know what I’m trying to say to you
so you’re not, with all due respect you’re not that unique. There are a lot of cities, a lot of
municipalities across the United States that’s doing this. What is really kind of unique about your
situation is we’re trying to take these pellets and make this particular product that we’ve already
made pellets from wood we know it works because we’ve ran it through. But once again to insure
that that process would work day in and day out that’s the reason we put in a $400,000 dollar a
year premium for an insurance product on technology to insure that that works. So I want to be
real careful, you’re leading in one way but you’re not that far out in front on other issues.
Mr. Fennoy: Okay and I guess my last question, I guess Ms. Jackson or Mark could
probably answer this. Assuming that we go through this process the $4 million dollars would that
be a part of the Enterprise Fund or would it go towards the General Fund?
Ms. Jackson: It would be a part of the Enterprise Fund.
Mr. Fennoy: Well, my next to the last question if it’ll be a part of the Enterprise Fund we
won’t be any better off.
Ms. Jackson: You would get that 5% of whatever the increase in revenue is as I referenced
in an earlier question; you get that 5% of the increase in revenue.
Mr. Fennoy: Okay.
Ms. Jackson: That’ll be your new money.
Mr. Fennoy: That’s $4 million.
Ms. Jackson: No, 5% of whatever the gross is. And I think they were still playing with
the gross over there maybe about $13, $14, $15 million somewhere in there?
Mr. Alford: About $15 million.
Ms. Jackson: About $15 million. I think the most you could expect is 5% of the $15
million.
Mr. Fennoy: $750,000?
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Mr. Alford: That’s correct.
Mr. Fennoy: All right, thank you.
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Mr. Mayor: All right, the Chair recognizes the Commissioner from the 9.
Mr. M. Williams: My question I think’s been answered, Mr. Mayor, but I’ve got a couple
of comments. I want to know whether that money’s going to the Enterprise or is it going to the
General Fund. I thought I heard her say it’s going to the General Fund which I thought they would
explain later it would be the Enterprise. But out of all the things we could be investing in that
other cities are doing that’s making money and it’s not as much risk or as much cost we hadn’t
addressed none of those at all, zero not a one. But now we got this large portion of money that we
need to borrow or bond and we’re going to do something that’s unique and totally different. Had
we tried some of the other smaller things and say you know what it’s working and we need go on
at that level. I’ve heard some situations I’m ready to probably take a vote and go ahead on, Mr.
Mayor, but it’s really, really kind of disheartening when you hear about if we do the application.
The application you don’t put an application on for a house or for a car or for a dog or nothing if
you don’t want it, it don’t make sense. Now if you’re interested in doing it and you know what
the cost is that’s the problem the $63 million we know what that is and we know what that is then
we need to go on and put an application in but to put an application in to see we can get it? We’ve
got A-one credit in this city I think, I think our Bond Counsel said we’ve got a good credit rating
so there’s no reason for us not to get it. I just see here now that everything has not been put out
on the table like it should’ve been. There are contracts to come in place and we ain’t heard about
none of that and I talked to Dean earlier about it that part of it will come up later as to who will
play a part in what we do and how it’s to be set up. If it’s really good then we don’t need the third
man Dean and you being the third man we can go straight to the horse and just buy him from the
owner and do it ourselves, I think. I think we can put this process together the same way and do
it but I’m ready to go ahead and take a vote, Mr. Mayor, so we can go ahead and close this meeting
out.
Mr. Mayor: All right, we’ve got a motion and a second. All right, the Chair recognizes
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the Commissioner from the 8.
Mr. Guilfoyle: Mr. Mayor, I just want to put some clarity. I see that there’s full focusing
on this Enterprise versus the General Fund. You know if we don’t do nothing then we’ve got to
put it on the backs of the taxpayers, the way that this government’s growing we all know that. We
look for economic development no different than you know supporting people like Starbuck’s,
ADP, UNISYS etc. We have to look into our future. You know when we look at this Enterprise
Fund and look at what percentage actually comes out for the franchise fees you know the
Administrator’s saying 5% but she’s also leaving out the fact that under the solid waste they
actually do the demolition of the houses, street sweeping that’s incurred out of their budget. The
continuation of trash we all know through this budget that there’s going to be an increase or
proposed increase, we have to fill the gap somewhere. I don’t know, I’ve just always been one if
I take a chance I’m going to make sure that my investment’s guaranteed and there’s no better
guarantee on this investment by having the insurance cover it. But you know we’re talking one
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year down the road at this point the only thing we’re doing is asking for a non-binding loan
application. It doesn’t hold us to anything at this point.
Mr. Mayor: I believe the gentleman knows of that of which he speaks, I couldn’t agree
with you more. All right, we’ve got a motion to approve, execution of a non-binding loan
application with GEFA, second motion and a second. Voting.
Mr. Hasan: Is that the same motion, Mr. Mayor?
Mr. Mayor: It’s the same motion that’s on your paper.
Mr. Fennoy, Ms. Davis, Mr. Frantom and Mr. Guilfoyle vote Yes.
Mr. D. Williams, Mr. Sias and Mr. Hasan vote No.
Mr. M. Williams abstains.
Mr. Lockett and Mr. Smith out.
Motion Fails 4-3-1.
Mr. Mayor: All right the Chair will entertain a motion, the Chair recognizes Attorney
MacKenzie.
LEGAL MEETING
A. Pending and Potential Litigation
B. Real Estate.
C. Personnel.
ADDENDUM
17. Motion to go into Executive Session.
Mr. MacKenzie: I would entertain a motion to go into Executive Session to discuss
pending and potential litigation.
Mr. Fennoy: So moved.
Mr. Frantom: Second.
Mr. Guilfoyle: Point of Privilege, Mr. Mayor?
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Mr. Mayor: All right, the Chair recognizes the Commissioner from the 8.
Mr. Guilfoyle: Mr. Mayor, instead of us going into Legal why don’t I just make a motion
to actually pay the Ex-Officio for the time that he served and do away with that Ex-Officio position
on the Planning and Zoning from this moment out and that way this issue will never come back
up.
Mr. Hasan: Mr. Mayor, do we need, I’m sorry.
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Mr. Mayor: Come on, Commissioner, I know you wanted to ---
Mr. Hasan: I said I apologized.
Mr. Mayor: --- I know you’ve got a bad habit of doing that.
Mr. Guilfoyle: May I respond, sir.
Mr. Mayor: All right let me, Attorney MacKenzie, can you speak to the Chairman of
Finance’s question?
Mr. MacKenzie: I think the proper motion for that would be a motion to reconsider Agenda
Item 15 first.
Mr. Guilfoyle: Motion to reconsider Agenda Item 15 please. I’ve got work to do at my
office. If we do this then we can move forward.
Mr. Mayor: That motion failed for failure to receive a proper second. All right, I’ve got a
motion and a second go into Executive Session that’s still before us is that correct, Ms. Bonner?
The Clerk: Yes, sir.
Mr. Mayor: All right. Voting.
Mr. Guilfoyle, Mr. Lockett and Mr. Smith out.
Motion Passes 7-0.
Mr. Mayor: All right, all right.
\[LEGAL MEETING\]
Mr. Mayor: I call this meeting back to order. The Chair recognizes Attorney MacKenzie.
18. Motion to approve execution by the Mayor of the affidavit of compliance with Georgia’s
Open Meeting Act.
Mr. MacKenzie: I would entertain a motion to execute the Closed Meeting affidavit.
Mr. Fennoy: So moved.
Mr. Sias: Second.
Mr. Mayor: We have a motion and a second. Voting.
Mr. Lockett, Mr. Guilfoyle and Mr. G. Smith out.
Motion Passes 7-0.
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Mr. Mayor: Any further business before us?
The Clerk: Would it be okay for him to vote for this Closed Meeting affidavit the fact that
he’s (unintelligible).
Mr. Mayor: It is appropriate.
The Clerk: It is okay, okay, all right, I just wanted to make sure. Okay.
Mr. Mayor: This meeting is 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 the Augusta Richmond County Commission held on
November 1, 2016.
______________________________
Clerk of Commission
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