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HomeMy WebLinkAboutMinutes - CC - 10/19/2020Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 1 of 44 1 CALL TO ORDER Mayor Lockwood: I'd like to call the Regular Meeting of the Milton City Council for Monday, October 19, 2020 to order. The city strongly recommends that you review tonight's agenda carefully, and if you wish to speak on any item on the agenda, please bring your comment card to the clerk as soon as possible. While the Milton rules allow a speaker to turn in their comment card up until the clerk calls the agenda item, once the agenda item is called, no more comment cards can be accepted. If the city clerk will please call roll and make general announcements. City Clerk: Good evening, Mayor and Council. I'll be happy to call roll for the October 19, 2020 regular meeting. I would like to remind those in attendance to please silence all cell phones at this time. Those attending the meeting who would like to make a public comment, you are required to complete a public comments card prior to speaking on the item. Your comment card must be presented to the city clerk prior to the agenda item being called. All speakers, please identify yourself by name, address, and organization before beginning your comment. If you are representing an organization, an affidavit is required stating you have the authority to speak on behalf of that organization. Please review tonight's agenda, and if you would like to make a public comment, please bring your comment card to me now. Demonstration of any sort within the chamber is prohibited. Please refrain from any applause, cheering, booing, outbursts, or dialog with any person speaking. Anyone in violation will be asked to leave. As I call roll this evening, please confirm your attendance. Mayor Joe Lockwood. Mayor Lockwood: Here. City Clerk: Council Member Rick Mohrig. Rick: Here. City Clerk: Council Member Peyton Jamison. Peyton: Here. City Clerk: Council Member Carol Cookerly. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 2 of 44 2 Carol: Here. City Clerk: Council Member Joe Longoria. Joe: Here. City Clerk: And Council Member Paul Moore. Paul: Here. City Clerk: For the record, Council Member Laura Bentley is absent. Would everyone please rise for the Pledge of Allegiance? Councilmembers Present: Mayor Joe Lockwood, Councilmember Peyton Jamison, Councilmember Carol Cookery, Councilmember Joe Longoria and Councilmember Rick Mohrig. Councilmembers Absent: Councilmember Laura Bentley. PLEDGE OF ALLEGIANCE (Led by Mayor Joe Lockwood) All: I pledge allegiance to the Flag of the United States of America, and to the Republic for which it stands, one Nation under God, indivisible, with liberty and justice for all. Mayor Lockwood: I want to welcome everyone and thank you for being here tonight. Now, I'll ask the city clerk to sound the next item which is Approval of the Meeting Agenda. APPROVAL OF AGENDA City Clerk: The next item is Approval of the Meeting Agenda (Agenda Item No. 20-287). Mayor Lockwood: Okay. Does anybody have any changes or comments on the agenda? If not, I'll ask for a motion. Rick: Mr. Mayor, I make motion that we approve the meeting agenda as Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 3 of 44 3 prepared. Paul: Second. Mayor Lockwood: Okay. We have a motion for approval from Council Member Mohrig with a second from Council Member Moore. All in favor, please say, 'Aye'. All: Aye. Mayor Lockwood: It's unanimous. Okay. Next item is Public Comment. Do we have any general public comment? Motion and Vote: Councilmember Mohrig moved to approve the meeting agenda. Councilmember Moore seconded the motion. The motion passed (6-0). Councilmember Bentley was absent from the meeting. PUBLIC COMMENT (None) City Clerk: I have not been given a card. Stacie, do you have any? Stacie: No, sir. Mayor Lockwood: Okay. All right. We will move on then to the Consent Agenda if the clerk would please read the Consent Agenda items? CONSENT AGENDA City Clerk: Our first item is approval of the September 9, 2020 regular City Council meeting minutes (Agenda Item No. 20-288). Our next item is an approval of a task order between the City of Milton and BM&K, P.C. to provide construction inspection for the Hopewell Road at Thompson Road and Hopewell Road at Hamby Road intersection projects (Agenda Item No. 20-289). Our third item is approval of a task order between the City of Milton and BM&K, P.C. to provide pre-construction and pre-acquisition services for Morris Road widening and Big Creek Greenway Trail connection projects (Agenda Item No. 20-290). Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 4 of 44 4 Our next item is an approval of a task order between the City of Milton and BM&K, P.C. to provide construction inspection for the Saddlesprings Drive culvert repair project (Agenda Item No. 20- 291). Our fifth item is an approval of a Consent to Assumption Agreement between the City of Milton and Granicus, LLC for the renewal of the subscription agreement (Agenda Item No. 20-292). Our next item is approval of a construction services agreement between the City of Milton and Prime Contractors, Inc. for interior remodeling of Fire Station 43’s training room and support services offices (Agenda Item No. 20-293). Our seventh item is approval of a Change Order #2 to the agreement between the City of Milton and AppZoro Technologies, Inc. to finish the ongoing design and development of the smartphone application for the city’s Smart Communities Grant Project - Walking School Bus (Agenda Item No. 20-294). Our next item is approval to amend the agreement between the City of Milton and Voya Retirement Insurance and Annuity Company to allow a single general-purpose loan for the employee’s 401 (a) account (Agenda Item No. 20-295). Our ninth and final item on the Consent Agenda is approval of subdivision plats and revision. The name of the development is Caleb Negron Property 2095 & 2098 Birmingham Road. It's Land Lot 406 District 2, Section 2. It's a minor plat combining two parcels into one single-family residential lot with a total acre of 8.81 acres and the density is 0.113 lots/acre - Mayor Lockwood: Okay. City Clerk: - (Agenda Item No. 20-296). Mayor Lockwood: Thank you. Do I have a motion on the Consent Agenda? Joe: Mayor, I move that we approve the Consent Agenda as read. Carol: Second. Mayor Lockwood: Okay. I've got a motion from Council Member Longoria with a second from Council Member Cookerly. All in favor, please say, 'Aye'. All: Aye. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 5 of 44 5 Mayor Lockwood: Any opposed? That's unanimous. So, we'll move on to Reports and Presentations. So, Tammy, if you will please sound the first item. Motion and Vote: Councilmember Longoria moved to approve the Consent Agenda. Councilmember Cookerly seconded the motion. The motion passed (6-0). Councilmember Bentley was absent from the meeting. REPORTS AND PRESENTATIONS 1. Presentation of Police Fleet Management Program. (Rich Austin, Police Chief) Tammy: That item is Presentation of Police Fleet Management Program, Police Chief, Rich Austin. Chief Austin: Greetings, Mayor, Members of Council. For a few months now, our staff has been looking into a fleet management model that a few of our neighboring jurisdictions are utilizing that we think may bring some significant cost savings to our city. Tonight, we have with us from Enterprise Fleet Management, Mike Larsen, Rachel McGirr, and Mark Torre. We've been working with their team to conduct some rather extensive analysis of our fleet looking for opportunities to reduce our expenditures and maximize our city's motor vehicle assets while continuing to maintain a very highly dependable fleet. Tonight, the team is going to present the Enterprise Model for Fleet Management and just discuss a bit about how their program might be beneficial to the City of Milton. The goal of tonight's presentation is simply to provide Council with some detailed information as staff might be bringing this idea back to you all in the near future for further consideration. And with that, I'll turn the floor over to the Enterprise Fleet Management team, Rachel McGirr, Mark Torre, and Mike Larkins. Thank you. Mike: Good evening. All: Good evening. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 6 of 44 6 Mike: How are y'all this evening? All: Good. All: Well. Mike: I hope that you and your families are all doing well during this uncertain time. So, once again, thank you Chief for the introduction. My name is Mike Larkins. I'm with Enterprise Fleet Management. Yes, that name does ring a bell, just like normal Enterprise you see on almost every corner as a rental car company. Funny enough, Enterprise Rent-A-Car company, actually, started as a fleet management company a long time ago, about 63 years to be exact. Our goal is - specifically, our goal this evening is working with cities and counties across the State of the Georgia and the United States to help identify the total cost of ownership and the lowest cost of ownership for the fleet within each city. What we do is we understand and truly evaluate the numbers, really, the maintenance numbers, the fuel numbers, how much the annual spend is for vehicles, what's the average age of the vehicle within that fleet, what you're - how you're buying the vehicle, and then, most importantly, how you're selling the vehicle on the backside. Really, within that situation, what we've identified wholly is vehicles being held longer, getting less money on the backside for the vehicle at resale, and really, in between, having higher operating costs like fuel and maintenance. With your fleet, specifically, we've identified a few areas of opportunity to create a partnership with Enterprise Fleet Management, lower the total cost of owning and operating the vehicles in your fleet, reduce the total downtime, reduce the operating expenses such as excess maintenance, excess fuel costs due to fuel degradation. And the biggest piece that a lot of people miss out on is really maximize the resale on the backside for that vehicle, lowering the total cost of owning and operating vehicles in your fleet. I think, we have a presentation that's got a model on it. Rachel: Yep. Here ya go. Rachel: Yeah, you can just - Mike: All right. So, what we've really identified, within the vehicle's in your fleet, is - and we took a really deep dive in both the entire Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 7 of 44 7 fleet from the City of Milton and the fleet for just the police department, specifically. This presentation, specifically, relates to the police department vehicles of 22 vehicles of a light and medium duty fleet or seven years of age or older. That 5.7 years is the current average age of the fleet, meaning it would take about 9 1/2 years to completely refresh or go through the entire fleet of vehicles in the police department. If we are to reduce the average age of the vehicles in that fleet by just a five-year hold for those vehicles, it could produce savings by maximizing on the operating costs and the resale on the backside. It could produce savings for the City of Milton an excess of $368,000. Really, the results are, our goal is to not create a partnership that lasts one year, but it's to create a partnership where we identify cost savings opportunities, run a safer, newer fleet for the city, and it's a partnership that is long lasting. So, we can truly work together to keep the people of the city, or that work for the city, in safer vehicles while benefiting the city financially. Mark, I'll let you - Mark: Good evening everyone. My name is Mark Torre. I'm an Account Manager at Enterprise Fleet Management. I work with about 14 different state government entities across the State of Georgia. I work with Cherokee County, City of Covington, just to name a few [inaudible] as well. Also, I work with - for Georgia Forestry Commission with all their fleet of vehicles. My job is really to evaluate their fleet of vehicles yearly, really putting what - with the plan that we put in place for the city and really sticking to that plan. Because a lot of times, especially, with the COVID and how things are right now with budgets, the first thing you think about is, hey, how can we save money? Well, that's really what my job is, for those cities and counties to really help them save money. The fleet analysis that we put together for you is really a five-year model in this example. We usually do a ten-year model, but this is five-year example just because that's more of a fine-tuned, dialed down version. So, if you look on the left side, the current fleet of vehicles is 65 vehicles in fleet. The proposed fleet, we feel like we may have some additional growth in the next five years, so the proposed fleet is 67 vehicles. The current cycle right now, nine years to cycle out of all your vehicles. The proposed cycle with Enterprise Fleet Management - that would be five years, going from a nine-year to a five-year cycle. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 8 of 44 8 Since our model, as far as the maintenance, when we got your maintenance number, it looks like it was about $120 per month per vehicle. With our fixed and budgeted maintenance program, we feel we could - we have the proposed maintenance at $70 per vehicle. And then, as far as the price per gallon, average national price per gallon $2.15 as far as the gas is concerned. But I want to keep this really at a high-level perspective for you guys. And Mike, you can jump in if you want. But really, the yellow line at the top here is what you guys are currently doing today. So, right now, we're - we have about seven vehicles that we need yearly currently in the fleet. We own about 6 1/2 vehicles. But what we're trying to do is really get you guys on a rotation. So, right now, we feel based off the six or the seven needs that you guys have, you're spending $275,000 in cash per year on those police vehicles. What we're proposing is going away from the cash model and helping you guys do more with less with the Enterprise Fleet Management model. The biggest things in police vehicles, in my experience so far, has been the equipment that goes in those vehicles is very expensive. So, how do we retain that and also retain the equity in those vehicles? Well, we need to get them out of them a lot quicker than what we're doing currently, because the models change a lot. The models change - by the time you guys change your fleet vehicle out, the models, probably, already changed. So, therefore, we need to, probably, take advantage of that a little bit quicker than what we're doing now. So, really what we're doing is moving buckets around. So, on the goal line, your maintenance is $93,600 based off of last year's budget from what we got. And then, also, the fuel budget was $259,935 for total fleet budget of $628,000 of fleet budget. So, what - if you go down to the 2021 line, what our plan would be for you guys is instead of annual needs at seven or seven per year, what we'd be doing is also doing six per - or annual needs at six in 2021, 14 in 2022. But what that does is, we're moving buckets around. Instead of purchasing vehicles at $275,000, we are now getting into six leased vehicles at $59,768. So, that's Part 1 of showing how we can show savings as far as the police vehicles are concerned. Also, we have vehicles, older vehicles in the fleet that a lot of times when we come in contact with cities and counties, the biggest thing you guys miss out on is the resale aspect of the Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 9 of 44 9 vehicle. What Enterprise has proved through the model that we have built through our rent-a-car side, is that we can buy for low and sell for high. That is how Enterprise has been so successful over 63 years. What we're trying to do is, we're trying to take that model and hand it over to the government sector, because you guys do such a good job of buying vehicles. Well, if you guys do such a good job just like Enterprise Rent-A-Car does of buying vehicles, why not take advantage of the resale market? The resale market is - especially, right now with COVID-19, manufacturers are shut down for about 3 1/2 month. So, right now, we're seeing an - we're seeing less and less vehicles at a dealership’s lot. Therefore, we are approaching cities and counties, myself, for example, City of Covington, I just approached them. They've been a customer of ours for about almost two years. So, they had pickup trucks in their fleet. What we're doing is, after 14 months, they're able to get out of nine pickup trucks, and we're able to get them $66,000 in equity in those nine pickup trucks, and roll that into brand new vehicles which not only either lowers your cash outlay per month, or we can put that back in the general funds. Those are the two ways we can do that. But our job is really just to help evaluate the fleet, help you guys retain the equity in the vehicles which you have, because at the end of the day, it's a depreciating asset. You want to make sure you're taking advantage of the equity that you guys have and really roll that in there. But also, what does that cause? Because we're adding six brand new vehicles in, we're getting out of six old vehicles now. That's six old vehicles going out of the fleet. Not only are we going to help our operational costs with fuel and maintenance costs, we're also going to lower our total fleet budget. So, we're predicting in the first year of lowering that or a net cash positive of $266,271 and that's because, we're getting out of older vehicles that are probably the highest cost and maintenance costs. And also, the highest cost in fuel costs, because the fuel degradation, because we have vehicles that are eight years older, eight years or older out there in the fleet. Also, on top of that, we want to make sure that these guys are driving in safe vehicles. At the end of the day, the police officer is extremely important, and we want to make sure that they are driving around in safe vehicles. And if we have eight to ten-year- old vehicles out there, can you really say that might be the safest vehicle that that person can be in? So, with us giving you guys a Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 10 of 44 10 proactive replacement plan, allows not only for you guys to have less costs, but also allows you guys to have a safer vehicle out there on the road, and, also, be able to save the city money which is really the most important part. [inaudible] [00:20:38] Mike: Yeah, I think that - so, you see a five-year model I had in front of you. Oftentimes, we'll show a five-year model, a ten-year model, but the important piece isn't necessarily Day 1 of the partnership, it's after year one, after year two, year five, year ten. Because that's the true testament of the value of the partnership, right? And so, at the end of the day, what we really hope to accomplish and to achieve by showing the model, is not only the plan is effective and lowers the average age of the vehicles of your fleet, but it's sustainable. It's a plan that is sustainable over time. We're a company that doesn't create partnerships that lasts for six months or one year, we want long-lasting partnerships. So, that's why she shows this model over five years. But I'm confident, by lowering the average age of the vehicles in the fleet, by constantly leveraging Enterprise Fleet Management as a partner, like Mark said, you'll have all of the - we'll call it the civilians as well as the employees of the city in safer vehicles while keeping them at a lowest cost of ownership. Any questions? Mayor Lockwood: I have a question. Mike: Yes sir. Mayor Lockwood: So, some of our neighboring cities or counties are you guys working with - I think I understand Roswell - Mike: Yes, sir. Mayor Lockwood: So, how is that - how long has that contract or partnership - Mike: So, Roswell, that partnership began - I like to think that the partnership begins when we first start talking, because I feel like all the work really goes in the beginning, right. Mayor Lockwood: Mm-hmm. Mike: So, the partnership - I feel like, we were fully executed about a year and a half now, maybe two years ago now. We're on second, we're in the talks of the third round of orders for them. And what's Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 11 of 44 11 interesting is, every single city we ever communicate with has different goals and objectives. And the great thing about a partnership with us is, we can help achieve really any of it. And so, to give you an example, Roswell had a goal of replenishing their equipment replacement fund from Day 1. And so, we utilized the previous fiscal year vehicle orders to help them cash out on the current equity in those. So, we cashed that out. They were able to completely replenish it; their vehicle replacement funds. They lowered the average age of the vehicles in their fleet from about six years, maybe six years and change to about 4 1/2. Their main objective was to be on a preventative maintenance only program, because they found that most of their vehicles, upwards of 95,000 miles and greater, spent more time in the shop. I think, all of us understand that vehicles with higher mileage are more at risk. So, the Roswell partnership is going great. We work really well with all those departments that are there. And I imagine that the fleet will be 100% penetrated in the next two years, we'll just say. Carol: I have a – Mayor Lockwood: Carol. Carol: - a couple of questions. So, how big is this aspect of Enterprise? Mike: Yep. So, we actually - it's funny you ask that, because today, I got an email that we just delivered our 400,000th vehicle. So, to answer that question, we have 400,000 vehicles on the road with government entities alone. Carol: In what time frame? Mike: Over the last - well, we started working with government a long time ago, because we started - we partnered with the State of Georgia in 2011. I say that's a long time ago, almost 10 years ago. So - and we were working with government prior to that. So, it's a safe assumption, without giving finite details, for 10 years. Carol: You mentioned fixed maintenance costs, and it could have been my inability to follow on that, but are those fixed maintenance costs on your side or on our side? Are we held to a fixed maintenance schedule? Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 12 of 44 12 Mike: So, we recommend following manufacturer recommendations for maintenance. Carol: Mm-hmm. Mike: At the end of the day, everything that you want to do, you can do. What that really means is, our only job is to make recommendations and provide value based on our 2.2 million vehicles on the road. But to go back into the maintenance piece, there are several different maintenance options. Whether it’s a fixed maintenance program which covers everything from the windshield wiper blades to the engine falling out of the vehicle, to a pass-through maintenance program, to no maintenance program at all. You can do anything that the city feels comfortable doing. I will add the caveat that the emergency response vehicles are only eligible for the pass-through only because they are a high-risk vehicle. So, we see them as a high-risk vehicle for putting a maintenance program on it, but they still have the ability to go to any maintenance shop anywhere, have that vehicle maintained and overseen by ASC Certified Tech, but most importantly, leverage Enterprise size of purchasing power for the rates. Carol: Okay. But you're not trying to create that as a profit center for Enterprise? Mike: No. That - everything that we do and everything that we have is à la carte. Carol: Okay. And my last question is - Mike: Yes, ma'am. Carol: - if it's not working and a municipality wants out of the program, what's the out clause? Mike: Oh, it's actually great. I think you'll love it. In 1957, when our owner created the company, he said that we have to earn our business every single day. So, what I mean by that is, there is no commitment. There is no contract. There is a funding mechanism, right - Carol: Mm-hmm. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 13 of 44 13 Mike: - for funding. But there is no contract to be partners with Enterprise. If you say, in Week 1, it's not working out, and you want to fire us, by all means, fire us. We've never had that happen – let me knock on wood - but it's our job. Everything about what we do is - and this might be surprising, but probably a pleasant surprise, everything that we do is based on customer service. And what I mean by that is, if we're not providing exceptional service, we expect you to fire us. And so, we're great in our customer service the way that we actually progress in our careers is even graded on service. So, I can't stand here in front of you and tell you things that are not true, because I wouldn't be following the values and the guidelines of our company. Carol: Okay. Well, thank you. Mike: Yes, ma'am. Carol: [Inaudible - crosstalk] [00:26:41] presentation. Mayor Lockwood: Peyton. Peyton: On the maintenance, I know you said a proposed $70 maintenance. So, what doesn't that include? Mike: So, when we take the maintenance from a $120 average to a $70 average, I know in the model – a model is a number, right. So, it seems like it's a hard number. It's, essentially, an algorithm that we use by taking the older vehicles out of the fleet and replacing them with the newer vehicles. But it's funny enough, $70 is an average monthly maintenance cost for our fixed budgeted program. And that really includes everything. The only thing it does not include is our two wear items, because it's - they're very predictable, and those are tires and brakes. Peyton: Got it. And you would assume that $120 a month on our end includes tires and brakes? Mike: So, the $120 a month on your end came from an actual number - did it have tires and brakes on that? Rachel: I think it did. Mike: Okay. So, it would have. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 14 of 44 14 Peyton: That's, kind of, what I was assuming. And I guess, the only other thing is, I would like to see a ten-year plan. Mike: Okay. Peyton: That's just me, because I see those numbers start going down, down, and down. And I'm assuming in year 25, I guess, was it year 25, that's $601,000, that's lease payments to you, correct? That's a lease, that's an annual lease payment, correct? Mike: Correct. Peyton: 67 vehicles? Mike: That's correct. Peyton: Okay. Mike: So, one of the big areas we focus on - because I see the direction that your question is going. One of the big areas we focus on - while yes, the lease bucket or the - we'll just call it the capital bucket - Peyton: Right. Mike: - is going up, the fleet budget overall - our goal is - 'cause while the acquisition side does have a rise, because we're replacing vehicles sooner. Peyton: Right. Mike: Right. I think - I would think that we all would agree that newer vehicles cost less to maintain. So, while the acquisition bucket rises in cost, the maintenance bucket - I'm just using bucket - Peyton: Correct. Mike: - as an analogy - the maintenance bucket will reduce, because we have less of those unpredictable repairs which any of the unpredictable repairs tend to cost a lot, right. And then, naturally, our fuel economy is better. I mean, even pickup trucks, it's wild to think that pickup truck nowadays get 22 miles per gallon when five years ago, they got 12. You know, so just fuel economy, in general. So, we anticipate, and we've seen, just through our Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 15 of 44 15 relationships currently, all of those costs to lower. So, all of the operating costs throughout the year that you have, you can anticipate those driving downwards, but then on the big piece is on the backside really capturing the equity in the vehicles that flatten out that fleet budget or, at least, get you a savings to where you are today. Peyton: Thank you. Mike: But we can put together the ten-year model for you. Absolutely. Peyton: Thanks. Mayor Lockwood: Joe. Joe: So, we've got not contract that we have to sign with you - you guys are willing to accept us telling you to get out of our lives Day 2, if that happens. Mike: Day 2. Joe: So, the touch points of this engagement, on - let's just say, a typical customer of yours, Day 1, do you come in and weigh or assess the vehicles? It sounds like you've done a certain amount of that already. Is there an acquisition that occurs immediately, or is this a rolling, kind of, a thing that as the cars or fleet vehicles come up for replacement, that's when you get involved and you engage at that point? Because I'm having [inaudible - crosstalk] [00:30:08]. Mike: Right, so I want to ask - I want to answer a couple of things. The first one, there is a contract, but it is a contract that you can get out of at any moment. It's a Master Lease Agreement. Essentially, it says you're going to ensure the vehicles, pay the payments - Joe: Right. Mike: - things like that, right. Joe: It’s understood. Mike: So, I want to make sure I was clear on that. But when it comes to the relationship itself, I'm really glad you asked that question. Because the reason I have Mark here today, the reason Rachel is here today, and there are others who cannot be here today, they Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 16 of 44 16 are, actually, your account team. And we don't come to you and say, hey, congratulations, thank you for the partnership, get these vehicles, we'll see you in a year, we'll see you in five years. That's not what we want to do. We, essentially, have an implementation of the program. And while we make recommendations of what the average age or the average cycle should look like, you can still set the plan that makes the most sense for you. We're - all we do is follow the numbers and present the numbers. And so, really the way that works - let's just say that we went with the plan that's on the screen today that shows six vehicles in year one. If we went with that plan, we've already spec'd all those out, so we have all that information through the conversations we've been having, we would get those vehicles on order, right. We want to make sure we get in line, emergency response vehicles are hot commodities, right. And so, we would get those vehicles on order. In the meantime, we would be doing Account Team introductions to the right personnel to make sure they know who Mark is, they know who Rachel is, and they know who our Account Fleet Coordinator is, but then, also, we would be going over all of the other tools that are available to you at your disposal, the website that houses, that could house your entire fleet and its data. The - you'll have an invoice review, there are mobile apps that are available for all of your drivers. Joe: So, what you're saying is, it’s a blended program for a certain period of time as we get out of the vehicles that we're in today and replace them with vehicles that you guys will provide? Mike: Correct. Correct. I would never ask you to come replace a vehicle that's a year old, right. It's, definitely, a blended program. For instance, Mark and I were talking earlier, the Cherokee County, they've been a customer for about four years. They are about - we have about 75% of their fleet has made it onto the program. The remaining 25% has yet to be cycled. And so, we don't bring everything on, because it doesn't make financial sense. Joe: Okay. Yeah. The only reason I was asking is because other companies that offer similar things - but let's say for computers, for example - Mike: Right. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 17 of 44 17 Joe: - hardware. They come in and Day 1, engage on everything. They assess how old is it, whether it needs to be replaced immediately. If it doesn't, they will provide you a certain amount of money for that thing. So, in essence, they, basically, buy all your assets - Mike: Right. Joe: - and you end up leasing at Day 1, but that's not what you guys are proposing. Mike: That's not what we're proposing, but I'm not saying that people haven't asked for that in the past. Like I said earlier, there's anything - you can do anything. But what I've, typically, seen in a situation like that is, there is a lot of disruption, meaning, like, we'll just use the computer example. When there's a - when all the computers are getting turned in and switched over to new, there is a lot of disruption in daily activities by personnel using those assets, correct. And so, what I've seen, typically, whenever we cycle out of an entire fleet up front, there is a lot of disruption, right. And so, financially, it might not make cost sense. But, like I said, you can do anything. There's nothing you cannot do. My job, Mark's job, Rachel's job is to propose the lowest cost of ownership and what makes the most sense based on your trends. Joe: Okay. Mark: And really, my job is to really be a consultant for the city to bring recommendations to you guys, show you what's the lowest cost of ownership, and then, make a decision on a per vehicle analysis whether it makes sense to either replace that vehicle or hold onto that vehicle. I'm not afraid to go into a meeting and say, hey, based off of what we're seeing in fuel maintenance costs and what we're seeing in the resale market, hold onto that vehicle for 12 more months, because you're going to make more equity. Because, at the end of the day, it's all about you guys and what you want to do. Our job is just to put forward the best business recommendation for you guys and really put that into place. Mayor Lockwood: Rick. Rick: So, looking at your example, so by year five, it looks like we'd be totally out of purchase as far as owning vehicles. It would be total lease and then, I saw the numbers start to change. That's where I think it would be good to. Actually. see the ten-year sale, okay, Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 18 of 44 18 when we're totally with you from a lease standpoint - Mike: Right. Rick: - what does that do from a cost standpoint - Mike: Absolutely. Rick: - extrapolated out? Mike: Absolutely. I mean, we can anticipate, in six, having greater equity, because of the newer vehicles, but then it would, obviously, be – it would flatten out. Rick: Okay. Mike: By that time, everything's in, so there's no reason other than more fuel-efficient vehicles hitting the road, things like that. But it would flatten, but I'm happy to put together a ten-year for you. Rick: Okay. And looking at your example, that's, actually, doing an analysis of our current fleet with police. I was looking at the age of the vehicles, and again, instead of going at 7 1/2 years, you're using a five-year replacement. Mike: Correct. Rick: So, that's why we see different numbers each year. Mike: Correct. Rick: And then, I would assume it starts to stay steady once we get into years six through ten? Mike: Correct. Rick: Okay, thanks. Mayor Lockwood: Paul. Paul: I want to build on one of Joe's questions where you guys gave a pretty good example on the computer turnover as the example and Joe's question about the acquisition of the entire fleet. I had experiences at one point in my career with a consumer products company. We went from individual vehicles to fleet vehicles. And Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 19 of 44 19 they came in and they, actually, acquired the entire fleet, because there is the backroom part of that that comes off at your books, our books then, too. Mike: You're, absolutely, right. Paul: And if you're not having to do, if you only take, let's say, half of our vehicles. That means, I've still got headcount managing tires, you know, oil changes, etc. So, there's, potentially, advantage to look at that. I'm not encouraging that we reduce our headcount, we evaluate [inaudible] [00:36:13] play, that's part of our Milton team today. But there is, potentially, reduced responsibility for them when you've taken half of the vehicles off our books. I'm assuming there's a scenario we can measure that, or you can show us the - Mike: Absolutely. Paul: - pros and cons of those too? Mike: Absolutely. I'm happy to. The only challenging piece will be some of your emergency response vehicles. And the reason I say that is, manufacturers - I'm convinced they work with the aftermarket vendors to change models and change dimensions - Paul: Yeah, sure. Mike: - right. And so, if you came to us and said, we want you to acquire the entire fleet, write us a check for the equity, let's do that to change things on the books, right. Whatever it is you're looking to accomplish, - Paul: Right. Mike: - we, absolutely, would want to do an evaluation to show you how that would look if it landed that way. Paul: Right. Mike: But - Paul: Well, in the scenario that I'm contemplating too, you don't, necessarily, take all of our vehicles out of our existing fleet. It may be that the 10 additional that are not scheduled for a rotation, right now, that may be in the next five years, a rotation. You, actually, Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 20 of 44 20 acquire those. They stay as an existing vehicle in our fleet. We're just leasing it from you rather than us owning it at this point. Mike: Right. Right. Paul: So, there's that model to contemplate too. Has that come into play for you guys? Mike: It has. So, my example with Roswell, I think, it was in their fiscal year, ‘17 or ‘18, I recall, off the top of my head, they had acquired about - it was about $1.2 million in assets. And we valued them – we, essentially, just took the invoice and the PO, and then, cut them the check back. Because they were looking very similar. They wanted to get caught up sooner than later, because they wanted the managed program to be under one roof, if you will. Paul: Yeah. Mike: And so, they accomplished several goals there. We headed to that direction faster, but then, their - like I said, their equipment replacement fund got to them dollar amount that they were trying to get to. Paul: Yeah, and I can see in – I mean, in the scenario that I've experienced, that's the only thing I have to go on, obviously. We'd contemplated some of those scenarios too where we kept part of it versus turning it all over. And it was, actually, Enterprise - Mike: Right. Paul: - that took it over from us. And ultimately, we decided that there was a lot less confusion about, is this a fleet car, is this - Mike: Right. Paul: - a city car, where is it in the maintenance schedule, who's in charge of it, is it still in-house people that are managing that versus managing it with a one number you call for Enterprise, etc. So, I look forward to maybe some more deep dive on those kinds of - Mike: You can. Paul: - scenarios and how that plays out for us. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 21 of 44 21 Mike: Yes, sir. Paul: There's another part of your presentation I didn't quite follow. That had to do with the equipment that was in the vehicles. So, when you do a switch over, it would be [inaudible] [00:38:56] coming out of our fleet going into your fleet and releasing it back from you. Does the equipment stay? Does the equipment that's in a retired vehicle move into the new vehicle? Mike: So, there are two options. So, Option A is, we sell the vehicle as is, equipped. Option B is, if that equipment is still up to the latest - we'll just call it regulations for lack of better terms - then, potentially, it could be moved from A to B. Let's say, you had a - I'm not up to speed on the latest equipment, heavy-duty equipment, right, but let's say, a piece of equipment was $1,500 to $2,000, and it worked as good as Day 1 on - we'll just call it, year five - potentially, that could be moved from A to B. At the end of the day, our job is to continue to show you, okay, if we sold the vehicle equipped as is, how does it look, and what does it look like if you move from A to B? Oftentimes, it makes the most sense to sell that asset as is, maybe there's a few items that you recover. Obviously, the things that stay with the vehicle are like radios, computers, things like that. But the other equipment, the value diminishes dramatically, - Paul: Yep. Mike: - but you can gain more value by selling it the way it is to - we'll just call it an area or a municipality or a county or whoever buys it, right, who doesn't necessarily have the capital to go get a brand- new unit. Paul: Actually, it took me down the path of my next question. That is, part of my understanding of your model depends - our - the benefit to us is turning vehicles at the right time. Mike: Correct. Paul: So then, the greatest equity comes out of the vehicle. It's going out of our fleet, and we're getting the right cost of the vehicle coming into our fleet. Mike: Correct. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 22 of 44 22 Paul: So, it's the value - it's the asset management of the outgoing that I'm interested in. So, you want to sell at the optimal number that creates the most equity for us. What drives that? Who’s the target audience for that? Mike: So, we have an entire department that has about 1,000 individuals, and that's their only job. And I am able to scratch the surface in that question today. I've got professionals that work directly for me that can really get into the weeds and go down the rabbit hole. So, specifically, enterprise sells about 1.2 million vehicles a year. Since we have 400,000 units on lease today just to government, it's, actually, surprising - Mark brought up an example. A lot of entities do a very short flip, or a short hold, because you have the benefit of not paying tax at each registration, right. And so, really, realistically, the equity is always yours without the cost of the replacing like we have as individuals. And so, really, what drives it, 1.) market conditions drive everything, 2.) is, really, time of the year. And so, oftentimes - because we have two really big times of the year that we look at ordering and we look at cycling, if you will. And they coincide, incidentally, with - when the manufacturers open up their banks, right. And that's just how it works. It gets to basic supply and demand principles. And when different entities need to cycle, and then, typically, it's within budget cycles that coincidently in Georgia, usually run hand-in-hand with each other. Paul: Okay. Well, I look forward to learning more about that. Mike: Absolutely. Paul: But, obviously, we want to make sure that, when we get on the right cycle, - Mike: Right. Paul: - that we're maximizing the equity in the equipment that we're flipping. Mike: Yep, absolutely. Paul: Last question I've got is, really, sort of, you mentioned the impact of COVID. Is COVID creating - what kind of anomaly is COVID Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 23 of 44 23 creating for it? Is it creating a more target rich environment for this to be our advantage, or is it one of these where we're coming in, and this is the worst-case scenario? Like, you talked about the fleet availability. We know if manufacturers’ inventory is low, probably the cost - they’re not going to be as willing to negotiate on the cost to the vehicles. Are we buying at the wrong time if there's a COVID anomaly? Can you help me understand that a little bit? Mike: So, here's the great thing. When you order a vehicle - just like you probably have done in the past for the most part - when you order a vehicle, that price is set. The incentives are set, and it’s best-case pricing. So, the demand itself isn't by ordering direct from manufacturer like you're used to, great news. Bad news is, if you have a vehicle go down and it's at a dealership, right. Because what's happened is, because the manufacturers were shut down for three months, that's a lot of vehicles that didn't hit the road for three months. So, when you start looking at the supply and demand, the dealers need to make their profit to keep their lights on. So, they are selling vehicles for higher than they normally would. So, that's the challenge. So, that's why we have to plan and proactively replace, so we don't get impacted negatively by a situation like what happened this year. Here's the great news about manufacturers shutting down, there's always the catch-22. The great news is, because there's low supply on the resale, any of the units that you need to sell, I would sell them now. Because, you're going to get top dollar for re - because people need vehicles. I mean, we - lately, we've gone into South Carolina and North Carolina, Florida, to get vehicles, because we want to make sure we always get the best buy, yo u know. And so, it's a catch-22, but that's why you have us to give you the information to make decisions. Paul: Right. Thank you. It sounds like we have a lot to learn, and we look forward to you guys helping us understand that. Mike: Awesome. Mayor Lockwood: Yeah, thank you. And just to, kind of, recap, and tell me if I'm off track. Obviously, you know, you bring a third party or a partnership in, there's no free lunch out there, you guys have to make money. But what it sounds like to me, with your buying power, hopefully, you get a better cost on the front-end purchasing. As far as maintaining, operating the vehicles, they're basically, the Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 24 of 44 24 city operates and uses them just like we own them. Mike: Exactly. Mayor Lockwood: We take care of the maintenance and whatnot, general maintenance just like we have been. But also, then, I think, what I'm hearing, the advantage isn't on the disposition side that, hopefully, you guys can get more for them than if we stripped them down, and sent them to auction, or whatever. You get a couple hundred bucks for them, so. It sounds like, obviously, your company has got to make some money, but then, we also benefit for the efficiencies and the guidance and the, you know, experience that you guys bring us, correct. And so, it sounds like from our Council, they're interested to learn more, and if you guys could run some, you know, maybe a ten-year plan, and you know, meet with our staff and all that, and submit it to – then, we really appreciate your help and your time here tonight. Mike: Absolutely. Thank you all for your time. All: Thank you. Mark: Thank you. Mayor Lockwood: You're welcome. Paul: Thank you. Is this yours? Close this out. Mayor Lockwood: Okay. If our city clerk would please call the next - sound the next front - final presentation item. 2. Discussion of Text Amendments Relating to a Proposed New Use Permit for Farm Winery Consumption on Premises of Beer and/or Liquor. (Robert Buscemi, City Architect) City Clerk: That final item is a discussion of Text Amendments relating to a proposed new use permit for farm winery consumption on premises of beer and/or liquor, City Architect, Robert Buscemi and Robyn McDonald. Robyn: Okay. Let me look at this. Okay. Let me just [inaudible] Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 25 of 44 25 [00:46:20]. Okay. I'm not going to do that, do it the old way. Good evening. Good to see everybody tonight. So, here I am back again. Also, Sarah LaDart’s here as well to answer any questions that may come up associated with this topic specializing in the actual alcohol ordinances. So, let me get started here. Tonight, we're going to be reviewing the Text Amendments relating to a proposed new use permit for farm winery consumption on premises of beer and/or liquor. So, you're like, I feel like this is - we've done this before, and you did. We talked about this in August but let me just go back through some different facts. Farm winery in and of itself is a permitted use by right within the AG-1 agricultural zoning district, i.e. they can raise grapes, they can produce wine, they can serve wine, and there's certain particulars that the state requires them to do. So, it's not just a free- for-all. But as far as zoning, it is permitted as a right if they want to do it. Council, you all approved some amendments to Chapter 4, the alcoholic beverages to allow the selling of the wine at the farm winery that's allowed by right. And within those discussions, the Council directed the Community Development staff with assistance from Sarah to propose a new use permit to allow the sale of beer and/or liquor on a farm winery. So, this is outside of, you know, the usual wine that's grown on the property as well as I believe that they're allowed to import other Georgia wines, etc. to be served on the property. Staff, we presented a draft use permit to y'all on August 10th work session. It was then directed for us to continue on with this process, and we sent a draft Text Amendment to the - to start with the Community Zoning Information Meeting on August 25th which there were no community members attended either in-person or via Zoom. Then, we presented it at a Planning Commission Meeting utilizing the input from you all in the August work session. Tonight, we're asking for further direction from Council before proceeding. So, the next steps for this Text Amendment, right now, is a first presentation of the proposed amendments on November 2nd, and then, a final vote on November 16th. So, let me just go over what happened at the Planning Commission Meeting on September 23rd. The Planning Commission recommended denial of the proposed use permit in a vote of 4-2. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 26 of 44 26 The majority of members did not support the proposal. They stated that by approving the use permit, it would be permitting a bar in the agricultural district and it is a slippery slope. So, here is - to the right, is what went before the Planning Commission members. So, we - from previously, we reduced the acreage from 20 to 5, and that it would just be - the use permit wouldn't require that all five acres be the vineyard. It could just be minimum five acres of the property. A maximum 25% gross revenue of the winery may be from the sale of beer and liquor. Food must be available. This is not to be considered a requirement for a full kitchen. We talked about how pertinent state and city licenses shall be obtained. Permits and/or approvals shall be obtained for the building, life safety, land development. So, you can't just have this farm winery and, you know, some - a lean-to, and whatever. There has to be some processes for them to go through for those different items. So, there was some discussion in August how to deal with development standards. So, we talked about how some of our other use permits look at a case-by-case basis depending upon the size and the situation of a property. So, that's what we had also proposed, as well as, seven - we talked about a lot of items would not be allowed to be within 100 feet of the property lines. And then, I'm gonna look at this again in our most updated proposal, because it will have changed a bit after some further research. Again, maximum number of attendees and hours of operation will be case-by-case. That's how we do the event facility, the agricultural event facility. Parking should be 100 feet from all property lines, screened from roads, you know, what it's going to be made of, and then, one parking space per 2.5 attendees which is the same requirement we have for the rural event facility. So, that's what we presented to the planning commission. So, since that point in time, staff has made some revisions to that proposal utilizing some Planning Commission comments, some further internal discussions, and the Council's input from the August work session. I went back to listen to y'alls comments and input, because I felt like it - there had been some time pass, and I needed to make sure that we address those issues. And then - so right now, staff is looking for any further comment/suggestions prior to continuing on to the process of the first presentation on November 2nd. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 27 of 44 27 So, here is the proposed use permit. You see in red some changes from the original one. So, let me just highlight some additions and subtractions. So, one of them was No. 2, the owner of the subject property may reside on the site. You know, that was just making it clear that you could have somebody who lived on the property or possibly didn't. If it's your preference that they live on the property, we can change that. It's just - I was just trying to be as flexible as possible. We kept it at 25% of the total gross revenue of the farm winery maybe from the sale of beer and liquor. From what I heard you say in August, I think, y'all wanted the least amount of regulation when it came to things that would be difficult to enforce. That's what I - so, we kept it at 25%. There was some discussion about reducing the amount, but just going back to the August meeting, that's what I heard. Again, food must be available. This is not to be considered a requirement for a full kitchen. Again, at one point, I was contemplating requiring that the gross revenues for food be X, but again, going back to y'alls preference of less is more, as far as regulation, then, I just left it alone. But that, you know, we can discuss that if you'd like. Again, pertinent state and city licenses must be acquired, also, for the building, life safety, land development, that's all the same. I - the noise levels would be consistent with the city code. Also, the next part that was deleted was, all uses associated with the farm winery other than the growing of the product to be used in the wine production, including but not limited to structures, areas of public gathering, etc., etc. So, you're like, well, why did you take that all out? Well, when I looked at a five-acre minimum lot, when you put 100-foot setback on that, you're left with almost nothing. Just, you know, geometry shows that. I mean, not nothing, but there's not - nothing - there's a lot less left over. So, Bob and I discussed the situation, and so, what we were proposing was to allow buildings to just be the minimum AG-1 setback, a 60-foot front or 25 side, and then, have all the parking anterior. So, we're still requiring parking to be at least 100 feet away from all property lines, and we're hoping that that would result in - you would just see buildings instead of parking, but it will, also, allow for the flexibility on a smaller type lot. So, that's what that's all about. The Planning Commission had suggested adding hours of deliveries which was a great point. We just discussed that with the Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 28 of 44 28 Methodist Church, you know, recently, about the deliveries. So, I added that hours of deliveries as well. And then, No. 9, another great input was, you could contemplate a property that might have multiple use permits. You might have, you know, a petting zoo or you might have - which is, you can get a use permit for that, or an event facility, as well as the winery, so. Okay, we don't want people carrying, and serving, and drinking their wine all over the place when somebody's - your kid is, you know, petting the llama. So, I added in the area where wine, beer, and liquor are permitted to be served and consumed shall be identified on the site plan and shall not be allowed outside that defined area. So, we could, kind of, encompass or make sure that that type of use wasn't all over the property if there were other uses occurring on the property. And then, the parking. So, again, back to parking being 100 feet away from all property lines, screens, the type of surface it needed to be, and then, the one parking space per 2.5 attendees. So, that's where we are right now. And we just wanted to - before we go to the next step, that we were going in the right direction that y'all had wanted to go to. Because I think that we were a little surprised by the Planning Commission's reaction, and we just want to make sure we're going in the right direction as well, so. And with that, I'd be happy to answer any questions and get any input. Mayor Lockwood: Let's open it up. Any questions or comments? Paul. Paul: Robyn, when you made the comments early about the CZIM and the Planning Commission Meetings not being attended by the community. How is that advertised to the community? Robyn: So, we send it - it's on the website, as well as, it's in the Milton Herald. And then, I believe Greg, our Communications Director, sends out a mass of emails on upcoming meetings, so. Paul: So, in this particular case, the CZIM meeting and the Planning Commission meeting were addressing the Text Amendment to the alcohol ordinance? Or - Robyn: No. Paul: - what was - Robyn: The use permit. I'm not dealing with alcohol. Paul: Okay. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 29 of 44 29 Robyn: So, this is only the zoning ordinance which is - we were directed to create a new use permit to allow farm winery to serve beer and or liquor. Paul: Okay. So, the fact that the community didn't attend, it's - I'm a little concerned about the fact that that's a representation of - well, let me say it differently. I'm concerned that, when you put it out without some - well, let me say it even further differently. In this - we know there is a farm winery application before us. Had the CZIM been advertised as a hearing for that particular farm winery, the attendants might have been very different, because the neighbors would have seen the sign that would have been up in front of it and, probably, would have gathered. So, I think it's a bit of a misrepresentation, the fact that there was zero people there that had any interest. And we know that there is interest in the community about what's going to go on. And I'm not taking a stab at staff, I just want to make sure that we take the opportunity to ensure that the community really understands that this is for this - we're trying to create a use permit that is farm winery generic, but we know that we're addressing one, in particular. It's hard to separate the two. Robyn: Well, in this case, we are, at this point, we're only addressing the use permit. And just for historic reasons, I just celebrated by 14th year with the city. And I would say, throughout the whole time, I have - almost zero to five people come to see the IMs involved Text Amendments. Paul: Yeah, yeah. Robyn: I'm just, in general - Paul: Yeah, I get that. Robyn: - that is not, like, you know, the hot topic to, you know, get excited about, typically, which I don't think that's a great reflection. I think that it's a really important thing. Paul: Right. No, but I think it went - when I think about two similar points in time in our city's history, when the Union Grill, for example, a restaurant at New Providence and Freemanville was being introduced, CZIMs were well attended, Planning Commissioner meeting was well attended, there was a lot of Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 30 of 44 30 concern from the community to make sure it was done right. And obviously, it was done right, because it's very successful there. Same thing when Matilda's was introduced, you know, it was a unique thing coming to the community. We hadn't contemplated it before. We were working on Text Amendments to make sure that we did that properly. Again, pretty high engagement from the community on a variety of reasons. So, I think you're going to get a different level of participation when the applicant, actually, has to present themselves for consideration versus just being a Text Amendment for what we're working on now. Robyn: I totally agree. I mean, if it comes to this being adopted and an applicant comes to apply for that, I totally agree. We give notice to everybody within a quarter mile of an impacted property. So, I totally agree with that. Paul: So, is there an application from the current farm winery entity? Robyn: There is not. Paul: There is not. Robyn: Well, there's nothing to give an application for a farm winery, but if any of the other uses that you think might be occurring, no, there is no application. I have been working - I will say, that at the Planning Commission, Pam, from Pamelot was there along with her attorney which it wasn't her alcohol attorney, it was her land use attorney. And we had a good discussion talking about, you know, I think there needs to be a more holistic view of everything. And so, she is working with her client on that. But tonight, we're here just for - to look at the use permit. Paul: Okay. Mayor Lockwood: And I think - just to piggyback on Paul what I think you're trying to say is, just by advertising, and not knocking staff on communication, whatever, but I see your point too, Robyn, by advertising the Text Amendment doesn't bring out as much enthusiasm from the citizens. So, it may, you know, take on a different form if they do apply for something, so. Robyn: Correct, yep. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 31 of 44 31 Mayor Lockwood: Peyton. Peyton: [Inaudible] [01:02:37] yeah, just really quick, and this might be left for the future meetings was - based on your presentation and Planning Commissions' thoughts, I'm probably more leaning - just to talk about the use permit itself. I'm probably more leaning in the direction of changing that 'May' to 'Must' and maybe upping the acreage. That's just my first glimpse at just the use permit, and - Robert: To 'Must' on which part? Peyton: To where the owner 'Must' reside at the property. Robert: Uh-huh. Peyton: I think that - if it ever passed - and I think that would be in protection of the place. But that's just something to think about. And also, you know, I agree, I mean, this is an interesting use permit. And I think, we'll just have to go through it at that meeting when it comes before us, because I don't like creating use permits for one particular purpose unless it really is beneficial to the community. And I guess, we'll go down that road when we see it. So, yeah. Carol: I have a question on - Mayor Lockwood: Hold on one second. Carol. Carol: Okay, go ahead. Sorry, I didn't mean to cut you off, Joe. So, there seem to be some events there now as I drive by, and I'm like mm, so how does that happen now if this just in the formulation stage? I thought we were a ways away from those events. Did I misunderstand that? Robyn: So, I haven't seen it personally, but I don't know whether the events are associated with the winery or whether it's other events. And I think that's something that we need to address if it's other events that are occurring, because the farm winery is by Right, and we will follow up with that as far as other activities happening that appear to be outside the norm of an equestrian facility/winery. Carol: They seem to be large, a couple of times that I've driven by. Robyn: Right, so. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 32 of 44 32 Mayor Lockwood: Okay, Rick. Rick: So, Robyn and maybe Sarah, as of right now, we haven't approved any special use permits for that farm that's on Bethany Way. Robyn: Correct. Right. Rick: Okay. So, just its - whatever its currently zoned for allowed? Robyn: We have not approved any use permits that have gone through Council - Carol: Right. Robyn: - or even Administrative permits. Rick: So, there are no use permits specifically for that property? Robyn: Correct. Rick: Okay. Mayor Lockwood: But to clarify that, I guess - Robyn: Yeah, the farm winery is by rights. [Inaudible - crosstalk] [01:04:54] Robyn: Yes. Just like, you know, a vet clinic is by rights. All: Right. Robyn: Or a kennel is by right. Rick: Yep. Robyn: Yep. Carol: Thank you. Paul: But if there was a wedding there this weekend – Mayor Lockwood: Hold on, Paul. Paul, excuse me. I'll move on to Joe. I know you had something first. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 33 of 44 33 Joe: So, by right, does it require somebody to live on the property? Robyn: For the farm winery, correct. Joe: No [inaudible - crosstalk] [01:05:20]. Robyn: Or for - by right of what? Joe: My point is, there's nothing in the AG-1 zoning that says, if we're to get your zoning, you have to live on the property. Robyn: Correct. Joe: So, we shouldn't be thinking about having requirements for zoning that include, you need to live on the property. Robyn: But we do have other examples of other use permits that are permitted in AG-1, i.e. a bed and breakfast. Joe: But that's a little bit different, right? Because - but what we're talking about is, the basic zoning of the property itself. This is a by right thing, and whenever we use that term by right, I get sort of [inaudible - crosstalk]. Robyn: I see what you mean. So, you're - Joe: You're shaking your head. Robyn: But you're saying - Joe: We’re talking about a use permit. Robyn: So, what he's trying to - I think what Councilman Jamison was saying was, if this use permit to serve alcohol, i.e. beer and spirits, is approved, that he would want that person to live on the property. We're not saying right now, if somebody operates - Joe: No, I got it. I got it. Robyn: - a winery, they have to live on the property. Joe: I'm getting a little tied up in this whole - we're trying to bandage something that seems to be inherent in the zoning, and that's what's got me a little bit worried. But we don't have to trip up [inaudible - Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 34 of 44 34 crosstalk] [01:06:39]. Robyn: Is that correct, I think? [Inaudible – crosstalk] Mayor Lockwood: Okay. Paul. Paul: Yeah. I don't have an opinion. I just have a question. So, in a scenario that you just talked about, where you're saying the by - and this is just for discussion purposes. In the scenario where you're concerned about the requirement for the proprietor or the property owner to live onsite, you'd be okay with them not being required to live onsite? Robyn: If they serve alcohol. Paul: Well, no. Separate and apart from the alcohol part. I just - because I am agreeing with you about the - if it's a by right land use, I don't necessarily have to live on every piece of property I own. If I own ten, I can't live on all ten. So, if there's an occupancy requirement, maybe we're going down a wrong path with that. But where I want to propose a question for consideration is, what if that entity then becomes commercialized to the point where you've got major brand name and just, you know, Christian Brothers or GALA Wines or something says, oh, that's a pretty cute little thing. And then, all of a sudden, the craft beer concept becomes craft wine concept, and you've got major entities suddenly interested. Does - you know, should we be thinking about whether the owner occupied comes into play to prohibit an undesirable that may be a corporate environment. Suddenly, you've lost the quaintness of a cute little farm winery, and it's a major commercial organization - entity. I'm just posing that for thought. I don't have an opinion. Joe: No. That's valid, that's valid, Paul. I don't know that I can get to the point where that, potentially, poses a problem. Paul: Yeah. I don't know. Joe: [Inaudible] [01:08:14] be detrimental. So, it's something we need to keep our eye on, - Paul: Yeah. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 35 of 44 35 Joe: - because if we see some, kind of, shift which I'm only grinning because what a great problem to have, right. Everybody's clamoring to get into Milton so that they can put up their own farm winery. That would be a great position to be in. Paul: Yeah. Joe: So, let's just - I think we can keep our eyes [inaudible - crosstalk]. Paul: The part that I have to keep reminding myself about, and I say this for everybody's consumption is that, it's difficult - I have to remind myself to separate what we're experiencing from the proprietor and land owner, right now, from the process we're going through as a city. And when there appeared to be repeated – and I’ll use the word 'offenses' whether regulated or unregulated going on there, and they expect us to give them a clean slate for a pure measure of this, it's hard. And we have to take that into consideration, because the proprietor is creating biases, in my mind, about my willingness to grant things that are then by right. By writing a really clean ordinance when I know that they're already really ignoring this city, and its permits, and its processes to do what they're doing today, you know, with events, basically, every single weekend, music going on into the evening, you know, tents being erected that imply a pretty significant event. That's really problematic for me, and I'm having a really hard time separating the two. Mayor Lockwood: Let me ask, you know, to that point, I think, Carol brought that up too, if we can have staff check on that if they are. You know, obviously, it's two separate things from the process we're going through, but we, probably, need to know that. Robyn: I'll check on that. Mayor Lockwood: If we can find out if they are doing some things that they're not, actually, supposed to be. Carol: Yeah, I don't want to be on the record saying - Mayor Lockwood: And Carol - Carol: I just was talking about, sir, I don't know and I'm not willing to go that far in doing things that they're not supposed to be doing. That's Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 36 of 44 36 not my nature. I'm just saying, driving by, I saw a lot of people loading and unloading which led me to believe there are substantial activities there, right. I'm just - Paul: Yep. Mayor Lockwood: Yeah, that's why - just let him check on that. Carol: That's a little bit [inaudible - crosstalk] [01:10:30] for me, because I can't say that. Paul: But [inaudible] is probably a good [inaudible]. Carol: Okay. All right, thank you. Mayor Lockwood: Peyton. Peyton: And Robyn, I know you mentioned a more holistic view I think that y'all were talking about with her attorneys. That's something that I would like for y'all to continue to maybe talk about, because well, you get the farm winery use permit, and then - well, she's having - say, she's going to have special events. She wants special events, then, does that mean she has to get a special event use permit and how do you merge? And I just want to make sure whatever we do, whether it's approval or denial, it's clean, everyone gets it, and we're on the same page, that's all. Robyn: That was our discussion today. So, she's working with her client to try to get together and present what her business plan is and what she's doing and - oh. And then, we'll - and the attorney will work with us - Peyton: Okay. Robyn: - and we'll come up with a game plan. And it's not unheard of to have concurrent use permits, so let's say if this use permit gets approved for the Text Amendment, that she would come with this and then, she'd come in with, you know, the event facility, and/or a bed and breakfast, or whatever it is. We can do it all together, and we'll work together on it when it comes time, so. Peyton: Thank you. Robyn: Yep. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 37 of 44 37 Carol: Thank you, Robyn. Mayor Lockwood: Paul. Paul: This last comment, I would say, directionally, the things that you've taken away from the Planning Commissions' comments are on the right track - Robyn: Okay. Paul: - at least for the things that I heard today. And I think the parking and the setback stuff, you've given it the appropriate consideration. I think you're on the right track with that. Robyn: Okay. Mayor Lockwood: Okay. Robyn: Great. Mayor Lockwood: Thank you, Robyn. Robyn: Thank you. Mayor Lockwood: Okay. We'll move on to our First Presentation. Tammy, if you will please sound. FIRST PRESENTATION Tammy: That item is Consideration of an Ordinance to Amend Appendix A, Parks and Recreation Fees and Other Charges, Chapter 34, Section 24 of the Milton City Code to Allow for Collection of Fees to Rent the Birmingham United Methodist Church Baseball/Softball Field (Agenda Item No. 20-297), Parks and Recreation Interim Manager, Tom McKlveen. Mayor Lockwood: Okay. Do I have a motion? Peyton: Mayor, I'd like to make a motion to approve Agenda Item No. 20- 297. Rick: Second. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 38 of 44 38 Mayor Lockwood: Okay. I have a motion for approval on the First Presentation approved by Council Member Jamison, a second by Council Member Mohrig. All in favor, please say, 'Aye'. All: Aye. Mayor Lockwood: That's unanimous. Okay, we don't have any items under Public Hearing, Zoning Agenda, or Unfinished Business. So, we'll move on to New Busines. Will the city clerk please sound that item? Motion and Vote: Councilmember Jamison moved to approve Agenda Item No. 20-297. Councilmember Mohrig seconded the motion. The motion passed (6-0). Councilmember Bentley was absent from the meeting. PUBLIC HEARING (None) ZONING AGENDA (None) UNFINISHED BUSINESS (None) NEW BUSINESS City Clerk: That new business item is the consideration of subdivision plats and revisions. The name of the development is Lakeside at Crabapple located at 980 Mayfield Road, Land Lot No. 1099 & 1134. It's a final plat for 28 single-family lots, 41 townhomes, a total of 69 units. The total acres is 13.76 acres and the density is 4.41 lots per acre (Agenda Item No. 20-298), Land Development Manager, Tracie Wildes. Tracie: Mayor, Council Members, hello. Tonight, I'm going to be presenting to you the final plat for Lakeside at Crabapple. It's located at 980 Mayfield Road which is just north of the Milton Library. This development consists of five tracts for a total of Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 39 of 44 39 13.760 acres. Tracts 1-4 will combine and then, resubdivide into 28 single family lots and 41 townhome units. Now, the thing that we're most excited about is Tract 5. Tract 5, the developer, Taylor Morrison, is transferring five acres out of the total 13.7 acres to the City of Milton to be used as a civic space. Right now, we're referring to the civic space as the lake, or lake park. The photos here in the upper right-hand corner, you will see a conceptual rendering that was done in conceptual design stage, and was a vision, if you will, of what this area could one day become. The picture in the lower left was taken a week ago, and this is the progress of the construction of the lake today. The new five-acre park will serve as a key gateway into downtown Crabapple with many site upgrades. Residents are going to enjoy a beautiful lake with a dock, sidewalks, trails, a sitting arbor, benches along the trails, and new landscaping. So, it's pretty exciting to see this piece of property, or this portion of the project, developed from concept stage to construction stage. This portion of the project is almost complete. We do expect guests to enjoy this late Fall. Currently, the City of Milton in Crabapple enjoys the green right across the street. And there's people there every day. We look out as we're sitting here, and there's people there all the time. Hopefully, in late Fall, soon, they will be able to enjoy a lake in the City of Milton in Crabapple, and so, we expect the same type of activity daily on that site. Mayor Lockwood: Let me kind of add one thing. Tracie: Absolutely. Mayor Lockwood: Speaking of that, the property that that's on was owned for a long time by the Smith family, and they're sending us some history and information on that at some point. And I don't know if this is a firm in stone name of it or whatever, but maybe presenting some of that to Council - Tracie: Sure. Mayor Lockwood: - just to discuss if we want to have some, kind of, token memory or something of the Smith family there, so. Tracie: Sure. The project has not been named, so we would be open to several suggestions. This final plat has been reviewed by city staff. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 40 of 44 40 It does meet the requirements for all the applicable city codes. Are there any questions? Mayor Lockwood: Any questions on this? Okay. I do have a question. It's not fair to ask you - maybe Robyn may have to help or - Tracie: We've got Bob in the house too. Mayor Lockwood: Well, as Robyn said, she's been here 14 years. Do you know when this property was actually zoned for this density in the whole area, Robyn? And the reason I ask, and Greg's been great about communicating things and whatnot, but I think, some people are thinking, because this final plat is getting approved by us tonight, that's not the same as we're approving this density or this neighborhood, that's been in the works for a long – in fact, do you even know off the top of your head when? Robyn: It was - I believe it was June 2012. So, the Crabapple Form-Based Code was adopted during 2012, and then, subsequently, Deerfield was '14 and then amended in '15. So, it was 2012. So, yes, it's been a long process, and I think Bob Buscemi has been working with all the property owners in that eastside to try to get everything done, and you can see that from, you know, the extension of Charlotte Drive, and whatever it's - Heritage Walk now, I think, it’s going to be called. So, it is been in the works, and, you know, I think that also, that the developer spent a lot of money upgrading that dam that is going to be to our advantage. And that that detention area is a regional detention area. So, what will happen is, certain properties on that east side will drain into it, and that they'll be paying the city a maintenance fee based upon their impervious areas or - correct? Tracie: Correct. Robyn: And so, this is a great way to - I mean, I think, it's just an incredible development that isn't just, oh, we just did it yesterday. It's been a long-time planning, so. Mayor Lockwood: Just to take that one further, and I understand, you know, when we adopted the Form-Based Code and this was planned out, but as far as the density, I don't remember off the top of my head, but the density in that area was, probably, already in place prior to that, correct? Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 41 of 44 41 Robyn: Right. So - and let me just - there was another step that was taken, and I think Council person Jamison was, actually, on the Planning Commission when this came before we required preliminary plats. So, it's not the first time that the public would see this. They saw it - what, probably about three years ago in, pretty much, this concept - this scenario. So, the density in that area is four units per acre. Part of the civic area was zoned T-2 which is only one unit per acre. But, basically, by the developer doing the work and donating the property, they got some benefit of that density from that five acres was put on to and agreed upon that they would receive some density from that five acres. So, when you look at the whole total, it's - it is consistent with what the ordinance requires, so. Mayor Lockwood: Okay. Anybody - Paul: But as I recall, actually, the number of townhomes was reduced. I think at one point, it was over 50 on some of the first presentations that were done, and we're at 41 now. And I think the single-family residents' lots actually went up, if I remember correctly. Do you remember that, Peyton? Peyton: I think it's about what it was, I think. Mayor Lockwood: But then, it gets to my point though - Peyton: The zoning was done, like, eight years ago. Paul: Yeah, a long time ago. Mayor Lockwood: My biggest point with zoning overall and Crabapple, you know, I mean, I've been here long enough when it was all woods and we hoped it stayed all woods. But that zoning has been in place for a long, long time. So, just - I say that so that people, when they see this plat being approved, it's not as though we're adding density now and the Council not voting on more homes than was allowed, so. Okay. Anybody else have a question? Okay. I'll open up for a motion. Peyton: I did the last one. Mayor, I'll make a motion to approve of Agenda Item No. 20-298. Paul: Second. Mayor Lockwood: Okay. I have a motion for approval from Council Member Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 42 of 44 42 Jamison, and I believe Council Member Moore was first with the second, though. All in favor, please say, 'Aye'. All: Aye. Mayor Lockwood: Any opposed? That's unanimous. Thank you, Tracie. Okay. Our next item, we're going to move on to reports. Is there anything the Council would like to report on? You know, I'll just further the discussion on, again, the Smith family, right. Sean is going to get some more information on [inaudible] [01:22:08] I would like us just to consider that as we move forward with any, kind of, remembrance of the family that lived there on the pond that we just talked about - the lake. Okay. We'll move on to Staff Reports. Bernadette, come on down. Motion and Vote: Councilmember Jamison moved to approve Agenda Item No. 20-298. Councilmember Moore seconded the motion. The motion passed (6-0). Councilmember Moore was absent from the meeting. STAFF REPORTS Department Updates 1. Finance Bernadette: Good evening, Mayor and Council. As you know, we just began another fiscal year on October 1st, and Finance staff are working to close out the books for FY 2020. Just a reminder that we will not have September financial statements on the agenda as the city's final financial statements for the year are contained in the comprehensive annual financial report with a [inaudible]. They'll be published in March of 2021. Business licenses were due the second week of August, and staff is working with the remaining businesses to bring them into compliance. We have approximately 140 left to renew. Property tax bills went out for 2020. The due date for the City of Milton property taxes is December 15th. This year, we've included a sample bill with some of the definitions to, hopefully, aid property Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 43 of 44 43 owners in understanding their tax bill's contents. Our bills are a little different than the county, so we wanted to put that out there. We've also included methods of payment and homes with exemption opportunity is on the back side of that bill this year as well. Supplemental bills and refunds for prior year adjustments and overpayments to date have gone out as well. And lastly, Council approved an agreement with ClearGov on October 5th, and staff is working with that company to implement the new transparency portal to implement a digital budget book for ease of exploring our budget, and the budget processing platform for ease of our staff to work together in producing a budget annually. So, the goal is to have the transparency portal live at the end of November for all the citizens to be able to review. And that really covers our major updates for Finance for the quarter. If you have any questions, I will be happy to answer them. Mayor Lockwood: Are there any questions? Bernadette: All right. Thank you so much. ADJOURNMENT Mayor Lockwood: All right. Thank you so much. Okay. I'll open up for a motion to adjourn if there's not anything else that anyone has. Joe: Meeting adjourn. Paul: Second. Mayor Lockwood: Okay. I have a motion from Council Member Longoria to adjourn and a second from Council Member Moore. All in favor, please say, 'Aye'. All: Aye. Mayor Lockwood: That's unanimous. Regular Meeting of the Milton City Council Monday, October 19, 2020 at 6:00 pm Page 44 of 44 44 Motion and Vote: Councilmember Longoria moved to adjourn the city council meeting at 7:25 pm. Councilmember Moore seconded the motion. The motion passed (6-0). Councilmember Bentley was absent from the meeting. Date Approved: December 7, 2020 __________________________________ _____________________________ Sudie AM Gordon, City Clerk Joe Lockwood, Mayor