Loading...
HomeMy WebLinkAboutMinutes CC - 08/13/2012 - MINS 08 13 12 WS (Migrated from Optiview)Work Session of the Milton City Council Monday, August 13, 2012 at 6:00 pm Page I of 7 This summary is provided as a convenience and service to the public, media, and staff. It is not the intent to transcribe proceedings verbatim. Any reproduction of this summary must include this notice. Public comments are noted and heard by Council, but not quoted. This document includes limited presentation by Council and invited speakers in summaryform. This is an official record of the Milton City Council Meeting proceedings. Oficial Meetings are audio and video recorded. The Work Session of the Mayor and Council of the City of Milton was held on August 13, 2012 at 6:00 PM, Mayor Lockwood presiding. Councilmembers Present: Councilmember Karen Thurman, Councilmember Matt Kunz, Councilmember Joe Longoria, Councilmember Burt Hewitt and Councilmember Lance Large. Councilmembers Absent: Councilmember Bill Lusk Mayor Lockwood: • Work Sessions are an informal setting to update Council on business items. • No votes will be taken during these sessions. • There are five (5) items on our Agenda tonight. • Public comment is allowed that is germane to an Agenda Item. • If you wish to speak you are required to fill out a comment card and turn it into the City Clerk staff. • Public comment will be allowed for a total of 10 minutes per agenda item and no more than 2 minutes per person. • Public comment will be heard at the beginning of each Item. • Once the item is called, no other comment cards will be accepted. City Manager Lagerbloom read Agenda Item #1. 1. Discussion of Defined Benefit Pension Plan Review. (Presented by Chuck Carr, Southern Actuarial Services Co., Inc.) Sam Trager, Human Resources Director: • We are here tonight to talk about our Pension Plan. • I would like to introduce Chuck Carr with Southern Actuarial Services who is here to speak to you tonight. Chuck Carr, Southern Actuarial Services Co., Inc.: • My specialty is public plans. • I purposely asked the City Manager and the Human Resources Director not to share with me any details about who asked for a review of your Pension Plan or what type of issues have been brought up regarding the plan so that I could give you a completely unbiased opinion and suggestions. • The plan is formula based. • It pays 2 3/4 % of average pay for each year of service. • Normal retirement age is 65 years old. 0 Early retirement is available at 55 years old. Work Session of the Milton City Council Monday, August 13, 2012 at 6:00 pm Page 2 of 7 • There is a 7 year vesting requirement. • Employees contribute 3% of their paycheck to help pay for the plan. • The City of Milton picks up the rest of the cost of the plan. • This is a very typical retirement plan. • I think it is a mistake to look at this plan in isolation. • This is just one aspect of a total compensation package that you provide to your employees. • For example, you may have a city that has a very generous pension plan but not be paying as much in salaries or healthcare as other cities. • You really have to look at the total compensation package. • Is your total compensation package generous enough to attract the employees you need? • Retirement age for your plan is typical of most of the plans I have seen except for your public safety employees. • Most public safety employees have a normal retirement age of 55 years old. • It is very common to see two types of pension plans; one for public safety employees with an earlier retirement age and one for all other employees. • The employee contribution of 3% is probably a little lower than what we normally see for a plan like this. • Starting on October 1 st, the city's contribution rate will be 5.31 % of payroll which translates to $289,000. • Planning and timing is the purpose for all the assumptions that are used to calculate these numbers. • GMA has general assumptions that they have given you; however, you are more than welcome to use your own assumptions which is what the City of Suwanee has done. • They have certainly weathered the economic storm because they opted to make a higher contribution at first. • There is no right or wrong. • You have to decide what you are comfortable with. • Do you want more stability in your plan or would you rather start at a lower contribution then gradually increase over time? • The interest rate is the single most important assumption of funding any defined benefit plan. • The reason for this is because as time goes on, most. of the plan will be paid for with investment earnings. • The most vital assumption is how fast your investment will grow. • Right now, the actuary is using 7 3/4% which is the standard assumption by GMA. • The City of Milton can decide if they want to accept or reject the assumptions made by GMA. • I think 7 3/4% is a little too aggressive. • Also, you need to keep up with the mortality table. • Right now, the city's total pension cost is about 10% of payroll. • My advice is that your pension cost should be more like 13%-15% of payroll. • By increasing your cost now, it will give you more of a level contribution over time instead of going from a very low percentage and gradually increasing each year going forward. fl Work Session of the Milton City Council Monday, August 13, 2012 at 6:00 pm Page 3 of 7 City Manager Lagerbloom read Agenda Item #2. 2. Discussion of Cost Estimate for Hopewell House: Review of Report from Precision Planning Regarding Estimate; Discussion of Funding Sources for Project Including Community Development Block Grant Funds. (Presented by Kathleen Field, Community Development Director) Kathleen Field, Community Development Director: • The Hopewell House was a historic property that we bought last summer with the thought of converting it into a special events building or community center. • Prior to the purchase, staff identified that the city could use its allocation of community development block grant funds which average about $56,000 per year over a three year contract which is approximately $170,000. • These funds could be used for a senior center which would also give us the flexibility to use the building as a community center or have events on the weekends and after hours, etc. • This seems to be a very good way of maximizing these funds by converting the building into a senior center. • Fulton County who administers these funds has asked the city to provide a commitment letter to fund the remaining improvements necessary to create a senior center. • The city hired Precision Planning to conduct a review of the building and determine the costs of renovations. • We also asked Councilmember Lusk and his company's estimator to review the cost estimate that was developed by Precision Planning. • The estimator felt that the estimate by Precision Planning was a good estimate. • The approximate estimate for renovations for this building is $699,000. • Fulton County operates several senior centers throughout the county. • They fund various non -profits to operate these centers. • The non-profit for North Fulton is called Senior Services North Fulton. • We asked Fulton County to expand its operations from three centers to four centers to include a senior center in the City of Milton. • Senior Services North Fulton is interested in running this senior center for us. • We would like to get your thoughts on the projected costs that it will take to convert this building and make it into a senior center. Councilmember Lusk was absent from the meeting; however, he gave City Manager Lagerbloom a list of ideas he had regarding the project. City Manager Lagerbloom read the following letter from Councilmember Lusk: I would like to enter my comments into the discussion regarding this item and have them as part of the consideration for the direction we need to take: 1. We spent around $250,000 to purchase and preserve the Hopewell House for the use and enjoyment of the residents of Milton. 2. The house represents a true historical treasure worthy of being preserved and enjoyed by everyone. Work Session of the Milton City Council Monday, August 13, 2012 at 6:00 pm Page 4 of 7 3. Certain improvements and maintenance need to be performed to achieve its legal use by the public. Structural and life safety issues need to be addressed before we can allow the general public to use the facility. This will require funding. 4. In order to make this facility cost neutral or positive and make it sustainable, it would require that we outfit it to serve the community for a variety of functions where revenue could.be produced, for example, wedding receptions, banquets, meetings, etc. 5. In order to be adaptable for those uses, a commercial kitchen would be required. Access to the house, including all accessibility requirements under the ADA would be required. Compliance with the Georgia Energy Code is mandatory. 6. The Mansell House in Alpharetta is used for all types of special events. There is not a commercial kitchen in that facility, nevertheless, they were able to bring in $25,000 in revenue last year. I believe we can perform the same service with the Hopewell House. 7. I have reviewed the cost estimate prepared by Precision Planning for the renovation and stabilization of the Hopewell House. I believe it is adequate to achieve the requirements for the program for a senior center and event center. I believe we can recoup the cost of renovations and realize enough to make the facility sustainable for the city. I recommend moving forward. Councilmember Hewitt: • We bought the house for it to be used. • I would like to suggest that we move forward with the renovations. City Manager Lagerbloom: We are being asked to provide a commitment letter for these renovations. You are being asked tonight to approve this commitment letter before we have had our meeting regarding the budget for next year. That is essentially putting the cart before the horse; however, I will tell you that the budget that will be presented to you next week has a place holder in the amount of $529,000. Mayor Lockwood: I would like to ask Carter if this project would be put out to a construction bid. Carter Lucas, Public Works Director: • Yes, the project would go out to bid. Mayor Lockwood: I would like to see this project go out to bid. In today's market place, I think the project could be completed for less than what is being projected. Councilmember Thurman: • I agree with moving forward with this project. Councilmember Kunz: • I am tentative about this project. • I just want to make sure that we will reap the benefits of the costs that we will put into it. 0 I agree that having a senior center -is a good thing for the community. Work Session of the Milton City Council Monday, August 13, 2012 at 6:00 pm Page 5 of 7 • I would like to know that it will be an investment that will generate revenue in the long run. • Another alternative in the future would be to pass this property on to a foundation instead of the city managing it long term. Councilmember Large: • Have we considered adding some gardens to the property which would certainly enhance the ability to use the property as a wedding venue, etc.? Kathleen Field: • Yes, I have already spoken to our arborist about that idea. Councilmember Longoria: • We decided about a year ago that we thought this property would be worth investing in. • I would hope that this idea does not get boiled down to dollars and cents. • Like most Parks and Recreation projects in a city, they are created for the use and enjoyment of the citizens. • I hope we do not just focus on how much money we can make by renting it out. City Manager Lagerbloom: • We researched several other venues in the area and the cost of renting out those facilities varied greatly in cost. • However, one of the biggest factors that caused the variances was whether or not the venue had the ability to serve alcohol. • That is a decision that will have to be made regarding this venue. • My overall feeling is that we need to go ahead and renovate this building and use the grant money that is available. • We have had this money available to us since 2006 but have not been able to use it because we did not have a project that qualified for it. • We now have an opportunity to use this grant money and give the community a senior center. Mayor Lockwood: It is important that we communicate to our citizens the value of this building and the positive impact it will have in our city. Councilmember Large: • Can this type of project have corporate sponsorships? Ken Jarrard, City Attorney: • Yes, absolutely. Councilmember Large: • Can other available grant money also be used for this project? Kathleen Field: • We can look into that. Work Session of the Milton City Council Monday, August 13, 2012 at 6:00 pm Page 6 of 7 Mayor Lockwood: • It sounds like council has given their approval to move forward with this item. City Manager Lagerbloom read Agenda Item U. RZ12-11— To Amend Article XVI, Signs as it Relates to Moving Signs and Replacing the Current Name "Crabapple Crossroads Overlay District Signs" to "Crabapple Form Based Code Overlay District Signs". (Kathleen Field, Community Development Director) Kathleen Field, Community Development Director: • There are two parts to RZ12-11. • The first part deals with moving signs. • When we changed the sign ordinance, we realized we did not address moving signs. • We did not address the people who twirl signs in our right-of-way or the individuals who dress up to advertise a business. • Please refer to page one in the documents that you have in front of you. • We are proposing a change to the definition of sign. • We propose that it be changed to the following language: sign means any device, fixture, plaque, or structure fixed to, supported by, or suspended by a stationary or moving object, building or the ground, held or worn by a person or animal that uses any color, -form, graphic, illumination, symbol, costume or writing to communicate information of any kind to the public. • In the Prohibited Signs or Devices section we changed the wording to read as follows: signs held or worn by a person or animal except during demonstrations, assemblies, and public gatherings. Mayor Lockwood: Have we received any complaints about these twirling signs? Kathleen Field: Yes, the Planning Commission has received some complaints as well as our Code Enforcement Officers. Mayor Lockwood: The majority of the council is not in favor of regulating twirling signs at this time. City Manager Lagerbloom read Agenda Item #4. 4. RZ12-12 — To Amend Section 64-2371 to Create Permit Expiration Standards for Land Disturbing Activities. (Kathleen Field, Community Development Director) Ii I C Work Session of the Milton City Council Monday, August 13, 2012 at 6:00 pm Page 7 of 7 Kathleen Field, Community Development Director: • At your last meeting, you passed an ordinance which regulates time limits for building permits. • I must tell you that ordinance is working. • We realized that we did not draft the same language for time limits for land disturbing activity permits. • This text change is to address that issue. • We have created a new section titled, Permit Expiration for Land Disturbing Activities which reads as follows: permits for land disturbing activities shall be valid for two years. Work must begin within 180 days of issuance of the permit or the permit shall expire. Permits for projects which have achieved substantial completion may be extended at the discretion of the director of Community Development not to exceed one additional year from the expiration date of the permit provided that the permit holder issues a performance bond equal to 125% of the estimated cost of the completion of the project. • The term project is defined as the land disturbance infrastructure, not the building. The following agenda item was deferred until the next City Council Work Session. City Manager Lagerbloom read Agenda Item #5. 5. Discussion of Open Meetings/Open Records Compliance Regarding HB 397. (Presented by Ken Jarrard, City Attorney) PUBLIC COMMENTS (None) After no further discussion, the Work Session adjourned at 7:44 p.m. Date Approved: September 17, 2012. Sudie AM Gordon, City Jerk Joe Lockwoo ayor