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HomeMy WebLinkAbout01-07-2016 regular meeting City Council of Peachtree City Meeting Minutes January 7, 2016 7:00 p.m. The Mayor and Council of Peachtree City met in regular session on Thursday, January 7, 2016. Mayor Vanessa Fleisch called the meeting to order at 7:00 p.m. Others attending: Terry Ernst, Mike King, Kim Learnard, and Phil Prebor. Oath of Office-Council Post 1 Judge Joe Clancy administered the oath of office to Phil Prebor for Council Post 1. Election and Oath of Office for Mavor Pro-tern Ernst nominated Mike King for Mayor Pro-tem. Learnard seconded. There were no other nominations. Motion carried unanimously. Fleisch administered the oath of office to King. Announcements, Awards, Special Recognition Fleisch announced Lori Jantosciak from the Police Department had been selected as the Employee of the Year for 2015. Fleisch recognized the Supervisor of the Year, Lt. Mark Brown, also from the Police Department. Fleisch shared her State of City address given earlier in the day at the Peachtree City Rotary Club meeting. Her remarks included: 2015 was truly an eventful year for Peachtree City-- with its share of ups and downs but as you will hear we have come through the year stronger and ready to move forward into 2016. Last year started off tragically with the New Year's Day shooting involving the Chief of Police at the time. The gamut of emotions that surrounds a situation like that were vast however, we as a City have recovered from this indescribable tragedy by pulling together and moving on. Our police department's presence and social media engagement within the community has been incredible. Last year the Police Department received multiple accolades for their work in our community. Awards were received from the Governor's Office of Highway Safety, the International Association of Chiefs of Police and the Commission on Accreditation for Law Enforcement Agencies Gold award with excellence. It is my belief that the professionalism shown by our city during this time attracted a group of exceedingly qualified candidates for the Chief of Police position. Chief Janet Moon hit the ground running in August and has been a tremendous asset to the city. The people of Peachtree City should be equally as proud of the accomplishments of our Fire Department. Last year our department earned the ISO One rating which puts them among the most elite Fire Departments in the COUNTRY. Only, 138 of 47,000 departments across the country currently have this classification. The role of public safety in any community cannot be understated. We are lucky and thankful to have such superior quality departments within one city. Our public safety officers are a special group of folks that instill pride in our community. Public safety accounts for roughly half of our city's budget and half of our city employees; to have them both positioned with great momentum moving into this year is truly a great thing for the people that they serve. City Council Meeting January 7, 2016 Page 2 Personnel is a key component in any organization and last year we had three key vacancies in the city that needed to be filled. As I have said the Chief of Police position was filled, and we also filled the Planning and Development Director position. In a planned community the planning director position is very important and after a multiple year search we were able to fill that position. Lastly, we hired a new city manager, Jon Rorie. Many of you know him and I am pleased that he was officially named city manager in November. Jon had been serving as interim city manager since June and he is doing an exceptional job. Peachtree City is classified as a Class B city by the state of Georgia. What does that mean? The state classifies cities by the number of people that it serves, and our city is listed with other cities of similar population. Alpharetta and Atlanta are class A cities while Duluth and Dunwoody would be examples of other class B cities like Peachtree City. Peachtree City is the only class B city in Fayette County and according to Georgia Demographics, it is the 26th largest city in the state with Fayetteville coming in at 59th and Tyrone at 129th. The financial needs of our city are considerably different than the needs of other cities in the county. Plus we also have our signature multi use paths to maintain which are in need of maintenance just as any other infrastructure. Our city contributes 40 percent of the tax digest of the county and our citizens comprise almost 40 percent of the rate payers of Fayette County Water. Years ago, 1966 to be exact, there was an agreement with Fayette County that allowed for Lake Peachtree to be used as a water reservoir in order to start the Fayette County Water system. The ownership of the lake was to remain with the City however, the maintenance which includes dredging was the responsibility of the county. As a result of this agreement with the city, the county was able to secure bonds to fund the building of the water system that we have today. Including the ongoing dredging, there have been a total of three dredgings since this relationship between the city and the county began. The first dredging was over 100 thousand cubic yards of silt in the 1980's. A compromise was reached at that time with the county to allow them to pile the silt material into the lake which resulted in Snake Island. The second dredging took place around 2003 with approximately 24 thousand cubic yards taken out. There were a total of six contracts with the county dealing with Lake Peachtree; the first in 1966 and the latest was dated 1985. The contracts mentioned seven dredging areas that needed to be brought to original levels but there were no measurements associated with any of the stipulations in the contract. In 1966 there were no numerical reference points for the pool level or the original depth of the lake itself to which the county needed to dredge. When the lake was brought down in 2014 and the issues with the spillway came to light, we were bound by the series of contracts dating back to 1966. When the issues with the spillway were brought to our attention in March of 2014 the council took immediate steps to do whatever was necessary to restore Lake Peachtree as the centerpiece of our community. The first thing we did was assemble a team of engineers that are recognized as experts within their field. We also engaged an attorney who specializes in water matters. Putting this team together was essential in negotiating with the state over the category one dam reclassification and with the county. Initial estimates were that a category 1 dam would cost close to 7 million dollars. Thankfully revised estimates put the figure much lower than that. On December 31, 2014 the State reinstated the category two status and the county recently repaired the spillway. It is my belief that the city was able to get the dam reclassified within only six months due to its City Council Meeting January 7, 2016 Page 3 taking the lead in working with the state. However, the state and engineers are quick to point out that any repairs done to the spillway now are merely temporary. They recommend building a new spillway within the next few years. Early in 2015 newly appointed Chairman of the County Commission Chuck Oddo and I began discussing a solution to the issues surrounding Lake Peachtree and as a result the County will contribute 2 million dollars towards the construction of a new spillway. The contract also outlines terms for one more dredging of the lake to which the county will contribute at least 1 million dollars. In the future the city will have control of the construction of the spillway and any future dredging. The contract will continue until 2035. Regarding the current dredging, it is important for the county to complete the work that they are contractually obligated to do. The situation has been frustrating to say the least; however, it is important to realize that the rain we have been experiencing has been unprecedented. The City of Peachtree City has been working with the county for over a year to ensure that the county encountered no obstacles in completing the dredging. The City has cooperated and expedited any requests made by the county in order to get the dredging completed. While we are all frustrated, the county still needs our patience in order to finish the job. The situation with the dam and spillway further illustrates the situation we are in across the city and the county with our infrastructure. Years ago it was obvious that the City wasn't maintaining itself. We have 471 subdivision entrances that the city is responsible for maintaining. When the landscaping was outsourced, the subdivision entrances suffered from a lack of attention. This year there has been a concerted effort by our buildings and grounds and public works departments to restore our city back to the standards that we once enjoyed. It has been a long time coming but the work on the medians along 54, 74 and Peachtree Parkway is now being noticed by those who call our city home. Years ago I was told by a resident that her boss came down from Atlanta to look at relocating his business to Peachtree City. At the time our landscaping and infrastructure was in disrepair and he DID NOT relocate his business here because, "Peachtree City looked like a City that people USED to care about." I was also told at the time by many people that the perception of the city was that it was on its way downhill. It is my belief that the city was headed for a terrible "perfect storm six years ago". The incredibly hard work that has gone into bringing back all of the maintenance to our facilities has truly begun to bear fruit. Year over year the city's digest grew by almost eight percent due to an increase in property values. For the first time we were on a list of the 50 hottest zip codes in the country for residential housing. We were number 41 and the ONLY city in the state of Georgia to be on this list. Of all the lists that we were on this year I am pleased with the top zip code recognition as it is a tangible result of the great work our city employees have done over the past couple of years. I hope the strides we have made are apparent to the residents of our fine community. A tremendous amount of work has happened across the city to strengthen it from within; both organizationally in terms of personnel and physically in terms of how we have worked to identify and prioritize long neglected projects. I believe that we have changed the trajectory of the city over the past couple of years. Due to our fiscal conservatism, we have continued our reputation for being good stewards of our resident's tax money; the city has maintained its AAA bond rating. We here in Peachtree City expect excellence, and each year our finance department has been able to maintain this level of achievement when most Cities have struggled with rising employee and material costs and declining property values which lead to lower revenues. City Council Meeting January 7, 2016 Page 4 Like all communities, our materials and fixed costs continue to rise and that will be the case as more of the Affordable Care Act becomes law in the next couple of years. We have gained efficiencies by installing computer software that was long needed in our human resources and payroll departments. However, the long term impact of the Affordable Care Act is still unknown to a degree but is being proactively assessed by both human resources and finance. The declining of fees we receive from Comcast and other telecom providers was the impetus for researching a city owned broadband initiative. Information regarding that potential project is still coming in and we are actively assessing it. Privately owned projects that were approved and permitted years ago are now moving forward. The MacDuff Parkway construction will continue well into 2016 and the Overlook Retail development should be completed in 2016. Two years ago the City commissioned a traffic study of highway 54 from Flat Creek to MacDuff parkway. Projects that were outlined in that study continue to be the basis of conversation with the council and plans for two key intersections MacDuff and Planterra will soon be discussed. The industrial section of our town is nearly full. Recent expansions of current industry, along with some new corporations moving in have left us with very little land for additional industry. Approximately 20 percent of our community is made up of retail or industry while 80 percent is residential. In order to keep residential property taxes low we need to be proactively looking at ways to add more industry to the city. Experts have advised us that the percentages should be closer to 60 /40 or 50/50 split. Again we are at 80 residential to 20 industrial. We must also listen to and engage the business community to help retain the industries that are currently within the city. Budget constraints that have helped us maintain our AAA bond rating, have also left us years behind in both our multi use path and our road maintenance. This city cannot afford to neglect these very significant pieces of our infrastructure. These and other topics will be discussed at our retreat this year. Our parks and the area around City Hall are also in need of more maintenance and it is my hope that we will one day be able to connect the parks surrounding City Hall and Drake field in order to make a central meeting place or passive recreational city center. Unfortunately, the weather affected many events this year including The Great Georgia Air Show. It was truly thrilling for all of us here in the city to see the incredible men and women that make up the Blue Angels and to have those jets flying above our city is something most will never forget. In contrast, The Diva Marathon had a picture perfect day and the estimated revenue from the event brought in about a million dollars for our City. The Diva's will be back and are scheduled for September 10th. Also, this year September 11, 2016 will mark the 15th anniversary of the terrorist attack on our country in New York, Pennsylvania, and Washington, D.C. Here in Peachtree City, we will commemorate that day with community events and a concert at our Frederick Brown Amphitheater featuring country singer Lee Greenwood who has accepted our invitation to appear. We look forward to working with various community groups to make this an event to pay respect to those who have made many sacrifices to our great country in the years since that horrendous attack. We are a phenomenal city and this year starts with great promise. I thank you all for the opportunity to serve you. City Council Meeting January 7,2016 Page 5 Minutes December 3, 2015, Regular Meeting Minutes King moved to approve the December 3, 2015, regular meeting minutes as written. Ernst seconded. Motion carried 4-0-1 (Prebor). Consent Agenda 1. Consider Indemnification of Public Officials 2. Consider Legal Organ -Fayette County News/Today 3 Consider Items for Surplus- Lifepak 12 & Decommissioned 4. Consider Reappointment of Dr. Thomas Faulkner to Fayette County Board of Health, 5. Consider Bid for Pipe Lining- Beechwood 6. Consider Bid for Pipe Lining -Coventry Subdivision & Various Locations 7. Consider Alcohol License- NEW -Star Indian Grocery, 232 Commerce Dr. 8. Consider Reappointment of Stephen Ott as Municipal Court Judge 9. Consider Acceptance of Donation from Brandon Package Store -CERT 10. Consider Budget Amendment- FY 2016 Learnard moved to approve Consent Agenda items 1 - 10. King seconded. Motion carried unanimously. Learnard thanked Brandon's Package Store for the $1,000 donation to the Community Emergency Response Team (CERT), adding it was not the first time. Old Agenda Items 10-15-09 Consider Golf Cart Ordinance Amendments Relative to Registration & Outside City Limits Fees Public Information Officer/City Clerk Betsy Tyler noted the cart path system was the City's signature amenity, and no other Georgia city or county had this unique feature or expense. Discussions on funding maintenance of the path system had ranged from fees, to taxes, or a combination of both. She pointed out that state law on golf cart registration had changed in 2014 to allow annual registration of golf carts. The maximum registration fee remained $15. Per City ordinance, re-registration for all golf carts was scheduled in 2016. The FY 2016 budget included $1.7 million for the multi-use paths ($665,000 for supplies and material, with the remainder for labor and equipment). The budget did not include funding for path expansions or new connections, bridge replacements or additions, or tunnel replacements or additions. Tyler continued that $1.7 million was approximately 0.903 mils. Based on the average home price of $269,000, every household in the City paid an average of $97.16 annually to maintain the path system. Increasing the registration fee to $15 per cart per year would raise $180,000. Tyler said the annual fee would have to be $150 per cart to generate $1.7 million. Tyler continued that fees should reflect the cost of providing the service, according to City Attorney Ted Meeker. The path system was a service for 11,400 golf carts, and a mechanism for registering those carts was in place. However, there was no mechanism for registering the pedestrians or cyclists who also used the path system. At the December 1 workshop, staff had recommended approval of the amended golf cart ordinance and fees, which had been originally reviewed on October 15. The City fees would increase from $12 (for one to five years depending on when registered, but no proration of the fee) to $15 (per year, paid every three years). Non-resident (out-of-City) fees would increase City Council Meeting January 7,2016 Page 6 from $60 annually to $100 to offset the annual property tax contribution by residents (of $97 per home average). In addition, the transfer fee would increase from $5 to $15. Late fees would be standardized at $20, whether for payment, advising that the owner had changed, or that contact information had changed. The reciprocal registration with Tyrone would be eliminated, standardizing all out-of-City carts' contribution in comparison to the property tax contribution by City residents. One new component would be added. Tyler noted that rental cart businesses in the City would be allowed to pay the fees annually, since the fleets turned over often or were rotated out of the fleet. Tyler asked Council to establish fees as they presented or amended and to adopt the corresponding ordinance. Learnard clarified there were two phrases for cart owners who lived outside the City - nonresident user fee and reciprocal agreement with Tyrone. Tyler said that, currently, the ordinance required all nonresidents to pay a $60 annual fee. There was a separate paragraph that acknowledged a reciprocal agreement with Tyrone that allowed Tyrone residents with carts registered in Tyrone to use paths in the City, and it also allowed the same thing for City residents with carts registered with the City. Implementation would begin in 2016, and City residents would register every three years for $45. A new decal would be issued to affix to the side of the existing decal with the wording "Valid thru 2019." Carts registered between 2017 and 2019 would receive the same decal at a prorated rate ($30/$15). Nonresidents would register and pay the nonresident user fee each year [$115 ($100 nonresident fee and $15 decal fee)] and would receive a different colored decal with wording saying the registration was valid through January 31 of the next year. The same decals would be used by businesses with rental carts. Ownership transfers would be $15. King asked if approval of the ordinance would eliminate the reciprocity agreement with Tyrone. Tyler said it would. Prebor asked how many carts were registered in Tyrone. Tyler said there were over 1,000 carts registered as out-of-City, and she said approximately 300 additional carts were registered in Tyrone. Learnard said she had problem with the amount of the increase for out-of-City (nonresident) golf carts. Council had received an e-mail from a concerned citizen prior to the meeting, and she read from the letter: Rather than figure out how to disenfranchise nonresidents, the City should figure out ways for nonresidents to enter the City and use local businesses. There are areas where people use their golf carts primarily just to get to Starr's Mill or I think Crabapple Lane Elementary School, some people who have Tyrone addresses. As the County grows its cart path system, there should be a greater sense of cooperation rather than an "us vs. them." Learnard said the out-of-City fees should remain $60, and she wanted the reciprocity agreement with Tyrone to remain. City Council Meeting January 7, 2016 Page 7 King pointed out that the City had 100 miles of paths, and residents paid $97.16 annually whether they used them or not. Out-of-City residents had to pay for using them. Prebor said the paths were the City's number one amenity, and it was an amenity for nonresidents as well, who were getting a bargain at $100 per year. That would be $1,000 for 10 years, and the value of their homes would increase more than that because of the access to the cart paths. King said there was a cost to maintain the paths, and it was $1.7 million for 10 miles. Resurfacing them every 10 years was not maintaining them. The City was behind and needed to catch up. This was just a small step in the right direction. Robert Mudrinich, a nonresident living in Fayette County, told Council he had lived in the City for three years,went to church in the City, and he loved the City. The only vote he had concerning the cart paths was with his feet and his checkbook. It was easy to say nonresidents got the same benefits as residents, and he took exception to that. He rarely used his golf cart, usually to watch the fireworks, visit the Library, or to go to Braelinn or Wilshire Pavilion. When his children were home from school, they used the golf cart to visit friends who lived in the southern part of the City. Residents paid the extra millage rate to live here, and they had the right to say their zip code was 30269, which was something he could not do. If he used 100 miles of the path, Mudrinich said he would feel he got his money's worth. He barely used five miles worth. It was a user's fee, and he agreed someone had to pay for the paths. He was willing to pay $60 annually and the $15 fee for the decal. He continued that some cooperation should exist between the City and the other governments in the County. The County was going to add more paths, and he expected Tyrone to do the same. He asked why the City wanted to create an "us vs. them" environment. He suggested coming up with a revenue system to cover the whole County, such as a SPLOST. Ernst agreed that most nonresidents came to the City for a specific reason, and it was a rare occasion that brought in a lot of nonresidents. He was concerned about what would happen with the Starr's Mill High School students from the City who were not paying for County registration. This was bad timing because of the budget, and was nickel-and-diming the citizens. He supported increasing the resident fee for the three-year period. He would like to see the nonresident fees remain the same for now, except for Tyrone, who should pay the same fee as others who lived outside the City limits. Fleisch asked how it would work when people came in to get new decals. Tyler said residents would pay $45 and receive a decal that was valid through 2019. After July 2017, people would get the same decal, but the price would drop to $30. Fleisch said, if the out-of-City carts were registered every year, then they would not be locked in if something happened with the other entities. However, if the County did something with property taxes, then the City residents would be double-taxed. Fleisch pointed out that the out-of-City fees were done on a yearly basis. If something were to change between the City, County, or Tyrone, then the City would be able to adjust. While the County was working with the Atlanta Regional Commission (ARC) on a master plan for its paths, Fleisch was concerned that could lead to double taxation if the County decided to use property taxes to implement its plan. King said he understood Ernst's and Learnard's concerns, and he agreed going from nothing to $115 would be tough for Tyrone residents, especially for those who limited their use on the path system. However, City residents were paying $100 through their property tax every year, and Council had an obligation to represent City residents and what was best for them. Lynne Lasher reminded Council that homes were being sold in Tyrone based on the ability to use a Peachtree City amenity for no money. She was told that when she called Tyrone Town Hall City Council Meeting January 7,2016 Page 8 and by a real estate agent. Every home in the City paid $97.16 for the cart paths every year whether they had a golf cart or not. It was about equality; all City residents paid to use the system, and out-of-City residents should pay too. Linda Flowers said she lived by Wilshire Pavilion, and she rarely took her golf cart past Braelinn Village Shopping Center. Most City residents would have an increase in their property taxes, and she felt nonresidents should have an increase. She said it would be nice to find a solution for the nonresidents who drove their children to and from school in a golf cart. What would happen in the future was not right now, and they had to pay for now. Pam Kemp said her home was her number one investment. She paid more per square foot because of the path system and greenbelts. If she were to sell her home, she would be competing against homes in Tyrone that had more house for the money and were 15 minutes closer to Atlanta, as well as getting the City's amenity for nothing at this time. In order to encourage redevelopment in the City's core, the City should not be giving away an amenity. King moved to approve the golf cart ordinance amendments relative to registration and the outside-City limits fees as stated in the briefing. Prebor seconded. Motion carried 3-2 (Ernst, Learnard). New Agenda Items 01-16-01 Consider Resignation & Appointment to Facilities Authority Board City Manager Jon Rorie noted that former Council Member Eric Imker had been appointed to a temporary position that expired on December 31. Imker had resigned from the board when his Council term expired. Staff recommended Prebor be appointed to the Public Facilities Authority with a term that ran from January 1, 2016-January 15, 2018. Learnard moved to accept the resignation of Eric Imker and to appoint Phil Prebor to the Public Facilities Authority. Ernst seconded. Motion carried unanimously. 01-16-02 Consider Median Work in SR 54 at Planterra Way City Engineer Dave Borkowski said this was a small piece of the improvements planned for the SR 54 West corridor. The plan was to cut 30 feet off the median on SR 54 at the Planterra Way/Home Depot/Walmart intersection to allow for better turning movement out of the Home Depot/Walmart side. The City had a permit from the Georgia Department of Transportation (GDOT) for the work, and there would be no mobilization costs as the company doing the work for The Overlook was contracted for the project. Borkowski said The Overlook developer had bid their work out, so the contractor had been competitively selected. The cost would be $18,001. 84. The contractor was ready to begin work the next week if approved. Funds were available in the Public Works street resurfacing program. Rorie said it was important to note the current construction for The Overlook was in the middle of the SR 54 corridor, as was the nosing. Other traffic improvements would be in the side streets, so it made sense to finish the work in the middle of SR 54 corridor now rather than coming back to it later. Fleisch asked if the signal changes were part of this project. Borkowski said changes to the signal to allow for concurrent movement of left turns was not part of this project. The area would be re-striped, and they would have to pull the stop bar back for the left turn lane, as well as moving signage. Learnard asked what this project would enable. Borkowski said it would assist in City Council Meeting January 7, 2016 Page 9 removing the split-phasing of the traffic signal. Additional lanes would be added later on the side streets. Ernst moved to approve New Agenda item 01-16-02 Consider Median Work in SR 54 at Planterra Way. King seconded. Motion carried unanimously. 01-16-03 Consider Drake Field/Lake Peachtree Project Rorie reminded Council of the rain in December, saying it had to go somewhere, and it went into Lake Peachtree. After the storms, the lake was at full pool in some areas. The dredging project had not been completed, and the contractor still had to remove the haul road beds and siltation fences. Residents had suggested the City let the lake stay full, which Rorie said would be irresponsible on the City's part. The lake had to be drained so the dredging could be completed. Rorie said there had been some discussion about what to do with Drake Field, and he gave an overview of possible projects, noting there were limitations on what could be done. Drake Field was approximately eight acres, and the City had purchased the property using $279,000 in greenspace funds from the state. No more than 15% of the area could be considered impervious. If that changed, the City would have to either refund the grant money or convert another area to open space/greenspace. Additional parking could not be added. One of the possibilities included building a 900 square-foot gazebo to be used as a stage and shelter, which would be funded by the Convention & Visitors Bureau (CVB). There would also be swings and benches, and electrical outlets/lights. Erosion controls needed to be put in place, and Public Works had begun working on removing the underbrush in some areas. Repair was also needed to a drainage culvert. Fayette County would be removing the haul roads in the lake, removing the silt piles, and spending $25,000 to return the area to its original conditions. Rorie said he would prefer the County give the $25,000 to the City and use it to repair curbs/asphalt, grade, hydroseed/sod, replace plantings, replace fencing, and repair the rock wall. He asked Council to authorize the City Manager to request payment from Fayette County in lieu of the dredging contractor returning Drake Field to its original condition. Rorie said he would like for the contractor to leave 2,000 cubic yards of the silt to grade and fill in holes on the field. This would be a win/win for the City and the County, Rorie added. He wanted to make sure the City took responsibility for doing the work, which could be done at one time. It would be a change order for the County to have the contractor do it. King asked if there had been any preliminary discussions with the County and if they were amenable. Rorie said there had been, and they seemed to support it, but he could not speak for them. Fleisch asked how long it would take Georgia Power to get electricity to the field. Rorie said the City needed to get on their schedule first, but the project was not extensive. Learnard moved to authorize the City Manager to request a payment of $25,000 from Fayette County in lieu of the dredging contractor returning Drake Field to its original condition. Prebor seconded. Motion carried unanimously. Council/Staff Topics Rorie noted that the agenda had a different layout, and Council/Staff Topics would be handled differently moving forward. Rather than have a "Discuss/Consider" item on the agenda for the City Council Meeting January 7, 2016 Page 10 same night, Rorie said there would be a mini-workshop held under "Council/Staff Topics" first in addition to quick updates. Those items would appear on the agenda later. There were also several things going on as far as the minutes of the meeting. He introduced Nancy Seabolt, a court reporter. Seabolt would provide a transcript of the meeting. Deputy City Clerk Pam Dufresne would continue to convert the audio into minutes for approval. The audio would also be sent to an outside contractor, and Dufresne would then edit the transcript. The idea was to evaluate how to maximize the use of personnel in getting the minutes done. He added that the City's minutes were thorough compared to other governments, but not verbatim, which was invaluable when the minutes were researched. He wanted to figure out the best way to produce the minutes. Update on Municipal Broadband Rorie said Financial Services Director Paul Salvatore, Allen Davis of Community Broadband, and Philip Abbott of Cpak, the City's IT contractor, were available to answer any questions. Rorie said the City did not own any of its own fiber and was completely dependent upon private carriers. Some City facilities were still not connected to fiber. The speed/capacity of the current network was insufficient at 100 Mbps. The need for more data capacity/speed was increasing sharply. Rorie said they were looking at what the technical and financial solutions should be. The cost of meeting the current and immediate future data needs was sharply rising. Currently, the City paid $44,000 per year for 100 Mbps of service. Cable franchise fees were also diminishing as people moved to fiber. The City currently received more than $500,000 per year in franchise fees, and that was expected to decline as services moved to fiber. Rorie went over the broadband timeline, which began in February-March 2015 with a feasibility study. The business plan was developed in April - May. The cell tower agreements were renegotiated in June - August, and the broadband workshop was held on September 8. The business plan was presented on September 17, and it was accepted by Council resolution. In October, requests for proposal (RFPs) were sent out for design, construction, materials, and equipment. The financing RFP was sent out in November. Further due diligence was ongoing. Since the September 8 broadband workshop, there had been meetings with AT&T (September 9) and Comcast (September 14), and the City had received multiple emails that used the same wording, Rorie said. It was not a surprise. Since Council approved the resolution on September 17, there had been questions on the business model, boondoggle complaints, concern about failures, and personal attacks. Rorie said there were failures across the country, but no one ever mentioned the successes. Watchdog.org and the Georgia Public Policy Foundation were insisting private carriers could provide what the City needed. NuLilnk had begun installing fiber on the south side of the City to test the market. The RFPs were back, Rorie said. The construction RFPs came in under the numbers in the business model. There had been a conference call with the internet service providers (ISPs), more IT-type providers, who told the City to not poison the well because the private companies might not support the community any more. A request for information (RFI) had been sent to the private carriers for comparison, and they had been due November 27 and had been evaluated. Rorie added they were not a true accurate quote on prices. Opening of the financing bids had been delayed. Meetings had been held with other local IT providers who had contacted the City, and the broadband workshop was held December 1. Rorie continued that this was a visionary decision. The City was not in the business of being in business, and staff had debated the topic. Utilities were business model enterprise funds that City Council Meeting January 7, 2016 Page 11 generated revenue instead of offsetting cost. The public goal was to meet service level demands, cost containment, and economic development. There had been discussions on demand vs. market. If the market demanded it, the market would provide it, but up to what point, Rorie asked. The simplified breakeven point had been shown as $1 million annual revenue, with $365,000 needed for debt service on the $3.2 million bond, and $700,000 for operation and maintenance. The City would be able to voluntarily fund the IT Department and purchase broadband. There were 256 potential customers, with a target of 1 Gpbs per customer. Twenty-four customers at 1Gbps was 9% of the market or 45 customers at 500 Mbps (approximately 17% of the market). A survey of local businesses led to the "gut instinct" this was the right thing to do moving forward, Rorie said. Salvatore reiterated several points made by Rorie. The City did not own any of its own fiber and was completely dependent on private carriers, which was unusual for a city like Peachtree City. Some City facilities were not connected to fiber. The speed/capacity of the current network (100 Mbps) was insufficient. The need for more data capacity/speed was sharply increasing. The City's particular needs for data included GIS/mapping performance for Public Safety and Public Works sites; offsite storage for Police Department video backup, which was not currently done; a central location for camera security systems for facility security; increased wireless bandwidth for facilities; higher bandwidth internet connections through City Hall internet (not have bottlenecks for internet access); provide reliable access for fire stations and maintenance facilities; and electronic plan submission for the Building Department. Salvatore continued that the cost of meeting the current and immediate future data needs was sharply increasing. The City currently paid $44,000 per year for 100 Mbps service. The quote for 2016 was $87,000 per year for 250 Mbps (103% increase). The estimated need for the City was 1.5 Gbps at an extrapolated cost of $500,000 annually. In addition, the City currently received approximately $500,000 annually for cable franchise fees. Salvatore expected those fees to decline as services moved to fiber. The City had three options - pay higher costs for more capacity from fiber service providers, lease from a dark fiber system provider, install and operate its own municipal fiber optic network. Salvatore continued that the City had received quotes from the private providers, and all vendors were given the same exact specifications. The quotes were as follows: Service Provider Monthly Cost Annual Cost AT&T $134,034 $1,702,012 Comcast $37,737 $452,844 NuLink $8,714 $104,568 PTC Government Network $37,350 $448,198 (including debt service) The pros of the "buy more" option were that all requirements for revenue generation were eliminated, Salvatore said. All the operational and administrative tasks associated with operating a broadband system were also eliminated. The cons included high annual costs for service, risk of significant price increase in five years, not solving the problem of the loss of cable franchise fee revenues, and a lack of control over the infrastructure so it could not be used for economic development. City Council Meeting January 7, 2016 Page 12 Salvatore said AT&T had offered the standard Atlanta business rate, while Comcast had gotten permission for special pricing. Staff had spoken with NuLink, and the company had confirmed that the quote provided was the actual rate. Option 2 was to lease dark fiber, which Salvatore said was a recent development and a unique opportunity. A company was in the process of building a 9,000-mile fiber network, and it was coming through the City. The company was willing to construct the City's 24-mile fiber network while mobilizing in the area (2016) and would lease dark fiber to the City. The company would remain responsible for all the "physical plant" out in the field. Salvatore explained that dark fiber was fiber optic cable that was not connected to any equipment, so it provided no service. The City could "light it up" with its own equipment at any speed/bandwidth it needed or wanted. There might also be the ability to offer service outside City facilities similar to a "build" option. The pros of leasing included a smaller capital outlay/debt service (internal equipment purchases only), no responsibility for maintaining a physical plant, and the ability to control speeds/capacity of the system. The cons were the high annual lease cost ($368,000 per year for 10 years), lack of control over infrastructure (no tool for economic development, no ownership), and the lease would need to be amended for any customers. Option 3 was to build a municipal fiber system. Salvatore said the proposal was to construct a 24-mile municipal fiber optic infrastructure system that would connect all 12 City facilities with needed speeds and bandwidth. The route to connect the buildings would pass business/industrial districts, schools, and conference facilities. It would provide an economic development tool and opportunity to control the infrastructure. It would be operated through public-private partnerships with experienced firms. The average annual cost would be $448,198 for 10 years, which would include $365,000 per year for debt service. Twenty-four customers would defray the General Fund costs ($70,000/year). Marketing surveys indicated the City could achieve this level of subscriptions, Salvatore said. The City would be able to use the utility as an economic development tool and control the destiny of the infrastructure (protect the tax base), Salvatore said. It would also have a strong ability to connect to outside networks, and the system would provide an opportunity to replace lost franchise fee revenues and reduce the City's cost. The cons included the operational and administrative responsibilities. Salvatore continued that other questions/concerns included how system maintenance would be handled - problems in the field (fiber cut), problems with internal equipment (switches), system upgrades (technology advancements), and qualifications of network management firm. There were also concerns expressed regarding connection to outside networks, and there were multiple competitive quotes from providers with redundancy. Salvatore gave a recap of the NuLink pricing. The current pricing was for an internet speed of 100 mbps with a bandwidth of 100 mb for$43,200. The first proposal (FY 2016 request) was for an internet speed of 250 mbps and a bandwidth of 1 G for $87,588 (103% increase). The new proposal was for 1.5 Gbps and a bandwidth of 10G for $104,568, a 19% increase. Salvatore added the second proposal included two additional facilities that had not been included in the other proposals. City Council Meeting January 7, 2016 Page 13 Salvatore said the dark fiber proposal had actually been the worst of the three options, leaving the options of buying the service and paying higher costs for more capacity from fiber service providers or building, installing, and operating the City's own municipal fiber optic network, according to Salvatore. The "Buy Benefits" included eliminating all requirements for revenue generation, eliminating all operational and administrative tasks, supporting private sector investment in community, and possibly a lower cost. The "Build Benefits" included using broadband for economic development and business recruitment/retention; a more secure network/better service/better bandwidth for schools; cell tower (data back-haul) - better bandwidth for all mobile users; private, secure communication between governments (not over a public network) for the County and the cities; two City IT contractors would provide better support for over 100 local business customers; better service/pricing could be provided; and involuntary taxes could be supplanted by voluntary broadband subscriptions (residents could benefit through lower taxes) in the City budget. Rorie said a lot of research was still going on in the background. Staff was negotiating with NuLink on a potential five-year agreement with performance indicators that would fix the annual cost for a five-year term and limit cost increases from year six through year 10 and beyond. The finance package would be for 10 years. The January 21 agenda could include the build/operate option components, and the Public Facilities Authority would meet prior to the Council meeting regarding the bond for financing, which would also be on the Council agenda. They would also look at construction agreements. As an alternative Rorie continued, the request build option components would be tabled to February 4 to allow for negotiations with NuLink to conclude. Rorie said that, as opposed to a RFI or a quote, he wanted to come back with a written agreement with NuLink that clearly specified the parameters before entering a short/long-term agreement with a private provider. He also wanted to have all the financing package and construction information regarding the "build" option. Council would also have information on the trade-offs. Rorie said the build option was sustainable through revenues, but he wanted to ensure due diligence had been done. He acknowledged the work done by Allen Jones, Phillip Abbott, Salvatore, and Tyler. Doug Bates, CMIT Solutions, told Council he provided local IT services for small and medium-sized businesses. His goals were to provide the best IT/ISP to meet his clients' needs. Most small businesses could not afford fiber because of the high cost. Having a third provider provide a valued fiber connection would give him more options to provide services to businesses and help them grow. The more money they made, the more money they put back into the community. He did a lot of business with Comcast and NuLink, but competition was good. A value-priced fiber connection would be of interest to those smaller businesses. Ordinance Amendment& Action Preview • Public Hearing Procedures • Stormwater Fee Exemption-Atlanta Regional Airport- Falcon Field • Planning/Zoning Fees Tyler said this was a preview of coming attractions, saying there were some items that should be out in the public view for more than the six days between when the packet was placed on the website and the Council meeting. Council and the public could ask questions, then the items would be placed on an upcoming agenda for Council consideration. City Council Meeting January 7, 2016 Page 14 Tyler continued that the current rules for City Council and Planning Commission public hearings called for the staff presentation to be done with either those supporting or opposing the request under consideration, which placed staff in the position of either advocating for or against a request before the body. The proposed amendment would provide for a staff assessment of the request's compliance with City ordinances in lieu of a staff recommendation, which would leave the applicant to serve as the advocate for the request. The staff's presentation would be given prior to the speakers supporting and opposing the issue. In addition, an amendment was proposed to allow the hearers (Mayor and Council or the Planning Commissioners) and/or staff to ask questions at any point during the process. The procedures currently required the hearers to ask questions during the public hearing. An amendment was also in the works to the City's Stormwater Utility Ordinance, which currently provided exemptions for major infrastructure components, including railroad rights-of-ways, GDOT streets and rights-of-way, and water and wastewater treatment basins (Fayette County Water System and the Peachtree City Water&Sewerage Authority). Tyler continued that the proposed amendment would add runways and taxiways at Atlanta Regional Airport - Falcon Field. Other impervious surfaces at the airport would not be exempted. The fee was ultimately paid by the City to the City, based on the hotel/motel tax agreement with the Airport Authority. Tyler discussed the proposed changes to the City's fee schedule for Planning and Engineering and Building. Proposed new fees included Variance (multiple requests) -$250 plus $100 for each additional variance request, Revisions/Submittals-$100 each, Zoning Site Determination Letter- $100, Minor Subdivision Plat (Plan Review) -$150 plus $5 per lot, and Timbering Permit-$100 plus $10 per acre. Proposed changes to the fees/categories in Planning and Development/Engineering included the following: Fee Type/Application Fees Existing Fee Proposed Fee Annexation-Step 1 $600 + $50/acre $750 + rezoning fee Annexation-Step 2 $600 + $50/ acre $750 + $50/ acre Zoning determination verification letter $50 $50 SUBDIVISION FEES-D1 AN REVIEW FEE Concept plat $250 + $4 per lot $300 + $5 per lot Preliminary plat $250 + $4 per lot $300 + $5 per lot Construction plans $300 $300 + $5 per lot Final plat $250 + $10 per lot $300 + 5 per lot Plat amendment $50 $100 Revisions/resubmittals $100 $150 SITE PLAN FEES- PAN REVIEW FEE Conceptual site plan $250 + $10 per acre $300 + $10 per acre Final site plan $250 +$10 per acre $300 + $10 per acre Landscape plan $150 $200 Revisions/ resubmittals $100 $150 SIGN PERMIT/OTHER FEES Sign $100 per sign $100+ $50 for each additional sign City Council Meeting January 7, 2016 Page 15 The proposed change to the Building Permit fees was regarding Trade Permits, which were currently $80. The proposed change was $80 plus $5 for each $1,000 or fraction thereof of valuation of work being done. Tyler said the public could e-mail staff or Council with any questions. Rorie said the information would be posted on the website. Potential Request for Limited Sewer Expansion to Tyrone Rorie said the proposal was for Council to authorize the Peachtree City Water & Sewerage Authority (WASA) to extend sewer outside the City to provide the Town of Tyrone with a maximum sewer treatment capacity of 350,000 gallons per day (gpd). Rorie said he would focus on the non-technical side of the story and whether it made business sense, as well as what was in it for the City's residents. Rorie continued that the sewer plant was currently operating at half capacity. The 6.0 MGD (millions of gallons per day) plant was operating with an average daily flow (ADF) of 3.1 MGD. The existing plant was designed and permitted in 1999 - 2000, and it was constructed between 2002-2005. There was bond debt, and revenues were pledged to cover the bonds. The sewer rates were approximately twice the water rates. The additional capacity had been added to provide adequate plant capacity to be able to handle the generated wastewater flow. The City's population had grown from 31,580 residents in 2000 to the current population of just over 34,000, which was a 9% increase. The Planning Department estimated buildout at approximately 42,000. The number of customers served by WASA was going up, while water usage was going down, and the trend line was in a constant decrease, Rorie pointed out. Since 1999, water usage had gone down, while the number of customers had increased. The current plant had been designed during a peak water usage time. The cost had gone up as the usage had gone down. The efficiencies in place now, such as low-flow toilets and faucets that had reduced residential usage of water, were part of the reason. Rorie used his own water bill as an example, he pointed out that he was charged $43.45 for sewer, with $24 of that was going to pay the bond debt, $2 for capital/R&E (to offset future expenses for repairs and replacements without taking on future bond debt), and $17.45 for sewer treatment. Rorie went over the list of commercial/industrial users, including apartment complexes, and two paid more than $100,000 annually, while others paid anywhere from $60,000 to more than $80,000. Another reason for the decrease in revenue for the system was the closure of Photocircuits in 2006, which accounted for a revenue loss of$450,000 annually. Tyrone currently had an agreement with the City of Fairburn for 250,000 GPD, and Fairburn wanted to re-purchase the allocation prior to the contract expiration in 2019. Tyrone had 422 sewer customers (406 residential and 16 commercial), with an average daily flow of 109,000 GPD. Tyrone's objectives were for the project to be cost neutral, if possible; to stop the decline of the business district due to lack of sewer, and to facilitate future sewer service to the downtown business district and the Industrial Park (350,000 GPD). WASA's objectives were for the project to be cost neutral to WASA customers, an increase in revenues, not to over-extend the current system, and for the agreement to be in the City's and the Authority's future interests, Rorie said. City Council Meeting January 7, 2016 Page 16 The current capacity commitments included the West Village, which had been over estimated at 850,000 GPD and 1 million GPD. The current average daily flow was 3.1 MGD, with 1.0 MGD reserved for the West Village, and the proposed 350,000 GPD for Tyrone, which totaled 4.45 MGD. Rorie said another 1.5 million ADF was in reserve for future allocation, noting that expansion planning occurred at 85%--90%capacity. Rorie went over the reasons for Council support, which included a long-term agreement, increased plant efficiency, stabilized rate structure, growth throttle for the Gateway (SR 74 corridor), elimination of inter-basin transfer, transfer of traffic to downtown Tyrone/Gateway Coalition (group of government entities who have affiliated to support similar standards to the City for development along the SR 74 North corridor moving forward), possible sewer to the closed Tyrone Elementary School, planning between municipalities to address quality of life issues, replacement of Photocircuits' consumption. Rorie noted that a rising tide floated all boats. Tyrone could use some of the capacity in the industrial area to create jobs, which would benefit Peachtree City and the entire County. It would also take commercial traffic to Tyrone. The long-term agreement with Tyrone was also considered a con, according to Rorie. Other reasons to not support the request included possible increased density and where it would be, the City's Land Use Plan did not apply outside City borders, no zoning control or extra-territorial jurisdiction, allocation between commercial/residential was a Tyrone decision, reduced capacity in the City, and there were still City residents who were not on sewer. A presentation by WASA General Manager Stephen Hogan would be made on January 21. The vote on the request was scheduled on February 4. Executive Session Learnard moved to convene in executive session for pending or threatened litigation at 9:30 p.m. Ernst seconded. Motion carried unanimously. King moved to reconvene in regular session at 9:48 p.m. Learnard seconded. Motion carried unanimously. Learnard moved to deny the claim of Lorrie Johnson as such claim was presented. Ernst seconded. Motion carried unanimously. There being no further business, Learnard moved to reconvene in regular session at 9:50 p.m. Ernst seconded. Motion carried unanimously. Panteht Pamela Dufresne, puty City Clerk Vanessa Fleisch, Mayor