City Council - 22 October 2007 Minutes

WORK SESSION OF THE
MAYOR AND COUNCIL

PRESENT:
Mayor Lasseter, Councilmembers Bomar, Mundrick, Dugan, Hall
City Administrator, Department Directors, City Attorney

ABSENT:
Councilmember Kirouac

A work session was held prior to the regular scheduled meeting to allow the elected officials to discuss and ask questions of department directors regarding this evening’s agenda items.

No other items were discussed and no action was taken.

MINUTES OF THE
MAYOR AND COUNCIL
CITY OF DULUTH, GA

6:50 P.M. - CALL TO ORDER:   Mayor Shirley Fanning-Lasseter
INVOCATION:                             Rev. Dick Baker
PLEDGE:                                       Scout Robert Rettig, Troop 2001
WELCOME RESIDENTS:           Centurion Hills | Peachtree Walk

1. EXECUTIVE SESSION – REAL ESTATE
   1. A motion was made by Councilmember Bomar, seconded by Councilmember Hall, to adjourn to executive session to discuss real estate matters at 6:50 p.m.
      
      Those voting for: Council members Bomar, Mundrick, Dugan, and Hall
      Motion carried.
      
      After the discussion, a motion was made by Councilmember Mundrick, seconded by Councilmember Hall, to return to regular session at 7:00 p.m.
      
      Those voting for: Council members Kirouac, Bomar, Mundrick, Dugan, and Hall
      Motion carried.
2. CEREMONIAL MATTER
   1. PROCLAMATION – FAMILY LIFE MONTH
      Mayor Lasseter proclaimed November as “Family Life Month” in the City of Duluth, and presented it to members from the Church of Jesus Christ of Latter Day Saints, to encourage residents to implement simple activities that strengthen family bonds and to help families in need.
3. CONSENT AGENDA
   1. APPROVAL OF OCTOBER 8, 2007 MINUTES
   2. LEASE AGREEMENT - ATLANTA CHAPTER NATIONAL RAILWAY HISTORICAL SOCIETY
      [Exhibit “A”]
      Approval of this item authorizes the Mayor or City Administrator to enter into a lease agreement with the Atlanta Chapter – National Railway Historical Society also known as the Southeastern Railroad Museum (SRM) for the re-location and rent of the City of Duluth’s W. P. Jones Depot. The building shall be leased to SRM at a rate of $1.00 per year to be due upon execution of the lease and thereafter on January 1 of each subsequent year. Southern Railway Museum agrees to move the leased premises from its current location at WP Jones Park on Pleasant Hill Road to the current location of SRM at 3615 Peachtree Road. The lease will enable the Railway Museum to move the building onto the Museum property and restore it for citizens and tourists to see in conjunction with their railroad museum exhibits.
      
      Randy Pirkle with the SRM came forward to say plans for the move/restoration should begin late 2008 and open to the public in 2010.
   3. ORDINANCE OF APPOINTMENT – ZONING BOARD OF APPEALS [Exhibit “B”]
      Approval of this item clarifies members and current terms of office for all Zoning Board of Appeals members.
   4. PDP TRANSFER – SALARY AND BENEFITS
      In June of this year police officer David Jones was transferred from the Uniform Division to the Criminal Investigation Division. When the FY08 budget was prepared he was included in the Uniform Division. Approval of this item authorizes the transfer of his salary and benefits amounts to the Criminal Investigation Division.
      Account Name Amount TRANSFER TO FROM
      
      Salaries $48,103 100-802-322151110 100-807-322351110
      Overtime 4,811 100-802-322151130 100-807-322351130
      FICA Tax 4,048 100-802-000051220 100-807-000051220
      Benefits 14,655 100-802-322151292 100-807-322351292
      Performance Comp 886 100-802-322151291 100-807-322351291
   5. AUTHORIZATION AND WAIVERS – INDIAN “FESTIVAL OF LIGHTS” – NOVEMBER 10, 2007
      The Indian “Festival of Lights” free downtown event is authorized by the City of Duluth. A waiver of sign permit fees and location requirements was previously approved by Council on September 10th. As such, approval of this event also waives food service requirements per Section 26-2-370 of the Official Code of GA, which exempts food vendors from having to obtain permits.
      
      A motion was made by Councilmember Bomar, seconded by Councilmember Hall, to approve the Consent Agenda as presented.
      
      Those voting for: Council members Bomar, Mundrick, Dugan, and Hall
      Motion carried.
4. PUBLIC HEARING
   1. ORDINANCES OF ANNEXATION AND REZONING CASE A#0150-06
      KIA AUTOMOTIVE C-3 (COUNTY) TO C-2 (CITY) TAX PARCEL 6-236-222
      [Exhibits “C” & “D”]
      Mayor Lasseter opened the public hearing to consider ordinances of annexation of 2.966 acres and rezoning for the property commonly known as 2493 NE Pleasant Hill Road, Gwinnett County Tax Parcel Number 6-236-222. The applicant requests that the property be zoned General Business District (C-2) from Highway Business District (C-3) as it currently stands in the County, which will allow them to continue their business operation as a new and used automobiles sales and service lot.
      The major issues associated with this request are:
      
      Annexation; br /> Rezoning from C-3 (county) to C-2 (city);
      Relationship and interconnections with surrounding properties; and
      Compatibility with Future Land Use Map.
      
      TThe proposed plan calls for the Duluth City Council to adopt a resolution under the 100% method of annexation at the request of the applicant. The subject property is currently developed as a commercial site with no proposed future residential use. This being the case, the surrounding density will not be affected by this annexation and rezoning proposal.
      
      Staff and the Planning Commission recommend approval of the proposed annexation and rezoning request with the following recommendations:
      
      All provisions in the City of Duluth Zoning Ordinance and Development Regulations must be upheld.
      
      There being no comments or questions, Mayor Lasseter closed the public hearing and called for a motion.
      
      A motion was made by Council member Mundrick, seconded by Council member Dugan to approve the ordinances of annexation and rezoning for Case A#0150-06 as presented.
      
      Those voting for Council member Bomar, Mundrick, Dugan and Hall
      Motion carried.
5. OLD BUSINESS
1. PRESENTATION TO COUNCIL – REDEVELOPMENT PLANS FOR CITY HALL BLOCK
   Greg Whitlock representing the Downtown Development Authority (DDA) came forward and presented a history of the redevelopment plans for the City Hall Block whereby two RFP’s were received from the Gaultney/Spohn development group and the Baxley Group. He reported that due to the timeframe of proposed completion, willingness to negotiate outparcels and post development ownership of the project, the DDA initially recommended moving forward with the Gaultney/Spohn project. However, during negotiations, there had been concerns raised and inability to move forward on a contract. Therefore, City consultant Bill Butler of JWB Realty then recommended moving forward and looking toward other developers for this project.
   
   Mr. Whitlock said that the DDA did go back and review the original RFPs. Due to the high level of density and the issue of ownership, etc. from the original Baxley Group proposal, the DDA had decided to pursue other firms. Mr. Butler came forward and outlined the process. He noted that part of the decision is the “team concept” between balancing residential with the office/retail piece. With his contacts and experience, he felt that the Milestone Group had the best team in place for this project. At this point, the details of the project are still not concrete as they are studying the densities, mix, parking ratios, and design of the project, but a presentation was made by Mike Maschmeyer and the DDA has recommended moving forward.
   
   Council member Bomar explained that in her experience with RFP’s and typically in those situations, negotiation is a part of the process. If the first person is not selected, normal guidelines would say to contact the second company to see if they could fit the bill. She was concerned that Baxley was not given the opportunity to address the prior concerns or amend the proposal.
   
   Mr. Butler responded that they did not go back to the second team, as the DDA felt that their proposal was far in excess of the density that would be suitable for this piece of property.
   
   Mayor Lasseter asked for clarification on how Mr. Butler had recommended opening this back up to other firms. He replied that at a public DDA meeting, the Spohn/Gaultney group came to the DDA meeting and was unwilling to give a definitive timeframe as to move forward. It was then obvious that we were a long way away from the next step.
   
   The Mayor expressed concern as to whether this process was fair and equitable to all parties. She was apprehensive that this action would be perceived to be unethical.
   
   Mr. Butler responded that the project itself has been a challenge for several reasons. It is a government project and many developers understand a different pace for these types of projects. Also, this is a very unique project, requiring many disciplines. As a small project – 1 ½ acres – it is not going to attract national or regional developers. In his opinion, this needs a small local developer who does this project out of passion as much as expertise. Also, since the City does not have any mixed use developments, this is unknown territory. We need to select someone who is doing only one or two projects and can focus full attention on it. He said that it was definitely an option to discuss the project again with the other developer but doesn’t foresee that they could come close enough that the DDA would change their opinion.
   
   Councilmember Mundrick asked Mr. Butler how far along in the process he was with Mr. Maschmeyer’s group.
   
   Mr. Butler said that they have been working on it approximately 8-9 weeks, in which he has had almost daily contact with them. He outlined some of the discussions and considerations taken for the design of the project.
   
   Councilmember Bomar brought up discussion on the realignment of Highway 120 and said that the cost of re-engineering would have to be a consideration as well. Mr. Butler commented that both developers had inferred the elevation change of 120 would not work with their plans, but the alignment itself would work.
   
   Mayor Lasseter was still concerned about the second group. Mr. Butler said it would be possible to send another RFP if it would put everyone’s mind at ease that it was a fair process.
   
   Councilmember Mundrick said that a representative from the second group was present, and he asked Mr. Pieper of Pieper O’Brien Herr Architects, part of the second team, to come forward. He questioned how they would react if the council was to open up the process again.
   
   Mr. Pieper responded that they had just heard about the most recent developments; within such a short response time it would be a challenge to say whether they would pursue the project at this point. They were not afforded the same opportunity and did not feel that it was a fair process because neither of the first two groups had interplay throughout the original RFP process. To play “catch-up” would be very difficult as the DDA has already established a comfort zone with the new group and he doesn’t feel that there could be an untainted opinion. Mr. Pieper was still very upset and felt that the City’s process was flawed, and noted that his firm had invested about $20,000 in the original plans.
   
   Councilmember Dugan regrettably agreed that there were lessons to be learned from this experience but the chances are the second group would not come back to the table on this project. There has been a lot invested in this project to date, and did not feel that it was intentional to slight the second company. He said that the job of Council and the DDA is to look out for the good of Duluth for many years to come for all the citizens, and moving forward with this project will help accomplish that goal.
   
   Mr. Butler confirmed that there was no intentional slight, just that there was such a large gap between the second proposal and the expectations of the DDA on many items, in his experience he did not think there would be enough compromise in going back.
   
   Maxine Garner of 3182 Crestview Circle came forward and read a letter from the Historical Society concerning the preservation of the annex in the redevelopment plans.
   
   A motion was made by Council member Dugan, seconded by Council member Mundrick to approve the recommendation of the DDA to move forward with the selection of the Maschmeyer/Core group for the City block redevelopment.
   
   Those voting for: Council member Bomar, Mundrick, Dugan
   
   Those voting against: Council member Hall
   Motion carried.
6. MATTERS FROM COUNCIL/DEPT HEADS/CITY ATTORNEY
   1. ID AWARD - CONTINGENCY REQUEST – $19,380 – CONCRETE CONTAINMENT BERM
      [postponed]
      It was requested to postpone this item.
      
      A motion was made by Councilmember Mundrick, seconded by Councilmember Dugan, to postpone awarding the bid Monday November 12th.
      
      Those voting for: Council members Bomar, Mundrick, Dugan, and Hall
      Motion carried.
   2. CONTINGENCY REQUEST - $16,591.50 - FUNDING FOR TAX EQUITY STUDY
      The Mayor and Council considered City funding for its population share of a Tax Equity Study contracted for by GwMA for its member cities. The amount requested from each city is 75 cents per capita based on the 2000 Census of 22,122 in the City of Duluth (.75 X 22,122= $16,591.50). This is an unbudgeted item and funds would need to come from contingency.
      
      Councilmember Mundrick further explained that this study is to examine services that are provided by the City that the County also provides for unincorporated areas, such as Planning/Zoning, Police, etc. and to prevent double taxation for Duluth residents.
      
      A motion was made by Council member Mundrick, seconded by Council member Bomar to approve the contingency request as presented.
      
      Those voting for: Council members Bomar, Mundrick, Dugan and Hall.
      Motion carried.
7. EXECUTIVE SESSION – REAL ESTATE
   1. A motion was made by Council member Bomar, seconded by Council member Mundrick to adjourn to executive session to discuss real estate matter at 8:00 p.m.
      
      Those voting for: Council members Bomar, Mundrick, Dugan and Hall.
      Motion carried.
      
      After the discussion, a motion was made by Council member Hall, seconded by Council member Dugan to adjourn at 9:45 p.m.
      
      Those voting for: Council member Mundrick, Dugan and Hall
      Motion carried.
8. ADJOURNMENT
   1. A motion was made by Councilmember Hall, seconded by Councilmember Dugan, to adjourn at 9:45 p.m.