NOVEMBER 22, 2022, 2:00 p.m. -  CITY COUNCIL REGULAR MEETING

CITY GOVERNMENT

OFFICIAL PROCEEDINGS

OF THE MAYOR AND ALDERMEN

SAVANNAH, GEORGIA

The regular meeting of the City Council was held at 2:05 p.m. Following the roll call, Mayor Johnson asked the Beach High School Color Guard - Junior Reserve Officer Training Corps to enter Council Chambers for the Posting of the Colors.  Mayor Johnson recognized Alderwoman Lanier to introduce Reverend Marion N. Brooks Sr., St. Mark’s Baptist Church to offer the invocation. The Pledge of Allegiance was recited in unison.

PRESENT:

Mayor Van R. Johnson, II, Presiding

Alderwoman Kesha Gibson-Carter, At-Large, Post 1

Alderwoman Alicia Miller Blakely, At-Large, Post 2

Alderwoman Bernetta B. Lanier, District 1

Alderman Detric Leggett, District  2

Alderwoman Linda Wilder-Bryan, District 3

Alderman Nick Palumbo, District 4, Vice-Chairman

Alderwoman Dr. Estella Edwards Shabazz, District 5, Mayor Pro-Tem

Alderman Kurtis Purtee, District 6

ALSO, PRESENT:

City Manager Joseph A. Melder 

Chief of Staff Daphanie Williams

City Attorney Bates Lovett

Clerk of Council Mark Massey

Deputy Clerk of Council Margaret Fox 

Mayor Pro-Tem Dr. Shabazz moved to approve/adopt the agenda as amended thereby continuing/postponing agenda Item #5 to December 8, 2022, meeting as requested by the City Manager, seconded by Alderman Purtee.  The motion passed unanimously, 9-0-0.

Mayor Pro-Tem Dr. Shabazz moved to approve Items #2 and #3, seconded by Alderwoman Miller Blakely and Alderman Purtee.  The motion passed unanimously, 9-0-0.

Mayor Pro-Tem Dr. Shabazz moved to approve Items #2 and #3, seconded by Alderwoman Miller Blakely and Alderman Purtee.  The motion passed unanimously, 9-0-0.

Mayor Johnson declared the alcohol hearing open for Item #4.

No speaker(s).

a.  Mayor Pro-Tem Dr. Shabazz moved to close the alcohol hearing for Item #4, seconded by Alderman Palumbo.  The motion passed unanimously, 9-0-0.

b.  Alderman Leggett moved to approve Item #4, seconded by Alderwoman Wilder-Bryan.  The motion passed unanimously, 9-0-0.

CONTINUED/POSTPONED Item #5 to the December 8, 2022, Regular Council Meeting, during the adoption of the agenda for an administrative review and to re-engage the community.

Mayor Johnson declared the public hearing open for Item #6.

Speaker(s):

• Stanley Mosley – SUPPORTED pension increase for retirees (requested a workshop to be held)
• Ronald K. Butler – SUPPORTED pension increase for retirees (requested a workshop to be held)
• Mike Nichols – SUPPORTED pension increase for retirees
• Bob Eason – SUPPORTED pension increase for retirees
• Chuck Feagain – URGED reconsideration of City’ position with respect to the County regarding L.O.S.T. distribution percentages

Mayor Johnson moved to close the public hearing for Item #6, seconded by Alderwoman Wilder-Bryan and Alderman Palumbo.  The motion passed unanimously. 9-0-0.

Mayor Johnson requested City Manager Melder to schedule a pension workshop during the first quarter of 2023.  City Manager Melder agreed to the workshop and indicated there was a pension plan update during the budget retreat held on Monday, November 14, 2022.  Prior discussions of how the pension funds are invested were held and City Manager Melder indicated how the funds are invested is not the purview of City Council, but the purview of the Pension Board dictated in large part by Federal and State Law.  The scope of discussion for the pension workshop will be how the policy of the benefit is administered and not how the fund is invested.

Alderwoman Gibson-Carter asked City Manager Melder how the proposed pension workshop discussion relates to the request of retirees for a cost of living (COLA) increase.  City Manager Melder answered, the Savannah Pension Plan has an annual COLA (one percent) built into the formula.  Having been a volatile market, last year the pension fund suffered a $100 million less (a rebound is anticipated).  There is no concern about the health of the fund.  For this year, to extend a benefit would not be prudent.  Making sure the fund is solvent this year and future years is the main objective of the Pension Board.  City Manager Melder urged Council to be cautious not to overextend the pension fund and experience difficulty 10-15 years in the future.

Alderwoman Gibson-Carter and City Manager Melder discussed the retirees COLA benefits since 2000.  Alderwoman Gibson-Carter recommended forgoing the pension workshop and addressing the retirees request now by taking a more conservative approach to some of the legacy contractors or by spending money on items the City does not have or need.  She expressed her support to the retirees.

Alderman Palumbo thanked the City Manager for his approach to the pension fund.  The preservation of the pension fund is paramount to present/current and future retirees.  The City is outperforming its peers in the market, it is in the top 10% performance for a pension fund.  It's important Council realize the importance of the pension fund remaining solvent, successful, and healthy.  In deciding on increased benefits, Council must make sure it's prudent and thoughtful for the success of the plan for many years to come.

Alderwoman Miller Blakely expressed great concern over the $100 million investment loss.  City Manager Melder explained due to market volatility, the fund is down $100 million from last year.  Mr. Melder voiced concern for the retirees and stated once the fund is at 100% funded, he would recommend to Council benefits to match the stable fund.  He further discussed the current amount contributed by the City ($11.5 million) and employees ($7.5 million) into the pension plan.  In order to adjust the allocation or change the 1% COLA to an amount based on CPI would cost the City anywhere between $12.2 to $21 million.

After further questions concerning the $100 million investment loss by Alderwoman Miller Blakely, City Manager Melder discussed at length how the City's pension plan funds are invested and that now is not the time to increase benefits since the plan funds are at a downturn now (84% funded).  He further read the changes made to the plan in 2000 which included automatic annual increases and other increased benefits.  Alderwoman Miller Blakely stated she is looking forward to the pension workshop.

Alderman Palumbo clarified its not a $100 million loss, but a $100 million reduction in value.  Money cannot be taken out except for the benefit of the beneficiaries and is managed by the employees.

Alderwoman Lanier expressed concern for the retirees continually requesting a COLA and stated this is a timely issue that needs to be addressed.  She supports the pension workshop and recommended looking at the pension plans of neighboring municipalities.  Since this is the first reading to approve the 2023 Proposed Service Program and Budget, Alderwoman Lanier asked if staff will continue to make tweaks and changes prior to the second reading.  City Manager Melder indicated staff will take direction from Council on any changes and/or adjustments prior to the final reading.          

Alderwoman Wilder-Bryan stated she can only speak for herself and not Council.  The pension fund is about sustainability and workshops can be held, but we need money.  There were two opportunities to increase City revenue, but the same people keep voting against the increase (hotel/motel tax and TSPLOST).  That revenue could have created enterprise funds to assist the retirees.  Council should vote for opportunities that will sustain the pension fund.  More money is needed.

Mayor Pro-Tem Dr. Shabazz thanked Mr. Mosley for not giving up the fight for the pension fund and the other retirees.  She also thanked the other public comment speakers for their support of retiree benefits.  She is an advocate of the retirees receiving increased COLA benefits, but as the City Manager explained the City is not in a position at this time to give COLA adjustments to the retirees, due to the downturn of the market.  Mayor Pro-Tem Dr. Shabazz welcomes the pension workshop and any positive outcomes from the discussions.

Mayor Johnson again requested City Manager Melder to schedule a Pension 101 Workshop for the first quarter of 2023.  Mayor Johnson asked for the number of active pensioners.  City Manager Melder indicated as of 1/1/2022, there are 1,719 retired participants/beneficiaries, 207 inactive former participants, and 2,230 active participants.  The pensioners depend on the monthly income and it is the responsibility of the Council to assure the viability of the plan.                 

Mayor Johnson declared the zoning hearing open for Item #7.

Speaker(s):

• Marcus Lotson, MPC representative
• Katie Siplon – IN FAVOR/SUPPORTED (did not speak)

Alderwoman Wilder-Bryan requested the definition for cafe.  Mr. Lotson indicated a cafe is different from a restaurant.  The definition for cafe is not in the ordinance, but Mr. Lotson and staff have discussed adding the cafe definition.  Cafe has less impact and can be in a neighborhood.

Alderwoman Wilder-Bryan requested more intel on cafe versus restaurant from City Manager Melder.  Mr. Melder agreed to send Council the information. 

Alderwoman Wilder-Bryan moved to close the zoning hearing for Item #7, seconded by Alderwoman Lanier and Alderman Palumbo.  The motion passed, 7-0-2.  Mayor Pro-Tem Dr. Shabazz and Alderwoman Miller Blakely were not present for the vote.  See related agenda Item #10.

Mayor Johnson declared the zoning hearing open for Item #8.

Speaker(s):

• Marcus Lotson, MPC representative
• Melanie Wilson, MPC Executive Director

Alderwoman Lanier asked if there is a difference in true stucco from sight and if the cost is different.  MPC Executive Director Melanie Wilson indicated there is a sight difference and the difference in cost is substantial.

Alderwoman Gibson-Carter asked how this was presented to MPC.  Ms. Wilson indicated this topic became a consistent issue and she recommended staff work on the definition of true stucco.  

Alderman Palumbo moved to close the zoning hearing for Item #8, seconded by Mayor Pro-Tem Dr. Shabazz and Alderwoman Wilder-Bryan.  The motion passed unanimously, 9-0-0. See related agenda Item #11.

Mayor Johnson declared the zoning hearing open for Item #9.

Speaker(s):

• Marcus Lotson, MPC representative
• Josh Yellin, representing the applicant

Written comment(s):

• Josh Yellin - 24 letters - SUPPORT
• Josh Yellin - 71 signatures - SUPPORT

Alderman Leggett stated he conducted a due diligence meeting with the church and neighborhood association and both expressed no opposition.

Alderwoman Wilder-Bryan requested clarification on the two different addresses, and will there be two different alcohol licenses.  Mr. Lotson indicated today the petitioner is asking for a special use permit for two buildings with one kitchen for both locations.  The petitioner must return before Council to request an alcohol license.  Mr. Yellin described the petitioner's plan to combine the two buildings using one kitchen for both restaurants.

Alderwoman Miller Blakely asked if there is a parking plan for the business.  Mr. Yellin indicated the parking requirements for the business are approved.  Hours of operation are Monday - Wednesday, 8am-11pm, and Thursday - Saturday, 8am-1am, and Sunday, 10am-10pm.

Alderwoman Lanier asked if the special use permit was for the building or applicant.  The City Manager stated it applies to the applicant and these two addresses.  She also asked if we have done this before.  Mr. Lotson responded to the applicants approach. 

a.  Alderwoman Wilder-Bryan moved to close the zoning hearing for Item #9, seconded by Alderman Leggett and Alderman Purtee.  The motion passed unanimously, 9-0-0.

b.  Alderman Palumbo moved to approve Item #9 (Special Use Permit), seconded by Alderwoman Wilder-Bryan and Alderman Purtee.  The motion passed unanimously, 9-0-0.

Alderwoman Wilder-Bryan requested clarification regarding the times and conditions.  The MPC's recommendation regarding times stands.  The summary may be incorrect.

After the first reading was considered the second reading and a request that an ordinance be placed and passed upon its adoption, Alderman Palumbo moved to approve Item #10, seconded by Alderman Leggett, Alderwoman Wilder-Bryan and Alderman Purtee.  The motion passed, 7-0-2.  Mayor Pro-Tem Dr. Shabazz and Alderwoman Miller Blakely were not present for the vote.  

After the first reading was considered the second reading and a request that an ordinance be placed and passed upon its adoption, Alderman Palumbo moved to approve Item #10, seconded by Mayor Pro-Tem Dr. Shabazz, Alderman Leggett and Alderman Purtee.  The motion passed unanimously, 9-0-0.

HEARD FOR FIRST READING ONLY.

Mayor Johnson recognized the budget team and staff for their efforts in preparing the FY2023 budget.

HEARD FOR FIRST READING ONLY.

Mayor Pro-Tem Dr. Shabazz moved to approve Item #14, seconded by Alderwoman Lanier and Alderman Palumbo.  The motion passed unanimously, 9-0-0.

Mayor Johnson offered an explanation of the primary and secondary distributors for the system.  This is a new system used by the City and if the system does not provide lower prices and better value then the City will pursue other options.

Alderwoman Gibson-Carter asked City Manager Melder about the interest in lowering cost at the Civic Center as opposed to the Arena.  The City Manager explained, there is City staff at the Civic Center.  The City would like to contain cost of concessions at the Civic Center by managing concession items (alcohol and beverages).  Because of the many parts involved in the operation of the Arena and Civic Center, Alderwoman Gibson-Carter stated she would not support this Item.

Alderwoman Wilder-Bryan asked for the number of events at the Civic Center and recommended having more events at the Civic Center.  City Manager Melder discussed the meeting rooms, the ballroom, The Johnny Mercer Theater, and The MLK Arena.  The MLK Arena is beyond its use due to needed expensive repairs, but the City has entered into a use agreement with the Ghost Pirates for the MLK Arena for their practice sessions.  The agreement shifts responsibility of repairs to the Ghost Pirates and mandates the Ghost Pirates perform a certain number of events during term of the agreement.  Alderwoman Wilder-Bryan expressed that her main concern is for The Johnny Mercer Theater and keeping the theater sustainable by hosting more events.

Mayor Johnson explained the City has an active agreement with OVG to manage The Johnny Mercer Theater.  His concern is OVG managing the entire Civic Center.  This agreement gives the City the opportunity to maintain the concessions by City staff.  If OVG manages the concessions, the cost is increased drastically.  Mayor Johnson explained to Alderwoman Wilder-Bryan that OVG manages the booking of events and this agreement is only for the concessions.

Alderwoman Miller Blakely asked City Manager Melder how much the Ghost Pirates are paying for the use of the MLK Arena ($6,000.00 per month).  This agreement is for alcohol and beverages at the concession stands.  OVG manages securing events at The Johnny Mercer Theater, but the City staff manages the concessions.  Alderwoman Miller Blakely requested OVG to secure more African American performers at The Johnny Mercer Theater.  She also expressed that $6,000.00 per month is much too low for the temporary use agreement for the Ghost Pirates, it should be at least $10,000.00 per month. 

Alderwoman Wilder-Bryan asked City Manager Melder the monthly cost of electric (utilities) at the Civic Center.  City Manager Melder will send the information to Council along with other associated costs.  Later during the discussion, City Manager Melder explained the Ghost Pirates pay 65% of the electric/utilities at the Civic Center, and residents will be able to use the MLK Arena for ice skating and ice hockey events.

Alderman Leggett expressed concern when OVG schedules performances at The Johnny Mercer Theater, the performers are driven to The Enmarket Arena.  He is disappointed in the management of OVG and how they treat Council and staff.  He asked how the temporary use agreement with the Ghost Pirates developed, since it was not brought before Council.  The City Manager explained the Ghost Pirates temporary use agreement was executed by him as City Manager having the authority.

Alderwoman Lanier asked when OVG's Enmarket Arena contract expires.  City Manager Melder answered, it is a ten year contract (5 years, with a 5 year renewal option).  The option will come before Council, and OVG and Council must agree.  With the original OVG contract the City missed the opportunity for a community benefits agreement, Alderwoman Lanier recommended creating a community benefits agreement when the next Enmarket Arena contract is established.

Alderwoman Gibson-Carter asked if the tailgating at the Civic Center for Enmarket Arena events will continue.  City Manager Melder explained, currently residents take the Trolley from the Civic Center to the Enmarket Arena for events.  Alderwoman Gibson-Carter asked if the distributors in Item #15 will provide alcohol to residents at Civic Center events, prior to residents going to the Enmarket Arena by Trolley.  City Manager Melder answered, only if staff coordinates the opportunity with the concessions managed at the Civic Center by City staff.  Alderwoman Gibson-Carter asked if the City has received any payment on the annual contractual agreement (no).

Mayor Johnson requested City Manager Melder to send the projected pricing for ice skating.  City Manager Melder agreed.                       

Alderman Purtee moved to approve Item #15, seconded by Alderman Palumbo.  The motion passed, 7-2-0.  Alderwoman Gibson-Carter and Alderwoman Miller Blakely voted no.

Alderwoman Lanier stated the work has been done, so the City is obligated to pay the vendor.  She expressed concern for the change orders.  The chosen contractor missed achieving the  estimated costs for the total contract.  It is possible that the second bid would have covered the change order cost of the original cost.  This is an option staff should explore.

Alderwoman Gibson-Carter agreed with Alderwoman Lanier on vendors submitting change orders.  She inquired who was the vendor (Apac Atlantic. formerly Preferred Materials Inc.).  Alderwoman Gibson-Carter stated the City has a fiscal policy that acknowledges initial approval before purchases and/or modifications.  City Manager Melder explained this was a final close-out.  The work is completed. A final cost will be determined and brought before Council at the first opportunity.  This situation is similar to the final close-out of the Ford Adams Complex.  Alderwoman Gibson-Carter requested further discussions with City Manager Melder on Item #16, and his decision to pay the vendor prior to Council's approval.  She asked how much general funds were used to pay the vendor and if a portion was paid by the initial Arena SPLOST fund.  City Manager Melder stated initial Arena SPLOST funds for infrastructure and the Gwinnett Street project were used.  Engineering firm Hussey Gay Bell is contributing $250,000.00 toward the project.  Mr. Melder will provide the total breakdown to Council on the total cost for the project.  Alderwoman Gibson-Carter expressed her concern that the change order was paid before it came before Council.

Alderwoman Lanier asked if there were any engineering firms representing the City who reviewed the specifications of the project before awarding the vendor.  City Manager Melder discussed the bridge and the engineering pitfalls associated with the project once the workers were on site.  This particular project's change order was a little different than the usual change orders.

Alderman Palumbo asked City Manager Melder if the capital projects team has built in buffers and if so why (usually because of construction time, labor and material).  After March 2020 (COVID), cost, delay of materials, and labor costs changed significantly.  Alderman Palumbo further stated that if the change order did not get approved, the bridge would not be in use now.

Mayor Johnson stated Council should have been notified before paying for the modifications.  This would have alleviated any thoughts of sinister behavior and/or actions during the project from residents or Council.

Alderwoman Wilder-Bryan requested a statement from the City Manager be put in the record, "the original change order was $833,235.60, the change order decreased to $758,000.00.  Additionally, the engineer on the project agreed to contribute $270,000.00, and the cost would be more if not negotiated with contractors".  The total cost to the City is just under $500,000.00.    

Alderwoman Lanier moved to approve Item #16, seconded by Mayor Pro-Tem Dr. Shabazz.  The motion passed, 7-2-0.  Alderwoman Gibson-Carter and Alderwoman Miller Blakely voted no.

Alderwoman Gibson-Carter stated with Items #17, #18 and #20 the City now has 428 new home sites.  City Manager Melder indicated the 428 homes are not building permits but water and sewer agreements (Items #17 and #18) and a plat for a major subdivision (Item #20).  Alderwoman Gibson-Carter indicated the developers would eventually apply for 428 building permits for the new home sites.  Will the 428 home sites be developed previous to the City impact fee ordinance (that would be pretty quick, the impact fee only applies to building permits after Council approves the impact fee ordinance.)  Alderwoman Gibson-Carter stated the City continues to approve single family and multifamily developments, prior to adopting a community benefit agreement and the community having infrastructure support, police, fire and recreational facilities.  She is reluctant to approve of such developments.

Alderwoman Wilder-Bryan stated she wanted residents to know the City would receive $582,000.00 from water and sewer connection fees for Item #17.  Alderwoman Gibson-Carter indicated Item #17 is not an impact fee. 

Mayor Pro-Tem Dr. Shabazz moved to approve Items #17 and #18, seconded by Alderwoman Lanier and Alderman Palumbo.  The motion passed, 8-1-0.  Alderwoman Gibson-Carter voted no.

Alderwoman Gibson-Carter stated with Items #17, #18 and #20 the City now has 428 new home sites.  City Manager Melder indicated the 428 homes are not building permits but water and sewer agreements (Items #17 and #18) and a plat for a major subdivision (Item #20).  Alderwoman Gibson-Carter indicated the developers would eventually apply for 428 building permits for the new home sites.  Will the 428 home sites be developed previous to the City impact fee ordinance (that would be pretty quick, the impact fee only applies to building permits after Council approves the impact fee ordinance.)  Alderwoman Gibson-Carter stated the City continues to approve single family and multifamily developments, prior to adopting a community benefit agreement and the community having infrastructure support, police, fire and recreational facilities.  She is reluctant to approve of such developments.

Alderwoman Wilder-Bryan stated she wanted residents to know the City would receive $582,000.00 from water and sewer connection fees for Item #17.  Alderwoman Gibson-Carter indicated Item #17 is not an impact fee. 

Mayor Pro-Tem Dr. Shabazz moved to approve Items #17 and #18, seconded by Alderwoman Lanier and Alderman Palumbo.  The motion passed, 8-1-0.  Alderwoman Gibson-Carter voted no.

Mayor Pro-Tem Dr. Shabazz indicated Items #17, #18 and #19 are all water and sewer agreements in District 5, and the City will receive tapping fees for all three items.

Mayor Pro-Tem Dr. Shabazz moved to approve Item #19, seconded by Alderwoman Wilder-Bryan and Alderman Leggett.  The motion passed, 8-1-0.  Alderwoman Gibson-Carter voted no.

Mayor Pro-Tem Dr. Shabazz moved to approve Item #20, seconded by Alderman Palumbo.  The motion passed, 8-1-0.  Alderwoman Gibson-Carter voted no.

ANNOUNCEMENTS:

Mayor Johnson announced he and City Manager Melder visited the Montgomery, AL Hyundai Plant, which is half the size of the proposed Hyundai Plant for Bryan County.  It is a massive plant and only half the size of the plant coming to Bryan County:  1,400 cars a day are completed, every 56 seconds a new car comes off the lot.  The Savannah area will need housing on all levels, infrastructure, roads, schools, etc. to be ready for the Hyundai Plant.

City Manager Melder announced the swearing-in of Fire Chief Elzie Kitchen on Wednesday, November 23, 2022, at 12:00 noon in Council Chambers.  All are invited to attend.

Alderman Purtee announced Wednesday, November 23, 2022, at 4:00 p.m. at the Winsor Forest Community Center, State Representative Gillard along with others will giveaway 1,500 Turkeys.

Mayor Pro-Tem Dr. Shabazz thanked the members and Apostle Willie B. Jefferson of The Greater New Owens Temple at 4011 Rockdale Street in the Liberty City area for putting together beautiful Thanksgiving Day Dinner Boxes for needy residents of Liberty City and Tatemville.

Alderwoman Wilder-Bryan announced Basketball Night with the ONES, New Generations, Savannah Youth City, November 26, 2022, from 7:00pm - 11:00pm.  There will be bicycle giveaways, bus cards, and gift cards.  There will be a second annual Trolley Ride in the Districts with Christmas Caroling.

Alderman Palumbo announced Savannah Youth City Inc. will partner with Council on the second annual Trolley Ride.

Alderwoman Miller Blakely announced the Joe Green Classic fundraiser is being held at Beach High School this evening to support the City athletic departments.  All support is needed.  She wished all residents, staff and Council a Happy and Blessed Thanksgiving.

Mayor Johnson announced Broughton Street will finally be opened Friday, November 25, 2022, the City will celebrate by holding the Tree Lighting ceremony at Bull & Broughton Streets (Compass Rose) at 5:30 p.m.  He thanked Team Savannah and wished everyone a Blessed & Safe Thanksgiving.

Alderwoman Wilder-Bryan announced Special Events, Film & Tourism Director Susan Broker and staff will be extending Christmas lighting/decorations to other Districts.  Mayor Johnson indicated there will be 600 Christmas Bows throughout the entire City.

Mayor Johnson adjourned the Regular Meeting at 4:35 p.m.

A video recording of the Regular Meeting can be found by copying and inserting the link below in your url:

https://savannahgovtv.viebit.com/player.php?hash=y70RFBpnCOqD

Mark Massey, Clerk of Council

Date Minutes Approved:     December 8, 2022 

Signature:   MM