CITY OF BERKELEY LAKE

4040 BERKELEY LAKE RD.

BERKELEY LAKE, GA 30136-3016

PUBLIC HEARING

CITY COUNCIL MEETING

October 7, 1998

Those in attendance for the City Council meeting were as follows:

Councilmembers: Cohen, Cooke, Mohr, Rehm, Shutt

City Attorney - Carothers

Zoning Enforcement Officer - Kelly

Mayor - Schmidt

City Clerk - Zielazienski

CITIZENS - Approximately 11

Mayor Schmidt called the public hearing for review of the proposed budget to order at 7:32 p.m.

He reviewed that there has been many discussions during the last two or three months regarding the accounting aspects of the budget. Proposed budget is based on the tax digest assessed values for 1997. If a 6.5 mill rate is utilized, which is down one mill from the current rate of 7.5, that would bring in property taxes in the amount of $299,925. As has been pointed out, the Council next year is not necessarily bound by this 6.5 mill recommendation if proper time is allocated to change it.

Mayor Schmidt reviewed the budget (attached). He explained the amount collected for the life insurance tax comes from such taxes collected throughout the entire state. This money is then distributed to the cities, based on population.

The total income is anticipated to be $478,425, and the total expenditures (including the bond principal and interest payments for 1998) is $478,425. During the first read at the September meeting, several recommendations were made by Council at that time and other recommendations were received later during the month. These have been included in this budget.

Mayor Schmidt noted that road maintenance was raised to $35,000. That seems like a lot but when opening up the roadway, digging out the sub-bed and patching, $35,000 can go very quickly. The last time some repairs were done, $25,000 was spent "in the blink of an eye". For 1998 we have asked the state, through the LARP program, to resurface the streets in River Mansions.

Shutt commented that he is very confused about the budget so has prepared some questions (copy attached). A posting was published in the newspaper on September 16 which says the millage rate will be set for the 1997 taxes at tonight's meeting. The City Code indicates that taxes will be raised by the budgeting process. Do not know of any other way of setting the millage rate. Whatever taxes that are needed in the budget should be decided by the tax base.

The advertised notice informs that $346,067 (7.5 mill rate) is going to be collected for the tax billing going out on October 31, 1997. Shutt asked, "Are the taxes to be billed equal to the budgeted taxes needed and the authorized amount to be raised If not, why not Has a budget ever been presented for a public hearing with the amount of taxes to be billed at October 31, 1997

Mayor Schmidt responded "yes". Shutt disagreed. Is under the impression that there has never been a budget reflecting the 7.5 mill rate. Another millage rate was voted.

Shutt asked, "The 7.5 millls set in October 1996 has not been adjusted for the increase in tax base from that date. Forty Milllion Dollars was used, but we now have $46 plus milllion. Why have you not adjusted for this increase which results in an additional $46,000 of taxes to be raised "

Mayor Schmidt said that there was not going to be an adjustment at this time.

Shutt asked, "The 7.5 millage rate which was projected in July 1996. When the bonds were issued, the City got a much more favorable interest rate and in looking at the total payoff over 25 years, there is a decrease of approximately $500,000. The decrease is not evenly distributed over the years, but why have you not adjusted for this decrease ($182,000 of bond payments were budgeted for 1997, but only approximately $79,000 was paid.)"

Mayor Schmidt said that next years budget is adjusted to reflect that. This budget does not.

Shutt indicated he did not understand that the millage rate being set for 1997 relates to the budget. Is looking for a connection. Shouldn't the $299,925 be for the 1997 tax billing

Shutt read his comments as stated and attached herewith. Mayor Schmidt pointed out that Shutt and he have had many discussions on this but have reached no good consensus as to exactly how this budgeting process should be done. Is going on how the process was handled in the past. Commented that if he could be given direction on exactly how to do it any other way, would take that into consideration, but owing to the commitment that was made by himself and this Council last year, which was to reduce the taxes if it was found that the 7.5 millage rate could be decreased, is proposing to reduce the rate to 6.5 millls because 7.5 millls will not be needed next year.

If there is continued growth in the city and flat expenses, then the future Council may wish to drop the rate back further. That will be dependent on what happens then.

Sherwin Levinson (4624 Briar Hill Cove) - Asked if he was correct in his understanding that a 6.5 milll rate means a $650 tax bill for a $100,000 assessed value.

It was agreed that this was true. Rationalized that if there are approximately 500 houses in the City, the average set value must be somewhat less than the $100,000. What is the City's accumulated surplus at this point How much money do you have in the bank

Mayor Schmidt explained that there are two ways to look at the figures. There is $748,798.93 in the bank or there is $426.532.74 after all the assets and liabilities are taken out.

Shutt commented that the Council is looking at a consolidated statement here, which has the bond amounts in it. You are going to pay that over 25 years. The City has $700,000 plus.

Mayor Schmidt said the City may need some of that money to operate. We also have different opinions on whether our billing process and our accounting process are right, based on cash or accrual. It is not the intent of this city government to make vast sums and profits off our citizen's tax base. We will do what we need to do to cover the expenses and have a good fiduciary stewardship of our city. The city cannot operate in a deficit mode - we are operating in a 1998 proposed budget on a less than 10% over income figure. It should be noted that the county has reduced their milll rate by 3.5, so our residents overall tax bills are minuscule if any higher than they were two years ago.

Shutt said the accumulation of surplus has been going on since 1983. If this is done year after year, it does make a difference to the homeowners.

There being no further comments, the public hearing was brought to a close.

CITY COUNCIL MEETING

Mayor Schmidt called the City Council meeting to order at 8:00 p.m.

MINUTES & FINANCIAL STATEMENT:

Mayor Schmidt asked if the Council members had reviewed the minutes of September 2, 1997 and asked for comments.

Cooke referred to Page 7, 2nd paragraph, last line. Should say the budget process itself sets the millage rate.

Cohen motioned for approval of the minutes of September 2, 1997 with the correction stated. Cooke seconded, and motion was approved by unanimous vote.

Mayor Schmidt asked if there were any comments regarding the financial statement for September. Shutt inquired about the amount paid to the City Attorney - is the $7,793.94 a normal monthly amount Carothers explained that this was an accumulated billing for the months of July & August.

Cohen motioned to accept the financial statements for September. Mohr seconded. Vote for approval was unanimous.

ZEO REPORT:

Cohen asked what happened to require a quit claim deed from Jarvis Hill to the Alexanders. Kelly explained that one corner of the house extended over the 12½ feet lot requirement by 6". This problem was resolved by the quit claim deed of the needed ½ foot.

Mohr asked if there was any news on Item "G". Kelly said that Hank Staley of 633 Lakeshore Drive has not contacted Dean Lamb of Ryland Homes about a drainage problem he is having. Has put a "for sale" sign out and plans to move.

Cohen motioned for approval of the ZEO report for the month of September. Shutt seconded, and motioned passed by unanimous vote.

BUDGET/1998:

Cohen motioned to reaffirm that 7.5 millls is the millage rate for 1997. Mohr seconded. Cohen, Mohr, and Rehm voted "yea". Shutt voted "nay". Cooke abstained.

Cohen motioned to accept the 1998 budget as presented and to set the millage rate for 1998 at 6.5 millls. Cooke seconded. Cohen, Cooke, Mohr, and Rehm voted "yea". Shutt voted "nay".

ROADS/ROAD MAINTENANCE:

Cynthia L. Thompson, President; Janet Martin, Treasurer; and Harold Faille, a Board Representative of the Berkeley Woods homeowners association were present to ask that Council reconsider their request to eliminate the blockage for a right turn from Berkeley Woods onto North Berkeley Lake Road.

Mayor Schmidt reviewed that a formal letter informing of the Council's vote of denial at the August meeting was not sent as the request for reconsideration arrived before it was prepared.

The Berkeley Woods representatives presented a number of reasons they felt the Council should reconsider their decision (See attached correspondence and supporting material from Cynthia L. Thompson.).

There was some discussion. Mohr read from the minutes of 1989. Said this was done to force people to use Peachtree Industrial Boulevard and not drive around the lake. Since that time Peachtree Industrial has been widened to four lanes. Our own Miramont subdivision came on line after Berkeley Woods was built, and no turn restrictions were put on that development.

Shutt reviewed that during the period of time that Peachtree Industrial was being constructed, traffic on Berkeley Lake Road was terrible. Cohen agreed.

After some further discussion Cooke motioned to write a letter to support removal of the restriction. Rehm seconded, and motion passed by unanimous vote.

Kelly reported that he has been able to contact a paving company, Stewart Brothers, that would be glad to do the paving and asphalt curbing needing to be done right away on some city streets. Mayor Schmidt will go around and mark the areas where work is required.

Some discussion ensued regarding the dangerous ditch on Ridge Road. Mayor Schmidt informed that this has been contracted and will be done soon. The ditch is going to be built up with rock in such a manner as to leave a water course.

GREENSPACE BALLOT:

Sherwin Levinson presented the Greenspace Committee ballot recommendation to the City Council (attached). He explained that the committee feels this ballot is a reasonably concise way to get an opinion from the residents as to how the land should be used. Tried to word this as a ready to use ballot.

Mayor Schmidt informed that there is a town meeting to be held prior to the vote. A sample ballot and supporting material will be distributed before that meeting to give residents a chance to review the information - Forest Stewardship Program recommendations will be included.

Cohen commented that there is such a large choice on the ballot. Levinson explained that each choice is designed to stand alone. A citizen can mark one or more choices, but each will be counted.

Cohen wondered if it might be better to limit the number of choices to three (3). Levinson does not see a contradiction. Mohr agreed with Cohen that the choices should be limited to three (3). Levinson said he would not mind leaving off the last choice if Council thought it presented a contradiction.

After some further discussion, Cohen determined Council should go with this ballot as presented. Think the committee's recommendations should be accepted. It isn't a binding ballot so can always be relooked at if the vote is divided in such a way that nothing is decided.

There was a general consensus from Council that the ballot as presented would be used.

WALKING TRAIL GRANT:

Cooke motioned to extend the grant which had been obtained for the walking trail. Cohen seconded, and motion passed by unanimous vote.

NOTE: Council had previously voted not to use the grant money for the purchase of land for a walking trail to the river so needs time to look at other ways to use it. A one year extension was requested.

PARKING AT LAKESHORE DRIVE & LAKEVIEW LANE:

Mayor Schmidt informed that Susan and Chris Davis have requested to be on the agenda in reference to the established "no parking zone" at the above stated intersection. Information regarding the issue was distributed to Council by the Davis' and the Hardwicks' (770 Lakeview Lane).

Cohen motioned to table a vote on this issue till Council has more time to study it. There are a lot of things in the material that concern people outside the city. Would like to talk to some of them about their comments. Have no objection to hearing the presentations. Shutt seconded, and motion passed by unanimous vote.

Shutt commented that when looking at the statement from the Fire Chief, it says in the last paragraph that their only concern is vehicles parking on the streets/right-of-way at this intersection.

Susan Davis (786 Lakeshore Drive) said he indicated he would be concerned if cars were parked on the street. He was not talking about cars in the driveway or on the parking pad. Chris Davis asked how many professionals were called on when the decision to declare the area a "no parking" zone was made. No one remembered a number.

Some discussion ensued. Shutt reviewed that Council had a concern about parking directly on the corner. Mohr read from Section 39-402 of the City Code whereby it says, "In all Zoning Districts, no fence, wall, structure, shrubbery or other obstruction to vision between the heights of three feet and 15 feet, except utility poles, light or street sign standards or tree trunks shall be permitted within twenty feet of the intersection of the right-of-way liens of streets, roads and or highways." Cohen pointed out that this statement has been in the Code for a long time. The restrictions on parking pads went in sometime later.

PLAYGROUND:

Susan Hanson (3755 N. Berkeley Lake Rd.) presented that she desires to have installed some type of low fencing so people will not cross the planted sections of the play-ground area. Proposes to have the labor done by some of the citizens in the city. Also, there are five trees which need to be taken down due to pine beetle infestation. Would have the limbs mulched and have the mulch left at site. The large parts of the tree would be cut up and left on the back of the property rather that have the expense of hauling the wood off - pine beetle is not a problem when wood is laying on the ground. The price quoted is $850.

Mayor Schmidt authorized her to proceed.

ELECTION - NOVEMBER 4:

Cohen motioned to appoint Vasta Lucas as the election superintendent. Mohr seconded, and motion passed by unanimous vote. The City Attorney swore Ms. Lucas in.

Cohen motioned to appoint Marcie Zielazienski as the Absentee Ballot Clerk. Rehm seconded, and motion passed by unanimous vote.

ZONING:

Kathy Strickland (3805 N. Berkeley Lake Road) was present to request Council consider whether she might be allowed to use the cottage on her property as a facility for a Montessori School for approximately 15 children. Currently, that is about all the building would accommodate, but if the four car garage were remodeled, it would accommodate more.

Mayor Schmidt informed that she would need to contact George Sipe, Chairman of the Planning Commission. His group would need to hear the request before it can formally come before Council. That area is zoned for R-100 - single familly homes.

DRAINAGE CONTROL:

Mohr wonders when the Council might expect a reply from the City Engineer regarding his study of the drainage requirements by the county on the property in Peachtree Lake business park. Rehm has the same question - is quite disillusioned that Duckett has not responded after this amount of time. Would like Council to empower the Mayor to retain another engineer that knows what they are doing and will do it.

Mayor Schmidt said he has had a problem in getting hold of Duckett himself. Suggested another engineer could be brought in to look at the problem. Cohen reminded that prior to getting Earl Duckett the city used another engineering firm, and the minimum cost to them to do anything - this was 10 years ago - was $5,000 because their overhead was so high. The advantages that Duckett has is that he works for other cities, so he doesn't have the overhead or the expenses of a firm. Thinks finding a firm for the amount of money being suggested ($3,000) is going to be tough. Also the firm must specialize in that particular type of work. It is not a simple thing to get another engineering firm to come in.

Rehm suggested talking to Precision Planning, Inc., as this firm knows the city well. They have done a lot of work out here and seem to have a good knowledge of drainage related matters. They are an all purpose engineering/architectural firm. Feel they may be able to attack our problem with a good base of knowledge. Rehm feels time is of the essence now because work is being done there right now. Soon the building will be completed, and it will be nearly impossible to get anything done. Cohen suggested the firm of Moreland and Altobelli.

Some further discussion ensued with it being determined that Earl Duckett has had a long involvement in this so it would be best to pursue the issue with him. However, the search will be undertaken to find another engineer.

REZONING:

Carothers reviewed that the City Council has had a first read on a resolution to change the zoning on the tract at N. Berkeley Lake Road and Peachtree Industrial from R-100 to O & I.

This was to be considered for a second read at tonight's meeting. However, there was not time to get proper notification to the Plaintiffs regarding the matter, so asked that the Public Hearing be tabled until next month.

The property will be reposted, and a Public Hearing will be readvertised.

Cohen motioned to send a letter to the Plaintiff's in the lawsuit that the zoning on this property is going to be reconsidered for change. Rehm seconded, and motion passed by unanimous vote. Cohen suggested that the owner should be notified in the letter of the Public Hearing and the Planning Commission meeting.

Cohen motioned for a Public Hearing to be held from 7:00 to 7:30 p.m. on November 11. Cooke seconded, and motion passed by unanimous vote.

Cohen said he would like to have the City Attorney and an attorney from the other law firm involved in the case, Jenkins and Nelson, present at the Public Hearing.

MISCELLANEOUS:

Mayor Schmidt informed that he has ordered a new computer for the city. Got it at MicroCenter for $500 (does not include a monitor). Will be set up to work more efficiently with the maintenance of the web site.

Mohr requested that the Council members receive the minutes of the Planning Commission at least one week before the Council meetings.

Shutt inquired about the Short Term Work Program plan requirement for the city plan. Cohen explained that the plan doesn't say the city has to have a Short Term Work Program.

CITIZENS COMMENTS:

Kitty Dales (116 Lakeshore Drive) - Inquired if there wasn't some way to help the Davis' with their parking problem. Suggested maybe they could be given some sort of variance.

EXECUTIVE SESSION:

Cohen motioned to go into Executive Session to discuss pending litigation. Cooke seconded, and motion passed by unanimous vote.

After the Executive Session the meeting was called back to order. No citizens were present.

THERE BEING NO FURTHER BUSINESS, COHEN MOTIONED FOR ADJOURNMENT. MOHR SECONDED, AND VOTE WAS UNANIMOUS.

THE NEXT CITY COUNCIL MEETING WAS SCHEDULED FOR NOV. 11AT 7:30 P.M. THE REZONING PUBLIC HEARING IS SCHEDULED FOR 7:00 P.M.

Respectfully submitted,

Marcie E. Zielazienski

City Clerk/Treasurer