City Of McIntyre
June 3, 2013
Mayor Horne called meeting to order, led in prayer by Council member John Carswell.
Present were: Mayor Vicki Horne, Council members, Eugene Moore, Katherine Scott,
John Carswell, Rico Myrick, and Vickie Mixon, also present were Clerk Pamela Roberts, City Attorney David McRee and Chief Wayne Amerson.
Motion to approve minutes was made by Moore, with a correction to page 6, last paragraph, where it read “ You can consume alcohol should have read can’t, seconding the motion was Carswell, no opposition, motion carried.
Mayor Horne addressed the agenda welcoming Clyde Wright of Wright and Wright, who stated that he had brought copies of the 2012 audit to the clerk, and wanted to go over several items within the Audit. Wright asked council to look at the table of content, saying that first you would see the independent auditors report, saying that was the auditors report on the city’s financial statements, prepared by them, on what the city presented to them, noting that the basic financial states were made of three parts, which were the government wide statements, the fund financial statements, and the notes to the financial statements. The two government wide statements, statement of net assets and the statement of activities, saying that net assets is a balance sheet and the statement of activities is the revenue and expenses, and would spend a couple of minutes on those, and the required supplementary information that had to be there. Wright noted several items that were required to be reported.
Wright noted the auditors opinion, explaining that it contained what they audited, how they audited and opinion of what they found, saying that the statements present fairly all materials, and specs saying that it presents a clean opinion, and that is what the city wanted, and that the last several paragraphs talks about some of the information found in the back.
Wright had everyone go to page three, where you would see the first of the two government wide statements, that includes all of the funds on a full accrual basis of accounting with all the capital assets depreciated, saying that it was a balance sheet but the approach here is the total assets less liabilities, equals net assets and the purpose of the statement was to work down to one figure, that is the most important figure. Wright explained that current asset includes items that are in cash or expect to be turned into cash within a year. Wright explained the accrual of tax revenues, inventory, and supplies and receivable from other funds, were your assets, and non-current assets/non-depreciable would be items like land and primary construction in process. Depreciable assets would be the city’s buildings, equipment, cars and office equipment, etc, net of appreciation.
City Of McIntyre
June 3, 2013
Wright explained that the government had no long-term debt, taking total assets less the total liabilities gives the total net assets.
Wright continues giving his report, noting several categories that are included in the overall audit, going over figures in some, noting the number that falls out is the unrestricted number, noting the one number that is important is the $1,072, 548, that can be spent, not that it can be spent at one time, but that it was a good strong number for a government of the size of McIntyre, and the reasoning would be the franchise tax from Georgia Power.
Wright said that they wanted to know what kind of change for the accounting year was in our total net assets, basically to see what the government spent and did it have enough revenues to cover it. Wright went over expenditures through each department, so doing the math taking those expenditures less the revenues, shows a deficit number of $859,328, and that is the number that has to be covered by the general revenues and transfers of the government, which is primary taxes. Wright explained that the city covered all its cost including depreciation. Wright said that the city did a good job of managing and controlling its cost and using the revenues to pay the expenses.
Wright introduced page ten which was a cash flow statement for the water fund, which shows a net increase in the water fund of $17,633.
Wright asked council to turn to page 19, stating that note 5 on page 19 was a detail on the receivables in the statement of net asset, which talked about the tax revenues, local option sales tax, garbage fees receivables and other receivables, noting that page 20 gives you summary of changes.
Wright asked council to look on page 19, noting that SPLOST funds were important to governments, which showed a required schedule by the state, that shows the SPLOST funds and what projects the city had going, and the progress.
Mayor asked Wright what the overall standing was for the city. Wright said that it was in good shape and fortunate to have the Georgia Power franchise, which enables the city to do the capital projects, that other governments couldn’t do. Wright advised the city to continue to manage the money well, and that everything was good.
Roberts said that the old business presented the ordinance change to extend the operating hours for clubs, with no sales or consumption of alcohol after 12, noting that it was introduced at the last meeting, and be voted on at this meeting.
City Of McIntyre
June 3, 2013
Myrick made motion to extend the hours until 2:00am, and no sell of alcohol after 12, seconded by Scott, Moore said that he could not see this doing anything to make the city better and to extend the operating hours, he could see no gains. Mixon said that she didn’t think council should do it. Carswell said that he was trying to figure out something, what he needed to ask. Carswell said that in a previous meeting when this item was met on, noting that Wislon represented the club VIP, but that there were no other representatives from the other clubs, but that he thought it was stated, he believed by Mayor Horne that we needed the actual person who purchased the business license here at the meeting, to have some discussion with them. Carswell asked Wilson if he had the license in his name, Wilson said that he did not and clerk noted that it was in Jessica McCormick. Mayor asked if Wilson knew Ms. McCormick, saying that she was confused. Roberts said that she had met her. Mayor Horne asked how Wilson was involved, Wilson said that he was there to train the people, teach them how to pour and things about pouring. Mayor Horne addressed Mr. Juhan, stating that she had all the respect for him, but that she felt like this wasn’t his battle, that it should be Ms. McCormick’s and didn’t understand why Ms. McCormick wasn’t here, and didn’t understand how Mr. Wilson got involved and that it made her more confused about the situation. Mayor Horne said that she knew other clubs may or may not want it.
Wilson said that if he understood everything, that whoever had the license had to be at the council meetings, Mayor Horne said no, that Wison came to represent the club but why isn’t the actual ones that are suppose to be running it here to make a statement. Wilson said that she wasn’t running it. Mayor Horne asked who was running it. Wilson said that he trained the people, because he was a licensed bartender and that he came down to train. Scott asked Wilson if he had any interest in the club, Wilson said that he did now, but not at first. Mayor Horne asked if his name was on the contract, Wilson explained that there were three people on the contract. Juhan explained that he was there to support the change, because if the club owners didn’t have the time to make the money, then he would have an empty building. Mayor Horne said that she understood that, but wanted to know why McCormick has never been present or why she hasn’t spoken with Chief Amerson about the things expected of her, explaining that Amerson needed a working relationship with the owners, especially with the issues that were there in the past. Wison said that he had asked them to be here. Carswell said that the reason he brought it up, was because when Hill came in, to apply for his license, he had someone on there that couldn’t be on there and he had to go back and change, and his concern was that they had someone that couldn’t apply for one, put it in someone else’s name to get it. Mayor said that she had asked the Clerk to contact McRee about the situation. Clerk said that she had told McRee that someone had applied for the license, but the building was in someone else’s name, and that McRee had told her that it really didn’t matter. McRee said that it doesn’t matter if someone else rented the building and then sub rented it to
someone else, but whoever owns the business, should be on the license. Roberts
City of McIntyre
June 3, 2013
explained that there were three people on the contract with Mr. Alonzo to rent the building. Chief Amerson asked who bought the business license, clerk said that Jessica McCormick did, Chief Amerson asked who bought the Beer and Wine License, Clerk Roberts stated that Jessica McCormick did, Amerson said that her name was on both of the license, Roberts said yes. McRee asked why wasn’t their name on the license if they owned the business too. Roberts said that from what she understood that Ms. McCormick and her husband would have the business, that she had never met Mr. Wilson until he started coming to the meetings, that she had no idea he had any interest in it. McRee said that at anytime there is any change in the ownership, they have to come in and apply for a new license. Roberts said that she didn’t know of any change in ownership. McRee said that if Wilson has bought into the business, then there is. Roberts explained that he was on the original rental contract, and McRee said that he should have been on the original license. Mayor said that her concern was that they had Terrance come here, and because he was closed in Gordon and in accordance with our charter, the city couldn’t issue him a license, explaining to Wilson that what had happened to his club in Milledgeville and being on this one, she didn’t want Terrance threatening law suits because the city denied him, and if that is the same thing that happened at Wison’s club, that she didn’t want to run into that problem. Roberts explained that Ms. McCormick is on the business license, that she had filled out the application, and that she was on the lease agreement with Mr. Alonzo, and believed that McRee had told her that was legal. Carswell asked if there was a prior issue with a club Mr. Wilson owned. Mayor Horne said that he could explain it. Mayor Horne that her concern was the issuance, and told Mr. Wilson that the city’s charter read that if a club was closed for whatever reason in another location, then the city could not issue a license. Roberts clarified that it read revoked. McRee said that he was under the impression that Wilson had nothing more to do with the business other than acting as an consultant or a manager, and that tonight was the first time that he had heard that he had an ownership interest in the business. Roberts said that she had talked with McRee about who was on the lease, because she had contacted Mr. Alonzo after they had spoken to find out exactly who was on the lease, and then reported back to McRee who said that it didn’t matter as long Ms. McCormick’s name was on the license. McRee said that any number of people could lease the building, but doesn’t have to own the business. McRee said that tonight they are saying that Ms. McCormick, her husband and Wilson were owners of the business and should be on the license. Wilson said that he helped pay the rent and they paid him to train. McRee said that he was hearing different things, that now Wilson was acting as a consultant but a few minutes ago Wilson said that he owned part of the business. Wilson explained that he trains everyone down there, and helped pay the rent, but that his name was not on the license, and understood that Ms. McCormick had gotten the license and was asked who would be running the business. Roberts said that the only time she met Jessica McCormick was when she purchased the license. Roberts said that she believed it was Ms. McCormick’s husband who came in
City of McIntyre
June 3, 2013
with another gentleman who said that they would be running the business, but brought the application back in Ms. McCormicks name, making the comment that he and the other gentleman would be cooking and that Ms. McCormick would be running the bar. Roberts said that is what she brought to council, but Mayor Horne questioned Wilson’s ownership, and that she had contacted McRee and talked with an agent in Milledgeville, Chief Swicord concerning Wilson’s bar in Milledgeville, then spoke with McRee again, and then Mr. Alonzo, that she was never instructed to have Mr. McCormicks name nor Wilson’s name on the license because they would not be running the bar, only cooking, that Ms. McCormick would be running the bar. Carswell said that he was here the day that Ms. McCormick got the license, and stated that she would be the one running the business, and that Mr. Wilson’s name never came up. Wilson explained the situation with the club in Milledgeville, that he never had been citied, but that they had over exceeded the capacity, and in order for him to get the club back he would have to install a sprinkler system and that he was not about to spend $15,000 on the system so he shut the club down in May of 2013. Wilson said that he was told that Ms. McCormick would put the license in her name and that he would be there to train, saying that the club had not been opened for the last month and a half and that the 2 times that it had been opened Ms. McCormick was present, but wasn’t aware that Ms. McCormick had to be there, McRee said that she doesn’t have to be there, but that he was trying to get clarification, because there was a difference in owning a business, explaining that the person that owns the business puts money into the business and receives a share of the profits from the business, and that there was a difference in managing, consulting or working as an employee, noting that at one time Mr. Wilson says he is consulting then he’s an owner. Wilson said that legally what he does is train and help out with the lease until the others get themselves situated with the money. McRee said that if all he does is work, train and received a salary, Wilson said that he does more, McRee asked if he received part of the profits, Wilson said that he did not, not down here. Mayor Horne asked if he could be on the lease if he had violations, McRee said that if he is on the lease but doesn’t own the business, then yes he could be on the lease, but not own the business. Carswell said that he was still confused. McRee said that what had to be looked at was that this is for all the clubs, and to look at it from the standpoint of “Do I want this for all the clubs.” Carswell said that he was looking at this from this standpoint, that several months ago we had someone that we turned down for a license, and do we need to look further into this one. McRee said that wasn’t the issue on the table that if there were an issue with that, then Pam and Wayne would need to look into that. Carswell said that he was still unclear, and if he voted now it would be a no vote, but Mayor Horne wanted clarification from Carswell, Carswell said that he wanted to ask Mr. Wilson if he recalled a conversation that they had about the situation, and did Wilson remember telling him that he didn’t see a reason for this battle and that Wilson was going to call Myrick and tell him that he wasn’t going to pursue the issue, Mixon said that Wilson told her the same thing, and Moore said that Wilson told him the same thing. Carswell voted no. Voting for the
City of McIntyre
June 3, 2013
motion was Scott and Myrick, opposing the motion were Moore, Carswell, and Mixon, motion failed.
Moore said that there were things that needed to be taken care of, one of them were repairs on Davis-Cemetery Road, noting that there was about 75 foot of pavement that is breaking up and needs to be dug out and back filled with about a foot of crush and run compacted into it, and resurfaced. Moore said that another issue he would like to mention, right now was over in the building that is behind the new pump house, needing some shelves to get items off the floor and would like to install some shelves in the street department building, but that he didn’t have any prices yet but it was something that needed to be done.
Carswell asked if the city could use SPLOST funds to repair the lights on the basketball court, asking Moore if he had gotten an estimate from Bentley. Moore asked if the Clerk had gotten in touch with Moscow about the lights at the softball field, the clerk said that she had forward the location map, indicating what lights needed to be repaired. Carswell asked McRee about buying new lights. McRee said that you couldn’t use funds for repairs or replacement, only if you were putting in new poles with new connections.
Moore noted that the well project is finished, and the new building is finished and wanted everyone to go look at it. Moore said that we would no longer need the telephone line to transmit signal and needed to kill the power to the old building and gut the building getting out what we could salvage and take down the building.
Carswell said that some dirt needed to be placed at the office at the park, noting that the gas line run on the opposite side. Roberts advised calling for a locate if there was going to be any digging.
Mixon had no report.
McRee reported that after the city indicated interest in purchasing land, and per council instructions contacted Mr. Hubbard informing him that the city wanted to purchase on the terms that they proposed and sent him the copy of the plat and asked him to draw up a contract to bring to council, but that he hadn’t heard anything for several weeks so he contacted him today, and was told that Hubbard had everything and was still working on it and would get it back to him, hopefully have it at the next meeting.
McRee said that he had spoken with Pam last week and had been corresponding with Kathy Ross on the USDA loan, and some thing’s that needed to be worked on that would
City of McIntyre
June 3, 2013
be presented over the next couple of months this summer. McRee said that he believed based on what he was looking at, that we are on task with USDA explaining that there would be some things in the next couple of months coming off the punch list.
Amerson had no report.
Roberts explained to council that she had given them a copy of a summary from Kathy Ross of what items were discussed and needed to be done. Roberts said that one thing was the user rate and mandatory rate ordinance to be adopted by the city. Roberts said that she had forwarded the information to McRee and he would draw up the ordinance. Roberts said that another item was that the city would provide the RD with a current rate structure that would show positive cash flow. Roberts said that she had spoken with Ross today, and that the city was going to have to prove that the water department can carry itself without any help from anything. Roberts explained that she had forward a copy of the profit lose previous year comparison, noting that monies from the timber sales would not be there next year, and informing council that the sales from water for the last five months was $43,008.02, and that garbage fees are not considered part of the water fund, explaining that these monies are removed by audit and do not show water sales. Roberts explained that with the figures already posted for the water sales they were not enough to cover the expenditure, and that the city would have to consider another water rate increase. McRee advised talking to the engineering firm concerning rates. Discussion ensued about ways that the city could collect from commercial accounts. Clerk advised council that she would go over the information with Rindt-McDuff and look at avenues to collect water funds. Roberts said that she had gotten the information to the bank for the sewer construction account and needed signatures for the check card.
Mayor Horne asked councils advisement on using the Regional Commission to over see the sewer project.
Myrick asked about the city getting another water tank on Old McIntyre Road. Mayor asked about the cost. Roberts said that it wasn’t about the tank; it was about what the city was permitted to pull from the ground.
Mayor Horne asked Scott about the potential hires for the Administrative Assistant.
Mixon made motion to hire Cindy Bain, seconding the motion was Moore, voting for the motion was Mixon and Moore, opposing were Scott, Carswell and Myrick, motion failed.
Motion to hire Linda Sanders was made by Myrick, seconding the motion was Scott, voting for the motion were Myrick, Scott and Moore, opposing the motion were Carswell and Mixon, motion carried.
City of McIntyre
June 3, 2013
Wilson thanked council for their time and appreciated them listening to him, and that he would be getting with Amerson and McCormick.
Carswell made motion with no further business for adjournment, seconded by Mixon, no opposition, motion carried.