CITY OF BEAUFORT 1911 BOUNDARY STREET BEAUFORT MUNICIPAL COMPLEX BEAUFORT, SOUTH CAROLINA 29902 (843) 525-7070 CITY COUNCIL REGULAR MEETING AGENDA October 24, 2017 NOTE: IF YOU HAVE SPECIAL NEEDS DUE TO A PHYSICAL CHALLENGE, PLEASE CALL IVETTE BURGESS 525-7070 FOR ADDITIONAL INFORMATION

STATEMENT OF MEDIA NOTIFICATION

"In accordance with South Carolina Code of Laws, 1976, Section 30-4-80(d), as amended, all local media was duly notified of the time, date, place and agenda of this meeting."

REGULAR MEETING - Council Chambers, 2nd Floor - 7:00 PM I. CALL TO ORDER A. Billy Keyserling, Mayor II. INVOCATION AND PLEDGE OF ALLEGIANCE A. Mike McFee, Mayor Pro Tem III. PROCLAMATIONS/COMMENDATIONS/RECOGNITIONS A. Proclamation Proclaiming Red Ribbon Week - October 23-31, 2017 B. Character Education Proclamation - Cailen Campbell, Coosa Elementary IV. PUBLIC COMMENT V. PUBLIC HEARING A. Rezoning 8 Parcels of Property Off Roseida Road T3-S VI. MINUTES A. Worksession and Regular Meetings September 26, 2017 B. Special Meeting - Mossy Oaks Drainage September 28, 2017 C. Worksession and Regular Meetings October 10, 2017 VII. OLD BUSINESS VIII.NEW BUSINESS A. Authorization to allow City Manager to enter in a Memorandum of Understanding (MOU) with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for Violent Crimes Task Force B. Authorization to allow City Manager to enter into Contractual Agreement with the Town of Yemassee for Bond Court Services C. Approval of the FY 2018 TDAC Recommendation on ATAX Grants IX. REPORTS City Manager's Report Mayor Report Reports by Council Members X. ADJOURN CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/19/2017 FROM: Parris Island Young Marines AGENDA ITEM Proclamation Proclaiming Red Ribbon Week - October 23-31, 2017 TITLE: MEETING 10/24/2017 DATE: DEPARTMENT: City Clerk

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ATTACHMENTS: Description Type Upload Date Proclamation Backup Material 10/19/2017

P R O C L A M A T I O N

WHEREAS, communities across America have been plagued by the numerous problems associated with illicit drug use and those that traffic them; and

WHEREAS, there is hope in winning the war on drugs, and that hope lies in education and drug demand reduction, coupled with the hard work and determination of organizations such as the Parris Island Young Marines of the Marine Corps League to foster a healthy, drug-free lifestyle; and

WHEREAS, governments and community leaders know that citizens support is one of the most effective tools in the effort to reduce the use of illicit drugs in our communities; and

WHEREAS, the Red Ribbon has been chosen as a symbol commemorating the work of Enrique “Kiki” Camarena, a Drug Enforcement Administration agent who was murdered in the line of duty, and represents that one person can make a difference; and

WHEREAS, the Red Ribbon Campaign was established by Congress in 1988 to encourage a drug-free lifestyle and involvement in drug prevention and reduction efforts; and

WHEREAS, October 23-31 has been designated National Red Ribbon Week, which encourages Americans to wear a red ribbon to show their support for a drug-free environment.

NOW, THEREFORE, the City Council of the City of Beaufort, South Carolina, hereby proclaims, October 23-31, 2017 as

RED RIBBON WEEK

Beaufort City Council encourages all citizens to join us in this special observance.

IN WITNESS THEREOF, I hereunto set my hand and caused the Seal of the City of Beaufort to be affixed this 24th day of October 2017

______BILLY KEYSERLING, MAYOR

ATTEST: ______IVETTE BURGESS, CITY CLERK

CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/20/2017 FROM: AGENDA ITEM Character Education Proclamation - Cailen Campbell, Coosa Elementary TITLE: MEETING 10/24/2017 DATE: DEPARTMENT: City Clerk

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WHEREAS, the character education movement reinforces the social, emotional and ethical development of students; and

WHEREAS, schools, school districts and states are working to instill important core ethical and performance values including caring, honesty, diligence, fairness, fortitude, responsibility, and respect for self and others; and

WHEREAS, character education provides long-term solutions to moral, ethical and academic issues that are of growing concern in our society and our schools; and

WHEREAS, character education teaches students how to be their best selves and how to do their best work; and

WHEREAS, the Eleven Principles of Effective Character Education include: Promoting core ethical and performance values; Teaching students to understand, care about and act upon these core ethical and performance values; Encompassing all aspects of the school culture; Fostering a caring school community; Providing opportunities for moral action; Supporting academic achievement; Developing intrinsic motivation; Including whole-staff involvement; Requiring positive leadership of staff and students; Involving parents and community members; and assess results and strives to improve; and

WHEREAS, the Beaufort County School District’s Character Education program was formed to support parents’ efforts in developing good character in their children; and

WHEREAS, the purpose of the Character Education program is to integrate good character traits into the total school environment, as well as into the community; and

WHEREAS, each school’s counselor identified a list of character words and definitions deemed important regardless of a person’s political leanings, race, gender or religious convictions; and

WHEREAS, the words are friendship, kindness, acceptance, courage, tolerance, respect, gratitude, compassion, citizenship, perseverance, honesty, integrity, self-control, forgiveness responsibility and cooperation; and

WHEREAS, Cailen Campbell was selected as the winner by Coosa Elementary School as the student of the month.

NOW, THEREFORE, the City Council of the City of Beaufort, South Carolina, hereby proclaims September 2017 as

CAILEN CAMPBELL AS COOSA ELEMENTARY SCHOOL STUDENT OF THE MONTH

The City of Beaufort thereby pronounces Acceptance as the word for the month of September and applauds Cailen Campbell, the Beaufort County School District, and Coosa Elementary School for their work and specifically honors Cailen Campbell as Coosa Elementary School’s Student of the Month.

IN WITNESS THEREOF, I hereunto set my hand and caused the Seal of the City of Beaufort to be affixed this 24th day of October 2017.

______BILLY KEYSERLING, MAYOR

ATTEST:

______IVETTE BURGESS, CITY CLERK CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/19/2017 FROM: Libby Anderson AGENDA ITEM Rezoning 8 Parcels of Property Off Roseida Road T3-S TITLE: MEETING 10/24/2017 DATE: DEPARTMENT: Planning

BACKGROUND INFORMATION:

The City has received an application to zone eight parcels of property located north of Roseida Road on Port Royal Island. The properties are identified as R100 Tax Map 25A, Parcels 22, 25, 26, 32, 33, 34, 35, and 273. The properties as located at 1110 Hodge Drive, 1108 Hodge Drive, 2 Fort Sumter Drive, 8 Fort Sumter Drive, 12 Fort Sumter Drive, and 16 Fort Sumter Drive. Map 25A, Parcel 32 is zoned “Rural” (T2R) under the County’s Community Development Code. The other seven lots are zoned “Rural Neighborhood” (T2RN). This is a rezoning request as a result of petition for annexation. A staff report on the proposed rezoning is attached. A public hearing on the proposed rezoning is scheduled for the October 24 City Council meeting. This hearing was advertised in the October 10 edition of The Beaufort Gazette.

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CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/19/2017 FROM: AGENDA ITEM Worksession and Regular Meetings September 26, 2017 TITLE: MEETING 10/24/2017 DATE: DEPARTMENT: City Clerk

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ATTACHMENTS: Description Type Upload Date Minutes Backup Material 10/19/2017 A work session of the Beaufort City Council was held on September 26, 2017 at 5:00 p.m. in the Beaufort Municipal Complex, 1901 Boundary Street. In attendance were Mayor Billy Keyserling, Councilwoman Nan Sutton, Councilmen Mike McFee, Phil Cromer, and Stephen Murray, and Bill Prokop, city manager.

In accordance with the South Carolina Code of Laws, 1976, Section 30-4-80(d) as amended, all local media were duly notified of the time, date, place, and agenda of this meeting.

CALL TO ORDER Mayor Keyserling called the work session to order at 5:00 p.m.

PROPOSED BEAUFORT COUNTY PLASTIC BAG BAN ORDINANCE Rikki Parker, project manager with the Coastal Conservation League, discussed where the organization has been working on this project. Beaufort County has begun the process of considering a plastic bag ban, such the ones Folly Beach and Isle of Palms have. Public feedback has been very good, she said.

Plastic bags are “a real problem” in Beaufort County, mostly because “we are a coastal community,” Ms. Parker said. A half-million single-use bags were reclaimed one 3-hour beach cleanup event, she said. She described the effect on sea birds, for which they can be a “death sentence,” and on sea turtles, which eat them because they think the bags are jellyfish, but they can’t spit them up, so the bags kill them or make them float to the surface, where they are helpless prey or can be struck by boats.

Another problem with plastic bags is that they break down into micro-plastics, which are then ingested by marine life and can have a negative impact on reproduction and fisheries, Ms. Parker said. Also micro-plastics are accumulating in human bodies, and the effect of this is still being researched. Micro-plastics can suck up oil and PCBs, and when fish and other seafood ingest micro-plastics, oil and PCBs get into humans’ bodies when they consume seafood, she said.

Plastic bags also have a negative impact on stormwater systems, Ms. Parker said, and in communities considering bag bans, those in charge of stormwater management often favor the ban. In San Jose, California, a plastic bag ban reduced the number of them found in the stormwater system by 89%, she said.

Ms. Parker said 20 million Americans live in jurisdictions with a bag ban or fee; Beaufort County is considering a ban, not a fee. These communities are predominantly on the east and west coast. Folly Beach is seeing less beach trash, she said, as is Isle of Palms. Both communities found the transition to the ban to be “seamless.” Two businesses on Folly Beach needed an extension to use the remainder of their plastic bags, Ms. Parker said. In Beaufort County, 71% of 700 respondents to a Chamber of Commerce poll believed a ban should go into effect on Hilton Head Island, she said, which is consistent

Council work & regular session minutes September 26, 2017 Page 1 with what she has found throughout the county.

If plastic bags are “the fifth most common human litter found in waterways,” Councilman Murray asked, what are numbers “one through four?” Ms. Parker said cigarette butts and bottle caps are “by far the top two,” then bottles and food wrappers are numbers three and four, which are all “neck and neck” in the ranking with plastic bags. Bottle caps, bottles, and food wrappers “are all recyclable,” she said, while single- use plastic bags are not easily recycled – “most single-stream recycling facilities don’t take them because they clog up the machinery” – so “we’ve chosen to focus on this specific type of litter,” she said.

Hilton Head’s Planning Commission has heard a presentation about a bag ban, Ms. Parker told Councilman Murray, and assigned the drafting of an ordinance to a subcommittee, but because many of Hilton Head’s “financial resources are tied up in Hurricane Matthew recovery,” the town “put that process on pause” in the hope that Beaufort County “would adopt something” that “they could sign on to.”

Ms. Parker said the draft ordinance that city council has been given is the one that Coastal Conservation League worked on, and it is “identical to the Folly Beach ordinance,” which has gone into effect “so seamlessly.” Folly Beach also has “a beach ban” on plastic bags, which means they can’t be brought to the beach, no matter where they come from, which is something Coastal Conservation League is in favor of, especially in a “tourism-based economy.” Councilman Cromer asked how that would be enforced at Hunting Island, for example; Ms. Parker said park rangers at Hunting Island could enforce a beach ban, or possibly DNR (Department of Natural Resources), as well as “citizen reporting.” Folly Beach and Isle of Palms have not had “any additional enforcement costs,” she said, because of complete initial compliance, and then follow- up with citizen reporting. Hilton Head could use its beach patrol to enforce a beach ban, Ms. Parker said.

Councilman Murray asked about feedback from county council after the public comment period at its meeting the night before. Ms. Parker said there was “not much” from council; the time was mostly to get input from the public.

Mayor Keyserling said the Beaufort County mayors had said they would like to look at a bag ban, and they thought it would probably be best to have a countywide ordinance. At county council’s Natural Resources committee, the idea “got bounced around a little bit,” he said, and they “wanted to send it to the Planning committee,” so on behalf of the mayors, he suggested doing a first reading, “if only in title,” to “put something in front of all of us.” Today, Mayor Keyserling said, he’d received an email saying that “they want to send it to the Northern Regional Plan Implementation Committee.” If Beaufort County’s municipalities “are as serious as Hilton Head” about a bag ban, they “may have to be a little more proactive, and not wait for the county,” he said.

Council work & regular session minutes September 26, 2017 Page 2 Councilman Murray said the proposal “came out of Natural Resources with an affirmative vote,” then went to county council. Ms. Parker said county council “sent it back to Natural Resources for two hearings, one north and one south of the Broad.”

Councilman Murray said he thinks they should be “thoughtful about the ordinance,” and that it should be countywide “to have the most impact,” but “time is of the essence.” He said, “Our delegation was able to hold off the General Assembly from banning the ban last session,” he said, but the Municipal Association suspects that when the matter comes up in January 2018, “the lobbyists will be successful in banning the ban.”

Mayor Keyserling asked the county attorney, Chris Inglese, if he thought county council was “embracing this.” Mr. Inglese said he thinks there is “a lot of interest.” County council wants to hear from municipalities; there is agreement that the ordinance should be countywide, he said. The county feels it has not gotten a clear message from all of the municipalities, except Hilton Head, Mr. Inglese said. Beaufort can make its feelings known, and in Bluffton, there is a meeting on Thursday. He said the next county council public hearing is October 5.

Councilman Cromer said Folly Beach and Isle of Palms “have very little commercial,” unlike municipalities like Beaufort. He asked if Walmart and other retailers in Beaufort were “on board” with a bag ban. Ms. Parker said she has spoken to a number of store managers, and if a bag ban is what their customers want, they want to do it. She thinks they will not come out publicly in favor of or opposed to it. In Folly Beach and Isle of Palms, those retailers who were early adopters of the bag ban were “given credit for that commitment,” and she’d like to do that in Beaufort County, too.

Councilman McFee said the Outer Banks of North Carolina repealed their bag ban. He asked about “the feedback on that.” Ms. Parker said the Outer Banks’ Chamber of Commerce supported the ban and wanted it to stay in place. “The big difference is that that was passed at the state house,” which “implemented a ban for barrier islands,” she said. They found there were more single-use plastic bags on the beach because “they didn’t include a beach ban,” so tourists were bringing the bags with them and “littering the beaches.” A beach ban and enforcement would have given the bag ban more teeth, Ms. Parker said.

Mayor Keyserling said his informal survey was going to convenience stores, where they asked him whether or not he wanted a bag, and to Piggly Wiggly, where he asked for a paper bag, and two cashiers told him they preferred using those.

Jason Ruhf said they have been “running education pieces” on plastic bags in the Chamber of Commerce newsletter. “We are developing our position,” he said, “but . . . there are lots of different forms that litter can take.” The issue will be discussed at Thursday’s board meeting, Mr. Ruhf said.

Council work & regular session minutes September 26, 2017 Page 3 Ms. Parker said retail associations and the American Progressive Bag Alliance “are the main opponents of a ban on bags,” and they “frequently frame this as a litter control issue.” That’s not what Coastal Conservation League is considering foremost; “our main concern is with the wildlife, with the micro-plastics, and with the problems [plastic bags] cause with recycling,” she said. “The end goal” for Coastal Conservation League is “to get rid of this one particular item that is very, very harmful to local wildlife” and could have negative effects on the tourism industry, Ms. Parker said.

Mr. Prokop said businesses are fined “if they don’t do it,” but people bringing in bags from elsewhere are not, which he doesn’t feel is “fair to the businesses.” He also asked who would enforce such an ordinance in places other than at the beach (e.g., at Waterfront Park). Ms. Parker said the draft “ordinance, as written,” does not include a beach ban, so no one bringing bags in from elsewhere would be fined. Coastal Conservation League would support such a provision in the bag ban to keep people from bringing plastic bags to Waterfront Park or to the beaches, she said, and that would have to be enforced by police or “whoever is already patrolling that area.” The beach ban on Folly Beach is enforced by the beach patrol, which “is tasked with writing tickets if you’re found with a plastic bag,” Ms. Parker said, but “they hardly ever write tickets. It’s more of an educational thing,” and people found with plastic bags are told to take them back to their cars. Typically, businesses are just checked for compliance with the bag ban “at the outset,” she said. In larger communities, or those with more retail, there might need to be “an annual audit” to assure compliance, but she has not seen that in other communities, nor have there been “additional enforcement costs.”

Mr. Ruhf asked if the ban is just on single-use plastic bags. Ms. Parker said yes. Dry cleaning and newspaper bags are exempt. County council has looked at thicker plastic bags, which are also harmful, but they are much less prevalent, she said.

Katherine Lang asked how many visitors would bring single-use plastic bags into Beaufort County; it seems more likely to be something they would pick up locally. If a ban is done here, retailers could provide paper bags or multi-use plastic bags.

Ms. Parker told Mayor Keyserling that a study in California concluded that the cleanup costs are about 70 cents per plastic bag, which only cost 1 cent apiece, but that is “hard to prove,” and she doesn’t put much stock in figures about savings to municipalities from bag bans. In San Francisco, which has kept track since 2007, for two years, there was initially an increased cost to retailers because they had to buy paper bags, but after that, their profits increased because they didn’t have to buy as many once people got used to the ban and brought their own reusable bags for their purchases.

Councilman Murray said at his businesses, they switched to paper bags three or four months ago, which cost 30%–40% more than plastic bags. Councilwoman Sutton said her business uses both paper and plastic bags. Plastic bags are “much cheaper” than paper, she said, but the plastic bags she uses are much denser than those in grocery

Council work & regular session minutes September 26, 2017 Page 4 stores. Councilwoman Sutton said the bags she uses are not specifically listed as “exempt” from the ban or not. Ms. Parker said any bags denser than 2.25 mm are exempt. She thinks Councilwoman Sutton’s bags are probably reusable.

Councilman Murray said he’d conducted an informal Facebook poll, and the “vast majority’ of respondents supported “some type of ban or incentive.” He said commercial watermen have said that the majority of the time they’re out on the water, they see plastic bags floating in it, so as a coastal community, he feels it is a much more important issue than in non-coastal communities.

Councilman Murray said some businesses might not need to provide bags; for example, Sam’s Club has boxes their customers can use.

Jennifer Sharp, Beaufort, is with Beaufort Indivisible’s Environment Team, which has been collecting signatures on petitions every month since April at the Port Royal Farmers Market. They will make copies of the petitions for the second public hearing on October 5. People are “very much in favor” of the bag ban, Ms. Sharp said. People visiting from other places have expressed surprise that “this is still an issue here,” she said, especially when other cities and countries have “dealt with this long ago.”

Indivisible also gives out 100 reusable bags at the Farmers Market each month, free of charge, Ms. Sharp said. Local retailers could do the same thing and use them as advertisements. Ms. Parker said communities have done mass reusable bag giveaways that are sponsored by retailers, groups, etc., as a way of kicking off the ban.

Maxine Lutz said she knows city recycling doesn’t allow single-use plastic bags, and she asked what happens to those left in the bins at grocery stores for recycling. Ms. Parker said they either become new plastic bags or are used to make plastic decking. That market is dwindling, though, she said; it’s not as easy as it once was to sell them for export. China is no longer accepting the U.S.’s plastic bags, for example.

Edie Rodgers said single-use plastic bags are “reusable.” For instance, she gives them to charitable shops and uses them in small trashcans. There is “definitely another side of this story,” she said, so she feels “this other data” that she found in online articles needs to be made available, such as the American Progressive Bag Alliance’s claim that the bag bans have not been effective. From 2009 – 2011, “plastic bag litter increased,” Ms. Rodgers read. She believes these articles provide “good information,” while she acknowledges that such organizations “have lobbyists.” She feels the city shouldn't “dash into something just to get even with the legislature.” Mayor Keyserling said the information Ms. Rodgers referred to has been provided to council.

Councilman Murray said he agrees that he’d like more information and to get more feedback from people in the city. He suggested the Beaufort-Gazette could do a story that council is going to have a first reading soon. Mr. Prokop said Linda Roper could let

Council work & regular session minutes September 26, 2017 Page 5 the downtown merchants know about this at their meeting this week and get feedback.

Councilman Murray asked Mr. Ruhf if the local Chamber of Commerce could do a survey like Hilton Head’s did. The Hilton Head Chamber of Commerce survey was for its members, but some citizens took it, too, Ms. Parker said. It asked questions about a bag ban and a fee, she said. She offered to help Mr. Ruhf with the wording for a survey.

Councilman Murray asked Mayor Keyserling to reach out to the Folly Beach mayor. Ms. Parker said both that mayor and the Isle of Palms mayor would be glad to be resources.

BOUNDARY STREET PROJECT UPDATE Neal Pugliese showed a project map including the boardwalks, of which he said three of the four are complete, and three of the four demolition projects are complete. The next demolition will be the Sunoco station, which should be demolished in the next 30 days. Mayor Keyserling asked if the pavement at the gas station could be preserved so it could be a parking lot for the park. Mr. Pugliese said the concrete at the United Way building would be preserved for a parking lot. Mayor Keyserling said that building is being used by the county. The county has said it will be in it for about two years, Mr. Pugliese told Councilman Murray, so given “how government works,” it may “be four years.”

Mr. Pugliese showed photos to illustrate how duct bank construction works. It’s “incredibly complex” because it has to navigate a number of “underground obstacles,” he said. All current above-ground utilities in the Boundary Street project area “will be submerged” when the project is complete, he said. Councilwoman Sutton said she thinks it would be a good idea to publicize the complexity of this part of the project via social and other media. Councilman Murray noted that there are 40 miles of conduit in the duct bank. Mr. Pugliese said the holes are 6’ – 8’ deep, and they have to be shored up so they don’t collapse in. They have to stop work when it rains for the same reason.

Mr. Pugliese reviewed the objectives of the Boundary Street project and the 15 key players, which doesn’t include all of the contractors. He described the necessity of the utility companies and contractors to work together for the project to progress.

Mr. Pugliese then shared “fun facts” about the project and its funding sources. He said he had met someone recently who thought that the project was solely funded by the City of Beaufort. Councilman Murray asked when there would be signs on either end of the Boundary Street project listing the funding sources. Mr. Pugliese said perhaps when more work has been done, and it “looks a little better.” Mayor Keyserling said each of the dollars from these sources is restricted to only this project and can’t be used on any other city needs.

Mr. Pugliese told Councilman McFee that things have been found underground that they didn’t expect to find and things that should have been there that weren’t. He thinks this is because paperwork was never done on water lines or tanks, for example,

Council work & regular session minutes September 26, 2017 Page 6 when they were put in or taken out, because someone forgot to do it or never filed it.

67% of the total project is complete, Mr. Pugliese said. They are about 130’ away from being done with the duct bank. Then utilities can pull their lines through the underground conduit, the subcontractors can start connecting the businesses to the duct bank, and the utility companies can pull their utilities off the poles. He said citizens haven’t seen a lot of progress on Boundary Street because it’s been “primarily subsurface,” but they will soon be seeing more above-ground work.

Mr. Pugliese reviewed other progress that has been made on the Boundary Street project. The engineering on Pickpocket is “moving along smartly,” he said, and reviewed the projected completion dates of various elements of the project. They expect “substantial project completion” by late 2017 or early 2018, he said. This is what drivers on Boundary Street will see (e.g., striping).

Mr. Pugliese said challenges of the Boundary Street project include the following: • Business disruptions • “Unexpected finds,” such as gas storage tanks – Underground lines that have never been mapped are being mapped now. • The conversion from overhead utilities to the duct bank and removing the aerial poles • Construction of the center median, which will begin in a few business days – They would “rather have the disruption up front” and complete the project sooner, so they’re doing it in 400’ – 600’ swaths, where they’ll have one-way traffic, then they’ll move on to the next section. They will adjust the plan if “there’s a major disaster” with the current plan, Mr. Pugliese said. • The demolition of multiple buildings for the vista project, which has meant they have had to reroute traffic • Completing the boardwalk, but they’re nearing the end of that • Socializing drivers to the traffic pattern • Three major storms • Department of Transportation (DOT) mandated work stoppages • The availability of a qualified workforce

Mr. Pugliese reviewed Boundary Street redevelopment to date (e.g., relocation of the Sea Eagle Market, growth at Chick-fil-A and remodeling to accommodate it, potential redevelopment of Kmart). In summary, he said, this project is “incredibly complex,” but it has been “a success.” Mr. Pugliese said, “Folks . . . above us” are looking at this project as “exemplary.”

Mr. Prokop said to date, the project has used 2.84% of the contingency funds, so the project is “well within budget.” The change orders have been around $500,000, and “we’ve got some credits coming” on those, he said. Mr. Pugliese said he thinks this

Council work & regular session minutes September 26, 2017 Page 7 project will end up “doing very well” in terms of the budget. Councilman Cromer said that any surplus in the contingency fund has to be spent in the TIF 2 project area.

Ms. Rodgers asked about the storage tanks under the Sunoco station. Mr. Pugliese said they would remain in place until they’re taken out at a later date. The surface of the lot will be used as a parking area for the park.

Councilman Cromer asked what would be planted in the medians. Mr. Pugliese said it would have palm trees and “natural growth.” The city’s on-staff arborist will be “revisiting” the other plants for the medians. There are 2-hour meetings every Thursday, during which they look at the project and evaluate it. They will look at the planting plan to ensure that it’s sustainable over the long-term with the maintenance budget the city has, Mr. Pugliese said.

UPDATE ON FINAL RULE FROM THE US COAST GUARD REGARDING THE MODIFIED OPERATING SCHEDULE FOR THE WOODS MEMORIAL BRIDGE Mr. Prokop said the Coast Guard has adjusted the schedule after “extensive testing.” He shared the new schedule, which is effective October 5.

Mr. Ruhf asked who employs the bridge keeper. Mr. Prokop said the DOT.

There being no further business to come before council, the work session was adjourned at 6:30 p.m.

EXECUTIVE SESSION Pursuant to Title 30, Chapter 4, and Section 70 (a) (1) and (2) of the South Carolina Code of Law, Councilman Murray made a motion, seconded by Councilman Cromer, to enter into Executive Session for discussion of proposed contractual agreements for property and development projects and a discussion about personnel. The motion passed unanimously.

Councilwoman Sutton made a motion, second by Councilman Murray, to adjourn the Executive Session. The motion passed unanimously.

Council work & regular session minutes September 26, 2017 Page 8 A regular meeting of the Beaufort City Council was held on September 26, 2017 at 7:00 p.m. in the Beaufort Municipal Complex, 1901 Boundary Street. In attendance were Mayor Billy Keyserling, Councilwoman Nan Sutton, Councilmen Mike McFee, Phil Cromer, and Stephen Murray, and Bill Prokop, city manager.

In accordance with the South Carolina Code of Laws, 1976, Section 30-4-80(d) as amended, all local media were duly notified of the time, date, place, and agenda of this meeting.

CALL TO ORDER Mayor Keyserling called the regular council meeting to order at 7:11 p.m.

INVOCATION AND PLEDGE OF ALLEGIANCE Councilman McFee led the invocation and the Pledge of Allegiance.

CHARACTER EDUCATION PROCLAMATION Councilman McFee made a motion, second by Councilman Murray, to proclaim Aleeyah Gadson, who attends St. Helena Elementary, the Student of the Month. Councilman McFee read the proclamation, which Mayor Keyserling presented to Ms. Gadson.

CITY OF BEAUFORT POLICE DEPARTMENT RECEIVES STATE ACCREDITATION CERTIFICATION Police Chief Matt Clancy showed council the certificate. He said that in 2007, the department was nationally accredited, but keeping up with that was “expensive.” They kept up with accreditation standards, though, which he explained. This year, they went through state accreditation, which requires less travel and expense, he said, and now requires more “proof” to attain it than national accreditation does.

PUBLIC COMMENT LaCrista Hudson said she and her neighbor started Beaufort Rocks! this year as an extension of the Kindness Rocks Project, and they now have 2,500 members. There are close to 60,000 members across the country who find rocks, paint them – sometimes with inspirational messages – and leave them in places for others to find. The local group’s “focus is [on] family time,” Ms. Hudson said.

Mayor Keyserling said he found out about the group because The Greenery’s workers had been picking up the rocks that people had left in Waterfront Park and didn’t know to leave them there, but now they will. Ms. Hudson described what the group tells its members about where to put the rocks so they’re not “a nuisance” to businesses, don’t get thrown by lawnmowers, etc. She said they really want people to get involved so they can “spread the love” for art and family time, and help to “inspire” people and make them “feel good” when they find one of the rocks. She said Beaufort Rocks! is the name of the group’s Facebook page.

Council work & regular session minutes September 26, 2017 Page 9

Mr. Ruhf said the Chamber of Commerce supports the day dock project and looks forward to its completion.

MINUTES Councilman Murray made a motion, second by Councilman McFee, to approve the minutes of the council work session of July 18, 2017. The motion to approve the minutes as submitted passed unanimously.

Councilman Murray made a motion, second by Councilman McFee, to approve the minutes of the council work session and regular meeting of July 25, 2017. Councilman Cromer said on page 5, in the 4th paragraph, the portion marked [inaudible] should be “source tax credit.” The motion to approve the minutes as amended passed unanimously.

Councilman Murray made a motion, second by Councilman McFee, to approve the minutes of the council special regular meeting of August 1, 2017. The motion to approve the minutes as submitted passed unanimously.

ORDINANCE ANNEXING TWO PARCELS OF PROPERTY LOCATED AT 2413 BOUNDARY STREET ON PORT ROYAL ISLAND Councilman McFee made a motion, second by Councilman Murray, to approve the ordinance on second reading. Mayor Keyserling said this was property that was part of the Boundary Street redevelopment project. The motion passed unanimously.

ORDINANCE ZONING TWO PARCELS OF PROPERTY LOCATED AT 2413 BOUNDARY STREET T5-URBAN CORRIDOR Councilman McFee made a motion, second by Councilman Murray, to approve the ordinance on second reading. The motion passed unanimously.

ORDINANCE REVISING SECTION 3.6.2.C.2 OF THE BEAUFORT CODE PERTAINING TO SHORT-TERM RENTALS Councilman McFee made a motion, second by Councilman Cromer, to approve the ordinance on second reading. Libby Anderson said the Beaufort Code incorporates the recommendations of the Short-Term Rental Task Force, including a cap of 8% on certain types of short-term rentals in residentially zoned areas. Council has indicated it would like to reduce the cap to 6%, based in part on the recommendation of the Metropolitan Planning Commission (MPC), Ms. Anderson said.

Councilman Murray said he continues “to be against the reduction from 8% to 6%” because he felt the task force had done extensive work on the issue, and he “trust[s] their judgment” on it. He feels the MPC’s reduction of the percentage was “arbitrary . . . with no good rationale given” for it, and he doesn’t feel the small number of properties allowed with 8%, rather than 6% “will make that big of a difference overall.” Councilman

Council work & regular session minutes September 26, 2017 Page 10 McFee said, “We do rely on our task force, and we do appreciate the work that they do,” but he feels “the opportunity to increase it is much greater than the opportunity to reduce it,” so he will support the reduction to 6%. The motion passed 4-1, Councilman Murray opposed.

FY 2017 BUDGET AMENDMENT #6 Councilman McFee made a motion, second by Councilman Murray, to approve the budget amendment on second reading. Kathy Todd explained the different reasons the city does budget amendments. It received more revenues than were budgeted for because the county’s property tax collection rate was higher, and city development fees are increasing. Other revenues in the budget amendment are from insurance proceeds received from Hurricane Matthew, the capital lease for the Johnson Controls contract, and increased building permits. The revenue increases total $3,747,393.14.

Expenditures in the budget amendment, Ms. Todd said, are for the outlay for the Sunoco property on Boundary Street, increased construction related to the Johnson Controls lease, contractual services for the Lady’s Island traffic study, and increased personnel costs during Hurricane Matthew that have not been reimbursed by FEMA. The expenditures in the budget amendment total $1,585,001.43. The motion passed unanimously.

AMEND SECTION 7-13003 OF THE HOSPITALITY FEE ORDINANCE Councilman Murray made a motion, second by Councilman Cromer, to approve the ordinance amendment on second reading. The motion passed unanimously.

REQUEST FROM LOWCOUNTRY JAYCEES TO USE CITY-OWNED PROPERTY AT 1505 NORTH STREET FOR BEAUFORT FOOD TRUCK FESTIVAL Councilman McFee made a motion, second by Councilman Cromer, to approve the request for the October 14, 2017 event. A Jaycees representative said the funds raised would go to send kids to Camp Hope. The motion passed unanimously.

REQUEST FOR STREET CLOSURE FROM MAIN STREET BEAUFORT TO HOST ANNUAL TRICK-OR-TREAT EVENT IN DOWNTOWN BEAUFORT Councilman Murray made a motion, second by Councilman Cromer, to approve the request for the October 26, 2017 event. The motion passed unanimously.

REQUEST FROM MAIN STREET BEAUFORT FOR ALCOHOL WAIVER FOR FALL ART WALK Councilman McFee made a motion, second by Councilman Cromer, to approve the request for the October 28, 2017 event. Mayor Keyserling said the waiver has been given in the past so people may carry open containers while moving within the designated area during ArtWalk. The motion passed unanimously.

REQUEST FOR STREET CLOSURE FROM THE BEAUFORT COUNTY VETERANS AFFAIRS TO HOST ANNUAL VETERANS DAY PARADE

Council work & regular session minutes September 26, 2017 Page 11 Councilman Cromer made a motion, second by Councilman Murray, to approve the request for the November 11, 2017 event. The motion passed unanimously.

RESOLUTION AUTHORIZING CITY MANAGER TO WAIVE THE RIGHT OF REPURCHASE OF PARCEL OF PROPERTY PREVIOUSLY OWNED BY BEAUFORT INDUSTRIAL PARK, INC. Councilman Murray made a motion, second by Councilman Cromer, to approve the resolution. Mr. Prokop said an agreement from the 1990s gives the city the right of first refusal for this property, which is in the county. The city does not want the property, and this resolution waives its right to repurchase it, he said. The motion passed unanimously.

RESOLUTION AUTHORIZING THE CITY MANAGER TO ACCEPT ON BEHALF OF THE CITY THE DONATION BY MID-CITY REAL ESTATE PARTNERS OF 1+ ACRES OF LAND, LOCATED ON LADY'S ISLAND, ADJACENT TO THE PROPOSED WHITEHALL DEVELOPMENT Councilman Murray made a motion, second by Councilman McFee, to approve the resolution. Mr. Prokop showed an overhead map of where the passive park would be. The developers – Mid-City Real Estate Partners – are closing on the property, he said. The proposal has passed the county’s Natural Resources and Finance committees and was on yesterday’s county council consent agenda. The county would pay for the infrastructure, Mr. Prokop said, on the 1+ acre the developers donate, and the city would take on the maintenance of it.

Mr. Ruhf asked about access, and Mr. Prokop said engineering hasn’t been done yet, but it will be accessible per ADA requirements. The motion passed unanimously.

APPROVAL FOR THE CITY TO DONATE CITY POLICE SURPLUS VEHICLES TO THE TECHNICAL COLLEGE OF THE LOWCOUNTRY FOR USE IN THE CRIMINAL JUSTICE PROGRAM Councilman McFee made a motion, second by Councilman Cromer, to approve the donation. Chief Clancy said the request is for those vehicles that are being replaced, which are high-mileage and typically bring in only $500, to be used to train criminal justice students. He said this is “one of our employment pipelines,” so the police department considers this a good investment that keeps the vehicles “serving the public.” Councilman Cromer asked if the city would get a liability release agreement. Mr. Prokop said TCL would supply that. The motion passed unanimously.

APPROVAL OF THE CITY MANAGER ACCEPTING A GRANT AWARD FROM HARGRAY COMMUNICATIONS OF $300,000 FOR COMMERCE PARK IMPROVEMENTS Councilman Murray made a motion, second by Councilman Cromer, to allow the city manager to accept the grant. Mr. Prokop said the city’s relationship with Hargray has been fantastic, thanks in part to the work of Councilman Murray. Hargray gave the city $150,000 for the Beaufort Digital Corridor last year, and this year’s grant will help to improve Commerce Park with repaving, stormwater work, landscaping, and improved signs, he said. It’s “a redevelopment grant” for 100% of the city’s $300,000 request. The

Council work & regular session minutes September 26, 2017 Page 12 motion passed unanimously.

APPROVAL OF THE CITY MANAGER ACCEPTING A HIGHWAY SAFETY GRANT FOR $163,817 FOR DUI ENFORCEMENT OFFICER Councilman Murray made a motion, second by Councilman Cromer, to allow the city manager to accept the grant. Mr. Prokop said that in one day last week, he received emails that the city had received grants totaling $2.2 million. This is a new grant for the City of Beaufort; it includes the costs of salary, benefits, and a patrol vehicle for a year, he said. The motion passed unanimously.

APPROVAL OF THE CITY MANAGER ACCEPTING A SAFER GRANT FOR ASSISTANCE TO FIREFIGHTERS FOR $1,569,678, PENDING RECEIPT OF AWARD NOTIFICATION Councilman McFee made a motion, second by Councilman Murray, to allow the city manager to accept the grant. Getting a SAFER (Staffing for Adequate Fire and Emergency Response) grant is “rare,” Mr. Prokop said. For the new fire station on Highway 170, the grant will pay 75% of the cost of 15 full-time firefighters the first and second years and 35% of the cost the third year. There are “no conditions on this grant,” he said. Anyone who is hired under the grant will be notified that it is a grant-funded position, Mr. Prokop said.

The grant has been “approved,” Mr. Prokop said; the finance and fire departments are currently “verifying the numbers.” The motion passed unanimously.

APPROVAL OF THE CITY MANAGER ACCEPTING A HIGHWAY SAFETY GRANT FOR $107,539 FOR A TRAFFIC OFFICER Councilman Murray made a motion, second by Councilman McFee, to allow the city manager to accept the grant. Mr. Prokop said this is a renewal of a grant for a third year. “The constant patrol that we’re doing” has meant there has not been a traffic fatality in Beaufort since the police department has had this grant, he said. The motion passed unanimously.

ORDINANCE APPROVING THE SALE OF .2 ACRE OF EXCESS CITY PROPERTY ADJACENT TO CHICK-FIL-A ON BOUNDARY STREET AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS FOR THIS SALE Councilman McFee made a motion, second by Councilman Cromer, to approve the ordinance on first reading. Mr. Prokop explained the procedure for the sale, which is to Amelia Bond, the Chick-fil-A owner, for $32,000 to allow the business to increase its parking area. The motion passed unanimously.

ORDINANCE APPROVING THE SALE OF SURPLUS CITY PROPERTY AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS FOR THIS SALE, 2519 MOSSY OAKS ROAD Councilman McFee made a motion, second by Councilman Cromer, to approve the ordinance on first reading. Mr. Prokop said there were two bids for the property. The

Council work & regular session minutes September 26, 2017 Page 13 highest bidder had to withdraw the bid, and the second bidder, Samuel Martin, bid $75,000. Mr. Prokop recommended that council accept Mr. Martin’s bid. Councilman Murray made a motion to amend the buyer and purchase price for this property in the ordinance; Councilman McFee seconded.

The published price for the property was $110,000, Mr. Prokop told Councilman McFee. The amendment to the ordinance passed unanimously. The original ordinance passed unanimously.

APPOINTMENTS TO REDEVELOPMENT COMMISSION (RDC) Councilman McFee said four RDC commissioners were up for reappointment. Councilman McFee made a motion, second by Councilman Murray, to reappoint Jon Verity and Mike Sutton to the RDC for 2-year terms, and Frank Lesesne and Steven Green for one-year terms. The motion passed unanimously.

APPOINTMENTS TO DESIGN REVIEW BOARD (DRB) Councilman McFee made a motion, second by Councilman Murray, to appoint Michael Brock as the designated landscape architect, and Frank Bullard as the at-large member, on the DRB. The motion passed unanimously.

APPOINTMENTS TO CULTURAL DISTRICT ADVISORY BOARD (CDAB) Councilman McFee made a motion, second by Councilman Murray, to appoint Mary Jane Martin to the CDAB. The motion passed unanimously.

CITY MANAGER’S REPORT Mr. Prokop congratulated city staff, the mayor, and city council for their help “getting through” Hurricane Irma. The city is still awaiting reimbursement from FEMA for Hurricane Matthew for about $500,000, he said. Most of the damage to the City of Beaufort for Hurricane Irma was downtown and at Waterfront Park.

Stormwater and flooding issues are the city’s #1 priority for capital funding, Mr. Prokop said, and the city is starting with Mossy Oaks, which is more than 800 acres. There is no short-term solution, he said, but there will be a meeting this Thursday at 7:00 p.m. for residents to talk to state, county, and local officials and to learn about the plan.

Mr. Prokop congratulated the police department for its accreditation and the diversity recognition it received earlier in the year, and the fire department for its ISO 1 certification.

The city got $2.2 million in grants, and “these grants don’t just happen,” Mr. Prokop said, so he thanked staff – especially the city’s grant writer, Deborah Johnson – “our two chiefs,” and those who will need to do the reporting required for the grants, as well as the agencies that awarded the grants and Hargray Communications “for their continued support.”

Council work & regular session minutes September 26, 2017 Page 14

Mr. Prokop said over the next two months, council would be provided with updates on “the work of our military task force, our energy improvement program” with Johnson Controls, “an overview of our synchronization of projects that we’re working on,” and staff’s “recommendations for changes and updates to several of our ordinances.” There will also be a status report on the city’s five goals that were set at council’s annual retreat, he said.

Mr. Prokop said the Boundary Street project is 67% complete at 59% of the time scheduled for it, and “we are on-budget.” There will be delays over the next six to eight weeks as the traffic goes to 1-lane, he said, but that work will save four to six months of time on the project. He said the public should “be prepared for the delays.”

Building permit dollars are up 28% over last year, Mr. Prokop said, and last year’s permits included the new Walmart development. More projects are coming down the pike, he said.

One goal at council’s retreat was “to improve our communications,” Mr. Prokop said. Information on the Boundary Street project is updated weekly, for example. In July and August, the city’s Facebook followers were up more than 3%. He offered some demographic information on the page’s followers.

Shrimp Festival is coming up October 6 and 7, Mr. Prokop said.

MAYOR’S REPORT Mayor Keyserling asked council members to get with Ivette Burgess about “active shooter training.”

The mayors’ Heritage Tourism Task Force has decided to “accept the donation of First Shore nonprofit status,” Mayor Keyserling said, and “members of the task force are becoming members of the board,” with each of the four municipalities, the county and the public being represented on it. “They have proposed hiring a coordinator,” but Mayor Keyserling has “discouraged that,” because “we have a lot of chiefs,” and he feels they should “work through our DMOs” (designated marketing organizations) instead. He said he has not yet “heard back on that.”

Mayor Keyserling said he’d like council to consider putting together “at least a resolution” on the plastic bag ban for the next council meeting, in order to encourage the county and the other municipalities to “come together in some kind of timely manner.” He thinks implementing the ban is “going to take some leadership,” so he’d like to get it started, though there are more people/groups to hear from yet. Even if a bag ban ordinance is passed, Mayor Keyserling warned, the state legislature “has the potential to take it away.”

Council work & regular session minutes September 26, 2017 Page 15 REPORTS FROM COUNCIL Councilwoman Sutton said she and Councilman McFee went to Charleston for the Municipal Association’s regional advocacy meeting. She found that many of the municipalities in the Charleston area have the same issues as Beaufort does.

Councilman McFee said he and Mr. Prokop attended the Emergency Operations Center debriefing for Hurricane Matthew. Neil Baxley spearheaded the meeting, which was also attended by the sheriff, representatives of all of Beaufort County’s municipalities, and the legislative delegation.

Councilman Murray thanked “the city manager and all the department heads” for their response to Hurricane Irma. He noted that firefighters knocked on doors before the storm, and he’d seen the police boat dragging debris out of the river after it.

Councilman Cromer said at the regional advocacy meeting in Walterboro, “they brought up . . . having municipal elections on odd years, rather than on even years, which “could be a change for us.”

Councilman Murray said USCB and TCL are looking at campus expansion. It’s hoped the student housing that 303 Associates is building in partnership with USCB will be completed by Fall 2018, and USCB announced that it is creating a new “honors nursing college in Beaufort,” to start in Fall 2018, he said. This is all good news for economic development, because education is critical to its success, Councilman Murray said.

The Economic Development Corp (EDC) is in contract negotiations with the candidate chosen for the executive director position at the EDC, Councilman Murray said.

Councilman Murray said the previous night, county council unanimously approved an agreement with the Southern Carolina Alliance (SCA), following SCA’s approval of conditions the county had asked to be put into the agreement.

On the recommendation of the EDC, Councilman Murray said county council had made “made three appointments” to the SCA board of directors; a county council appointee, the EDC chairman, and a private sector member of the EDC board will hold those seats.

Councilman Murray said he’s looking forward to the Jaycee’s Food Truck Festival on October 14.

Councilman Cromer said Public Works came to his neighborhood and cleaned up debris from Hurricane Irma.

The wife of Beaufort’s former mayor, Henry Chambers, was laid to rest today, Councilman Cromer said.

Council work & regular session minutes September 26, 2017 Page 16 There being no further business to come before council, Councilman Cromer made a motion, second by Councilman McFee, to adjourn the regular council meeting. The motion passed unanimously, and the meeting was adjourned at 8:39 p.m.

Council work & regular session minutes September 26, 2017 Page 17 CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/19/2017 FROM: AGENDA ITEM Special Meeting - Mossy Oaks Drainage September 28, 2017 TITLE: MEETING 10/24/2017 DATE: DEPARTMENT: City Clerk

BACKGROUND INFORMATION:

PLACED ON AGENDA FOR:

REMARKS:

ATTACHMENTS: Description Type Upload Date Minutes Backup Material 10/19/2017 A public meeting about the Mossy Oaks drainage area was held on September 28, 2017 at 7:00 p.m. in the Beaufort Municipal Complex, 1901 Boundary Street.

In accordance with the South Carolina Code of Laws, 1976, Section 30-4-80(d) as amended, all local media were duly notified of the time, date, place, and agenda of this meeting.

CALL TO ORDER Mayor Billy Keyserling called the special meeting to order at 7:03 p.m.

INVOCATION AND PLEDGE OF ALLEGIANCE Councilman McFee led the invocation, and Representative Shannon Erickson led the Pledge of Allegiance.

STORMWATER AND FLOODING ISSUES IN THE MOSSY OAKS AREA Rep. Erickson introduced Jim Beckert, Councilmen Stephen Murray and Mike McFee, and Councilwoman Nan Sutton. Mayor Keyserling said Councilman Cromer was absent because he was attending the Lowcountry Council of Governments meeting.

Rep. Erickson said Mossy Oaks is an 800-acre property. She introduced Mayor Keyserling and Alice Howard, the county councilwoman for this district. Rep. Erickson said members of the task force would be speaking. “We’re all working on this together, on every level,” she said, and she thanked the members of the public in attendance for their participation.

Mayor Keyserling named the members of the Stormwater Task Force, which he said has just been formed and has not yet met. He said when the solutions to the problem have been “projected, then we have to go get some money” to solve them.

Rep. Erickson said problems are typically reported “in small parcels.” She introduced Neal Pugliese, the director of public projects and facilities for the City of Beaufort. Mr. Pugliese said because “this is an 800-acre problem,” people should realize that their individual issues with stormwater may begin as far as 200 acres away. He then reviewed the agenda for the meeting.

Flooding and repeated flooding is the problem, Mr. Pugliese said. To understand the problem, its root causes must be understood, which is what the task force will look at. This process is something that has never been done previously, he said.

Neil Desai, assistant Public Works director, showed the overall project map and described its boundaries. He then showed the FEMA flood zones. There are multiple jurisdictions involved, he said: the Town of Port Royal, the City of Beaufort, Beaufort County – which has parcels along the river, two schools, and Arthur Horne Park – and the Department of Transportation (DOT).

Council Special Meeting September 28, 2017 Page 1

Mr. Pugliese said the City of Beaufort has 14 Public Works employees, who do the best they can, but DOT owns “95% of this structure.”

Mr. Desai said the watershed is in two basins. The existing infrastructure is “aging and... undersized,” and it cannot handle high-intensity storms. Flooding in the area will never be completely mitigated, he said. Mr. Desai named some of the “stakeholders.” If nothing is done, the damages to personal property will continue to occur, he said.

Mr. Desai and Mr. Pugliese reviewed assumptions about the problem: • “We are in the Lowcountry,” and topography here is flat and low, so it can never be fully protected from hurricanes. • Mr. Pugliese said each person’s home is “one system within the whole 800-acre system.” Engineers believe this will be “a multi-million-dollar effort,” he said, so it may have to be broken into phases. There needs to be “a fully developed engineering plan so we can fully understand what . . . we need to do to fix the system once and for all.” • Mr. Desai said permitting “will cause delays.” • The city stormwater until fund takes in approximately $850,000 a year, and “we are not looking to increase that appreciably within the next 3 years.”

Mr. Desai described the “must do” steps in the process: • Education • Complete engineering analysis • Secure easements and stakeholder agreements • Secure funding • Commit to solving the problem • Forming the multi-jurisdictional task force has been completed.

There cannot be further delay, Mr. Desai said; it’s been a wet season already, and it is still hurricane season.

Mr. Desai said broad potential solutions have been looked at, and “we have to let the science and engineering dictate what we are planning to do.” Some ideas being considered include • Surveying all the drainage features & assessing the drainage conveyances. • Relocating or installing pipe as needed. • Dredging silted areas (e.g., the duck pond). • Putting in additional drainage features (e.g., Where can we add more ponds or drainage conveyances?). • “Fixing the outfalls first.” Do there need to be larger pipes at all the outfall points?

Council Special Meeting September 28, 2017 Page 2 Mr. Pugliese reviewed “the targeted timeline and the next steps.” • Secure funding for a commissioned detailed drainage study and analysis • The task force has been convened and will meet soon. Its members are from SCDOT, Beaufort County, the City of Beaufort, Town of Port Royal, and local citizens. • Secure funding for an engineered and constructed solution – to be completed by May 1, 2018 • Construction to begin no later than July 1, 2018

Mr. Desai said typical drainage projects start from the outfall end; he showed the outfall pipe for Basins #1 and #2. A detention pond is a potential solution, he said.

Mr. Desai said preliminary cost estimates are that the first phase – Basin #1 – will be $1.8 million, and the second phase – Basin #2 – will be $1.2 million. Final costs will be refined as engineering plans are developed,

Mr. Desai reviewed actions that have been completed by the City of Beaufort and SCDOT.

In the interim, residents could remove debris from the ditch line, Mr. Desai said. Mr. Pugliese said before Hurricane Irma, the Public Works department was “energized” and travelled the city. The day before the storm hit, they found things that were “kind of alarming,” such as people dumping things into the drains, which “stops a whole lot of water.” Landscapers were “putting clippings and ‘whatever’ in places they should not go.” He said the public should call Public Works if they see anyone putting anything into ditches.

Pete Godby, 2600 First Boulevard, said the houses in this area are worth $200,000 on average, and the $3 million price tag is equivalent to 15 of those houses. He feels “the meeting” of the task force should happen “right now,” and said people “need to be kept informed.” As to debris in the ditches, he feels “contractors” should be cited for what they do, which he’s seen. This flooding is not recent, Mr. Godby said; he’s “been observing it since 1994.”

Ms. Howard reviewed the rules for public comments.

Rep. Erickson told Mr. Godby that the task force meeting couldn't be held tonight because not all of its members were present. Mayor Keyserling said the task force meetings will be public, and there will be advance notice of them.

Jack Nietert, 2830 West Royal Oaks Drive, said the ditch work that’s being done now is “wonderful,” and he hopes it continues, but there are three ditch systems that come together on West Royal Oaks Drive in one location, then go to a pipe leading to the tidal pond at the Spanish Moss Trail. Until that pipe is addressed, the homes on West Royal

Council Special Meeting September 28, 2017 Page 3 Oaks are “endangered,” he said.

Karen Mozzo, 704 Jane Way, asked why construction is to begin on July 1, which is “the first day of hurricane season.” She asked that the City of Beaufort workers be told not to put grass clippings into the duck pond. Ms. Mozzo said she had called every other day for 3 months about an issue, but no one came out until she “called it in as a fire hazard.”

Gene Nebelung, 2840 West Royal Oaks Drive, said the tidal creek is directly behind his house. Water has to have somewhere to go, and it comes into his backyard and those of his neighbors, “even without a hurricane.” He described what happened with water during and after Hurricane Matthew, including ditches that were filled with furniture when the houses were being dried out after the flooding. Mr. Nebelung asked that the tidal creek be put “on the top of your list” to prevent flooding of those homes.

John Edgerly, 2618 Rodgers Drive, has lived there since 1973. He said he’d brought photos of “damage that happened when it rained.” The trestle “must have been up there for over 200 years.” The oyster shells that have been there that long are now “washing out,” and “a massive hole” has started to form “under the trail.” Mr. Edgerly said he has a DHEC (Department for Health and Environment Control) notice about what he should remove from the area around his dock that is “pretty specific.” People on the opposite side of the marsh are “getting flooded out” now, he said. He saw whitecaps on West Royal Oaks during Hurricane Matthew.

Jim Carson, 2220 Southside Boulevard, said homes weren’t damaged during Hurricane Irma, but the neighborhood hopes something can be done to prevent future damage from flooding. He talked about the flooding on Twin Lakes Road that was “18 inches or more” deep, which happens because there is nowhere for the water to go. Public Works pumped it several days after Hurricane Matthew.

Fifteen or twenty years ago, Mr. Carson said, the county came “to clean the line that drains from Twin Lakes Road across Southside” Boulevard, but no one could “find the line,” Mr. Carson said, so there is no drainage for the water when it goes into the lakes, and the street floods. He was told by Public Works that the lake next to his property would be dredged “as soon as they could find who owns the property,” which “is not that hard,” but that was also about fifteen years ago. He said he hasn’t “seen any [stormwater] property being maintained” in the more than 30 years he’s lived there, so he thinks it’s time.

There is a line between the lakes, but no way to tell if anything’s getting through, Mr. Carson said, because the water level has been so high all season, and they are full of “all the trash . . . dirt, and . . . debris that’s washing in,” as well as the street pavement that’s breaking off the road’s shoulder.

Lamar Taylor, City of Beaufort Public Works director, told Mr. Carson that the drainage

Council Special Meeting September 28, 2017 Page 4 pipe he’d referred to had been found, and there is money in the city’s budget “to dredge that pond,” which should take place in the next month. Because “it probably was not maintained in the last 20 years,” Mr. Taylor said, the pipe “probably is in the mudflat,” so “it silted over, and water can’t get through it.

Sandy Voegeli, 702 Battery Creek Road, said her father built her house and “dredged that pond” on Jane Way. It was 5’ deep, but “when the road was put in, it slanted and washed our yard away.” Another problem is that “where the pond drain comes across,” there are “nice, big trees growing” in the ditch in front of her house, Ms. Voegeli said. “The drain in our yard that should go around the second drive is gone,” and “we’ve lost so many inches of our yard,” despite continuously putting dirt in it. “When the Spanish Moss Trail was built . . . we started flooding,” she said. “The water would come in, and it could not go back out.” She described the trees that have been “pulled down in the ditch,” so the tide has nowhere to go but into her yard and those of her neighbors.

George Myers, 2832 West Royal Oaks Drive, said “The #1 run-off [is] my backyard.” Where the old trestle was, there is a “tiny culvert,” and on “a regular day, a couple hours before high tide, that pipe is completely covered up, creating a dam,” so the water has nowhere to go, he said. His house “was flooded twice this year,” and the second time, he “watched the water come in.” Mr. Myers said, “The drainage ditches in that area are working fantastic – the water’s getting down there – but it has no place to go” once it’s “funneled down there.”

Mike Burke, 2845 West Royal Oaks Drive, said he’s lived in the Mossy Oaks area since 1958, and he’s seen what has happened and what should have happened but did not. He said the problem occurs because when houses were built in his neighborhood, the ditch was filled in and a culvert was put in; the water flow was decreased “by about 75%,” but “once the culvert reaches the marsh, it is under water, even at low tide.”

Mr. Burke said when the Spanish Moss Trail was built, a culvert was put in. During “the hurricane,” he saw “the water level on our side” of the Spanish Moss Trail was “4’ higher than on the Battery Creek side.” He said “what needs to be done” is the pond – which was once “6’ to 8’ deep at low water,” and is now about 1’ deep – “needs to be addressed.” They should also “remove that culvert and build a trestle at the Spanish Moss Trail,” Mr. Burke said. There was “never . . . water in our yard until they built that Spanish Moss Trail,” so he believes this would “solve 90% of that problem in our area.”

Andy Corriveau, 606 New Street, said there are other areas of the community that flood, and he hopes the task force will also do its work in his neighborhood. He said he pays a stormwater fee and would like to get “our fair share.”

Rep. Erickson said there are 800 acres in Mossy Oaks, and they expect that the boundaries of the area “could move.” The boundaries are “a projection”; the system will lead them to where the work needs to be done, she said, and they’ll present a

Council Special Meeting September 28, 2017 Page 5 comprehensive study.

Rhonda Carey, 2838 West Royal Oaks Drive, purchased her home a couple months ago. They were not here for Hurricane Matthew but in Hurricane Irma, their shed “took on 3’ of water,” she said. She feels it’s the homeowners’ responsibility to protect their property while the long-term solution is being found, so she’d like to know how to “stave off the water in our yards,” since her home backs right into the marsh, “until more permanent solutions are in place.” She also asked how soon those affected get information about the solutions, (i.e., what kinds of engineering projects will be happening, so she can know how it might affect property values).

George Bach, 4 Twin Lakes Road, said Public Works had helped the Twin Lakes residents out by pumping the water off the street after the hurricanes, but he’s hearing that the problems are happening because of “lack of maintenance and manmade downfalls.” He said even in dry months, when he walks along Southside Boulevard, “there is a lot of standing water back there” in “the creek,” and the ditch on the north side of Southside Boulevard “has been blocked for as long as I can remember.” Cleaning out a culvert “didn’t do any good,” Mr. Bach said, because the “crux of the problem” has not been addressed.

Mr. Bach said the ditches that were dug on Southside Boulevard were a good effort, but they didn’t “actually supply” anything; they’re 2’ deep in some places, 3’ deep in others, and they “collect debris,” while water accumulates in the deeper parts. He said he takes toys and grocery carts out of the ditch “by the apartments . . . all the time.” Mr. Bach also said he wants “a reason” if there are delays in this project, “not excuses.”

Mr. Nietert said he feels elected officials need to have the courage to raise taxes for “more money to solve stormwater problems.”

Ron Voegeli, 702 Battery Creek Road, told about an incident with dredging of a drainage ditch by DOT 40 years ago, which helped; he “thought they’d come back every ten years or so,” but no one has come back since. This needs to be addressed, he said. He wants it to be dredged again, but “I’m not going to let them [inaudible] my property this time, unless they [inaudible] another 2’ sea wall,” so he can “go ahead and protect it,” but that “wouldn't be fair to people on the other side.” What is dredged up needs to be hauled off, Mr. Voegeli said.

Jasper Wiseley, 2709 Southside Boulevard, described his flooding problem, which is that water “comes up to the side of my garage all the time,” and those of his neighbors. He maintains “my side of the ditch,” he said, and feels “it’s time for somebody else to start doing their job.”

Mr. Wiseley told Mayor Keyserling where he lives, which is “right across the street from the park.” He said there were never problems before, but “for the last two storms,

Council Special Meeting September 28, 2017 Page 6 we’ve had water 9” deep in my neighbor’s yard, coming right up to the side of my garage,” because of “pipes being jammed up with junk.” A new sidewalk that was built in front of his house “is starting to wash out underneath,” and Mr. Wiseley’s wife “keeps pushing the dirt back up” under the sidewalk, “but I’m not going to let her do that anymore. If it washes the sidewalk out, so be it.”

JoAnne Handyman, 802 Center Drive West, said in the presentation, it was said that flooding happens “only during high-intensity storm events,” but she disputes this, because her house was flooded in 1994 from “a lot of rain in a short amount of time,” and again in 2014. Also, she agrees that one element wouldn't solve the problem, but “if regular maintenance had been done all along,” they wouldn't have the problems. Ms. Handyman said, “That canal has not been dredged since 1994,” and it is “full of trees” that fall and “huge trees” that are “growing in there.” In regard to the debris in the ditch line “that we’re supposed to call . . . Public Works about,” she said, hers wasn’t ever picked up after Hurricane Matthew.

Peggy Simmer, 914 Port Republic, said after Hurricane Irma, at Charles and Craven Street, there were problems with flooding from stormwater drainage.

Rachel Forrester, 808 Center Drive West, bought her house in April. She said as a result of a “normal rain” shower, “my entire backyard was flooded” with water about “3’ deep,” so she’s concerned about the contents of a new garage they’ve built on their lot because water will go in it “if we put flood vents” in it. The Jane Way canal has chairs and bikes in it, Ms. Forrester said. Everything in her “garage is ruined” because of flooding, she said, from a rain storm, and she doesn't “want to leave our house,” but when she “called somebody, they never called back.” She said it was “hours before the water went down even a little bit,” and her car could have been “easily totaled” in 3’ of water. The rain from Hurricane Irma left “probably a foot of water throughout the entire garage.” Ms. Forrester said the “entire canal needs something” to be done to it, and she would like something done before March 2018.

Rep. Erickson said the timeline that was given was for “the large project,” but “current work” would not stop. There will be work done by the City of Beaufort and DOT in that period, but the task force will be looking at “larger concerns.”

Mike Sutton, 809 Craven Street, said he has been looking at this issue for a long time and has spent a lot of time in Mossy Oaks. He gave the phone number to call Public Works about issues of people putting debris into ditches: 843-525-7054.

Mr. Sutton said the stormwater fee is “a very new item.” It was not set up “as a maintenance fund,” which is why it is only $850,000 a year, he said. The city’s Public Works department spends over $5 million a year, but only 50% of that is stormwater- related, and there are only 5 stormwater staff. This is “a state issue,” Mr. Sutton said.

Council Special Meeting September 28, 2017 Page 7 Mossy Oaks was annexed into the city 37 years ago, Mr. Sutton said. Hearing about the Spanish Moss Trail makes it clear that it is compounding the problem. He said problems could be expected after a hurricane, but they shouldn't happen during “an April rain.” What is going to be done in the capital budget should be part of the conversation, too, Mr. Sutton said, so that there is money to maintain what is done to solve these problems.

The ditches in front of people’s houses don’t overflow on their own, Mr. Sutton said. People throw debris in them and burn in them, and landscapers blow matter into them. Elements of the environment contribute to how stormwater is flowing, he said.

These issues didn’t happen overnight, Mr. Sutton said; this is a long-term problem, and citizens need to understand the stormwater fee, and need to elect people who will raise taxes when they need to be raised for things like this. The Spanish Moss Trail is technically owned by Beaufort-Jasper Water Sewer Authority (BJWSA), he said, and the county leases it, so there are “other parties that might need to be at the table,” but it’s Beaufort citizens who own the stormwater system, Mr. Sutton said.

Mr. Sutton said the city mowed the grass before Hurricane Irma, and the clippings went on the ground and then into the stormwater system. Individuals and landscapers both blow leaves from yards into the drains, and “we all need to do our part” to change that.

Mayor Keyserling said Mr. Godby maintains his ditches fastidiously, but it looked like there was a moat around his house after the hurricane. Mr. Godby said there are “ditches on all four corners” at his house, and he maintains them, but part of the problem is kids at the nearby schools throwing things into them. One end of the ditch “never drains,” and it “stinks.” He said the lack of maintenance of “the constant flow of the debris” in the ditches is the problem. Mr. Godby said he loves the Spanish Moss Trail, but he thinks “that’s where the problem started.”

Mr. Godby discussed the city’s flood insurance program.

Carmen Pirtle, 808 Jane Way, said there doesn’t need to be a hurricane for the ditch in her yard to fill – even in a heavy rain – and after Hurricane Matthew, her home flooded, and “we lost a lot of our stuff.” The ditch “stinks” and “fills up every time it rains,” she said. Ms. Pirtle said she has flood insurance, but she “can’t afford to keep replacing my belongings.”

Bill Prokop, the Beaufort city manager, gave the phone number for his office – 843-525- 7070 – and asked people to call him if they have tried to get help but have not heard from anyone, and “you will have an answer in 24 hours or less.”

Mr. Prokop said a sheet will be created with ideas about things that homeowners can do to help with the problems in the short-term, and there will be “training” offered about

Council Special Meeting September 28, 2017 Page 8 this, too.

In the next few weeks, the city will provide sandbags at Public Works in the event of another hurricane, Mr. Prokop said. He said some of the problems are from “basic maintenance issues,” but there are only 14 people on the Public Works staff, and “our stormwater group is 5 people.” However, “we know what we have to do and it will be done,” he said.

Councilman Murray said he grew up on Mystic Drive, “several blocks” from the duck pond, and he agrees that it was once “fairly deep,” but now he “see[s] ducks walking across it,” so he knows there’s an issue with the pond. He became involved in this issue on August 9, when “several residents and friends” called him to come to the area of Southside Boulevard, Jane Way, and First Boulevard, where he took many photos and video, because “if you don’t see it . . . firsthand . . . the amount of water” is “quite unbelievable.” Councilman Murray said it’s important to note that on August 9, there was a microburst, not a hurricane or a tropical storm, so there was no storm surge, yet this “summer shower . . . damn near flooded people’s houses.”

“This isn’t a revenue problem,” Councilman Murray said; “it’s a priority problem.” He asked which entity would release the RFP and in what timeframe, how the study would be funded, and at what point the vendor would be identified.

Mr. Pugliese said they are “currently going through the compliance” to “make sure the process is legal,” and if it is, “they can do it fairly shortly.” Mr. Taylor said they have gone through the procurement process and will have to do intergovernmental agreements.

Councilman Murray said he’d continue to make this a priority, and when there’s a price tag, he will continue to push for the funding. Rep. Erickson said she “beg[s] to differ” with the idea that the revenue problem is “on the DOT side.” She had voted in the state legislature to give DOT more funding, because the amount of funding last year was not much different than it was many years ago. Rep. Erickson voted to raise the gas tax, which she said wasn’t “a popular vote.”

Rep. Erickson said, “We’ve already begun talking to our agencies,” and they are looking at what they can do “to make this work.” This issue is a priority, and DOT has “the tools” now that it hasn’t had before. She feels there will be “different venues for funding,” such as DHEC, because of the public health issues that occur with flooding. She said representatives from BJWSA and the school district also need to be on the task force.

Councilman Murray said he still feels this is “a priority problem,” not a revenue problem, but he’s glad it is a priority now. Citizens need to stay engaged to keep it a priority, he said.

Council Special Meeting September 28, 2017 Page 9 Councilman McFee said council needs this level of feedback on every issue.

Rep. Erickson asked the task force members present to introduce themselves: • Tim Henderson, DOT district engineering administrator • Randall Mungo, DOT engineer, said, “The DOT is committed to help.” • Russell Berry, DHEC, said there might be “some funding opportunities” in the form of loans from his agency. • Eddie Hipp, 2305 Waverly Way, has lived there 25 years and represents watershed #2. • Chris Nietert, 2830 West Royal Oaks Drive, said the trestle there has always been a culvert pipe. • Mr. Taylor • Mr. Desai • Mr. Pugliese • Ms. Howard said in addition to being the District 4 representative on county council, she lives in the neighborhood. She assured the public that the county would be involved in this project. She is focused on stormwater and is the liaison “from the county to that committee.” Ms. Howard feels everyone needs to “pool resources, not point fingers.”

Mayor Keyserling said in all his government experience, he’s never seen the state, county, and city come together until now. He feels this is “a great start,” and he thanked Rep. Erickson, Ms. Howard, and Councilman Murray particularly.

Rep. Erickson gave her personal number: 843-263-1867.

The meeting was adjourned at 9:09 p.m.

Council Special Meeting September 28, 2017 Page 10

CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/20/2017 FROM: AGENDA ITEM Worksession and Regular Meetings October 10, 2017 TITLE: MEETING 10/24/2017 DATE: DEPARTMENT: City Clerk

BACKGROUND INFORMATION:

PLACED ON AGENDA FOR:

REMARKS:

ATTACHMENTS: Description Type Upload Date Minutes Backup Material 10/20/2017 A work session of the Beaufort City Council was held on October 10, 2017 at 5:00 p.m. in the Beaufort Municipal Complex, 1901 Boundary Street. In attendance were Mayor Billy Keyserling, Councilwoman Nan Sutton, Councilmen Mike McFee, Phil Cromer, and Stephen Murray, and Bill Prokop, city manager.

In accordance with the South Carolina Code of Laws, 1976, Section 30-4-80(d) as amended, all local media were duly notified of the time, date, place, and agenda of this meeting.

CALL TO ORDER Mayor Keyserling called the work session to order at 5:00 p.m.

South Carolina MILITARY BASE TASK FORCE UPDATE/BRIEF Bill Bethea said the South Carolina Military Base Task Force was originally organized in the early 2000s when the BRAC (base realignment and closure) was imminent. After the BRAC, the task force “fell into a malaise,” he said, and then in March 2013, then- Governor Nikki Haley issued an executive order to “reinvigorate” it.

The task force is focused on the military bases statewide, and there are 5 members from the Beaufort area, Mr. Bethea said; Jim Wegmann is on the task force’s executive committee.

In Fall 2016, another executive order started the Veterans’ Policy Advisory Committee, an “important” subset of the task force, which was to “pick up where the Legislative Study Committee left off,” and to understand what is and isn’t being done well “as it relates to veterans’ matters,” Mr. Bethea said. He described the composition of that committee.

There have been 417,515 veterans identified in South Carolina, Mr. Bethea said, but the Veterans’ Administration (VA) in Washington, DC estimates that number to be closer to 900,000, so one of the committee’s tasks is to determine “how to get a full count” of the veterans in the state. The committee is also cataloguing the veterans’ organizations in the state, Mr. Bethea said, and the secretary of state’s office is determining which organizations are good and which aren’t.

When the Military Base Task Force was initially reactivated, Mr. Bethea said, a report on the economic impact of the presence of the military in the state was $17 billion. In 2016, it was determined the economic impact was $19.3 billion, and the most recent study showed that the economic impact is $24.1 billion. He reviewed other statistics from the study in handouts he gave to council, including the economic impact of the military on the Beaufort region ($2.4 billion). Mr. Bethea said the impact of tourism in South Carolina is about $20 billion by comparison.

Mr. Bethea said Lockheed Martin is moving its F-16 manufacturing operations from

Council work & regular session minutes October 10, 2017 Page 1 Texas to Greenville, South Carolina next March; it has been estimated this will create 170 jobs, plus 240 jobs for “a jet trainer for the Air Force,” for which Greenville is in competition, so the Upstate is “a rising player [in] this overall picture.”

Mr. Bethea the task force began by working with the state legislature to focus on the impact of the military on the South Carolina economy in order to get “military-friendly” acts passed. Late last year, the task force developed a strategic plan, which Mr. Bethea had also given copies of to council; the plan identified the four objectives the task force should focus on for the next 5 years: • Establish a new operational structure for the task force: It currently doesn’t address 2 or 3 major segments of the state (e.g., Greenville, where the “military presence” is “really growing,” Mr. Bethea said). • Protect and grow South Carolina’s military assets: Many states are looking at the military component of their state “as they would a business [or] an industry.” Examples include public-private partnerships and legislation restricting drones near military bases and airports. • Improve the quality of life for military families and retirees: Mr. Bethea said some examples include easing “the burden of moving every 2 years” for transferring families, and encouraging the creation of more childcare options that families can use (e.g., they can’t currently be reimbursed for off-base childcare in Charleston). • Support veterans’ and retirees’ services and benefits: For example, Mr. Bethea said, the task force supports legislation to expand the income tax exemption of military retirement pay to 100%.

Mayor Keyserling said 5 or 6 years ago, the city tried to sit down with the Marine Corps Air Station (MCAS) to discuss possible partnerships for, among other things, contracts for lawn mowing and combining contracts for trash pick-up for “everyone” to get a better price. He said Mr. Bethea had said Lockheed Martin is going to the Upstate, while Beaufort has the land available, and personnel who are getting out of the military and are ready to work. In a state with “such a workforce shortage for the kinds of jobs that are coming” to it, Mayor Keyserling said, there is “incredible talent” in Beaufort “that would like to stay here,” so he feels there need to be “stronger partnerships” with the military here. There is “a huge resource right here,” he said, and providing those exiting the military with jobs would “benefit the whole state.” Mr. Bethea agreed that “we need to do a better job” with employing those leaving the military.

Councilman Murray recalled that 4 or 5 years ago, there was “talk of sequestration and potentially an upcoming BRAC,” and while there are “billions of dollars of military assets within” South Carolina, there was “no task force . . . paying attention to all this stuff,” so the state was “very reactive,” unlike North Carolina. He commended Mr. Bethea and the task force “for getting organized,” and he hopes the conversation about how the city and the task force can “support each other” to achieve their strategic goals will continue.

Council work & regular session minutes October 10, 2017 Page 2

Councilman Murray described an Association for Defense Communities conference In Charleston approximately 2 years ago, a “big focus” of which was “city-based shared services,” which help “taxpayers [get] better value” for the taxes they pay through combined services with the military. Also, he said, the more local and military communities are combined, the “more defensible” the city’s position is when the next BRAC comes, or the next sequestration. Previous command structures at MCAS were “very resistant” to talking about shared services, Councilman Murray said, and the city hasn’t “really reached out” to the “new command structure.” Also, the Military Enhancement Committee, which is “housed over at the Chamber of Commerce” has “been very resistant to looking at or considering doing anything differently.”

Councilman Murray asked Mr. Bethea how he thought the state task force “could help us.” One task force objective is to support communities that seek “public-private initiatives,” he said, and the Pentagon is saying that it is “going to start pushing that down from the top.” Mr. Bethea said, “When a BRAC comes around,” one of the criteria the Pentagon will be looking at is “how cost-effective . . . your operation” is. “The Charleston projects” are examples of “how they have successfully done that,” he said, and he would send those to council, because they could be used as “a catalyst to make something like that happen here.”

Councilman Murray said he thinks Mr. Bethea is “spot-on” about how to leverage “military assets to encourage economic development.” He asked if the task force has discussed the type of incentives or “programs that work” that “we might work together on to leverage those assets.” Mr. Bethea said they have not, but now that the task force has a “game plan,” he thinks it should “hone in on” that. He feels that “we’ve got to do a better job of keeping our service members here” who “have the skill sets that” can “enhance our lives and our economy.” Councilman Murray said, “We’ve met with some folks from Boeing,” Gulfstream and Lockheed, and “their eyes always light up when we talk about exiting military,” because many have security clearances, the right experience, and “a lot of the skills they . . . need” to work for those companies, who “are struggling to find the right kind of workforce.”

Councilman Murray said city council had passed a resolution in support of an outlying field. Mr. Bethea said the task force would try to encourage that. When the F-35 came here, the EIS (environmental impact statement) did not identify a need for an outlying field. It’s “not a dead issue” he said, but neither is it an active one. Mayor Keyserling said his sense is that the outlying field if the public were “to help drive it.”

Mayor Keyserling told Mr. Bethea that “one thing that should be a slam dunk” is the Beaufort National Cemetery. There is acreage there that has derelict housing on it, he said, and “the owner thinks it’s worth a lot more” than it actually is. The city can’t buy it, but has suggested that Rural and Critical Lands could and “land bank it,” Mayor Keyserling said, “because the VA will say they don’t need it now,” but it will be needed

Council work & regular session minutes October 10, 2017 Page 3 by many in the Lowcountry eventually. The idea that they could be buried in “a significant national cemetery” could “attract people to come retire here.” Mr. Bethea said he “hadn’t thought of that in this context,” and he’d “put that on the radar.”

DISCUSSION: JOHNSON CONTROLS PROJECT UPDATE Neal Pugliese said the project thus far has been “very, very successful.” The final update should be complete in November.

Kim Smith reviewed the project background, which began when city council approved the project in April 2017. The basis of the project is energy improvements to various city buildings and parks. She reviewed the project implementation schedule. The improvements are funded out of the energy savings, Ms. Smith said. Mr. Pugliese said the project is “budget-neutral.”

• Lighting system upgrades, with a conversion to LED lights, are about 72% complete, Ms. Smith said. Mr. Pugliese said many aspects of the project are meant to lead to less need for facility maintenance; LEDs have a 10-year lifespan, for example. Ms. Smith said that’s the warranty time; they “will last much longer” than 10 years. Mr. Pugliese described the lighting installed so far in Waterfront Park. • Ms. Smith said irrigation upgrades at Fire Station #2 are not yet complete. • Building envelope improvements (e.g., weather-stripping, door sweeps, etc.) have all been completed, Ms. Smith said. • Control upgrades will reduce maintenance needs, Ms. Smith said, in a number of city facilities’ heating and cooling systems; these are about 66% complete. Mr. Pugliese provided an example of how the system in an office wouldn't be at full power if the occupant were on vacation for 2 weeks. • Ms. Smith said there have been “significant mechanical system upgrades,” including replacing the chillers at City Hall and the police facilities. Mr. Pugliese said the shutdown to install this equipment was a “significant emotional event,” as work was done for “15 to 20 hours a day,” while keeping Internet connectivity up. He said the equipment that replaced it is “state-of-the-art,” and he complimented the city for purchasing the service agreement with Johnson Controls. Ms. Smith said the chiller is variable speed and is more efficient “when it’s under-loaded.” It can handle increases in capacity. Mr. Pugliese said Public Works has “been integrated with this thing right from the very beginning,” so they can resolve local issues, and if they cannot, Johnson Controls is “quickly accessible” to handle the problem. Mr. Pugliese said the municipal court building and City Hall have 5 or 6 days of generator power without the need to refuel. Ms. Smith said they had “replaced 3 units at the fire station,” and are “about 94% done with . . . the mechanical work in the city. • Solar systems are being implemented on 5 city facilities, Ms. Smith said; the City Hall and Fire Station #2 systems have been installed already, and work on the

Council work & regular session minutes October 10, 2017 Page 4 others has begun. Mayor Keyserling said “a lot of money” was spent on “the firehouse on Ribaut Road,” and he is “happy to see solar there,” but he asked if there were some way to “not make it look like it is sprawling,” and instead to “look like it [is] a block.” He said this is only an aesthetic concern. Mr. Pugliese told Mayor Keyserling, “In order not to void what we are doing with Johnson Controls,” the city is determining what it can do without interfering with the efficiency of the solar panels. Ms. Smith said she was glad Mayor Keyserling brought this up. Councilman McFee said he had received some phone calls about why solar panels were installed on the new fire station building, “but then they stopped.” Mayor Keyserling said he still gets calls about it. • Ms. Smith said security systems throughout the city have been expanded and upgraded; a new digital video system and “security access systems” have been installed at the police/municipal court buildings, Fire Stations #1 and #2, and City Hall. This is about 92% complete, she said. • Ms. Smith described the “extensive scope” of the emergency generator system upgrades, so “both facilities could operate under an emergency condition.” Mr. Pugliese said this was proven during Hurricane Irma. The police department “didn’t lose power,” he said, though some “other people” did “for some measure of time.” SCE&G was “going in and out” around a dozen times, Mr. Pugliese said, but the solution for this problem was found for “next time we have a storm.” When there is a storm, power from SCE&G will be shut down, and the automatic transfer switch (ATS) will “activate the generator non-stop” until they can be certain “SCE&G is back up,” when they will “switch the ATS back over.” • A high-efficiency water heater has been installed at the marina, and this project has been completed, Ms. Smith said.

Ms. Smith said Johnson Controls believes the project will be complete by the end of November. Mr. Pugliese said “qualified individuals” will inspect “1,200 separate items” when Johnson Controls’ work is complete in order to “bring it to close out.”

Ms. Smith said the project is on budget and ahead of schedule by 3 months. The generator was fully operational for Hurricane Irma, and communication has been effective and consistent. Energy savings are beginning to be tracked, she said, which is where “a lot of the savings will come from.” Mr. Pugliese said he believes “the November bill” will be the first where the city really sees results.

Ms. Smith said $100,000 in rebates is coming from SCE&G, and Johnson Controls is managing those and “bill credit authorization.”

There being no further business to come before council, the work session was adjourned at 6:20 p.m.

EXECUTIVE SESSION Pursuant to Title 30, Chapter 4, and Section 70 (a) (1) and (2) of the South Carolina Code

Council work & regular session minutes October 10, 2017 Page 5 of Law, Councilman Cromer made a motion, seconded by Councilman Murray, to enter into Executive Session for discussion of proposed contractual agreements for property and development projects and a discussion about personnel. The motion passed unanimously.

Councilman Murray made a motion, second by Councilman Cromer, to adjourn the Executive Session. The motion passed unanimously.

Council work & regular session minutes October 10, 2017 Page 6 A regular meeting of the Beaufort City Council was held on October 10, 2017 at 7:00 p.m. in the Beaufort Municipal Complex, 1901 Boundary Street. In attendance were Mayor Billy Keyserling, Councilwoman Nan Sutton, Councilmen Mike McFee, Phil Cromer, and Stephen Murray, and Bill Prokop, city manager.

In accordance with the South Carolina Code of Laws, 1976, Section 30-4-80(d) as amended, all local media were duly notified of the time, date, place, and agenda of this meeting.

CALL TO ORDER Mayor Keyserling called the regular council meeting to order at 7:02 p.m.

INVOCATION AND PLEDGE OF ALLEGIANCE Councilman McFee led the invocation and the Pledge of Allegiance.

PRESENTATION: HARGRAY COMMUNICATIONS Mr. Prokop said Joel Braun of Hargray Communications was here. The City of Beaufort was awarded $300,000 for improvements at Commerce Park. Hargray understands the importance of economic development in Beaufort and the need for high-speed Internet access at Commerce Park in order for the city to be competitive. At Waterfront Park, the City of Beaufort is providing the equipment, and Hargray is providing free Wi-Fi for a year, Mr. Prokop said.

Mr. Braun said Hargray wants to support what is going on at Commerce Park, and the company looks forward to partnering with the city for years to come. He awarded the check to Mr. Prokop.

PRESENTATION: ECONOMIC DEVELOPMENT UPDATE Mr. Prokop introduced Aura Posner of Dust Solutions, “the first new business to build and expand its business” in Beaufort’s Commerce Park. Ms. Posner said she and her husband had looked at many options and decided to stay in Beaufort. The Commerce Park is in a great location for several reasons, which she enumerated, and the city has been “so resourceful and helpful to us,” so they knew their business and the city will continue to be good partners in the future.

Councilman Murray thanked Mr. Braun for Hargray’s investment in Beaufort Digital Corridor last year and its continued efforts as a city partner. He said Dust Solutions “could have gone anywhere,” and they chose Commerce Park, so he knows the city’s partnership with them will continue to be a great one.

PUBLIC HEARING: DECLARATION OF 1308 PALMETTO STREET AS UNFIT FOR HUMAN HABITATION Mayor Keyserling opened this public hearing. Libby Anderson said staff recommends that the city take action to demolish this structure, which “has been vacant and

Council work & regular session minutes October 10, 2017 Page 7 abandoned for many years.” There has been extensive correspondence with the building’s owner over several years, she said, but the owner has taken no action on it. The property owner was notified of this public hearing by certified and regular mail, and a notice was posted in the Beaufort Gazette and on the property, Ms. Anderson said. Mayor Keyserling closed this public hearing.

MINUTES Councilman McFee made a motion, second by Councilman Murray, to approve the minutes of the council special meeting and work session of September 19, 2017. Councilman McFee said on page 1 of the special regular session minutes, the motions under “Request for Main Street Beaufort . . .” should be clarified to read as “The amended motion passed unanimously, and the motion to approve the request passed unanimously.” On page 3 of the council work session minutes, Councilman McFee said, the reference to a “ground” bar should be a “grab” bar. Councilman Cromer said on page 3 of the special regular session minutes, a period is missing after “$3,747,393.14.” The motion to approve the minutes as amended passed unanimously.

ORDINANCE APPROVING THE SALE OF SURPLUS CITY PROPERTY AT 2519 MOSSY OAKS ROAD AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS FOR THIS SALE Councilman McFee made a motion, second by Councilman Murray, to approve the ordinance on second reading. The motion passed unanimously.

ORDINANCE APPROVING THE SALE OF 0.2 ACRE OF EXCESS CITY PROPERTY ADJACENT TO CHICK-FIL-A ON BOUNDARY STREET AND AUTHORIZING THE CITY MANAGER TO EXECUTE DOCUMENTS FOR THIS SALE Councilman Cromer made a motion, second by Councilman McFee, to approve the ordinance on second reading. Councilman Murray said Chick-fil-A was spelled incorrectly in 2 places in the ordinance.

Councilman Cromer made a motion, second by Councilman Murray, to amend the ordinance to say the purchaser is responsible for all closing costs. The motion to amend passed unanimously.

The motion to approve the ordinance on second reading passed unanimously.

REQUESTS FROM CHILD ABUSE PREVENTION ASSOCIATION (CAPA) TO HOST ANNUAL GHOST TOURS DOWNTOWN BEGINNING OCTOBER 13, 2017 & FOR TWO PARKING SPACES IN THE MARINA PARKING LOT Councilman McFee made a motion, second by Councilman Murray, to approve the requests. The motion passed unanimously.

REQUEST FROM MAIN STREET BEAUFORT TO HOST THE ANNUAL NIGHT ON THE TOWN EVENT

Council work & regular session minutes October 10, 2017 Page 8 Councilman Cromer made a motion, second by Councilman Murray, to approve the request for the December 1, 2017 event. LaNelle Fabian said Main Street Beaufort would not be selling alcohol. The motion passed unanimously.

CO-SPONSORSHIP REQUEST FROM MAIN STREET BEAUFORT FOR THE ANNUAL “LIGHT UP THE NIGHT” BOAT PARADE Councilman Murray made a motion, second by Councilman Cromer, to approve the request for the December 2, 2017 event. The motion passed unanimously.

STREET CLOSURE AND WAIVER OF PARADE FEE REQUEST FROM MAIN STREET BEAUFORT FOR ANNUAL CHRISTMAS PARADE Councilman McFee made a motion, second by Councilman Murray, to approve the request for the December 3, 2017 event. The motion passed unanimously.

RESOLUTION AUTHORIZING APPROPRIATION OF $20,000 TO MAIN STREET BEAUFORT Councilman McFee made a motion, second by Councilman Cromer, to approve the resolution. Councilman Murray said the resolution doesn't reference the specific events. Councilman Murray made a motion, second by Councilman Cromer, to amend the resolution to include the list of events as presented at the September work session by the Chamber of Commerce, when the allocation was discussed. The motion passed unanimously. The original motion passed unanimously.

RESOLUTION TO APPROVE APPROPRIATION OF $10,600 TO THE DOWNTOWN MERCHANTS ASSOCIATION Councilman McFee made a motion, second by Councilman Cromer, to approve the resolution. The motion passed unanimously.

DECLARATION OF 1308 PALMETTO STREET AS UNFIT FOR HUMAN HABITATION Councilman Murray made a motion, second by Councilman McFee, to approve the declaration. The motion passed unanimously.

AUTHORIZATION OF THE CITY MANAGER TO ENTER INTO INTERGOVERNMENTAL AGREEMENT WITH BEAUFORT COUNTY REGARDING SPLIT JURISDICTION OF BUILDING 700, LADY'S ISLAND AIRPORT Councilman Murray made a motion, second by Councilman Cromer, to authorize the city manager to enter into the intergovernmental agreement. Councilman Murray asked Mr. Prokop to point out the parcel on an overhead map.

Mr. Prokop said there are pieces of property at the airport that the city owns and others the county owns. He indicated the property the city owns, and said under this agreement, the planning and development process “will be done under the county requirements,” with the county paying “us for what we assume . . . licensing fees, business license fees, etc.” would be. The idea is to create “a simpler arrangement,” Mr. Prokop said, because “the county could end up owning the hangars,” or it might sell

Council work & regular session minutes October 10, 2017 Page 9 them – so there might not be any business license fees; therefore, the city and the county came to this agreement.

Councilman Murray clarified that the property is owned by the county, “but it was somehow annexed into the city,” and the county will maintain the ownership. Mr. Prokop said that is correct.

Chris Inglese, the county attorney, indicated which parcels at the airport were and were not annexed into the city, and which parcels the county owns that are in the city’s jurisdiction. Two developers want to build “another hangar building,” he said, and he indicated where “expansion of hangar buildings” is to take place, according to the Beaufort County Airport Master Plan, which would mean “the building will actually straddle” the city and county jurisdictions. It would be “impossible” for a private developer “to navigate the regulatory requirements of both jurisdictions,” Mr. Inglese said, and these two developers would “go to another airport to build,” so they came up with this “mechanism” for the developers.

Mr. Inglese described the area covered by the intergovernmental agreement, which says that “when a building straddles both jurisdictions, the county will regulate the planning, zoning and . . . permitting of that building,” and “make an annual payment to the city” of $750 in consideration of stormwater fees “the city would have realized,” with “an additional amount for any business license fees that the city would have realized, had the building been developed wholly on the city property.” The agreement also allows for increases in “stormwater fees . . . over time.” Mr. Inglese said there might be development of another hangar in the future, but “most of them will either be wholly” in the city or the county.

Councilman Murray asked Mr. Inglese if this goes “against the guidance of the Northern Regional Plan. If the parcel were “adjacent to a city-annexed parcel,” he asked, “isn’t the county supposed to encourage it to come into the city?” Mr. Inglese said annexation of “these adjacent parcels” into the city “wasn’t a point of interest for the [county] administration.” Mayor Keyserling said the Northern Regional Plan agreement is that if there is proposed development of property that is contiguous to city property, it could be annexed, so this is “just inconsistent.”

There was general discussion about the ownership of the parcels, particularly in regard to the Northern Regional Plan. Councilman McFee said, “Councilman Murray is correct,” and this “is completely reverse from what we typically pursue,” with the only difference being that “the county’s the owner.” Mr. Inglese said the Northern Regional Plan “encourages annexations for adjacent parcels,” but “annexations are elective for the property owner.” Councilman Murray told him that council understands that, but one of its priorities is “to close donut holes throughout our growth boundaries,” using whatever statutory tools are available to the city “to encourage property owners to annex when necessary.” Asking the city to forgo certain revenues and control of the

Council work & regular session minutes October 10, 2017 Page 10 parcels, Councilman Murray said, is encouraging it not to use this “tool in our toolbox.” He wanted council to be aware that it “might be acting out of the spirit of our Northern Regional Plan,” but he understands the county’s position. Encouraging “development on the airport parcel creates quite a bit of confusion for a developer of the parcel,” he said, but he’ll support the agreement.

Mr. Inglese said the possibility of annexation came up, but the property owners were not interested. “Getting to an agreement” was of paramount importance to the airport director and the developers, and if the parcel were annexed in, the city doesn’t have FAA-compliant airport development standards, he said.

Mr. Prokop, said for the record, this agreement “goes against” the Northern Regional Plan, “but there are reasons for it.”

Councilman Cromer said Gary Kubic is no longer the county administrator, but his name is on the agreement. Mr. Inglese said that would be updated. The motion passed unanimously.

AUTHORIZATION OF THE CITY MANAGER TO ENTER INTO BLANKET EASEMENT AGREEMENT WITH BEAUFORT-JASPER WATER SEWER AUTHORITY (BJWSA) FOR SOUTHSIDE PARK FUTURE WATER AND WASTEWATER LINES Councilman Murray made a motion, second by Councilman Cromer, to authorize the city manager to enter into the agreement. Mr. Prokop said this agreement is with BJWSA to adjust an easement. It has been cleared with Public Works and with the grant that was received for the trail at Southside Park. If the city wants to expand the stormwater pond, “there is room to do that,” he said.

Councilman McFee said the existing easement “comes up on the Southside Drive side . . . from the direction of Talbird Road upward . . . into what was the original effluent pond.” He asked if this agreement “allows expansion from that existing easement.” Mr. Prokop said he’s not sure he “can honestly answer that.” Councilman McFee read from the agreement about mutual agreement on the location of future water lines, and then asked Mr. Prokop, if the city “agrees to this blanket, and we put in the trail,” which he confirmed “doesn’t need to stay out of the 10’” easement, and the city puts “a stormwater pond where the effluent pond was, “does that alter the ability” of BJWSA or the city “to be able to do that,” because “the easement could then eventually be expanded,” which is his “big concern.” He asked if there is anything in this agreement “that would preclude that permitted” stormwater project in Southside Park from “moving forward if we determine that that’s the best direction for our stormwater.” Mr. Prokop said he’d asked Neal Pugliese, Lamar Taylor and Neil Desai, and they’d said, “No. Neither for the trail nor for the stormwater.”

Ms. Anderson described where planning is for the trail, which is “still in the design phase,” and the area has been bush-hogged and is being staked.

Council work & regular session minutes October 10, 2017 Page 11

Councilman McFee asked why the city is “paying for paving if they tear up our roads.” Mr. Prokop said the city “would have to negotiate, at the time, ‘[If] you dig it up, you pay for it.’” Councilman McFee said BJWSA “is a good partner,” but he doesn’t feel the city should go into this – or any – project if there might be “unexpected consequences for us.” The motion passed unanimously.

AUTHORIZATION OF CITY MANAGER TO ENTER IN CONTRACTUAL AGREEMENT WITH SOUTH CAROLINA DEPARTMENT OF NATURAL RESOURCES (DNR) FOR PUMP-OUT BOAT PURCHASE FOR MARINA Councilman Murray made a motion, second by Councilman McFee, to authorize the city manager to enter into the agreement. Linda Roper said this would be “a purchase to replace the current pumpout boat that is at the marina now,” which is 18 years old, with a 6-year-old motor. The boat needs repairs and is unsafe, she said.

DNR manages the federal Clean Vessel Act grant program, Ms. Roper said, and a grant is available that allows marinas to continue to operate pumpout boats and offer pumpout services, which keep sewage out of the water. With this grant, DNR – via the federal government – reimburses 75% of any expenses associated with the pumpout, she said.

The city felt this would be a good time to purchase the boat in its name, Ms. Roper said; Rick Griffin, the harbormaster, owns the current boat. This boat will be newer, hold more waste, and will operate better, so it’ll be used more often, she said. The city would pay for the pumpout boat and get 75% of the cost back, as it will for maintenance, oil, gas, etc., as long as the grant is in place, Ms. Roper said.

Councilman Murray said the boat costs approximately $98,000, and after the DNR reimbursement, the city will pay the remainder of approximately $24,152, so he asked what budget “line” that money is going to come out of. Ms. Roper believes it will come “from when we refinanced the bond.” Mr. Griffin will use the boat until the current marina contract expires in 2019, she said, and then it will be in the city’s possession.

Councilman Murray asked if Mr. Griffin “is interested in taking possession of the new boat.” Ms. Roper said if this is approved, the city will “enter into an agreement with” Mr. Griffin “for a $4,000 trade-in for his old boat.” The $98,000 cost for the new boat “includes that trade-in,” she said. Mr. Griffin would maintain the boat until the end of the marina contract in 2019. No “true maintenance costs” are anticipated, Ms. Roper said, and that will “stay exactly as it is with the current boat.” Mr. Griffin will get the 75% reimbursement for any expenses he incurs from the boat, she said, and the city can also submit any expenses it incurs for 75% reimbursement.

Councilman McFee told Ms. Roper that there needs to be appropriate documentation. Ms. Roper agreed and said that should be in the agreement. Councilman Murray said it should also say that there would be “penalties for non-compliance.” The motion passed

Council work & regular session minutes October 10, 2017 Page 12 unanimously.

CITY MANAGER’S REPORT Mr. Prokop said during Hurricane Irma, “the pumps that pump out the pumpout boat got fried,” and staff has learned of “a 75% grant for those pumps as well” that the city will be applying for.

Mr. Prokop said the city has applied for another $300,000 in grants, and staff is confident it will receive “at least half of that.”

Mr. Prokop said on September 28, a meeting was held about stormwater in Mossy Oaks. Citizens in that area received fliers about the city giving out sandbags, and 235 have been given out so far. The city plans to fill more sandbags if there’s another storm, he said.

Mr. Prokop congratulated the Chamber of Commerce and Main Street Beaufort on “a very successful Shrimp Festival.”

Mr. Prokop said he and Chief Matt Clancy received a letter from Jasper County Emergency Services about helping with outreach to its Hispanic population during Hurricane Irma by providing an officer to translate press conferences into Spanish.

The city and Waste Pro are behind in picking up debris from Hurricane Irma, Mr. Prokop said. The debris pick-up ends this week, after all areas have been picked up.

Mr. Prokop said the strategic goals established at the city council retreat would be reviewed at a work session soon.

Grants will comprise almost 12% of the city’s total budget this year, Mr. Prokop said.

MAYOR’S REPORT Mayor Keyserling said the National Park Service has appointed an interim superintendent of the Reconstruction Era Monument. He is an architect with experience in historic preservation, and he will be here for 3 or 4 months.

Young Leaders of Beaufort appeared before Judge Tupper today, Mayor Keyserling said.

Mayor Keyserling reviewed upcoming meetings and speaking engagements he’ll be attending.

REPORTS FROM COUNCIL Councilman Cromer said the Lowcountry Affordable Housing Coalition had met that day, and Patrick Mullen “gave an update on the affordable housing study for Beaufort County and its municipalities.” Councilman Cromer asked Deborah Johnson to speak

Council work & regular session minutes October 10, 2017 Page 13 about what Mr. Mullen had talked about, and he said he’d provide a copy “of his outline” to council. The interim county administrator “and a number of elected officials” were at that meeting, as well as planning staffs, and stakeholders in affordable housing Ms. Johnson said, and Mr. Mullen “clearly stated” that each municipality and the county would get its own housing needs assessment. By March 2018, the city will receive specific recommendations for the next 5 to 15 years, based on current and projected growth, she said.

Councilman Murray said Thursday, Geismar will have its grand opening; the manufacturer is brining “50 new jobs and almost $3 million [in] capital investment” to Beaufort County. He thanked Mr. Prokop and Hargray for their work over 3 months with the Posners and said there were 2 active prospects in Commerce Park after the Posners “signed on,” but the city got another call today, so they’re back to having 3 active prospects.

Councilman Murray said SCE&G “denied our request for rural tax credit money that we’ve received from Hargray for the last 2 years,” but the request letter “will be kept open as they find resources.”

Councilman Murray reviewed upcoming events in Beaufort, as did Mayor Keyserling and Councilman McFee.

Councilman McFee gave “kudos” to Mr. Pugliese and others for the Boundary Street project, which will “be done before March of 2018.”

There being no further business to come before council, Councilman Cromer made a motion, second by Councilman Murray, to adjourn the regular council meeting. The motion passed unanimously, and the meeting was adjourned at 8:11 p.m.

Council work & regular session minutes October 10, 2017 Page 14 CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/19/2017 FROM: Chief Clancy AGENDA ITEM Authorization to allow City Manager to enter in a Memorandum of Understanding (MOU) with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for TITLE: Violent Crimes Task Force MEETING 10/24/2017 DATE: DEPARTMENT: Police

BACKGROUND INFORMATION:

PLACED ON AGENDA FOR:

REMARKS:

ATTACHMENTS: Description Type Upload Date MOU Backup Material 10/19/2017

CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/20/2017 FROM: Linda Roper AGENDA ITEM Authorization to allow City Manager to enter into Contractual Agreement with the Town TITLE: of Yemassee for Bond Court Services MEETING 10/24/2017 DATE: DEPARTMENT: Municipal Court

BACKGROUND INFORMATION:

PLACED ON AGENDA FOR:

REMARKS:

ATTACHMENTS: Description Type Upload Date Memo Backup Material 10/20/2017 Municipal Court Order Backup Material 10/20/2017

CITY OF BEAUFORT

M E M O R A N D U M

TO: William Prokop, City Manager

FROM: Linda D. Roper, Dir. Of Downtown Operations & Community Services

DATE: October 20, 2017

SUBJECT: Request to Provide Bond Court Services for the Town of Yemassee

The Town of Yemassee is located in Hampton and Beaufort Counties. The majority of the Town’s jurisdiction is in Hampton County however, a recent annexation which included five miles of highway in Beaufort County and a cancellation of a contract with the Beaufort County Magistrate Office has prompted a request to contract with the City of Beaufort for Bond Court Services.

When an incident occurs in Beaufort County and the Police Department arrests a defendant they must transport them to the Beaufort County Detention Center and Bond Hearing a is required within 24 hours. The Town estimates approximately forty (40) arrests in Beaufort County annually.

On September 13, 2011 the Chief Justice Toal signed an order establishing a Centralized Municipal Bond Court in Beaufort County which Judge Ralph E. Tupper presides over and the City contracts with all the other municipalities in the County for Bond Court Services.

I propose that we engage in an Intergovernmental Agreement with the Town of Yemassee which ensures we recoup our total costs for providing clerical and judicial services to all agencies and charge based the percentage of the number of bond hearings and postings we conduct for the Town in comparison to the other agencies.

The elements of the contract should include the following: o $5,000 Minimum charge for clerical; judicial services; postage and supplies o Provide services in the same manner as all other agencies. o Review of total costs, the agency’s total number cases processed and the projected salary costs for the following fiscal year during the month of January of each year to determine if the annual amount of the agreement should be adjusted for the next fiscal year. o Agreement should allow for annual adjustments based on projected costs.

Please let me know if you have any questions or concerns.

CITY OF BEAUFORT DEPARTMENT REQUEST FOR CITY COUNCIL AGENDA ITEM

TO: CITY COUNCIL DATE: 10/19/2017 FROM: Kathy Todd AGENDA ITEM Approval of the FY 2018 TDAC Recommendation on ATAX Grants TITLE: MEETING 10/24/2017 DATE: DEPARTMENT: Finance

BACKGROUND INFORMATION:

The FY 2018 ATAX Applications were made available via the City Website on August 10, 2017 with an original application deadline September 15, 2017. Due to the threat from Hurricane Irma, the deadline was extended until September 29, 2017. Public Notices were published in the Island Packet for both the original deadline and the revised deadline.

The Tourism Development Advisory Committee met on October 13, 2017 for ATAX applicant presentations. Following the completion of the applicant presentations, the Committee went into deliberations, developing the attached recommendations to City Council.

PLACED ON AGENDA FOR:Action

REMARKS:

Request that City Council approve the TDAC recommendations for FY 2018 ATAX grant funding. ATTACHMENTS: Description Type Upload Date TDAC Recommendation for FY 2018 ATAX Grants Cover Memo 10/19/2017 FY 2017 TDAC Meeting minutes Cover Memo 10/19/2017 Toursim Development Advisory Committee FY 2018 ATAX Grant Recommendations October 24, 2017

FY 2017 FY 2017 Other Source FY 2018 FY 2018 TDAC Approved by Applicant for FY - 2017/2018 Program/Event score Request Approved Funds Request Recommended Council Beaufort Regional Chamber of Commerce 2016-2017 Destination Marketing $ 104,500.00 $ 110,000.00 $ 369,610.00 $ 130,000.00 4.91 $ 130,000.00 Beaufort Regional Chamber of Commerce Visitor Center Engagement $ 40,000.00 $ 20,000.00 $ 49,070.00 $ 45,000.00 4.73 $ 30,000.00 SC Lowcountry & Resort Islands Tourism Com 2016-2017 General Promotion $ 23,800.00 $ 15,000.00 $ 511,075.00 $ 27,000.00 4.31 $ 15,000.00 Santa Elena Foundation External Marketing Initiative $ 20,000.00 $ 15,000.00 $ 16,000.00 $ 8,000.00 4.27 $ 7,000.00 Beaufort History Museum Permanent Exhibit Renovation $ 50,000.00 $ 25,000.00 $ 22,450.00 $ 7,450.00 4.27 $ 6,903.00 Exchange Club of Beaufort (for CAPA) Exchange Club Ghost Tours $ 1,800.00 $ 1,800.00 $ 2,491.71 $ 2,000.00 4.23 $ 1,000.00 Experiene Beaufort Package $ 14,000.00 $ 2,000.00 4.01 $ 1,000.00 Friends of the Spanish Moss Trail Mobile App updates/upgrades N/A $ 6,823.00 $ 6,525.00 3.96 $ 4,000.00 Fall Festival House & Garden Tour $ 1,500.00 $ 1,500.00 3.77 $ - Friends of the Spanish Moss Trail Historic points Signage $ 5,000.00 $ 3,467.00 $ 14,281.00 $ 7,000.00 3.67 $ - Pat Conroy Literary Center Pat Conroy Literary Center N/A $ 3,500.00 $ 155,500.00 $ 7,500.00 3.66 $ - Historic Beaufort Foundation Battle of Beaufort Exhibit $ 9,392.00 $ 5,000.00 $ 8,900.00 $ 8,900.00 3.44 $ 6,000.00 Beafort Visitor Guide Ad $ 285.00 $ 285.00 3.32 $ - Wine Down Event $ 14,500.00 $ 2,550.00 2.42 $ - Penn Center, Inc. Penn Center & Heritage Days Marketing$ 20,000.00 $ 10,000.00 $ 56,000.00 $ 25,000.00 1.92 $ - Beaufort County Black Chamber of CommerceCultural Tourism Marketing $ 65,000.00 $ 10,000.00 $ 75,000.00 $ 75,000.00 1.43 $ - Heritage Library Beaufort Promotion of Beufort Heritage Library BranN/A $ 1,000.00 $ 16,000.00 0.00 $ -

$ 371,710.00 $ 200,903.00 $ -

TOTAL AVAILABLE $ 200,903.00 Var $ - A TDAC meeting was held on September 30, 2016 at 9:00 a.m. in the Beaufort Municipal Complex, 1901 Boundary Street. In attendance were Chairman Jonathan Sullivan, committee members Vimal Desai, Susan Sauer, Jeff Evans, and Jane Sidwell, and Michael Ahern, city staff.

CALL TO ORDER Chairman Sullivan called the meeting to order at 8:52 a.m.

MINUTES Ms. Sidwell made a motion, second by Mr. Evans, to approve the minutes of last year’s TDAC meeting. The motion passed unanimously.

The total ATAX dollars available is $392,599.48, Ms. Ahern said. The reserve amount is to be 10% of this year’s ATAX disbursement from the city, which leaves TDAC with $353,340 to disburse.

BEAUFORT REGIONAL CHAMBER OF COMMERCE 1. 2016–2017 Visitor Center Restroom Upgrade Robb Wells, Beaufort Regional Chamber Of Commerce (the City of Beaufort’s DMO [designated marketing organization]), said they want to install a new flushless and touchless system in the Visitor Center’s restrooms, which he said is essential for the Visitor Center because large groups come in. The #1 complaint the Visitor Center receives is about sanitation issues in the restrooms, Mr. Wells said. A second request of this application is to “remove the faucet in the center set.”

The estimate is higher than the final cost will probably be, Mr. Wells said; he reminded the committee that there is a precedent for using ATAX funds “for upgrades.” The Visitor Center’s funds are distributed when invoices were submitted, per a contract, he said.

These contractors would not install “the hand drier option,” Mr. Wells said. City staff could do that. Ms. Sauer asked if they could increase the number of stalls since it’s such a high traffic area. Mr. Wells said he has spoken to Bill Prokop, Beaufort’s city manager, about “a variety of city assets” that need upgrades. Mr. Wells described where the best place would be to put in additional stalls.

Mr. Wells said the Chamber of Commerce leases the Arsenal for the Visitor Center from the City of Beaufort. The lease agreement is for 99 years. The Visitor Center has been in at least 2 other locations before the Arsenal. The Visitor Center is “a great location,” he said.

2. Visitor Center Engagement (for operations – non-personnel expenses) Mr. Wells said the Beaufort Visitor Center is unique because it’s located in a city asset and shares office and floor space with the Beaufort History Museum. It has 35,000–

TDAC meeting September 30, 2016 Page 1 45,000 visitors per year. The sole purpose of the Visitor Center is to be “an extension of ‘Visit Beaufort’ as a whole,” he said. They talk to visitors about the visitors’ guestbook and do fulfillment of literature. Mass distribution of the visitors’ guide is done in Savannah, but the Visitor Center handles about 23,000 guides, Mr. Wells said.

Ms. Sidwell said the Visitor Center is “a good total customer experience.” Chairman Sullivan asked if the Visitor Center partners with other groups on printing. Mr. Wells said yes, they have collaborated with other groups in Northern Beaufort County to produce a bike trail map and a county map “with our branded logo,” as well as with a publishing company “to provide 70,000 district guides,” and with real estate and tour companies and a restaurant.

Ms. Sauer asked what this request would be used for. Mr. Wells replied that it is for “operational costs, which are quite extensive,” and “our research and development pieces (are) in there.” This is “a funding stream” that the City of Beaufort uses to “offset some of the expenditures that come with having an on-the-ground visitors’ center,” he said. Sharing space with the Beaufort History Museum lets the Visitor Center split the heating and air conditioning costs with them. This request wouldn't be used to pay staff, Mr. Wells said; “this is for the operational aspect” of the Visitor Center, and “some of the components that go with it; our research is funded out of this.”

SANTA ELENA FOUNDATION External Marketing Initiative Dr. Andy Beall said the Santa Elena Foundation has been successful in aiding economic development by marketing themselves well. The foundation has been able to get the word out and let people know who they are, when no one had heard of them 6 months ago. The Santa Elena History Center needs to “have a very high quality experience” for visitors, Dr. Beall said. They have “added continuously to the exhibits,” and they are in Phase 2, for which they have raised $80,000. They need $50,000 more so they can include more objects and expand the exhibit. Dr. Beall said the foundation also wants to bring the building the History Center is in “up to federal requirements.”

People are requesting the use of the History Center space after hours, which is drawing more people in, Dr. Beall said. They have had 6,500 visitors to the center, and 7,400 people in 8 days went to the Spanish galleon in Port Royal.

Dr. Beall said a researcher, Dr. Michael Francis, has organized a group to travel with him and will be in Beaufort this weekend for “a pretty exciting series of activities.” Dr. Francis has put together an ancestry record of those who were at Santa Elena.

Dr. Beall said the specific request to TDAC is based on Mr. Wells’ recommendations about marketing. The Santa Elena Foundation is looking at digital ads for the History Center, which, along with billboards, “have been a strong.” They have some print ads in

TDAC meeting September 30, 2016 Page 2 their request, too, and Hargray will produce a video for them as a public service if Santa Elena makes one.

Ms. Sidwell suggested that the cruise ships might be a good audience for the Santa Elena History Center; they seem like they have “untapped potential,” she said.

Dr. Beall said that the ATAX program requires matching funds; for those, they “go to the business community” and explain that for every $1 that is donated, they will pursue ATAX funds and use them under the direction of the DMO.

Chairman Sullivan asked about a combo ad buy with the Beaufort History Museum. Dr. Beall said Santa Elena, the Beaufort History Museum, and Historic Beaufort Foundation (HBF) have a sticker program now that gives visitors to one of the museums a discount when they go to the others.

Chairman Sullivan asked where Santa Elena History Center tickets are sold; Dr. Beall said at the Visitor Center, the marina, through the tour companies. Chairman Sullivan asked if the organization has an “appetite to sell them at hotels.” Dr. Beall said, “Absolutely,” and he’d like to offer complimentary admissions to concierges, etc.

Mr. Desai asked about the TV ad. Dr. Beall said Santa Elena has worked on ads in the past with WHHI, where they run; the organization also puts the ads on its website and social media. Hargray has a cooperative public service agreement, which means they will share the ad with other cities, such as Greenville and Columbia, so it gets wider distribution.

Dr. Beall said 40% of Santa Elena History Center’s visitors are from outside Beaufort County, plus they get local people who bring their out of town guests.

Mr. Desai asked the cost to visit the Santa Elena History Center, and Dr. Beall said admission is $10.

EXCHANGE CLUB OF BEAUFORT (FOR CAPA) Marketing the Exchange Club’s Ghost Tours Jessie Chapman said they recommend dining and shopping to those who attend the ghost tours. The tours run on weekends, and 2,000 people attended last year. She said they have been asked to capture the zip codes of participants, so a zip code is required to make a reservation. They also send surveys via email to those who attend, which includes asking if the participants stayed overnight. Ms. Chapman described the data the group was able to gather from these surveys and the number of ghost tour participants who live outside a 50-mile radius of Beaufort.

The Exchange Club would like to purchase an insert about the ghost tours in the Columbia paper for “4 Thursdays,” Ms. Chapman said. They also will get 62,000+ online

TDAC meeting September 30, 2016 Page 3 impressions with this ad buy (e.g., when people search for things like “fall activities”) and 55,000 impressions on mobile devices that target people based on where they are at the time they search. Ms. Chapman said about 50% of those who participated in the ghost tours this past year were “new visitors.” They have 276 people on average each night, she said.

Ms. Chapman said the Exchange Club expects to have higher attendance this year than before because walking tours will be available all 9 nights this year, and they are adding a night of tours. The first tour is October 13, and Ms. Chapman said they have sold 340+ tickets so far. Chairman Sullivan asked if the applicants know how many people buy ghost tour tickets before they get to town. Charmian Hedrick explained what they know so far this year.

The prices for the tours are $22 for adults on a carriage and $12 for children; walking tours are $12 for everyone, Ms. Chapman said. She said the tours go rain or shine.

Ms. Sidwell asked if all of the $28,000 in estimated profits from the tours would go to CAPA, and both women said yes; proceeds go toward CAPA’s operating expenses.

BEAUFORT ARTS COUNCIL 1. ArtPop Event ArtPop is a national program, Delene Miller said, that promotes artists in 11 cities in 7 states. There is a juried competition, and the work of 15 local artists will be displayed on available billboards, “a percentage” of which are outside Beaufort County. The billboard company estimated the billboards get 6 million impressions a year. The benefit to Beaufort, Ms. Miller said, is that “this is a really well-known program,” and it will help Beaufort become “an arts destination.”

Jenny Sanborn told the committee some of the media that had given the program publicity throughout the US. The Arts Council can “see which states are looking at our website,” she said. They had a large event at Tabby Place and “had an increase” in views “from outside of Beaufort,” she said.

Ms. Sidwell asked on which area ArtPop was having the largest impact. Ms. Sanborn said North Carolina. Mr. Evans asked if there was a way to collect data about how many people are being brought to Beaufort by ArtPop. Ms. Sanborn said they could determine that at the ArtPop event.

Ms. Sidwell asked if the Arts Council had worked with Mr. Wells or the Chamber of Commerce. Ms. Sanborn said no, but they have conversed about “hitting drive markets.”

TDAC meeting September 30, 2016 Page 4 Ms. Sauer asked where the billboards are located. Ms. Miller said, “About 50% of them are around Charleston, Edisto, and Savannah.” The pieces are rotated “on available billboard space.”

Ms. Sanborn told Ms. Sidwell that ArtPop is in 11 cities in Florida, Illinois, Pennsylvania, Virginia, North Carolina, South Carolina, and Nevada. Chairman Sullivan said “Beaufort Arts Council” might be hard for people who are driving to search for, so he encouraged the applicants to consider a “shorter URL.” He also suggested they should look at the “4 key sub-brands that our DMO has allowed us to focus on,” and see if “your art fit(s) into” one or more of those sub-brands, which “we know drive tourists.”

Ms. Sanborn said the art that is considered has to be “Lowcountry-themed,” which allows it to fit “one of those brand opportunities.” Chairman Sullivan asked if “artists from anywhere” could apply to be part of ArtPop; Ms. Miller said it “was limited to local artists.” Ms. Sanborn clarified that participation was limited to artists in Beaufort County, which is a limitation ArtPop imposes.

Ms. Sauer asked about buying prints of the art that is on the billboards. Ms. Miller said some of the ArtPop artists have versions of their work for sale, and some don’t. Ms. Sauer said she would like to see those artists who do have lower-priced versions of their ArtPop work sell it in the Visitor Center.

Ms. Sidwell asked how the applicants would describe what motivated them to bring ArtPop to the Arts Council. Ms. Miller said the Arts Council’s goal is to promote arts, artists, and arts education. ArtPop promotes artists and brings people to the Arts Council’s education center, Mather Academy.

Mr. Evans said Mary Segars is an example of one of the artists whose work is on an ArtPop billboard; he asked if someone who saw the billboards with Ms. Segars’ art on it would find a link to her website once they went to the Arts Council’s website. Ms. Sanborn said right now, “it’s a link to an email,” but they could link to artists’ sites, instead.

2. Promotional Marketing Piece – “A Lowcountry Journey through the Arts” Ms. Miller said this marketing piece would “further assist making Beaufort an arts destination.” It would be “shipped to the travel corridors up I-95 from North Carolina to Florida.” A map inside the piece would “highlight” the Beaufort Arts Council and all of the galleries, studios, and other “art-designated areas” within the “arts district” and Beaufort’s new cultural district, Ms. Miller said. It would “guide (readers) to Beaufort as an arts destination.” The piece would also be a keepsake and might bring those who have one back to Beaufort for another visit to “check some of those off.”

TDAC meeting September 30, 2016 Page 5 Ms. Sanborn said the creative aspect of their promotional piece was pulled from Bluffton’s walking map of its historic district. The plan is to feature every gallery downtown and out to St. Helena Island.

Chairman Sullivan mentioned that the BCOC would have an arts center on its new building’s first floor.

Ms. Sidwell asked about the Arts Council’s other sources of revenue. Ms. Miller said their revenue comes from fundraisers, tuition from enrollment in Mather Academy classes, and “general operations grants.”

Ms. Sauer asked if what the committee had been given was a mockup of the proposed marketing piece, and Ms. Sanborn said yes. Ms. Sauer asked if the Arts Council could put it in restaurants and the Visitor Center. Mr. Desai said it seems that a lot of maps of the Beaufort area are being made; the Arts Council could create a digital map that would account for new businesses as they open and for changes as they occur. He said this would also prevent “having so much printing.”

3. Facebook Ad to Promote Beaufort Arts Ms. Miller said targets of this Facebook ad would be in Charlotte, Greenville, Atlanta, and Columbia. There would be “a direct impact on our geographic markets.” Ms. Sidwell asked what the ad would seek to get the target market to do, and Ms. Miller said the ads would encourage people to take classes at Mather Academy.

Ms. Sanborn said in the past 6 months, the Art Council has been implementing “Google ad words,” through Google’s “ad grant program” for nonprofits. People searching for certain “key word tags” are pointed to the Arts Council’s website, she said. This Facebook campaign only targets “the core demographics from the Chamber,” Ms. Sanborn said, such as Charlotte, Greenville, Atlanta, etc., while the Google ad words campaign targets the United States and Canada. The Arts Council gets 42,000 impressions a month, she said, and the majority of click-throughs are from New York, Texas, and California.

Mr. Desai said in 2015, the Arts Council didn’t use the ATAX funds it was granted, and if this happens in the future, the organization could be ineligible for ATAX funds for 2 years. Chairman Sullivan said this is also the case if applicants do not follow other ATAX policies and procedures.

PORT ROYAL SOUND FOUNDATION "Enrich" Co-branded Marketing Campaign (with the Beaufort DMO) Jody Hayward, the foundation’s executive director, described its Maritime Center’s mission and some of its many activities. They have had approximately 30,000 guests at the center so far, she said, and are “seeing a steady increase.” They had been tracking them with a guest book, but now they are asking more questions and giving out cards

TDAC meeting September 30, 2016 Page 6 for guests to fill out. In 6–12 months, Ms. Hayward said the foundation can use that information to “make better-informed decisions,” especially about marketing.

Ms. Hayward said the organization has requested $6,100 from ATAX funds to purchase Trip Advisor ads with the Chamber of Commerce, and for rack cards and posters to distribute around the county with the Chamber of Commerce’s logo. She went on to describe some of the group’s marketing efforts. The foundation knows that the center is not the only reason people come to Beaufort, but they know they will be “one day,” Ms. Hayward said.

The Maritime Center gets a lot of visitors from Savannah and Hilton Head Island and gets tour groups, Ms. Hayward said. The center is very excited about the potential in the collaborations with other organizations that it is doing. She shared an ad campaign that the Maritime Center is planning to do.

Mr. Evans said the Maritime Center is creating “a lot of mass” with its many different programs, and the ad agency it is working with did a good job. Ms. Hayward said the agency is enjoying working with the center.

Ms. Sauer asked if the Maritime Center was available after-hours. Ms. Hayward said yes, they have had groups meet there, and next year, they see “a lot of our income coming from” such rentals.

The Maritime Center is free to visit, Ms. Hayward said. Jennifer Jenkins said the organization’s volunteers are “fabulous” and very enthusiastic about where they live, so they give out rack cards for other attractions. The center’s visitors come primarily from surrounding states, Ms. Jenkins said, and from states that are more distant on holidays and in the summer.

The center’s visibility is increasing “as a connector for groups” that do education, research, etc., Ms. Jenkins said, because the center is “centrally located,” so it “can bring those groups together.” She went on to describe some of the researchers and groups that have come to the Maritime Center to do studies. “This is just the beginning,” Ms. Jenkins said. She added that part of her job is to help the foundation find opportunities for grants.

Ms. Sidwell said many visitors come to the area for its history, and she asked how the Maritime Center ties into that. Ms. Hayward said the center has an exhibit about the history of shrimping, for example, and they encourage visitors to go to other places, such as to Penn Center to learn more about the culture they may have learned a little bit about at the Maritime Center.

FRIENDS OF HUNTING ISLAND STATE PARK Hotel Park Pass Program

TDAC meeting September 30, 2016 Page 7 Mary Ann Radke said the program “has been so popular with the hotels,” which she listed. Conservatively, the group estimates more than 350 families have used these park passes, with requests to use them almost every day. The Friends of Hunting Island are asking for partial funding for a total of 23 passes at $75 each, Ms. Radke said. The grant they are requesting from ATAX would fund a third of that total; the Friends of Hunting Island would fund a third, and the hotels would fund a third.

Mr. Evans asked if the hotels and inns listed in the application have already signed up for the program, and the group is expanding it because they getting other inquiries. Ms. Radke said yes, but those requests were received after the ATAX application was submitted. She said the hotels in the program hadn’t kept precise records, so the Friends of Hunting Island couldn’t say with certainty how many people had used the passes and from where they were visiting.

Mr. Desai asked why the Friends of Hunting Island had only reached out to the 7 hotels and inns listed in their application. Ms. Radke said the group originally did this program on “a whim.” Mr. Desai said he believes every hotel in Beaufort would want to be a part of it, and he’d like his to participate. Ms. Radke said the new manager of Cuthbert House had sought her out for this program.

MAIN STREET BEAUFORT, USA 2016–2017 Festival Promotion LaNelle Fabian explained that Main Street Beaufort “still exists” and still has its own budget and board of directors since the organization “got married” to the Chamber of Commerce. Main Street has been there 6 months, and the organization is “looking forward to some strategic planning” with the chamber after some upcoming events.

Mr. Evans asked about Main Street Beaufort’s marketing strategy, which he noted concentrates on Charleston and Savannah, which are “day trip kinds of things.” He asked if Main Street plans to market its festivals in Charlotte, Greenville, etc. Ms. Fabian said they would like to, and they are working to complement what the Chamber of Commerce is doing. “Charleston folks, we found, do stay” overnight when they come to Beaufort for a festival, she said. Main Street’s reach can go far with digital ads, Ms. Fabian said, and she described some other markets Main Street is reaching. The organization is collaborating with the Chamber of Commerce on a Trip Advisor ad, but Main Street doesn’t want to duplicate the chamber’s efforts.

Ms. Sauer said that runners are a niche market, and people will look for places they can take part in runs, even if they live far away.

Chairman Sullivan asked about the vendor restaurant costs for Shrimp Festival, and Ms. Fabian said the restaurants “pay a fee to participate,” but the amount Main Street collects “does not quite cover the rentals,” plus Main Street “pays (vendors) their money back,” which “is where a lot of that cost comes from.” Main Street Beaufort

TDAC meeting September 30, 2016 Page 8 keeps the vendors’ deposits and might take 15% of what the vendors make if their total is over a certain amount (e.g., $2,500), but they “don’t punish (vendors) for being successful” (e.g., if they make $10,000). The organization also gives away many tickets to volunteers and sponsors, Ms. Fabian said, but it has to pay for what it gives away free.

Chairman Sullivan agreed with what Ms. Sauer had said about runners; Ms. Sauer suggested reaching out to runners’ clubs. They expect to have 400 runners for the Shrimp Festival, Ms. Fabian said.

Mr. Desai asked where Main Street’s billboards are placed: Ms. Fabian said they are on I-95 – if the Chamber of Commerce doesn’t have one there already – on Highway 17, and on other roads in areas outside of the 50-mile radius.

Some of Main Street’s advertising may be “image advertising for downtown Beaufort,” Ms. Fabian said.

The committee took a break at 10:35 a.m. and resumed hearing applications at 10:49 a.m.

BEAUFORT COUNTY BLACK CHAMBER OF COMMERCE Cultural Tourism Marketing Larry Holman said the Beaufort County Black Chamber of Commerce (BCOC) is not asking for ATAX funds for its visitors’ guide, but he wanted to share it with the committee, so he distributed copies to TDAC members.

Liz Mitchell described the advertising that has been “super-successful for us.” She said the new BCOC building is part of “amazing . . . redevelopment” in the Northwest Quadrant and downtown Beaufort. The building is “scheduled to open soon,” and the grand opening will be in January. There will be a gallery on the first floor, with local and regional artists, Ms. Mitchell said. The organization is planning to partner with groups, such as by bringing in a group from Barbados that it has worked with. The gallery will feature a variety of types of art, including performance. Ms. Mitchell said some of the local artists who will be featured are known worldwide, and the BCOC will be “marketing heavily to bring visitors to that gallery” who will require overnight accommodations.

The BCOC concentrates heavily on group tours; “we anticipate increasing that,” Ms. Mitchell said, and they believe with funding for “new marketing . . . we should be able to generate 10,000 room nights in a year.”

Mr. Holman said in the new building, the first floor will have an art gallery and retail; on the second floor, there will be a room for small functions and a commercial kitchen, and on the third floor, the BCOC will have a business incubator. They expect 1,200 people

TDAC meeting September 30, 2016 Page 9 from around the country to attend the grand opening. The gallery will be open 6 days a week from 9 a.m. to 6 p.m. or 7 p.m., Mr. Holman said.

Chairman Sullivan asked about the 10,000 room nights that Ms. Mitchell had said the organization anticipates being able to bring in. Ms. Mitchell said, “We are already bringing in probably 6,000–8,000,” mostly through paid cultural marketing the organization has done “in several different group tour media” for “several years.” The BCOC collaborates with the Beaufort Regional Chamber of Commerce to follow up on leads and requests for group tours. Their online and print ads generate “as many as 200 leads every month from the leisure travellers as well,” Ms. Mitchell said.

Chairman Sullivan asked the purpose of the groups that come; Ms. Mitchell said, “They come for the history and the heritage,” especially for Gullah culture, which brings people here to find “the history they can’t find anywhere else.” There are also African- Americans “looking for their own history.”

Ms. Sidwell asked how the BCOC sees itself partnering with other groups. Ms. Mitchell said they want to explore that more, but they are doing it now with publicity for others’ events and organizations, and they “iron out differences in marketing plans,” to ensure there is no overlap of programming (e.g., they work with other groups to market all of the events at a given time).

Mr. Evans asked if the total number of room nights on the organization’s application – 10,710 – should be amended, because if it’s correct, it would “mean that every single one of these people” in the tour groups and reunions the BCOC brings in “has their own room.” Mr. Holman said, “That was an actual situation versus an overall situation.” 10,000 room nights is “an estimate,” he said. The numbers the organization had given in its application were the people they know stayed in Beaufort accommodations, he said, plus an estimate of “the other folks who came.” Ms. Mitchell said reunions are different than bus tour groups, in that people usually have their own rooms.

Chairman Sullivan said the organization “seem(s) to invest a great deal of money in print advertising,” which is “incredibly expensive” and is difficult to track the lead generation. He asked if the BCOC has looked at online promotion. Ms. Mitchell said, “All of the print has an online element as well.” When the BCOC runs an ad in a print magazine, they’re also “online, year-round,” she said. Mr. Holman said the BCOC has gotten better results “from paper than (from) digital” ads.

Mr. Evans said it appears the BCOC's request for county ATAX this year “is 625% higher than what you received in the previous year.” Ms. Mitchell said in the application’s 2015–2016 overview, “we’re only showing the city portion.” Mr. Evans said, “It says ‘county’ here: $20,000.” Ms. Mitchell explained that the page Mr. Evans referred to was meant to be “an overview” of “the city portion” of the budget, to show how the organization matched the amount given from city ATAX “in order to get

TDAC meeting September 30, 2016 Page 10 reimbursement.” Mr. Holman said the BCOC had received 2 checks from the county in 2015–2016 because the county was “behind,” which may be why “the numbers look like that.”

Mr. Evans said the organization’s media cost for 2015–2016 was just under $30,000, and for 2016–2017, it’s projected to be just under $200,000, which is an increase of more than 600%. Ms. Mitchell said the 2016–2017 budget shows “the whole thing,” including county, city, and state PRT (Parks, Recreation, and Tourism) funds. The BCOC had shown how it spent city funds, not how it spent countywide. She said the organization probably spent $270,000.

Mr. Holman said current membership in the BCOC is 200 people, and it’s increasing. They believe their new building is bringing more members, he said.

SOUTH CAROLINA LOWCOUNTRY AND RESORT ISLANDS TOURISM COMMISSION (aka LOWCOUNTRY TOURISM) 2016–2017 General Promotion Peach Morrison gave out “examples of what we do, as far as hard copies go.” She said Lowcountry Tourism is proud of its website numbers, which have gone up a great deal. Their visitor center’s numbers for foot traffic went up a little, too.

Lowcountry Tourism collaborated with SCATR (South Carolina Association of Tourism Regions) and others to hire BFG, the marketing firm for the state of South Carolina, Ms. Morrison said, and BFG produced 4 video pieces. The organizations are using these in various buys “and getting some great hits,” she said. She described collaborations that Lowcountry Tourism is planning with other groups.

Mr. Evans asked about Lowcountry Tourism’s ad conversion, and Ms. Morrison said it’s done out of Summerville. Ms. Sidwell asked if the organization is on Instagram, and Ms. Morrison said yes, but Lowcountry Tourism is “very junior at it still.” They use Twitter and Facebook, especially with their videos. She said they had recently heard a talk about marketing to millennials.

Chairman Sullivan said ages 35+ are now part of Beaufort’s target demographic. He asked if Ms. Morrison had other activities planned – in addition to the fishing trips she had told the committee about – that would appeal to millennials who want a unique experience. Ms. Morrison described efforts she has made – and is making – to appeal to visitors who want the “experiential piece,” and who will video their experiences for the purpose of sharing them.

Chairman Sullivan asked about Lowcountry Tourism’s involvement with FirstShore. She said there has been “some involvement” with her organization and that group.

TDAC meeting September 30, 2016 Page 11 PENN CENTER Penn Center & Heritage Days Marketing Victoria Smalls, director of development and marketing at Penn Center, said the organization is requesting $20,000 in city ATAX funds. Last year, it spent “every penny” of the $12,000 received from ATAX, she said, and she described how it was spent.

Chairman Sullivan asked if Penn Center does co-marketing with the BCOC. Ms. Smalls said it has, but “not as much with our regional chamber.” The BCOC has put Penn Center in its visitors’ guide, which is something Penn Center pays for. The regional chamber has a “further reach” and has sent visitors to Penn Center from international locations.

Ms. Smalls said Penn Center was a donor to the Smithsonian’s new National Museum of African-American History and Culture, where she said the Lowcountry – largely the Gullah culture in Beaufort County – is represented “beautifully.” Ms. Sidwell asked if Penn Center was “the point place” for that museum, and Ms. Smalls replied, “For now.”

Chairman Sullivan asked about the shift in where Penn Center spends marketing dollars. Ms. Smalls said the organization wants to branch out further and get into larger publications. However, Southern Living ads cost $30,000 for a full page. The organization is looking at Condé Nast, which is expensive, too, even with nonprofit rates. All advertising directs people to Penn Center’s “revamped website,” Ms. Smalls said. Chairman Sullivan said the BCOC plans to spend $49,000 in Pathfinders, so that’s “a huge opportunity” for collaboration with Penn Center. He went on to mention other opportunities where he thinks Penn Center should consider collaborating.

Ms. Sauer said Mr. Wells invites travel writers to Beaufort, and she suggested that Penn Center should do so, too; the organization could promote education about Gullah culture by offering writers a free weekend. Mr. Evans said after 4 or 5 years, the DMO’s invitations to travel writers “are really starting to pay off.” Ms. Smalls described how Penn Center is starting to “hone in on the civil rights story” that took place there.

Chairman Sullivan asked what the “contract services” are in the Penn Center budget. Ms. Smalls said the organization has had to up its security at Heritage Days, and some performers who used to perform free are now charging.

Chairman Sullivan asked if there has been a shift in focus to online marketing at Penn Center. Ms. Smalls said yes. She’s in charge of social media, and a short film has reached 22,000 people. Penn Center does “constant Facebook and Twitter” and some Instagram. There is more that can be done with online giving with Instagram. Chairman Sullivan told her about Google ad words for nonprofits, and Ms. Smalls said Penn Center’s application is in and “pending.”

Chairman Sullivan asked about the 25% of people who “are returning” participants. Ms. Smalls said the organization is able to track “RV-ers” who return, school children, and

TDAC meeting September 30, 2016 Page 12 people who stay in the Penn Center conference center, but it hasn’t been able to track visitors to Penn Center who stay in hotels. Ms. Sauer suggested getting volunteers to survey participants at Heritage Days. Ms. Smalls said she has reached out to USCB for help with that.

Various members of the committee made further suggestions of opportunities for Penn Center for marketing and collaboration with other organizations.

BEAUFORT HISTORY MUSEUM Permanent Exhibit Renovation Katherine Lang said the Beaufort History Museum had estimated that its current exhibit on Reconstruction would bring in 3% more traffic. They feel that the major renovation, for which they are seeking funding from ATAX, would also increase the number of museum visitors. Visitors to Beaufort and the museum are drawn to history, Ms. Lang said, so the Beaufort History Museum “tries to be the gateway for history in Beaufort County,” and sends visitors to the Santa Elena History Center, the Coastal Discovery Museum, etc.

Ms. Lang said the museum would use “The History Workshop,” an exhibit design company they had looked at in 2014, for its renovation. They hope the exhibits will be “even more comprehensive” after the renovation than they are currently. The organization wants visitors to be able to take self-guided, as well as docent-lead, tours.

Ms. Sidwell clarified that the group is seeking funds that they “would focus on the permanent exhibit.” Chairman Sullivan asked if the museum is participating in a Reconstruction program that the Tabernacle Church is doing. Ms. Lang said they had noted collaborative opportunities in the committee’s conversation with Ms. Smalls.

Ms. Sidwell asked Ms. Lang to discuss the renovation that the museum is planning. Ms. Lang explained the group’s focus and its desire “to provide the context” for different aspects of history. They want “to be able to tell the story (of Beaufort) graphically” to visitors, as well as having their docents tell the story, she said.

Steve Guida mentioned the collaborative “museum pass” program, and said people start at the Beaufort History Museum and then go to the Verdier House and the Santa Elena History Center to get discounted admissions with their passes.

Ms. Sidwell confirmed that the requested money would be used to build the present exhibits up so they can better tell Beaufort’s story. Mr. Guida said, “We want to build a new product.”

Chairman Sullivan asked what the museum might charge per ticket after this renovation. Ms. Lang said admission would probably be raised to $10 at that time, but it will always be free for those with military ID.

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80% of the people who come to Beaufort History Museum are from outside of the 50- mile radius of Beaufort, Ms. Lang said. Mr. Guida said those people who come for military graduations have their time mapped out, and they don’t have much of it.

Ms. Sauer asked if the museum would be back to TDAC next year to ask for marketing funds, and Ms. Lang and Mr. Guida both said yes. Mr. Guida said the museum has “bumped up” the use of rack cards in hotels and B&Bs, visitor centers, and the airport.

Chairman Sullivan said the museum’s current marketing strategy is to get people who’ve decided to come to Beaufort to come to the museum. He asked how the museum influences people to decide to come to Beaufort, and Mr. Guida said the organization is working with Mr. Wells on that. Chairman Sullivan noted that Mr. Wells had told TDAC that the #1 sub-brand for Beaufort is “history,” so the museum is “on that.”

Mr. Guida said the organization feels it can “make our product a lot better.” Chairman Sullivan asked if the museum would be able to “scale (its) project down” if it doesn't get all of the funding for which it is applying from the City of Beaufort and the county. Ms. Lang said it could be scaled down, and the renovation will be done, regardless of the amount of funding received. There are ways the renovation could be done for less money, “but we want to do it right,” she said.

Mr. Desai said the applicants had said that 80% of the museum’s visitors come from outside of Beaufort, and he asked if the history museum checks where its out of town visitors come from. Ms. Lang said they’re “from all over the world.” Mr. Guida said they do track it at the point of admission, where they get guests’ zip codes. Ms. Sauer said TDAC would like to see that breakdown in future applications.

USCB 1. & 2. Pat Conroy Literary Festival 2016 and 2017 Bonnie Hargrove said this request is for the festival this year and for next year, because USCB is hoping it will grow. Participants at last year’s event represented 17 different states, she said. Many who have bought tickets for this year “are repeat customers” from last year’s festival. Ms. Hargrove said she was unsure how many tickets have been sold yet. She knows 30 weekend passes have been sold, and all the workshops “have filled up twice,” so she thinks that they have 300–400 festival participants already.

Ms. Sauer asked if those who are getting tickets are “asking . . . about lodging.” Ms. Hargrove said they work with Mr. Wells, and they direct people with questions about accommodations “back to the Chamber side.” The demographic for the festival is an older one (55+), she told Ms. Sidwell, though “a school group from Columbia (is) coming” and will be staying in accommodations in Beaufort. Ms. Sauer asked about the festival’s sponsors, and Ms. Hargrove said the sponsors are donating lodging for the event’s speakers.

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Mr. Desai asked Ms. Hargrove how she knows where those who purchase tickets are coming from. Ms. Hargrove said, “Especially if they’re (buying tickets) online, or they talk to us . . . we get all their information,” including where they heard about the events. She said she did not have that information with her. Mr. Desai and Ms. Sauer both told Ms. Hargrove, “We’d like to see it next year.”

Ms. Hargrove said some of the literary festival’s 40 speakers are coming from out of town, and though their lodging is free, some are bringing family with them who will pay for accommodations. Mr. Desai said last year, TDAC had also requested that Ms. Hargrove provide the data about where those who bought tickets for USCB events live.

2. Center for the Arts (CFA) Renovations Ms. Hargrove said last year, city council had approved USCB’s request for $125,000 for the CFA renovation project. Council awarded $75,000 of that from ATAX funds – though USCB’s former chancellor, Dr. Jane Upshaw, made the original request to council, not TDAC, Ms. Hargrove explained to Ms. Sauer. The money was awarded several months before TDAC was convened in 2015. Ms. Hargrove said she was “here to ask for the remaining $50,000.” A project engineer has been hired, and “we go to bid in November,” and “get new toys next summer,” she said.

USCB will request the $75,000 council awarded it “this month,” Ms. Hargrove said. Chairman Sullivan told Ms. Hargrove that because those ATAX funds have not been spent, she needs to ask the city for an extension. Ms. Hargrove replied, “I think we have already purchased some sound equipment and other things,” so she feels she “can actually come up with . . . $75,000 (in receipts) . . . by October.”

Ms. Sidwell clarified that “the appeal (was) made directly to the city by (Dr.) Upshaw,” and “there was a promise given” of $125,000 total; $75,000 came from last year’s ATAX funds, and this $50,000 request is the remainder.

HISTORIC BEAUFORT FOUNDATION Advertising for “Remnants of the Rice Culture: Agricultural History as Art” Isabella Reeves said HBF is asking for money to advertise an exhibit, “Remnants of Rice Culture: Agricultural History as Art.” The exhibit will be up for 6 months at the Verdier House, including during the home tours. She said HBF would like to advertise the exhibit regionally in Greenville, Augusta, Charlotte, and other cities where “people could easily come for a weekend” in Beaufort. There will be other additional events with this exhibit, Ms. Reeves said.

HBF has received a Donnelley Foundation grant, a Community Foundation grant, and a Humanities Foundation grant for the exhibit; they don’t have “a lot of money left for magazine advertising,” Ms. Reeves said.

TDAC meeting September 30, 2016 Page 15 Chairman Sullivan said the target markets are good, “but print is so expensive,” so he asked Ms. Reeves why HBF doesn’t “go with another media.” Ms. Reeves said HBF would like both day-trippers and weekend visitors to come to the exhibit. The foundation tries to get as much free advertising as it can, such as through HBF’s Facebook page and press releases. The ads have not yet been purchased, Ms. Reeves said, and will not be until HBF has the funding for them.

Chairman Sullivan asked if HBF has looked at digital advertising with Mr. Wells at the DMO. Ms. Reeves said HBF does work with Mr. Wells, and he had told HBF to get this exhibit on its Facebook page. She said they know they “should have individual pages on Facebook” for different events, but no one in the organization is “savvy” about how to do that. Ms. Reeves suggested that TDAC could fund HBF’s hiring of “a digital specialist.” Chairman Sullivan said in a future TDAC application, HBF could ask for funding to hire someone who could do their digital advertising, and it would cost a third of what HBF has requested for print ads.

Ms. Sauer suggested ways HBF could collaborate on this project with other organizations.

Mr. Desai asked if HBF would meet its deadline for reimbursement of the ATAX money that it was granted last year. Ms. Reeves said she did not know.

Mr. Evans said if HBF captures zip code information, TDAC would like to see it in future applications.

Mr. Desai said there is no information about this exhibit on the “Events” page on the HBF website, only an image of the rack card.

FRIENDS OF THE SPANISH MOSS TRAIL Historic and Visitor Directional Signage Frank Emminger said Dean Moss had created a historical sign committee a year ago to indicate points of interest and historical significance on the Spanish Moss Trail when it was a railroad track. Mr. Emminger described some of the history on the trail (e.g., from a trestle, the places where there were battle sites are visible).

Mr. Emminger said he agreed that collaboration is important, and to that end, he reviewed those who are serving on the historical sign committee. On October 27 at 5:30 at the Depot building, the Friends of the Spanish Moss Trail will unveil the trail’s first 7 signs, which he shared with the committee.

The historical sign committee’s mission is “to enhance the enjoyment of the trail,” Mr. Emminger said. These are the first of many signs they will put up, but they will avoid a “proliferation” of them on the trail. The posts on these signs will be made of the railroad tracks, he said.

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Ms. Sidwell said seeing the signs on the trail would “require a lot of walking or biking.” Could those who can’t do those things, such as some visitors ages 55+, have access to that history? Sissy Perryman said the Friends have an idea to have the signs’ information on their mobile app, so everyone can access it.

Mr. Evans suggested that the group might consider a QR code on the signs. Ms. Perryman told Mr. Evans that there is technology that is “beyond QR codes” that they could use to make the signs interactive, but they also don’t want to make it “too interactive,” in which case people would be staring at their phones instead of enjoying the trail.

Mr. Emminger said they will also have way-finding signs that will look different than the history signs, and will tell people on the trail how to get to food, shopping, etc.

Chairman Sullivan asked how close to the trail these signs would be, and Mr. Emminger said they would be to the side, so people reading them wouldn't get hit by a bicyclist. Chairman Sullivan asked if people can go on the trail’s mobile app or its website after they see the signs to get further information. Ms. Perryman said the group wants to make sure people have a reason to go to the trail, so they don’t want to make everything available digitally.

More than 36,000 people go on the Spanish Moss Trail “annually,” Mr. Emminger said, and 4,000 of them “are visitors to the area.” With 9 miles of the trail complete (for an 18-mile round trip), he said, “we’re beginning to attract people from other towns.” Some people “go from town to town just to experience the trail(s)” there, Mr. Emminger said. The Friends of the Spanish Moss Trail are trying to give people a reason to get off I-95 and Highway 17 and come to Beaufort.

Ms. Sauer asked how the group is getting visitors to come to Beaufort. Ms. Perryman said the group has “a very good relationship with the tourism division” of the Chamber of Commerce, which is “using the trail as (the) centerpiece for a lot of their marketing already.” They have approved rack cards “throughout the Southeast,” Ms. Perryman said. The mobile app, which has been up since May, helps the Friends of the Spanish Moss Trail “gather the most analytics” on trail visitors. She said the Friends have gotten 15–25 emails asking about where to stay and where to eat, and for other information that is “beyond the trail.” Ms. Perryman said that she did not have current analytics with her, but with next year’s TDAC application, the organization will have had the app up for 15 months, so it will be able to share something much bigger than “just a summer view.”

Ms. Sauer said TDAC’s mandate is to recommend that ATAX dollars be given to organizations that use them to “bring people here.” Chairman Sullivan added, “Our focus is to drive overnight accommodations” with the Accommodations Tax grants, and

TDAC meeting September 30, 2016 Page 17 in turn, to generate more ATAX funds. Ms. Perryman said now that the trail is nine miles long, it’s easier to market it to visitors, and it’s “attracting attention,” so the Friends need to make it “more of an experience,” and one that leads trail visitors “other places,” such as “into downtown” with way-finding signs. She believes visitors spend an hour and a half to two hours in the morning or afternoon on the trail, which means “they’re staying (in Beaufort) longer.”

Joe DeVito said city council had voted to support the Friends’ putting in sharrows. The group will go to the county and to the Chamber of Commerce board as well. He said they are trying to connect the trail to the rest of Beaufort. Mr. Evans asked about “logistics” on the trail, and Mr. DeVito explained it to him.

Mr. Desai asked about the cycling map project for which the group had received approval for ATAX funds last year but has not submitted receipts for reimbursement. Ms. Perryman said, “It’s a monster project,” and two weeks ago, the group had asked for an extension from the city.

Chairman Sullivan asked if the Friends of the Spanish Moss Trail generated funds in other ways. Mr. DeVito said the mobile app has a donate button. Ms. Perryman said the organization has 7,000 private annual donors, including some from other states who are only part-time residents of Beaufort or who vacation here. Businesses can donate, she said, but they can also “adopt” a section of the trail or an amenity, a plan that has gone very well.

Mr. Desai discussed the group’s Instagram account with Ms. Perryman.

CITY OF BEAUFORT Police Support of Tourism-Related Activities Kathy Todd, CFO for the City of Beaufort, said that because “the tourism population has increased so much” in Beaufort (as demonstrated by increased hotel revenues in the last 1 to 2 years, for example), demands on police services have increased. Council directed staff to look “at other sources to help support police in their efforts” throughout the city.

“Beaufort County is one of” the counties in South Carolina that are considered “high- tourist counties,” Ms. Todd said, so Beaufort is eligible to use ATAX funds for municipal services, including law enforcement, if the expenditure meets the criteria for “tourist- related expenses”: It’s used “to attract or provide for tourists,” and is not used for “an item that would normally be provided by the municipality.” There must also be a high concentration of tourism in the municipality, she said, which Beaufort has, and “the amount of the expenditure must be based on an estimated percentage of the cost attributed to tourists.”

TDAC meeting September 30, 2016 Page 18 Ms. Todd said a USCB-Lowcountry and Resort Islands Tourism Institute study in 2012 indicated that in the Beaufort/Port Royal area, there are “265,641 travellers to and through our city,” which is a 21 to 1 ratio of tourists to residents.

The city’s estimate of a percentage of “the total police salary and benefits” to “help police in support for tourism” was “much more conservative” than “the full percentage that could be utilized under the law,” Ms. Todd said. The city has budgeted $109,732 for police salary and benefits from ATAX funds, which is 2.59% of the police department’s salary and benefits budget. Ms. Todd said this “request . . . was included in the city’s” 2016–2017 budget, as was city council’s wish in 2015, she said, and again in 2016.

Mr. Evans asked if this funding is “to add officers” or is “to pay for time for existing personnel.” Chief Matt Clancy said the police department had added two officers and is “back to our strength of nine years ago.” This funding is for existing personnel, not a new officer. The Spanish Moss Trail is “like a whole new neighborhood for us to patrol,” Chief Clancy said, so the city’s police department had to buy a gas-powered golf cart for that purpose.

Chairman Sullivan asked whether the city’s crime statistics had grown “over the past 4 years.” Chief Clancy said, “They’re pretty much flat,” and will be down this year because of anomalies. He explained how FBI crime statistics are misused. A city of Beaufort’s size (13,000 residents) should be compared to a city with a population of “about 50,000,” Chief Clancy said, “because of our high tourism rate.” Chairman Sullivan told Chief Clancy that he’d asked about crime rates because “you mentioned that tourism has grown 20%, but crime has not,” so he wondered if “this is . . . a resource that we need to continue to add funds into.”

Chairman Sullivan asked if police are provided at no cost for events in Waterfront Park. Chief Clancy said, “They contract officers.” When the police staff events, he said, especially in the summer, most patrol officers don’t get time off, because they work “every other weekend,” plus they’re needed to work festivals on their weekends off.

The police department’s activity will increase when Walmart opens on Lady’s Island, he said, and Beaufort’s new Parker’s gas station has opened on Roseida Road. As the city is “spreading out,” the police are spread “even thinner,” he said. Ms. Todd added that there are more tourists in Beaufort, and therefore more traffic violations, which has an impact on the police.

Chairman Sullivan asked how much the city’s property tax revenue has grown in this same time period. Ms. Todd said the growth in the property tax base has grown roughly 3% each year.

Mr. Desai asked about the police department’s downtown video cameras, for which council had appropriated ATAX funds last year, and if installing the cameras had

TDAC meeting September 30, 2016 Page 19 provided “a benefit” over when there were no cameras downtown. Chief Clancy said the cameras had not been installed yet. Mr. Desai asked when they would be installed. Chief Clancy explained what Ms. Todd called “technical difficulties” with the cameras (e.g., a power source in Waterfront Park). The equipment has been purchased, he said. Ms. Sauer asked how many cameras there would be, and Ms. Todd said 14. Chief Clancy said when city staff had met with the video camera company, it was decided there would be 12 cameras.

Chairman Sullivan asked if a police officer had been added with last year’s ATAX funding, or if the source of the funding was re-appropriated. Ms. Todd said, “There’s a higher concentration of police officer presence downtown.” Chief Clancy said there’s always an officer assigned 24-7 to the “D district,” which includes much of downtown. The tour vehicle coordinator is also downtown “for the horse carriages,” and she patrols the Spanish Moss Trail daily.

Chairman Sullivan asked if police wages grew with last year’s ATAX funding. Ms. Todd replied that the city didn’t add $109,000 to the police department’s wages. Two additional officers were added this year, “so the entire population budget is a little over $4.2 million.”

Ms. Sauer said last year, ATAX funds were used “for the tour vehicle coordinator,” and she asked Ms. Todd if the city was “not asking for money for” that position “this year.” Ms. Todd replied that the tour vehicle coordinator position is “part of” what the city will use ATAX funds for in its 2016–2017 budget.

Chairman Sullivan asked what defines “high-density tourism.” It’s a state designation, Ms. Todd said, “based on the impact (on the) county from tourism.” Chairman Sullivan wondered if, though Beaufort is growing, the city is truly “a high-density tourism market.” Ms. Todd said the state doesn’t “drill down to the municipality level.” Once the county is determined to be high density, “every municipality and government within that county” is also considered high density.

Chairman Sullivan said $109,000 is “a big chunk” of the available ATAX funds. To “continue to drive tourism here,” TDAC’s “charge is to help fund the other applicants,” which is more difficult when $109,000 is pulled out for the City of Beaufort from the $392,000 that is available, he said, and there are almost $569,000 in requests for ATAX funds. Ms. Todd said the $109,000 for the police “is actually in addition to what your allocation is.” She was told that this was not the case.

Chairman Sullivan said the amount that can be given to the other applicants – “to continue to drive more tourism and provide more ATAX and more Hospitality Tax, which . . . brings in a lot more funds than ATAX does” – is “greatly reduce(d).” Looking at this “holistically,” he fears pulling this amount from ATAX for the city “could reduce the amount of marketing and tourism-drive we have, which overall, could reduce the

TDAC meeting September 30, 2016 Page 20 amount of taxable revenues that would come in for the city.” Ms. Todd replied, “Council’s wishes, though, are that a portion of” police salaries and benefits are “allocated out of ATAX.” Council took this position in 2015 and 2016, she said. Police salaries and benefits all came from the general fund before then, she told Chairman Sullivan, “because the city was not taking advantage of the state law” to allocate “a percentage of police salaries and benefits to ATAX.” Council has to budget for ATAX funds by June 30, Ms. Todd added.

The TDAC meeting was adjourned for lunch at 1:30 p.m.

TDAC meeting September 30, 2016 Page 21 The TDAC meeting resumed at 2:05 p.m.

TDAC members decided that at the outset of their discussion, $109,732 would be withdrawn from the total that the committee can recommend for distribution to applicants other than the City of Beaufort; that is the amount the city has already budgeted for police salary and benefits related to tourism. The committee also determined it must withdraw $50,000 from the total to be distributed because council had “promised” that amount to USCB’s CFA the previous year. TDAC had been told in both these cases that council would allocate these funds to the city and USCB. This leaves $232,867 in ATAX funds, and does not account for a reserve fund.

Chamber of Commerce/Visitor Center – The committee agreed to recommend funding the DMO’s marketing request at $104,000. There was discussion about what could be allocated for Visitor Center engagement. The committee agreed that this item would be returned to, and that there would be no funding recommended for the Visitor Center bathrooms.

Santa Elena Foundation – There was general agreement that TDAC would recommend that Santa Elena’s request be fully funded at $20,000.

Exchange Club of Beaufort – Ms. Sidwell suggested recommending that the Exchange Club’s application for the Ghost Tours not be funded, and the committee agreed to that.

Beaufort Arts Council – There was partial agreement among the committee to recommend that council not fund the three applications from the Arts Council. After discussion, the committee agreed to recommend no funding for promotional marketing and a Facebook ad, and to return to the ArtPop application for further discussion.

Port Royal Sound Foundation – The committee agreed to recommend to council that the Port Royal Sound Foundation’s application should be fully funded at $6,100. Mr. Evans said the groups that TDAC agrees should be recommended for full funding were those that were “looking at Beaufort from 40,000 feet.”

Friends of Hunting Island – The committee agreed that while it is a worthwhile project with a good presentation, it does not “bring tourists to town,” so TDAC would not recommend that council fund the Friends of Hunting Island’s hotel pass project.

Main Street Beaufort – Mr. Desai said every local hotel agrees that the festivals that Main Street Beaufort puts on are very good for bringing in visitors to stay in Beaufort’s accommodations.

Mr. Evans said the organization “has turned into a presenting organization for festivals,” which is not what it claims its mission is in its application: to “concentrate on downtown revitalization.”

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Chairman Sullivan said Ms. Fabian is asking for $30,000, but Main Street Beaufort says in its application that it anticipates netting approximately $50,000 from the Shrimp Festival and approximately $30,000 from Taste of Beaufort. Chairman Sullivan said if the organization is not funded, it will continue to have events and will “not fold (its) tents.” Main Street Beaufort has a relationship with the Chamber of Commerce, several members agreed, and a discussion ensued about the extent of that relationship. The matter was temporarily tabled.

BCOC – Ms. Ahern said she’d noticed that the application’s policies and procedures state that “matching funds may not come from other Accommodations Tax sources,” which was not the case for the BCOC, based on the applicant’s “overview of their matching funds,” two-thirds of which comes from the county.

Ms. Sidwell said there’s also no evidence of any substantial collaboration by the organization, and while the gallery “sounds great,” there are no partnering efforts for that, either. She believes that Penn Center has attempted to collaborate with BCOC, but that Penn Center’s efforts have been in vain. TDAC members agreed to recommend $10,000 in ATAX funds for the BCOC.

South Carolina Lowcountry and Resort Islands Tourism Commission – Ms. Sauer explained to the committee what Ms. Morrison does as the director of the organization. There was discussion about the benefits of this organization for Beaufort. Ms. Sauer suggested recommending $15,000, and there was general agreement to this.

Penn Center – Ms. Sidwell said funding this organization “is a vote for the future.” Some TDAC members suggested that Penn Center has had difficulties over the years maintaining its leadership. Mr. Desai said, “People are coming (to Beaufort) to go to Penn Center,” so the organization of the operation is irrelevant.

Several members suggested that TDAC should recommend that council fund Penn Center’s request at $15,000, and Chairman Sullivan suggested that it should be $8,000. The committee agreed to recommend $10,000.

Beaufort History Museum – Chairman Sullivan said plans are “to build a true museum,” and unlike other historic organizations, the Beaufort History Museum represents the whole history of Beaufort. In addition, he said, the museum pass program indicates that visitors go first to the Beaufort History Museum and then go to the Verdier House and the Santa Elena Foundation. TDAC’s recommendation is to fully fund the museum’s request of $25,000.

USCB / Pat Conroy Literary Festival 2017 – Chairman Sullivan suggested that TDAC recommend that council not fund this event for this year, as it takes place October 20, and there was general agreement with this. There was discussion about the amount

TDAC meeting September 30, 2016 Page 23 that was given to USCB for this event last year. Ms. Sidwell said she thinks this event will “become one of the jewels in Beaufort’s crown.” The committee agreed that because of this, TDAC would recommend that council fund the request for next year’s festival at $3,500.

HBF – Mr. Desai recommended that this application not be funded because of the quality of HBF’s marketing materials, including the use of the print piece on the website. Chairman Sullivan said no information was given in the organization’s application about traffic on the HBF website; there is no data from – or receipts submitted for reimbursement for – web development, or for advertising the architects’ tour, for which HBF had been granted ATAX funds the previous year.

Two members suggested not recommending funding of HBF’s application. Chairman Sullivan suggested giving the organization $500 for targeted marketing, which is a lot “for ad words.”

Ms. Sidwell said she was unsure about this application because “the quality of the presentation” was different than it usually is. She said she could not determine an amount she thought TDAC should recommend. Mr. Evans said he would be okay with recommending $500–$1000.

Chairman Sullivan said he didn’t want to give the organization money if it is “not going to use it the right way.” TDAC agreed that it would recommend that council not fund HBF’s request.

Friends of the Spanish Moss Trail – Mr. Desai said he believes this application shouldn't be funded because he feels “locals” use the trail; visitors are not coming to Beaufort to use it, and he doesn’t feel that the Friends of the Spanish Moss Trail showed that tourists come to Beaufort for that purpose. He also doesn’t feel that the plan for signs will work with cyclists and pedestrians on the trail. The map for which the Friends of the Spanish Moss Trail had received an ATAX grant last year is a better idea, Mr. Desai said.

Ms. Sidwell said the group uses social media and has a mobile app, which puts it above many of the other applicants for TDAC funding. Ms. Sidwell suggested recommending $1,500–$2,000 in ATAX funds; Mr. Evans favored $1,500.

Chairman Sullivan said, “The trail is available, and it’s (a) cool” amenity that Beaufort offers, but he agreed with Mr. Desai that visitors are not coming to Beaufort to go on the trail. Mr. Desai said that people do come to Beaufort and spend the night for the ghost tours, but TDAC members had said they didn’t think marketing for the tours should be funded.

Chairman Sullivan proposed recommending $1,500 for the Friends of the Spanish Moss Trail, which the committee agreed to.

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Before returning to the temporarily tabled applications, there was a discussion of the ATAX reserve funds. Ms. Ahern described the purpose of the reserve funds: Each year, the finance department makes its best estimate of what will be coming into the ATAX fund, but if the ATAX doesn’t come in at that level, and there is no reserve, there is less money to be granted.

Mr. Evans said in the past, TDAC had “used every single nickel we had available.”

Chairman Sullivan suggested spending the reserve this year to “continue to grow tourism (and) revenue, which in turn grows ATAX available funds.” He feels “the money does us no good sitting on the shelf.”

Ms. Ahern recommended holding $62,388 in reserve. Ms. Sauer said if there had not been a reserve of $115,000 carried over by last year’s TDAC, there would have only been $190,000 to distribute, and “we wouldn't have even scratched the surface” with that amount. Ms. Ahern explained to Mr. Desai that his hotels pay both city and county ATAX.

Chairman Sullivan said he believes that Hilton Head – not Beaufort – is the reason Beaufort County is designated as “a high-density (tourist) market,” so he doesn’t feel that $109,000 should be pulled from ATAX funds for the City of Beaufort’s police department’s salaries and benefits. Mr. Desai and Mr. Evans agreed with him.

Chairman Sullivan said money in reserve “won’t get us more tourism dollars,” so “let’s put the money to work” by giving it to organizations that “have a plan, (and) want to execute against it.” The money “will drive tourism (through) marketing,” he said, so “let’s let it generate more ATAX dollars.” Next year, Chairman Sullivan said, if there is $200,000+ in ATAX dollars, “and the city wants $110,000, then we’re only giving out $100,000. That’s not our fault.”

Chairman Sullivan said he understands that it is council’s choice to use ATAX funds for the city; they’re elected officials, he said, and it’s their right to do so, but he doesn’t feel that should “deter us from our plan to award people who have a plan and want to use” ATAX funds to “put things to work.” Mr. Desai noted that 40% of the ATAX funds available will go to the City of Beaufort and USCB.

Mr. Evans suggested recommending that council grant the Arts Council $3,000 for ArtPop. Chairman Sullivan said “art and culture” is “one of the 4 categories we know people come here for,” but this project doesn’t put “a lot of art up there.” There’s not “really anything representing” the art and culture category among the applicants’ projects. A discussion about the merits and demerits of this project ensued. Mr. Desai recalled that the committee had similar misgivings about the project last year (e.g., the billboards are unlikely to make those driving past them want to “go to Beaufort now.”)

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Ms. Sidwell said she feels that art on billboards could convey the sense of Beaufort as an arts community. Her concern with the project is that the new Arts Council building is very close to the Beaufort Art Association, but there is no collaboration with that organization or others. She feels that the Arts Council is “in this little bubble,” which makes her not want to recommend ATAX funding for the organization. Mr. Evans agreed that there is insufficient collaboration by the Arts Council with other organizations. Ms. Sidwell said she “would be glad to have this same conversation with the Black Chamber.”

All of the committee members but Chairman Sullivan agreed not to recommend ATAX funding for ArtPop. Chairman Sullivan said he thinks not funding ArtPop would be “a missed opportunity.” Mr. Evans said he has mixed feelings about the Arts Council. Ms. Sidwell said she would have preferred to see an application that centered on the Arts Council’s new building.

Chairman Sullivan said he knows that the Arts Council’s doors are open to any artists. Mr. Evans and Chairman Sullivan discussed the name “The Mather School.”

After further discussion of the ArtPop project, Ms. Sidwell suggested recommending that council not fund ArtPop with ATAX funds, and the committee agreed.

Mr. Desai said the DMO is “right there” at the Visitor Center, which “is a lot of their resources.” He feels $10,000 is “fair” for “Visitor Center engagement.” Mr. Evans suggested $15,000–$20,000. Ms. Sidwell suggested $15,000.

Ms. Sidwell made a motion, second by Chairman Sullivan, not to leave an amount in the ATAX reserve fund. The motion passed 4-1, Ms. Sauer opposed.

Chairman Sullivan and Mr. Desai discussed the fact that ATAX funds are not shown under “Revenue” in Main Street Beaufort’s 2017 budget. Chairman Sullivan said if “you add $15,000 to their gap, that’s what gives you the $49,000 in profit for” Shrimp Festival, and it’s the same for $30,000 for Taste of Beaufort. $30,000 in revenue is “unaccounted for . . . between the 2 events,” Chairman Sullivan concluded.

Ms. Sidwell said giving funds to the Visitor Center – rather than to Main Street Beaufort – “makes more sense” to her, because in the appendix to its application, the Visitor Center discusses “promoting local festivals by . . . having the information there” in the Visitor Center, which she said she assumes would be paid for “out of this fund – the $40,000” the Visitor Center is “asking us for.”

Mr. Evans said the request for ATAX money for Visitor Center engagement does not seem to be allocated for anything specific. Ms. Ahern offered to show the Visitor

TDAC meeting September 30, 2016 Page 26 Center’s reimbursement requests, which she said has been the same for the last few years, to the committee.

Mr. Desai said he’d changed his mind about the number of people Shrimp Festival and Taste of Beaufort bring into local hotels, because “it’s really only 2 busy weekends.” He wondered if the people who come to the festivals Main Street Beaufort puts on fill hotel rooms, or if the festivals are “really for locals.” He thinks that Main Street should not receive more than $10,000 in ATAX funds.

Ms. Sauer said that she is on the Main Street Beaufort board of directors, so she would recuse herself from this discussion.

Chairman Sullivan suggested recommending $8,000 for Main Street Beaufort. Mr. Evans agreed. Ms. Sidwell said she feels $8,000–$10,000 should be recommended. The committee agreed to recommend $8,000 for Main Street Beaufort.

At this point, $28,767 remained to be distributed, Chairman Sullivan noted. He suggested that the committee could change its mind and leave funds in reserve to ensure it didn't have a deficit the following year.

Ms. Sidwell suggested recommending $20,000 for Visitor Center engagement. Mr. Desai suggested $10,000; Chairman Sullivan said, “They pay for a lot of printed marketing material.” The committee reviewed the minutes that pertained to what Mr. Wells had said about the Visitor Center and its “research” function.

Ms. Ahern told the committee that in reviewing the history of ATAX funding for the Beaufort Chamber of Commerce, the Visitor Center’s “engagement has always been fully funded,” while the amount for destination marketing has typically been $10,000– $15,000 less than the amount the DMO requested.

There was a general discussion of funding different organizations at lesser amounts. Chairman Sullivan said that he supports fully funding the destination marketing of the DMO because those funds put “Beaufort in front of (people’s) face(s),” and gets them to come to the city, while the Visitor Center is for people who have already come to Beaufort.

Ms. Sauer said her experience with the Visitor Center is that her tours stop there, and tourists use the restrooms and get maps. The Visitor Center runs out of them “every year,” but Mr. Wells doesn’t print more because they are out of money. She said maps are essential for visitors to find things in Beaufort.

There was a general discussion among the TDAC members about the amounts to recommend for the DMO’s requests, and about the amount of money to leave in the reserve fund.

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The committee decided to recommend $100,000 for the DMO’s destination marketing, and $20,000 for Visitor Center engagement, leaving $13,767 in the city’s ATAX reserve fund.

Ms. Ahern said city council would discuss TDAC’s recommendations at either its October 11 or October 18 meeting. Chairman Sullivan made a motion, second by Mr. Desai, to approve these recommendations. The motion passed unanimously.

The meeting was adjourned at 3:45 p.m.

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