November 8, 2018 Charleston, SC

A meeting of Charleston County Council’s Finance Committee was held on November 8, 2018, in the Beverly T. Craven Council Chambers, Second Floor of the Lonnie Hamilton, III Public Services Building, located at 4045 Bridge View Drive, North Charleston, .

The following committee members were present: Herb Sass, Vice Chairman, who presided, Henry Darby, Anna Johnson, Brantley Moody, Teddie Pryor, Dickie Schweers, and J. Elliott Summey. Chairman Rawl and Mr. Qualey were absent.

County Administrator Jennifer Miller and County Attorney Joe Dawson were also present.

Mr. Pryor moved approval of the Finance Committee Minutes of October 18, 2018, seconded by Mr. Moody, and carried.

The Vice Chairman stated the next item on the agenda was the Consent Agenda. Mr. Summey moved approval of the Consent Agenda, seconded by Mr. Pryor, and carried.

Consent Agenda items are as follows:

FY18 EMS ITEM A Grant in Aid County Administrator Jennifer Miller and Director of Emergency Medical Services Dave Program Abrams provided a report regarding applying and, if awarded, accepting grant funds for the FY18 EMS Grant in Aid Program. It was stated that the South Carolina Department Request to of Health and Environmental Control (DHEC), in accordance with Section 34.8 of the Approve part IB Provisos of the 2018–2019 Appropriations Act, will distribute state appropriated funds for the purpose of improving and upgrading the EMS system. Charleston County’s allocation for Fiscal Year 2018 – 2019, based upon the proportion of the population, is $26,136.30. EMS has the matching funds of 5.5% available.

The DHEC award will be used to purchase five (5) Stair-Chairs from Stryker. These chairs significantly reduce the relative risk of lower back injuries that can result from first responders transporting patients down stairs.

Department Head recommended that Council authorize EMS to apply for and accept the state appropriated grant funding from SC DHEC EMS Grant in Aid Program for $26,136.30 with the understanding that:  The DHEC award will be used to purchase five Stair-Chairs from Stryker.  Once the funds have been accepted, the budget management and reporting become the responsibility of the EMS Department.  No FTE’s are associated with this award.  The 5.5% matching funds are available in the EMS Budget.  The grant period is from July 1, 2018 to June 30, 2019.

FY18 ITEM B Homeland County Administrator Jennifer Miller and Emergency Management Director Jason Patno Security Grant provided a report regarding applying for, and if awarded, accepting a grant from the U.S. Program

Request to Approve -2- November 8, 2018 Finance Committee

Department of Homeland Security through the South Carolina Law Enforcement Division (SLED) Homeland Security Grant Program. It was stated that the Charleston County Emergency Management Department is requesting authorization to apply for and accept if awarded, grant funding of $107,339.35. The LowCountry WMD Regional Response Team is directed by SLED and coordinated by the Charleston County Emergency Management Department. The LowCountry WMD Regional Response Team Equipment is designed to provide on-scene protective measures to ensure for the safety of life, environment, property, and includes, but not limited to, advanced chemical and radiological monitoring and detection equipment. Sustainment of current inventory is paramount for the team to continue its Type I FEMA standard. SLED and the Department of Homeland Security requires an annual drill/exercise.

It was shown that, if awarded, grant funding would be utilized to accomplish the following: 1.Support statewide interoperability. 2.Maintain on-scene accountability and sustainment of current equipment. 3.Update current AreaRae System which is being phased out and will no longer be supported.

ITEM: COST Interoperability $9,332 Equipment & Sustainment $92,007.35 Exercise $6,000 Total $107,339.35

Matching funds on behalf of the county are not required for this grant. There are no FTE’s or vehicles associated with the above referenced grant program.

Department Head recommended that Council approve the Emergency Management Department’s request to apply for and accept if awarded, grant funding in the amount of $107,339.35 through the U.S. Department of Homeland Security (under the 2018 Grant Program) with the understanding that:  Funds are to be used to support statewide interoperability, replace expendable items, and sustain equipment within the county’s existing response inventory.  The grant performance period is from September 1, 2018 through October 31, 2019.  Matching funds are not required.  No FTE’s or vehicles are requested.

Senior Center ITEM C Roof County Administrator Jennifer Miller and Contracts and Procurement Director Barrett Replacement Tolbert provided a report regarding the need to award a contract for the Lowcountry Senior Center Roof Replacement project. It was stated that bids were received from Award of qualified vendors for replacing the roof at the Senior Center located at 259 Meeting Contract Street. This project consists of the complete removal of the existing roof, insulation, flashings; installation of new two-ply modified bitumen membrane and insulation system -3- November 8, 2018 Finance Committee

to the existing structural concrete deck; installation of new flashings, construction of new scuppers, rework of overflow scuppers, installation of new drains and leaders, metal flashings, and all associated miscellaneous work.

It was shown that sealed bids were received in accordance with the terms and conditions of Invitation for Bid No. 5279-18R. The mandatory Small Business Enterprise (SBE) requirement for the solicitation was 12.2% and the Disadvantaged Business Enterprise (DBE) goal was 25%.

Bidder Total Bid Price SBE DBE Percentage Percentage Bone Dry Roofing Company North Charleston, South Carolina 29418 $330,836.00 13.91% 13.91% Principal: Travis Webb IPW Construction Group, LLC North Charleston, South Carolina 29418 $489,460.00 100% 100% Principal: Cyrus D. Sinor

Department Head recommended that Council authorize award of contract for the Senior Center Roof Replacement project to Bone Dry Roofing Company, the lowest responsive and responsible bidder, in the amount of $330,836.00 with the understanding that funds are available in the Facilities Management budget.

Edgar Allen ITEM D Poe Library County Administrator Jennifer Miller and Director of Contracts and Procurement Barrett Roof Tolbert provided a report regarding the need to award a contract for the Edgar Allen Poe Replacement Library Roof Replacement project. It was stated that the Edgar Allen Poe Library Roof Replacement project consists of the complete removal of the overburden and existing Award of Contract waterproofing coating; installation of hot asphalt waterproofing system and liquid polymethyl methacrylate (PMMA) waterproofing coating, metal flashings, concrete deck repairs, replacement of overburden and sodding, repair of spalling concrete at the interior and all associated miscellaneous work.

It was shown that bids were received in accordance with the terms and conditions of Invitation for Bid No. 5312-19L. The mandatory Small Business Enterprise (SBE) requirement for this solicitation is 12.2% and the Disadvantaged Business Enterprise (DBE) goal is 25%.

Bidder Total Bid Price SBE DBE Percentage Percentage IPW Construction Group, LLC North Charleston, South Carolina 29418 $218,165.00 100% 100% Principal: Cyrus D. Sinor *Warrick Group, LLC Sullivan’s Island, South Carolina 29482 $218,375.00 0% 0% Principal: Reid Coyle -4- November 8, 2018 Finance Committee

Watts & Associates Waterproofing, Inc. Columbia, South Carolina 29221 $223,660.00 12.80% 37.39% Principal: Kip McCoy Huss, Inc. Charleston, South Carolina 29407 $373,000.00 15.20% 15.2% Principal: Richard Huss **WaterTight Systems, Inc. Lexington, South Carolina 29071 $542,632.00 100% 11.06% Principal: Randall M. West **Exterior Solutions of Georgia dba Bone Dry Roofing Company $554,636.00 13% 13% North Charleston, South Carolina 29418 Principal: Bob DeGraff * Deemed non-responsive due to not submitting a bid bond. ** Deemed non-responsive due to using wrong bid forms.

Department Head recommended that Council authorize award of contract for the Edgar Allen Poe Library Roof Replacement to IPW Construction Group, LLC, the lowest responsive and responsible bidder, in the amount of $218,165.00, with the understanding that funds are available in the Facilities Department budget.

TST Rivers ITEM E Avenue at Mall County Administrator Jennifer Miller and Director of Contracts and Procurement Barrett Drive Turn Tolbert provided a report regarding the need to award a contract for the TST Rivers Lane/MUSC Avenue at Mall Drive Turn Lane project. It was stated that the project consists of the Children’s construction of an approximately 250LF right turn lane from Rivers Avenue at Mall Drive Facility for the new Medical University of South Carolina (MUSC) Children’s Facility. The work Award of shall include, but is not limited to, removal and disposal of existing asphalt, site Contract excavation, asphalt paving, concrete sidewalk construction, erosion and sediment control, and traffic control. This project will be constructed utilizing the items listed on the bid form in the solicitation.

It was shown that bids were received in accordance with the terms and conditions of Invitation for Bid No. 5316-19C. The mandatory Small Business Enterprise (SBE) requirement for this solicitation is 12.2% and the Disadvantaged Business Enterprise (DBE) goal is 25%.

Bidder Total Bid Price SBE DBE Percentage Percentage Banks Construction Company North Charleston, South Carolina 29418 $110,908.43 17.8% 3.33% Principal: Jafar Moghadam Truluck Construction Inc. Charleston, South Carolina 29407 $115,483.00 27.9% 4.89% Principal: Charles E. Truluck, Jr. IPW Construction Group, LLC North Charleston, South Carolina 29418 $196,538.75 100% 100% Principal: Cyrus D. Sinor Sea Island Land Development, LLC Charleston, South Carolina 29417 $229,674.46 12.6% 20.95% Principal: Joshua Crow Lowcountry Sitework, LLC Charleston, South Carolina 29492 $249,900.00 100% 0% Principal: John Mazzarella -5- November 8, 2018 Finance Committee

Department Head recommended that authorize award of contract for the TST Rivers Avenue at Mall Drive Turn Lane at MUSC Children’s Facility project to Banks Construction Company, the lowest responsive and responsible bidder, in the amount of $110,908.43 with the understanding that funds are available in the Transportation Sales Tax fund.

TST Palmetto ITEM F Commerce County Administrator Jennifer Miller and Director of Contracts and Procurement Barrett Pkwy/Palmetto Tolbert provided a report regarding the need to award a contract for the TST Palmetto Trade Drive Commerce Parkway at Palmetto Trade Drive Intersection project. It was stated that the Intersection project consists of installation of a traffic signal and construction of an approximately 350 LF right turn lane from Palmetto Commerce Parkway to Palmetto Trade Drive. The work Award of shall include, but is not limited to, removal of existing asphalt shoulder, traffic control, Contract asphalt paving, and traffic signal installation. This project will be constructed utilizing the items listed on the bid form in the solicitation.

It was also stated that this signalization improvement project has become critical at the Collins property to accommodate opposing traffic movements from landside developments on both sides of Palmetto Commerce Parkway. Sun Cap is developing multiple buildings to accommodate Medical University of South Carolina (MUSC) and future industrial tenants on the south side of the parkway, while Samet Corporation and the Beach Company are developing a speculative industrial building on the north (opposite) side. The signalization and turn lane systems offered by this project will enhance mobility and safety at this new intersection.

It was shown that bids were received in accordance with the terms and conditions of Invitation for Bid No. 5317-19C. The mandatory Small Business Enterprise (SBE) requirement for this solicitation is 12.2% and the Disadvantaged Business Enterprise (DBE) goal is 25%.

Bidder Total Bid Price SBE DBE Percentage Percentage Red Electrical Designs, LLC Moncks Corner, South Carolina 29461 $438,438.26 100% 100% Principal: Crystal Olheiser Truluck Construction Inc. Charleston, South Carolina 29407 $537,656.00 3.44% 2.42% Principal: Charles E. Truluck, Jr. Lowcountry Sitework, LLC Charleston, South Carolina 29492 $750,000.00 100% 0% Principal: John Mazzarella

Department Head recommended that Council authorize award of contract for the TST Palmetto Commerce Parkway at Palmetto Trade Drive Intersection Improvements project to Red Electrical Designs, LLC, the lowest responsive and responsible bidder, in the amount of $438,438.26 with the understanding that funds are provided through the Economic Development Department.

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The previous item was the last item on the Consent Agenda.

The Vice Chairman stated the next item on the agenda was the Indefinite Delivery Contract and Engineering Services for Transportation Development.

County Administrator Jennifer Miller and Contracts and Procurement Director Barrett Indefinite Tolbert provided a report regarding the need to award indefinite delivery contracts for Delivery Contract/ Transportation Development Annual Allocation Program Engineering Services. It was Engineering stated that submittals were received in accordance with the terms and conditions of the Services Request for Qualifications (RFQ) No. 5304-19C from firms licensed in the state of South Carolina to provide qualifications for the purpose of preparing survey, design and Award of construction plans for various roadway, intersection, pedestrian/bikeway, and drainage Contract construction projects to be rendered under the Transportation Sales Tax Annual Allocation program.

The following firms submitted qualification: AECOM Technical J. Bragg Consulting, Inc. Stantec Consulting Services, Services, Inc. Inc. Michael Baker Davis and Floyd, Inc. Thomas and Hutton International Cranston Engineering Parrish and Partners, TranSystems Corporation LLC Live Oak Consultants, Ramey Kemp and Vaughn & Melton Consulting LLC (LOC) Associates, Inc. Engineers, Inc. Dennis Corporation Reveer Group, LLC W.K. Dickson & Co., Inc. HDR Engineering Inc. of Seamon, Whiteside & Weston and Sampson the Carolinas Associates, Inc. Engineers, Inc. Infrastructure Consulting & Engineering, PLLC

It was also stated that per the terms of the RFQ, it is the intent of the County to identify firms deemed most qualified which will be considered for award of contract not to exceed two years. Delivery Orders for specific projects will be assigned on a rotational basis to best maintain equity in the value of work with exceptions allowed for the following criteria; the nature of the project, the proximity of the firm to the project, the capability of the firm to produce the services in a reasonable time, past performance and the ability to meet the project budget requirements. The County will negotiate a stipulated not to exceed lump sum per phase fee for each Delivery Order for basic services which are estimated not to exceed $200,000.

It was shown that an evaluation committee reviewed the qualifications for compliance with the RFQ requirements and determined the following twelve firms, to be the most qualified in meeting the County’s needs, and recommends awarding contracts to:

 AECOM Technical Services, Inc.  Davis and Floyd  HDR Engineering Inc. of the Carolinas  Infrastructure Consulting & Engineering, PLLC -7- November 8, 2018 Finance Committee

 J. Bragg Consulting, Inc.  Michael Baker International  Ramey Kemp and Associates, Inc.  Reveer Group, LLC  Stantec Consulting Services, Inc.  Thomas and Hutton  TranSystems Corporation  Weston and Sampson Engineers, Inc.

Department Head recommended that Council authorize award of contracts, with the understanding that funds are available in the Transportation Sales Tax, for Indefinite Delivery Contract – Engineering Services for Transportation Development Annual Allocation program on an as-needed basis for various projects throughout the County to the following firms, listed in alphabetic order:

 AECOM Technical Services, Inc.  Davis and Floyd  HDR Engineering Inc. of the Carolinas  Infrastructure Consulting & Engineering, PLLC  J. Bragg Consulting, Inc.  Michael Baker International  Ramey Kemp and Associates, Inc.  Reveer Group, LLC  Stantec Consulting Services, Inc.  Thomas and Hutton  TranSystems Corporation  Weston and Sampson Engineers, Inc.

Mr. Summey moved for approval of the Department Head, seconded by Mr. Pryor, and carried.

The Vice Chairman announced the next item on the agenda was Accommodations Tax Committee.

Accommodation Clerk of Council Kristen Salisbury and Deputy Administrator of Finance Corine Altenhein Tax Committee provided a report in regards to the need for an Accommodations Tax Committee. It was stated that Charleston County Finance staff has been informed by the SC Department of Request to Revenue that unincorporated Charleston County is collecting enough accommodations Consider taxes to warrant establishing an Accommodations Tax Advisory Committee. The state statute regulating Accommodations Tax Advisory Committees states: (A) A municipality or county receiving more than fifty thousand dollars in revenue from the accommodations tax in county areas collecting more than fifty thousand dollars shall appoint an advisory committee to make recommendations on the expenditure of revenue generated from the accommodations tax. The advisory committee consists of seven members with a majority being selected from the hospitality industry of the municipality or county receiving the revenue. At least two of the hospitality industry members must be from the lodging industry where -8- November 8, 2018 Finance Committee

applicable. One member shall represent the cultural organizations of the municipality or county receiving the revenue. For county advisory committees, members shall represent the geographic area where the majority of the revenue is derived. However, if a county which receives more in distributions of accommodations taxes than it collects in accommodations taxes, the membership of its advisory committee must be representative of all areas of the county with a majority of the membership coming from no one area.

In order to meet all of the requirements of the statute, the Deputy Administrator for Finance and Clerk of Council recommend the establishment of an Accommodations Tax Advisory Committee to make recommendations on the expenditure of revenue generated from the accommodations tax with the following seats:

The Committee is composed of seven (7) members who must be residents of Charleston County. The membership of this committee shall be as follows:

1. A representative of the lodging industry whose business is located in unincorporated Charleston County 2. A representative of the lodging industry whose business is located in unincorporated Charleston County 3. A representative of the hospitality industry whose business is located in unincorporated Charleston County 4. Representative of cultural organizations located in unincorporated Charleston County 5. Representative who resides in unincorporated Charleston County West of the Ashley (to include unincorporated areas , James Island, Johns Island, Wadmalaw Island, Hollywood, Ravenel, St. Paul’s areas, Edisto Island) 6. Representative who resides in unincorporated Charleston County East of the Cooper (to include unincorporated areas in Mt. Pleasant, Awendaw, McClellanville, South Santee) 7. Member at large who resides in any area of unincorporated Charleston County

Members are appointed by County Council and will initially be appointed for staggered terms of two or three years and for terms of three years following the initial appointment.

Mr. Pryor asked if this was different from the Local Accommodation Tax with the and Charleston Visitor’s Bureau. Ms. Altenhein stated this is required by State Law from Accommodation money received from the State, not the local accommodations. The requirement is if we bring in more than $50,000, we have to have a special committee to make recommendations to Council on where to donate the money. In the past, we have brought in less than $50,000, but because of the AirBNB money, we have exceeded $50,000.

Mr. Summey moved for approval of the Deputy Administrator of Finance and Clerk of Council’s recommendation.

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Mr. Pryor asked if the committee could be composed of nine members instead of seven and each council member recommend an appointee. Ms. Altenhein stated she did not believe so as the requirements for the composition of the committee are laid out in state law. Mr. Pryor asked Mr. Dawson to look into the state requirement. Mr. Dawson stated he would and provide feedback on Tuesday. Mr. Pryor asked if this matter could be deferred until the next Finance meeting. Ms. Altenhein stated it could. Mr. Summey withdrew his motion.

Mr. Pryor moved to defer this item until the next Finance Committee meeting, seconded by Mr. Moody.

Mr. Schweers asked how much was brought in last year. Ms. Altenhein stated the County brought in around $80,000 last fiscal year. Mr. Schweers stated he thought it would be better to have less members on the committee with such a small amount of money at stake.

Mr. Sass stated Councilmembers would have a hard time selecting members because of the required criteria, but agreed that Mr. Dawson should research the information and report back.

Mr. Pryor stated that if the committee was going to be such a hassle to form, why not tell the State to only send us $49,000. Ms. Altenhein stated another thing to consider would be to ask that the State to consider raising the cap for establishing a committee to $75,000 or $100,000 since every other County is more than likely having the same issue. Mr. Pryor stated that he agreed with Ms. Altenhein.

The Vice Chairman called for a vote on the motion to defer, which passed.

The Vice Chairman stated the Sales Tax Update for Greenbelts would be moved to the end of the agenda and the next item was the FY19 “C” Fund Road Improvement Program.

FY19 “C” Fund County Administrator Jennifer Miller and Transportation Development Director Steve Road Thigpen provided a report regarding the need to approve an agreement with the SCDOT Improvement to allow County staff to manage the “C” Fund Road Improvement Program. It was stated Program that on October 9, 2018 the Charleston County Transportation Committee (CCTC) funded the FY 2019 “C” Fund Road Improvement Program. As has been the practice for Request to many years, County staff administers the funds, engineering design, contracts, and Approve performs construction management services for the CCTC.

It was shown that County managed CTC project costs are reimbursed from funds appropriated for the projects. The CCTC has allocated $5,181,075.00 for resurfacing various State, County, and Municipal roads and an additional $1,481,620.00 for construction of the projects listed in the attached spread sheet titled “CTC FY 2019 Small Project Construction Program”. Other construction projects, not listed on the attached sheet, may be selected at the discretion of the CCTC at a later date.

"C" Funds are derived from state gasoline user fee which is deposited in the County Transportation Fund to be allocated to all counties within the state. "C" Funds are apportioned to each County in the following manner: -10- November 8, 2018 Finance Committee

1. one-third based on the ratio of the land area of the county to the land area of the state, 2. one-third based on the ratio of county population to state population as determined by the latest ten year census, and 3. one-third based on the ratio of rural road mileage in the county to rural road mileage in the state.

The Charleston County Transportation Committee (CCTC) has accepted the responsibility to administer its funding in Charleston County with the daily responsibilities of the program being managed by County Staff.

Department Head recommended that Council authorize the County Administrator to enter into necessary agreement(s) with the South Carolina Department of Transportation and others to enable County Staff to carry out project design, contract administration, and construction management for the CCTC’s FY 2019 “C” Fund Road Improvement Program.

Mr. Summey moved for approval of the Department Head recommendations, seconded by Mr. Pryor, and carried.

The Vice Chairman stated the next item on the agenda was the Ansonborough House Lease Extension.

Ansonborough County Administrator Jennifer Miller and Facilities Director Tim Przybylowski provided a House Lease report regarding the need to approve a lease extension for the Ansonborough House Extension property. It was stated that on February 11, 1982, a 75-year land lease for $1 per year was executed between the County of Charleston and Charleston Area Senior Citizens Request to Services, Inc. to construct a residential apartment building for the use of senior citizens Approve known as the Ansonborough House. This lease was amended in March 1983, to meet HUD requirements for a mortgage, which at the time required a 75-year lease. The lease expiration date was amended to March 2058.

In May 2009, Charleston Area Senior Citizens requested to extend the Lease Agreement for an additional one-year period, in order to meet HUD’s new requirement of 50 years of lease term for refinancing. Council gave authorization to amend the Lease Agreement extending the lease to May 2059. In November 2016, Charleston Area Senior Citizens requested to extend the lease by two years to refinance their loan a second time. Council approved the extension and the lease was extended to January 1, 2067. However, this refinancing deal has not yet closed and Senior Citizens remaining lease term is 48 years. Senior Citizens is requesting to extend the lease for another two-year period so they have a 50-year lease term as required by HUD.

The refinancing deal is scheduled to close on November 30, 2018. The new interest rate for Senior Citizens mortgage will be reduced from 6.20% to 4.60%. The lease term would be revised to begin on January 1, 2019, and expire on January 1, 2069.

Department Head recommended that Council authorize Chairman of County Council to execute a Lease Amendment to allow for two-year lease extension between the County -11- November 8, 2018 Finance Committee

of Charleston and Charleston Area Senior Citizens Services, Inc., to meet their HUD requirements for refinancing the property with the understanding that:

 the amended lease term will begin on January 1, 2019 and terminate on January 1, 2069.  all documents will be reviewed by the Legal Department.

Mr. Pryor moved for approval of the Department Head recommendation, seconded by Mr. Moody, and carried.

The Vice Chairman announced the next item on the agenda was the ReThink Folly Road Study/Consulting Services.

County Administrator Jennifer Miller and Zoning and Planning Director Joel Evans ReThink Folly provided a report regarding a request to partially fund consulting services for the Road Study/ ReThink Folly Road Study. It was stated that in January 2016, County Council adopted Consulting the ReThink Folly Road: A Complete Streets Study and allowed the Chairman to sign a Services Memorandum of Understanding (MOU) as recommended by the Planning Commission, Request to to work cooperatively with Berkeley-Charleston-Dorchester Council of Governments Approve (BCDCOG), the Charleston Area Transportation Study (CHATS), the City of Charleston, the City of Folly Beach and the Town of James Island. The ReThink Folly Road Planning Committee was formed in order to begin implementing the recommendations of the study.

Committee members include representatives from the City of Charleston, the City of Folly Beach, Charleston County, the Town of James Island, James Island Public Service District, BCDCOG, CARTA, SC Department of Transportation, SC Coastal Conservation League, Low Country Local First, Charleston Moves, Charleston Performing Arts, two business owners, and one citizen representative from each jurisdiction. Mayor Woolsey of the Town of James Island is the Committee Chair and BCDCOG is responsible for the coordination and convening for the Committee.

It was shown that this Committee has developed a draft Request for Proposals for consulting services to implement key components of the study. The Town of James Island would act as the contracting representative for the RFP, but the consultant would be selected by the Committee and would have to be approved by Town Council. The proposed contract is for a period of one (1) year with the option to extend for an additional one (1) year period, not to exceed a total period of three (3) years, at the Town’s option, with approval from participating stakeholders.

The proposed annual contract amount is $65,000 per year. The Committee has requested that each of the four jurisdictions contribute funding for the life of the contract. The Town would invoice the jurisdictions periodically. The City of Charleston has committed $20,000 in funding (available in their CY 2019 Budget); the Town of James Island has committed $20,000 in their FY 2018 Budget; and the Committee has requested that the City of Folly Beach commit $7,500 in their FY 2019 Budget. The Committee is requesting that Charleston County contribute $20,000 per year for the life of the contract beginning in FY 2019.

Department Head recommended that Council: -12- November 8, 2018 Finance Committee

 authorize a contribution of $20,000 per year to the Town of James Island for a contract for consulting services for the implementation of the ReThink Folly Road Study recommendations with the understanding that the total contract period is not to exceed three (3) years.

 enter into an IGA or MOU with the Town of James Island, City of Folly Beach, and City of Charleston regarding management and funding of the consultant services to be reviewed by the Legal Department and for the Administrator’s signature.

Ms. Johnson asked how the representatives for the County are chosen. Zoning and Planning Director Joel Evans stated that the COG wrote letters to the County Council Chairman and the mayor of each of the municipalities asking for them to appoint someone. Mr. Sass asked if the County had a representative. Mr. Evans confirmed that the County does have a representative on the committee. Mr. Summey stated that the Chairman chose the County representative. Ms. Johnson asked if there was only one person per entity. Mr. Evans stated he did not know the composition of the committee. Ms. Johnson asked if he would find out because part of Folly Road is in her district, and she would like to be on the committee, as well. Mr. Moody asked who represented the County on the committee. Mr. Summey stated Mr. Qualey was the County’s representative.

Mr. Moody moved for approval of the Department Head recommendation, seconded by Mr. Summey, and carried.

The Vice Chairman stated that the next item on the agenda was the Church Creek Drainage Tax Increment Financing District.

Church Creek County Administrator Jennifer Miller and Deputy Administrator for Finance Corine Drainage TIF Altenhein provided a report regarding a request to participate in the City of Charleston’s Church Creek Drainage TIF District. Ms. Altenhein provided the following information for Recommendation the Committee’s consideration.

What is a TIF? Tax increment financing is a tool to use future gains in taxes to finance the current improvements that will create those gains. When a public project such as a road is constructed, there is an increase in the value of the surrounding real estate, and often new investment is induced (new or rehabilitated buildings, for example.) This increased real estate and investment creates more taxable property, which increases tax revenues. The generated tax revenues are the “tax increment.” Any additional revenues generated in the district due to growth in the assessed value goes to the issuer of the TIF debt, regardless of the taxing jurisdiction.

Where is the district? Tax increment financing is designed to channel funding toward improvements in distressed or underdeveloped areas where development would not otherwise occur. The proposed district is 64 parcels (approximately 928 acres). The backbone of the proposed district is the Bees Ferry Road Corridor, and will include the current and future Glenn McConnell Parkway. A map is included on page B-1 of the attachment. The City has evaluated that area and determined that it meets five of the 20 conditions for blight status (state law requires an area to meet at least five of the conditions to qualify). -13- November 8, 2018 Finance Committee

What is being planned? According to the Church Creek Drainage Redevelopment Project Plan, the City plans to issues approximately $30 million in tax increment bonds with the terms of the bonds not greater than 25 years. The bonds may be issued up to ten years from the date of the district’s establishment. Total district redevelopment costs are estimated to be $45 million. Supplemented by other funding sources (grants, transportation funds, and other appropriations), the City’s public development activities will include protecting and restoring wetlands, investment in improved stormwater drainage systems, and development of water smart parks.

What is the cost? The district currently generates about $203,947 in County property tax revenue. Any growth in the revenue due to increased assessed values following the issuance of the debt to finance infrastructure improvements would be foregone by the County for the period not to exceed 25 years and used to finance the debt.

Department Head recommended that Council determine Charleston County’s position on the creation of the Church Creek Drainage Redevelopment Project Tax Increment Financing District before November 27, 2018.

Mr. Summey moved to approve Charleston County’s participation in the City of Charleston’s Church Creek Drainage Tax Increment Financing District.

Mr. Pryor stated he would second the motion with the understanding that the money stay in the West Ashley area. Mr. Summey stated he would amend his motion to reflect Mr. Pryor’s request.

Mr. Schweers stated that County Council has been very generous with TIF’s. He added that while he does know there are legacy flooding issues in West Ashley that need to get fixed and TIF is a reasonable way to pay for those issues, he would like to see the proceeds only be used for legacy flooding issues in West Ashley, not new developments. The new developers need to pay for their own flooding infrastructure and if there is money left over at the end of the TIF, he did not want that money used for sidewalks or anything other than fixing legacy flooding issues. He stated he would also like to see the TIF be 20 years because the County would be forgoing money that would be raised to offset taxes in the County. Having a long term TIF means a future Council will still be paying for what this Council approved.

Mr. Summey stated that he did not believe the County would be forgoing very much of anything because the County would be retaining the tax dollars it receives today from a mostly developed area. Mr. Schweers stated that the County would be forgoing future tax revenue. Mr. Summey stated that if something is developed the County would not receive taxes on the new development, but so far nothing has been developed in that area so the County is forfeiting $0 today. He stated that he does understand Mr. Schweers’ concerns regarding the legacy flooding issues, but without the new development coming in with new regulations, new zoning, and new building code standards, there is no increment to pay for the legacy problems. The revenue being generated from the new development is going to fix the legacy problems.

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Ms. Johnson asked if Johns Island is being included in this since Johns Island is West of the Ashley and much of the developed portion of Johns Island was in the City of Charleston.

The Vice Chairman recognized City of Charleston Mayor John Tecklenburg who stated that he would attempt to address all concerns by Council. He explained that the city hired a consulting firm to address the flooding due to hurricanes and extreme weather and developing a TIF was determined to be the best path forward to provide funding for the flooding issues. He added that while a TIF allows the money to be used for any other public infrastructure, the City Council had already limited the use of the TIF funds only to be used for drainage improvements. He stated that although he does not expect the drainage improvements to be completed prior to the end of the TIF in 25 years, the City would agree to end the TIF district if it is completed before the 25 years. The TIF is very specific that the money will be used in TIF district or the nearby area of the TIF district so it will not be used on Johns Island, Downtown, Daniel Island or James Island. He stated that he shares Ms. Johnson’s concerns about flooding on Johns Island, perhaps there could be another TIF district formed in that area in the future. Ms. Johnson stated she would like to hear if there is something in the works for Johns Island. Mayor Tecklenburg stated the City has been studying development on Johns Island and plans to use regular drainage funds to fund some of those projects. He stated that he recently returned from the Netherlands where he learned a lot about how that country handles drainage issues and relayed that the City is continuing to work with the Dutch to find solutions that may work to address drainage issues in other parts of the City.

Mr. Schweers asked Mr. Dawson to review the City’s TIF document to ensure it addresses the concerns expressed to include that the money will be used for legacy flooding only and not new development flooding infrastructure.

Mr. Moody asked why some of the properties in the area were not included in the TIF district. Mayor Tecklenburg stated the TIF focused on the undeveloped areas. Mr. Moody stated he understands Mr. Schweers concerns, but he read in the packet that the County was receiving about $205,000 in this area now so it is not a lot of money. Mr. Moody stated that he had spoken with the Mayor prior to the meeting and the Mayor assured him the money would stay in West Ashley. Mayor Tecklenburg stated the City was going to have future drainage projects to fund and the City would be spending at least the amount of the money the TIF district was going to generate on those future projects.

Mr. Pryor stated he understands Mr. Schweers point, but if this property was never developed, the County would receive $0 so any new revenue that incurs is because of this development. Mr. Schweers stated that the area will continue to grow and the TIF was not the catalyst to develop this area. It would be developed with or without the TIF, but in his mind this is a great opportunity to fix legacy flooding problems in the area.

Mr. Moody asked what was being asked of County Council at this meeting.

Mr. Summey restated his motion to approve Charleston County’s participation in the City of Charleston’s Church Creek Drainage Tax Increment Financing District with the understanding that:

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 the proceeds of the TIF will only be used for legacy flooding issues within the area allowed by the TIF.  the TIF district will end when enough funding is generated to complete the proposed projects or 25 years, whichever occurs first.  all documents are to be reviewed by the County Attorney’s Office.

Mr. Sass thanked the mayor for working hard on the flooding and drainage. The improvements that are being made in West Ashley will improve the flow down.

Ms. Johnson stated she would support the TIF, but would like the mayor to send her the information she requested about Johns Island.

Mr. Darby asked the mayor when the City was going to do anything in the Crosstown area regarding the crossover to help protect pedestrians and bicyclists in that area. The mayor stated the City has been working with the DOT on signage and a number of improvements. All have been completed short of building another pedestrian overpass bridge and the DOT will not pay to build it. The police department is focused more on traffic enforcement for those driving under the influence, speeding, and holding those people accountable. Mr. Darby stated that he believed the County and City need to make a collaborative effort to build the overpass bridge for the sake of human lives. Mayor Tecklenburg stated there was another study done, and it was proposed that the DOT build a pedestrian bridge near the medical district so there are some things in the work.

The Vice Chairman called for a vote on the motion, which carried.

The Vice Chairman stated the next item on the agenda was Bond Counsel Services.

Bond Counsel County Administrator Jennifer Miller and Contracts and Procurement Director Barrett Services Tolbert provided a report regarding the need to award a contract for bond counsel services. It was stated that sealed proposals were received from the following qualified Award of firms to provide Bond Counsel Services in accordance with the terms and conditions of Contract RFP No. 5294-19Z.

Haynsworth Sinkler Boyd, P.A. P.O. Box 340 Charleston, South Carolina 29402

Howell Linkous & Nettles. LLC 106 Broad Street Charleston, South Carolina 29401

McNair Law Firm, P.A. 1221 Main Street Columbia, South Carolina 29201

Pope Flynn Group 170 Meeting Street, Suite 510 Charleston, South Carolina 29401

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It was shown that an evaluation committee reviewed the proposals for compliance with the RFP requirements. After evaluating the capabilities and qualifications of the firms and their proposed cost, the committee determined the proposal from Howell Linkous and Nettles, LLC to be the most advantageous in meeting the County’s needs and recommends awarding a contract.

Department Head recommended that Council authorize staff to enter into a contract with Howell Linkous and Nettles, LLC for Bond Counsel Services with the understanding that funding is available as a bond issuance cost.

Mr. Pryor moved for Department Head recommendation, seconded by Mr. Summey, and carried.

The Vice Chairman stated the next item on the agenda was the Sales Tax Update for Greenbelt.

Sales Tax Director of Greenbelt Cathy Ruff stated Greenbelt had been working on a new website Update-- and the website had gone live. She provided an overview of the website to Council and Greenbelt the new online application process.

Presentation Mr. Schweers asked who created the website. Ms. Ruff stated it was a collaborative effort with the IT staff, herself, Peggy Potts, and Jennifer Matto. Mr. Schweers gave kudos to everyone that worked on it and stated that it looks very professional and he appreciated the high quality of work put into it. He added that he looks forward to exploring it more.

Mr. Pryor stated he thought Ms. Ruff and her team had done an excellent job.

Mr. Sass thanked Ms. Ruff and told her she did a great job.

Mr. Sass asked if Council had any other business to bring before the body. Mr. Darby asked who gave the Chairman, Vice Chairman, and the legal department the authority to do an investigation without the majority of Council voting. He stated he would like this item added to the next Council agenda.

There being no further business to come before the Body, the Chairman declared the meeting to be adjourned.

Kristen T. Brame Deputy Clerk of Council