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AND, UH, THANK YOU, UH, FOR BEING PART OF THIS SPECIAL F AND A COMMITTEE MEETING.
UH, ARE WE IN COMPLIANCE WITH YES, SIR.
ARE WE GOOD TO GO ON ZOOM RECORDING IN PROGRESS? YES, SIR, WE ARE.
SHOULD I START OVER? NO, YOU'RE FINE.
UH, MR. AMES MIGHT AS AN ALTERNATE, YOU ARE INVOLVED? NO.
ARE YOU NOT HERE AS AN ALTERNATE? I'M NOT.
THE OTHER FOUR, I'M SORRY, MR. BROWN.
MR. HARKINS? I THINK I'M HERE.
DO WE HAVE AN APPEARANCE BY CITIZEN? NO, SIR.
WE DID NOT RECEIVE ANY VERBAL COMMENTS OR ANY, UH, VERBAL SIGNUP TO SPEAK TODAY OR ANY SUBMITTED COMMENTS.
IS IT TOO LATE TO CALL THEM?
UH, AND THIS IS AN AGENDA ITEM THAT WE HAVE PREVIOUSLY DONE ANNUALLY.
IT INVOLVES, UH, ROLLING FORWARD, UH, EXPENSES THAT WERE UN INCURRED IN THE PREVIOUS FISCAL YEAR, ROLLING THEM FORWARD TO THIS FISCAL YEAR.
UH, JOHN, YOU HAVE A PRESENTATION? I, I, I DO.
AND HOPEFULLY THIS WILL BE, UM, BRIEF AND TO THE POINT.
SO OUR KEY ISSUES TODAY, WE ARE REQUESTING AND BUDGET AMENDMENT, UM, TO CARRY ITEMS THAT WERE APPROVED FOR THE 22 BUDGET, BUT NOT SPENT, WHETHER IT WAS A PROJECT DELAY OR A A, UH, SUPPLY CHAIN ISSUE, UM, TO MOVE FORWARD FROM 22 UNSPENT AT 23 SO THAT THAT AUTHORITY IS SPENT.
AND SOME OF THE PROJECTS HAVE, UM, COST JUNE 30TH, SO THEY'RE ON BOTH SIDES OF JUNE 30TH.
SO WE MOVE THE BUDGET FORWARD TO MATCH THE SPENDING, AND THEN WE HAD A SLIGHT REALIGNMENT OF THE BUDGET, UM, MATCH UP ORGANIZATIONAL CHANGES, UH, BY CURRENT BUDGET, 119 MILLION.
HERE'S OUR FOUR CATEGORIES, GENERAL DEBT, SERVICE, CAPITAL PROJECTS, AND UTILITIES.
SO THIS IS WHAT COUNCIL PASSED, AND THIS IS THE BUDGET THAT WE'RE OPERATING UNDER TODAY.
UM, WHAT WE'RE PROPOSING IS TO ADD $435,000 TO THE GENERAL FUND AND TO ADD $103,000 TO THE STORM WATER FUND TO TAKE OUR TOTAL BUDGET FROM 119,000,005 TO 120000000.0.
SO THAT'S OUR, UM, BIG PICTURE PRESENTATION.
UH, JUST A REMINDER, OUR GENERAL FUND WE TURNED BACK TOWARD TO THE FUND BALANCE AT JUNE 30TH, $3.3 MILLION.
AND SO OF THAT THREE, THREE WE'RE PROPOSING TO SPEND 400,000, UM, THAT WASN'T ABLE TO BE SPENT.
AND THE THREE, THREE WAS LAST YEAR'S SURPLUS, LAST YEAR SURPLUS, UH, AND AN INCREASE IN THE GENERAL FUND RESERVE.
SO OF THAT THREE, THREE, WE PUT THREE THREE BACK INTO BANK.
WE SAY, WELL, WE REALLY WOULD'VE LIKED TO HAVE THIS AND STILL NEED TO SPEND THIS.
AND SO WE'RE PROPOSING TO SPEND 4,000 OF THREE THREE, UM, STORM WATER LAST YEAR, ALL IN, UM, 5 MILLION REVENUE FOR SEVEN.
AND SPENDING NET IS 360,000 TO THE GOOD.
AND WHAT WE'RE PROPOSING IS JUST OVER A HUNDRED THOUSAND, 103,000 IN STORM WATER THAT THEY HAD PROJECTS THAT EXTENDED BEYOND JUNE 30TH.
AND SO THEY'D LIKE TO SPEND THEM IN THE NEW YEAR.
THAT 360 8 28, AS A RESULT OF LAST YEAR, WAS AN INCREASE IN THE STORM WATER RESERVE.
AND SO THE INCREASE IN STORM WATER BUDGET IS COMING OUT OF RESERVE.
AND AS A PORTION OF LAST YEAR'S INCREASE, SO PART OF THE REASON THAT WE HAD A 360,000 INCREASE IN STORM WATER IS THEY HAD SOME PROJECTS THAT DIDN'T FINISH.
AND SO THEY WOULD LIKE TO FINISH 'EM IN THIS YEAR.
WHY DID THE MONEY GO INTO RESERVE IF IT WAS JUST GONNA BE ROLLED FORWARD BY DEFINITION? YEAH.
THE AUTHORITY THE TOWN COUNCIL GIVES TO, UM, MARK AS TOWN MANAGER IS A BUDGETARY FISCAL YEAR.
AND SO THAT EXPIRES ON JUNE 30TH.
AND SO THEN IF WE WANNA DO SOMETHING IN THE NEW YEAR, THEN WE NEED THAT SUPPLEMENTAL AUTHORIZATION FROM TOWN COUNCIL.
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FINANCIAL STATEMENTS ARE DONE EFFECTIVE THE YEAR END, JUNE 30TH, BY DEFINITION, YOU KNOW, REVENUES MINUS EXPENSES, UH, EQUALS EQUITY OR NET RESERVE.AND SO BY DEFINITION, THAT 360 HAS TO GO OR FINDS ITSELF FALLING INTO THE RESERVE RETURN BECAUSE IT HAS TO GO TO ZERO.
NO, BECAUSE, BECAUSE IT'S PRODUCT OR IT'S THE DIFFERENCE BETWEEN GROSS REVENUES, TOTAL EXPENSES, WHAT'S LEFT IS 360.
WE DIDN'T SPEND EVERYTHING WE BUDGETED TO SPEND.
AS A RESULT, IT GETS PARKED IN A RESERVE.
NOW IT'S BEING PULLED OUT TO SPEND ON THE PROJECTS WE HAD ANTICIPATED DOING IN 22.
AND WE CAN'T DO THAT WITHOUT PERMISSION.
SO THE VOTE WE HAD TO ENDORSE THIS ACTIVITY LAST FISCAL YEAR DISAPPEARS AND WE'RE RENEWING OUR POSITION SUPPORT GOING FORWARD TO, TO ALLOW, WE'RE NOT APPROVING ANYTHING NEW.
AND, AND, AND THAT'S, I THINK THE KEY POINT, NOT APPROVING ANYTHING NEW, BUT JUST TO ALLOW THESE TO BE, UM, FINISHED AS WAS, UM, ANTICIPATED IN LAST YEAR'S BUDGET.
UM, HOW DOES THIS COMPARE? UM, AND I THOUGHT THIS WAS A GOOD QUESTION FROM MR. STANFORD THIS MORNING.
I'M LIKE, WELL, HOW MUCH DO WE USUALLY CARRY FOR? AND YOU CAN SEE IT, THIS IS ORANGE OF STORMWATER, BLUE IS GENERAL FUND FOR THE LAST SEVERAL YEARS.
AND SO WE TRY TO KEEP THESE REQUESTS MINIMAL, BUT UM, WE NEED 'EM.
AND SO THAT'S, HERE'S THE AMOUNT.
SO IT'S REASONABLE AND NOT AS BIG AS SOME OF THE PASTS PROJECTS, UM, ARE 45 MILLION 6 71 THAT'S THERE IN THE DIFFERENT CATEGORIES.
I WAS SURE, BECAUSE I THINK JENNIFER HAS MUCH BETTER DESCRIPTIONS THAN I WOULD EVER DO.
SO I WOULD LEAD YOU TO OUR WEBSITE BUILT AND ISLAND SC.GOV, C I P, AND THERE'S A LOT OF DESCRIPTION ABOUT ALL THESE PROJECTS IN THE STATUS.
AND, AND I WOULD ENCOURAGE YOU ALL TO GO THERE FOR THE AUTHORITATIVE DESCRIPTIONS OF HOW THESE ALL BUT, UM, FROM BUD SHARING PERSPECTIVE, 45 MILLION, AND WE HAD A, ANOTHER QUESTION IS, UM, IN THE MATERIALS THAT WASN'T MADE CLEAR, AND I'M TRYING TO MAKE IT A LITTLE BIT MORE CLEAR, WHEN WE BUILT THE BUDGET, THERE WAS AN EXPECTATION THAT THERE WOULD BE 22 MILLION THAT WOULD BE UNFINISHED PROJECTS, AND IT WAS BUILT INTO THE BUDGET AND 23 MILLION IN NEW PROJECTS TO MAKE A TOTAL OF 45 MILLION.
AND THAT, AND THAT'S WHAT TO COUNCIL HAD ADOPTED IN JUNE, BAN JUNE, UM, 45 MILLION.
AND WHEN IT TURNED OUT, WHAT HAPPENED IS OUR EXPECTATIONS WERE A LITTLE DIFFERENT THAN WHAT THE ACTUALS WERE, YOU'LL SEE COMING IN.
SO OUR C IS THE SAME JENNIFER, HISTORICALLY, HOW MUCH CAN YOU BUILD A YEAR HISTORICALLY IN TERMS OF THE TOWN? UM, BEFORE HURRICANE MATTHEW WAS BUILDING AROUND 12 MILLION A YEAR, SOME YEARS A LITTLE HIGHER, SOME YEARS A LITTLE LOWER.
SO IF YOU LOOK AT THAT 45, THAT'S THREE YEARS OR MORE YEAH.
PROJECTS, RIGHT? AND SO WE'RE GONNA BE BACK TO THIS TABLE EVERY YEAR BECAUSE SHE CAN'T, SHE CAN'T EAT INTO THAT ENOUGH TO DECREASE IT.
JENNIFER, I, IF YOU WERE TO HYPOTHESIZE, IS THAT BECAUSE WE DON'T HAVE THE CONSTRUCTION CAPABILITY ON THE ISLAND OR WE DON'T HAVE THE PERSONNEL TO MANAGE THE PROJECTS? IT'S A LITTLE BIT OF BOTH OF THOSE PLUS AVAILABILITY OF MATERIALS, AVAILABILITY OF CONSULTANTS, YOU KNOW, SUPPLY CHAIN ISSUES.
IT'S BEEN A LITTLE BIT OF ALL OF THOSE THINGS.
I THINK WE'RE DOING A LOT BETTER.
UM, AND THE NUMBER, I MEAN TO MR. LENNOX'S POINT WILL ALWAYS BE BACK HERE, BUT WE HAD PLANNED TO CARRY FORWARD A LOT OF THAT.
SO WE'RE JUST HERE WITH THE DIFFERENCE BETWEEN WHAT WE THOUGHT WE WERE AND WHAT WE ACTUALLY ARE CARRYING, WHICH WAS, WELL, LIKE $300,000 OR SOMETHING.
SO PRETTY, PRETTY SMALL, PRETTY SMALL.
UM, UM, I DON'T THINK THERE'S AN EASY SOLUTION TO THE PROBLEM, BUT TO THE DEGREE THAT IN THE THEORY WE HAVE THE MONEY IN THE BANK, IF WE COULD SPEND IT OVERNIGHT, IT WOULD GREATLY ENHANCE THE ISLAND OF PROPERTY VALUES AND APPEAL AND SO ON AND SO FORTH.
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THAT WE OUGHT TO BE THINKING ABOUT HOW WE CAN ACCELERATE THOSE EXPENDITURES.I THINK THAT'S A VERY GOOD POINT.
WE'RE NOT IN THE BUSINESS TO BUILD A RESERVE IN THE C I P FUND.
QUITE THE CONTRARY, THAT RESERVE IS A RESULT OF NOT BEING ABLE TO GET TO THE CONSTRUCTION FOR ALL THE REASONS JENNIFER TALKS ABOUT.
WOULDN'T IT BE, WOULDN'T IT BE INTERESTING TO FIND A WAY TO COMMIT TO THAT, UH, OR TO PUT ZERO IN NEXT YEAR'S BUDGET UNTIL WE CATCH UP WITH THIS? YEAH.
MY, MY QUICK TAKE, UM, IS, IS THERE A POSSIBILITY OF HIRING AN OUTSIDE CONTRACTOR WHO HAS THE CAPACITY TO BUILD THE KIND OF PROJECTS THAT WE NEED TO BUILD AND TURN OVER THAT 23 MILLION TO THAT PERSON WITH A DEADLINE? OR DO WE NOT HAVE THE CAPABILITY INTERNALLY TO CREATE THE PLANS FOR THAT TO HAPPEN? AND THAT'S ANOTHER PART OF THE PUZZLE.
I THINK IT'S MORE, UM, PHYSICAL CONSTRUCTION PROBABLY THAN PLANNING OR PROJECT MANAGEMENT.
WE'RE DOING A LOT OF THE PLANNING RIGHT NOW THROUGH CONSULTANTS.
THERE'S VERY, VERY LITTLE PLANNING GOING ON IN HOUSE.
SO OUR TEAM IS MOSTLY MANAGING CONSULTANTS AND CONTRACTORS, BUT THE PAST SEVERAL BIDS THAT WE'VE PUT OUT, WE'VE HAD ONE BIDDER, LIKE WE HAVE ONE CONTRACTOR THAT WILL DO, JOE NICKS IS THE ONLY ONE.
LIKE HE DOES EVERYTHING FOR US.
AND SO IF WE HAVE HIM WORKING ON TWO OR THREE PROJECTS PLUS ANYTHING ELSE HE HAS, HE'S TAPPED OUT.
AND WHAT'S HIS AVERAGE PROJECT? UH, TOTAL, WHAT'S, WHAT'S THE SIZE OF A PROJECT THAT HE BIDS ON NORMALLY FROM TOWN? THE PAST TWO OR IN THE, UM, ONE 50 TO $200,000 RANGE, BUT THE SHELTER CODE CONNECTIVITY PROJECT WAS A COUPLE MILLION DOLLARS, YOU KNOW, SO THEN HE'S TAPPING OUT HIS, YOU KNOW, GETTING ON THE HIGHER END OF HIS BONDING CAPACITY.
I CAN UNDERSTAND WHY A LOT OF CONTRACTORS PROBABLY AREN'T GONNA THINK IT'S WORTHWHILE BID ON HUNDRED 50,000 PROJECT.
WHEREAS IF THIS IS THEORETICAL, IF THERE WERE A 23 MILLION PACKAGE THAT COULD BE BID TO A REGIONAL DEVELOP, UH, CONTRACTORS, YOU KNOW, THAT'S A DIFFERENT THING.
SO I JUST, WE, I DISCUSSED TRYING TO PAIR UP WITH, UM, THE SCHOOL USES, THEY HAVE A COUPLE ONCA CONTRACTORS AND SO THEY'RE WORKING OFF SUMMER WHILE THEY'RE BRINGING PEOPLE FROM OUT OUT OF TOWN, YOU KNOW, SOMEWHERE ELSE IN THE STATE.
AND IF THEY WERE HERE THEN AND FINISHING IN AUGUST, SEPTEMBER, COULD THEY ROLL INTO, YOU KNOW, KNOCKING OUT A BUNCH OF TOWN PROJECTS IN THE FALL AND INTO WINTER, YOU KNOW, AND THEN WE COULD WORK OUT, YOU KNOW, AN ARRANGEMENT.
WE HAVE SEVERAL ON-CALL CONTRACTORS, BUT EVEN THIS MORNING WE REALIZED THAT THERE ARE FOUR DIFFERENT PROJECT MANAGERS THAT ARE ALL PLANNING TO USE OWEN TO WORK ON ONE OF THEIR PROJECTS IN THE NEXT COUPLE MONTHS.
SO WE ARE HAVING TO, YOU KNOW, THERE'S A LOT OF FORCE TRADING AND NEGOTIATING GOING ON.
IF WE HAD A LARGER, UM, AVAILABILITY OF CONTRACTORS, I THINK YOU WOULD SEE MORE HAPPENING IN THE GROUND.
WELL, I BUY INTO WHAT DAVID IS SAYING, THAT IS, WE'VE GOT THE MONEY THERE, WE HAVE THE NEED FOR THESE, LET'S FIND A WAY TO GET IT DONE.
OR I COULD LOOK AT IT IN A TOTALLY DIFFERENT WAY.
WHY ARE WE ADOPTING A BUDGET OF $22 MILLION IN A YEAR IF WE KNOW DANG GOOD AND WELL, WE'RE NOT GONNA BE ABLE TO SPEND IT.
IT'S, IT'S AN ARTIFICIAL EXERCISE UNLESS IT IS SHOWING THAT WE ARE ALLOCATING FUNDS TOWARDS PARTICULAR PROJECTS.
UH, WE KNOW WE'RE GONNA SPEND IT, WE JUST DON'T KNOW WHEN.
AND WHAT HAPPENS ONCE THIS OCCURS.
AS YOU RECALL, THIS C I P BUDGET GOES THROUGH PLANNING COMMISSION AND BACK TO YOU AND YOU PRIORITIZE, YOU MAY CHANGE HOW YOU FEEL ABOUT THESE PROJECT PRIORITIES YEAR OVER YEAR.
AND WHAT'S GONNA HIT THIS SHEET BIG TIME IS MID TRACK.
IN THE FUTURE, YOU MAY WANT TO NOT BRING IN ANOTHER CONTRACTOR, BUT BRING IN, UH, TWO OR THREE CONSTRUCTION MANAGEMENT FIRMS AND, UH, THEIR, THEIR JOB IS TO BRING ALL THE PIECES TOGETHER, DO VALUE ENGINEERING, AND MAKE SURE THE PROJECT COMES IN ON TIME AND ON BUDGET.
AND IF YOU WERE DEALING WITH THAT ONE PROJECT THAT'S 20, 25, 30 MILLION, ALL YOUR INVESTORS WOULD REQUIRE THAT YOU'RE, YOU BRING IN A CONSTRUCTION MANAGEMENT FIRM.
SO IN THE FUTURE, YOU MAYBE WANNA JUST BRING IN TWO OR OR THREE CONSTRUCTION FIRMS AND MAKE A STATEMENT OF THE PROBLEM.
WHAT COULD YOU DO TO HELP? SOUNDS A GOOD PROBLEM TO HAVE.
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NO.UM, DOES ALL PROCUREMENT, NOT PROCESS, BUT REQUIREMENTS LIGHT UP WITH THESE CONCEPTS, IDEAS THAT WE'RE THROWN AGAINST THE WALL RIGHT NOW? GUESS THAT'S MY QUESTION.
IF THEY HAVE, WE WOULD HAVE TO BE, UM, CAREFUL IN PARTICULAR ABOUT HOW WE ASKED.
AND SO THAT WOULD TAKE SOME, UM, LEGAL HELP.
YOU TALKING ABOUT THE BIDDING PROCESS.
HOW DO WE ASK, HOW DO WE, UM, PUT IT OUT THERE FOR FORBID, AND HOW DO WE PUT IT OUT THERE FOR PURPOSE AND ENSURE THAT WE'RE GETTING THE BEST PRICE THAT THE TOWN SHOULD BE GETTING? I THINK IT'S A, I THINK IT'S A, ESPECIALLY THAT WE NEED TO CONTINUE TO HAVE, UM, WHEN YOU RELATE THIS TO, UM, HURRICANE MATTHEW, WE HAD PEOPLE FROM ALL OVER THE COUNTRY COME AHEAD TO HELP US CLEAN UP.
RIGHT? AND NOT THAT WE ARE AT, AT MAGNITUDE, BUT I THINK WE'RE SIMILAR AS FAR AS THE NEED OF GETTING PROJECTS DONE MORE EXPEDITIOUSLY.
AND OUR STAFF CAN ONLY RUN ON A CERTAIN AMOUNT OF HORSEPOWER.
SO US GETTING INTO THAT BUSINESS IN DIFFERENT WAY GONNA TAKE US, CHANGING THE WAY THAT WE THINK ABOUT IT, THE WAY WE EXECUTE.
SO I THINK IT'S SOMETHING WE NEED TO DISCUSS FURTHER TO CATCH ALL THESE GUYS DOWN IN FORT MYERS AS THEY HEAD NORTH.
I MEAN, SO I THINK IT REALLY MAKES SENSE TO ACCELERATE TO THE EXTENT THAT WE CAN BECAUSE WE'RE OBVIOUSLY, WE'RE, WE'RE PAYING A PRICE FOR THIS.
WELL, AS, AS YOU GO FORWARD IN, IN THE UPCOMING BUDGET IN MARCH, APRIL, MAY OF NEXT YEAR, UH, THIS IS THE ONLY QUESTION YOU HAVE TO ASK YOURSELF.
THE TOWN DEBT SERVICE IS FIXED BY CONTRACT.
HOW MUCH DO YOU WANT TO PUT IN NEW PROJECTS? YEAH.
AND THE PRIORITY, I MEAN, THAT'S, THAT'S REALLY THE STATEMENT FROM TOWN COUNCIL IS THE PRIORITY.
WE NEED TO FIGURE OUT, I GET 'EM ON THE STREET SO WE CAN FIND OUT.
AND I THINK YOUR IDEA ABOUT PROFESSIONAL CONSTRUCTION MANAGEMENT FIRM, THAT SHOULD BE ONE OF THE EARLY TESTS THERE.
OKAY, JOHN, MOVING RIGHT ALONG.
UM, SO OUR MOST AMENDMENT $400,000 TO THE GENERAL FUND, HUNDRED THOUSAND DOLLARS TO STORM WATER FOR 538, UM, GIVES US A PROPOSED TOTAL OF 120 MILLION.
AND JUST FROM A PIE CHART, UM, IT, IT'S, IT'S A RELATIVELY MINOR COMPARED TO THE REST OF THE BUDGET.
SO WE HAD A QUESTION THAT IS THIS TOO BIG OF A, AND I HOPE IT'S NOT TOO BIG.
YOU HOPE THAT, UH, TOWN COUNCIL IS COMFORTABLE WITH, UM, THIS MUCH TO CARRY FORWARD.
UM, AND SO WHAT WE ARE, WE STAFF ARE ASKING IS THAT WE WOULD, UM, ASK YOUR RECOMMENDATION TO TOWN COUNCIL, UM, ON OCTOBER THE 18TH FOR FIRST READING FOR FULL COUNCIL TO CONSIDER THIS.
SO BEFORE US IS THE RECOMMENDATION OF THIS COMMITTEE TO APPROVE THE PROPOSED ORDINANCE NUMBER 2022 DASH 18, WHICH AMENDS FISCAL YEAR 23 BUDGETS FOR THE GENERAL CAPITAL PROJECT AND STORM WATER UTILITY FUNDS AS PRESENTED.
ANY DISCUSSION OR QUESTIONS OF JOHN? IF THERE ARE NONE, WOULD YOU CALL THE QUESTION PLEASE? UH, YES, SIR.
UH, MR. BROWN SUPPORT MR. HARKINS? UH, YES.
UH, ANY OTHER BUSINESS TO COME BEFORE THE COMMITTEE? NOTHING.