Aug 21, 2023 Finance Administration and Economic Development Committee

[00:00:01]

I'D LIKE

[1. CALL TO ORDER]

THIS IS MONDAY, AUGUST 21ST, 2023.

UM, IF EVERYONE COULD, UH, PLEASE, UH, STAND FROM THE PLEDGE OF ALLEGIANCE, IE.

I, THE UNITED STATES OF AMERICA, AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL.

PUBLIC NOTIFICATION OF THIS MEETING HAS BEEN PUBLISHED, POSTED, AND DISTRIBUTED IN COMPLIANCE WITH THE SOUTH CAROLINA FREEDOM OF INFORMATION ACT.

[4. APPROVAL OF AGENDA]

SO MOVED.

ALRIGHT, THANK YOU.

UM, IS THERE ANY OBJECTION TO THE AGENDA OR ANY DISCUSSION? SEEING NO DISCUSSION, GERALD SEEING NO DISCUSSION OR OBJECTION? UH, THE, UH, THE AGENDA HAS BEEN APPROVED.

[5. APPROVAL OF MINUTES- May 8, 2023, May 15, 2023, and June 19, 2023]

MAY 15TH, 2023 AND JUNE 19TH, 2023.

I'LL MAKE THE MOTION.

ALRIGHT.

THANK YOU MR. TABER.

AND A SECOND.

SECOND.

MR. KEL MADE THE SECOND, UH, ANY DISCUSSION? SEEING NO DISCUSSION? IS THERE ANY OBJECTION TO US APPROVING THOSE AND SEEING NO OBJECTION? THEY ALL WILL BE APPROVED.

UH, MOVE ON TO OUR CITIZEN'S COMMENT.

UH, I DON'T THINK WE'VE HAD ANYONE SIGN OFF ONLINE.

IS THERE ANYONE IN THE AUDIENCE THAT WOULD LIKE TO ADDRESS SOME, UH, OUR COMMITTEE, SEEING NO ONE? UM, WE WILL THEN MOVE

[7. DIVISION UPDATE FROM ASSISTANT COUNTY ADMINISTRATOR, DALE BUTTS]

MR. DALE BUSS.

MR. BUSS, THANK YOU FOR BEING HERE TODAY.

WE APPRECIATE YOU COMING FORWARD.

THANK YOU, MR. CHAIRMAN.

GOOD AFTERNOON, EVERYONE.

JUST, UM, COUPLE OF, UH, BRIEF POINTS ABOUT THE, UH, FINANCE DIVISION.

A COUPLE OF THINGS THAT ARE GOING ON.

THE, THE ASSESSOR'S OFFICE IS ON TARGET FOR THE SEPTEMBER 1ST, UH, COUNTYWIDE MAIL OUT OF ASSESSMENT NOTICES.

UH, EBONY SANDERS HAS BEEN MAKING THE ROUNDS THIS SUMMER THROUGHOUT THE COUNTY TO EDUCATE OUR CITIZENS, UH, ON THE PROCESS OF REASSESSMENT AND WHAT TO EXPECT.

AND THANK, THANK YOU ALL ACTUALLY FOR, UH, HOLDING MEETINGS IN YOUR DISTRICTS AND GIVING HER THE, UH, THE OPPORTUNITY TO SPEAK.

BEGINNING OCTOBER 3RD, PERSONNEL FROM HER OFFICE WILL BE AVAILABLE AT LIBRARY LOCATIONS THROUGHOUT THE COUNTY TO ASSIST THE PUBLIC IN THE APPEALS PROCESS, AS WELL AS ANSWER ANY RELATED QUESTIONS.

SO, UH, STAY TUNED FOR A PRESS RELEASE OUTLINING DATES AND TIMES FOR THOSE EVENTS.

AND INCIDENTALLY, A TAXPAYER WILL HAVE 90 DAYS FROM THE MAILING OF THOSE ASSESSMENT NOTICES TO FILE AN APPEAL.

ONE THING THAT, UH, SEVERAL COUNCIL MEMBERS HAVE REQUESTED IS A MONTHLY FINANCIAL REPORT SHOWING DEPARTMENTAL EXPENDITURES THAT IS COMING, STARTING IN SEPTEMBER.

AND THE PLAN IS TO PRESENT THOSE AT THE FINANCE COMMITTEE MEETINGS.

UM, A REMINDER, HOWEVER, THAT ANYONE CAN CURRENTLY VIEW THE COUNTY'S FINANCIAL REPORTS AND THE SPENDING PORTAL BY GOING TO THE COUNTY WEBSITE AND, UH, CLICKING TRANSPARENCY WHERE YOU CAN FIND LINKS TO BOTH OF THOSE REPORTS.

ANY QUESTIONS FOR ME? ANY QUESTIONS FOR MR. BOTTS? I JUST HAVE ONE COMMENT.

I LIKE WHAT'S ON THE WEBSITE, BUT I DIDN'T PAY ATTENTION THE FIRST TIME.

YOU GOTTA WATCH IT GOES TO 2023.

YOU GOTTA FLIP IT TO 2024.

SO YOU'RE IN THE CURRENT FISCAL YEAR.

THAT'S RIGHT, BECAUSE IT JUST DEFAULTS TO 23.

I'VE FOUND THAT I YOU HAVE TO PLAY WITH IT A LITTLE BIT.

A LITTLE BIT, YEAH.

WHAT YOU WANT.

YEAH, IT IS, IT IS THERE.

I I'D JUST LIKE TO THANK YOUR DEPARTMENT FOR SOME HELP WITH A CONSTITUENT THAT I HAD THAT'S BEEN GOING ON FOR A LITTLE WHILE, BUT I THINK, I THINK Y'ALL SOLVED .

I HOPE SO.

I HOPE SO.

.

YEAH.

THANK YOU.

YEAH, I'LL, I'LL SECOND THAT BECAUSE YOU GAVE ME SOME REALLY FAST SERVICE WITH THAT LADY WHO HAD THE TAX ISSUE AND, UH, I'VE TALKED TO HER AND EVERYTHING'S CALMED DOWN.

AND NOW WE JUST HAVE TO ADDRESS THE ISSUE OF THE REFUND COMMITTEE AND TRY AND FIND OUT IF I CAN, HOW THAT CIRCLES AROUND SO THAT, UH, THE OVERPAYMENT CAN BE REFUNDED.

SO THANKS VERY MUCH FOR THAT.

ABSOLUTELY.

YOU'RE WELCOME.

OKAY, MR. BUTTS, THANK YOU VERY MUCH.

ALRIGHT, LET'S MOVE ON TO, UM, OUR, UM, NEXT AGENDA ITEM.

[8. RECOMMEND OF APPROVAL OF AN ORDINANCE AUTHORIZING THE HILTON HEAD NO. 1 PUBLIC SERVICE DISTRICT, SOUTH CAROLINA TO ISSUE NOT EXCEEDING $23,000,000 OF GENERAL OBLIGATION BONDS; AND PROVIDING FOR OTHER MATTERS RELATED THERETO]

AND IS THIS SOMETHING WE SHOULD BE HANDLING THE NEXT TWO THINGS TOGETHER OR, OR KEEP THEM SEPARATE JUST FOR VOTE PURPOSES? ANY RECOMMENDATION ON THAT? UH, YES.

YOU NEED TO KEEP THEM SEPARATE FOR VOTE PURPOSES.

ALRIGHT, SO LET'S GO AHEAD WITH, UH, RECOMMEND OF APPROVAL OF AN ORDINANCE AUTHORIZING THE HILTON HEAD NUMBER ONE PUBLIC SERVICE DISTRICT IN SOUTH CAROLINA TO ISSUE NOT EXCEEDING 23 MILLION OF GENERAL OBLIGATION BONDS AND PROVIDING FOR OTHER MATTERS RELATED THERE TOO.

I THINK WE HAVE THE FIRM OF POPE FLYNN, IF YOU CAN YES.

[00:05:02]

I KNOW I'VE MET YOU BEFORE.

YEP.

SARAH WEATHERS.

SARAH.

SARAH.

WEATHER.

THANK YOU SARAH.

MM-HMM.

.

UM, THANK YOU FOR BEING HERE.

AND AGAIN, THE FLOOR IS YOURS.

GO AHEAD.

YEP.

HAPPY TO BE HERE.

UM, THE PUBLIC SERVICE DISTRICT.

WE HAVE SOME REPRESENTATIVES HERE WHO WILL ALSO GO THROUGH, UM, A PRESENTATION WITH YOU AS WELL AS THE CHAIRMAN.

UM, THEY ARE SEEKING TO ISSUE GENERAL OBLIGATION BONDS.

THIS PROCESS, UM, I KNOW THE COUNCIL IS VERY FAMILIAR WITH, WE JUST FINISHED DOING IT FOR FRIPP ISLAND.

UM, THESE ARE GENERAL OBLIGATION BONDS THAT WILL BE ISSUED SECURED BY THE TAXES LEVIED WITHIN THE DISTRICT.

UM, THE COMMISSION OF THE DISTRICT IS ELECTED, UM, AND THEREFORE, YOU KNOW, POINTABLE ACCOUNTABLE, EXCUSE ME, TO THEIR CONSTITUENTS AS FAR AS TAXES GO AND TAX RATES AND THOSE SORT OF THINGS.

UM, THE PUBLIC SERVICE DISTRICT HAS A HISTORY OF REALLY RESPONSIBLE FISCAL SPENDING AND REALLY REASONABLE PROJECTS.

THEY'RE RESOURCEFUL.

WE WERE JUST DISCUSSING, UM, SOME GRANT MONEY THAT THEY HAVE RECEIVED AND THEY'RE REALLY ABLE TO STRETCH THOSE DOLLARS.

A LOT OF THIS ALSO IS FOR EMERGENCY PREPAREDNESS AND KIND OF STRENGTHENING, STRENGTHENING THEIR RESILIENCY.

UM, I'M GONNA LET PETE, THE EXECUTIVE DIRECTOR SPEAK TO, UM, THE PROJECTS.

BUT IF YOU HAVE ANY QUESTIONS AS FAR AS THE PROCESS GOES, UM, I'M HAPPY TO SPEAK TO THAT.

WE ARE LOOKING FOR, UM, A RECOMMENDATION ON THESE TWO SEPARATE ITEMS TODAY.

UM, AFTER THAT, WHEN IT GOES TO FULL COUNSEL, THE FIRST THING WILL BE ADOPTING A RESOLUTION, CALLING FOR A PUBLIC HEARING, AND THEN, UM, FIRST READ, FIRST READING OF AN ORDINANCE OF, OR REQUIRE THREE TOTAL READINGS AND A PUBLIC HEARING ON THE MATTER.

UM, AFTER THAT, IT WILL THEN GET KICKED BACK TO THE PUBLIC DI PUBLIC SERVICE DISTRICT TO WORK THROUGH THE REMAINING ITEMS. THANK YOU SARAH.

AND THANKS TO THE COMMITTEE FOR HAVING US.

I'M PETE NARDI, THE GENERAL MANAGER OF HILTON HEAD, P S D.

OUR GROUP WITH US TODAY INCLUDES OUR CHAIR, FRANK ANO, UM, ONE OF OUR NEWER COMMISSIONERS, ANDY PATERNO, AND ALSO OUR FINANCE MANAGER, AMY GRAYVILLE.

SO I KINDA GET THE FUN PART.

I'LL RUN THROUGH WITH YOU WHAT WE ACTUALLY INTEND TO DO, UH, WITH THIS, WITH THIS FUNDING AND, UH, WHAT THE SITUATION IS.

SO THE P S D, JUST TO JUST A REFRESHER, YOU KNOW, IT IS REALLY PERFORMING SIX DIFFERENT KEY FUNCTIONS THERE ON THE ISLAND.

IT'S, IT'S TAP WATER PRODUCTION, IT'S WATER TREATMENT.

WE DO TREATMENT OF BRACKISH GROUNDWATER VIA REVERSE OSMOSIS METHOD.

UM, A PLANT WE HAVE ON THE NORTH END, UH, JENKINS ISLAND.

THEN OF COURSE IT'S A WATER DISTRIBUTION UTILITY, ALL THE TOWERS AND METERS AND VALVES AND MAINS AND ALL THAT.

WE'RE ALSO THE SANITARY SEWER UTILITY.

SO SANITARY SEWER COLLECTION SYSTEM.

A LOT OF SEWER LIFT STATIONS IN OUR SERVICE AREA.

NO TOPOGRAPHY TO MOVE WASTEWATER AROUND.

WE HAVE EVERYWHERE, UH, WASTEWATER TREATMENT.

OUR PLANT THERE, UM, OFF OF OAK PARK DRIVE IS A A 6.3 MILLION GALLON A DAY CAPACITY WASTEWATER TREATMENT PLANT.

AND THE REALLY NEAT THING WE DO ON HILTON HEAD AND WE'VE DONE FOR DECADES IS IT'S A HUNDRED PERCENT RECYCLED WATER PROGRAM.

SO ALL OF THE TREATED WASTEWATER IN THE PLANT IS EITHER, UH, SENT INTO PREEXISTING WETLAND HABITATS AS PART OF A WETLAND NOURISHMENT PROGRAM, WETLAND MAINTENANCE PROGRAM, OR IT IS RESOLD, COMMODITIZED RESOLD TO GULF FOR THEIR IRRIGATION PURPOSES.

SO THAT GULF ON THE ISLAND IS NOT USING OUR POTABLE WATER SUPPLY.

THEY'RE USING THE RECLAIM WATER TO IRRIGATE.

AND AS SARAH MENTIONED, UH, THE P S D, IT'S A SPECIAL PURPOSE DISTRICT UNDER CAROLINA LAW, AND IT'S GOVERNED BY SEVEN MEMBER BOARD OF COMMISSIONERS.

THEY'RE ELECTED GENERAL ELECTION CYCLE.

UH, AND THE VOTING DISTRICTS THAT THEY'RE ELECTED FROM ARE, ARE COMPRISED JUST THE P S D SERVICE AREA, BUT THEY ARE A, UH, MUNICIPAL ELECTION YOU'D SEE RIGHT AFTER A TOWN COUNCIL, UH, ON THE BALLOT.

SO THE KEY THING THAT'S GOING ON THE P S D, UH, APPLIED FOR AND WAS THE RECIPIENT OF A $10 MILLION GRANT FROM THE SOUTH CAROLINA, UH, INFRASTRUCTURE INVESTMENT PROGRAM.

THE SKIP, WHICH REALLY IS A K A, THE ARPA MONIES, UH, ALLOCATED TO THE STATE, WHICH THE STATE THEN SET ASIDE FOR WATER, WASTEWATER, STORM WATER, THE, THE GENERAL ASSEMBLY, PUT IT ALL INTO A COMPETITIVE GRANT PROGRAM.

THE UTILITIES HAD TO APPLY AND BE SUCCESSFUL IN THE, IN THE COMPETITIVE GRANT PROGRAM.

MM-HMM.

.

UM, OUR PROJECTS ARE REALLY TWO KEY THINGS.

ONE IS THE EXPANSION AND REALLY THE BUILD OUT OF OUR REVERSE OSMOSIS DRINKING WATER TREATMENT FACILITY.

THEY'RE ON JENKINS ISLAND.

UH, AND THEN THE SECOND THING IS THE CONSTRUCTION OF A SECOND AQUIFER STORAGE AND RECOVERY.

WELL, A S R WE CALL THE TECHNIQUE.

WE HAVE ONE OF THESE ALREADY.

WE'D LIKE TO BUILD A SECOND ONE AND BRACKET THE SERVICE AREA.

WITH THIS LARGE SCALE SUPPLY, IT'S KEY FOR NOT ONLY MEETING OUR, OUR DAY-TO-DAY DEMANDS, BUT IT'S KEY FOR OUR RESILIENCY AND OUR HURRICANE RECOVERY THERE.

UM, SO IN, IN TOTAL, THE PROJECTS FOR OUR APPLICATION PURPOSE WERE ESTIMATED, UH, AT 17 MILLION, UH, SO $10 MILLION GRANT.

AND LOOKING AT, YOU KNOW, AT LEAST WE, WE WERE ANTICIPATING A $7 MILLION LOCAL MATCH THAT WOULD

[00:10:01]

THAT'S ALL PART OF THE COMPETITIVENESS OF THE GRANT APPLICATION.

THE STATE WAS REALLY LOOKING FOR LOCAL MATCH, LOCAL LEVERAGE AND, AND SHOWING WHAT YOU WERE GONNA PUT ON THE TABLE LOCALLY TO MAKE THESE LONG-TERM PROJECTS HAPPEN.

THE KEY WITH THESE IS THEY ARE LONG-TERM WATER SUPPLY PROJECTS, REALLY FOR THE FUTURE OF THE ISLAND.

THEY BENEFIT THE ENTIRETY OF THE SERVICE AREA.

THEY'RE NOT NEIGHBORHOOD PROJECTS.

THEY'RE FOR THE ENTIRETY OF THE SYSTEM.

UM, AND YOU KNOW, AS, UH, SARAH TOUCHED ON, YOU KNOW, A LOT OF NEEDS, BUT REALLY MEET AND PEAK DEMAND FOR TAP WATER, WE STILL ARE FACING SALTWATER INTRUSION INTO THE FRESHWATER PART OF THE AQUIFER AT HILTON HEAD.

SO WE'RE, WE FACED THE LOSS OF THE FRESHWATER WELLS THAT WE'RE STILL CLINGING TO.

SO DOING SOMETHING LIKE EXPANDING THE REVERSE OSMOSIS PLANT IS KEY FOR REPLACING THE LOSS SUPPLY.

UH, AND THEN AS WE MENTIONED, IT'S KEY FOR OUR HURRICANE RESILIENCY, OUR, OUR RECOVERY, SPEEDING RECOVERY FROM STORMS. WE ALSO, THE REVERSE OSMOSIS TECHNIQUE IS REALLY IMPORTANT FOR PROTECTING THE PUBLIC WATER SUPPLY FROM P F A SS CONTAMINATION.

THAT'S SOMETHING THAT YOU'VE PROBABLY BEEN HEARING ABOUT LATELY IN THE NEWS.

IT'S FOREVER CHEMICALS THAT CAN GET INTO VARIOUS WATER SUPPLIES, PARTICULARLY LIKE SURFACE WATER SUPPLIES.

IT MAKES THE GROUNDWATER SUPPLY VERY KEY.

AND THEN AN EXTRA LAYER IS THAT REVERSE OSMOSIS TREATMENT.

IT'S, IT'S THE, IT'S RIGHT NOW THE LEADING BARRIER TECHNOLOGY AGAINST P F A S CONTAMINATION.

UH, AND THEN A, A LOT OF THIS TOO IS THE MORE THAT THE ISLAND CAN HANDLE ITS OWN DEMANDS, ESPECIALLY PEAK SEASON, IT LESSENS OUR DEMAND ON THE, ON THE MAINLAND SYSTEM, ON THE BEAVER JASPER WATER AND SEWER UTILITY FROM WHICH WE BUY WATER ON A WHOLESALE BASIS.

AND AS YOU ALL KNOW, THEY'RE FACING, UH, A LOT OF NEW DEMAND AND NEW GROWTH OATH RO PLANT.

UM, IF ANY OF YOU ARE EVER IN THE AREA, WE'D LOVE TO LOVE TO GIVE YOU A VISIT TO IT.

BUT IT'S, IT'S MEMBRANE FILTRATION OF BRACKISH GROUNDWATER.

OUR PLANT RIGHT NOW TREATS 4 MILLION GALLONS A DAY.

IT PRODUCES 4 MILLION GALLONS A DAY OF DRINKING WATER.

AND THIS PROJECT WILL EXPAND IT, BUILD IT OUT TO 6 MILLION GALLONS A DAY, WHICH WAS ITS ENVISIONED, UH, CAPACITY WHEN THE PLANT BACK IN OH NINE.

AND THEN THE OTHER THING WE'D LIKE TO DO THERE, BELIEVE IT OR NOT, THIS PLANT HAS NO EMERGENCY GENERATOR ON IT.

SO WE, SO PART OF THIS PROJECT IS TO ALSO ADD, UH, EMERGENCY POWER EMERGENCY GENERATOR AT THE PLANT.

TO DO THE EXPANSION, WE HAVE TO CONSTRUCT A FOURTH RAW WATER PRODUCTION WELL INTO THE BRACKET CHAFER TO, TO YIELD THE WATER THAT WILL GET US THIS EXTRA 2 MILLION GALLONS A DAY OF CAPACITY IN THE PLANT.

THE TOWN OF HILTON AT ISLAND, UH, IS WORKING VERY WELL WITH US ON THIS, LOOKING LIKE, WE'LL ACTUALLY PLACE THE, WELL, THE NEW WELL ON TOWN OWNED PROPERTY, UM, SOUTH SIDE OF, UH, WILLIAM HILTON PARKWAY.

THE OLD WELCOME CENTER PARCEL, IT'S CALLED NEXT TO THE CRAZY CROWD.

UH, SO THE AQUIFER STORE IS IN RECOVERY.

WELL, THIS IS A, THE PHOTO IS OUR CURRENT, WELL, IT'S LOCATED, UH, INSIDE H H P AT OUR, OUR ROYAL JAMES FACILITY.

UM, SO WE'RE, WE'RE LOOKING TO BUILD A SECOND ONE OF THESE AGAIN, WORKING WITH THE TOWN OF HILTON AND ISLAND AND PLACING IT ON LAND THAT THEY OWN CALLED THE ASHMORE TRACT.

PRETTY BIG TRACT OF LAND THAT'S ACTUALLY ADJACENT TO THE PSDS, UH, OUR FENCE LINE AT OUR WASTEWATER TREATMENT PLANT.

SO KIND OF JUST A PROJECT WHERE WE'RE GONNA PUSH OUR FENCE LINE A LITTLE BIT, DRILL THIS NEW WELL, AND IT, IT, IT CREATES A TREMENDOUS AMOUNT OF STORAGE FOR US BOTH TO MEET PEAKS AND, AND TO RECOVER FROM DISASTERS.

WHAT A S R REALLY, THIS IS A NICE SLIDE, I THINK SHOWS THE COMPARISON.

SO YOU'RE STORING, YOU'RE USING IT TO STORE, ALREADY TREATED DRINKING WATER DOWN IN THE BRACKISH PART OF THE AQUIFER, AND YOU BUILD A BUBBLE OF THE TREATED DRINKING WATER USING THE AQUIFER ITSELF AS YOUR STORAGE ZONE.

WHAT'S SO IMPRESSIVE ABOUT IT IS LIKE THE PHOTO SAYS YOU BUILD A BIG GROUND, CONCRETE GROUND STORAGE TANK, OR YOU CAN PUT ABOUT 2 MILLION GALLONS IN IT WITH THE A S R.

WELL, YOU CAN PUT 260 MILLION GALLONS IN IT AND THEN WHAT IT'S DOING IS IT'S YIELDING ABOUT 2 MILLION GALLONS A DAY OF SUPPLY DURING THE SUMMER MONTHS.

BUT OUR CURRENT A S R WELL WAS REALLY, REALLY CRITICAL, FOR EXAMPLE, IN OUR RECOVERY FROM HURRICANE MATTHEW, BECAUSE YOU'RE ABLE TO HAVE THAT KIND OF LARGE SCALE SUPPLY WAITING FOR YOU UNDERGROUND AFTER THE LOSS OF POWER TO REENERGIZE EVERYTHING AND, AND PUT THE WATER BACK IN THE DISTRIBUTION SYSTEM REPRESSURIZE THE WATER DISTRIBUTION SYSTEM, WHICH IS, IS KEY FOR THE RECOVERY.

SO IN ADDITION TO THE SKIP PROJECTS, UH, THE POTENTIAL FUNDING HERE COULD ALSO BE USED FOR A COUPLE KEY THINGS.

ONE IS WE ARE FACING THE RELOCATION OF OUR LARGE SCALE DRINKING WATER TRANSMISSION PIPELINE THAT CONNECTS US TO THE MAINLAND.

WE ARE TOLD BY THE D O T, IT WILL HAVE TO BE RELOCATED AS PART OF THE S 2 78 CORRIDOR PROJECT.

THE PIPELINE IS BURIED UNDERNEATH THE RIVERBED OF THE INTRACOASTAL, UM, BASICALLY RIGHT TO THE SOUTH OF THE CURRENT BRIDGES.

AND UNDER THE DOT'S CURRENT PLAN, IT WOULD BE TO LAY THE, THE PILINGS ON TOP OF THE PIPELINE.

SO, UM, YOU KNOW, WE DO HAVE THE RELOCATION ACT IN PLAY ON THAT.

FOUR AND A HALF PERCENT FUNDING SHOULD COME FROM THE D

[00:15:01]

NONETHELESS, UM, THERE'S THE POTENTIAL THERE FOR LOCAL, UH, LOCAL BURDEN TO COVER THE RELOCATION OF THE PIPELINE.

AND THE OTHER THING THAT CAN BE DONE WITH IT, P S D STILL HAS THE ABILITY TO PURCHASE SOME ADDITIONAL WHOLESALE WATER CAPACITY FROM BEAUFORT JASPER.

UH, SO THIS, THIS CAPITAL COULD BE PUT TOWARD THAT.

WE ALSO HAVE A SUITE OF WASTEWATER TREATMENT, PLANT UPGRADES, COLLECTION SYSTEM UPGRADES.

AGAIN, THEY'RE PROJECTS THAT BENEFIT THE ENTIRETY OF THE SYSTEM.

SO THE PROJECT FUNDING HERE, IT'S REALLY A LIMITED MILLAGE IMPACT, UM, BECAUSE THE WAY OUR CURRENT DEBT PICTURE AND OUR ABILITY TO, TO WRAP THIS AROUND THE CURRENT DEBT, UM, BUT YOU SEE ON YOUR SCREEN THERE, WHAT WE'RE AT RIGHT NOW WITH OUR ACTUAL, UM, MILLAGE AND WHAT THE ESTIMATED WOULD BE, YOU KNOW, PUTTING THIS, UM, PUTTING THIS DEBT ON BOILS DOWN TO ABOUT $4, UH, YOU KNOW, NEW $4 ON A HUNDRED THOUSAND DOLLARS OF ASSESSED VALUE ON, ON A PRIMARY HOME.

SO THAT'S KIND OF THE TAX, THE TAX IMPACT THAT WE'RE LOOKING AT.

THAT'S REALLY ALL WE HAD.

I DIDN'T WANNA BELABOR THIS STUFF WITH YOU, BUT IF THERE'S ANY QUESTIONS, PETE, WILL THAT GO IN 25? WOULD YOU SAY NEW VILLAGE? YEAH, THIS WOULD BE ASSUMING THE BORROWING OCCURS ON THE TIMETABLE THAT WE'RE THINKING.

UM, EARLIEST WOULD BE TAX BILLS DUE IN 2025.

YEAH.

OH, OKAY.

SO, UM, EXPLAIN TO US THE 20, $23 MILLION THAT'S FOR THE BOND YOU'VE GOT, UM, THEN 10,000, I MEAN 10 MILLION COMING IN, I'M IN A MATCH.

SO IS THAT, THAT THEN GETS YOU, HOW DOES THAT, HOW DOES THAT WORK? JUST SO EXPLAIN THAT.

SO FROM, FROM THE BOND IS HOW WE WOULD COVER THAT LOCAL MATCH.

AND WE'RE IN A WORLD BECAUSE OF THE SKIP PROJECTS WHERE, YOU KNOW, THE MONEY WAS PUT ON THE STREET.

UM, LAST SUMMER WE HAD TO DO OUR APPLICATION FOUND OUT IN THE FALL.

THIS ALL HAS TO BE EXPENDED UNDER THE SKIP PROGRAM BY DECEMBER OF 2026.

SO WE ARE RIGHT NOW IN THE THROES OF OUR DESIGN, OUR PERMITTING, ET CETERA, OF THE PROJECTS LEADING TO BIDDING THE PROJECTS EARLY 2025 OR 2024.

I'M SORRY.

SO WITH THE BIDS IN HAND IS WHEN WE WILL KNOW, OKAY, WHAT DOES THE LOCAL MATCH ACTUALLY LOOK LIKE? UM, AND WE'RE AT, YOU KNOW, THE BORROWING IS, IS TAKING US TO WHAT WE, WHAT WE CAN, UH, HANDLE WITH OUR, WITH OUR DEBT LOAD.

BUT THAT IS, THAT IS HOW IT'LL HAVE TO PLAY OUT IS GET THE BIDS IN HAND, SEE WHAT THAT'S LOCAL SKIP MATCH IS ACTUALLY GOING BASED ON CHAIRMAN BECK.

YES MA'AM.

YES, MS. WEATHERS, THERE'S SOME UTILITY IN THIS.

IF YOU'LL NOTICE IN THE ORDINANCE, WE LIST THE PROJECTS THAT THIS MONEY CAN BE SPENT ON AND THE ORDINANCE IS ALSO DRAFTED FOR A NOT EXCEEDING $23 MILLION.

AND THE REASON WHY THERE'S PERHAPS A LITTLE BIT OF MISMATCH IS KIND OF TWOFOLD.

ONE, CERTAINLY AS PETE SAID, EVERYONE, ENGINEERS, EVERYONE THAT WE'VE TALKED TO PROFESSIONALS IS EXPECTING THE ESTIMATES TO BE SIGNIFICANTLY INCREASED BECAUSE OF THE RUSH IN WHICH EVERYONE'S GOTTA GET THESE PROJECTS DONE.

BUT THE OTHER REASON IS A LITTLE BIT OF UTILITY THERE, UM, FROM THE PUBLIC SERVICE DISTRICT'S PROFESSIONAL FEES, UM, FOR INSTANCE, MY FEE AND THE FINANCIAL ADVISOR THAT THEY WILL PAY, THE THOUGHT IS THAT THEY ASK FOR A LITTLE BIT MORE MONEY.

THEY GO THROUGH THIS PROCESS ONCE WHERE WE COME BEFORE YOU AS COUNSEL AND THEN THEY HAVE THE APPROVAL TO SPEND THE BOND MONEY ON THESE ENUMERATED PROJECTS THAT ARE LISTED IN THE ORDINANCE.

SO THEY MAY NOT, IN 2025 IMMEDIATELY ISSUE $23 MILLION WORTH OF DEBT.

THEY MAY ISSUE WHAT THEY NEED AND THEN HOLD A LITTLE BIT BACK, LOOK AT THEIR MILLAGE AS DEBT IN THE FUTURE ROLLS OFF.

PERHAPS THEY WILL ISSUE MORE FOR SOME OF THESE PROJECTS, BUT IT WILL NOT EXCEED 23 MILLION AND IT WILL ONLY BE THE PROJECTS LISTED IN ORDINANCE, BUT IT SAVES THEM A LITTLE BIT OF MONEY IN CASE IN TWO YEARS THEY REALIZE THEY NEED TO ISSUE MORE DEBT RATHER THAN PAYING MY FIRM'S FEES, THE FINANCIAL ADVISOR'S FEES TO COME BACK BEFORE YOU AND DO THIS PROCESS ALL OVER AGAIN.

SO WHAT IS THE, THE LENGTH OF TIME THEN YOU THINK THIS, THE 23 MILLION WOULD, WOULD, WOULD COVER WHAT I THINK IT, I'D HAVE, I WISH I COULD HAVE SPOKEN TO THE FINANCIAL ADVISORS, BUT I WOULD THINK IT WOULD BE WITHIN THREE, THREE-ISH, THREE TO FIVE YEARS.

OKAY.

THEY WOULD DO THAT.

UM, WE WOULDN'T LET IT GET STALE CERTAINLY BEFORE WE ISSUED ALL OF IT.

AND I THINK I UNDERSTOOD YOU SAY THAT, THAT YOU'RE LOOKING AT $4 PER 100,000.

SO, UH, YOU KNOW, A A A MILLION DOLLAR HOME WOULD BE $40 MORE PER YEAR.

UH, YOU KNOW, 200,000 HOME WOULD BE $8 MORE PER YEAR.

THAT'S THE KIND OF NUMBERS WE'RE WE'RE TALKING ABOUT.

UM, ANY OTHER QUESTIONS FROM ANYONE ON THE YES SIR.

TO YOUR POINT, YOU CAN ISSUE BONDS UP TO 23 MILLION, YOU WILL HAVE 10 MILLION IN HAND AND YET YOU STILL DON'T KNOW WHAT THE ACTUAL COST IS GOING TO BE, WHICH IS WHY YOU'RE HEDGING YOUR BET.

IT COULD BE SIGNIFICANTLY, YOU COULD USE ALL 33 MILLION.

OKAY.

THAT'S NUMBER

[00:20:01]

UH, HANK YOU MAY KNOW THIS, WHEN WE WERE DOING THE ARPA FUNDING, I BELIEVE, UH, P S D CAME BEFORE US FOR THE GENERATOR FOR A MILLION DOLLARS, CORRECT? YES.

BUT WHAT WE ENDED UP DOING WITH THAT, WE, WE CAME BEFORE YOU WITH TWO PROJECTS.

ONE BEING THE GENERATOR, ONE BEING THE, UM, A NEW WATER BOOSTER STATION AT OUR LEGO MUTTON SITE.

THE 1 MILLION QUICKLY CAME, BECAME DISCERNIBLE WAS NO GONNA BE NOWHERE NEAR TO ACTUALLY PERFORM BOTH THOSE PROJECTS.

SO WE PIVOTED TO DO THE, DO THE, UH, BOOSTER STATION PROJECT WITH THE, WITH THE 1 MILLION A ALLOCATION, PUT THE RO GENERATOR INTO THE SKIP.

OKAY.

I'LL GIVE YOU CREDIT FOR THAT.

'CAUSE I THOUGHT THAT, UH, WE'D HAVE EVERY OTHER P S D COME FORWARD, ALL OTHER SEVEN IN THE COUNTY AND YOU'RE THE ONLY ONES THAT CAME AND ASKED FOR MONEY.

SO AGAIN, I GIVE YOU CREDIT FOR, FOR DOING THAT.

THAT WAS PRETTY SMART.

I HAVE OTHER POWERPOINTS IF YOU HAVE OTHER FUNDING.

PETE, I JUST ANOTHER QUESTION.

THE 10 MILLION SKI, YOU SAY A LOCAL MATCH, YOU HAVE TO MATCH THE ENTIRE AMOUNT WITH THE, UH, WITH THE ADDITIONAL, UH, THE, THE, THE MINIMUM LOCAL MATCH WAS 15% OF THAT'S THE MINIMUM FOR, FOR A COMPETITOR FOR YOUR GRANT APPLICATION.

YOU COULDN'T SEND THEM AN APPLICATION UNLESS YOU WERE MATCHING AT LEAST 15%.

SO WE WERE PUTTING IN A 42% MATCH THAT MADE IT HIGHLY COMPETITIVE.

WE WERE AWARDED THE FULL AMOUNT THAT THEY WERE ABLE TO AWARD.

INTERESTING.

SO HOW MUCH DO YOU NEED TO MATCH FROM THE, THE MILLAGE INCREASE? 42% OF 10 MILLION.

THE 42% IS WHAT? THAT IS WHAT WOULD COME OUT IF YOU'RE, IF YOU'RE LOOKING AT THE ORIGINAL 17 MILLION ESTIMATE OF THE PROJECTS.

GOT IT.

YES.

ANY OTHER QUESTIONS? IS THERE A MOTION TO, UH, UM, TO, TO BRING US TO VOTE? SO MOVE SIR.

IS THERE A SECOND? I'LL SECOND THAT.

NO, ANY MORE DISCUSSION? SEEING NO DISCUSSION, IS THERE ANY OBJECTION TO US PASSING THIS UNANIMOUSLY? I SEE NO OBJECTION.

UH, THIS HAS BEEN APPROVED.

[9. RECOMMEND APPROVAL OF A RESOLUTION ORDERING A PUBLIC HEARING TO BE HELD ON THE ISSUANCE OF NOT EXCEEDING $23,000,000 AGGREGATE PRINCIPAL AMOUNT OF GENERAL OBLIGATION BONDS OF THE HILTON HEAD NO. 1 PUBLIC SERVICE DISTRICT, SOUTH CAROLINA; PROVIDING FOR THE PUBLICATION OF THE NOTICE OF SUCH PUBLIC HEARING; AND OTHER MATTERS RELATING THERETO]

UM, WHICH IS, UM, UH, NUMBER NINE ON OUR AGENDA.

RECOMMEND APPROVAL OF A RESOLUTION ORDERING A PUBLIC HEARING TO BE HELD ON THE ISSUANCE OF NOT EXCEEDING $23 MILLION.

AGGREGATE PRINCIPLE AMOUNT OF GENERAL OBLIGATION BONDS OF THE HILTON HEAD.

NUMBER ONE, PUBLIC SERVICE DISTRICT PROVIDING FOR THE PUBLICATION OF THE NOTICE OF SUCH PUBLIC HEARINGS AND OTHER MATTERS RELATING HERE TO AND IS THERE.

SO MOVE.

SO MOVED, SIR.

SO MOVED.

IS THERE A SECOND? I'LL SECOND.

MR. CHAIRMAN.

ALRIGHT, THANK YOU.

ANY, UH, ANY ADDITIONAL DISCUSSION? SEEING NO DISCUSSION, THIS WILL BE APPROVED WITHOUT OBJECTION AND I SEE NO OBJECTION.

UM, THAT ALSO HAS BEEN APPROVED.

ALL RIGHT, LET'S

[10. AGENCIES, BOARDS, AND COMMISSIONS APPOINTMENTS & REAPPOINTMENTS - (Design Review Board, Airports Board, and Planning Commission)]

AND THAT IS, UM, THE AGENCY BOARDS AND COMMISSIONS APPOINTMENTS AND REAPPOINTMENTS.

UM, AND DO WE NEED TO READ THOSE? GIMME A SECOND TO GET TO THE RIGHT LOCATION.

AND THOSE WOULD BE, UH, DESIGN REVIEW, REVIEW BOARD.

UM, THAT IS, UH, CHRIS FELDMAN, UH, RECOMMENDATION APPROVAL TO, UM, ALSO TO THE DESIGN REVIEW BOARD IS ERIC WAL NOVI, UM, TO THE AIRPORT'S BOARD, UM, THE APPOINTMENT OF JAMES STARNS, UH, ALSO TO THE AIRPORT BOARD APPOINTMENT OF RICH SELLS AND TO THE PLANNING COMMISSION APPOINTMENT OF EUGENE MEYERS.

AND UH, IS THERE ANY REASON THAT SOMEONE WOULD WANT TO VOTE ON THOSE SEPARATELY? NO.

NO.

ALL UM, DO I HAVE A MOTION THEN TO ACCEPT THEM? MOTION IS THERE A SECOND THEN? MM-HMM.

.

YES.

SECOND, WE MOVE THIS TO COUNCIL AND WE DO THIS HERE.

UM, WE DO THIS HERE.

I, WELL, I KNOW IT DOES GO TO COUNCIL FOR ONE READING.

SO THIS WOULD BE MOVED TO COUNCIL FOR, FOR, UM, ONE, ONE READING.

SO SECOND I SEEN WITHOUT OBJECTION.

UM, IT HAS BEEN APPROVED.

I DO HAVE, DO HAVE A QUESTION THOUGH REGARDING YES.

UH, WHO DID THE, THE INTERVIEW FOR THESE INDIVIDUALS? I DID THE ONE FOR DISTRICT 10, WHICH WOULD'VE BEEN THE PLANNING COMMISSION.

OKAY.

WHAT ABOUT THE OTHERS? YEAH.

WHAT ABOUT THE OTHER FOUR? WELL, RES DID THE AIRPORTS BOARD.

OKAY.

YEAH, HE SAID HE DID.

HOW ABOUT PLANNING? I DID THE PLANNING FOR DISTRICT 10.

THERE'S STILL A VACANCY THERE, RIGHT? A RIGHT.

THERE'S STILL ONE MORE VACANCY.

MM-HMM.

WORK WAS INTERNAL.

INTERNAL, OKAY.

ALRIGHT.

AND, AND SARAH IS THE, UH, WEBSITE UP TO DATE ON, ON OPENINGS FOR COMMISSIONS.

AND AGAIN, THAT'S WHERE, THAT'S WHERE THE PUBLIC CAN GO LOOK ON OUR WEBSITE FOR COMMISSIONS AND IT'LL HAVE OPEN SEATS AND OBVIOUSLY THAT'S WHERE PEOPLE

[00:25:01]

SO IS THERE ANY OBJECTION? I DIDN'T SEE ANY OBJECTION BEFORE.

SO WE'LL GO AHEAD AND, AND PASS THESE, UM, COMMITTEE MEMBERS.

YEAH.

ALRIGHT.

THE CHAIRMAN BEFORE YOU GO TO EXECUTIVE SESSION, I'M TERRIBLY DISAPPOINTED THAT THE CHAIRMAN OF PSD ONE DID NOT MAKE ANY COMMENTS HERE TONIGHT.

IS HE HERE? I THINK SO.

OH, THERE HE IS.

FRANK TORONTO.

I KNOW YOU CAME ALL THE WAY OVER HERE.

YOU'D LOVE TO SAY SOMETHING.

SO WOULD YOU LIKE AN OPPORTUNITY TO DO THAT? GO INTO SESSION? FIRST OF ALL, I'D LIKE TO THANK YOU ALL FOR YOUR FORWARD THINKING .

UM, WHEN YOU, WHEN YOU LOOK AT THE PROJECT THAT WE'RE GOING TO RIGHT NOW, IT DIDN'T JUST HAPPEN, WE FORESEE A NEED YEARS AGO THAT WATER WAS BECOMING A PROBLEM ON HILTON HEAD.

UH, TO GIVE YOU AN EXAMPLE, WE HAD 12 WELLS, WE'RE DOWN TO TWO.

SO WE HAVE TO GET WATER FROM SOMEPLACE.

AND SO RATHER THAN WAIT UNTIL YOU HAD NO WATER, WE FIGURED TO BE PROACTIVE.

AND I HAVE TO COMMEND MY COMMISSION AND MY GENERAL MANAGER FOR THINKING ABOUT THIS.

UH, WATER IS A, AN EXTREMELY IMPORTANT RESOURCE AND TIME KIND OF EVAPORATES, UH, WHEN YOU'RE LOOKING TO DO SOMETHING.

SO I WANT TO THANK YOU VERY MUCH FOR UNDERSTANDING WHERE WE'RE GOING, WHAT WE'RE LOOKING TO ACCOMPLISH, AND I JUST WANNA PREPARE YOU THAT DOWN THE ROAD WE'RE PROBABLY GONNA LOOK TO DO ANOTHER RE UH, REVERSE OSMOSIS PLAN BECAUSE WE'RE JUST NOT GONNA HAVE ENOUGH.

UM, SO THAT'S WHAT IT IS.

AND I'M, AGAIN, I THANK YOU ALL FOR YOUR CONSIDERATION AND, UH, YOUR VOTE.

THANK YOU.

THANK YOU MR. MR. THANK YOU FRANK.

APPRECIATE YOU'RE WELCOME.

APPRECIATE VERY MUCH.

ALRIGHT, WE

[EXECUTIVE SESSION]

SO WE NEED TO GET THROUGH THIS EXECUTIVE SESSION HERE.

SO DO HAVE A MOTION FOR US TO GO INTO EXECUTIVE SESSION MOVE.

THANK YOU MR. AVER.

SECOND.

AND MR. PASSMAN SECONDS, UM, ANY DISCUSSION? SO NO DISCUSSION.

IS THERE ANY, COULD YOU JUST READ THEM OFF FOR THE PUBLIC, MR. CHAIRMAN, FOR THE PUBLIC? UM, YES.

LET ME GO AHEAD AND READ WHAT WE HAVE.

PETE, UH, PURSUANT TO SOUTH CAROLINA CODE SECTION, UM, DISCUSSION OF EMPLOYMENT OF A PERSON REGULATED BY COUNTY COUNCIL, UH, MR. JOHN ROBINSON PURSU PURSUANT TO SOUTHBOUND CODE SECTION 30 SIX'S THE WRONG MR. CHAIRMAN, THAT IS, THAT'S NOT FINDING WRONG ONE.

IT'S OKAY.

FIN I HAD MY WRONG PURSUANT TO CODE DISCUSSION OF NEGOTIATIONS INCIDENT TO PROPOSE CONTRACTUAL ARRANGEMENTS TO FUSS ISLAND FERRY, UM, TO RECEIVE LEGAL ADVICE COVERED BY AT ATTORNEY-CLIENT PRIVILEGE RELATING TO THE APPOINTMENT OF PERSONS TO A PUBLIC BODY AND DISCUSSIONS OF THE APPOINTMENTS OF SUCH PERSONS.

UH, NUMBER 13, UH, RECEIVE LEGAL ADVICE REGARDING PROPOSED CONTRACTUAL ARRANGEMENTS AND PROPOSED PURCHASE OF REAL PROPERTY COTTON HALL.

UM, AND THEN WE MIGHT HAVE ACTIONS ARISING OUT OF THOSE EXECUTIVE SESSIONS AGAIN, WE ARE NOW IN EXECUTIVE SESSIONS.

OKAY.

EXECUTIVE SESSION.

BEFORE I DO THAT, IS THERE ANYONE THERE ANYONE THAT, UM, WANTS TO MAKE ANY TYPE OF ACTION FROM OUR ITEMS IN EXECUTIVE SESSION? NO, SEEING NONE.

UM, THE ONE ITEM THAT WE DID HAVE THAT WE DO WANNA TALK ABOUT IS ABOUT COTTON HALL.

UM, AND UH, I'LL TRY TO MR. WARD, IF YOU WANNA COME FORWARD, I'M GONNA TRY TO REAL QUICK EXPLAIN, UH, WHAT I HEARD AND WHAT I UNDERSTAND IS IS THAT THE COTTON HALL PURCHASE, WE APPROVED $4.5 MILLION FOR THAT PURCHASE, CORRECT? UM, WE ARE ACTUALLY GONNA SPEND FOUR POINT OR 4 49, 440 4 MILLION, 449 $9,000 FOR THE PURCHASE.

SO IT'S 51,000 LESS THAN WHAT WE APPROVED.

HOWEVER, WE WERE EXPECTING TO GET $1.5 MILLION, UM, UH, FROM THE SOUTH CAROLINA CONSERVATION BANK GRANT FUNDS, CORRECT? CORRECT.

BUT WE'RE ONLY GETTING $1 MILLION INSTEAD.

CORRECT.

UM, SO AGAIN, WE JUST WANNA CLEAR UP AND MAKE SURE THAT EVERYONE UNDERSTANDS EXACTLY WHAT IS GOING ON.

UM, WITH, WITH THIS.

SO AGAIN, BEING, BEING TRANSPARENT, UM, WE STILL WANT THE TRANSACTION TO OCCUR.

UM, SO AGAIN, THAT'S WHY THERE'S NO ACTION COMING OUT OF THAT, OUT OF THAT COMMITTEE MEETING.

BUT GO AHEAD IF YOU WANNA MAKE SURE THAT I'VE SAID THAT CORRECTLY.

I THINK YOU'RE ACCURATE IN WHAT YOU JUST STATED.

YES.

WE ARE RECEIVING $1 MILLION FROM THE SOUTH CHRONIC CONSERVATION BANK GRANT FUNDS OPPOSED TO THE 1.5 WHICH WE ORIGINALLY HAD STATED WE WOULD BE RECEIVED AND OUR AMOUNT THAT WE'RE EXPENDING IS STILL LESS THAN A 0.4 0.5 THAT WE APPROVE.

YES, WE ARE STILL WITHIN THE 4.5 THAT WAS ORIGINALLY.

ALRIGHT.

SEEING NO ADDITIONAL ACTION, UM, OUR MEETING IS ADJOURNED.

AND, UM, CHAIRMAN, HOW MUCH TIME DO WE NEED OR WHAT TIME DO YOU WANNA START?