[1. Call to Order]
          [00:00:07]
          . GOOD AFTERNOON. I WOULD LIKE TO CALL THIS TOWN COUNCIL WORKSHOP OF TUESDAY FEBRUARY 25TH, 2025 TO ORDER CAN I HAVE A MOTION TO ADOPT 
          [2. Adoption of the Agenda]
THE AGENDA OF BEING A FIRST AND SECOND ALL THOSE IN FAVOR OF PLEASE SIGNIFY BY RAISING 
          [3.a. Beach Renourishment Project Overview]
YOUR RIGHT HAND SO MOVED SO WE GOT A COUPLE OF GUESTS WITH US HERE TODAY FRANNIE HEIZER AND CHRIS GREAT FRIENDS COMING TO US PERFORMANCE A BOND GURU AND LOCAL HISTORIAN AS WELL. 
          SO THANK YOU FOR BEING HERE AND HELPING US WITH THIS DISCUSSION. 
          YEAH AND CHRIS HAS BEEN A LONG PARTNER WITH THE TOWN AND MAKING CERTAIN THAT WE WE ADDRESS POETRY NOURISHMENT AND OTHER THINGS PROPERLY AND WE'VE BEEN A GOOD PARTNER WITH US FOR A LONG TIME AS WELL. SO THANKS FOR BEING HERE. SO WITH THAT, YOU KNOW WE'RE GOING TO WE'RE GONNA HAVE SOME GREAT DISCUSSION TODAY, FIGURE SOME THINGS OUT AND TO TRY TO KEEP TRACK OF WHAT EVERYBODY'S SAYING AND WHAT THEIR THOUGHTS ARE AND THEN TRY TO GET SOME KIND OF AN IDEA OF HOW WE MOVE FORWARD OUT OF THIS MEETING TODAY. 
          SO THAT I WILL TURN IT OVER TO MARK AKA SHAWN OKAY. THANKS. 
          GOOD AFTERNOON. MAYOR PERRY MEMBERS OF TOWN COUNCIL SHORELINE HERE ASSISTANT TOWN MANAGER WE'VE ALREADY DONE THE INTRODUCTIONS SO WE CAN SKIP THAT BUT THANK YOU TO FRANNIE AND CHRIS FOR JOINING US HERE THIS AFTERNOON. WE APPRECIATE YOUR INVOLVEMENT AND GUIDANCE ON THIS IMPORTANT PROJECT IN OUR COMMUNITY. SO WE HAVE A TWO PART PRESENTATION THAT WE WANT TO GO THROUGH WITH YOU TODAY TO HELP WITH FACILITATE OUR DISCUSSION. 
          THE FIRST PART I'LL LEAD US THROUGH A BRIEF UPDATE OF THE PROJECT AND WHERE WE ARE. 
          A LOT OF THAT'S GOING TO BE REVIEW OF INFORMATION. WE DO HAVE SOME NEW INFORMATION TO SHARE WITH YOU AND THEN REALLY WE'LL SPEND THE BULK OUR TIME. 
          I HAND IT OVER TO ADRIANNA AND HER TEAM AND WE'LL TALK DIFFERENT FUNDING OPTIONS FOR THE PROJECT SO IT RELATES TO THE TO THE PROJECT ITSELF. BATTERY NOURISHMENT IS SOMETHING THAT IS COVERED THROUGH THE TOWN'S BEACH MANAGEMENT PLAN. 
          AS PART OF THAT PLAN WE IDENTIFY THAT WE WILL CONDUCT BEACH RENOURISHMENT EVERY 8 TO 10 YEARS. THE REASON THAT'S A RANGE IS A NUMBER OF DIFFERENT FACTORS THAT IMPACT OUR BEACH ARE ALL WEATHER SO IT DEPEND ON THE FREQUENCY OF STORMS, THE AMOUNT OF EROSION INCREASE THAT TAKES PLACE ON OUR BEACH BECAUSE OUR BEACH IS ALWAYS IN IT IS ALWAYS CONSTANTLY CHANGING. IT MAY BE SOONER THAN EIGHT YEARS. 
          IT MAY BE LONGER THAN TEN YEARS BUT GENERALLY WITHIN AN 8 TO 10 YEAR TIME FRAME IS WHEN WE WILL BEACH NOURISHMENT. AS PART OF THIS PROJECT WE WILL BE MOVING OVER 2 MILLION CUBIC YARDS OF SAND ONTO OUR BEACHES WE WILL ALSO BE PRODUCING SIX RIP WRAP BREAKWATERS OUT OF PINE ISLAND AND THE BACK END OF THE ISLAND NEAR EACH TO HOME HOME PLANTATION SORRY FOR THE ACRONYM THE SAND ITSELF IF YOU WEREN'T AWARE IT COMES FROM SEVERAL OF OFFSHORE AREAS YOU'LL SEE THOSE OFFSHORE AREAS LOCATED ON A ON A MAP. THEY ARE ANYWHERE FROM 3 TO 8 MILES OFFSHORE. THE SAND IS DREDGED AND PUMPED ONTO THE BEACH AND THEN PLACED AS WE GO THROUGH THE PHASES OF OUR PROJECT WE'LL TALK ABOUT HERE IN A SECOND THERE WILL BE DISRUPTIONS AS PART THIS PROJECT AS THEY'RE WORKING ON THE BEACH GENERALLY THOSE DISRUPTIONS HAPPEN IN THOUSAND FOOT INCREMENTS FROM ANYWHERE FROM A COUPLE OF DAYS UP TO A WEEK GENERALLY THE PROJECT MOVES AT A PACE OF ABOUT A FOOTBALL FIELD A DAY AGAIN THAT DEPENDS ON DIFFERENT FACTORS RELATED TO WHERE THEY ARE WORKING ON THE BEACH AND HOW MUCH THAT NEEDS TO BE DEPOSITED IN THAT SPECIFIC AREA. BUT IT IS A 24 SEVEN OPERATION AND KEEPS US KEEPS IT BE MOVING ALONG THE BEACH IN THAT IN A SEQUENCE THE PROJECT ITSELF WAS DEVELOPED AND DICTATED US THROUGH OUR PERMIT WHICH WAS ISSUED TO US FISH AND WHILE IT WAS THROUGH US FISH AND WILDLIFE THROUGH THE ARMY CORPS AND WITH THE STATE IT IS NOT CENTERED AROUND WHEN TOURISTS ON THE BEACH ARE NOT IS IT IS CENTERED AROUND WHEN THE ENVIRONMENTAL CONDITIONS ARE ON THE BEACH AND THAT'S SPECIFICALLY RELATED TO NESTING SEA TURTLES AND MIGRATORY SHOREBIRDS AND WE'LL TALK ABOUT THOSE WHAT THOSE WINDOWS LOOK LIKE HERE ON THE NEXT SLIDE NEXT COUPLE OF SLIDES. SO ON THE PROJECT ITSELF IT IS BROKEN INTO TWO SEPARATE PERMITS THAT WE WILL BE RECEIVING ONE PERMIT WHEN WE LAST SPOKE IN OCTOBER THIS PERMIT WAS WAS PENDING WE JUST RECEIVED WORD SO THIS IS ON THE NEWS THAT WE HAVE TO SHARE WITH YOU BOTH THE ARMY CORPS AND THE STATE HAVE SIGNED OFF PERMIT NUMBER ONE WHICH INCLUDES THE SOUTH CENTRAL AND NORTH BEACH AND FISH ALSO BASICALLY THE GREEN AREAS AS YOU SEE ON THE MAP WHILE I'M TALKING ABOUT THE MAP YOU CAN SEE THOSE RED DOTS THAT ARE OUT IN THE OFFSHORE. THOSE ARE THE THE BORROW AREAS FOR WHERE THE SAND IS GOING TO BECOME COME FROM AND BE PUMPED AND PLACED BACK ONTO OUR BEACH . 
          BUT THAT PERMIT IS APPROVED. WE DO HAVE A SECOND PERMIT THAT IS STILL PENDING THAT DEALS WITH PINE ISLAND AND THE RENOURISHMENT OF PINE ISLAND AS WELL AS THE SIX BREAKWATER 
          [00:05:03]
STRUCTURES THAT ARE ASSOCIATED WITH PINE ISLAND. WE EXPECT TO RECEIVE THAT PERMIT ABOUT A TIME CHRIS CORRECT ME IF I HAVE THAT INCORRECTLY AT ABOUT THE TIME THAT GOING TO BE ISSUING THE CONTRACT FOR THE PROJECT. SO IN THE NEXT 60 TO 75 DAYS AS PART OF THAT PERMIT MY COLLEAGUE SEAN COLLUM SHARED WITH THE TOWN COUNCIL RECENTLY THAT THERE WAS GOING TO BE A CONDITION OF OUR PERMIT AND THAT CONDITION OF OUR PERMIT DEALS WITH A SMALL SECTION OF OUR BEACH OUT ON NORWELL SOUND BASICALLY EXTENDING FROM THE SPA AND PORT ROYAL ACROSS THE FRONT OF THE HISTORIC MITCHELL BILL FREEDOM PARK OVER TO FISH CREEK ITSELF. AND IN THAT AREA THERE IS A LARGE PRESENCE OF MIGRATORY IN THAT AREA AND WE HAVE BEEN REQUIRED TO RESTRICT DOGS FROM THAT LOCATION A REASON FOR THE DOG RESTRICTION IS NOT ALWAYS BUT DOGS DO TEND TO DISTURB BIRDS AS AS THEY'RE ON THE BEACH AND NESTING AND SO AS A CONDITION OF ACCEPTING THE PERMIT WE WILL BE REQUIRED TO PUT THIS IN PLACE A DOG RESTRICTION IN PLACE ON THE SECTION OF THE BEACH. 
          IT WILL BE SIGNED, WILL BE CLEARLY MARKED. WE WILL ALSO HAVE TO AMEND OUR BEACH RULES AND WE WILL HAVE TO AMEND BEACH RULES PRIOR TO THE START OF CONSTRUCTION. 
          SO YOU'LL SEE ON OUR SCHEDULE ON THE NEXT SLIDE WE HAVE THAT FACTORED IN AND WE'LL BE PRESENTING TO TOWN AN AMENDMENT TO OUR BEACH RULES TO ACCOMMODATE HOW OF THOSE REQUIREMENTS. SO AS FAR AS WE ARE IN TERMS OF THE PROJECT, THE BIOLOGICAL OPINION WAS HAS BEEN ISSUED THAT WAS ISSUED BACK IN AUGUST PERMIT ONE HAS BEEN APPROVED BY THE STATE AND THEN WHERE WE ARE FIRMLY INTO OUR PRE-CONSTRUCTION PROCESS AND ARE ABLE TO NOW START BUILDING ARE THE PROJECT EXPECT TO ISSUE THE BID HERE IN THE NEXT 2 TO 3 WEEKS IT WILL BE OPEN FOR ABOUT 30 DAYS FROM THERE WE HAVE TO EVALUATE WHAT THEY CONTRACTOR AND THEN NEGOTIATE AND THEN BASICALLY ENTER INTO A CONTRACT AND ALL THESE ILLEGAL DOGS ARE ASSOCIATED WITH THE CONTRACT WE EXPECT TO HAVE THAT PROCESS COMPLETED SOMETIME IN MAY AS I MENTIONED WE WILL NEED TO AMEND OUR BEACH PARK RULES. WE WILL SUBMIT THAT TO TWO TOWN COUNCIL CSP COMMITTEE IN AND THEN WORK THROUGH THE COUNCIL TO REALLY AND PROCESS IN MAY THE PROJECT WILL BE COMPLETED IN THREE SEPARATE PHASES. THE FIRST PHASE THE PERMIT WINDOW ACTUALLY OPENS IN JUNE AND WE'VE TALKED A LOT ABOUT JUNE IN PAST MEETINGS AS WE'VE TALKED ABOUT THAT IS THAT'S THE DATE THAT WE'RE GOING TO START CONSTRUCTION THAT IS NOT THE DATE WE'RE GOING TO START CONSTRUCTION. THAT IS THE DATE THAT THE PERMIT OPENS. THAT'S WHEN WE CAN LEGALLY START TO DO WORK. 
          BUT THE PRACTICAL REALITY IT IS BY THE TIME WE GET CONTRACTORS ON BOARD AND HOW THEY WANT TO SEQUENCE AND WORK FROM THE NORTH END DOWN TO THE CENTRAL LAND AND THEN TO THE TO THE CENTRAL SECTION DOWN TO THE SOUTH AND THEY ARE GOING TO LIKELY START SOMETIME PROBABLY IN LATE JULY OR AUGUST TBD ONCE WE HAVE A CONTRACTOR SELECTED THEY WILL GIVE US A SCHEDULE THAT'LL THAT'LL MAP MORE SPECIFICALLY AND CLEARLY WHERE THEY WILL BE ON THE BEACH OR WHAT THEY EXPECT TO BE ON THE BEACH AT ANY GIVEN TIME. SO WE ARE SHOWING THAT PHASE ONE WHICH DEALS WITH THE NORTH END SO PINE ISLAND RENOURISHMENT FISH HALL CREEK AND HILL SUMMER START OF CONSTRUCTION END OF CONSTRUCTION SOMETIME IN SEPTEMBER OR OCTOBER THAT PHASE OF THE PROJECT IS ABOUT AND JUST AS AN ORDER OF MAGNITUDE IS ABOUT AN $18 MILLION PROJECT PHASE TWO THEN WILL BE THE SOUTH AND CENTRAL PORTIONS OF THE PROJECT AGAIN BECAUSE OF THAT SEQUENCING THAT PERMIT OPENS UP IN SEPTEMBER OF THIS YEAR AND RUNS THROUGH MAY OF 2026. SO KNOWING THAT THE CONTRACTOR NEEDS TO BE DONE BY OCTOBER ON THE NORTH WE EXPECT THEM TO ARRIVE AT THE CENTRAL AND SOUTH ENDS IN IN SEPTEMBER OCTOBER AN ORDER OF MAGNITUDE ON THAT PROJECT THAT IS OUR LARGEST NOURISHMENT PORTION OF THE PROJECT THAT'S ABOUT A $27 MILLION PORTION OF THE PROJECT AND THEN THE FINAL SECTION WILL BE PHASE THREE WILL BE THE BREAKWATERS ON PINE ISLAND. 
          IT'LL PROBABLY BE A BREAK IN CONSTRUCTION FROM AND THE CONTRACTOR WILL RETURN AND INSTALL THOSE BREAKWATERS AT A AT A LATER DATE AND THAT'S ABOUT A $3 MILLION PROJECT FOR THOSE BREAKWATERS. THERE IS A ROBUST COMMUNICATIONS PLAN THAT'S BEEN PUT IN PLACE WITH THE PROJECT TEAM WORKING WITH OUR COMMUNICATIONS DEPARTMENT. 
          THIS SLIDE HOPEFULLY LOOKS ELSEWHERE. WE SHARE BACK IN OCTOBER AND WHAT WE'RE TRYING TO ACCOMPLISH WITH THE COMMUNICATION IS PLAN TO MAKE SURE WE REACH AS MANY PEOPLE AS WE POSSIBLY CAN ON THE ISLAND OFF THE ISLAND THAT THEY MAY BE ARRIVING ON THE ISLAND DURING DURING THIS CONSTRUCTION YOU CAN SEE OUR TARGET AUDIENCES ANYWHERE FROM OUR RESIDENTS AND BUSINESSES ALL THE DIFFERENT ORGANIZATIONS THAT ARE ON THE I'M AND OUR COMMUNITY AND THEN THE FOR THE FULL BREADTH OF HOW WE'RE GOING TO WORK WITH OUR MEDIA OUTREACH TO TO MAKE SURE THAT THAT MESSAGE IS SHARED TODAY IF YOU HAVEN'T LOOKED OUR WEBSITE WE 
          [00:10:09]
HAVE A VERY ROBUST WEB PAGE DEDICATED TO THIS PROJECT WITH ALL KINDS OF INFORMATION RELATED TO THE PERMITS THE PLANS THEMSELVES PROJECT OR PICTURES AND OF PAST PROJECTS SO YOU CAN GET AN UNDERSTANDING OF WHAT A BEACH RENOURISHMENT LOOKS LIKE. 
          WE'LL USE THAT AS OUR CENTRAL HUB FOR DISSEMINATING INFORMATION AS PART OF THE PROJECT ONGOING PROVIDING REAL TIME UPDATES ON WHERE WE'RE WORKING ON THE BEACH ONCE WE GET INTO GET INTO ACTUAL CONSTRUCTION WE'VE DISTRIBUTED LETTERS, WE'VE DISTRIBUTED OUR NEWSLETTERS. WE'VE HAD MEDIA BRIEFINGS, WE'VE HAD MEDIA INTERVIEWS THROUGH THE PROJECT TEAM AND AS I MENTIONED WE DO HAVE AN UPDATE THE BEACH NOURISHMENT VIDEO BEEN HAS BEEN AND SHARED THROUGH OUR OUR VARIOUS MEDIA CHANNELS NEXT STEPS ARE AS ONCE WE GET MORE DEFINITIVE INFORMATION A CONTRACTOR UNDER UNDER CONTRACT WILL THEN START TO BE ABLE TO PROVIDE MORE SPECIFIC INFORMATION THOSE SAME CATEGORIES OF FOLKS AND THEN MAINTAIN THAT CONSTANT RHYTHM OF INFORMATION SO PEOPLE ALWAYS KNOW WHERE WE ARE WHAT WE'RE DOING AND WHEN WE'RE DOING IT. SO THAT'S WHAT WE'LL DO THE NEXT HANDFUL OF MONTHS AS WE GET READY FOR THE PROJECT AS WE LOOK FORWARD TO COMPLETING THE PROJECT THROUGH THROUGH MAY OF NEXT YEAR. THOSE ARE ALL JUST A BRIEF OVERVIEW OF WHERE WE ARE WITH THE PROJECT OF PAUSE HERE TO ANSWER ANY QUESTIONS IF THAT'S OKAY AND OTHERWISE WE'LL HAND IT TO ENRON AND HER TEAM TO THE COUNCIL. HAVE ANY QUESTIONS AT THIS POINT ON THE OPERATIONAL SIDE? YEAH, JUST TWO SIMPLE ONES IN REGARDS TO PHASE ONE, DO WE KNOW WHICH ACTIVITY IS GOING TO FIRST FISH HALL OR PORT ROYAL? DO NOT. 
          THAT'LL BE SOMETHING THAT'S DRIVEN BY THE CONTRACTOR BUT I'LL LOOK DOWN THE LINE TO JEFF AND CHRIS WHO ARE MUCH MORE INVOLVED IN THAT DETAIL AND I AM CHRIS IS THE WE'RE GOING TO GIVE THE CONTRACTOR THE FLEXIBILITY TO MAKE THAT DECISION AND GIVE HIM A BASICALLY A TIME PERIOD TO WORK AND LET HIM WHICH IS GOING TO BE MOST OPERATIONALLY AND I THINK THAT WILL BE FAVORABLE TO THE BID PRICING AS WELL. WE DON'T WANT TO I TO CONSTRAIN THEM TOO MUCH AND DICTATING HOW THEY DO IT. OKAY. 
          AND THEN THEN I JUST WANT TO MAKE SURE I UNDERSTOOD CORRECTLY. 
          YOU SAID THAT PHASE THREE WAS $3 MILLION AS AN ORDER OF MAGNITUDE. 
          YES. WE WON'T THE PRICE UNTIL WE HAVE PRICING BUT JUST AS ORDER OF MAGNITUDE FROM FROM MONTHLY WAS FROM I SORT OF CRINGE BRINGING THIS UP BUT I NEED TO IS THERE A CONTINGENCY PLAN I APPRECIATE THE TIMELINE AND I WANT US TO ACCOMPLISHED THIS TIMELINE BUT WE ALL KNOW THAT THINGS HAPPEN SO GUESS MY QUESTION IS TWOFOLD IF THERE ARE CIRCUMSTANCES THAT ARE OUT OF OUR CONTROL, WHAT? BECAUSE THIS TIMELINE IN PARTICULAR WHEN IT COMES TO THE PHASES SEEMS TO BE WORKING AROUND OUR TOURIST SEASON IN THOSE PARTICULAR AREAS. SO I'M CURIOUS TO KNOW WHAT IF SOMETHING HAPPENS DO WE SHIFT OR NOT? OKAY, THAT'S A QUESTION THE ONE IN ORDER ANY DECISIONS THAT NEED TO BE MADE BY US THAT COULD POTENTIALLY DISRUPT THE TIMELINE. 
          SO YES, THERE ARE A NUMBER OF FACTORS THAT GO INTO CONSTRUCTION, ESPECIALLY ONES WE'RE GOING TO BE DOING CONSTRUCTION DURING THE HURRICANE SEASON. 
          THERE COULD BE THINGS THAT DISRUPT OUR OPERATION IF THAT HAPPENS CHRIS FIRST WE'VE BEEN WITH US FOR FOR A NUMBER OF BE TRYING HAVE YOU BEEN FOR EVERYONE EVERY BREACH OR HARASSMENT WE EVER BEEN THROUGH WE WILL HAVE TO ASSESS THAT AND ADJUST FROM THERE AND MAKE AMENDMENTS TO OUR PERMIT TO THE TRACK WE ARE ON. HOWEVER WE BELIEVE WE HAVE A GOOD TRACK FORWARD. WE'VE DONE THIS BEFORE. WE HAVE CONTRACTORS THAT ARE AWARE THAT OUR PROJECT HAS IN. WE HAVE NO REASON TO BELIEVE AT THIS POINT OTHER THAN A WEATHER RELATED EVENT THAT WOULD DELAY US FROM FROM EVENTS THE PROJECT AS AS LAID OUT IN OUR SCHEDULE ESPECIALLY NOW HAVING THE PERMIT THE MAIN PERMIT HAND AS IT RELATES TO DECISIONS FROM FROM TOWN COUNCIL I THINK KNOWING HAVING THIS WORKSHOP AND UNDERSTANDING AT THE END OF THIS FOR OUR FUNDING OPTIONS WE'RE MOVING FORWARD WITH PAYMENT. 
          THAT'S AN IMPORTANT DECISION THAT WE NEED TO KNOW TO KEEP THIS SCHEDULE MOVING FORWARD, THIS TIMELINE MOVING FORWARD LIKE TO THINK THANK YOU. THE QUESTION I REALLY HAVE IS CIRCLING BACK TO A DECISION THAT WAS ALREADY MADE AND WE NOW HAVE OUR PERMIT BUT THE RESTRICTIONS FOR DOGS ON THAT PORTION OF THE BEACH IS AND I UNDERSTAND FROM READING IT THAT THAT'S A PERMANENT DECISION BUT I'VE GOTTEN A NUMBER QUESTIONS AND I UNDERSTAND THEIR CONCERNS WHEN DID THE ASSESSMENT THAT THERE WERE THESE MIGRATING BIRDS OR THESE NESTING BIRDS 
          [00:15:03]
THERE WHEN DID THAT AND WHAT HAPPENS IN THE FUTURE IF WE IDENTIFY THAT THEY NO LONGER ARE TAKING A PRESIDENCY IN THAT SPACE, IS THERE A WAY THAT WE COULD BACK UP AND TAKE THAT RESTRICTION OUT AND WHAT HAPPENS IN THE FUTURE IF THERE'S SOME OTHER IDENTIFIED NEED FOR PROTECTION OF A SPECIES OF ANIMAL AND IN ANOTHER RESTRICTION IS REQUIRED SO NOT SURE IF THIS IS NECESSARILY THE BEST PLACE FOR THOSE ANSWERS BUT IF I CAN GET THOSE ANSWERS YEAH I THINK THIS IS A A SO THE BIRD ISSUE ON HILTON HEAD I THINK JUST A GENERAL KNOWLEDGE THERE'S A LOT OF SHOREBIRD OBSERVATIONS THAT OCCUR THROUGHOUT THE GEORGIA BIGHT. THIS IS WINTERING AREA FOR PIPING PLOVER AND NOW THE RED KNOT HILTON HEAD THROUGH OUR PAST PROJECTS HAS HAD NUMEROUS BIRD MONITORING PROGRAMS THAT HAVE BEEN GOING ON FOR AT POINT DECADES AND SO THERE'S A PRETTY PRETTY DEEP DATABASE NOW OF THE KNOWN ACTIVITY PARTICULARLY IN PIPING CLIMBERS DOWN TO THE INDIVIDUALS ON THE ISLAND THAT HAVE HAVE OCCURRED OVER THE YEARS. AND SO THEY UNDERSTAND THIS TO BE A VERY IMPORTANT PLACE. THE U.S. FISH AND WILDLIFE SERVICE HAS IDENTIFIED THE NORTHERN END OF HILTON HEAD IS AN AREA OF PRIORITY IN TERMS OF HABITAT AND AREA OF USE AND IS REALLY HAS BEEN THIS DOG ISSUE HAS BEEN A LONG GOAL. THE U.S. FISH AND WILDLIFE SERVICE ON THE ISLAND AND SO IT WAS AS I'VE IT COMING FOR THE LAST 20 YEARS IT'S SOMETHING THAT THERE WAS GOING TO BE A PUSH TO DO THIS BASED UPON WHAT THEY KNOW ABOUT IT NOW BUT I ALSO IN DEFENSE OF THE US FISH AND WILDLIFE SERVICE IN PARTICULAR THE STAFF IN THE CHARLESTON HAVE FOUND I HAVE FOUND THEM TO BE VERY REASONABLE AND WITH THE TOWN AND IN THIS PARTICULAR INSTANCE YOU KNOW THERE ARE SOME OF THE COUNTRY AND PARTICULARLY IN THE SOUTHEAST WHERE WE CAN'T WORK AT ALL IN THE SUMMERTIME AND SOME EVEN THE SHORTER SEASONS BECAUSE OF NESTING TURTLES AND THAT. AND WHEN YOU FIND THE US FISHERMEN SERVE AS HAVING TURTLES AND BIRDS AND SOME AGENCIES WILL WANT TO PROTECT THEM ALL AT THE SAME TIME. BUT THIS PARTICULAR OFFICE HAS WORKED WELL WITH THE TOWN OVER THE YEARS AND PRIORITIZED THEIR PROTECTIONS AND GIVEN THE OPPORTUNITY TO WORK IN OTHER AREAS OF THE ISLAND WITH SOME OF THESE OTHER PROTECTIONS ARE ARE NEEDED TO BE IMPLEMENTED THINKING ABOUT THE FUTURE IS HARD TO PREDICT WHAT WILL HAPPEN YOU KNOW SOMETIMES WE FIND THERE'S NEW LISTINGS ALL THE TIME NEW NEW SPECIES, NEW CRITICAL HABITAT HABITAT DESIGNATIONS AND I THINK IT'LL JUST HAVE TO BE SOMETHING TOWN WON'T NEED TO ADJUST TO AND CONTINUE TO MONITOR AS YOU MOVE FORWARD WITH THIS PROGRAM AND I THINKING ABOUT THE BEACH OVERALL OVER THE LAST 3540 YEARS IN THIS PROGRAM, YOU KNOW THERE WAS REALLY NO SEA TURTLE NESTING HABITAT AVAILABLE ON LARGE PORTIONS OF HILTON HEAD ISLAND BEFORE THE PROGRAM AND NOW WE'VE CREATED ALL THIS VALUABLE HABITAT AND ALL OF THESE YOU KNOW, THE TURTLES AND BIRDS THAT ARE NOW USING THEM ARE FINDING IT SO SO IT'S AND THE U.S. FISH AND WILDLIFE SERVICE STAFF IN CHARLESTON DO UNDERSTAND THAT HEY, WITHOUT THIS PROGRAM WE WOULDN'T HAVE THE HABITAT CONDITIONS. AND SO THEY HAVE TRADITIONALLY WILLING TO WORK WITH US. 
          I DON'T KNOW THAT ANSWERS YOUR QUESTION BUT. I THINK YOU REALLY CAN'T PREDICT THE FUTURE ON HOW THIS MIGHT BE ADJUSTED OR WHETHER THERE'S GOING TO BE A PERMANENT THING OR NOT. BUT I THINK GIVEN THE REMOTENESS AND THE DIFFICULTY ACCESS AND HAS PROBABLY A YOU KNOW PROBABLY SHOULD BE A FAIRLY PERMANENT LOCATION THE BIRDS TEND TO CONGREGATE WHERE THERE'S LOWER ACTIVITY WAS A LOT OF GREAT INFORMATION THANK YOU AND I DO APPRECIATE IT. I THINK SHAWN HAD MENTIONED THAT THERE WAS SOME NEGOTIATION THAT WENT ON THAT MADE THE AREA LESS EXPANSIVE AND KIND OF CONSOLIDATED IT AND THAT'S GOOD NEWS . BUT I THINK FOR A RESIDENT FOCUSED ISLAND OUR ANIMALS ARE DOGS ON THE BEACH ARE INCREDIBLY IMPORTANT TO US. SO MOVING FORWARD I THINK ALL NEED TO KEEP AN EYE ON THESE TYPES OF THINGS. I DON'T THINK SO. 
          WE DON'T DISTURB WHAT IT IS AND HOW THAT IS KNOWN FOR IT WHICH IS A BEACH DOG BEACH FRIENDLY NEIGHBORHOOD. SO THANK YOU FOR THE INFORMATION IT WAS A LOT AND HELPFUL AND I WILL SHARE IT I WILL SHARE THERE WAS A LOT OF CONCERN ABOUT THIS. 
          THANKS I WAS PERSONALLY THANK YOU. A COUPLE OF QUESTIONS ABOUT THE PERMITTING AND PHASING. I'M LOOKING AT TWO DOCUMENTS BEFORE ME. 
          ONE REFERS TO PERMIT TWO WHICH INCLUDES THOSE PHASES IF YOU WILL ABOUT PINE ISLAND ONE IS THE BEACH RENOURISHMENT, THE OTHER IS THE GROINS FOR LACK OF I THINK THAT'S A TERM I REMEMBER AND THEN I'M LOOKING I'M LOOKING AT ONE DOCUMENT THAT SAYS THERE'S THREE DIFFERENT PERMITS AND THE OTHER ONE SAYS OR TWO PERMITS IT'S IN ANOTHER THREE PHASES. 
          SO CAN YOU CLARIFY FOR ME SO YES AND I SHOULD HAVE DONE AT THE VERY BEGINNING WE HAD A 
          [00:20:01]
COUPLE OF MINOR TWEAKS TO THE PRESENTATION AS AS WE FROM THE TIME IT WAS RELEASED FOR YOUR PACKAGE TO THE VERSION TODAY THE VERSION THAT'S UP HERE THERE ARE THERE ARE THERE ARE TWO PERMITS THE THE HIGH ISLAND IS ROLLED INTO TO A SINGLE PERMIT THAT'S PUT INTO TWO AND AND YOU SAY THAT THE PINE ISLAND THAT AREA OF THE RENOURISHMENT I'M NOT CONCERNED ABOUT THE TIMING IS IT THE BREAKWATER STRUCTURES THAT ARE CAUSING THE HOLDUP AND PERMIT APPROVAL OR IS THERE ANOTHER REASON THAT IT'S BEING DELAYED AS PERMIT ONE APPROVAL IT WAS MORE OF JUST A FOCUS WAS ON THE MAINE BEACH PERMIT AND THAT'S WHERE ALL THE DIFFERENT REGULATED AGENCIES PUT ALL THEIR FOCUS IN ON THAT MAIN BEACH BECAUSE. 
          THAT WAS THE THE MOST TIME SENSITIVE PORTION AND THE IT'S NOT THAT THEY WEREN'T FOCUSED ON THE PINE ISLAND THE PERMIT TO THEY WERE IT JUST WAS THEY THEY THEY PUT THEIR EFFORTS IN THE OTHER ONE AND SO THIS ONE IS FOLLOWING CLOSELY BEHIND AND AGAIN WE EXPECT TO HAVE THAT IN NEXT PROBABLY 60 TO 75 DAYS IS AT 60 TO 75 DAYS AND AND I THINK I HEARD YOU SAY BECAUSE THAT'S SUPPOSED TO START IN JUNE OR JULY OF THIS YEAR JUNE OR JULY OF THIS YEAR. 
          THE RENOURISHMENT OF PINE ISLAND, PART OF THE JUNE TO SEPT PHASE ONE WINDOW SO YES AND WE WILL HAVE THE PERMANENT HAND TO COMPLETE THE RENOURISHMENT AND AN ISLAND WITH THE PHASE ONE WINDOW AND SO DID I HEAR SAY THAT ABOUT THE TIME WHEN THE CONTRACTS WERE ISSUED IS IS WHEN THE PERMIT EXPECTED SEEMS LIKE IT'S ALSO CLOSING TIME IT'LL BE ABOUT ABOUT THE SAME TIME AS WHAT WE EXPECT BASED ON OUR CONVERSATIONS WITH THE REGULATORS YOU CAN GET IT OUT OF HAVING THE PERMIT IN PLACE OKAY IT'LL BE SEQUENCE SO THEY WILL BE ALLOWED TO START THAT PHASE UNTIL AFTER MIDNIGHT. SO THAT'S WHAT WE AND THEN THE LAST QUESTION ABOUT MOVING FORWARD IS THAT WE'RE REQUIRED TO HAVE SOME MUNICIPAL CODE AMENDMENTS AND I REMEMBER SAYING LET'S ACCELERATE THAT BECAUSE I THOUGHT I WAS HOLDING UP PERMIT ISSUANCE AND SO IT LOOKS AS THOUGH WE'VE GOTTEN ONE PERMIT AND MY QUESTION IS IS THAT A PERMIT TO OKAY. NO, IT'S IT'S A CONDITION OF THE PERMIT. 
          WHAT IT WILL HOLD UP IS CONSTRUCTION. SO WE HAVE TO HAVE IT DONE BY FOUR CONSTRUCTION TIMES. GOING TO ASK US ABOUT WHAT'S THE TIMING NOW THE MUNICIPAL CODE AMENDMENT SO BEFORE JUNE ONE REALLY BEFORE I'LL OUR MAIN ONE I'LL JUMP IN I'LL HELP WITH THAT. YEAH I'VE GOT A I HAVE SCHEDULE HERE LOOKING AT BRINGING THE MUNICIPAL CODE AMENDMENT RIGHT AND SO TOWN COUNCIL HAS A AS A REMINDER YOU PASSED A RESOLUTION COMMITTING TO THE AMENDMENT THAT ALLOWED THE AGENCY THE PERMITTING AGENCY TO HAVE SOME CONFIDENCE THAT THEY CAN ISSUE THE PERMIT. YET THE CONDITION ON THE PERMIT IS WE WILL NOT START CONSTRUCTION UNTIL THE CODE IS AMENDED. 
          SO I ANTICIPATE BRINGING THE CODE AMENDMENT FORWARD TO COMMITTEE IN APRIL WITH APPROVAL IN MAY AND THANK CHRIS JUST REAL QUICK AND MAYBE MAKE SOMEBODY A LITTLE BIT BETTER BUT THE PROCESS THAT IS TAKING RIGHT NOW IS THAT PRETTY STANDARD AS IS VERY STANDARD BUT I JUST WANT TO GET IN THE WEEDS OF TRYING TO MICROMANAGE A PROCESS THAT THEY'RE TYPICALLY ADHERING ON A REGULAR BASIS SO OKAY SIR I KNOW THEY'RE LOOKING AT THREE PHASES OF CONSTRUCTION IN PHASE TWO YOU'VE GOT SOUTH BEACH IN CENTRAL IN THE SAME PHASE ABOUT EIGHT OR NINE MONTH PERIOD. IS IS THERE ANY KNOWLEDGE AT THIS POINT AS TO WHETHER CENTRAL COMES FIRST MIDDLE OR LAST OR DOING BOTH AT THE SAME TIME SINCE IT'S SUCH A NINE MONTH TIME PERIOD THAT'S INVOLVED? YEAH, I WAS ACTUALLY GOING TO MENTION THAT IF I HAD A CHANCE THE WINDOW THIS PRESENTED FOR PHASE TWO SAYS SEPTEMBER OCTOBER 25 TO MAY 26 IS ACTUALLY THE PERMITTED TIMEFRAME. 
          THEY HAVE NO EXPECTATION THEY'LL TAKE ALL THAT TIME. IT'S VERY LIKELY THEY'LL ONLY BE IN THE CENTRAL ISLAND IN SOUTH BEACH AREA PROBABLY THREE MONTHS AT MOST SO IT'S LIKELY ANTICIPATED THEY START WHEN WE THINK THEY WILL START THAT THE PROJECT WILL BE COMPLETE BY JANUARY FEBRUARY NEXT YEAR. THE ORDER OF WORK AGAIN FOR THOSE PIECES WE ARE CURRENTLY NOT PLANNING TO DICTATE WHICH ORDER OF WORK THEY CHOOSE JUST AGAIN FOR EFFICIENCIES IS TO LET THE CONTRACTOR DECIDE WHAT IS MOST EFFICIENT FOR THEM WHICH IN TURN HOPEFULLY TURNS INTO GOOD PRICING ON THE BIT AND I GUESS I I'M IN OFFICE GOOD AFTERNOON. 
          [3.b. Beach Renourishment Funding Strategy]
TOWN COUNCIL MEMBERS AFTERNOON MEMBERS OF THE PUBLIC THANK YOU FOR BEING HERE. 
          SO I WANT TO DO THIS A LITTLE DIFFERENT. THERE'S ALWAYS AN EMOTIONAL 
          [00:25:03]
CONNECTION EVERY TIME WE TALK ABOUT MONEY AND ESPECIALLY WHEN IT IS OUR MONEY. 
          SO WHAT I WOULD LIKE TO DO HERE IS MAKE IT A LITTLE PERSONAL AND BY PERSONAL I'M TALKING ABOUT ACTUALLY EXAMPLES OF OUR DAY TO DAY EXPLAINING THE FUNDING OPTIONS THAT WE HAVE HERE TODAY. SO THE FIRST SLIDE THAT YOU HAVE HERE IS IN RELATION TO HOW GREAT WE AS A TOWN ARE DOING WE ARE VERY PRIVILEGE ISLAND WHERE WE HAVE MANY SOURCES OF REVENUE ,WE HAVE THE OF UTILIZING A LOT OF THESE SOURCES OF REVENUE FOR MANY MANY DIFFERENT PROJECTS BOTH OPERATING AND CIP PROJECTS. SO CAPITAL IMPROVEMENT PROJECTS ALSO KNOWN AS VIP HOWEVER WON'T TALKING ABOUT THIS WE KNOW IT'S BEEN SOMETHING THAT I WANT TO BRING TO YOUR ATTENTION AND SOMETHING THAT I WANT THE PUBLIC TO UNDERSTAND IS YES WE HAVE ALL SOURCES OF REVENUE. IT DOESN'T MEAN THAT WE GET TO USE ALL THE SOURCES OF REVENUE BECAUSE IN SOME CASES WE HAVE A STATE STATUTES THAT WILL US FROM UTILIZING 100% OF ALL THIS FUNDS IN SOME CASES. ARE THERE SOME LOCAL ORDINANCES AND STATUTES THAT YIELD THE TOWN COUNCIL? EITHER YOU OR BEFORE YOU HAVE PASSED THAT WILL PREVENT US FROM UTILIZING 100% OF A SPECIFIC FUND. SO WHAT I WOULD LIKE TO DO IN THIS SLIDE IS ACTUALLY BRING TO YOUR ATTENTION THESE SOURCES OF FUNDING YOU SEE HERE ARE THE ONES WE CAN POTENTIALLY UTILIZE AS WE'RE THINKING ABOUT FUNDING THIS PROJECT. 
          SO THE FIRST ONE THAT I HAVE HERE IS THE GENERAL FUND SOME OF PROBABLY KNOW THE GENERAL FUND THIS WHAT I SEE CHECKING ACCOUNT IS A CELL OPERATING ON THIS IS HOW WE PAY FOR EVERYTHING IS HAPPENING ON THIS ISLAND. THIS IS OUR OUR FEE FOR UTILITIES AND THERE'S ALSO SOME REQUIREMENTS THAT WE HAVE THREE RATED OR SOME ORDINANCES THAT WE PASSED A FEW YEARS BACK AND IT DEALS WITH THE WAY WE SHOULD KEEP RESERVES ON THIS FUND. 
          SO FOR INSTANCE WE HAVE THAT WE HAVE A MINIMUM 40% MAX AND A 55% MAX BASE ON OPERATING BUDGET FOR THIS FISCAL YEAR. THAT MEANS WE HAVE TO STAY THAT RANGE. 
          SO WHEN WE'RE THINKING ABOUT POTENTIAL OF UTILIZING FUNDS FROM THE GENERAL FUND WE NEED TO KEEP IN MIND THAT THIS THRESHOLD IS A RESTRICTION AND WE NEED TO MAKE SURE WE STAY WITHIN THAT AS WE CONTINUE WITH THE BASE PRESERVATION FEE FOND WHICH IS THE NEXT ONE WHICH IS $44.8 MILLION. I WANT TO MAKE SURE IT IS CLEAR THIS IS NOT CALLED A BEACH RENOURISHMENT ON THIS IS ACTUALLY OUR BASE PRESERVATION THAT IS UTILIZED OUR MAINTENANCE OF OUR BEACHES IS UTILIZED FOR SOME OF THE CAPITAL THAT YOU APPROVE IN 25 AND IS GOING TO BE UTILIZED FOR IF YOU AGREE FOR POTENTIALLY OTHER PROJECTS THAN THE BEACH RENOURISHMENT PROJECT THAT WE NEED TO ALSO PAY IN FUTURE YEARS. 
          SO I JUST WANTED TO BRING THAT TO YOUR ATTENTION AGAIN THIS IS NOT A BEACH RENOURISHMENT FUND IS A BEACH FEE FOR AND THEN AS WE MOVE TO THE HOSPITALITY TAX WE HAVE 25.7 AGAIN ONE THING THAT I DIDN'T MENTION THIS IS AS OF JANUARY 21ST OF 2025 THIS IS OUR FUND BALANCES AND THEN WE HAVE OUR STATE ACCOMMODATION TAX IS ABOUT $9.2 MILLION. SO WHEN WE'RE LOOKING AT ALL THESE SOURCES OF FUNDS WE CAN POTENTIALLY UTILIZE FOR OUR PROJECT, I WANT TO KEEP AWARE THAT ALSO AND SOMETHING THAT I'LL SKIP THAT VERY IMPORTANT FOR YOU TO KNOW AS IT RELATES TO THE BEACH PRESERVATION FUND BACK IN 2006 THE TOWN COUNCIL MEMBERS THAT WERE HERE IN 2006 THEY DECIDED TO PASS AN ORDINANCE TO MAKE SURE WE KEPT A MINIMUM OF $12 MILLION AS A RESERVE FOR NATURAL DISASTERS. SO JUST BECAUSE WE SEE $44.7 MILLION IN THIS FUND, $12 MILLION HAS TO BE CAPPED OKAY QUESTIONS NOW LET'S FIND THE QUESTIONS FOR LATER. 
          SO SOMETHING ELSE THAT I WANT TO BRING TO THE ATTENTION THE LAST TWO YEARS I'M TALKING 23 
          [00:30:02]
AND 24. WE AS A TOWN HAVE DONE A GREAT JOB MANAGING OUR CASH. 
          THIS IS A GOOD EXAMPLE BECAUSE WE HAVE INVESTED OUR CASH IN WAY THAT HAS CREATED SOME INTEREST WE HAVE EARNED INTEREST ON THE MONEY THAT WE HAVE ON THE CASH THAT WE HAVE LAST YEAR BY SELL WE HAVE ABOUT $10.7 MILLION ON THE INTEREST EARNED IN ALL THE THAT WE HAVE THAT IS A LOT OF MONEY. SO AGAIN THINKING ABOUT CASH, KEEPING THAT IN MIND I HEARD IN THE 40 PLUS YEARS THAT I'VE BEEN IN THIS COUNTRY IN OUR COUNTRY, ONE OF THE THINGS THAT I HEARD MANY TIMES IS CASH IS KING. I LOVE THAT SAME. 
          AND NOW THAT I AM LOOKING AT THIS PRESENTATION AND I'M LOOKING AT WHAT WE ARE THINKING OF DOING FOR THIS PROJECT, I WANT YOU TO KEEP THAT SCENE IN MIND AND THERE'S ANOTHER EXAMPLE THAT I HAVE FOR YOU. LET'S ASSUME THAT YOU HAVE BEEN SAVING MONEY FOR THE LAST FIVE YEARS AND YOU HAVE MANAGED TO SAVE $10,000. LET'S ASSUME THAT YOU HAVE DECIDED THAT IT'S TIME TO REPLACE CAR. LET'S ASSUME THAT YOU HAVE A NEIGHBOR THAT IS SELLING CAR THAT IS THE PERFECT CAR FOR YOU FOR $9,500. 
          SO SOMETHING I WANT TO PUT IN YOUR MIND IS DO YOU PAY CASH DO YOU PAY $9,500 FOR THIS CAR AND YOU WILL HAVE $500 LEFT IN YOUR SAVINGS ACCOUNT? WHAT HAPPENS IF YOU HAVE AN EMERGENCY? WHAT HAPPENS IF YOU HAVE A TREE FALLS ON YOUR ROOF AND THE INSURANCE NOT TO PAY? SO I WANT YOU TO KEEP THOSE THINGS THOSE COMPONENTS MIND BECAUSE THOSE ARE PERSONAL DECISIONS AND I WILL NEVER SEE THAT I AM BIGGER THAN THOSE DECISIONS BECAUSE WE'RE TALKING AND I'M ROUNDING NUMBER UP WE'RE TALKING ABOUT POTENTIALLY $50 MILLION IN CASH THAT WE WON'T BE TO PAY FOR THIS PROJECT. 
          THIS ONE I HAVE I'M A NUMBERS PERSON SO IF YOU LOOK AT THAT SLIDE 12 AND 13 IS ACTUALLY THE SAME THING. ONE IS SAVED NUMBER TABLE REPRESENTATION AND THE ALL I WANT IS A GRAPHIC THE REPRESENTATION SO WHY IS THIS SLIDE IMPORT TEN IT'S I WANT TO MAKE YOU AWARE THAT WHEN WE'RE TALKING ABOUT DEBT FOR OUR TOWN THIS IS NOT A BRAND NEW CONCEPT. I JUST CAME UP LAST YEAR AS WE START TALKING EVEN DURING THE LAST TWO OR THREE YEARS AS WE STARTED TALKING ABOUT THIS RENOURISHMENT WE'VE BEEN UTILIZING THEREFORE OUR TOWN FOR MANY, MANY, MANY NOW ACTUALLY THE LAST BEACH RENOURISHMENT PROJECT THAT WE HAD IS WHAT WE ACTUALLY FINANCED THE PROJECT WITH THE WE ACTUALLY HAVE AND THIS ANOTHER SLIDE OF THAT THAT I WANT TO GET INTO IN DETAIL BUT ON THIS ONE I WANT YOU TO BE AWARE THERE'S DIFFERENT THINGS HERE AND. 
          I HAVE TO PULL MY GLASSES BECAUSE AGE IS A WONDERFUL THING. 
          SO HERE WHAT YOU HAVE IN THIS GRAPH IS ALL THE DIFFERENT BONDS THAT WE HAVE WE HAVE GENERAL OBLIGATION BONDS AND THAT WOULD BE DEFINED WHAT THAT IS LATER ON WE HAVE A SPECIAL OBLIGATION FOR HOSPITALITY PRE WE HAVE A SPECIAL OBLIGATION TO PRESENT THIS PRESERVATION FEE WE HAVE A SPECIAL OBLIGATION BONDS FOR TAX FINANCING AND WE ALSO HAVE A STORMWATER BONDS. 
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
          REMEMBER THAT WHEN THEY WERE PAYING NOW WE HAVE THE PRIVILEGE TO BE ABLE TO PAY OUR 
          [00:35:06]
DEBT AND WE HAVE PAID A LOT OF IT DURING THE LAST FOUR YEARS AND BY WAY, FRANNY AND JOHN, PLEASE KICK ME UNDER THE TABLE. TELL ME I HAVE SOMETHING ELSE TO US. SO FAR SO GOOD. SOMETHING ELSE THAT I WANT TO BRING TO YOUR ATTENTION, JOHN HERE BY THE WAY, HE COMES FROM MOODY'S ONE OF OUR CREDIT AGENCIES AND HE CAN TALK BETTER THAN ME ABOUT THIS TABLE. BUT WHAT I CAN TELL YOU ABOUT THIS TABLE IS THAT THIS IS WHERE WE ARE IN THE DIFFERENT RATING. 
          WE ARE ACTUALLY FOR GENERAL THIS UNDER MOODY'S WE HAVE TIME FOR A RATING FOR OUR PARTICIPATION. WE'RE GOING TO RATING HOSPITALITY FEES. 
          WE'RE TRIPLE A RATING. SO WHAT DOES THAT MEAN? WHAT DOES WHY IS THAT IMPORTANT? BECAUSE WHEN ALL THIS RATING AGENCIES ARE LOOKING AT US AND START LOOKING AT OUR STRENGTH FINANCIAL STRENGTH THEN THEY'RE NOT ONLY LOOKING OUR LIQUIDITY, THEY'RE ALSO LOOKING AT OUR LEADERSHIP, THE DECISIONS THAT WE MAKE OUR STRATEGIC WE ARE THEY'RE LOOKING ALSO AT THE POLICIES THAT WE HAVE IN PLACE. THEY'RE LOOKING AT ALL THE DEBT THAT WE HAVE, HOW HIGHLY OR LOW WE ARE. SO THEY'RE LOOKING AT MANY DIFFERENT COMPONENTS BUT OF THEM THAT THEY'RE LOOKING AT IS LIQUIDITY. 
          SO ANOTHER THING TO REMEMBER TOO LET'S ASSUME THAT WE DECIDE TO SPEND ALL THIS MONEY AND BY THE WAY, I'M NOT SAYING THAT CASH NOT THE ANSWER AGAIN CASH IS KING. 
          I'M NOT SAYING THAT THAT IS THE ANSWER I'M NOT SAYING THE HYBRID IS THE ANSWER. 
          BUT ONE THING TO REMEMBER IF WE DECIDE TO TAKE $50 MILLION OUT OF OUR FUNDS, THEN THERE CAN BE A POTENTIAL RAMIFICATION WITH SOME OF OUR RATINGS. I COULD BE SAY THE SAME SO I WANT YOU TO KEEP THAT IN MIND AS WELL. AND I ALSO WANT TO KEEP IN MIND THAT IF SOMETHING WERE TO HAPPEN AS OUR WEATHER CHANGES WE HAVE MORE STORMS, WE HAVE MORE HURRICANES. YOU KNOW WHAT JUST HAPPENED THIS YEAR? I JUST HERE ABOUT NINE MONTHS AGO AND HOW MANY STORMS I'VE BEEN TO THREE STORMS NOW, CHRIS. HOW MANY? THREE OF THEM. 
          SO WHAT I WOULD LIKE TO MAKE TO BRING THAT TO YOUR ATTENTION IF SOMETHING WERE TO HAPPEN WHEN YOU HAVE CASH IS WHAT BANKS ARE MORE WILLING LEND YOU MONEY WHEN YOU HAVE LESS CASH OUR COST OF BORROWING MONEY GOES A LITTLE HIGHER AND MR. MOODY'S, ANYTHING ELSE ABOUT THIS? WELL, OKAY, SO I'VE BEEN MENTIONING GENERAL BONDS AND I B MENTIONED THE SPECIAL OBLIGATION BONDS. SO WHAT IS THAT? SO THE BASIC BASIC IS GENERAL OBLIGATION BONDS ARE DIRECT OBLIGATIONS OF THE TOWN B A PROPERTY TAX PLEDGE VERSUS A SPECIAL OBLIGATION IS THESE ARE FEES COLLECTED A SPECIFIC REVENUE STREAM SO THEY ARE ATTACHED TO ONE OF OUR REVENUE STREAMS. SO WHEN WE'RE TALKING THESE PRESERVATION BONDS WE'RE TALKING ABOUT A SPECIAL ONE OF THE THINGS THAT YOU ALSO NEED TO REMEMBER IS AS IT RELATES TO THE MORTGAGE CREDIT RATING, GENERAL OBLIGATIONS, BONDS THAT WE HAVE TODAY THEY'RE TRIPLE TRIPLE-A TO SPECIAL OBLIGATIONS MONSTER WE HAVE TODAY IS A BASE PRESERVATION BOND WE ARE DOWN A TWO HOSPITALITY R TRIPLE A ANOTHER THING THAT WE NEED TO KEEP IN MIND AS IT RELATES TO IF WE'RE LOOKING AT TEN YEAR GROWTH, IF WE'RE LOOKING THESE SPECIAL OBLIGATION BONDS WE ARE WE HAVE BROUGHT SO MUCH REVENUE WE HAVE RECEIVED SO MUCH REVENUE THIS PRESERVATION THAT IN THE LAST TEN YEARS AGAIN IS THE 126% THAT IS THE HUGE REVENUE THAT WE HAVE RECEIVED FOR OUR ISLAND IN THE LAST TEN YEARS. IF WE'RE LOOKING AT A HOSPITAL WE'RE TALKING ABOUT A 71% REVENUE GROWTH AND THAT IS HUGE . ONE OF THE THINGS TO IN THE GENERAL OBLIGATIONS THE SALES VALUE OUR PROPERTY HAS GONE UP SINCE 2016 BY 25%. 
          OUR HOUSE PRICES ARE GOING UP IN OUR ISLAND. THAT IS A HUGE GROWTH AS WELL THE IF LET ME SEE LET ME MENTION ANOTHER ONE THAT I WANT YOU TO BE AWARE. 
          [00:40:08]
ONE OF THE THINGS THAT I WANT TO MAKE YOU AWARE OF THIS GROWTH THAT WE HAVE HERE IS THAT E CAN WE CAN BORROW MONEY AT A CHEAPER RATE THAN ANY CORPORATION OUT BASED ON WHERE WE ARE TODAY, BASED ON THE STRENGTH THAT WE HAVE AS AN ISLAND. 
          SO I WANT YOU TO KEEP THAT IN MIND AS WELL AS WE CONTINUE TALKING ABOUT CASH DEBT HYBRID . ONE OF THE THINGS AGAIN GOING BACK TO MY WONDERFUL EXAMPLE OF BUYING A CAR CASH VERSUS BUYING FINANCING THE CAR WHEN YOU HAVE A STRENGTH IN THE NUMBERS THAT YOU HAVE WHEN YOU HAVE MONEY IN YOUR SAVINGS ACCOUNT IS WHAT BANKS WANT TO LEND YOU MONEY WHEN YOU USE ALL YOUR CASH. I MIGHT BE RELUCTANT TO LEND YOU MONEY SO THE STRENGTH OF OUR ISLAND IS BASED ON WHAT WE HAVE ON HAND. 
          I LOVE THIS GRAPH. THIS GRAPH IS ACTUALLY OUR BEST PARTICIPATION AS SPECIAL OBLIGATION AND THIS IS HOW MUCH WE ACTUALLY HAVE PAID AND HOW MUCH WE HAVE BORROWED DURING THE LAST FEW YEARS. SO IN 2006 WE ACTUALLY BORROWED ABOUT $19 MILLION AND IN 2000 THIS IS AGAIN THIS IS THE BLUE DART BLUE COLOR THAT YOU SEE ON THIS GRAPH IN 2011. 
          THIS IS THE ORANGE COLOR WE ACTUALLY ABOUT $11 MILLION IN BONDS AND THIS WAS FOR A BEACH RENOURISHMENT THAT WE HAD BACK IN 2011 AND 2017 WHICH WAS OUR LAST BEACH RENOURISHMENT THAT WE HAVE HERE ON THE ISLAND WE ACTUALLY BORROWED ABOUT $30 MILLION BACK THEN. 
          SO IF YOU LOOK AT ALL OF THIS THIS IS FROM MARCH SO YOU HAVE HERE NOTICE THAT AS WE GETTING CLOSE TO 2000, 26,027 AND 2028 WE HAVE WHAT WE CALL CALLABLE BONDS THAT MEANS WE STILL HAVE AS OF AUGUST 1ST OF THIS YEAR 2000 DOWN COUNCIL MEMBERS NEED TO MAKE A DECISION DO YOU CALL THOSE BONDS DO WE JUST PAY THOSE OFF $7.5 MILLION A YEAR WE WILL HAVE TO PAY. 
          SO BEFORE WE MAKE ANY DETERMINATIONS EITHER WE DO CASH YOU KNOW WE DO HYBRID YOU KNOW THAT WE DO THAT WE NEED TO THINK ABOUT WHAT IS OUTSTANDING AND. 
          WHAT IS OUTSTANDING IS $7.5 MILLION THAT YOU NEED TO MAKE A DECISION. 
          WE PAY THAT IN CASH BEFORE WE EVEN THINK ABOUT ANYTHING ELSE. SO THIS PART HERE IS REALLY IS TELLING YOU THAT WHERE WE ARE NOW AS IT RELATES TO THIS PRESENTATION IS A SPECIAL OBLIGATION WE ALMOST AND IS PAYING THAT OFF. IT'S ONLY $7.5 MILLION LEFT. 
          IT'S AMOUNTS THAT YOU WOULD LIKE TO HAVE JUST THE PAYMENT DATE ON 2026 AND AND EVERY YEAR IS AUGUST 1ST SO WE'VE GOT THE 2026 WE HAVE AN OBLIGATION TO PAY THAT BUT ON THAT SAME WE CAN ALL THOSE TWO REMAINING BOND PRINCIPAL AMOUNTS YES SO WE DON'T WANT TO DO THIS DECISION ON AUGUST 2ND, AUGUST 3RD, AUGUST FOUR BECAUSE THEN YOU HAVE TO PAY INTEREST AND A DECISION HAS TO BE MADE ON AUGUST 1ST TO AVOID PAYING AN ORAL INTEREST. 
          SO IT WOULD BE JUST PRINCIPLE AT THIS POINT WHICH IT WOULD BE ABOUT A $7.5 MILLION NUMBER THAT I JUST MENTIONED. AND SO MAYOR COUNCIL I WANT TO MAKE SURE THAT WE JUST PAUSE ON THAT FOR A SECOND BECAUSE AUGUST 1ST IS AN IMPORTANT DATE FOR US. 
          YOU DECIDE ON THE CALLABLE QUESTION ONE THING I WOULD LIKE FOR MS. TO CLARIFY IS IF NOT ON THIS AUGUST 1ST, WHEN IS THE NEXT OPPORTUNITY? IS IT FOREVER LOST? IS IT GONE FOREVER OR IS IT NEXT YEAR ON AUGUST 1ST ANY YOU MAY BE FORCED TO ANSWER THAT IT SHOULD BE ANY TIME AFTER THE AUGUST 1ST OF THIS YEAR SO IT'S NOT TIED TO AUGUST ONE FOR THE REDEMPTION YOU COULD UM AND I WILL CHECK SOMEBODY YEAH. THAT I'M ANSWERING. 
          I WOULD USUALLY WANT YOU HERE TO CALL DATE. YOU ARE ABLE TO CALL THEM AT 
          [00:45:01]
ANY TIME WITH LIKE 30 DAYS NOTICE. OKAY THERE IS A BENEFIT THERE'S NO DIFFERENCE IS THE INTEREST PORTION ACCRUE AT THAT POINT AND I THINK THAT'S WHAT I'M LOOKING FOR AN ANSWER ON AND I THINK THE COUNSEL NEEDS TO HEAR THAT BECAUSE ON AUGUST 1ST IT'S CALLABLE THE DECISIONS INTEREST IS NOT A PENALTY SO TO SPEAK ON THE FUNDS BUT IS IS AUGUST 2ND AND BEYOND FOR THE FOR THE END OF TIME ON THIS BOND YOU WOULD PAY INTEREST. 
          YEAH I THINK THAT'S AN IMPORTANT PIECE TO MAKE SURE WE TALK ABOUT BECAUSE I BELIEVE THAT EITHER WE PAY IT ON AUGUST 1ST OR JUST LET IT RIDE OUT. WE DO NOT NEED TO BE IN A HURRY THAT DATE. YEAH AND REGARDLESS OF WHAT DECISION IS MADE WHICHEVER OPTION YOU PICK I THINK IT IS OUR ADVANTAGE TO START THINKING ABOUT POTENTIAL. 
          WE CALL THOSE BONDS PAY THE 7.5 AND JUST NOT HAVE ANY ADDITIONAL FIFTH. 
          AGAIN CASH FLOW IS ANOTHER COMPONENT THAT WE PAY THE $7.5 MILLION NOW OR WE JUST WAIT AND PAY THE $3.4 MILLION OR SO LONG EVERY YEAR LIKE WE HAVE BEEN DOING UNTIL NOW. 
          SO IT DEPENDS ON THE APPETITE AS IT RELATES TO CASH FLOW WE RELY YOU DEPENDS IF YOU JUST WANT TO GET RID OF ALL DEBT AND YOU JUST WANT TO PAY IT. SORRY WHERE CAN I ASK A QUESTION THAT AN INTEREST QUESTION SO WOULD NOT THE INTEREST BE PRO-RATED OR DO YOU PAY ANNUAL INTEREST AT ONE TIME INSTEAD OF JUST IF AFTER AUGUST ONE OF 2025 YOU DECIDE TO PAY ALL OR PART OF THE REMAINING PRINCIPAL WOULD NOT THE INTEREST BE PRORATED RATHER THAN DEFAULT WOULD BE PRORATED YES YES. YES YES IT WILL BE PROVIDED SO YES YOU'D ONLY BE PENALIZED BY THE MONTHS DURING WHICH YOU DID NOT PAY AT ALL THAT IS SO IF YOU DECIDE WAIT UNTIL THEY TOLD YOU IT THEN CASE YOU WOULD BE PRORATED AND THEN YOU WILL PAY THE INTEREST FOR THOSE 30 DAYS BECAUSE THERE WAS A QUESTION THAT WAS ASKED YOU KNOW OVER IN THE LAST FOUR CHECK WE HAD THE QUESTION WELL DURING THE RENOURISHMENT WAS THERE ANY IMPACT OUR REVENUES IT IS HARD TO PREDICT WHAT'S GOING TO HAPPEN IN THE NEXT THREE YEARS WHEN I KNOW ALL MY BEST INTENTIONS AND IS SO BROAD AND I KNOW WE TALK ABOUT THE CRYSTAL BALL THE OTHER DAY BUT THERE'S NO CRYSTAL BALL BUT I CAN TELL YOU HISTORICALLY FROM OUR HISTORY WHEN WE DID OUR SPEND LAST TIME IF YOU LOOK AT WHERE IT SAYS 2018 AND LET ME SEE IF I CAN POINT THIS THIS AREA HERE THIS IS WHEN WE HAD OUR FISHERY NOURISHMENT LAST TIME AS YOU CAN SEE THERE WAS A INCREASE IN OUR REVENUE FROM THAT POINT IN TIME. 
          SO BASED ON HISTORICAL RECORD SOME OF THE INFORMATION THAT WE HAVE TODAY, THE ANSWER IS NO. 
          THERE WAS NO OBVIOUS IMPACT TO OUR REVENUES BECAUSE OF THE BASE RENOURISHMENT THAT TOOK PLACE AGAIN THAT CANNOT THAT COULD BE THAT CAN CHANGE. I KNOW BUT BASED ON HISTORY THERE WAS NO IMPACT NOTICE TO THE REVENUE THAT THAT WE SHOW HERE FOR BEACH PRESERVATION IS RIGHT NOW FLAT I MEAN WE'VE HAD A BIG SPIKE BACK IN 2020. THIS WILL HAPPEN IN 2020. 
          WE HAVE COVID AND I KNOW OUR ISLAND WAS VERY FORTUNATE TO BE TO HAVE ALL THE MANY VISITORS THAT WE HAD SO OUR REVENUES WENT UP FOR THIS PRESERVATION. BUT AGAIN ANOTHER THING THAT I WANT TO BRING TO YOUR ATTENTION ON THIS GRAPH THE ORANGE REPRESENTS THE DEBT SERVICE THAT WE HAVE NOTICED THAT OUR REVENUE SO PASS DEBT SERVICE THAT MEANS WE ARE VERY THE NUMBERS YOU KNOW HOW HAVE YOU HAD THIS PRESSURE OF HIGH LEVERAGE YOU'RE VERY HIGH LEVERAGE THAT MEANS WHEN THAT I WAS WEARING SO PASSED DEBT SERVICE THAT WE HAVE SO THAT MEANS WE HAVE THE THE RANGE TO BE ABLE TO TO ACCOMMODATE IT THIS IS WHY YOU DESIRE ADDITIONAL BECAUSE OUR REVENUES ARE HIGH SO WE CAN POTENTIALLY DO AND I'M NOT SAYING THAT CHRIS BY THE WAY WE CAN POTENTIALLY PAY ACCOMMODATE THE THE THE FUNDING OF ANOTHER PIECE RENOURISHMENT BECAUSE OF THE REVENUES THAT WE HAVE AS A IT'S SOMETHING ELSE TOO IS THAT HIGH LAND USE ARE GROWING FASTER THAN THE ACTUAL DEBT SERVICE SOMETHING ELSE TO TO TO THINK ABOUT. SO THIS IS THE REPRESENTATION OF THE GROWTH THAT WE HAVE IN 
          [00:50:13]
OUR BASE PRESERVATION FUND AGAIN WE'RE THINKING I'M THINKING THAT BASE PARTICIPATION ON IS GOING TO BE THE PRIMARY SOURCE OF FUNDING. SO THIS THE GROWTH AS YOU CAN SEE IT IS GROWTH AND THIS IS A CUMULATIVE GROWTH IF WE'RE LOOKING AT THE LAST THREE YEARS IN 2022 WE HAVE $27.6 MILLION AND THEN YOU GO TO 26.2 AND THEN IT GREW AGAIN TO $42.43 MILLION. SO IT IS GROWING. SO WHILE WE'RE ON THIS GROWING AND MAYBE I SHOULD HAVE STARTED THIS PRESENTATION BY THIS ITEMS HERE BUT BACK IN OCTOBER OF LAST YEAR THE ASSUMPTION WAS THAT OUR PROJECT WAS GOING TO COST ABOUT 42 AND A HALF MILLION DOLLARS AND THEN NOW 248 AND A HALF MILLION DOLLARS WE DON'T KNOW WHAT IS GOING TO COST AND FOR A FINANCIAL PERSON LIKE ME IT IS OF HARD TO QUANTIFY AND TO GIVE YOU MODELS SOME PROJECTION LINES AND GIVE YOU ALL THESE THINGS WHEN I DON'T KNOW WHAT THE FINAL COST IS GOING TO BE BUT OUR BASED ON 48 AND A HALF MILLION DOLLARS WHAT WE'RE USING RIGHT NOW FOR ALL THESE GRAPHS AND ALL THIS REPRESENTATION THAT FOR THE LAST SLIDE THAT WE HAVE SOMETHING ELSE THAT WE FOUND OR THAT AS PART OF JOHN AND MYSELF BEING NEW, ONE OF THE THINGS THAT WE'RE LOOKING AT IS ALL THE DIFFERENT POLICIES, ALL THE DIFFERENT THINGS THAT WE HAVE WE HAVE FOUND THAT $12 MILLION IS IT WAS A RESERVE THAT IS REQUIRED BECAUSE OF THE ORDINANCE WE PASSED IN 2006 THAT WE HAVE MAINTAIN IN THE BEST PRESERVATION BECAUSE OF NATURAL DISASTERS. ONE OF THE THINGS THAT TELLS ME TO KEEP IN MIND IS THAT WE ARE AT A DIFFERENT TIME FROM LAST YEAR THE BORROWING RATES HAVE INCREASED BETWEEN 20 TO 30 BASIS POINTS SINCE THIS SINCE OCTOBER 20TH OF 2024. SOMETHING ELSE TOO ALSO AND THEY ALREADY MENTIONED IS THE CALLABLE BOND SO I DON'T WANT TO SPEND TIME ON THAT ANOTHER THING TO CONSIDER TOO IS AND AGAIN THIS NUMBER IS PROBABLY GOING TO CHANGE BECAUSE I KNOW JEFF AND SEAN ARE STILL WORKING ON HOW MUCH MONEY DO WE NEED TO CARRY FORWARD AND MAYBE THAT NUMBER HAS BECAUSE NOW WE HAVE A BETTER IDEA THAT WE HAVE A PERMIT SO WE'RE THINKING THAT POTENTIALLY WE MIGHT HAVE A CARRY FORWARD BUT REMEMBER YOU APPROVED $16.5 MILLION FOR BEACH RENOURISHMENT 2025 AND IS I KNOW FOR A FACT WE'RE NOT GOING TO BE ANALYZING 16.5 FOR THE REMAINDER OF THE YEAR SO THERE'S GOING TO BE A CARRY FORWARD TO THE NEXT YEAR. 
          SO THAT'S SOMETHING ELSE THAT NOW WE WE PROBABLY HAVE BETTER INFORMATION. 
          SO THIS THINGS ARE THINGS THAT APPEAL AND IN SOME CASES HAVE THINGS THAT YOU ALREADY KNEW ABOUT PROJECT THAT I WANT TO MAKE SURE YOU ARE AWARE THE NEXT ONE IS ACTUALLY THE THE TEMPLATE THAT WE PRESENTED BACK IN OCTOBER THE TEMPLATE SHOWS IS THE SAME $39 MILLION NUMBER THAT WE WORK ON LAST LAST MONTH WITH ONLY A FEW DIFFERENCES THAT WE HAVE MADE CHANGES BECAUSE IT'S KIND OF HARD TO PREDICT WHAT IS GOING TO IF WE IF WE DON'T HAVE THE FINAL NUMBER WITHIN MAY SOME CHANGES ON SOME OF THE NUMBERS THE ASSUMPTION IS THAT WE'RE STILL GETTING THE SAME REVENUE OF 13.8. THE ASSUMPTION IS ALSO THAT WE ARE GOING TO GET FEMA MONEY REIMBURSED TO ALSO POTENTIALLY OFFSET SOME OF THE COSTS. 
          SO THINKING ALL OF THOSE INTO THE EQUATION TAKING INTO EQUATION THAT WE HAVE A CALLABLE BOND SO WE'RE ANTICIPATING IF WE USE ALL CASH, IF WE DECIDE UTILIZE OPTION ONE THEN BY THE TIME JUNE OF 2026 COMES THE EXPECTATION THAT OUR REMAINING BALANCE UNDER THE BASE PRESERVATION FEE IS ABOUT SAVING ALMOST $700,000. 
          AGAIN THIS IS UTILIZED IN THE FUND THAT WE HAVE TODAY. THIS IS THINKING WE'RE NOT GOING TO BE DOING ANY OTHER PROJECTS IN THE UTILIZING THIS PRESENTATION ON WHICH THAT CREATES SOME CHALLENGES TO BECAUSE WE HAVE TO MAINTAIN OUR BUSINESS WE HAVE TO DO SOME 
          [00:55:04]
PROJECTS SO IF WE ANALYZE ALL OUR CASH THEN WE NEED TO FIGURE OUT HOW WHAT OUR BALANCE IS. 
          DO WE NEED TO MOVE FOR NEW ONES I PRESENTED BEFORE TO BE ABLE TO PAY FOR THIS $700,000 DOESN'T SOUND LIKE A LOT BUT I SO PLEASE BE AWARE OF THAT NUMBER IF WE UTILIZE OPTION I'M GOING TO TO SKIP OPTION TWO FOR NOW BUT IF WE UTILIZE OPTION THREE AGAIN THE SAME ASSUMPTIONS THAT WE UTILIZE IN THE CASH OPTION REMEMBER WE'RE GETTING AN INFLUX OF BECAUSE ONCE WE FINANCE THEN WE'RE GOING TO GET IN AND WITH THE MONEY AND THAT MEANS GOING TO HAVE A BALANCE OF $49 MILLION THAT WE WILL BE UTILIZING TO PAY FOR ABC IP PROJECTS OR EVEN TO CONTINUE PAYING. IS THE BORROWING ALL THIS MONEY WE HAVE TO PAY PRINCIPAL SO WE HAVE TO PAY INTEREST ON THE NEW MONEY THAT WE HAVE BORROW BUT IT IS A BETTER POSITION BECAUSE WE HAVE MONEY THERE AND IN CASE SOMETHING WERE TO HAPPEN THERE'S MONEY THAT WE CAN POTENTIALLY UTILIZE FOR ANY RELATED PROJECTS IF WE UTILIZE THE ONE IN THE MIDDLE AGAIN WE ARE MAKING ASSUMPTION THAT WE'RE DOING A 5050 SPLIT AT THIS POINT WE DON'T HAVE THAT SPLIT DEFINED YET BUT IF WE UTILIZE THAT 5050 SPLIT WHERE ACTUALLY BORROW PART OF THE MONEY AND THEN WE USE OUR CASH, THEN THE EXPECTATION AT THE END OF YEAR IN 20 2026 IS TO HAVE ABOUT $27 MILLION AS A AS A BALANCE FOR THIS PEACE PRESERVATION FUND. 
          AGAIN IT IS IN THE MIDDLE. SO AGAIN 700 CASH 49 IF WE FINANCE THE WHOLE AMOUNT OR 27 IF WE DO HAVE WE HAVE ON THE LAST SLIDE WHICH TO BE HONEST WITH THIS IS MY FAIR IS LIKE THIS IS WHAT I CALL MY PROS AND CONS AGAIN UTILIZING THE TEMPLATE THAT I JUST DISCUSSED THIS IS THE REMAINING BALANCES AS OF JUNE 30TH OF 2026 OPTION ONE CASH 700 OPTION TWO HYBRID 27 AND OPTION THREE ALL FINANCING 49 EIGHT ESTIMATED ANNUAL DEBT SERVICE PAYMENTS BETWEEN 27 FISCAL YEAR 27 TO 2036. WE'RE THE ASSUMPTION THAT IT IS ABOUT TEN YEARS THAT WE WILL HAVE A DEBT SERVICE BECAUSE WE ARE THINKING THAT EVERY TEN 8 TO 10 YEARS WE HAVE TO DO OUR BEACH RENOURISHMENT SO NO DEBT SERVICE BECAUSE OF COURSE WE'RE PAYING CASH UNDER THE FIRST OPTION. IF WE LOOK AT OPTION TWO, WE'RE THINKING THAT THERE'S GOING TO BE POTENTIALLY $3.1 MILLION THAT WE WILL HAVE TO PAY PER YEAR TO BE ABLE TO DO UTILIZE TO BORROW HALF OF THAT OF THE MONEY THAT WE NEED FOR THIS PROJECT. AND THEN IF WE LOOK OPTION THREE THEN THAT NUMBER IS NOW 5.8 BECAUSE WE ARE FINANCING 100%. SO AGAIN THIS IS MAKING THE ASSUMPTION THAT BASED ON THE INFORMATION AND THE ASSUMPTIONS WE'RE MAKING TODAY THAT WE WILL HAVE TO PAY ABOUT $5.8 MILLION EVERY YEAR. REMEMBER RIGHT NOW WE PAY 3.4 IN THE BOND THAT WE HAVE EVERY YEAR. SO THIS WOULD BE 5.8. 
          I JUST WANT YOU TO COMPARE THOSE TWO NUMBERS 3.4 WE PAY TODAY 5.8 WOULD BE THE NEW NUMBER TO BRING ABOUT 3.93.9 SO IT'S EVEN HIGHER. SO IT'S CLOSE TO THE 5.8. 
          I THINK AGAIN THE COVERAGE RATIO AND THIS ONE IS AN INTERESTING FORMULA SO IT IS THE PLUS REVENUE DIVIDED BY THE DEBT SERVICE PAYMENTS. SO OF COURSE ON CASH THERE'S NO THERE'S NO CALCULATION UNDER OPTION THREE WHICH IS ALL FINANCING. 
          WE ARE SAYING THAT POINT 39 WHAT WE ARE ABLE TO CALL OUR DEBT BASED ON OUR REVENUES 2.39 AND MR. MOODY'S HERE OKAY JOHN TELLS ME THAT ANYTHING ABOVE TWO IS GREAT BECAUSE WE'RE ABLE COVER OUR REVENUES I MEAN OUR DEBT WITH THE REVENUES WE HAVE IF WE FINANCE HAVE A HAVE OUR EVEN GOES DOUBLE WHICH IS 4.48 THAT MEANS WE HAVE REVENUE TO PAY FOR DEBT OUR RATINGS SO AGAIN THIS IS JUST BASED ON THE DIFFERENT TYPE OF THINGS THAT THEY LOOK AT WHEN THEY COME AND 
          [01:00:03]
DO A RATING. SO OF COURSE USING CASH WE DON'T THERE MIGHT BE NO NO CHANGE IN THE RATING. WE DON'T KNOW THIS POINT BUT WE ARE ANTICIPATINGE WE'RE GOING TE RECEIVING REVENUE AND WE HAVE A STILL A GOOD FUND. SO WE'RE HOPING THAT THAT WOULD BE CASE THAT THERE IS NO CHANGE IN OUR RATING. WE DON'T KNOW THAT FOR SURE. 
          THEN THE NEXT ONE WILL BE HIGH RENT PROBABLY THIS A POTENTIAL UPGRADE. 
          WE WILL HAVE A POTENTIAL UPGRADE ON IF WE DO THE HYBRID OPTION AND THEN IF WE DO THE 100% FINANCING MOST LIKELY THERE WILL BE NO NO CHANGE ON OUR RATING IF WE LOOK AT THE NEXT LINE IS THE NATURAL DISASTERS LINE IT WOULD BE WEAK REMEMBER WE'RE UTILIZING OUR CASH THAT MEANS IF WE HAVE A DISASTER YES WE DO HAVE A RESERVE FOR DISASTER. 
          BUT AGAIN WE HAD A CATEGORY TWO LAST TIME WE HAD HURRICANE MATTHEW I THINK ARE WAS IT WAS IN 2016 IT WAS ABOUT $56 MILLION. SO AND THIS ONLY CATEGORY TWO BY THE WAY I GREW UP IN MIAMI AND. I WENT UNDER HURRICANE ANDREW BACK IN 1992. THAT ONE WAS A CATEGORY FIVE AND I CAN TELL YOU EVERYTHING WAS AND IN THE AREAS THAT HURRICANE ANDREW HAD SO AGAIN IT IS WEAK UTILIZED THE CASH OPTION IF WE LOOK AT THE HIGH RATE IT IS A STRONGER DISPERSION IN THE FIRST FEW YEARS AFTER PROJECT AND THEN IF WE UTILIZE OPTION THREE IS GOING TO BE EVEN STRONGER THAN OPTION TWO ESPECIALLY AGAIN IN THE FIRST FEW YEARS OF THE PROJECT BECAUSE OF COURSE WE WILL HAVE MORE MONEY IN HAND AND THEN IF WE LOOK AT THE FINANCING COST THERE'S NO FINANCING COST WITH CASH YOU'RE PAYING CASH IF YOU USE HYBRID THE OPTION TO DO FINANCING COSTS WILL BE HIGHER. THEN OF COURSE UTILIZING CASH HOWEVER IT WILL BE STILL LOWER THAN THE TAXABLE AND THEN OF COURSE WE USE OPTION THREE THIS IS THE HIGHEST TOTAL FINANCING COST IS STILL WILL BE LOWER THAN THE TAXABLE DEBT SO NOW AND THEN ONE OF THE THINGS THAT I DO WANT TO BRING TO MIND AND I'M SKIPPING ONE BECAUSE I'M GOING TO HAVE JOHN EXPLAIN THAT ONE HE LOVES THIS FLOATING DOWN BY THE WAY INVESTMENT INCOME ON REMAINING CASH. 
          I THIS QUESTION SO WE'RE TAKING REMEMBER THE EXAMPLE AGAIN TO THE CAR I LOVE THAT EXAMPLE $10,000 SAVINGS YOU TOOK $9,500 TO YOUR SPEC TO MAKE SAME INTEREST BECAUSE YOU ONLY HAVE $500 LEFT SO THE ANSWER IS NO YOUR ON INVESTMENT FOR THE MONEY THAT YOU HAVE IS GOING TO LOW IS GOING TO DECREASE BECAUSE YOU'RE GOING TO HAVE LESS MONEY. 
          SO IF YOU'RE RESPECTING TO MAKE $10.8 MILLION AS YOU DID LAST YEAR THEN THAT'S A BIG CHANCE. 
          RIGHT? WELL, LET ME REPHRASE THAT. THERE'S NO CHANCE YOU'RE GOING TO GET $10 MILLION IF WE USE THE OPTION TO THERE WOULD BE A MEDIUM. 
          I MEAN WE'RE STILL DOING FINANCING SO IT'S GOING TO BE A MEDIUM RETURN POTENTIALLY NOW GOING TO BE $10 MILLION BUT IT'S NOT GOING TO BE VERY, VERY LOW. 
          I MEAN INTEREST RATES ARE NOW THE SAME AS THEY WERE LAST YEAR AND WE WILL HAVE MORE MONEY SO THEREFORE WE WILL HAVE INTEREST EARNED AND OF COURSE IF WE USE THE 100% FINANCING THEN WE HAVE MORE MONEY. THEREFORE YOU WILL WE WILL HAVE MORE INTEREST EARNED FOR OUR ISLAND ON OUR ON BALANCES DOWN YOUR END. AND THE SECOND OF THE LAST LINE BASICALLY WHERE IDEALLY YOU'RE MATCHING THE THE OF THE AMENITY IN THIS CASE A NICE BEACH RELATIVE TO THE PEOPLE THAT ARE PAYING FOR IT. SO IN THE CASE OF OUR LAST BEACH RENOURISHMENT IN 2017, IF YOU SPENDING A MONTH ON HILTON HEAD LET'S THE LAST THREE YEARS YOU WERE PAYING DEBT SERVICE ON THAT AMENITY THAT YOU ENJOYED OVER THOSE THREE YEARS THOSE SAME PEOPLE IF WE WANT CASH ONLY OR ESSENTIALLY WE'VE SEEN THAT THE FUND BALANCES INCREASE EACH OF THE LAST THREE YEARS THOSE PEOPLE HAVE ACTUALLY PAID THE NEXT TEN YEARS WORTH 
          [01:05:05]
OF BEACH AS OPPOSED TO IN A DEBT SITUATION WHERE YOU'RE MATCHING THE THE PAYMENTS UP FOR THE THAT IS THE DEBT SERVICE WITH THE BENEFIT WITH THE ENJOYMENT OF THE BENEFIT. 
          SO THAT KIND OF GOES THAT DOES GO AWAY IF YOU'RE PAYING ALL IT MAKES SENSE. 
          SO TO TO SUMMARIZE THANK YOU JOHN TO SUMMARIZE IT IS A BIG DECISION AND A DECISION THAT YOU'RE MAKING ON BEHALF OF OUR THAT MAKE DECISION BECAUSE WE'RE TALKING A LOT OF MONEY SO WE'RE TALKING POTENTIALLY $50 MILLION AND AT THIS POINT WE DON'T KNOW WHAT THAT'S GOING TO BE. IF IT'S GOING TO BE 50, IT'S GOING TO BE LESS IS GOING TO BE MORE. A GOOD THING IS THAT WE HAVE OPTIONS. 
          WE ARE IN A VERY PRIVILEGED SITUATION AGAIN VERY FORTUNATE THAT WE HAVE THREE OPTIONS AS WE GET CLOSER TO ACTUALLY HAVING A DEFINITE NUMBER WHERE WE ACTUALLY KNOW HOW MUCH THIS IS GOING TO CAUSE THEN WE CAN UTILIZE REAL NUMBERS TO, START TALKING ABOUT THESE PROJECTIONS AND GIVE YOU BETTER INFORMATION . SO THOSE ARE THE NEXT STEPS FOR ME TO MAKE SURE THAT WE GET REAL NUMBERS, REAL CALLS WE COME BACK TO YOU AND SAY THIS IS WHAT IS GOING TO COST IN ALL THE DIFFERENT OPTIONS RIGHT NOW WE'RE JUST MAKING MANY AND I HOPE WE WERE ABLE TO ANSWER A OF THE QUESTIONS IF NOT ALL THE QUESTIONS YOU HAD BACK IN OCTOBER . SO THANK YOU AND. ANY QUESTIONS FROM IS THANK YOU . THIS IS PROBABLY THE MOST IMPORTANT SLIDE BECAUSE AGAIN WE'RE MAKING A LOT OF ASSUMPTIONS HERE. I DON'T HAVE ANY QUESTIONS JUST WANT TO MAKE BUT I DO HAVE ONE QUESTION FOR ME MY COMMENTS I'M FOCUSING ON THE NATURAL DISASTER PREPAREDNESS COLUMN SO IF WE REVERSE THIS BEACH OR THE TIMELINE WE HAVE BEFORE US THEN WE HAVE THE UNFORTUNATE OF A HURRICANE COME IN, TAKE AWAY HALF OF THE SAND. 
          WE ARE THEN IN A POSITION WHERE WE TO REPLACE THIS AND AND TYPICALLY THAT WOULD BE THROUGH A REIMBURSEMENT PROCESS TO FEMA BUT WE HAVE TO CANCEL FIRST SO THAT CORRECT? YES, SIR. OKAY. ALL RIGHT. 
          AS A PERTAINS TO WHICH OPTION I AM, I AM LEANING TOWARDS A HYBRID OPTION BECAUSE OF THAT FACTOR THAT IS NOT NECESSARILY AN ASSUMPTION IN THIS AREA IS NOT IF WE'RE GOING TO HAVE A STORM IS WHEN WE'RE GOING TO HAVE A STORM. SO WITH THAT BEING SAID, I THINK WE NEED TO MAKE SURE WE POSITION OURSELVES TO DEAL WITH THAT. 
          OKAY. AND USING ALL OF OUR CARDS DOES NOT HELP WITH THAT SITUATION. 
          NOW THAT BEING SAID AND ALSO CHALLENGE STAFF. TAKE A LOOK AT OUR THRESHOLD WHEN IT COMES TO BEACH PRESERVATION FEES OBVIOUSLY, THIS BEACH REIMBURSEMENT IS COSTING US MORE THAN THE LAST BEACH FOR LAST MINUTE AND I'M GOING TO ASSUME THAT MAYBE THE NEXT ONE WILL AS WELL. YOU ALSO THROW IN THE LIKELIHOOD THAT FEMA REIMBURSEMENTS MAY TAKE LONGER THEY HAVE IN THE PAST. SO THERE ARE A LOT OF FACTORS THERE AND LAST TIME WE TESTED THE THRESHOLD WAS 2006. I THINK WE NEED TO TAKE ANOTHER LOOK AT THAT TO SEE IF WE NEED TO MAKE SOME ADJUSTMENTS AS WE MAKE THIS DECISION AS TO HOW MUCH WE WANT TO BORROW OR NOT. THOSE ARE MY COMMENTS ON THIS TOPIC, SIR. 
          THANK YOU. NEXT IS DONE IT I WOULD THAT YOUR CASH SCENARIO IS VERY AND THE REASON IS THE FIRST ASSUMPTION IS THAT WORK A PAYBACK OUR BOND SO I'D BE INTERESTED TO KNOW HOW MUCH IS THAT INTEREST RATE ON THAT BOND VERSUS THE MONEY THAT WE ARE INVESTING AND IF WE ARE MAKING MORE MONEY INVESTMENTS THAN WE ARE AND WHAT WE'RE PAYING FOR THE BOND IT WOULDN'T MAKE TO PAY THAT OFF EARLIER AND I CAN GIVE YOU A PERFECT EXAMPLE REAL LIFE EXAMPLE BECAUSE YOU ARE USING REAL LIFE EXAMPLES. I MEAN THAT SITUATION NOW WITH MY HOME WE REFINANCED MANY TIMES WE HAVE A GREAT MORTGAGE RATE, FIXED RATE AND I MAKE MORE MONEY ON MY INVESTMENTS THAN I DO THE KNOW AS A PERCENTAGE THAN I DO ON MY MORTGAGE. AND SO I THINK WE NEED TO TAKE A LOOK AT THAT AND I THINK THAT WOULD GIVE A VERY EASY ANSWER AS TO WHETHER WE WOULD WANT TO PAY THAT OFF EARLY IN MY MIND IT WOULD MAY NOT MAKE NO SENSE TO PAY IT OFF EARLY. WE CAN MAKE MORE MONEY YOU 
          [01:10:03]
KNOW, INVEST IN IT THAN IT OFF AND WHAT THAT DOES IS IT ALLOWS SEVEN AND A HALF MILLION MORE DOLLARS INTO THE COLUMN AT THE END THE YEAR. THE OTHER PIECES THE PINE ISLAND AND I KNOW THAT HAVE CHANGED SINCE THE FIRST PACKAGE CAME OUT VERSUS WHAT WAS ON THE TABLE AND I DON'T HAVE A COPY OF THE ONE ON THE TABLE BUT WHEN I WAS LOOKING AT PINE THIS ALSO ASSUMES THAT ALL OF THE BEACH RENOURISHMENT WORK WOULD BE COMPLETED IN THE FISCAL YEAR 26. BUT AT LEAST WHEN I LOOKED AT THE ORIGINAL PACKAGE IT SHOWED THAT THE PINE ISLAND YOU KNOW, WHATEVER THOSE THINGS ARE AS THINGS IN WATER THAT THAT WAS GOING TO BE TO BE TO BE DETERMINED AND EVERYTHING WAS BEING DONE IN A LINEAR FASHION WHICH MADE IT LOOK LIKE WOULD ACTUALLY FALL INTO THE 27 FISCAL YEAR. 
          SO IF YOU MOVE THAT MONEY FROM THE 26 FISCAL YEAR INTO THE 27 FISCAL YEAR THEN YOU HAVE ANOTHER YEAR OF ADDING ADDITIONAL ACCOMMODATION TAXES AND SO NOW WE'RE NOT LOOKING A PICTURE OF BEING AT $663,000 AT THE END OF THE YEAR. WE'RE LOOKING AT SOMETHING CLOSE TO 12 MILLION AS WELL AS CLOSE TO 12 MILLION THE FOLLOWING YEAR. 
          MY MATH IS RIGHT WHICH ALIGNS TO THE MINIMUM CATEGORY IN ADDITION THERE ARE OTHER MONIES TO HOSPITALITY TAX SO MY BIAS ALWAYS TO LOOK TO SEE IF YOU CAN PAY CASH YOU ASK THE QUESTION YOU KNOW WHAT DO YOU PAY CASH PER CAR I PAY CASH FOR A CAR I APPRECIATE YOUR EXAMPLE BUT THE TOWN IS IT DOESN'T HAVE $10,000 AND IT'S LOOKING TO BUY A CAR FOR 9500. 
          WE HAVE A LOT OF MONEY AND SO YOU KNOW THAT OPPORTUNITY IS THERE. 
          SO THAT'S THAT'S WHERE I'M LEANING RIGHT NOW. I PERSONALLY LIKE TO KNOW OF THE PRIOR DEBT THAT WE HAD. WHAT DID WE USE THAT FOR OBVIOUSLY I KNOW WELL YEAH. 
          BEACH RENOURISHMENT AND STORM WATER SEWER IT WAS ALSO A JOKE I'M ALL THE HOSPITALITY AND TIFF I'M JUST CURIOUS AS TO HOW WE'VE USED DEBT IN THE PAST. OKAY THANK YOU FOR ONE THING THAT I WANT TO AND THANK YOU FOR YOUR COMMENTS. ONE THING THAT I WANT TO MAKE SURE AND THIS WAS THE FIRST SLIDE THAT I TALK ABOUT AS SAY RELATES TO SOURCES OF FUNDING. 
          ONE OF THE THINGS THAT I LEARNED COMING FROM CORPORATE GOVERNMENT WHEN YOU ARE IN CORPORATE YOU HAVE A BIG POOL OF MONEY THAT WE YOU ALLOCATE AND YOU PAY FOR WHATEVER PROJECTS YOU HAVE LIKE OVER A MONTH. WE DON'T WE DO HAVE A LOT MONEY. WE DO WE'RE VERY FORTUNATE TO HAVE THE BALANCES THAT WE HAVE IN THIS ISLAND. BUT IT'S NOT THAT CAN USE 100% OF THAT MONEY TO PAY FOR WHATEVER WE WANT THERE ARE A LOT OF RESTRICTIONS SOME OF THEM COME FROM THE STATE LIKE I MENTIONED BEFORE BUT SOME OF THEM ARE ORDINANCES THAT HAVE BEEN PASSED BY FORMER PREVIOUS TOWN COUNCIL MEMBERS OR INCLUDING YOURSELF. SOME OF YOU HAVE BEEN HERE FOR LONGER SO AS WE LOOKING AT THE DIFFERENT SOURCES OF FUNDING WE NEED TO KEEP IN MIND THAT THERE IS RESTRICTIONS, THERE ARE RESERVES SOME OF THEM MAY BE TO YOUR POINT MR. BROWN WE PROBABLY NEED TO REVISIT AGAIN BECAUSE MAYBE BY THE TIME WE PASS THEM MAYBE MAKE PERFECT SENSE MAYBE NOW IT DOESN'T MAKE SENSE TO MILLION DOLLARS IN 2006 IS NOW 12 MILLION LAST TODAY YOU KNOW THAT SAYING ABOUT A TODAY IS NOT A DOLLAR IN 20 YEARS SO A LOT OF THESE ARE INCREASING PRICES BETWEEN THOSE AND BEING A GREAT EXAMPLE AND I'M LOOKING ACROSS HERE BECAUSE I KNOW A NUMBER IS IS IS IS IS IS HUGE SO YES WE CAN AT HOW MUCH WE'RE GOING TO BE SPENDING IN THIS FIRST YEAR ON BASE RENOURISHMENT BASED ON NOW HAVING THE PERMITS BASED ON NOW THAT WE CAN DO A BETTER JOB OF THINKING OKAY WE HAVE A PERMIT NOW WE HAVE TO GO OUT THERE TO LOOK FOR A CONTRACT OR TO HELP US LOOK AT THIS MOVING MONEY. 
          IT WILL REQUIRE US TO BE ABOUT CALLABLE BONDS. IT WILL REQUIRE US TO BE THINKING CERP PROJECTS THAT WE HAVE TODAY THAT. WE HAVE YOU APPROVING 2025 THEN THE QUESTION WE HAVE IS DO WE COMPLETE THOSE PROJECTS BECAUSE SOME OF THEM WE HAVE AND WE 
          [01:15:03]
PROBABLY ARE IN THE DESIGN STAGE. DO WE COMPLETE THOSE PROJECTS YES OR NO? DO WE ADD NEW PROJECTS IN 2026? SO IF WE DECIDE TO USE CASH TO YOUR MR. ROMER THE QUESTION IS WE HAVE TO MAKE SOME HARD YOU HAVE TO MAKE SOME HARD DECISIONS ABOUT WHAT PROJECTS YOU WANT TO TO GET DONE. WELL, I DON'T KNOW HOW CITY PROJECTS ARE ASSOCIATED WITH A BEACH RENOURISHMENT FEE AND THAT'S ON RESERVE BECAUSE IF WE'RE BORROWING MONEY BECAUSE WE WANT TO MAKE SURE THAT WE HAVE ENOUGH MONEY TO COVER OUR COSTS AS WELL AS HAVE A CUSHION IN CASE SOMETHING THEN WE'RE SAYING THAT THAT IS MONEY FOR BEACH RENOURISHMENT. I APPRECIATE THAT WE HAVE OTHER PROJECTS THAT WE WOULD LIKE TO COMPLETE BUT THEN IT ALMOST LIKE WE'RE SAYING THAT WE WANT TO USE THOSE MONEY FOR THOSE OTHER PROJECTS AND IF WE WANT TO USE THOSE MONEY FOR THOSE OTHER PROJECTS THEN BE TRANSPARENT ABOUT IT AND SAY IT'S NOT ABOUT BEACH. WE'RE NOURISHMENT FEES, IT'S ABOUT FUNDING OTHER PROJECTS. UNFORTUNATELY THAT'S A DECISION THAT YOU TOWN COUNCILMAN WAS HAVE TO MAKE AS IT RELATES TO THE OTHER PROJECTS I YOU HAVE SOMETHING TO SAY NO I WAS LOOKING AT MARK THERE WATCHING ME JUMP OUT OF MY CHAIR WANTED TO HEAR FROM YOU SO I WOULD IMAGINE THAT HAS SOMETHING TO DO WITH THE BUDGET CONVERSATION . 
          WE MOVE FORWARD TO THAT. MR. ALFRED A COUPLE OF QUESTIONS THEN SOME OF MY OWN SONGS HAVE YOU INDICATED WHAT THE LIKELY MATURITY OF BORROWINGS WOULD BE? THEY WILL BE ABOUT TEN YEARS, YES. SO IT'S ASSOCIATED WITH THE LIFE OF IT IS IT IS ASSOCIATED WITH A BEACH RENOURISHMENT I NOTICED IN ALL OF YOUR EXAMPLES HERE YOU'RE CALLING THE BONDS THAT ARE CALLED 126 AND YOU CONCLUDE IN ALL THREE SITUATIONS TO CALL THOSE BONDS. SO SO HERE'S AN INTERESTING SITUATION, JOHN AND I AND BY THE WAY SOMETHING THAT I FAILED TO DO AT THE BEGINNING THIS PRESENTATION JOHN HAS WORKED SO HARD TO RESEARCH AND DO SO MUCH OF WORK IN COORDINATION WITH FRANNY AND ALL OF OUR OTHER CONSULTANTS. SO AS WE WERE TALKING ABOUT THE BONDS, WHAT IS THE APPETITE FOR AND I'M TALKING YOUR APPETITE TOWN COUNCIL MEMBERS DO YOU WANT TO IF YOU GO TO THE OPTION THREE IF YOU DECIDE DO OPTION THREE THE QUESTION IS DO YOU FEEL COMFORTABLE WITH ROLLING OVER THE REMAINING BONDS INTO NEW FINANCING ARRANGEMENT BASED ON WHAT I HEARD FROM YOU IN THE PAST I FEEL LIKE THAT WASN'T THE CASE. I FEEL LIKE YOU PROBABLY DON'T WANT TO DO THAT. YOU PROBABLY WANT TO START FRESH WITH A NEW DEBT FINANCING EITHER YOU USE HYBRID OR YOU USE 100% SO DOES YOURS. MY ASSUMPTION THAT I'M MAKING BASED ON THE COMMENTS THAT YOU ALL HAVE MADE ABOUT POTENTIALLY NOT FEELING COMFORTABLE ROLLING OVER $7 MILLION INTO ANOTHER BOND WELL THAT'S JUST MY ASSUMPTION THINKING THAT YOU MIGHT NOT BE OPEN TO THAT. I THINK PERSONALLY I WOULD BE MOST COMFORTABLE WITH THE HYBRID APPROACH AND THE REASONS FOR THAT. I LIKE THE IDEA OF FINANCING THE ASSET OVER ITS LIFE. WE'VE GOT A TEN YEAR AND A TEN YEAR BONDS I ALSO THINK IS I ALSO THINK IS MORE CONSERVATIVE OF AN APPROACH BECAUSE WE DON'T KNOW WHAT NATURE IS GOING TO BRING TO US IN THE COMING YEARS AND IT ISN'T JUST HURRICANES. WE GET SOME BAD STORMS. WE'RE PART OF THE BEACH ON THE SOUTH SIDE OF THIS ISLAND IS GONE AND HAS BEEN HAPPENING REGULARLY. BOARDWALKS GONE ON TO FOUR FOOT DROP. 
          THAT WASN'T EVEN A HURRICANE. IT WAS IN THE STORMS FOR A MONTH OR SO YOU HAVE THAT'S NO NOT WHAT WE'LL BE TALKING ABOUT SNOW PLOWS NOW SO I AM VERY CONCERNED THAT WE BE CONSERVATIVE AND HAVE A LOT CASH ON HAND FOR WHAT IS LIKELY TO BE AN INCREASE IN FREQUENCY OF STORMS ON THE OTHER I PERSONALLY AM INTERESTED IN OTHER PROJECTS WE HAVE OVER THE LAST YEAR I'VE BEEN WORKING EXTENSIVELY ON PARKS AND ROADWAYS AND IF WE WANT TO DO SOME OF THOSE WE MAY WANT SERIOUSLY TO CONSIDER BONDING TO THE EXTENT THAT I WOULD BE INTERESTED IN FOR OTHER PROJECTS I DON'T WANT TO GO TOO FAR ON BONDING FOR THE BEACH. 
          I END UP WITH A HYBRID APPROACH . THANK YOU SIR. 
          [01:20:07]
I ALSO FAVOR THE HYBRID APPROACH AND AND I COMPARE IT TO MY PERSONAL LIFE. 
          YOU KNOW, DO I WANT TO USE ALL MY CASH TO MAKE REPAIRS ON MY HOUSE OR DO I GET, YOU KNOW, SOME SORT OF EQUITY LINE TO PAY FOR THOSE TWO HPC SYSTEMS? I HAVE TO REPLACE PRETTY SOON AND ALTHOUGH I DON'T GET THE SAME KIND OF INTEREST RETURN THAT THAT HOW DOES ON MY CASH TO TALK TO YOUR ADVISORS I WOULD RATHER HAVE THAT IN CASE OF OTHER KIND OF SO THAT'S WHY I FAVOR THE HYBRID APPROACH I DO HAVE A COUPLE OF QUESTIONS THOUGH. 
          ONE IS I WOULD I AM INTERESTED IN WHETHER TO CALL OR NOT AND I THINK THAT DEPENDS UPON THE INTEREST RATE AND OUR COMBINATION PRINCIPAL AND INTEREST PAYMENTS WOULD BE FOR THE FIRST COUPLE OF YEARS WHERE WE WOULD DOUBLE UP TO SEE WHAT WOULD FINANCIAL IMPACT THAT WOULD MAKE AND SO THAT WOULD MAKE A DIFFERENCE INTO HOW MUCH IS BORROWED. 
          SO I'D LIKE TO KNOW THE ANSWER TO THAT ONE AND AS I UNDERSTAND IT THESE THREE APPROACHES WOULD NOT HAVE ANY NONE OF THESE APPROACHES WOULD INCREASE THE MILITARY. 
          IT'S MUCH MY UNDERSTANDING I JUST WANT TO CONFIRM THAT AND THE COST OF OF BONDS AS I RECALL IS FOLDED INTO THE BORROWING. YOU DON'T HAVE TO ALSO PAY IT LIKE CLOSING COST IN BUYING A HOME. YOU DON'T HAVE TO PAY EXTRA MONEY ON TOP. OKAY. AND THEN PHASE THREE THE THOSE STRUCTURES GROINS WHATEVER THEY'RE CALLED ARE THE COST OF PHASE THREE EVEN THOUGH WE DON'T YET KNOW WHEN WE'RE GOING TO DO IT IS INCLUDED IN THE COST THE ESTIMATED COSTS OF THE 4640 65I THINK IT IS YEAH SO THAT COST IS INCLUDED AND THEN TERMS BEEN ANSWERED. 
          WHAT DO WE THINK IS GOING TO BE THE INTEREST RATE RANGE FOR BONDS? IT BE ISSUED IN PERHAPS AUGUST OF THIS YEAR. WE HAVE A FORECAST RANGE THAT THE LAST RUN THAT OUR FINANCIAL ADVISOR DID HAD US PAYING A BLENDED RATE OF ABOUT 3.53%. 
          OKAY. ALL RIGHT. AND OUR CURRENT RATE IS WHAT ON THE 2017 WAS LESS THAN 2%. IT'S JUST SORT OF JUST GO TO IS ABOUT TWO. 
          YEAH OKAY. ALL RIGHT AND THEN WHAT IS THE TIME LINE FOR OF BONDS THIS YEAR WHEN WHEN DO WE HAVE TO START? WHEN DOES OUR FIRST READING ON A BOND ORDINANCE NEEDED AND WHAT'S THE PROCESS FOR IT? IS IT TO READINGS OF OF DESCRIBING THE THE TIMING ON WHEN TO ISSUE BONDS WILL BE DECIDED BY Y'ALL AND THE STAFF IF YOU'RE GOING TO KNOW IN MAY WHAT THE CONTRACT CALLS ARE THEN YOU WOULD NOT WANT TO MAKE YOUR FINAL DETERMINATION ON THE AMOUNT TO BORROW YOU KNOW THE COST THAT WAS NICELY YOU'RE LOOKING TO HAVE MONEY IN THE BANK BY AUGUST DEPENDING YOUR SCHEDULE. 
          IF WE LEAVE HERE TODAY WITH THE SENSE THAT THE HYBRID OR THAT YOU WILL BE BORROWING SOMETHING THEN WE CAN START SOME OF THE PAPERWORK WORK SO THAT YOU YOU WOULDN'T HAVE TO WAIT A LONG TIME FOR A PRELIMINARY OFFICIAL STATEMENT YOU PROBABLY WON'T GET TO THE RATING AGENCIES UNTIL THE SUMMER WHEN. YOU'VE DECIDED WHAT THE WHAT THE PRICE THE AMOUNT IS GOING TO BE. THE PROCESS IS THAT YOU ALL HAVE TO ADOPT AN ORDINANCE AND THAT'S A TWO RATING PROCESS GENERALLY. OUR ORDINANCES FOR THIS TYPE OF DEBT SET THE PARAMETERS AND DELEGATE TO THE TOWN MANAGER THE AUTHORITY TO MAKE THE FINAL DECISIONS. WE WOULD PROBABLY HAVE A NOT TO EXCEED NUMBER ALTHOUGH IF YOU ALL FEEL STRONGLY ABOUT IT AND YOU KNOW THE THE COST AND WE CAN HAVE AN EXACT NUMBER OF IF TO THE EXTENT THAT WE ARE THE BUT BUT THE DECISIONS ABOUT EXACTLY WHEN TO SELL THE BONDS AND THE EXACT MATURITY SCHEDULE THOSE DETAILS WOULD BE DETERMINED BY THE TOWN MANAGER. 
          YOU ALL HAVE A A WELL-DEVELOPED RULE THAT YOU DO NOT CHANGE ORDINANCES BETWEEN RATINGS AND SO WE WOULD WANT TO KNOW YOU ALL WANT IN THE ORDINANCE BEFORE YOU GIVE IT FIRST READING AND WE WOULD NEED TIME IN THE SUMMER JUNE JULY TO HAVE TWO READINGS THEY DON'T HAVE TO BE IN THE SAME MONTH WE CAN HAVE IT ONE IN JUNE AND ONE IN JULY. 
          SO THE THAT'S REALLY THE PROCESS. Y'ALL ARE THE ULTIMATE DECISION MAKERS AND ONCE YOU'VE MADE THE BIG DECISIONS YOU IT TO THE STAFF TO IMPLEMENT YOUR DECISION AND ANOTHER RELATED BOND QUESTION WHILE I'M LOOKING AT YOU IS THAT YOUR FIRM HAD MADE A PRESENTATION ABOUT AN OPPORTUNITY FOR A DIFFERENT TYPE OF BONDS OTHER THAN GENERAL OBLIGATION BONDS OR SPECIAL OBLIGATION BONDS AND THAT IS I'LL TRY TO GET THIS RIGHT INSTALLMENT PURCHASE REVENUE BONDS AND A COUPLE OF FOLKS ON THE COUNCIL HAVE 
          [01:25:07]
ALREADY MENTIONED WE HAVE OTHER THINGS THAT WE'RE INTERESTED IN DOING AND MAY NEED TO FIND SOME FUNDING SO IT POSSIBLE TO BLEND THIS TYPE OF BOND BETWEEN NOURISHMENT BONDS INTO AN INSTALLMENT PURCHASE REVENUE BOND TO BE ABLE TO DO OTHER THINGS OR BASED ON TIMING AND BASED ON WHAT WE CAN AND CAN'T DO WITH THOSE TWO TYPES OF BOND STRUCTURES SHOULD WE SEPARATE THEM OF FOR THOSE OF Y'ALL THAT HAVEN'T HEARD A PRESENTATION ON INSTALLMENT PURCHASE REVENUE BONDS THAT IS DEBT THAT IS ISSUED TAX EXEMPT DEBT ISSUED ON BEHALF OF THE TOWN BY A NONPROFIT CORPORATION THAT YOU CREATE FOR THE TOWN THAT THE THE SEPARATE THAT'S BETWEEN THE TOWN AND THE NONPROFIT IS ISSUER CAUSES THE INSTALLMENT PURCHASE REVENUE DEBT TO NOT BE CONSIDERED GENERAL OBLIGATION DEBT OF THE TOWN THE IT'S SOMETHING THAT SCHOOL DISTRICTS USED EXTENSIVELY UNTIL 2006 THE LEGISLATURE CHANGED THE RULES SO THE PURCHASE REVENUE BONDS ARE NOW AVAILABLE ONLY TO MUNICIPALITIES AND COUNTIES THEY DO WORK WELL WHEN YOU HAVE A NUMBER OF DIFFERENT PROJECTS THAT MIGHT BE PAID FOR FROM A NUMBER OF DIFFERENT REVENUE SOURCES AND YOU ALL DO HAVE MANY DIFFERENT REVENUE SOURCES INCLUDING YOUR REAL ESTATE TRANSFER FEE SO AGAIN DEPENDING THE NATURE OF THE PROJECT THEY COULD BE PAID FOR UNDER INSTALLMENT PURCHASE REVENUE BONDS AND THEN YOU WOULD LITERALLY MATCH THE SOURCES OF REVENUE TO THE INDIVIDUAL PROJECTS THE DISADVANTAGES THOSE ARE EVEN MORE COMPLEX THAN THAN THESE REVENUE OR SPECIAL OBLIGATION BONDS. YOUR COST OF ISSUANCE IS HIGHER AND IT IS LARGELY BASED WAS SPENT ON TWO THINGS ON PAPER IS BASED ON THE PROJECTS YOU ARE BUILDING AND YOU MAKE A COMMITMENT THAT ON AN ANNUAL BASIS THE TOWN COUNCIL WOULD DECIDE WHETHER TO APPROPRIATE OR NOT APPROPRIATE. SO WE CALL THAT NON APPROPRIATION DEBT. THE NON APPROPRIATION DEBT HAS USED IN SOUTH CAROLINA MY ENTIRE CAREER WHICH GOES WAY WAY AND YOU ALL STARTED USING IT FOR WHAT I KNOW IS THE FIRST RENOURISHMENT THAT I WORKED ON IN THE MID NINETIES. SO THE NATURE OF THE PROJECTS HAVE TO BE EIGHT OR TEN TO BE SOMETHING THAT IF YOU DON'T PAY IF YOU CHOOSE TO USE NON APPROPRIATION YOU USE OR LOSE THE USE OF THAT ASSET. SO IF YOU WERE DOING A NEW TOWN HALL YOU DIDN'T MAKE THE PAYMENT YOU'D HAVE TO OUT OF TOWN HALL AND YOU SAY WELL HOW DO YOU MORTGAGE ME? HOW DO YOU GIVE SAND AS AS A YOU KNOW AS, A COLLATERAL BUT JUST GIVE IT THAT'S REALLY BASED ON THE SECOND ASPECT AND THAT IS THE TOWN'S CREDIT WORTHINESS THAT YOU WOULD HAVE NO PROBLEM FINANCING ALMOST ANYTHING YOU WANTED TO THE MET IRISH YOU KNOW REGULATIONS BECAUSE PEOPLE WHO WOULD BUY THAT DEBT KNOW THAT THE TOWN OF HILTON ISLAND IS TO PAY ITS DEBTS YOU ARE NOT GOING TO NON APPROPRIATE THE IN THE SPECIAL OBLIGATION BOND YOU WILL PLEDGE YOUR THAT YOU WILL PLEDGE THE NECESSARY PORTION OF YOUR BEACH PRESERVATION FEE SO THAT'S AN ENFORCEABLE CONTRACT THAT YOU PROMISE TO MAKE THOSE PAYMENTS FROM BEACH RENOURISHMENT YOU ALSO CAN AND WOULD RECOMMEND THAT YOU GIVE THAT A WHAT WE CALL A SECOND BARREL WHICH IS THAT YOU MAKE NOT YOU MAKE A MORE YOU MAKE A COMMITMENT THAT YOU COULD TOWN COUNCIL COULD YOU COULD CHOOSE TO USE OTHER AVAILABLE SOURCES OF REVENUE IF THERE WAS A SHORTFALL IN YOUR BEACH PRESERVATION FEE. SO AT THE NUMBERS IT'S NOT REALISTIC THAT YOU WOULD HAVE A SHORTFALL BUT IF YOU DID HAVE A SHORTFALL YOU'RE NOT LEGALLY OBLIGATED TO GO TO ANY OTHER POT OF MONEY. BUT YOU COULD CHOOSE TO USE GENERAL FUND PROCEEDS OF THEIR OBLIGATION BOND AND THAT SECOND POSSIBILITY OF SOURCE OF REVENUE MAKES THE BONDS EVEN STRONGER IN THE MARKET PLACE. BUT YOU ALL HAVE SO MUCH LIQUIDITY. YOU ALL HAVE SUCH A GOOD HISTORY, SUCH HIGH CREDIT RATINGS THAT THAT Y'ALL REALLY ARE DIAMONDS WHEN YOU GO INTO INTO THE MARKET AND ALMOST ANY FORM OF DEBT THAT Y'ALL WOULD PICK Y'ALL WOULD BE GETTING AS GOOD AN INTEREST AS ANYBODY IN THE COUNTRY. THANK YOU VERY MUCH FOR THAT EXPLANATION. 
          [01:30:01]
THAT'S VERY HELPFUL. SO BASED UPON THE TIMING OF THE INSTALLMENT PURCHASE REVENUE WANT TO MAKE SURE I GET PURCHASE REVENUE IN THE RIGHT ORDER THE BEACH RENOURISHMENT BONDS THAT WE'RE TALKING ABOUT THE SPECIAL OBLIGATION BONDS IT WOULD SEEM AS THOUGH IF WE'RE GOING TO THINK ABOUT DOING SOME FINANCING FOR OTHER PROJECTS IT WOULD BE BETTER TO SEPARATE THEM. I THINK SO AND I THINK THE THE DELIBERATE WAY THAT Y'ALL GO ABOUT MAKING YOUR DECISIONS WOULD BE SUCH THAT THE BEACH PROJECT NEEDS TO TO BE FOCUSED ON AND TAKING CARE OF AND THEN THE POSSIBILITY OF OTHER CAPITAL IMPROVEMENT PROJECTS THAT Y'ALL MIGHT BE INTERESTED IN FUNDED THROUGH INSTALLMENT PURCHASE OR GENERAL OBLIGATION OR OTHER OTHER TYPES OF DEBT. SO I DO THINK THAT THOSE TWO PROBABLY NEED TO BE SEPARATED AND MAYBE THEN I HAVE ANOTHER FINANCIAL QUESTION AND THAT IS BASED ON THE CHART AND I APOLOGIZE I DON'T KNOW WHICH NUMBER IS BUT WHERE YOU WHERE YOU SHOWED THE REVENUE WAS COMING IN VERSUS THE DEBT SO THAT EVEN IF WE DO FINANCING OF THIS PARTICULAR ISSUE WHAT I WAS WONDERING ABOUT WAS HOW MUCH MONEY WOULD WE HAVE TO PUT AWAY EACH YEAR AFTER YOU PAY THE DEBT SERVICE TO ACCUMULATE SOME BEACH NOURISHMENT FEES GO TOWARDS THE NEXT BOND ISSUE SO . WE DON'T HAVE TO BORROW ALL OF THAT AND IT LOOKS AS THOUGH THERE'S A GAP I'VE FORGOTTEN IT SEEMS LIKE IT'S ORANGE AND I FORGET THE OTHER COLOR WAS ABOUT THE LINE CHART OR YEAH THE LINE CHART. LINE CHART YEAH ONE. 
          OKAY SO I THINK I HEARD YOU SAY AND AND HEARING A TEN YEAR ISSUE THAT OVER THAT TEN YEAR TERM WHILE WE'RE PAYING DOWN THE DEBT IF WE CHOOSE TO GO THAT WAY THAT WE WOULD STILL BE ABLE TO ACCUMULATE SOME FUNDS TO PUT AWAY AND THAT TO TAKE SO WE WON'T HAVE TO PAY IT WE WON'T HAVE TO BORROW THE FULL ISSUE OF THE NEXT RENOURISHMENT IN FACT BECAUSE OF THAT ORANGE LINE WHICH IS THE THE DEBT SERVICE ON THE CURRENT BONDS IS AND I IN THE HYBRID SCENARIO SCENARIO OR OPTION TO LOWER THAT LINE WOULD ACTUALLY BE LOWER UNLESS WE DOUBLE UP FOR A COUPLE OF YEARS BY NOT CALLING THE CURRENT BOND. IT WOULD EXACTLY. 
          AND THAT'S ONE OF THE REASONS WE'RE NOT SUGGESTING IF WE IF WE DO A BOND ISSUE TO KEEP THE OTHER BONDS OUTSTANDING BECAUSE THAT CHART THAT IS DRAWN TO THE CHART PRIOR THAT THAT CHART WOULD DOUBLE ROUGHLY DOUBLE IN SIZE THE LAST COUPLE OF YEARS THAT WOULD MORE COVERAGE RATIO THAT WOULD MAKE OUR BONDS RIGHT OKAY. THANK YOU. 
          BUT YOU ALSO HAVE TO ADD THE SIX AND A HALF MILLION THAT YOU SPEND AND SEE IP AND OPERATING COSTS AS WELL. THAT GAP EXHIBIT I MEAN YOU'RE SHOWING THE TOTAL REVENUES AND YOU'RE JUST THE DEBT UP TO SHARE THE OPERATING COSTS AND SEE IP BUT. 
          YOU'VE SAID ABOUT SIX AND A HALF MILLION DOLLARS AS WELL SO I JUST DON'T WANT PEOPLE TO THINK THAT WE'D JUST BE COLLECTING THAT DELTA THAT SHOWING ON THAT EXHIBIT THAT'S NOT ACCURATE. SO I JUST WANT TO MAKE THAT CLEAR THAT PRESENTATION. 
          BUT YES, CERTAINLY EVERY YEAR WE'RE SPENDING MONEY ON OPERATING AND OTHER CAPITAL PROJECTS FROM THIS FUND. I JUST DON'T THINK IF WE TALK ABOUT $10 MILLION I THINK YOU'RE RIGHT $10 MILLION THAT WE RECEIVE YOUR INTEREST AND AT SOME POINT ON A AS ON AN ESCALATING SCALE OVER A TEN YEAR PERIOD AND WHAT WE EARN VERSUS WHAT WE WOULD SPEND IT'S GOING TO CROSS AT SOME POINT. AND SO MY QUESTION IS I MEAN KNOW YOU TALK ABOUT A HYBRID BUT WHERE THAT LINE CROSSES WOULDN'T THAT BE OUR OPTIMAL PERIOD OF DEBT VERSUS CASH? I TALK ABOUT THIS ONE YEAR INSTEAD OF BEING 5050 IT COULD BE 3070. 
          IT COULD BE IT DOESN'T HAVE TO BE 5050. WE USE A 5051 OR YOU RUN THAT WE'LL HAVE THE BEST IDEA OF WHAT WANT COUNSEL DO YOU WANT US TO RUN THESE SCENARIOS OF 6040 AND BE ABLE TO DO IS WE HAVE TO DECIDE MUCH WE WANT TO HOLD BACK FOR AGAIN ONE OF THE THINGS THAT WE TO UNDERSTAND AND IS THE COSTS WE NEED TO UNDERSTAND THE COSTS ASSOCIATED WITH THIS PROJECT ADDITION TO REVIEW AGAIN THE FUND BALANCES THAT WE HAVE AND AND TAKE INTO CONSIDERATION THE MANY RESOURCE AND THE MANY RESTRICTIONS THAT WE DO HAVE BUT YES YOUR POINT YES WE CAN RUN THOSE MODELS SO TO GIVE AN IDEA FOR HOW WE MAY HAVE A 2575 DEBT THAT CAN BE DONE RIGHT. WELL FIRST THANK YOU STEVE FROM ASKING THE QUESTION BECAUSE THAT WAS MY FIRST QUESTION AT THE BOTTOM OF MY MY PAPER TASK AND THEN THE SECOND ONE THAT I 
          [01:35:02]
WANTED TO FOLLOW UP ON SO I DIDN'T I DIDN'T PICK UP THE ANSWER BUT AS ONE VOICE AND ASKED A QUESTION WITH REGARD TO NONE OF THIS WOULD INDICATE THAT WE WOULD BE RAISING MILLAGE COVER ANY OF THE EXPENSES SO THAT'S NOT AN INTO CONSIDERATION NOW JUST WANTED THE I WOULD ALSO LIKE TO ANSWER THAT QUESTION I'VE NEVER IN CAREER BROUGHT A BUDGET FORWARD WHERE PROPERTY TAX INCREASE WAS AN OPTION NOR WOULD IT BE CAUSED BY THIS IS WANTED CONFIRM THOSE TWO SINCE I DIDN'T ACTUALLY HEAR THE ANSWER MAY HAVE THINKING ABOUT OTHER THINGS IN THE PAST WE'VE DONE A REALLY GOOD JOB WITH FAIRNESS HELP OF NAVIGATING OUR FINANCES AND GETTING OUR DEBT AS LOW AS IT IS AND TREMENDOUS CREDITS TO HER THAT GUIDANCE AND FOR OUR FINANCE TEAM FOR MAKING IT UNDERSTAND TO THOSE OF US WHO'S NOT WHOSE BAILIWICK IS NOT NECESSARILY BUT ALONG WHEN THE WHEN MATTHEW CAME WE WERE UNDER PREPARED AND THAT'S WHERE THAT FIVE MILLS CAME IN TO HELP OFFSET THE EXPENSES THAT WE INCURRED. 
          BUT ALONG WITH THAT THERE WAS A CONCERTED EFFORT TO PUT AWAY FUNDS FOR AN EVENTUAL OR ANOTHER HURRICANE EPISODE SO THAT WE WOULDN'T BE IN THAT POSITION. 
          THAT'S NOT THIS MONEY CORRECT? NO, IT'S NOT. SO WE'RE WE'RE NOT WE'RE NOT REPRESENTING THE DISASTER FARM IN THIS AND JUST LIKE HOW MUCH MONEY IS CURRENTLY IN THAT OTHER FUND, I KNEW THAT PERSON WAS GOING TO BE ASKED I'M THE GUY WHO IS I DON'T HAVE THE TIME. GET BACK WITH YOU ON THAT JUST CONFIRMING THAT IT'S A SEPARATE FUND AND AS RECALL FROM PREVIOUS REPORTS THAT FUND AS WELL IS WELL SITUATED TO GET US THROUGH WHILE WE'RE WAITING FOR FEMA REIMBURSEMENTS SHOULD ANOTHER STORM COME SO THAT WOULDN'T HAVE TO THEN IMPLEMENT A MILLAGE INCREASE TO OFFSET OKAY. 
          I JUST WANT TO MAKE THAT REALLY CLEAR BECAUSE AS WE TALK ABOUT THIS TODAY THERE'S BEEN A LOT OF DISCUSSION OF STORMS THAT COME IN PREPAREDNESS AND DON'T WANT TO BE BEHIND THE EIGHT BALL. WE ARE NOT BEHIND THE BALL. WE ARE WELL PREPARED FOR STORMS TO COME SO THAT THAT PART OF THE CONVERSATION AS SUBSTANTIVE TO THIS PRESENTED PARTICULAR CONCERN OR ISSUE WITH REGARD TO FUNDING FUTURE ENORMOUS AS IT MIGHT HAVE SEEMED TO SOMEONE WHO WAS LISTENING AND SO I JUST WANTED TO CLARIFY ALL OF THAT MAKE SURE I RIGHT AND THAT WAS THE CASE AND SIMILAR TO THE WAY ONE WOMAN TURNER SEES THIS I'M A IF YOU GO PERSON AND PLAN AHEAD WITH VARIOUS ACCOUNTS AND UNDERSTAND THE NECESSITY OF BEING ABLE TO PULL FROM ONE SO THAT YOU'RE NOT IN A DEFICIT SOMEWHERE ELSE FIND YOURSELF IN TROUBLE AND IN SO I'M MORE INCLINED TO TO CONSIDER A FULL CASH FUNDING BECAUSE OF MANY OF THE THINGS THAT SHE POINTED OUT BUT ALSO SOME OTHER REVENUE STREAMS THAT HAVEN'T BEEN NECESSARILY ACCOUNTED FOR THAT HAVE QUESTIONED WORKS BY FOR INSTANCE WE KNOW THAT WE WILL HAVE AT LEAST A ONE TIME INFUSION OF FUNDS FROM THE SETTLEMENT WAS FAIRLY AND B AND IF I RECALL FROM THAT DISCUSSION THAT ONLY ONE OF MANY TO COME IN THAT AMOUNT IS SOMEWHERE BETWEEN TO $5.6 MILLION. $6 MILLION, CORRECT SO WHEN WE'RE TALKING ABOUT MONEY AND AVAILABLE FUNDS, I DON'T WANT TO LOSE SIGHT OF THE FACT THAT THOSE FUNDS ARE OUT THERE AND THE POTENTIAL FOR ADDITIONAL FUNDS TO COME OUR WAY THAT WE HAVE NOT IDENTIFIED A NEED FOR COULD VERY WELL EITHER BOLSTER BACK UP OUR CASH RESERVES THIS CASE OR WOULD BE ATTRIBUTED TO THE THE CASH PAYMENT SO THERE'S THAT PIECE OF IT AND I WANTED TO MAKE SURE I WAS CORRECT IN THINKING ABOUT THOSE DOLLARS AND I THINK THAT'S A BIGGER CONVERSATION THAT THIS COUNCIL SHOULD HAVE BECAUSE WE HAVE NOT DISCUSSED WHERE THAT MONEY MIGHT FIND ITSELF IN A FUTURE BUDGET OR NEEDS PROJECT. SO SO I'M GOING TO LEAVE IT AT THAT AND NOT BELABOR IT BUT I AM MORE INCLINED TO PAY I AM VERY INTERESTED IN THE SCENARIOS THAT COUNCILMAN DESMOND BROUGHT UP WITH REGARD TO THE THE HYBRID PERCENTAGE TO 
          [01:40:05]
COST AND WHAT THAT ACTUALLY LOOKS LIKE AND WHAT THEN WOULD MAKE MOST SENSE BASED ON THE PROJECTIONS OF WHAT THE ULTIMATE COST IS AND WHAT OUR EXPECTATION WITH REVENUES ARE MUCH OF WHAT MELINDA BROUGHT UP BUT ALSO SOME OF THESE OTHER FUNDS THAT WILL BE COMING THROUGH TO THE TOWN NOT TO MENTION ANYTHING ELSE. I'LL LEAVE IT AT THAT. 
          OKAY. THANK YOU. THANK YEAH. 
          I WANTED TO GO BACK TO SORT REACT TO WHERE MR. DECIMAL AND MS.. 
          TURNER GOING. I AGREE THAT WE'VE GOT TO GET TO SOME POINT OF THE TYPE OF SCENARIO THAT YOU'RE GOING TO BRING BACK TO US. OKAY. 
          AND A LOT OF ASSUMPTIONS BEING MADE RIGHT NOW. BUT THE LINE GRAPH I THINK WE NEED TO ALSO CONSIDER THE FACT THAT WHAT GOES INTO THAT GAP ON THAT GAP AS YOU AT THIS LINE GRAPH THIS THERE'S A LOT OF THINGS IN THERE OKAY. WE'VE SEEN THE INCREASE IN REVENUES BECAUSE OF WHAT DID FOR US. OKAY. 
          BUT WE ALSO HAVE TO REALIZE THE EXPECTED PORTIONS OF HOW WE SPEND WE'LL SAY BEACH THAT BEACH NOURISHMENT MONEY HAS CHANGED AS WELL FROM OPERATIONAL STANDPOINT WE HAVE SAID TO MR. ORLANDO WE WANT TO DO BETTER WITH OUR BEACH OPERATIONS AND SOME OF THAT MONEY IS COMING THIS FUND SO I DON'T WANT TO LEAVE THAT PART OUT AS WE TALK ABOUT GAMBLE. 
          GAMBLE RIGHT. THE OTHER THING THAT I WANT TO MENTION IS WHEN IT COMES TO DISASTER RELIEF THAT HAS TO BE A PART OF THE CONVERSATION AS WELL BECAUSE DISASTER DOESN'T JUST BEING PUT MORE SAME ON THE BEACH THAT A LOT OF THE EXPENSES THAT COME ALONG WITH IF A HURRICANE COMES THROUGH SO WELL I APPRECIATE THOSE PROTECTING CASH OR DEBT DURING THE CONVERSATION. TWO ITEMS I WANT TO MAKE SURE WE THROW THOSE INTO THE EQUATION AS YOU COME BACK TO US WITH POTENTIAL COLUMN 30, 70, 64 THAT WAS GOING TO BE BUT ALL THOSE ELEMENTS HAVE TO BE PLAYED INTO IT AND I'M ASKING YOU ALL EXPLAIN THAT TO US AS WELL FOR A COUPLE OF REASONS. ONE IS WE'VE GOT A LOT OF NEW FOLKS OVER HERE AND OBVIOUSLY THE COMMUNITY IS WATCHING THEY WANT ANSWERS SOME OF THIS STUFF WE KNOW SOME OF THE STAFF SOME OF THE STAFF KNOWS WE NEED TO GET TO A POINT WHERE. EVERYBODY KNOWS EXACTLY WHAT'S IN THE SOUP AS. WE MAKE THESE DECISIONS. THANK YOU. 
          YEAH. SO YOU KNOW I APPRECIATE ALL THE COMMENTS AND QUESTIONS AND THEN HOW Y'ALL PRESENTED YOU REALLY OPENED UP SOME EYES THERE AND I DO THINK THAT AT SOME POINT IN TIME WORK WE NEED TO HAVE A CONVERSATION ABOUT ANALYSIS OF THE DISASTER FUND AND BEACH FUND AS TO HOW WE NEED TO MOVE FORWARD AND SAYING THAT NEEDS TO BE A PRIORITY RIGHT NOW. BUT I THINK THAT IS A GOOD TOPIC OF CONVERSATION. 
          AND THEN WITH THIS THIS GRAPH HERE WITH THE DEBT SERVICE RATIO, YOU KNOW IF WE'RE LOOKING AT A 4.48 SO FOUR AND A HALF TIMES ABLE TO PAY THE DEBT BACK, THAT'S PRETTY STRONG. 
          BUT WHERE IS THE OPTIMAL PLACE TO BE US YOU KNOW, I'M NOT SAYING BASED OFF OF THE EXPERTS BUT WHERE IS THE WHERE'S OUR OUR SWEET SPOT? WHERE DOES IT MAKE THE MOST SENSE? SO THOSE ARE OPTIONS AS YOU COME BACK WITH WITH THE HYBRID MODEL CAN HELP US MAKE THAT DECISION OF SAYING OKAY, THIS DEBT SERVICE COVERAGE RATIO ACCEPTABLE AND IT ALLOWS US TO MOVE FORWARD AND DO THE THINGS THAT WE NEED TO DO. 
          SO THAT'S YOU KNOW, I LIKEN THIS TO YOU KNOW WE'VE GOT A LOT OF UNKNOWNS. 
          WE DON'T KNOW WHAT THE WHAT THE CONTRACTOR COST IS GOING TO BE. WE'VE GOT TO GET THAT SO THAT WE CAN GET THE FUNDING PART PUT TOGETHER AND THEN WE CAN HAVE BETTER CONVERSATIONS WITH AN ADDITIONAL GRAPH LIKE THIS ONE. I THINK THAT IT WOULD BE A VERY ONE FOR US TO HAVE WITH THOSE OPTIONS. I THINK WE'VE HEARD ACROSS THE BOARD BUT YOU KNOW A HYBRID DISCUSSION UNDERSTANDING THE TRUE VALUE OF IT AND HOW IT FITS OUR FINANCIAL MODEL IS IMPORTANT AND COURSE YOU KNOW, PAYING OFF DEBT VERSUS KEEPING THAT KNOW HOW THAT WORKS WHAT'S WHAT'S IN THE BEST INTEREST. SO OKAY MAY I ADD A LITTLE BIT TO THIS? YEAH. SO SINCE I'VE ARRIVED AND IT'S LAST WEEK WAS FOR YEARS FEBRUARY 2121 I'LL ALWAYS REMEMBER THAT DAY I'VE ALWAYS ANTICIPATED BORROWING JUST LIKE WE HAVE IN THE PAST FOR THE NEXT BEACH RENOURISHMENT PROJECT. 
          SO COUNCILWOMAN BROWN RIGHT AS WE STARTED TO TAKE A LOOK AT SOME GAPS AT OUR BEACHES, WHETHER THAT WAS FAILING BOARDWALKS, ROTTING BOARDWALK SNAILS SHOOTING UP I MEAN I THINK SOMEONE'S FOOT WENT THROUGH ONE AND WE KNOW WHAT HAPPENS WHEN THAT HAPPENS. 
          MOBILE MAPS AT EVERY BEACH PARK ADA BARRIER FREE WORK WE'VE DONE WE HAVE ALWAYS TAKEN A 
          [01:45:01]
LOOK AT OUR OUR DOLLARS ARE AVAILABLE OUR REVENUES AND IT'S INTERESTING THIS THIS TELLS US WHY WE'RE IN SUCH GREAT SHAPE RIGHT MARCH 20 THE WORLD SHUTS DOWN AND OUR REVENUES STARTED SPIKE SO WE NEVER ANTICIPATED TO BE IN THIS PLACE BUT WE'VE ALWAYS TO EVALUATE THE DEBT WHERE I'D SAY THE BEACH RENOURISHMENT EVERY TEN YEARS BUT WE'RE AT YEAR EIGHT AND SOME SOME PRIMARY AND SECONDARY DUNES ARE STARTING TO TO BE IMPACTED AND WE KNOW WHAT THAT THAT WE KNOW WHAT CAUSES THAT AND WE KNOW WHAT THE EFFECTS OF THAT ARE. 
          SO I THINK WE'RE IN WE'RE IN GOOD SHAPE. I AM HEARING EXPLORE SOME HYBRID OPTIONS CALL THE WHAT YOU WANT I'M LEANING TOWARDS MORE AVAILABLE FUNDS AND LESS DEBT I'M SURE MS.. BURNETT MADE HER POINT CLEAR YOU ALL TODAY THAT SHE'S LEANING TOWARDS MORE DEBT AND LESS CASH AND JUST EVEN INTERNALLY WE'RE BALANCING THAT THERE ARE AVAILABLE FUNDS BUT I TO MAKE SURE THAT I REALLY CLEAR THE AIR TODAY WE'VE USED BEACH PRESERVATION AND FEES IN THE PAST DIRECTED BY TOWN COUNCIL TO MAKE SOME IMPROVEMENTS TO THE BEACH, NOT TO PAY FOR JANITORS AND LANDSCAPING AND TREES BUT TO IMPROVE BOARDWALKS, STORMWATER TOILETS LEAKING ROOFS, ROTTING BUILDINGS SOME THINGS THAT WE HAVEN'T PUT ENOUGH EFFORT INTO OVER THE YEARS I DON'T ANTICIPATE THAT WE'RE GOING TO KEEP DOING THAT FOR THE END OF TIME CATCHING UP WITH SOME DEFERRED MAINTENANCE AND SOME CAPITAL PROJECT INVESTMENT. BUT I DO THINK WE'RE IN GOOD SHAPE AND I WANT TO SAY THAT WE HAVE APPROXIMATELY $13 MILLION A YEAR REVENUE IN ADDITION TO PAYING OUR DEBT WE HAVE $39 MILLION IN CASH RESERVES, 12 OF WHICH IS A FUND BALANCE RESTRICTION. 
          AND SO THAT FREES UP ABOUT $26 MILLION. WE ARE ON POINT AND ON TRACK TO WHAT THE ORIGINAL PLAN WAS EIGHT YEARS AGO WHEN. THE FIRST ISSUANCE WAS WAS BORROWED AGAIN SO I JUST THINK WE'RE IN GREAT SHAPE. I HEAR YOU LOUD AND CLEAR THE SWEET SPOT BETWEEN COST OF BORROW VERSUS BENEFIT OF CASH WE WILL FIND WE WILL FIND WHERE THOSE TWO LINES DIVIDE AND I BRING IT BACK TO YOU. 
          THERE ARE SOME STEPS AND IN SHORT AND I'VE BEEN WHISPERING THROUGHOUT THE MEETING GETTING IT ALL PERMITS IN HAND. WE ARE PUTTING CONTRACTS TOGETHER WELL UNDERWAY PERMITS TOOK US TWO YEARS WE COULD IN GOOD FAITH PUT A CONTRACT OUT THERE WITHOUT HAVING AT LEAST THE FIRST PERMIT IN HAND WE COULDN'T WE COULDN'T RISK THAT THERE'S NO SENSE IN DOING THAT SO WE HAVE TO GET ALL PERMITS IN HAND. WE HAVE TO BUILD THE PROJECT, GET THE BIDS AND START LOOKING AT CONTRACT AND CONTRACT NEGOTIATION. 
          WE WILL BRING YOU BACK THE ANSWERS AND SOLUTIONS CASH FIRST THAT WE'RE GOING TO EXPLORE PAY OFF CURRENT REALLY FROM MY PERSPECTIVE IS ALWAYS BEEN AN ANSWER OF ARE WE GOING TRY TO PAY OFF OUR FIRST BORROWED BEFORE WE BORROW THAT THAT'S AS COMPLICATED AS IT WAS AND AND WE STARTED TO BENEFIT FROM GREAT INTEREST RATES AND INVESTMENTS IN $10 MILLION AND IN IN INVESTMENT REVENUE WE CAN LOOK AT USING SOME AGE TAX DOLLARS IN ADDITION BEACH PRESERVATION FEE IN ADDITION TO SOME FUNDS WE'RE TALKING ABOUT TODAY THAT PART OF A NEGOTIATED CONTRACT OR NEGOTIATED AGREEMENT WE WE TALKED ABOUT WE ARE GOING LOOK AT ALL OF THAT. 
          YEAH, THE SETTLEMENT FUNDS AS WE CALL THEM AND THEN REALLY THE MECHANISM TO ENACT ALL OF THIS THROUGH ORDINANCES TWO READINGS IT COULD BE A BUDGET AMENDMENT AHEAD TIME IT COULD BE IN THE NEXT BUDGET IT HAS BE SOON IT HAS TO BE BEFORE WE'RE UNDER CONSTRUCTION AND WE HAVE TO GO UNDER CONSTRUCTION. WHAT WE DIDN'T TALK ABOUT TODAY IS APPROXIMATELY HOW MUCH ARE FEMA FOR FEMA. OKAY, SO NINE APPROXIMATELY SEVEN ISH MILLION DOLLARS OF FEMA REIMBURSEMENTS THAT WE ARE GOING TO EXPEND IN PHASE ONE BY END OF YEAR. 
          SO WE'LL SPEND THEM WE'RE WITH THAT CHRIS GRIEVE LOOKED US IN THE EYES AND SAID YES AND JEFF JEFF AGREES BUT THAT IS OUR DECISION POINT CANNOT ALLOW THOSE DOLLARS BACK AND SO I'M TO WORK WITH WITH WITH FRANNY AND ADRIAN COURSE BUT I'M GOING TO WORK WITH WITH ALL OF YOU DIRECTLY TO FIGURE OUT SOME SOLUTIONS. I JUST WHILE YOU'RE TALKING I HAD I SEE WHAT I WHAT I THINK WE MAY NEED TO LOOK AT IS WHAT'S THE TEN YEAR PLAN IF WE'RE LOOKING TO COME BACK IN TEN YEARS TO DO THIS AGAIN WHERE DO WE WANT TO BE? RIGHT. KNOWING THE COSTS ARE GOING TO INCREASE. 
          HOPEFULLY THERE'S ANOTHER COMPETITOR THAT COMES IN THAT REALLY THE COST A LITTLE BIT 
          [01:50:02]
BUT WHAT IS THE ULTIMATE GOAL? SO KIND OF GET THAT SET NOW WE GOT THAT TEN YEAR VIP LOOKING OUT FORWARD GOING WE'RE GOING TO HAVE THIS AGAIN THIS IS WHAT WE NEED TO PUT AWAY THE BOARD ARE WE GOING TO HAVE A DECIDED MAYBE A FINANCING HYBRID MODEL IS BETTER AND YOU 75% CASH 25% BORROW BUT WHAT IT THAT WE NEED TO LOOK AT IN THAT REALM TO HELP US MAKE SOME DECISIONS AS WE TAKE A LOOK AT YOU KNOW THE BEACH PRESERVATION FUND AND IF IT'S IN HIS FUNDING AND GOING TO ADD ONE ONE THING AND THERE AREN'T AND I'M NOT ASHAMED OR AFRAID TO SAY THIS OUT LOUD THERE ARE NOT A LOT OF TOWN IN THE COUNTRY THAT HAVE BEEN THROUGH A MASSIVE BEACH RENOURISHMENT PROJECT LIKE THIS AND THIS IS MY FIRST PROJECT. THIS IS HIS FIRST PROJECT AND IT IS HIS FIRST PROJECT. WE ARE MORE THAN FINE OF DOWNSHIFTING OTHER PROJECTS SO THAT WE DON'T MESS UP BEACH RENOURISHMENT THERE WILL BE TRUCKS THERE WILL BE LARGE TRUCKS THROUGH NEIGHBORHOODS LARGE TRUCKS TO BEACH PARKS MOBILIZING SAND AND EQUIPMENT ON THE BEACH. YOU KNOW MR. DESMOND'S AN EXPERT IN THIS THE THIS IS A MUCH PROJECT THAN US BUILDING AN INTERSTATE AND WE KNOW THAT. BUT I WANT TO REALLY MAKE SURE THAT WHEN WHEN I PRESENT THE BUDGET THIS YEAR YOU ARE GOING TO SEE LEAST FROM MY BUDGET PROPOSAL TO YOU IS THAT WE HAVE LESS PROJECTS ONE IS THE THREE OF US HAVE TO BE JOHNNY ON THE SPOT FOR THE GOOD, THE BAD AND THE UGLY OF A BEACH RENOURISHMENT PROJECT. 
          SO I THINK WE'RE TALKING A LOT ABOUT MONEY BUT THE DISRUPTION THAT'S CAUSED AND THE CHAOS AND THE OPPORTUNITY FROM A BEACH RENOURISHMENT PROJECT IS IS REALLY OUR FIRST TIME AND SO WHATEVER GOES WRONG KEEP TRYING TO LOOK AT CHRIS DOWN THERE AND SAY WHY DIDN'T YOU TELL? BUT I WILL ALSO SAY THANK GOODNESS HE'S CLOSE BY AND US AND I APPRECIATE HIM VERY MUCH . THANKS FOR RAISING THAT QUESTION ABOUT WHAT ARE WE GOING TO DO IN TEN YEARS. THAT WAS WHAT I WAS ASKING ABOUT ARE WE GOING TO BE ABLE TO ACCUMULATE MONEY OVER TIME REPAYING THE DEBT SERVICE SO THAT THE NEXT TIME WE DON'T HAVE TO BORROW THE WHOLE THING? SO I THINK THAT'S A GOOD IDEA ALSO LOOKING AT THE PROJECTIONS FLAT LINING UP, WE KNOW THAT OUR TAX REVENUES MIGHT SHRINK AND SO IT'S POSSIBLE THAT THE SAME SOURCES THOSE FUNDS WOULD BE BEACH RENOURISHMENT FEES OR BEACH PRESERVATION FEES SORRY AND SO THAT AMOUNT MIGHT DROP AS WELL AND SO I DARE ASK THE QUESTION I UNDERSTAND THE 1% COMES FROM STATUTORY AUTHORIZATION IS THAT CORRECT. THE 1% THE TAX LOCALLY THAT'S THE BEACH FEE OF 1% 2% 2% OH SORRY 2%. OKAY. 
          OKAY WELL THERE GOES MY IDEA TO GO TO SPIT IT OUT BUT WHAT I WAS REALLY THINKING IS THAT WHERE DOES THE AUTHORITY COME FROM AND IN A TEN YEAR PLAN DO WE NEED TO BE THINKING ABOUT GOING TO TWO AND A HALF PERCENT ALL THROUGH THAT I'M JUST TRYING A NUMBER OUT FOR US TO THINK ABOUT IT WE MAX THE 2% YEAH AND SO I WOULD TAKE STATUTORY AUTHORITY THE LEGISLATURE TO INCREASE THAT PERCENTAGE BUT THAT MIGHT BE SOMETHING I'M JUST THINKING OUT LOUD ABOUT A TEN YEAR PLAN ABOUT WHAT OTHER POSSIBILITIES THERE MIGHT THAT WE NEED TO LOOK AT. I WILL TELL YOU THAT THERE ARE OTHER MUNICIPALITIES THAT ARE WORKING ON A STATUTORY LEVEL TO SOME ADJUSTMENTS ADJUSTMENTS AT THE STATE LEVEL TWO TO HAVE ADDITIONAL FUNDING OPTIONS AND IT HASN'T BEEN VERY WELL RECEIVED AS OF SO THAT IS SOMETHING THAT IS BEING PUSHED AND AND IF I COULD JUST BRYCE AND RAISES THE POINT I'M TRYING TO MAKE SURE YOU ALL HERE IN OUR COMMUNITY SINCE OUR LAST BEACH RENOURISHMENT PROJECT COVERED HOWEVER I DON'T THINK THAT SENTENCE HAS EVER BEEN SAID ALOUD BEFORE NOT EXCEPT HERE WE HAVE WE HAVE ON PURPOSE JUST BECAUSE OF THE ECONOMY HAVE RESERVES OF $39,000,000.12 OF WHICH ARE RESTRICTED 26 MILLION ARE AVAILABLE LET ALONE SOME OTHER FUNDS. 
          WE HEARD ABOUT SOME DOLLARS TODAY AGE TAX DOLLARS THERE'S THERE'S THERE'S FUND BALANCE AS WELL ABOVE AND BEYOND YOUR FUND BALANCE. AND SO I UNDERSTAND THE SENTIMENT TO TRY TO USE CASH. I WILL SAY THAT THAT'S NEVER BEEN THE INTENTION THAT WE USE ALL CASH FOR THIS AT LEAST FROM MY KNOWLEDGE AND SO SOME OF THIS IS CHANGING BUT I WANT TO MAKE SURE THAT COMMUNITY HEARS THERE'S $26 MILLION OF CASH AVAILABLE RIGHT NOW ABOVE AND BEYOND A $12 MILLION RESTRICTED ACCOUNT. THE TOWN COUNCIL CURRENTLY AND IN THE PAST HAVE MADE SOME VERY GOOD DECISIONS WITH WITH OUR FUNDS AND THAT'S WHERE WE RELY ON SOME OF THE EXPERTS ON THE ROAD AND FRANNY AS WELL SO ALFRED IS THERE ANY REASON TO BE LOOKING INTO THE FUTURE ABOUT POTENTIAL FEMA REIMBURSEMENTS EITHER BECAUSE 
          [01:55:07]
OF RISING DISASTERS OF VARIOUS KINDS AROUND THE COUNTRY OR POLITICAL REASONS IF YES, ABSOLUTELY. YOU KNOW, UNTIL THE MONEY IS IN OUR ACCOUNT I'M NOT GOING TO COUNT ON IT. HOWEVER WE HAVE A TIME LINE WE HAVE AN AGREEMENT WITH FEMA. 
          SO THIS IS AN EXPENDITURE WHERE WE ARE SIMPLY ANTICIPATING REIMBURSEMENT. 
          WE WE'VE WORKED WITH THEM ON WHAT IS REIMBURSABLE WHAT ISN'T THERE'S AN AGREEMENT IN PLACE A TIME LIMIT IN PLACE. SO I FEEL CONFIDENT IT'S A MATTER OF SPENDING IT PROPERLY MAKING THE PROPER REQUISITIONS FOR FUND DISTRIBUTION PROPERLY AND TIMING TIMING OF THE ESSENCE RIGHT NOW. BUT THIS IS A LITTLE DIFFERENT THAN THE OF WE JUST HAD A STORM LAST WEEK HOPEFULLY FEMA PAYS US BECAUSE THIS IS SEPARATE THAN THAN THAT TYPE OF EVENT AND TYPE OF REIMBURSEMENT. WE'RE ALREADY PAST THAT. SO THERE'S ALWAYS A RISK THOUGH 
          [4. Public Comment - Non Agenda Items]
. ALL RIGHT. AND WE HAVEN'T SIGNED UP TO SPEAK ON THIS. WE DO OUR GOT ONE ON THIS ITEM AND THEN TWO NON AGENDAS AND REMEMBER WHEN YOU'RE CALLED UP TO STATE YOUR NAME ADDRESS YOU GOT 3 MINUTES IF THERE'S A QUORUM SO WE HAVE AMBER KOON FIRST OKAY NOW WE HAVE BASICALLY SIGNED UP MY MEMBER KIN MAN SEA TURTLE CONTROL I'LL BE PARTICIPATING I'VE PARTICIPATED IN SEVERAL BEACH RENOURISHMENT THREE TO BE EXACT AND I DO WANT TO SAY THANK YOU TO MARK ORLANDO FOR INCREASING THE BEACH OPERATIONS PROJECT. I APPRECIATE ALEX'S COMMENT ABOUT IT'S NOT JUST THE SAND. 
          YOU KNOW THERE ARE THERE'S A PROGRAM CALLED SEA TURTLE PATROL THAT'S BEEN THERE FOR 30 YEARS. IT STILL OPERATES OUT OF A TENT IN A PARKING LOT AND I'VE SPOKEN TO YOU GUYS ABOUT THAT. I'VE ALSO SPOKEN TO YOU GUYS REUSABLE WATER BOTTLES WHICH I WILL BRING AT THE NEXT TOWN COUNCIL MEETING TO GIVE TO YOU . 
          SO I JUST I JUST AM APPRECIATIVE THE TOWN AND WHAT THEY DO IT'S NOT A QUESTION OF WHETHER WE'RE GOING TO REVERSE THE BEACH OR NOT. IT'S WHEN AND YOU KNOW, THE 2017 RENOURISHMENT WAS NOT PLANNED. IT WAS A 2016 RENOURISHMENT FOR MATTHEW. THEY HAD A BACK UP AND PUNT AND GO BACK BUT 2017 WAS MATTHEW PLUS IRMA EQUALS EMERGENCY RENOURISHMENT AND SEA PINES AND THAT LASTED FOR THREE MONTHS. 
          I DIDN'T GET A LOT OF FEEDBACK RESIDENTS AND PEOPLE ON THE BEACH ABOUT INCONVENIENCES EVEN THOUGH YOU'VE GOT LARGE PIPES AND YOU KNOW, BULLDOZERS OCCASIONALLY SITUATED THEY ARE THE BULLDOZERS AT LEAST ARE CONFINED TO YOUR CONSTRUCTION AREA. 
          IT'S NOT THE WHOLE BEACH AND THIS TIME WE AREN'T EVEN IN MAIN SECTION OF TOURIST BEACH AT THE TIME WE ARE DOING YOU KNOW, THE TOURIST SEASON. SO YOU KNOW SEA TURTLES WE MOVE THE NEST, WE MOVE OVER 50% OF THEM ANYWAY AND SO WE'LL BE MOVING A OF THOSE AND I CONGRATULATE YOU GUYS FOR GETTING A PERMIT THAT. THE DOG ONLY WAS RESTRICTED AND MITCHELL BILL BECAUSE THEY WANTED ALL OF PORT OIL PLANTATION I DON'T KNOW HOW YOU DID IT BUT THAT WAS IMPRESSIVE SO I KNEW THEY WERE GOING TO DO IT THERE WAS INEVITABLE. 
          IT'S BEEN GOING ON FOR YEARS AND SUDDENLY WE JUST GET A PIECE OF STRETCH OF MITCHELL WELL THAT'S ON AN ISLAND THAT ACTUALLY WASN'T THERE BEFORE IT JUST KIND OF APPEARED. 
          SO YOU KNOW, WHETHER IT STAYS OR NOT IS TO BE DETERMINED. AND I HAVE A QUESTION FOR CHRIS. IF WE PUT GROINS IN A DOLPHIN HEAD, WILL IT KEEP THE SAND THERE? LIKE IS THERE A POTENTIAL THAT THE NEXT RENOURISHMENT WILL NOT INCLUDE DOLPHIN HEAD PINE ISLAND AND IT'S LET UP AFTER WE'RE DONE RIGHT? OKAY. I'LL FEEL BETTER. THANK YOU GUYS. 
          I SAID READY FOR THE NON AGENDA? YES NOT AGENDA ITEMS NOW D ANTHONY . OH GOOD AFTERNOON FOR THE RECORD MY NAME IS D ANTHONY I LIVE AT NINE WALKING OR STREET I WOULD LIKE TO COMMEND PUBLIC SAFETY COMMITTEE AS WELL AS THE CDC ON THEIR LAST MEETING AND ESPECIALLY ON THE PUBLIC SAFETY COMMITTEE DIALOG CONVERSATIONS AMONG EACH OTHER AND CONSTITUENTS WERE BEING HAD. THIS LEADS ME TO A QUESTION WHAT IS THE PROTOCOL PROCESS FOR TOWN COUNCIL MEETINGS? DO TOWN COUNCIL MEMBERS HAVE AN ALLOTTED TIME TO SPEAK? I FIND IT VERY UNCOMFORTABLE THAT ONE COUNCIL MEMBER ONE 
          [02:00:03]
COUNCIL MEMBERS 18 MINUTES OF SPEAKING WAS CALLED BY ANOTHER COUNCIL MEMBER. 
          I WOULD HOPE THAT ALL COUNCIL MEMBERS ARE DISCUSSING AND ASKING QUESTIONS ABOUT THE ISSUES. I BELIEVE IT'S MORE IMPORTANT TO BE ENGAGED AND LISTENING TO THE CONSTITUENTS RATHER THAN TIMING OTHERNTATION. THANK YOU. 
          THANK YOU. ASHLEY PHILLIPS. GOOD AFTERNOON. 
          ASHLEY PHILLIPS. INDIGO RUN. KIND OF WHAT WE JUST TALKED ABOUT. I WANTED TO SPEAK ABOUT AN OBSERVATION I MADE AT THE LAST TOWN COUNCIL MEETING. ONE MEMBER REALLY THE NAIL ON THE HEAD WHEN HE ASKED COULD THE COUNCIL HAVE A CONVERSATION IN AN OPEN DIALOG REGARDING A SPECIFIC TOPIC WITH COUNCIL MEMBERS? THE ANSWER WAS NO. BY ALL APPEARANCES THE COUNCIL SEEMS DYSFUNCTIONAL AND HOSTILE TOWARDS ONE ANOTHER. NO WONDER YOU GUYS CAN'T GET ANYTHING ACCOMPLISHED. I WOULD CHALLENGE EACH OF YOU TO ASK YOURSELF AM I WORKING TO THE BEST OF MY ABILITY FOR ALL THE PEOPLE OF HILTON HEAD? WE EXPECT MORE FROM OUR ELECTED REPRESENTATIVES THAN WHAT WE ARE WITNESSING PLEASE DO BETTER. 
          THANK YOU. THANK YOU. THAT'S ALL. 
          OKAY. SEEING NONE. WE'LL GO TO ADJOURNMENT. 
          THANK YOU ALL VERY MUCH FOR A GREAT PRESENTATION. CALM RETURN
* This transcript was compiled from uncorrected Closed Captioning.