NEWBERRY COUNTY COUNCIL

MINUTES

The Newberry County Council met on Wednesday, May 17, 2006, at 7:00 p.m. in Council Chambers at the Courthouse Annex, 1309 College Street, Newberry, SC, for a regularly scheduled meeting.

Present were: Mike Hawkins, Chairman

William D. Waldrop, Vice-Chairman

John E. Caldwell, Councilman

Henry B. Summer, Councilman

John David Dawkins, Councilman

Andy Morris, Councilman

Edgar Baker, Councilman

J.E. Klugh, Acting County Administrator

Gary T. Pope, County Attorney

Susan C. Fellers, Clerk to Council

Media: Heather Hawkins, WKDK

Cindy Pitts, Newberry Observer

Notice of the meeting was duly advertised as required by law.

Mr. Hawkins called the meeting to order and determined a quorum to be present.

Mr. Dawkins had the invocation followed by the Pledge of Allegiance.

Adoption of Consent Agenda.

Mr. Baker moved to adopt the consent agenda; second by Mr. Morris. Vote was unanimous.

Additions, Deletions and Adoption of Agenda.

The following changes were requested:

1. Move Agenda Item #14 to right after Public Comments (Agenda Item #.5).

2. Eliminate Agenda Items #11 and #12.

3. Postpone Agenda Item #1 to the next meeting.

4. Postpone public hearings on Agenda Items #3 and #4.

There being no further additions or deletions to the agenda, Mr. Waldrop moved to adopt the agenda as amended; second by Mr. Morris. Vote was unanimous.

Public Comments.

Harry Greisser, 31 Summerset Bay Drive, Chappells, SC, representing the Summerset/Windmill Property Owners Association, acknowledged the support of their representative, Bill Waldrop, with a letter of appreciation from their Association. (Copy attached to minutes).

Les Hipp, 1817 Harrington Street, Newberry, SC, was neither in favor of, nor opposed to, a new library. His goal was to make sure the old library building is not sold but to keep it in the public. He felt the old library would be perfect for a museum and visitor’s center. Mr. Hipp’s next step will be to form a committee of business leaders and historical benefactors for the purpose of researching the different uses and funding for the old building. Petitions against selling the old library building have been placed throughout Newberry County.

.5 Report from Emergency Services Board on Capital Sales Tax Projects.

John David Dawkins, Chairman of the Emergency Services Board, reported the emergency services projects are $1,073,000 short of funding. County Council at its meeting of May 3, 2006 voted to delay the building of the Public Works complex and use that $750,000 and up to $250,000 from timber sales to go toward the emergency services projects. Council also requested that the Emergency Services Board study the problem and come back with a recommendation. Mr. Dawkins met with the Rescue Squads, the Fire Departments, the Town of Prosperity, and the CTC looking for ways to cut costs and pick up additional funding. A total of $210,000 has now been cut off the cost of all emergency services buildings. Additional funding for the projects from the County Transportation Commission (CTC), Board of Rural Fire Control budget, donations from Prosperity Rescue Squad and Prosperity Fire Department, and the commitment and donation from the Town of Prosperity for $23,330 toward the building of the Prosperity Fire Department. This leaves a shortfall of $665,038, leaving $84,962 of available funds in the Public Works complex budget.

Lake Murray Public Safety Complex is already under construction. Newberry Rescue Squad, Consolidated and Prosperity have yet to be bid out. If those bids come in less than the proposed cost, those additional funds will automatically go back to the Public Works complex.

The Emergency Services Board met last night with 8 of the 9 members present, and it was a unanimous decision to present this as the recommendation.

Mr. Dawkins moved to accept the recommendation of the Emergency Services Board; second by Mr. Morris.

Mr. Baker voted against this last time because the people told us where to put the sales tax money and would have to vote against it again for the same reason.

Mr. Hawkins stated that if this were going to eliminate a project from one of the towns or entities out in the county, he would not vote for it either. The Public Works building is a county project, and Council is within its bounds to postpone it to see if we have the funds and apply those funds to these other buildings. For that reason, he will vote for it.

Mr. Baker asked if the projects come in above what is guessed at and we have to totally do away with Public Works, what are we going to take next.

Mr. Hawkins didn’t have an answer. If these bids come in above these figures, it will have to come to Council to vote on.

Mr. Baker said the motion at the last meeting was to start at the bottom, which was Public Works, to take the money.

Mr. Dawkins stated the motion passed by Council at the May 3, 2006 meeting was to use up to $750,000 and if needed, use an additional $250,000 from timber sales. The proposal tonight would not even use the $750,000 much less the $250,000 in timber sales.

Mr. Hawkins stated every project that has been bid out has come in higher than we thought and it is a concern.

Mr. Baker couldn’t see using the anticipated income to do anything. The income should be here. Mr. Hawkins advised the bond was issued so we would have the money. Mr. Pope advised that the ordinance set forth if it became unfeasible economically to complete all the projects, that the bottom one would be dropped and it would go to the others.

Mr. Hawkins called for the question. Voting for the motion: Councilmen Hawkins, Waldrop, Summer, Dawkins and Morris. Voting against the motion: Councilmen Caldwell and Baker. Motion passed by majority vote.

1. An Ordinance enacting the Newberry County, South Carolina Code of Ordinances, revising, amending, restating, codifying and compiling certain existing general ordinances of the County of Newberry dealing with subjects embraced in such Code of Ordinances, and repealing certain ordinances inconsistent with the matters codified in the Code of Ordinances.

Postponed until the June 7 Council meeting.

2. An Ordinance to approve granting a 20 foot sewer line easement to the Newberry County Water and Sewer Authority across the Newberry County Industrial Park property.

Mr. Hawkins called for the public hearing. There being no comments from the public, Mr. Hawkins declared the public hearing closed.

Mr. Morris moved for third reading; second by Mr. Baker. Vote was unanimous.

3. An Ordinance to amend the Official Zoning Map established pursuant to Zoning Ordinance No. 12-24-01 so as to rezone two (2) acres designated as a portion of TMS Parcel No. 450-13 from Rural (R-2) to General Commercial (GC).

Mr. Waldrop moved for second reading; second by Mr. Baker. Vote was unanimous.

4. An Ordinance to amend the Official Zoning Map established pursuant to Zoning Ordinance No. 12-24-01 so as to rezone two (1) acres designated as a portion of TMS Parcel No. 422-17 from Rural (R-2) to General Commercial (GC).

Mr. Dawkins moved for second reading; second by Mr. Waldrop. Vote was unanimous.

5. An Ordinance to amend the Code of Ordinances of Newberry County, South Carolina, by providing for the assessment of aircraft subject to property tax in Newberry County, South Carolina; to establish the assessment ratio of the fair market ratio of such aircraft; to provide for a public hearing; and to provide for other matters relating thereto.

Mr. Hawkins called for the public hearing. There being no comments from the public, Mr. Hawkins declared the public hearing closed.

Mr. Baker moved for second reading; second by Mr. Waldrop.

This will lower the assessment ratio from 10.5% to 4%. The idea is to encourage people to base aircraft here, which would encourage more use of the airport.

Mr. Hawkins called for the question. Vote for the motion was unanimous.

6. An Ordinance adopting and approving the terms of, and authorizing the Chairman to execute and deliver, the attached instrument entitled “Agreement for a Comprehensive Joint County Business and Industrial Park in Greenwood and Newberry Counties” to be entered into between Greenwood County and Newberry County, in order to create a Joint County Industrial and Business Park pursuant to Article VIII, Section 13, of the South Carolina Constitution and Sections 4-1-170, et. seq., Code of Laws of South Carolina, 1976, as amended, which will contain properties geographically located within the boundaries of Greenwood and Newberry Counties, as specified in the Agreement.

Mr. Baker moved for second reading; second by Mr. Waldrop. Vote was unanimous.

7. An Ordinance to amend the Budget Ordinance for the 2005-2006 fiscal year, Ordinance No. 06-18-05, so as to incorporate certain supplemental revenues and appropriations into the budget for the current fiscal year.

Mr. Hawkins advised this was $600,000 to be used toward the 773 Industrial Park property.

Mr. Morris moved for first reading; second by Mr. Dawkins. Vote was unanimous.

8. An Ordinance to amend the text of the Newberry County Zoning Ordinance No. 12-24-01 so as to amend Article 9 to further regulate the size of church signs.

Mr. Hawkins advised if adopted this amendment would turn churches loose to do whatever they want with signs as long as they were not for commercial purposes. This would not apply in incorporated areas if a town had a sign ordinance.

Mr. Morris moved for first reading; second by Mr. Baker. Vote was unanimous.

9. Committee Reports.

No reports.

10. Appointments.

The following nominations were made:

Ø Mr. Baker nominated Tommy Amick to serve on the Airport Commission.

Ø Mr. Dawkins nominated Harold Ruff for reappointment to the Fairgrounds Commission.

There being no further nominations, Mr. Caldwell moved to accept the nominations; second by Mr. Summer. Vote was unanimous.

11. Report on Newberry County Soil and Water Conservation District Building.

Postponed to next meeting.

12. Report on costs of maintaining Agriculture Building.

Postponed to next meeting.

13. Report on Reassessment.

Mr. Klugh contacted Senator Ronnie Cromer to learn the status of the bill he introduced which would postpone reassessment for Newberry and other counties. In order for this bill to have been considered by the House, it had to have passed the Senate no later than May 1. There were at least three Senators who opposed his bill, and who blocked the passage. The stated reason for their opposition was that delaying reassessment was lowering the amount of money the schools received from the State Department of Education, which is apparently tied into the school districts’ assessed value.

The memo from Representative Walt McLeod dated March 22, 2006 has been examined, and the memo Gary Pope prepared in response to it. In Gary Pope’s opinion, under the 2005 legislation, the County is only entitled to one additional extension beyond the additional year allowed by Section 12-43-217(B), and that additional year’s extension was taken last year. In his opinion, at this point there is no legal way that the County can postpone the implementation of reassessment for this year.

Since there is apparently no hope of legislative action that would help the County postpone reassessment, and in view of the statutory mandate that it be implemented, there is no realistic way the reassessment can be postponed for another year. As such, we have to be prepared to either accept the legal consequences of not implementing the reassessment program at a minimum, which is 30% of the State Aid to Subdivisions. The County receives about $1,864,000 in State shared revenue so the loss of 30% would be about $560,000.

In earlier meetings this year, a sentiment was expressed that new notices should be sent out, and the time for appeal of the reassessment reopened as if the reassessment notices had never been sent out last year. In reviewing the records, it appears that Council extended the time for appealing the reassessments last year for two weeks, from May 27 to June 10, and that it was not until the time for appeals had almost expired that the General Assembly took action in the waning hours of the Session to allow counties to extend implementation of reassessment for another year. The point of all of this is that everyone who wanted to appeal their assessment had ample time to do so last year before Council considered taking action to extend the implementation of reassessment for another year. Thus, it appears that no taxpayer will be prejudiced if new notices are not sent out this year.

On the other hand, the County is faced with the practical problem of ensuring that the County has an adequate cash flow on which to operate, particularly in October and November, when tax collections may be at their lowest, if tax notices are not sent out in a timely manner. If the County cannot get the tax notices issued in late September or early October, it is pretty much a given that the County will have to borrow money in anticipation of taxes, to have enough cash flow to pay its ordinary bills. Mr. Klugh recommended that the County make every effort to avoid such borrowing, unless it is absolutely necessary.

Mr. Klugh met with Susie Berry and Gary Pope on Tuesday morning to get their input into the situation. Gary Pope’s legal opinion is as previously stated. In discussing with Susie Berry what the problems would be from a practical point of view if we implemented reassessment or if we did not implement it, the situation is as follows:

1. If we do not implement reassessment, there are no practical problems, just legal ones.

2. If we implement reassessment and decide to send out new notices, it is unlikely that the new reassessment notices can be prepared and mailed before mid to late July, and the initial appeals period is 90 days from the date of mailing. If the reassessment notices are mailed on July 15, the time for all appeals will not end until October 15. It will take approximately 45 days from that point to prepare and mail tax notices. This means tax notices will not be mailed until approximately December 1. There may also be legal issues with regard to those who resolved their appeals last year and who are sent new notices. Mr. Klugh said the County Auditor concurred with the fact that if new notices are sent out and we have the appeal time, it would be difficult to get the tax notices out before December 1 or later.

3. If we send out tax notices based on the reassessment notices mailed out last year, and process as many appeals as we can from those already filed, we can meet the deadline for getting the tax notices out on time, and getting the tax money coming into the treasury on schedule. As to those appeals which we are not able to resolve, those will have to be billed at 80% of the assessed value, and resolved after the tax notices are sent. Once the appeals are resolved, then the property owners will be billed for the difference, if any, between the amount of the original bill and the amount due based on the value established after the appeal is heard, or sent a refund, if their assessment is reduced.

It appears that the third option is the most viable option. It is the quickest and most expeditious, and the most likely to result in tax notices being sent in a timely manner, and the County’s not having to borrow money to operate on. It ensures that the property owners who appealed on a timely basis last year will receive the protection offered them under the state law. Any aggrieved property owners who did not appeal on a timely basis last year would be required to pay taxes this year based on the 2004 values, but they will be able to appeal those values during January and February 2007 for next year’s taxes.

Because the last official Council action directed not to implement reassessment, and in light of the current situation, Mr. Klugh requested direction from Council as to what course the County employees should be directed to take, and suggest that the Auditor and Treasurer take, with regard to the implementation of reassessment this year.

Mr. Hawkins voted against postponing the implementation of reassessment because new construction according to state law has to go on the books at 1999 value. There is a lot of new construction in the county and a lot of those people are not paying their fair share, which means somebody is paying too much.

Mr. Summer moved to follow Mr. Klugh’s recommendation on the reassessment (option 3); second by Mr. Waldrop. Vote was unanimous.

Executive Session.

Mr. Morris moved to go into Executive Session to receive legal advice concerning the CPI notice and legal advice relating to trespassing on county property; second by Mr. Summer. Vote was unanimous.

Mr. Morris requested a briefing before going into Executive Session from Sheriff Foster on the loss of the E911 service today.

Sheriff Foster advised that at 10:00 a.m. today, they had no phone service on either the administrative lines or the 911 system at the Sheriff’s Office. Within 8 minutes from the time it was noticed, they were set up at an alternate public safety answering point at the Newberry City Fire Department. During the replacement of a pole on Wilson Road, the crew cut a fiber optic line.

Sheriff Foster reported on the break-in over the weekend at the Courthouse Annex. The City Police are investigating, and they have a number of items of forensic evidence.

Nancy Owen, County Auditor, handed out the monthly financial reports on behalf of Judy Floyd, County Treasurer. (Copy not provided for permanent record)

Ms. Owen also requested permission to attend Executive Session during discussion of the CPI notice in case Council had any questions so she could provide the answers rather than the County Attorney.

County Council by consensus agreed to have a work session on June 7, 2006, at 1:00 p.m.

[EXECUTIVE SESSION 8:04 P.M. – 8:54 P.M.]

Mr. Morris moved to return to open session; second by Mr. Baker. Vote was unanimous. [Mr. Dawkins was not present when Council voted.]

Mr. Hawkins reported the following:

1. Council was briefed on the CPI and the legal implications.

2. Mr. Klugh will contact the City of Newberry to discuss the other legal matter.

Comments from County Administrator.

Mr. Klugh advised that the proposed logging plan had been received for Lynch’s Woods.

Comments from Council Members.

Mr. Caldwell advised that elections for officers of NACo would be held the same week and month of the State Association.

There being no further business, Mr. Baker moved to adjourn; second by Mr. Morris. Vote was unanimous.

Meeting adjourned at 8:57 p.m.

NEWBERRY COUNTY COUNCIL

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Mike Hawkins, Chairman

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Susan C. Fellers, Clerk to Council