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South Carolina's Riverfront
MINUTES OF FEBRUARY 5, 2018
Robert A. Pettit, Mayor
James M. Adams, Jr., Councilmember
J. Robert Brooks, Councilmember
Pat C. Carpenter, Councilmember
Fletcher L. Dickert, Councilmember
Kenneth J. McDowell, Councilmember
David W. McGhee, Councilmember
ORDER OF BUSINESS
REGULAR MEETING
The regular meeting of February 5, 2018, having been duly publicized, was called to order by
Mayor Pettit at 7:00 p.m. and adjourned at 7:40 p.m. Per Section 30-4-80(e) notice of the
meeting by email was sent out to the current maintained "Agenda Mailout" list consisting of
news media outlets and individuals or companies requesting notification. Notice of the meeting
was also posted on the outside doors of the Municipal Center, the main bulletin board of the
Municipal Center located on the first floor, and the City of North Augusta website.
Mayor Pettit rendered the invocation and led in the Pledge of Allegiance.
Members present were Mayor Pettit and Councilmembers Adams, Brooks, Dickert, McGhee,
and McDowell. Councilmember Carpenter was absent because she was sick.
Also in attendance were B. Todd Glover, City Administrator; Kelly F. Zier, City Attorney;
Cammie T. Hayes, Director of Finance; Richard L. Meyer, Director of Parks, Recreation, &
Tourism; John C. Thomas, Director of Public Safety; Thomas C. Zeaser, Director of Engineering
Minutes of Regular Meeting of 02/05/18
and Public Works; James E. Sutton, Director of Public Services; and Donna B. Young, City
Clerk.
The minutes of the regular and study session meetings of December 18, 2017; the special called
meeting and study session minutes of January 2, 2018; and the special called meeting and study
session minutes of January 16, 2018 were approved by general consent.
ITEM 1. ZONING: Ordinance No. 2018-01 — An Ordinance to Amend the Zoning
Map of the City Of North Augusta, South Carolina by
Rezoning ±16.06 Acres of Land Owned by T.R. Reddy, 1-20
Investors, LLC and Located along W. Martintown Road at
Frontage Road, Aiken County Tax Parcel # 001-20-02-006
from PD, Planned Development to R-5, Mixed Residential -
Ordinance, Third and Final Reading
On motion by Councilmember Brooks, second by Councilmember Dickert,
Council passed an ordinance on third and final reading to amend the Zoning Map
of the City of North Augusta, South Carolina by rezoning ±16.06 acres of land
owned by T. R. Reddy, 1-20 Investors, LLC and located along W. Martintown
Road Frontage Road, and identified as Aiken County Tax Parcel #001-20-02-006,
from PD, Planned Development to R-5, Mixed Residential.
Voting for the ordinance were: Mayor Pettit and Councilmembers Adams,
Brooks, Dickert, and McGhee. Voting against the ordinance on third and final
reading was Councilmember McDowell. The ordinance passed with a 5/1 vote.
Please see the minutes of the special called meeting of January 16, 2018 for the
ordinance text. Please note that all complete exhibits and attachments are
available in the Office of the City Clerk.
ITEM 2. PUBLIC SAFETY: Resolution No. 2018-04 — A Resolution to Authorize the
Department of Public Safety to Apply for a State of South Carolinal
Department of Public Safety Highway Safety Grant
On motion by Councilmember McDowell, second by Councilmember McGhee,
Council unanimously passed a resolution authorizing the Department of Public
Safety to apply for a State of South Carolina Department of Public Safety
Highway Safety Grant.
The resolution text is as follows: Please note that all complete exhibits and
attachments are available in the Office of the City Clerk.
RESOLUTION NO. 2018-04
TO AUTHORIZE THE DEPARTMENT OF PUBLIC SAFETY
TO APPLY FOR A STATE OF SOUTH CAROLINA, DEPARTMENT
OF PUBLIC SAFETY, HIGHWAY SAFETY GRANT
Minutes of Regular Meeting of 02/05/18
WHEREAS, the City has been made aware of a Grant being offered by the South
Carolina Department of Public Safety that would fund the hiring of two (2) dedicated DUI
Enforcement Officers by the City; and,
WHEREAS, such Grant will provide the cost and expenses necessary to employ,
equip and compensate the two (2) officers for a period of one (1) year; and,
WHEREAS, there is no requirement for any matching funds by the City related to
this Grant; and,
WHEREAS, the City has received and reviewed the Grant Application T19030
and determines that applying for this Grant is in the best interest of the City and such Grant
should be accepted by the City if awarded.
NOW THEREFORE, BE IT RESOLVED by the Mayor and City Council of the
City of North Augusta, South Carolina, in meeting duly assembled and by the authority thereof,
that:
1. The City authorizes the Department of Public Safety to submit Highway Safety
Grant Application #T19030 for the Grant period of 10/01/2018-9/30/2019, such
project titled: DUI Enforcement Team.
2. That the Director of Public Safety is specifically authorized to execute any and all
documents on behalf of the City in order to apply for and accept such Grant if
awarded.
3. That the Grant funds, if awarded, shall be utilized in accordance with the
requirements of said Grant and specifically for the hiring, training and equipping of
two (2) DUI Enforcement Officers.
DONE, RATIFIED AND ADOPTED BY THE MAYOR AND CITY COUNCIL
OF THE CITY OF NORTH AUGUSTA, SOUTH CAROLINA, ON THIS 5th DAY OF
FEBRUARY, 2018.
ITEM 3. CITIZEN COMMENTS: Speaker Forms Submitted for February 5, 2018
Council Meeting
Please see the attached Speaker Forms completed by citizens for the February 5,
2018 Council meeting.
ITEM 4. CITIZEN COMMENTS: Mayor Pettit Response to Questions from
December 18, 2018 Council Meeting by Fred Ilardi
Mayor Pettit responded to Fred Ilardi's questions from the December 18, 2017
Council meeting, as well as other questions asked by Mr. Ilardi. Please see the
attached letters which contain Mayor Pettit's responses.
Minutes of Regular Meeting of 02/05/18
There being no further business, Council adjourned at 7:40 p.m.
APPRO 1 j HIS `7 DAY OF Respectfully submitted,
, 201
Donna B. Young
Robert A. Pettit, ayor
SPEAKER FORM
NAME:
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ADDRESS: 1 �� C''ti' .L':�1 �:ir� •` l2L(.
TELEPHONE: c 3 J 1.
PLEASE PROVIDE A ONE SENTENCE SUMMARY OF YOUR COMMENT TO COUNCIL.
(For example: I support the resolution because ... )
THIS FORM WILL BE ATTACHED TO THE MINUTES OF THE CITY COUNCIL MEETING.
AGENDA ITEM/TOPIC: Cr 11 I ` Y't' (Cc—=1 ! cAct ( Z ) l 3 l7_1-
SUMMARY: V I.)c_._.i cv`,.?t t,L,,/" V [-
4
8
INTERCHANGE BETWEEN MAYOR BOB PETTIT AND MR. FRED ILARDI AT THE NORTH
AUGUSTA CITY COUNCIL MEETING OF 12/18/2017
In the video of the 12/18/2017 City Council meeting,around the 19:45 time mark,Mr.
Ilardi,at the stand for the public, directed the following question to Mayor Pettit.
"Has all the financing for the hotel been secured? Has the bank put up all the money for the
hotel?"
Mayor Pettit's answer: "That's not my question to answer."
Just after the Mayor's answer, Mr. Ilardi began to pose another question.
The Mayor interrupted."If you have any more, Mr. Ilardi,we're getting near the end of your
time. I'd be more than happy to have them in writing and give you an answer just like I did
at the last one. I don't see any problem in this."
Mr. Ilardi asked,"Isn't this a forum where citizens can ask questions?"
Mayor Pettit's reply: "It's a forum for the citizens to make comments. That's specifically
stated. No,it doesn't say anything about questions. You provide your questions in writing,
and I have time to fully research them and provide you answers because that's my policy.
I've deviated from my policy because you're interested and you ask some questions and
when I can answer them quickly, I do it."
Mr.Ilardi then stated: "If I remember correctly,when Mayor Lark Jones was here you
could get up and ask a lot of questions. Has that policy changed?"
Mayor Pettit's reply. "Yes."
FROM THE SC CODE OF LAW-TITLE 5 -MUNICIPAL CORPORATIONS
CHAPTER 7 -General Structure,Organization,Powers.Duties. Functions and
Responsibilities of All Municipalities
SECTION 5-7-160. Powers of municipality vested in council; quorum.
All powers of the municipality are vested in the council,except as otherwise
provided by law,and the council shall provide for the exercise thereof and for
the performance of all duties and obligations imposed on the municipality by
law.A majority of the total membership of the council shall constitute a
quorum for the purpose of transacting council business.
FROM CHAPTER 9- MAYOR-COUNCIL FORM OF GOVERNMENT
SECTION 5-9-30. Responsibilities and powers of mayor.
2
The mayor shall be the chief administrative officer of the municipality. He shall be
responsible to the council for the administration of all city affairs placed in his charge
by or under Chapters 1 through 17. He shall have the following powers and duties:
(1) to appoint and, when he deems it necessary for the good of the municipality,
suspend or remove all municipal employees and appointive administrative officers
provided for by or under Chapters 1 through 17, except as otherwise provided by law, or
personnel rules adopted pursuant to Chapters 1 through 17. He may authorize any
administrative officer who is subject to his direction and supervision to exercise these
powers with respect to subordinates in that officer's department,office or agency;
(2) to direct and supervise the administration of all departments, offices and agencies
of the municipality except as otherwise provided by Chapters 1 through 17;
(3)to preside at meetings of the council and vote as other councilmen;
(4) to act to insure that all laws, provisions of Chapters 1 through 17 and ordinances of
the council, subject to enforcement by him or by officers subject to his direction and
supervision,are faithfully executed;
(5)to prepare and submit the annual budget and capital program to the council;
(6) to submit to the council and make available to the public a complete report on the
finances and administrative activities of the municipality as of the end of each fiscal year;
and
(7) to make such other reports as the council may require concerning the operations of
municipal departments,offices and agencies subject to his direction and supervision.
HISTORY: 1962 Code Section 47-62; 1975 (59) 692.
FROM THE CODE OF ORDINANCES OF THE CITY OF NORTH AUGUSTA
Sec. 2-28.- Mayor— Presiding officer and head of government.
The mayor shall preside at all meetings of the council and shall be the recognized head of the municipal
government.
(Code 1970,§2-79; Ord.of 10-1-74)
Sec. 2-29.-Same- Powers and duties generally.
The mayor shall have the following powers and duties:
(1)To appoint and, when deemed necessary for the good of the municipality,suspend or remove
all municipal employees and appointed administrative officers provided for by or under this Code,except
as otherwise provided by law,or personnel rules adopted pursuant to this Code.The mayor may
authorize an administrative officer who is subject to the mayor's direction and supervision to
exercise these powers with respective subordinates in that officer's department, office or agency;
(2) To direct and supervise the administration of all departments, officers and agencies of the
municipality,except as otherwise provided by this Code;
(3) To preside at meetings of the council and vote as other council members;
3
(4) To act to ensure that all laws,provisions of this Code,and ordinances of the council,subject to
enforcement by the mayor or by officers subject to the mayor's direction and supervision, are
faithfully executed;
(5)To prepare and submit the annual budget and capital program to the council;
North Augusta,South Carolina,Code of Ordinances
(6) To submit to the council and make available to the public a complete report on
the finances and administrative activities of the municipality as of the end of each fiscal year; and
(7) To make such other reports as the council may require concerning the operations of municipal
departments,offices and agencies subject to the mayor's direction and supervision.
(8)To sign all deeds to real property sold by the city, including lots in the city cemeteries,and
any other obligations issued or authorized by the council.
Cross-reference—See also§2-179
(9) To execute all formal contracts on behalf of the city,which shall be attested by the city clerk after an
approval resolution of the council.
(10) To have such powers and perform such duties, in addition to those provided for in this
section, as may be conferred and imposed upon the mayor by the council or by the laws of the
state.
(Code 1970,§§2-80-2-84; Ord.of 10-1-74; Ord. of 1-18-77)
State law reference—Responsibilities and powers of mayor, Code 1976,§ 5-9-30.
Sec.2-32.-Duties of council members generally.
The council members shall attend all regular and special meetings of the council except when excused
from so doing by the council itself,and hold themselves at all times in readiness to perform any duty
entrusted to them by the council.The council members shall serve upon such committees as may from
time to time be designated for them by the mayor.The council members shall perform the duties thus
imposed upon them with dispatch and to the best of their abilities.
MENTION OF THE WORDS"POLICY"OR"POLICIES" IN SC CODE ANN.TITLE 5.
CHAPTERS 1 THROUGH 17
SECTION 5-1-22.Public policy for incorporation of publicly-owned property established.
The General Assembly finds and declares the following to be the public policy of the State
of South Carolina...
SECTION 5-11-30. Legislative and administrative powers of municipality vested in
municipal council. (THIS IS FOR COUNCIL FORM OF GOVERNMENT!!)
All legislative and administrative powers of the municipality and the determination of all
matters of policy shall be vested in the municipal council.
4
SECTION 5-13-30. Powers and duties of municipal council. (FOR COUNCIL-MANAGER
FORM OF GOVERNMENT)
All legislative powers of the municipality and the determination of all matters of policy
shall be vested in the municipal council, each member, including the mayor, to have one
vote.Without limitation of the foregoing,the council shall...
Amendment 1 to the Constitution of the United States
Freedom of Religion.Speech.and the Press
Congress shall make no law respecting an establishment of religion or prohibiting the free
exercise thereof, or abridging the freedom of speech or of the press, or the right of the
people peaceably to assemble and to petition the government for a redress of grievances.
South Carolina Constitution-Article I-Declaration of Rights
SECTION 2. Religious freedom; freedom of speech; right of assembly and petition.
The General Assembly shall make no law respecting an establishment of religion or
prohibiting the free exercise thereof,or abridging the freedom of speech or of the press;
or the right of the people peaceably to assemble and to petition the government or any
department thereof for a redress of grievances.
"abridge"definition from Merriam-Webster:
transitive verb
1 :to shorten by omission of words without sacrifice of sense : condense
• abridge a novel
• an abridged dictionary
2 :to shorten in duration or extent
• Tess wished to abridge her visit as much as possible...—Thomas Hardy
3 formal :to reduce in scope : diminish
• attempts to abridge the right of free speech
4 archaic: deprive
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City of North Augusta
January 2, 2018
Mr. Fred Ilardi
346 Shoreline Drive
North Augusta, SC 29841
Dear Mr. Ilardi,
Reference: Your email of December 11, 2017
In the referenced email you asked the following:
"Can you explain how the representations in the IPRB prospectus indicating a 2017 TIF obligation
being provided to the issuer was met? Attached please find the prospectus, referencing the first
full paragraph of same."
I am pleased to respond. I will reference a number of documents to provide a full and complete
answer to your question.
The City issued its $43,412,000 Tax Increment Revenue Obligation, Series 2017 to the North
Augusta Public Facilities Corporation on May 16, 2017 to further secure its obligations under the
Installment Purchase and Use Agreement. As I believe you are aware, pages 23 and pages B-15-
16 of the final Official Statement (available at: https://emma.msrb.org/ER1055330-ER826604-
ER1227622.pdf.) prepared in connection with the Corporation's bond offering of its $69,450,000
North Augusta Public Facilities Corporation Installment Purchase Revenue Bonds (City of North
Augusta Project) Taxable Series 2017B, provide a full description of the TIF Obligation and how
it relates to the Installment Purchase and Use Agreement and the Corporation's bonds.
The full sets of closing documents pertaining to both the TIF Obligation and the Series 2017B
Installment Purchase Revenue Bonds include the approving, unqualified legal opinions of
nationally recognized bond counsel as to the TIF Obligation and the Series 2017B Installment
Purchase Revenue Bonds as to legality and enforceability. These opinions were accepted by Bank
of America Merrill Lynch, Wells Fargo (the purchasers of the 2017B IPRBs), and their counsel in
connection with the closing of the transactions. The documents are available and may be requested
from the City in accordance with Freedom of Information Act procedures.
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I am hopeful this explanation of the facts described in the IPRB official statement (prospectus) is
satisfactory. I also hope it provides assurance the City, with the assistance, advice and
recommendations of its legal advisors, has endeavored to take appropriate and required actions.
and has taken such actions in order to comply with the laws of the State of South Carolina.
Sincerely,
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Robert A. Pet it
Mayor
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City of North Augusta
January 2, 2018
Mr. Fred Ilardi
346 Shoreline Drive
North Augusta, SC 29841
Dear Mr. Ilardi:
On December 6,2017 I responded to a question you posed at the December 4,2017 North Augusta
City Council Meeting. Your question was "Does the City intend to issue TIF bonds to replace the
IPRB's? If so, when? If not, why not?" In that communication I indicated that the City has no plans
to issue TIF bonds and requested an analysis from you regarding the prudency of doing so in the
future should you suggest that path.
I wish to clarify that the City has already issued a TIF obligation to fully fund the projects described
in Ordinance 2013-19 and has no plans to issue a new TIF obligation or a refunding TIF obligation
in the foreseeable future. I also wish to provide some context for the information provided in my
letter. For context, I refer you to page 23 and pages 13-15-16 of the final Official Statement
(prospectus) prepared in connection with the IPRBs, for a full description of the TIF Obligation
and how it relates to the Installment Purchase and Use Agreement and the Corporation's bonds.
(Available at: https://emma.msrb.org/ER1055330-ER826604-FR 1227622.pdf.)
Because of the interrelated nature of the TIF obligation and the IPRBs, the City would not
refinance the outstanding TIF Obligation absent a refinancing of the Corporation's IPRBs. The
City and its financial advisor will be monitoring market conditions,and should such an opportunity
arise to refinance the project to obtain a lower interest rate, the Corporation and the City would in
all likelihood do so (I say in all likelihood as both the Corporation Board and City Council would
have to vote on the refinancing and I can't speak for them.). I should point out that pursuant to
standard bond market practices, the IPRB's that are supported by the TIF Obligation are not
prepayable for 10-years(not until November 1,2027). Furthermore, as stated in my previous letter,
the IPRBs were issued for purposes and are payable from sources that are greater in scope and size
than would otherwise he eligible under the TIF act and authorized pursuant to ordinance 2013-19
(which contemplated that no more than approximately 543 million of project costs, not counting
certain costs of issuance of the bond, would be supported by the TIF obligation). This means that
should the City and Corporation agree to retire the IPRBs with new bonds of the City, it would
likely require several issues of new bonds in addition to a standalone TIF obligation, each with
different security structures. Should revenues of the City and the bond market support this
approach, and should it prove a more cost effective structure, I assure you that the City would
consider this option. However, as pointed out in my December 6 letter, the bond issuance process
can be resource intensive, complex, and expensive. All things equal, there are economies of scale
and scope to be realized from consolidating debt issues to as few as possible.
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In conclusion, the City has no present plan issue TIF obligations to refinance the existing TIF
obligation or to replace the IPRBs. There are substantial costs associated with restructuring a
transaction such as the IPRBs and we are aware of no reason to do so at present. We will of course
be monitoring all of our options to ensure we are paying the lowest overall financing costs
available.
As offered previously, if you have developed information demonstrating a benefit to the City from
refunding the IPRBs or the TIF bonds, please forward it to me. Providing an Excel spreadsheet
with the financial analysis, accompanied with explanatory notes, is acceptable and preferred.
Should you wish to provide such an analysis,and after I,and the City's legal and financial advisors,
have the opportunity to review it, I recommend we meet to discuss it further.
Sincerely,
Robert A. Pettit
Mayor
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City of North Augusta
January 30, 2018
Mr. Fred Ilardi
346 Last Shoreline Drive,
North Augusta, SCJ9841
Dear Mr. Ilardi:
I have again reviewed the document you read at the recent Council meeting. During that
meeting I misspoke when I said the Comment Period was for statements not questions. What I
should have said is that it is a comment period, and any questions asked will be answered in
writing and the answer will be summarized at the next Council meeting, to the extent possible.
My policy is premised on the need to avoid providing an incorrect answer during the meeting.
My misstatement acknowledged above is an example of the reason for the policy.
Your document then listed five statements:
Number one asked for confirmation of information at my convenience. To the best of my
knowledge, most of the statement is correct. I am not familiar with what is meant by the
riverfront multi-use building.
Number two asked for an update on the hotel financing. The hotel is unique because it is
primarily a private investment with a public component. My observation that the hotel was
under construction was based on physical observation. The hotel financing is complete. I have
been formally advised financing is complete because construction of the conference facilities as
part of the hotel building is the public component funded by the City.
Number three was your personal observation that a status update had not been provided in the
time frame you desired after making a request for same. It also conveyed an assumption about
my personal thoughts.
Number Four asked for reassurance that all contracts and financing for the private
development are in place. The latest status on facilities in Riverside Village is provided on the
City website. After a long hiatus, I am again excited about baseball, and look forward to attend
baseball games just down the street from my home. I have my season tickets, and I hope you
also have yours. Please know and understand I am doing my best, along with many others, to
make sure the project succeeds. Is it experiencing delays and changes? Certainly. Were they
anticipated? From the beginning I wondered if everything included in the buildout could be
done simultaneously while the roads and utility services were being installed. Am |
disappointed construction of some of the facilities is delayed? Of course. I've learned more
about project development than I ever thought I would. From my perspective, I am confident
Riverside Village will be a great place to live, work, play and learn for people throughout the
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January 30, 2018
Mr. red iIdrdi
City of North Augusta
CSRA. I'm also confident the burden of repaying the City's $80 million investment will not fall on
the taxpayers of North Augusta.
Number Five, as | interpret it, reminded me the deadline for the City to provide specific
documents requested under the FOIA had passed. I believe there is a ten day deadline for an
initial response. I believe there is a separate specified time for providing documents less than
24 months old (within 30 calendar days (I believe), and one for documents more than 24
months old (35 calendar days), from the date of the City's initial response.
Your concluding paragraph was your opinion that I was not providing citizens the transparency
they deserve.
I trust this answers questions in the statement you read at the Council meeting.
Sincerely,
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Robert A. Pettit
Mayor
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