Author: Paul Gable

New Year for Horry County Council

The New Year is starting out in strange fashion for Horry County Council as its first meeting will be held Thursday night.

Regular council meetings are normally held the first and third Tuesday’s of each month. I understand scheduling conflicts for some of the members moved the first meeting in January two days.

The New Year is starting out where last year left off as far as changes with council are concerned.

Horry County experienced a 44% turnover rate in council membership in 2015 with three new members elected to begin the year and two more new members joining the council in special elections during 2015.

The last of those new members, Jimmy Washington from District 3, won election December 22nd and will be attending his first meeting Thursday night.

The two newest members, Washington and Cam Crawford from District 6, won special elections for unexpired terms that end this year. They will be facing re-election contests in 2016.

But, it wasn’t just membership that changed on Horry County Council in 2015.

In my opinion, there was a rather cavalier attitude toward spending the people’s money that was much more disturbing.

Not only did a majority of council pass the largest property tax increase in county history in 2015, they also increased road vehicle tax by 67%.

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Presidential Politics 2016

On the first working day of the New Year, my thoughts are of presidential primaries.

For the next seven weeks, South Carolina will be in the national spotlight as candidates travel throughout the state hoping to convince supporters they are the best person to be our next president.

Of course, this will be mostly on the Republican side as South Carolina is one of the most intensely conservative states in the nation.

Right now that looks like it means Donald Trump and, possibly, Ted Cruz against the field.

The Trump phenomenon is holding, even gaining a little momentum as the voting nears. Cruz, who must be considered another outsider in traditional Republican circles, has been coming on strong in the minds of South Carolina voters for the last month.

More traditional, establishment candidates, such as Jeb Bush, are trailing miserably.

If nothing else, this is a year of protest against the system, something traditional politicos have been slow to pick up on.

And what better state to lead that protest than South Carolina?

When Trump first announced his candidacy, I thought we would have a couple of months of fun with his outrageousness, then, he would fade from view.

That hasn’t happened.

The more outrageous Trump’s pronouncements are, the more his support grows.

Because the general feeling throughout the country is the system needs change.

I have been socially liberal all my life, but, when Trump calls for an end to all Muslim immigrants into the country, it strikes a sympathetic cord within me.

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Taxes, Flag Top 2015 News Stories

Taxes, Flag Top 2015 SC Newsies

Local tax increases and removal of the Confederate battle flag from the statehouse grounds topped the 2015 news stories.

Horry County Council passed the largest single tax increase in county history with a 7.2 mil increase in property taxes. Just for good measure, council also increased the road tax charged on every vehicle registered in the county by 67%.

Sold to the public as a means to increase public safety, the tax increase was really Horry County Council bowing to the will of county employees for a pay raise.

As council member Harold Worley said during debate of the tax increase, “Not one penny of the tax increase will go toward putting one extra officer on the street. Response times will not go down nor will community policing increase because of the tax increase.”

Adding insult to injury, the road annual tax was increased from $30 to $50 per vehicle, ostensibly to provide more money for maintenance of roads in the county road system.

Just a few months later, county council voted to use approximately $16 million in excess revenue from Ride II tax collections not for roads, but to buy a new radio system for public safety.

Five county council members will be up for re-election in 2016, but only one, Gary Loftus, voted to increase taxes.

Five of the six council members voting to raise taxes were elected or re-elected in 2014 and hope the voters will not remember this tax increase in 2018 when they face election again.

The statewide issue that was most intriguing was the removal of the Confederate battle flag from statehouse grounds.

This was done in just several days of a special session called by Gov. Nikki Haley. It demonstrated the General Assembly can act quickly when it wants to.

This special session followed a five month regular session when the General Assembly did absolutely nothing about the most important issues in the state – road maintenance and repair, ethics issues and school funding.

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Déjà vu for SC General Assembly

In November 2014, when everyone was talking about the upcoming SC General Assembly legislative session, three big topics were at the fore, ethics reform, transportation maintenance and repair funding and education funding.

One year later, as preparations are made for the second session of the 121st General Assembly, those three topics are still waiting to be addressed.

Real ethics reform falls into three areas – disclosure of all sources of income for members and their immediate families, disclosure of donor sources in these currently anonymous PACs and an independent process for ethics violation investigations.

Under our current ethics system, the House and Senate have ethics committees that essentially do nothing, and the SC Ethics Commission, which covers all other public officials throughout the state, specializes in collecting fines for late filing of disclosure documents.

All three areas have strong resistance, especially in the Senate, so expect another year where ethics is talked about much and accomplished not at all.

In the area of transportation maintenance and repair or general infrastructure funding, one lesson should have been learned with the floods of October – you can only ignore maintenance and repair of necessary infrastructure for so long.

When old, neglected infrastructure is hit with unusual conditions, it will fail. Some of the flood damage we saw would have happened anyway, but dams failing, bridges collapsing and roads washing out were as much a consequence of neglect as it was from the storm.

School funding, or rather equitable funding for poor, rural school districts is a subject that has been effectively dodged in one way or another since the Brown v. Board of Education Supreme Court decision of 1954.

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Who Has Information on Skydive Myrtle Beach?

The ongoing dispute between Skydive Myrtle Beach and Horry County Department of Airports has taken interesting twists and turns in recent weeks.

In 2014, Skydive Myrtle Beach lodged a complaint with the Federal Aviation Administration against Horry County Department of Airports alleging discriminatory actions against Skydive Myrtle Beach by HCDA.

In response, Horry County Department of Airports reported to the Federal Aviation Administration that Skydive Myrtle Beach was the subject of 112 alleged safety violations while conducting business at Grand Strand Airport.

According to Aaron Holly, a principal of Skydive Myrtle Beach, his business had never been notified of any of these violations and still has not received any official paperwork relating to any of them.

In October 2015, the FAA issued a 73 page Director’s Determination Report, in response to Holly’s original complaint, supposedly basing the report on those safety violations. Horry County subsequently used this report as an excuse to shut down Skydive Myrtle Beach operations at Grand Strand Airport.

County officials said FAA grant funding was in jeopardy if the Department of Airports didn’t act to shut down the business.

That’s not exactly true. A letter from Michael O’Donnell of the FAA to HCDA director Pat Apone, dated November 13, 2015, states in part, “The FAA also requested Horry County to submit a “corrective action plan incorporating acceptable risk mitigation measures and revised procedures under which safe skydiving operations may resume.”

The county was only supposed to suspend skydiving operations until a mitigation plan was submitted.

And the problem for HCDA gets worse.

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Curtis M. Loftis Jr., South Carolina’s treasurer

Fixing the SC Public Retirement System

It appears the SC General Assembly is finally realizing major work must be done to save the SC public retirement system.

This realization comes in the aftermath of a SC Legislative Audit Council report on the SC Retirement System Investment Commission (SCRSIC). “The LAC’s report reveals that our retirement and pension system’s longevity is in jeopardy and in need of immediate effective adjustments,” said SC House Speaker Jay Lucas.

What is bothersome is Lucas’ next quote attempting to take credit for discovering the deficiencies within the system: “Without the initiation of this report, we might not know the truly delicate state of South Carolina’s pension system. Although its findings reveal significant flaws and deficiencies, it gives the General Assembly a starting point to offer assistance to the RSIC by helping them institute corrective measures that will put South Carolina’s pension plan on a path to solvency,” Lucas said.

The LAC report called the retirement system “significantly underfunded” and that “it underreported risk” of its investments. It called for improvement in controlling conflicts of interest and pointed out the high fees paid and the low rate of return earned on its investments.

These are exactly the same criticisms SC Treasurer Curtis Loftis has leveled at the SCRSIC since taking office in 2011.

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Orchestrated Attack on Horry County School Board

Since early last month when the Horry County Schools Board of Education picked First Floor Energy Positive to build five new schools, there has been an orchestrated attack to denigrate that decision.

Much has been made of the fact that the First Floor proposals were over the initial budget while little has been said about all three finalists submitting proposals over budget.

Several news articles have said that the school board ignored the advice of a paid consultant, but never mentioned that consultant was hired by the board’s attorneys to answer technical questions only and not to make recommendations about the awarding of the contracts.

Those articles were quick to point out that M.B. Kahn was the only one of the three finalists whose proposal was ‘within striking range’ of the initial budget.

The news media basically got fed part of the story and ran with it.

These were not design-bid-build projects where the contract design generally goes to the lowest bidder. These were design-build proposals where the best, most complete proposal gets the contract as long as the cost is in the ballpark of the others.

Many other allegations of ‘misinformation’ are being circulated, even though those circulating them can be seen to have some ties, past and/or present, to one of the unsuccessful proposers.

However, First Floor Energy Positive was the only proposer who demonstrated the ability to deliver the schools on time.

In addition, several sources familiar with the selection committee process said there are things First Floor included in their proposals, that the others did not, which helped the selection committee understand what they were getting and, more importantly, were requirements of the Request for Proposal and SC law.

And, First Floor Energy Positive is the only proposer of the three finalists to have successfully built energy positive schools that are raved about by the North Carolina school districts in which they are located.

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HCSWA Moves to Cut Charleston Losses

The Finance Committee of the Horry County Solid Waste Authority board heard Thursday of moves to cut the losses the authority has sustained from its deal to process Charleston County recyclables.

According to HCSWA staff, Charleston County will pay the cost of transportation of its recyclables to Horry County for November, December and January in an attempt to allow the HCSWA to recoup its current losses.

In addition, any amount above 14.5% of residuals will be shipped back to Charleston for disposal.

But, even if the excess of 14.5% is shipped back to Charleston, that won’t solve the other key assumption in the contract that must be met if the HCSWA is ever going to turn a profit from the deal.

Every ton of recyclables above the 14.5% residual threshold means lost revenue that is needed for a profit to be realized.

The estimated profit of $1 million per year is based on a residual rate of not more than 14.5% and the ability to realize an average of $135 per ton revenue from the remaining 85.5% of recyclables processed.

One other problem is the amount of recyclable waste going to the HCSWA landfill.

Horry County Council made it specifically clear that it did not want any Charleston recyclables going into the HCSWA landfill. That space must be saved for Horry County trash and extended as much as possible.

The HCSWA told council it had an arrangement to send C&D waste out of the county in an amount equal to the excess recyclable residual amount realized. This was an airspace neutral arrangement.

The HCSWA claims a historic 14.5% residual rate for recyclables from Horry County.

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