Saturday, November 19, 2016

November 7 Court Hearing on Kernodle Class Action Suit

We were back in court on November 7 fighting Kernodle's class action suit against the Town.  David and Sandi Engelman and Rod Welch signed onto Kernodle's suit as class representatives.    The case is called Engelman v Town of James Island.

The Town and Charleston County requested that Judge Nicholson reconsider his July 7 order.   In that order, the Judge denied Kernodle's motion for summary judgement against the Town and also denied the Town's motion to dismiss.   As a result, absent some reconsideration, the case will go to trial, probably next March.

The Judge's July 7 order also included two surprises.   The Judge added Charleston County as a plaintiff against the Town.   And the Judge imposed an injunction against the Town prohibiting us from spending or crediting any LOST funds that we have or will receive.

The addition of Charleston County as a plaintiff against the Town was a complete surprise to everyone, including Charleston County.   As for the injunction, Kernodle had sought an injunction against the Town on July 22, 2015.   Judge Dennis denied Kernodle's request on September 2, 2015.   Judge Nicholson, in effect, reversed Judge  Dennis' decision.  The only reason Judge Nicholson gave was that Charleston County was not a plaintiff when Judge Dennis denied the injunction sought by Kernodle.

The Town and Charleston County asked the Judge to reconsider.   The injunction appeared to prohibit the County Auditor from placing the Town's property tax credit on the tax bill.   This is because it said that the Town cannot credit any LOST funds that it will receive.  Failure to provide a credit against our own property tax at least equal to the amount of revenue the Town expects to receive this fiscal year from the LOST Property Tax Credit Fund would put the Town in violation of the plain meaning of the LOST statute.  Worse, with no credit, property taxpayers in the Town would have faced a substantial increase in their 2016 property tax bill in October.

Thankfully, on August 17, Judge Nicholson lifted the injunction for the 2016 tax year.   As a result, the October property tax bills included the Town's property tax credit and Town taxpayers didn't have to pay any property taxes to the Town.

After Judge Nicholson added Charleston County as a plaintiff, County attorneys responded to Kernodle's class action suit.   The County agrees with the Town that the case should be dismissed because of provisions of the South Carolina Revenue Procedures Act (RPA.)    That statute prohibits class actions on issues relating to property taxes.   It requires that taxpayers first request a property tax refund from County tax officials.   If there were a dispute (and the Town would dispute it) there is a procedure for adjudication that eventually goes to the South Carolina Supreme Court.   If the taxpayers are determined to be due a refund, the RPA describes how the local governments pay the refunds to the taxpayers.   The RPA expressly states that if a case is brought to circuit court, it must be dismissed.

Judge Nicholson made no decisions at the hearing.  He said he had a lot of studying to do. We must wait.

From the Judge's remarks, it appeared to me that he added Charleston County to the case so that Charleston County could ask to take the money the Town received from LOST and use it to provide a property tax credit to all the taxpayers in the County.   The result would be a one time 3% increase in the County property tax credit.   This would result in a one time decrease in property taxes for all homeowners in the County by 1/2 of one percent.  (The reduction would be proportionally even smaller for vehicles, businesses or rental property.)  From the point of view of those of us in the Town, approximately 98% of the benefit would go to people outside of the Town--for the most part in the City of Charleston, City of North Charleston, and the Town of Mount Pleasant.  

Fortunately, Charleston County's attorneys do not believe this is consistent with the LOST statute and instead argued that Judge Nicholson should dismiss Kernodle's class action suit because of provisions of the RPA.   The County attorneys also explained how the County uses excess revenue it receives from the Property Tax Credit Fund to carry forward credits to the next year.    This is what the Town has been doing with the revenue it received before the Town had a property tax.

There was some discussion of the other municipalities in Charleston County that have no property tax and receive revenue from the Property Tax Credit Fund.   They all spend it on operations.   It seemed to me that the Judge was suggesting that the County add all of them to the suit as defendants so that it could take their money too.  Again, the County Attorneys showed no interest in such a proposal, which would bankrupt some of the small municipalities in the County.

Also, in oral arguments, Kernodle appeared to accept that the Town is now in compliance with the LOST statute regarding all the revenue the Town has received from the LOST Property Tax Credit Fund since July of 2015.   That is, the Town is in compliance with the statute by providing the required credit against its own property tax millage.   At this point, he only appears to be trying to get his hands on the approximately $2.3 million of funds that the Town received in 2012, 2013 and 2014 before we levied a property tax.

I am hopeful that any injunction imposed by Judge Nicholson will only apply to spending the $2.3 million the Town received from the LOST Property Tax Credit Fund some years ago, and not vaguely refer to "LOST Funds" that the Town has or will receive.   I also hope he does not interfere with the Town's policy of carrying forward credits.

Further, I believe that Judge Dennis was correct to deny the injunction last year.  I hope that Judge Nicholson will review the arguments the Town provided to Judge Dennis.   In my opinion, the Town has the legal right to manage its own funds and Kernodle has no right to compel us to sequester funds to pay a possible judgement.  

Finally, I hope that Charleston County's support for our position that the Revenue Procedures Act requires that Kernodle's class action suit be dismissed will be persuasive to the Judge.

Friday, November 18, 2016

No Delay on Traffic Signal at Mikell

James Island Town Council unanimously rejected a resolution to delay turning on the traffic signal on the corner of Mikell Drive and Harbor View Road.  The resolution, which had been put on the agenda by Councilman Mullinax, requested a delay until after the project was complete and a traffic study was done at that intersection by SCDOT.   The study would be based upon traffic patterns that would exist after all of the rest of the project was complete.   Any delay would have required similar resolutions to be passed by the City of Charleston and Charleston County and then approval by SCDOT.   I have been told that SCDOT would have allowed it if all three local governments requested it.    I do not believe the City of Charleston would have passed a similar resolution.   Because the traffic signal is in Councilman Qualey's district, I think that Charleston County Council would have agreed to the delay at his request.

At the meeting, Councilman Blank reported that a traffic study had already been done by Charleston County before this signal was included in the plan.    In my view, concerns about this traffic signal should have been brought to our Council meeting in July of 2013, when the Town approved the project.    Councilman Milliken strongly supported the signal.   Councilman Mullinax appeared open to supporting the delay if the traffic study would be completed promptly.   In the end, however, all members of Council voted against the resolution.

Wednesday, November 16, 2016

Whatever you say Councilman Qualey


Mayor and Council,

Thank you for placing this matter on the Agenda for this Thursday at 7 pm

I will be visiting our son out of town and will be unable to attend.

As you are all aware below is my position:

Further I have been in touch with the Charleston County School district and they said that students will not be allowed to cross at the light alone

and that even with a cross walk a crossing guard would likely be required. (That is a matter of safety for the Sheriff to determine)

So the light shouldn’t be seen as a benefit for school kids.

Please place this matter to an up or down vote on Thursday.

And Mayor please place this on the Towns site and also on your own Blog

Thanks

Joe



Dear fellow James Islander,

As you are aware I have been intimately involved in the design and redesign of the HV Road project.

My plan had no stoplights on HV and DOT,  Staff and the Town put 2 lights in the plan.

One at Ft Sumter and another at Mikell.

They were going to be put in only after the project was complete and the DOT determined the traffic counts warranted such.

I was then informed that our Staff (without my knowledge) had a traffic count done and they decided to place the lights in the plan.

This was and is over my objection. (at least until the project is complete and we see whether the lights are truly needed)

My focus is now on the Mikell drive light and on Thursday (tomorrow) night at the Town Meeting at 7 pm I will ask the Town to vote to defer

the implementation of that light until a later date if and when it is determined that light is needed.

A few items of note:

The Church does NOT want the light

The Principal of Styles said he really has no opinion and that no teacher, parent, or student has ever expressed a desire to have a light there.

This light will function all the time and will cause cars to stop when there is no traffic (weekends and non-school hours)

This light (in my opinion) is going to and will cause morning traffic to back up to Ft Johnson road.(and beyond)

In fact if the lights create “spacing” to allow cars to enter HV Road, why did we spend 12,000,000 to undertake all of the improvements?

I am asking you to please attend the Meeting tomorrow night and ask Town Council to delay the implementation of this light .

Many thanks and PLEASE forward this to all interested and affected parties.

Joe Qualey

Sunday, November 13, 2016

Conflict of Interest?

Kathy Woolsey is my wife.   She is one of seven members of the James Island Public Service District Commission.   I am Mayor of the Town of James Island.  Does this create a conflict of interest?

I have had a few people ask me about this, but most of them don't live on James Island.   I can certainly understand how those from off the Island would have little idea about how our Town government relates to the James Island Public Service District.

Still there have been a few Town voters who have asked.   Unfortunately, many James Island voters have little understanding of the James Island Public Service District and its relationship to Town government either.

The JIPSD Commissioners do not select or provide oversight for the Mayor or the Town.  They do not approve the Town's budget or any of its ordinances, regulations, or policies.

The Mayor of the Town of James Island is elected by the voters of the Town and directs the Town's staff.   Oversight is provided by Town Council, which includes the Mayor.   Like the Mayor, the members of Town Council are elected by and work for the voters of the Town.
 
The Mayor's salary is determined by vote of Town Council.  Any increase in salary for Mayor or Town Council that is approved by Town Council can only be paid commencing after the next election for Town Council.   The JIPSD Commissioners have no say regarding the Mayor's salary.

I will vote on any proposed increase in the Mayor's salary, but Kathy will not.   Any approved increase in salary for Mayor will only apply after the next election for Mayor and Council in November 2019.

The Mayor and Town Council provide no formal oversight for the JIPSD Commissioners.   We do not approve the JIPSD budget, taxes or fees.

The Commissioners are elected by and work for the voters of the District, which is larger than the Town.   It includes the entire Town plus the unincorporated areas of James Island.

The JIPSD Commissioners select and provide oversight to the District Manager, who directs the JIPSD staff.    The Mayor and Town Council have no authority over the JIPSD staff which include the fire fighters, sanitation workers, and sewer workers of the district--which, again, is the Town and unincorporated area of James Island.

The salary of the JIPSD Commissioners is set by vote of the Commissioners and  any approved increase can only be paid after the next election for Commissioner.   The Mayor and Town Council have no say in the pay of the JIPSD Commissioners.   Kathy will vote on any proposed increase in her salary as Commissioner, but I will not.   Any increase approved in the next two years would only apply to Commissioners after the November 2018 election.    (Kathy will be up for reelection in November 2020.)

The Town provides no funding to the JIPSD.   The JIPSD provides no funding to the Town.  (The Town does pay a JIPSD sewer bill for Town Hall and  I believe the JIPSD pays the Town's storm water utility for the parcels it owns in the Town.)

The JIPSD collects property taxes in the Town's jurisdiction.  Those taxes make up approximately half of a homeowner's property tax bill.  The JIPSD sets its tax millage without any input from the Town.   The JIPSD also collects sewer bills in the area of the Town's jurisdiction.   They set their sewer charges without any input from the Town.

The Town collects a variety of taxes and fees in the area of its jurisdiction.   All of the Town is within the JIPSD, so we are collecting these taxes and fees within those parts of the  JIPSD that are in the Town.   The JIPSD Commissioners have no input on any of the Town's taxes and fees.

I have proposed that the JIPSD transfer service rights for solid waste to the Town and reduce the property tax millage it collects in the Town's jurisdiction.   I have proposed that the Town obtain solid waste services from the JIPSD by contract, paying them the amount they would have collected from their property taxes in the area of the Town.    (The Town has been collecting a property tax millage since 2015, though we have been providing a municipal property tax credit sufficient to reduce the amount taxpayers in the Town must pay to zero. )

If the JIPSD and Town were to come to this agreement, then the Town would be funding a portion of the JIPSD's budget for solid waste collection.   Superficially, there would be a conflict between the Town and the JIPSD regarding the amount to be paid--the Town seeking to pay less and the JIPSD seeking to receive more.

However, I am Mayor and not the owner of the Town and so receive no personal economic benefit by reducing the amount the Town pays for services from other government entities.   Therefore, Kathy receives no special benefit through me for having the JIPSD receive less money from the Town.  There would be no conflict of interest even if the Town was paying the JIPSD for services.

The only possible economic benefit she and I would receive would be shared by all residents of the Town.   This includes the majority of JIPSD Commissioners.   Starting in January, the only Commissioner that does not live in the Town will be Commissioner Cubby Wilder.   Commissioners McMillan and Waring, who both live in the unincorporated area of Riverland Terrace, lost their seats.  Sandi Engelman and Kathy, both of whom were challengers who won seats, live in the Town.   Commissioner Platt, who was reelected, also lives in the Town.   Commissioners Hollingsworth, Kernodle, and Brown-Crouch all live in the Town.  So it is changing from four residents of the Town and three residents of the unincorporated area to six residents of the Town and one resident of the unincorporated area.

However, my proposal would avoid any conflict because the JIPSD Commissioners would set the millage for solid waste services based upon the cost of providing the service in the whole district, including the Town.   The amount the Town would be charged would be equal to what would have been paid by our property owners based upon that common millage.   The JIPSD would be protected by the agreement since it would collect the same amount of funds in total.   The Town would be protected from excessive cost because Town voters would continue to vote for the Commissioners that set the millage.   This would in no way harm the interests of those residents of the district outside the Town.    Sadly, they would not benefit by having the Town cover the cost of solid waste for them but would continue to pay for their share by property tax.

Of course, the long run solution is to have the Town annex all of the unincorporated area of James Island so that everyone in the JIPSD is also in the Town.   Aside from a small number of residents in a portion of Laurel Park (near Central Park and Folly), this will return us to where we were in 2011.   If we can accomplish this, then my proposal would have the Town cover the cost of solid waste collection for everyone in the JIPSD.

Of course, reuniting the Town is not easy.  The problem is that the City of Charleston has annexed areas that cause breaks in contiguity between the existing area of the Town and the unincorporated areas of James Island.   Representative McCoy filed legislation last session that would allow the Town to annex areas that are in the same public service district as the Town.   But it must pass the SC House, SC Senate, and be signed by the Governor.  If it passes, then we can start petition drives and hold annexation elections in those areas of James Island that used to be in the Town.

Now, what about my secret plan to have the Town take over and close down the JIPSD?    Is Kathy going to side with the Town against the JIPSD?    Is that the conflict of interest?

Of course, that is just a paranoid fantasy.   I have no such plan.

As long as any portion of James Island remains unincorporated, the JIPSD will exist in at least that area.   While residents of the Town will continue to vote for JIPSD Commissioner as long as the Town remains within the JIPSD, residents of the JIPSD in any remaining unincorporated area will not be able to vote for Mayor or Town Council.   That is why I remain very skeptical of the value of any reorganization of tasks between the Town and the JIPSD at this time.

If and when there is no longer any unincorporated area on James Island, then we can have a conversation about a possible reorganization of tasks between two local governments that will have the same territory.   If there is to be any shift of responsibility for the administration of any service from the JIPSD to the Town, I believe candidates favoring such a shift will need to run for JIPSD Commissioner on a platform in favor of such a shift.   Because the JIPSD's charter limits the services it can provide, there is very little room for shifting governmental responsibility from the Town to the JIPSD.

I don't see any of this happening while I am Mayor, so I don't worry about it too much.   I believe that most James Island voters have little interest in shifting responsibilities from the JIPSD to the Town.  In my opinion, it is something that might happen one day.   (And even that is considered an unacceptable threat to some JIPSD Commissioners.)

Friday, November 11, 2016

Should Activation of the New Traffic Signal at Mikell and Harbor View be Delayed?

Town Council will vote on a resolution next Thursday, November 17 at 7:00 on whether to request a delay in the activation of the traffic signal on the corner of Mikell Drive and Harbor View Road.

The resolution was placed on the agenda by Councilman Troy Mullinax at the request of County Councilman Joe Qualey.   If it passes, then it must also be considered by the City of Charleston Council because the Harbor View Road project crosses both Town and City jurisdiction.   If both the Town and City Councils approve, the request will go to County Council.   These requests by local governments will go to SCDOT, which I have been told is likely to allow a delay if all the local governments agree.   The proposal is for SCDOT to do a traffic study after the project is otherwise completed before activating the light.    A traffic study was done by Charleston County before the signal was included in the plan.

The matter was discussed at the October Town Council meeting.   No vote was taken because no resolution or motion had been prepared and distributed to Council before that meeting.   There looked to be little support among Council for the delay.

The matter was discussed at a James Island integovernmental meeting much earlier and there was little support for this change other than by County Councilman Qualey.   Charleston City Councilwoman Kathleen Wilson opposed it at that time.   Since it is in her district, I find it difficult to believe Charleston City Council will approve the change.

Public comment will be at the beginning of next Thursday's meeting and you must sign up to speak.   If you would like to share your view on this matter, please come.

You may also email me at mayorwoolsey@gmail.com or members of Town Council:   http://www.jamesislandsc.us/town-council.   My phone number is (843) 697-7020.   The number at Town Hall is (843) 795-4141.

In my opinion, it is inappropriate for the Town to request a last minute change.   The plan presented to the Town in 2013 included this signal and Council approved it.   The project was modified to provide a turn lane to accommodate this signal a year later.   The signal is now installed.    It is much too late.

I would like to know what you think.










Thursday, November 10, 2016

JIPSD Election Results--the Good, the Bad, and the Ugly

The results are in for the JIPSD election.

There were three seats up for election on the seven member James Island Public Service District Commission.   Incumbents June Waring, Carter McMillan and Eugene Platt all sought reelection.   There were six challengers--Kathy Woolsey, Sandy Engelman, Donna Jenkins, Giovanni Richardson, Alan Lauglin, and Oana Johnson.

Voters in the JIPSD, which includes the Town of James Island and unincorporated areas of James Island, could each choose up to three candidates.   The three candidates with the most votes win seats.  There is no runoff unless there is a tie for third place.

The results:

Sandy Engleman       2325
Donna Jenkins          1695
Oana Johnson             905
Alan Laughlin            975
Carter McMillan      1559
Eugene Platt             2322
Giovanni Richardon 1134
June Waring              2177
Kathy Woolsey         3183

Kathy came in first and we both greatly appreciate the confidence JIPSD voters have shown in her.   

She won her seat by a convincing margin--858 voters more than second place Sandi Engleman and 861 more than third place Eugene Platt.    Incumbent June Waring is out, being 145 votes behind Platt.

Kathy came in first in 16 of the 20 voting precincts on James Island.      Platt won Folly Beach 2, Jenkins won both JI 1B and JI 3 but was in fifth place overall.  Engelman beat Kathy by one vote in JI 13, that being her only first place finish.

I was very disappointed that incumbent Carter McMillan lost his seat, coming in sixth, needing 764 more votes to beat Platt for third place.    He had 1559, so he needed almost 50% more votes than he received.

One interesting fact about this election is that 37% of the votes were absentee.   The precinct results don't include these nearly 6,000 votes.  This includes both the traditional paper absentee ballots and the "early voting."   Kathy won the largest number of those votes, 1,106, making up 35% of her total.   Waring, Platt, and Jenkins received disproportionately more absentee votes--close to 42% of their totals.   Of course, that wasn't enough for 5th place Jenkins or 4th place Waring.    McMillan received 511 absentee or 33% of his total.   It was the absentee votes that pushed Jenkins past McMillan to 5th place, but both were well behind Waring.
  
Kathy worked very hard on this election and we spent a good bit of money.   Thank you to all of our contributors.    The biggest expense was signs.   Kathy spent a good bit on ads on facebook and instagram.  We distributed 2,000 flyers.   There are approximately 6,000 households in the JIPSD so this was about 1/3.   Kathy distributed most and I did a good many, but she had several volunteers who worked in their neighborhoods.  Thanks.   

So, hard work pays.  

On the other hand, Sandi Engleman did little more than put signs out in the right of way.   The signs were mostly paid for by former JIPSD Commissioner Rod Welch (who is joining her in the suit against the Town.)    

Most remarkably, Eugene Platt did approximately nothing and was reelected.

So, you can win doing next to nothing.   But I wouldn't bet on it.   

And Kathy didn't. 

Thursday, November 3, 2016

Kathy Woolsey for James Island PSD Commissioner

I strongly support Kathy Woolsey for James Island PSD Commissioner.

She is bright and hardworking.

Most importantly, she is honest.  

I have known her for more than thirty years, and I can assure you, she always tells it like she sees it.

She has been an elected Commissioner for the Charleston County Soil and Water District for the last 16 years.   She has plenty of experience serving as an elected official and overseeing government activity.

Here in Charleston County, the Soil and Water Commission is especially interested in water quality.   They obtained a grant to help repair and provide septic systems to needy homeowners, resulting in reduced pollution of our local waters.     The aging James Island PSD infrastructure has resulted in problems with pollution of our local waters.   We need Kathy on the job protecting our local waters.

Kathy is committed to cooperation with other local governments--the Town, Charleston County, the City of Charleston, and the City of Folly Beach.   By working together, we can avoid wasteful duplication and save money.  

Please join me in voting for Kathy Woolsey.

Re-Elect Carter McMillan for James Island PSD

Carter McMillan was a member of the James Island Town Council in 2010 and 2011.  As Chair of the Town's public works committee, he did an excellent job in helping reform the Town's approach to maintaining drainage and filling potholes.

In 2011, the Town was closed down by the South Carolina Supreme Court.  Carter was central to the effort for a fourth incorporation, serving on the Free James Island committee.  Because he lives in Riverland Terrace, he could not seek re-election in 2012 to our new Town Council.

Carter was appointed as a James Island Public Service District Commissioner and then elected in 2012.   In my opinion, he has done an excellent job serving residents of the JIPSD and the Town,

His key goal has been working for transparent and ethical policies for the JIPSD Commission Unfortunately, entrenched incumbents, such as June Waring and Eugene Platt, have fought him at every turn.

I think it is very important that Carter be reelected to the JIPSD Commission.

I think he needs some new Commissioners to help him.   I believe that Kathy Woolsey will work with Carter McMillan on the JIPSD to promote ethical and transparent policies.