Post Tagged with: "Harold Worley"

Horry County Council Votes Unanimously to Cancel I-73 Contract

November 19, 2019 8:18 PM
Horry County Council Votes Unanimously to Cancel I-73 Contract

Horry County Council voted unanimously at its regular meeting Tuesday night to cancel the Financial Participation Agreement with the South Carolina Department of Transportation that would have provided funding for the Interstate 73 project.

The agreement was approved by council during a special meeting held on November 28, 2018 and signed by former county administrator Chris Eldridge on December 13, 2018. Former council chairman Mark Lazarus led the charge to get the agreement signed before he left office December 31, 2018. Lazarus and Eldridge were the two foremost proponents of having the county enter into the agreement with SCDOT.

In addition, Lazarus and Eldridge were instrumental in orchestrating the elimination of a sunset provision from the county’s hospitality fee legislation earlier in 2018 in order to direct revenue to I-73.

But it all began to fall apart in March 2019 when the City of Myrtle Beach sued Horry County over continued collection of hospitality fees after the bonds for the first RIDE projects were paid off, an action the city called illegal.

Last spring, Horry County Council approved a resolution to refund hospitality fee revenue collected within the municipal boundaries to the respective cities where it was collected. The resolution included a proposal for the municipalities and the county to provide some funding for I-73 with percentage contributions from each agency in line with the percentage of the total amount of hospitality fee revenue each city received.

The cities dismissed that resolution out of hand.

Now, the cities and the county are considering a settlement agreement to the lawsuit with virtually the same terms with the exception that the cities will be on the hook to pay their attorneys 33% of the refunded revenue, approximately $7 million.

The blame for the cancellation of the I-73 agreement can be laid directly at the feet of Myrtle Beach and the other cities that joined in the lawsuit and refused to accept virtually the same settlement they are now considering.

Several county council members, including Chairman Johnny Gardner and council members Harold Worley and Johnny Vaught made exactly the point that the cities could have had the same settlement without paying such large attorney fees by accepting the resolution in the spring. It must also be noted the I-73 contract would not have been cancelled if the cities had taken this action.

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Seriously Flawed Settlement Agreement Proposed for Hospitality Fee Lawsuit

November 7, 2019 4:34 AM
Seriously Flawed Settlement Agreement Proposed for Hospitality Fee Lawsuit

The proposed settlement agreement presented to county council at its regular meeting Tuesday night appears to have many serious flaws, according to information gathered by Grand Strand Daily.

Council member Harold Worley vented his frustration with the settlement agreement during the council meeting. His complaint was having attorney fees of approximately $7 million come off the top of an approximately $20 million the settlement award if the lawsuit is settled as a class action.

The $20 million was collected from a countywide 1.5% hospitality fee collected between the date the bonds were paid off in February 2019 until June 30, 2019. Worley’s statement is based on a 1/3 contingency fee to be paid off the top of the settlement amount to the attorneys representing the cities.

The basic claim in the original lawsuit was that Horry County illegally collected a 1.5% countywide hospitality fee since January 1, 2017. The fee was collected with the agreement of the cities for an initial 20 year period beginning January 1, 1997, in order to pay off bonds issued to pay for the initial RIDE road projects.

The county first extended collection of the fee until the bonds were paid off and, later, in perpetuity. The cities allege they did not give approval for the extensions which prevents the county from legally collecting the fee in their respective taxing jurisdictions. However, the cities apparently dropped a claim for fees used to pay off the bonds between January 1, 2017 and February 2019.

But that money is not the cities to claim, a fact GSD first reported last spring when the lawsuit was filed. It is not the cities’ money. It is not the county’s money. It is taxpayer money.

 If it were held the county did illegally collect hospitality fees after the bonds were paid off, any rebates of tax revenue would be owed to the people from whom the taxes were collected, not the cities in which the fee was collected.

Hospitality fees are collected by vendors at point of sale and remitted monthly directly to the county in accordance with the provisions of state law. The cities are not involved in the collection process at all, nor is it their money being collected.

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County Government Fault Lines Exposed on Fire Department Morale Issue

July 12, 2019 6:42 AM
County Government Fault Lines Exposed on Fire Department Morale Issue

The exchange at Tuesday night’s council meeting between council member Danny Hardee, Fire Chief Joseph Tanner and Deputy Chief Jack Walker highlighted some of the problems that must be fixed in the inner workings of Horry County Government.

Speaking as a point of personal privilege, Hardee talked directly to the top two fire department officials about morale and other personnel issues within the department.

As Chairman of the county’s Public Safety Committee, Hardee was trying to do the right thing, but he did it the wrong way.

Under state law governing the county’s council/administrator form of government, Hardee should have been addressing administrator Steve Gosnell, not the heads of a county department. The following extract from Title IV of state law applies:

“SECTION 4‑9‑660. Authority of council and its members over county officers and employees.

Except for the purposes of inquiries and investigations, the council shall deal with county officers and employees who are subject to the direction and supervision of the county administrator solely through the administrator, and neither the council nor its members shall give orders or instructions to any such officers or employees.”

Hardee was not speaking to the two fire officers as part of any formal inquiry or investigation. According to his own statement, Hardee was speaking from notes he took from informal meetings he has held with fire department personnel in various fire stations throughout the county.

There was a breakdown of protocol at several levels as Hardee spoke. Council Chairman Johnny Gardner should have gaveled down Hardee for being out of order. He did not.

Administrator Gosnell should have told Hardee such a conversation should be held between the administrator and council member, but not during a regular meeting of council as it involved employees who work for the administrator, not council. He did not.

County Attorney Arrigo Carotti should have told Hardee the conversation was not proper under state law and that such remarks should be addressed to the administrator during a meeting between the administrator and council member, otherwise legal issues could arise.

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Another Hospitality Fee Filing, Another Email, More County Lunacy

July 2, 2019 1:21 PM
Another Hospitality Fee Filing, Another Email, More County Lunacy

The City of Myrtle Beach filed a supplemental memorandum Monday in support of its lawsuit against Horry County’s continued collection of hospitality fees.

Leading the memorandum is an affidavit by North Myrtle Beach City Manager Michael Mahaney providing evidence of the county’s continued collection of the hospitality fee in the City of North Myrtle Beach after June 21, 2019, and supporting a June 26, 2019 motion by Myrtle Beach for the county to show cause why it was not in contempt of a temporary restraining order issued by Judge Seals on June 21, 2019 prohibiting same.

Included in the filing was an email originated by attorney Henrietta Golding who is representing the county in the lawsuit.

The email appears to have evolved out of the string of emails that were the subject of several media stories yesterday. The email that appears to have started the string was sent by former county council chairman Mark Lazarus to Golding.

In her email, Goldings criticizes the judge and the temporary restraining order the judge issued against the county for having “many errors”; states, “This is solely the fault of Myrtle Beach” and appears to discuss the county’s strategy in moving forward by saying the county will try to get a “supersedeas” and saying “if the county took steps to suspend the ordinance (creating the hospitality fee), then probably create legal issues detrimental to the county.”

Golding’s email was sent to Lazarus, county council members Johnny Vaught, Harold Worley, Tyler Servant and Dennis DiSabato, interim administrator Steve Gosnell, county attorney Arrigo Carotti, North Myrtle Beach Mayor Marilyn Hatley, Mahaney and Surfside Beach City Manager Dennis Pieper.

The choice of recipients is confusing as Golding only represents six – the four council members, county administrator and county attorney. Lazarus has no official position with the county since his term ended December 31, 2018. Hatley, Mahaney and Pieper support the position of Myrtle Beach that the county has been illegally collecting the hospitality fees since January 1, 2017 when the original sunset provision of the county hospitality fee ordinance expired.

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Time to End the County’s Hospitality Fee Lunacy

July 1, 2019 11:11 AM
Time to End the County’s Hospitality Fee Lunacy

Events occurring over the last week served to magnify the need for the county and the cities to get past the lunacy that has developed over the county’s efforts to continue collecting a countywide Hospitality Fee that is in all likelihood now illegal.

Myrtle Beach initially filed a lawsuit against the county “for itself and “similarly situated plaintiffs” on March 21, 2019 stating its claims against the county’s continued collection of the hospitality fee and requesting a temporary restraining order on the county’s continued collection of the fee while the case was being litigated.

After District Court Judge Seals issued a temporary restraining order on the county’s continued collection of a 1.5% hospitality fee within the City of Myrtle Beach and “similarly situated plaintiffs”, on June 21, 2019, the cities expected the county to stop collecting the fee within their jurisdictions.

Last Tuesday, the county dashed those expectations by sending out an email announcing it would only stop collecting the fee within Myrtle Beach and would continue to collect it in the other cities in the county as well as the unincorporated areas.

This led to outrage from North Myrtle Beach officials who called the county’s continued collection of the fee within their city “illegal.” In addition, Myrtle Beach filed a new motion requesting the county be required to show cause that it was not in contempt of the judge’s order.

With the angry rhetoric flying, a special meeting of county council was called for June 29, 2019 at which council was expected to vote on a recommendation to suspend collection of the fee within the cities until the lawsuit was settled.

Instead, council convened, immediately went into executive session where, according to sources with knowledge of the discussion, county attorney Arrigo Carotti and attorney Henrietta Golding, representing the county in the case, urged council to “stay the course” and continue collecting the fee in the other cities until ordered not to by the Court. In addition, the attorneys reportedly told council the judge had used the wrong standard of review in making his ruling. Golding filed a request for reconsideration of the ruling and was prepared to take the issue to the S. C. Supreme Court where, she told council, she expected the restraining order would be overturned.

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How Far Will the Deep Six Go to Block Change With a New Administrator?

May 31, 2019 8:37 AM
How Far Will the Deep Six Go to Block Change With a New Administrator?

The first phase in finding a replacement for former county administrator Chris Eldridge will be completed next week as applications from candidates must be in by June 5, 2019.

The Deep Six, council members Harold Worley, Tyler Servant, Dennis DiSabato, Gary Loftus, Cam Crawford and Bill Howard, assisted by council member Johnny Vaught, already tried to hijack this process once.

In behind the scenes maneuvering, this group attempted to promote the hiring of interim administrator Steve Gosnell to the administrator job without consideration of any other candidates. When the plot was exposed, several of the plotters backed away quickly.

Voters in the county opted for change in the way the county does business when they elected council chairman Johnny Gardner to replace Mark Lazarus last year.

Since Gardner took office, the Deep Six have attempted to obstruct change to the point of initially blocking the firing of Eldridge after he and county attorney Arrigo Carotti were discredited in their attempt to smear Gardner. That little episode cost county taxpayers approximately $300,000, the cost of paying off Eldridge to get rid of him.

But, that cost will be minimal compared to the cost to taxpayers of blocking a new vision to county administration.

Steve Gosnell has been a good engineer for the county. He has approximately two years to go before hitting the 28 year mark for full retirement. He is not the person to look to for changes in the way county government is run.

Gosnell has been head of the county’s Infrastructure and Regulation Division and an assistant administrator for a number of years, once before serving as interim administrator. He has built a working relationship with other members of senior staff and, as such, is not expected to look at what changes are necessary to make county government more effective, more responsive to the needs of citizens and more transparent.

County government does not need, in the administrator position, a two year placeholder looking forward to retirement while keeping many of the failed Eldridge policies and senior staff in place.

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Deep Six Secret Attempt to Hijack Administrator Search

May 15, 2019 3:22 AM
Deep Six Secret Attempt to Hijack Administrator Search

Only minutes after the end of the last regular meeting of county council during which plans for a search for a new county administrator were discussed, several council members moved to hijack the search.

According to information received from various council members:

Immediately after the close of the regular meeting: council member Harold Worley approached interim administrator Steve Gosnell about taking the permanent administrator job without going through the search process.

Being a single member of council, Worley had no right to circumvent the search process in this manner, but he did it anyway.

Worley contacted council member Johnny Vaught the following day, explained he had talked to Gosnell, brought Vaught on board with the plot and tasked Vaught to secure sufficient votes from other council members over the next few days.

While Vaught was contacting other council members, council member Gary Loftus contacted the county’s Human Resources Department telling them not to post the job opening for administrator as had been discussed before full council at the meeting. As a single council member, Loftus had no authority to issue such an instruction.

At the regular council meeting, Loftus made a motion to reconsider the vote to accept the separation of former administrator Chris Eldridge to add to it acceptance of Gosnell as interim county administrator. Loftus said this motion was made, “So we make sure that we follow proper legal procedure.”

After the motion to reconsider was approved, Loftus offered an amendment to appoint Gosnell as interim administrator “under short term contract to be entered into by the chairman on behalf of county council,” The amendment passed and the main motion accepting Eldridge’s separation and appointing Gosnell to interim administrator under short term contract passed.

On the dais in front of the public, proper procedure was the rule of the hour. However, proper procedure was ignored immediately after the meeting and in the next several days as this behind the scenes plot unfolded. And nobody bothered to contact the chairman until the plot was in motion and Vaught called Gardner to ask for his support.

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Negotiations on Eldridge Departure Ongoing, Lawsuits Considered

April 4, 2019 5:00 PM
Negotiations on Eldridge Departure Ongoing, Lawsuits Considered

During the regular meeting of Horry County Council April 2, 2019, Chairman Johnny Gardner informed council members that negotiations regarding the exit of administrator Chris Eldridge are ongoing.

There have been some indications that Eldridge believes he has claims against the county that could result in an exit package of significant dollars.

What Eldridge apparently fails to understand is there are others who have potential claims against him and the apparent conspiracy to defame Gardner and others that began with emails as early as December 12, 2018.

There is no question it is past time for Eldridge to go. Four months have passed since he and attorney Arrigo Carotti began developing a narrative to defame the character and reputation of Gardner.

It has been a month since council deadlocked in a 6-6 vote on a motion to fire Eldridge, allowing him to remain in his position as administrator.

Since that vote, new information has been uncovered through Freedom of Information Act requests that point to a joint effort by Eldridge, Carotti and former chairman Mark Lazarus to develop a narrative that could be brought to SLED for an investigation of Gardner.

Eldridge requested the SLED investigation on December 20, 2018 after Carotti completed a five-page memo containing a narrative for which there were no facts to substantiate the authenticity of the memo’s narrative.

The memo was completed after Lazarus, Eldridge, Carotti and council member Gary Loftus listened on December 19, 2018 to a portion of a recording of a November 30, 2018 lunch meeting between Gardner, Luke Barefoot and Myrtle Beach Regional Economic Development (EDC) officials Sandy Davis and Sherri Steele.

On that recording, Carotti and Eldridge alleged there was evidence of attempted extortion of EDC by Gardner and/or Barefoot.

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County Says No to Secret Negotiations on Hospitality Fees

March 29, 2019 8:30 AM
County Says No to Secret Negotiations on Hospitality Fees

Horry County Council members have given a resounding NO to holding secret negotiations with representatives from the municipalities about hospitality fees and possible funding for I-73.

The City of Myrtle Beach proposed discussions behind closed doors by sending a confidentiality agreement to the county and the other seven municipalities in Horry County. The city is trying to couch any discussions on hospitality fees as a resolution conference with regard to the lawsuit it recently filed against Horry County over the subject. The city said S.C. Rules of Procedure Section 408 applies to the discussions.

In the very best interpretation of the city’s position, this is a stretch.

The city filed its lawsuit against the county claiming the county’s continued collection of the 1.5% portion of the hospitality fee beyond January 1, 2017 is illegal. The complaint was structured in a way that a class action lawsuit (municipalities v the county) could be requested.

However, to date no other municipality has joined the lawsuit and no judge has certified a class action.

Therefore, any negotiations that includes representatives from other than Myrtle Beach and Horry County couldn’t truly be considered a dispute resolution conference as it would include third parties not currently included in the lawsuit.

More importantly, any discussions about dividing public tax revenues or spending public tax dollars for public projects by public agencies should be held in the open.

What appears to have happened is Myrtle Beach jumped the gun on the hospitality fee issue. It hurried a city ordinance through two readings in order to capture all hospitality tax, 2% on just prepared food and beverages, allowed under current state law, collected by the city to remain in Myrtle Beach tax coffers.

Myrtle Beach next filed its lawsuit against Horry County claiming the original hospitality tax ordinance passed by Horry County with consent of the cities in late 1996 expired on January 1, 2017. The original ordinance placed a 2.5% tax on all accommodations, prepared food and beverages and tickets sold within the county. Of that, 1.5% collected countywide was specifically designated to pay off the bonds for the Ride I projects.

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Will the Deep Six Continue to Allow the Administrator and Attorney to Embarrass Horry County?

March 25, 2019 4:26 AM
Will the Deep Six Continue to Allow the Administrator and Attorney to Embarrass Horry County?

A specially called meeting of Horry County Council tonight is scheduled to discuss renewing the contract of county administrator Chris Eldridge, which expires April 21, 2019.

What is really to be discussed here is whether council members expect Chairman Johnny Gardner to continue to have attempt to work with Eldridge and county attorney Arrigo Carotti after those two were unsuccessful in an attempt to smear Gardner even before he took office on January 1, 2019.

Six council members, Harold Worley, Dennis DiSabato, Tyler Servant, Cam Crawford, Gary Loftus and Bill Howard, the Deep Six as I call them, voted against firing county administrator Chris Eldridge on March 5th, after the results of a SLED investigation cleared Gardner of allegations of wrongdoing lodged by Eldridge and county attorney Arrigo Carotti.

Three of them, Worley, DiSabato and Loftus, claimed the results of the SLED investigation did not warrant firing Eldridge. The other three, Crawford, Servant and Howard, didn’t even have the courtesy to explain to the collected citizens viewing the proceedings their reasons for voting as they did.

Gardner said he has no confidence in either Carotti or Eldridge.

“People will never understand how difficult it was for me to remain calm and move forward with the business of the county with those allegations against me,” Gardner said. “But, I knew I didn’t do anything wrong and I trusted in the system, a criminal justice system I have been a part of for over 30 years, to conclude the truth. Now, after a SLED investigation exonerated me of any wrongdoing, I find that the administrator and attorney tried to rig the investigation against me.”

Through emails obtained through Freedom of Information Act requests by media, we know as early as December 12, 2018, Carotti and Eldridge in concert with former chairman Mark Lazarus were constructing a version of conversations, none of which any of the three were part of, in order to allege  wrongdoing by Gardner.

Carotti authored a five-page memo based entirely on hearsay. The memo was completed December 19, 2018, and Eldridge forwarded it to SLED December 20, 2018 after the memo was leaked to a Columbia media outlet.

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