The contention began almost 24 hours before Kershaw County Council’s meeting Tuesday night.
The issue: An application, made in September 2022, for a $10 million S.C. Infrastructure Investment Program (SCIIP) community impact grant to assist with paying for a potential $35 million upgrade of the county’s wastewater treatment plant from 2 million gallons per day capacity to 4 million gallons per day. The grant application included information about other funding sources, including American Rescue Plan Act (ARPA) funds totaling $10.19 million.
To at least one councilman, that appeared to contradict a commitment made to use ARPA funds to match a potential $6 million gift from the Health Services District of Kershaw County and MUSC Health for a total $12 million recreation upgrade project that would include transforming Woodward Park into a sports complex. Council has also committed $3.5 million in ARPA funds to the purchase of new first responder radios.
Based on the application’s inclusion at the end of Tuesday night’s agenda packet, it appeared that County Administrator Danny Templar planned to update council on the application during his administrator’s briefing.
Instead, as council considered approving its agenda for the evening, several motions were made, an executive session held and a lengthy discussion afterwards.
District 3 Councilman Derek Shoemake made a motion to add the executive session immediately after the agenda’s adoption to receive legal advice related to “grant funding” to be followed by a post-executive session discussion. Shoemake’s motion included formally adding the two-page application document. Shoemake said there were exigent circumstances to add the executive session due to approaching deadlines.
Although it was unclear whether or not it had been extended, the deadline for a final design for the plant was listed on the grant application as June 1, which has already passed. Permit acquisitions were scheduled for Aug. 1, with bids going out on Sept. 1. Work was scheduled to begin on Dec. 1, with a completion date of Dec. 31, 2025.
After Shoemake’s motion was seconded, Vice Chair Jimmy Jones of District 4 — leading the meeting for Chairwoman Katie Guinn whose mother had passed away the night before — explained that since the county’s acceptance of the grant was not on the agenda, he had contacted Shoemake, who had agreed to make his motion adding it.
“I intend to also make some factual comments about the public record when we come out of executive session as to the acceptance of the sewer grant,” Jones said.
After the agenda was adopted with Shoemake’s amendment, council entered executive session, which lasted a little more than 15 minutes. Afterward, Shoemake gave what he said was his “2 cents” on the matter and that he expected Templar to brief them. After providing what he said he understands of the timeline of events, Shoemake explained that the SCIIP grant is contingent on another “bucket” funds: a $12.4 million State Revolving Fund (SRF) loan.
“My understanding is that in (Templar’s) conversations with the folks who control the SRF (those) funds are almost certainly not available to us. So, even if the ARPA funds were there, the SRF funds would not be, which is a condition to getting the grant money,” Shoemake said.
While he said it would have been better if the grant issue had been addressed at first or second reading of the proposed Fiscal Year 2024 budget — which comes up for a final vote on June 27 — Shoemake said it doesn’t change the fact that the grant is contingent on the SRF funds. He added that, based on the legal opinion council received during the executive session, the SCIIP grant can be modified in an effort to still be approved.
District 2 Councilman Sammie Tucker Jr. noted that the finance committee — which he chairs and of which Shoemake and District 5 Councilman Brant Tomlinson are members — did not discuss the grant during its meetings on the proposed budget because those funds had yet to be awarded. Furthermore, and echoing Shoemake, Tucker noted that Templar had not yet had time to meet with SRF officials about those priority changes.
“So, my heavy recommendation tonight is going to be to kick this back down to the finance committee, allow us, with the administrator, to get some answers on some recommendations that he’s going to (make) tonight, and then we’ll have a plan come the 27th of June,” Tucker said.
In his presentation, Templar went back not to 2022, but 2021, when a previous iteration of council passed a resolution committing ARPA funds to “heavily invest” in sewer infrastructure, including the Southern Loop project in the West Wateree area of the county. With that priority at the time, Templar and his staff began looking at ARPA funding to update the wastewater treatment plant — and at the possible SCIIP grant as well.
“Is it something we needed to do tomorrow? No,” Templar said, “but it’s something where that math is imminent and we’re going to have to do it at some point. Whether we do it in phases or all at once, is a different discussion.”
Tuesday night, Templar estimated the plant upgrades could cost closer to $38 million.
“At the time, we did have the $9.9 million (ARPA) allocated in our budget as a line item, and we had a $12 million shortfall. So, the goal there was to go out for a SRF (loan). This is a large project; according to the state, this is a ‘high-risk’ project because we are not just putting pipes in the ground, we are putting added capacity to our wastewater treatment facility. Facilities are a much different project because that’s where everything happens — it’s not a conveyance system, it’s a processing system and there’s a lot going on there,” Templar said.
Despite that high risk, he said SCIIP ultimately awarded its grant. He said that after that, however, council reappropriated ARPA funds to radios and related items.
“We (also) had second reading to appropriate the money for recreation funds, so with that in mind, I ultimately reached out to the state to let them know that the numbers on our application, in our budget summary, were no longer accurate,” Templar said. “So, with that, we didn’t know what would be there, we didn’t know what our ability was to replace those numbers and sewer is one of our most robust departments we have in terms of revenue. So, there is true capacity there for that, (but) we just didn’t understand at the time which way we were going. We sought guidance from the state.”
Templar said state officials told them to go ahead and submit, which the county did electronically. That transmittal, he said, included a caveat that the county’s operational goals had changed but that it still wanted the money because it still has sewer upgrades to do, including the Southern Loop, the plant itself, and lift stations.
“My concern was that I did not want to take this money under false pretenses by saying we had $9.9 million in ARPA set aside when I knew we did not,” Templar said, explaining that was the reason for setting up this coming Tuesday’s meeting.
Through a series of questions, District 1 Councilman Russell Brazell had Templar confirm that taxes are no longer used to fund the county’s sewer operations because they are only funded by fees from actual sewer customers, and that the treatment plant is currently operating at about 45% capacity.
“In your professional opinion,” Brazell asked, “what would be the driving factor for us to double the capacity of the sewer (plant)?”
“Absolutely, growth,” Templar answered.
“Needed growth, or growth that’s coming whether we like it or not?”
“I would say the latter, not the former,” Templar replied.
“I’ve heard a lot of things from a lot of people, a lot of good friends, a lot of neighbors, a lot of constituents and the most pressing issue in Kershaw County is not a need for sewer,” Brazell said. “It’s a need for quality-built homes. It’s a need for homes that are built with reasonable zoning ordinances. And I think that’s something this council is working on. It’s something that this council is very keen to do. So, I’m in no rush to build a bigger sewer plant to enable outside agencies, outside developers, to ravage Kershaw County.”
Jones interrupted Brazell, stating that he was getting “off course,” but that he would let him finish, as long as he did so “real quick.”
“The point I’m try to make is this,” Brazell continued. “I’ve been a citizen of Kershaw County since 1978. I watched that sewer plant when it was built — when was that, 2006–?”
Jones interrupted him again, asking him to wrap up his comments.
“As much as I appreciate the grant, I think there are other pressing issues,” Brazell continued again. “I think we need to take care of the citizens that are here in Kershaw County. I think we need to improve facilities. I think we need to focus on fire, EMS, and I think our recreation facilities are in shambles–”
At this point, and for a third time, Jones interrupted Brazell saying they needed to move on, but thanked him for his “extended comments.”
Before he made his own comments, Jones allowed Templar to make one more point. Templar said that at this coming Tuesday’s meeting, he plans to submit, in rough form, some ideas he has — five options for sewer improvements that “are not quite the price tag” originally submitted — in the hopes of capturing at least some grant funds for sewer.
Jones then asked if anyone else had anything to say and Brazell said that he did.
“No, no, no, no, we’re good, because I’m going to have the last word,” Jones said and then added that he was going to “say some facts.”
Jones claimed that the county accepted the $10 million SCIIP grant on June 6 without council’s knowledge; that it was awarded the grant on April 24, again without council’s knowledge; and that the county committed to use $10 million in ARPA funds for the wastewater treatment expansion without council’s knowledge.
That he said, was done even when council voted for $6 million in ARPA funds to be used for the Woodward Park and other recreational facilities upgrades and the $3.5 million for first responder radios.
“Let me make myself clear: There was no misappropriation — no misappropriation has taken place because the money has not been spent or appropriated yet,” Jones said. “But — and I’m sure they’ll work with you when you go to them Tuesday — this gives our integrity … our reputation is everything, and I think this gives us a huge, great, big black eye for Kershaw County and was a poor way of doing business. I think we should have known earlier; I think we should have been made aware of this.
“Here’s the situation that I feel that we’re in: On June 6, you signed the grant award. Even though Mr. Shoemake is absolutely right about everything he said, that all these things have to be worked out, but they (the funds) were committed. They were committed and county council had no knowledge of that. At least I didn’t; maybe some of you may have. What we’re faced with now is $10 million for $10 million; we’ve got $6 million for $6 million and the council has to make a decision. I would rather the grant award had not been signed on the 45th day,” Jones said.
Templar said that happened because the county was awaiting clarification on at least one point and actually didn’t transmit the acceptance until June 9.
“But you also knew that we had committed the money,” Jones remarked.
“Yes, I did. That’s why I made the call over there,” Templar said, and then added, “Mr. Jones, also, if I may, this grant is outlined in our proviso of the current budget. It is part of our budget package … it’s the last line on page 19 of our current budget ordinance.”
Jones said he appreciated that, but still insisted that “we knew nothing about it.”
In response to a question from Tomlinson, Tucker confirmed that the matter will be sent back to the finance committee even as Templar meets with state officials. The committee will then bring back a recommendation at third reading of the budget on June 27.
Jones said he had no problem with that, but still thought that Kershaw County had suffered a “black eye.”
Following the discussion, many of the 10 people who signed up to speak during public comment expressed displeasure about the possibility that ARPA funds had been double-obligated. Comments included charges that the county was engaging in “lies and secrets ” that council was already spending money that had been allocated for other purposes; that the county has a “spending problem ” that council was not prioritizing “essential” services that serve 100% of the people, such as public safety, over “ancillary” services, such as recreation; and that the transformed Woodward Park would only serve a small number of residents, favoring out-of-county travel recreation teams that might not even choose to come here.
During council briefings, District 6 Councilman Danny Catoe called a lot of what was said during the meeting, including during public comment, false narratives.
“There’s a lot of things I heard tonight that do raise a lot of questions with me. There were a lot of things that were said tonight that I have concerns about,” Catoe said. “But there’s a lot of things, also, that are being told out in the community that are not true. They’re just not true, and it’s a false narrative. Be careful what you believe, and be careful what you’re being told because some of it is just not true.”
As part of his briefing, Brazell said that with roughly 68,000 to 70,000 people living in Kershaw County, but only around 1,800 homes that are on the county sewer system, which he said meant only around 4,500 people are county sewer customers.
“That’s only about 6% of the population. We’re a rural county; we’ll never get sewer everywhere. Sewer’s an economic development stronghold and our county knows that, and we value being able to expand it especially for that reason,” Brazell said. “I haven’t talked to anybody in Kershaw County, not one person, who said, ‘Gee, I love those houses where you can reach out and touch the next one’ … so, let the record show, we are doing the work of the people. We do care about the people. We can’t satisfy everyone in all areas, nor would I ever try to myself because I would fail miserably. But … everybody on this council cares about Kershaw County, and I think in different ways we express how we care.”
Brazell went on to say that the FY 2024 budget will be the first one he will be able to vote for since joining council. He also said he is someone who likes to look for and offer solutions. To that end, he asked Templar that to find a solution so that everyone can move forward in a positive manner.
“That’s what I think politicians should do. This backbiting, fighting and fussing and going at one another and being at one another’s throats? I’m over it. I’m not doing it anymore, I’m done fighting. I love everybody up here; I’ll tell you that right now. I love every one of you being here. Thank you for being here and thank you for caring enough to be here,” Brazell concluded.
Finishing the briefings, Jones noted that he has been on council for 17 years and in his fifth term.
“I have always fought for the truth and transparency,” he said. “We can — I don’t this is the case with this — be right on something, but if the perception is that we’re wrong with the public, we’re wrong. We’ve got to communicate, we’ve got to make sure everyone understands, and I stand by my position with this sewer grant.”
Jones concluded by saying that he would hate to see the county lose the $10 million SCIIP grant.