Town leaders narrowly approve contract with chamber of commerce Tuesday night

BY ZACH MURDOCK

zmurdock@islandpacket.com

A divided Hilton Head Island Town Council narrowly approved a contract with its chamber of commerce at a marathon meeting Tuesday night.

The new, five-year contract between the town and the Hilton Head Island-Bluffton Chamber of Commerce includes new parameters to give town leaders closer oversight of the more than $1.5 million in tax funding the chamber receives each year as the town's designated marketing organization.

The approval comes at the dismay of Mayor David Bennett, Councilman Lee Edwards and Councilman Marc Grant, however, who asked the council to revisit the contract's details after dozens of suggestions from residents and local business leaders during two hours of public comments.

"This is certainly still a step forward," Bennett said after the meeting. "Does it go far enough? Probably not, but I'm not here to put my personal desires above that of the majority of council.

"We spoke our minds. We said what we believed," he continued. "Now we must move forward."

Ultimately, support for the highly respected members of the chamber's board of directors -- nearly 20 of whom spoke in support of the contract Tuesday -- pushed Councilman John McCann to support the document as written. He went on to cast the swing vote on the agreement.

"The most important thing to me up until 10 p.m. last night, when I finally closed shop on this, was the quality of the people at the chamber," McCann said. "These are established business people that have the credentials that they're putting on the line for this. These people have credentials that would not let anything go wrong in their shop. For that reason, I will vote in favor of this contract."

The comments echoed those of nearly all the council members, especially Bill Harkins, Tom Lennox and Kim Likins, who enthusiastically supported the document as presented.

"I see people who are community leaders with impeccable credentials -- that are true representatives for what's best for the island," Harkins said ahead of the vote. "I can sleep quite well knowing they are overseeing this contract."

LINGERING CONCERNS

There are still concerns about the contract for Bennett, Edwards and Grant after hearing the public's comments Tuesday.

More than a dozen local residents and leaders raised concerns about the contract's length, performance measurements and details.

Chamber opponent Skip Hoagland and Beaufort County Councilwoman Cynthia Bensch admonished the contract's lack of a specific clause about the chamber's responsibility under the state's public records laws.

Business leaders David Ames and Carlton Dallas both suggested a competitive bidding process should be used to award the chamber its formal designation as the town's marketer. Bennett agreed.

"As a consumer, I price shop, I learn what people are trying to charge me," Bennett said. "I don't view this as any different, and I can't find myself to support a contract that doesn't spell out a fee that is being paid for the service."

Bennett and Grant also worried the contract does not address specifically a marketing vision for the island. Bennett suggested hiring a marketing expert to help the town craft specific guidelines for marketing that the chamber could incorporate into its annual plan.

Ultimately, though, support for the chamber was too strong to delay the contract for further discussions.

"Moving forward it will be my highest priority to make sure the town adequately puts in place the proper marketing plan and we'll go from there," Bennett said.

GOING FORWARD

Tuesday's vote ends months of scrutiny over the town's negotiations with the chamber.

"It's not so much a relief to have this done but a vote of confidence that the town knows we're headed in the right direction," said chamber board chairman Jay Wiendl, general manager of the Sonesta Resort Hilton Head Island. "Now we can get back to business."

Wiendl, other board members and chamber president Bill Miles exchanged lots of hugs and handshakes after the vote.

"We're exciting about moving forward and putting these conversations behind us," Miles said. "The scrutiny, the discussions about metrics, it's good to have that formalized. Now let's get on with things."

That scrutiny was brought on largely by Hoagland, the chamber's most outspoken critic. He has led an aggressive, often vitriolic, behind-the-scenes campaign against the chamber and is locked in a lawsuit with the chamber over whether it is subject to public records laws.

"The fight continues," Hoagland said. "Quite frankly, I'm proud, even though we lost. The scrutiny we've brought is a good thing. I feel good about what I've done."

Contract Highlights

The proposed, five-year pact between the town and the chamber of commerce includes requirements that:

- The chamber maintain its current accreditation levels with the Destination Marketing Association International and the U.S. Chamber of Commerce.

- The chamber meet a dozen industry metrics that must be tracked and reviewed on a regular basis. If not met, the contract would establish a process for correcting underperformance and provide for regular inspection of certain financial records.

- The Town Council and chamber receive an annual third-party legal opinion that the chamber is in compliance with state accommodations tax and nonprofit regulations.

- The town leaders participate in the process of selecting future chamber auditing firms.

HHI Town Council Adopts New Land Management Ordinance and Zoning Map

Town Council adopted a new Land Management Ordinance (LMO) and Official Zoning Map on October 7, 2014.  Please visit the town website for more information and to view or download the new adopted documents.

http://hiltonheadislandsc.gov/misc/lmo.cfm

Hilton Head Mayor Laughlin's October 2014 Article as seen in Celebrate Hilton Head Magazine

You may also view the article at the link below.

http://www.hiltonheadislandsc.gov/council/mayorart.cfm

Telecommunication Improvements on the Island

Prior to my election as mayor, many expressed having difficulty making cell phone calls from inside their homes or having to go outside to get a signal. Increasingly, residents and visitors resorted to driveways and decks to make and receive cellular calls. The number of complaints at the front desks of the island’s major hotels and conference centers were increasingly related to the lack of cell phone coverage.

Previous town councils strictly limited cell towers because of their appearance; but smartphones and tablets became mainstream, and we had to change our approach. Residents and visitors demanded to be plugged in. Town Council identified the quality of telecommunications as one of its primary priorities and with council's support, a citizen created and led a telecommunications taskforce focused on this issue. We worked with this group to form cooperative relationships with decision makers of cell phone companies such as AT&T, Verizon and with others in the telecommunications industry and to promote improvements in service. The companies informed us that our permitting took too long and our setback requirements were sometimes so large that sites could not even be located.

These standards were appropriate when they were put into place. At that time, the design of towers could have been much more intrusive than the single monopole style used now. Towers were often more like 200-300 feet tall and made of lattice steel structures or with guyed wires stretching hundreds of feet out to each side of a tower as an anchor, all with very large equipment at the base enclosed by a cyclone fence. Tower designs and engineering have improved. Now, towers can safely be designed to be disguised like trees or steeples, even palm trees. Therefore, we decided to make expedited LMO amendments, first, to address the critical issues. Recently, we made changes with the LMO rewrite that better facilitate the installation of new infrastructure that is needed to have quality service here. We have also continued work with the telecommunications taskforce to raise awareness of this issue and to promote investment in the island’s infrastructure with these companies.

Since that time, major carriers have installed over a dozen new wireless sites as well as major network upgrades. Investments by AT&T and Verizon alone, who serve over 80 percent of the wireless calls on Hilton Head Island, have totaled over $10 Million and included support for island-wide LTE coverage. This is just a drop in the bucket for what will be needed moving forward as the number of smartphones and devices increases and technology will inevitably change. We will change with the demands, so that you don’t have to resort to driveways and decks.