May 4, 2020 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 338 Meeting of the Johnston County Board of Commissioners May 4 , 2020 10 00 am The Johnston County Board of Commissioners met in regular session Monday , May 4 , 2020 at 10 00 am in the Second Floor Meeting Room of the Public Library of Johnston County and Smithfield located at 305 E Market Street in Smithfield , North Carolina The following members were present Present Chairman Ted G Godwin , Vice Chairman Chad M Stewart , Jeffrey P Carver , Larry Wood , Tony Braswell , Patrick E Harris , and RS “ Butch ” Lawter , Jr Absent None Also Present County Manager Rick J Hester , Clerk to the Board Paula G Woodard , Finance Officer and Assistant County Manager J Chad McLamb , and County Attorney Jennifer J Slusser Chairman Ted G Godwin called the meeting to order at 10 00 am Commissioner Patrick E Harris opened the meeting with a prayer Chairman Godwin led everyone in the Pledge of Allegiance to the American Flag 1 Approval Discussion of Agenda Upon a motion by Commissioner Patrick E Harris , seconded by Commissioner Butch Lawter , and carried by unanimous vote , the Board approved the agenda as presented 2 Consent Agenda Items Upon a motion by Commissioner Tony Braswell , seconded by Commissioner Patrick E Harris , and carried by unanimous vote , the Board approved the consent agenda items as follows A Approval of Minutes – April 6 , 2020 10 00 am B Department of Transportation – Additions to System The Board concurred with the Department of Transportation’s recommendation to add the following roads to the State Maintained System Prestwood Lane , River Mist Trail , and Haven Ridge Drive – Prestwood Subdivision – Wilders Township Shadowbark Drive SR 3468 , Spring Meadow Drive , Chaparral Trail , Trailblazer Lane , and Saddle Horn Court – The Bluffs of Southfort Plantation – Cleveland Township Polaris Avenue and Sirius Street – Cleveland Springs Phase IV – Cleveland Township Whistle Stop Lane – Gardner’s Place Phase 1 – Boon Hill Township C Call for Public Hearing – Proposed County Budget for FY 2020 - 2021 The Board scheduled a public hearing for the June 1 , 2020 10 00 am meeting on the proposed budget for FY 2020 – 2021 D Proclamation – Memorial Day 2020 , adopted as follows Memorial Day Proclamation Johnston County Board of Commissioners May 25 , 2020 WHEREAS , on Memorial Day , America undertakes its solemn duty to remember the brave Americans who sacrificed their lives for the cause of freedom and the security of our nation ; and WHEREAS , we are constantly reminded that there are those in the world who would attempt to deprive us of our freedom and undermine our nation’s very foundation ; andPage339 May 4 , 2020 – 10 00 am Continued WHEREAS , military men and women from Johnston County have served our nation throughout American history with 248 Johnston County service members losing their lives in action in WWI , WWII , the Korean War , the Vietnam War , the Gulf War , and the War in Iraq and Afghanistan ; and WHEREAS , by honoring these proud Soldiers , Sailors , Airmen , Marines and Coast Guardsmen lost throughout our country’s history , we renew our commitment to upholding the democratic ideals they fought and died to preserve ; and WHEREAS , the citizens of Johnston County must never take for granted our privileges and freedom or forget to give thanks and honor to those who risk their lives so that we may enjoy our many blessings NOW , THEREFORE , the Johnston County Board of Commissioners does hereby proclaim May 25 , 2020 as Memorial Day in Johnston County and urges citizens to remember the bravery of those who gave their lives , so that their sacrifices serve as a reminder of the cost of our freedom th Adopted this the 4 day of May , 2020 E Proclamation – EMS Week – May 17 - 23 , 2020 , adopted as follows Proclamation Emergency Medical Services Week May 17 – 23 , 2020 WHEREAS , emergency medical services is a vital public service ; and WHEREAS , the members of emergency medical services teams are ready to provide lifesaving care to those in need 24 hours a day , seven days a week ; and WHEREAS , access to quality emergency care dramatically improves the survival and recovery rate of those who experience sudden illness or injury ; and WHEREAS , the emergency medical services system consists of emergency physicians , emergency medical technicians , paramedics , firefighters , educators , administrators , telecommunicators and others ; and WHEREAS , the members of emergency medical services teams , whether career or volunteer , engage in thousands of hours of specialized training and continuing education to enhance their lifesaving skills ; and WHEREAS , it is appropriate to recognize the value and the accomplishments of emergency medical services providers by designating Emergency Medical Services Week NOW , THEREFORE BE IT RESOLVED , that the Board of Commissioners of Johnston County , does hereby proclaim May 17 – 23 , 2020 as Emergency Medical Services Week in Johnston County , in recognition of this event th Adopted this the 4 day of May , 2020 F Social Services – Elder Abuse Awareness Day – June 15 , 2020 , adopted as follows Proclamation Elder Abuse Awareness Day June 15 , 2020 Whereas , Johnston County includes over 21,000 citizens age 65 and older that deserve to live safely with dignity and as independently as possible , with the supports they need ; and Whereas , elder abuse is most often defined as any act that harms a senior or jeopardizes his or her health , safety or welfare ; and Whereas , Johnston County’s older population is a vital , important part of the community that contributes to the social and cultural education of future generations ; and Whereas , identifying , reporting and eliminating abuse , neglect and exploitation to older persons is each community’s responsibility ; and Whereas , all residents should watch for signs of physical abuse , withdrawal , depression , anxiety , fear , and living without necessities such as food , heat , air and medicine and make it known to proper institutions Now Therefore We , the Johnston County Board of Commissioners does hereby proclaim June 15 , 2020 as Elder Abuse Awareness Day in Johnston County and encourages everyone to commit to protecting the safety and future of our older citizens th Adopted this the 4 day of May , 2020 G Finance – Approval of Audit Contract for Year Ending June 30 , 2020 The Board approved the audit contract for year ending June 30 , 2020 with Thompson , Price , Scott , Adams & Co , as submitted in the agenda packet Page340 May 4 , 2020 – 10 00 am Continued H Health Department – Approval of FY 2021 Fee Schedules The Board approved the fee schedules for Fiscal Year 2021 for the Behavioral Health Division , Preventive Health Division , and Environmental Health Division as submitted in the agenda packet I Lease Agreement for Emergency Services Space The Board approved a lease agreement for property located at 5987 US Hwy 301 , Four Oaks , for a term of five years with the right to renew for an additional two terms at 3,64583 per month for years 1 - 3 and 3,750 for years four and five J Tax Releases & Refunds – 03 16 2020 – 04 15 2020 Motor Vehicle Release Refund Report Year Bill # Acct # Name Tran Type Paid 2018 2003 - 649063 1904 - 671620 Poole Paving and Striping of NC LLC Overpayment 18827 Real Personal Property Releases TRANS DATE TIME USER YR BILL # ACCT # TAXPAYER NAME AMOUNT 4 6 2020 12 47 00 PM ALassiter 2019 - 109014 2000204265 YOUNITY TRANSPORTATION 19331 Real Personal Property Refunds TRANS DATE TIME USER YR BILL # ACCT # TAXPAYER NAME AMOUNT 3 18 2020 10 37 56 AM ajsoutherland 2019 - 69792 63122531 NARRON , ANTHONY VAN 3,92305 3 18 2020 12 57 40 PM jevans 2019 - 69792 63122531 NARRON , ANTHONY VAN 3,84235 3 20 2020 11 06 46 AM Jodee Langdon 2019 - 73638 2000189437 PARKER , SHEILA 1,28042 3 20 2020 1 58 57 PM Jodee Langdon 2019 - 11439 2000070012 BOOK , SUE H 79430 3 23 2020 11 50 56 AM jevans 2019 - 19610 2000107895 CECENA , GLADY AZUCENA 10532 RIVERA 4 2 2020 4 25 49 PM tcronan 2019 - 48022 2000053934 IVEY , CHARLIE EARL JR 19639 4 2 2020 4 28 17 PM tcronan 2019 - 80145 2000197577 RAMIREZ , CRISTIAN OMMAR 11007 OLIVA 4 3 2020 11 09 50 AM tcronan 2019 - 33461 2000114783 FLORES , HONORATO CRUZ 17500 4 6 2020 8 46 17 AM cfutch 2019 - 3733 2000155504 ANDERSON , TANYA 10201 4 6 2020 12 14 01 PM jmorrow 2019 - 5881 2000176103 BALL , RICHARD SCOTT 30769 4 9 2020 11 25 34 AM jmorrow 2019 - 95061 2000160998 TART , LLOYD T 36928 4 14 2020 10 40 02 AM tcronan 2019 - 108567 2000082418 SIMPSON , INDIE BELLE 15123 4 15 2020 3 23 08 PM LOCKBOX 2019 - 73659 2000024699 PARKER , JOHN STEVEN 52497 North Carolina Vehicle Tax System - Pending Refund Report – March 2020 100 + Payee Name Bill # Transaction Refund Total Change # Reason BAILEY , 0052262902 123109262 Adjustment 23028 ROBERT 2727 WAYNE 25755 WESLEY , 0050486509 182466051 Military 6361 CHARLES 4855 DANIEL 3000 14216 April 21 , 2020 This is to certify that , as authorized by the Board of Commissioners on December 11 , 2000 , I have approved the following tax releases and refunds under 100 , as recommended by the County Tax Administrator , Jocelyn Andrews A complete record of this information is on file in the County Finance Office Totals from 3 15 20 to 4 15 20 Tax refunds - Personal Real Property 31681 Tax releases - Personal Real Property 3330 Recommended by Tax Administrator Jocelyn Andrews Approved by Finance Director J Chad McLamb Page341 May 4 , 2020 – 10 00 am Continued 3 COVID - 19 Updates Health Director Dr Marilyn Pearson presented the following information to the Board She stated as of yesterday , the County has 174 total cases of COVID - 19 , 15 deaths , and 11 patients in the hospital Dr Pearson stated it is not a surprise that the number of positive cases are increasing simply because more tests are being done PagePage pageNumber5342 May 4 , 2020 – 10 00 am ContinuedPagePage pageNumber6343 May 4 , 2020 – 10 00 am Continued At the inquiry of Commissioner Tony Braswell , Dr Pearson reported the higher number of cases in zip code 27520 is mainly due to an outbreak at a nursing home facility Emergency Services Director Kevin Hubbard reported the State is continuing to send Personal Protective Equipment PPE as it becomes available Mr Hubbard stated while the County does have a good supply of PPE now , because he is uncertain of the future , he would like to have a better inventory to be prepared for a worst - case scenario Mr Hubbard also reported the First Responder Program was reinstituted last week , and they continue to follow the proper safety protocols to protect the firefighters Mr Hubbard thanked the Fire Departments as well as the 911 - Communications Department for their assistance with this program Mr Hubbard informed the Board that this week is Hurricane Preparedness Week and while the staff continues to respond to the COVID - 19 Pandemic , they must also turn their attention to preparing for the upcoming hurricane season Mr Hubbard stated the response to a hurricane event during the COVID - 19 Pandemic period must be different from the average response and staff has to prepare now He noted sheltering could become an issue because social distancing will most likely still be in effect Mr Hubbard stated the Emergency Services Department is beginning to look at a modified response scenario , but he is hopeful this hurricane season will be quiet Chief Building Inspector Shane Hudson stated the Inspections Department has continued to remain steady throughout the COVID - 19 Pandemic Mr Hudson reported the staff performed approximately 7,500PagePage pageNumber7344 May 4 , 2020 – 10 00 am Continued inspections in March and approximately 6,600 in April Mr Hudson stated they have changed their practices to account for increased health and safety measures in light of COVID - 19 , but they continue to operate as close to normal as possible Mr Hudson stated the increased safety measures are important for the staff as well as the public with the goal of keeping everyone as healthy as possible Social Services Director Scott Sabatino stated his staff has been working hard to process the increase in new applications coming in from citizens He stated the Department issued 1,376,530 worth of food stamps during the month of April Mr Sabatino reported that during April the staff received over 1,000 new applications for food stamps and over 1,000 new applications for Medicaid Mr Sabatino reported on other increased benefits the Department is processing due to the COVID - 19 Pandemic He noted the Department is utilizing teleworking and staggering shifts wherever possible in an effort to spread employees out and minimize the risk of exposure , but still respond to the needs of the citizens Commissioner Braswell commented that he sits on the DSS Board as the Commissioner representative and he can report the DSS staff has been working hard to process all the new applications and benefits as a result of the COVID - 19 Pandemic while continuing to keep up with their regular workload 4 Public Comments The Chairman reported the Clerk had received no e - mails for the Public Comment period ; however , he has received various comments and opinions from citizens regarding the Governor’s stay at home order Chairman Godwin stated many comments he has received express a desire to begin reopening the economy The Commissioners briefly discussed the current economic situation in Johnston County , how the COVID - 19 Pandemic has impacted people and businesses everywhere , and the need for local officials to have the ability to look at restrictions on a county by county basis The Commissioners also discussed how the COVID - 19 Pandemic will create a new normal once everything begins to reopen 5 Brogden Fire Department – Request for Tax Exempt Loan Status Chairman Ted G Godwin recused himself from the discussion and vote on this item and turned the meeting over to Vice Chairman Chad M Stewart Finance Director and Assistant County Manager Chad McLamb reported the Brogden Rural Fire Department , Inc is requesting the Board to adopt a resolution approving tax exempt loan status so they can borrow up to 250,00000 from KS Bank for the purchase of a 2020 US Tanker Truck at an interest rate of 260 with a 10 year term Mr McLamb stated financing proposals were requested with three received by the fire department Mr McLamb stated he has reviewed the proposals and reports that the proposals received from KS Bank and the Civic Federal Credit Union were the same ; therefore , he recommends financing through either institution Brogden Fire Department Chief Chad Ward stated the fire department is requesting to secure financing through KS Bank Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner Patrick E Harris , and carried unanimously , the Board adopted the following resolution approving tax exempt loan status for the Brogden Rural Fire Department , Inc NOW , THEREFORE , BE IT HEREBY RESOLVED , that the Board of Commissioners of Johnston County , North Carolina , does hereby approve a tax - exempt loan to the Brogden Rural Fire Department , Inc the “ FD ” , from KS Bank in an amount up to 250,00000 for the purchase of a 2020 US Tanker Fire Truck RESOLVED , FURTHER , that the approval of the loan to the FD set forth above is given solely for purposes of the public approval requirements for tax - exempt financing applicable to the FD because of Section 150 e 3 and Section 147 f of the Internal Revenue Code of 1986 , as amended , and such approval does not obligate the County or its Board of Commissioners in any way regarding repayment of the debt Vice Chairman Stewart turned the meeting back over to Chairman Godwin PagePage pageNumber8345 May 4 , 2020 – 10 00 am Continued 6 Public Hearing – New Detention Center Financing and Refinancing of Existing County and Water District Debt Advertised in The News & Observer - April 24 , 2020 Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner Tony Braswell , and carried unanimously , the Board voted to sit simultaneously as the Johnston County Board of Commissioners and the Governing Body of the Brogden , Buffalo , Ingrams Township , Meadow , O’Neals , and Princeton - Kenly Water Districts The Chairman announced that this was the date , place and hour fixed by the Board of Commissioners for a public hearing concerning a the execution and delivery of one or more long - term installment financing contract s with the Johnston County Finance Corporation the “ Corporation ” or one or more third parties to finance all or a portion of the costs of i the acquisition , construction and equipping of one or more new buildings to be used as public safety facilities for Johnston County , including acquisition of necessary land and rights - of - way , ii any related improvements and iii any “ preliminary expenditures ” related to the foregoing architectural , engineering , surveying , soil testing , reimbursement bond issuance and similar costs that are incurred prior to commencement of acquisition or construction , but excluding land acquisition , site preparation and similar costs incident to commencement of construction collectively , the “ 2020 Project ” and b a proposed plan of refinancing of all or a portion of certain existing obligations of the County and one or more of the Districts collectively , the “ Prior Indebtedness ” The proposed plan of financing for the 2020 Project involves the entry by the County into one or more long - term installment financing contract s with the Corporation or one or more third parties who will provide the County with up to 60,000,000 pursuant to the terms of said one or more long - term installment financing contract s , which amounts will be applied to provide long - term financing for the 2020 Project The proposed plan of refinancing involves the entry by the County into one or more installment financing contracts with the Corporation or a third party in an aggregate principal amount not exceeding 112,000,000 , the proceeds of which would be used i to refinance all or a portion of one or more installment financing contracts previously executed and delivered by the County , which prior installment financing contracts paid all or a portion of the costs of acquiring , constructing and equipping various public facilities and related improvements and costs collectively the Refinanced Projects , ii to refinance all or a portion of one or more existing water revenue bond obligations of the County , iii to refinance all or a portion of one or more existing revolving loan obligations of the County , iv to refinance all or a portion of an existing revolving loan obligation of one of the Districts and v to refinance all or a portion of one or more installment financing contracts the “ Prior District Contracts ” previously executed and delivered by one or more of the Districts through the purchase of one or more refunding installment financing contracts to be executed and delivered by one or more of said Districts the “ District Refunding Contracts ” The Districts include one or more of the following Brogden Water District ; Buffalo Water District ; Ingrams Township Water District ; Meadow Water District ; O’Neals Water District ; and Princeton - Kenly Water District The County’s obligations under said one or more long - term installment financing contracts will be secured by a security interest in or lien upon all or some portion of the District Refunding Contracts and also by a lien upon or security interest in all or some portion of i the 2020 Project and or in all or some portion of the real property on which the 2020 Project will be located and or ii the Refinanced Projects and or in all or some portion of the real property on which the Refinanced Projects are located A District’s obligations under its respective District Refunding Contract s will be secured by a security interest in or lien upon all or some portion of the projects financed by the respective Prior District Contract s or in all or some portion of the real property on which such projects are located The plan of financing and refinancing was described in the notice of public hearing published in the SouthEast Zone Edition of The News & Observer on April 24 , 2020 the “ Notice ” The Board of Commissioners acting in such capacity and as the governing body of each of the Districts first ratified and approved the designation of the meeting as a public hearing on the proposed plan of financing and refinancing , the publication of the Notice and the call of the public hearing The Chairman announced that no written statement relating to said matters had been received by the Clerk or the Director of Finance It was then announced that the public hearing was closed PagePage pageNumber9346 May 4 , 2020 – 10 00 am Continued 7 Finance – Resolutions for New Detention Center Financing and Refinancing of Certain Existing County and Water District Debt Debt Manager Martha Lasater submitted resolutions to the Board for the new Detention Center financing and refinancing of certain existing County and water district debt Ms Lasater requested the Board to pull the capital project ordinance as was submitted in the agenda packet She stated the capital project ordinance would be revised and submitted for the Board’s approval at a later meeting Ms Lasater noted that although the resolution calls for an amount not to exceed 60,000,000 for the Detention Center , staff is pleased to report that based on the recent construction bids received , that amount will be significantly less The Chairman introduced the following resolution , a summary of which had been provided to each Commissioner , a copy of which was available with the Clerk to the Board and which was read by title RESOLUTION APPROVING INSTALLMENT CONTRACT FINANCING FOR PUBLIC SAFETY PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT UP TO 60,000,000 ; RESOLUTION APPROVING REFINANCING OF CERTAIN EXISTING OBLIGATIONS OF THE COUNTY AND OF VARIOUS WATER DISTRICTS CREATED BY THE COUNTY IN AN AGGREGATE PRINCIPAL AMOUNT UP TO 112,000,000 ; THE EXECUTION AND DELIVERY BY THE JOHNSTON COUNTY FINANCE CORPORATION OF LIMITED OBLIGATION BONDS RELATED THERETO ; AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS IN CONNECTION THEREWITH ; AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS WHEREAS , the Board of Commissioners the “ Board ” desires to approve a proposed plan of financing in an aggregate principal amount of up to 60,000,000 , the proceeds of which would be used to finance all or a portion of the costs of i the acquisition , construction and equipping of one or more new buildings to be used as public safety facilities for Johnston County , including acquisition of necessary land and rights - of - way , ii any related improvements and iii any “ preliminary expenditures ” related to the foregoing architectural , engineering , surveying , soil testing , reimbursement bond issuance and similar costs that are incurred prior to commencement of acquisition or construction , but excluding land acquisition , site preparation and similar costs incident to commencement of construction collectively , the “ 2020 Project ” ; WHEREAS , the proposed plan of financing for the 2020 Project involves the entry by the County into one or more long - term installment financing contract s pursuant to North Carolina General Statutes § 160A - 20 , as amended , with the Johnston County Finance Corporation the “ Corporation ” or one or more third parties who will provide the County with up to XX , 000,000 pursuant to the terms of said one or more long - term installment financing contract s , which amounts will be applied to provide long - term financing for the 2020 Project ; WHEREAS , the Board also desires to approve a proposed plan of refinancing in an aggregate principal amount of up to 112,000,000 , which plan would involve the entry by the County into one or more installment financing contract s , pursuant to North Carolina General Statutes § 160A - 20 , as amended , with the Corporation , the proceeds of which would be used i to refinance all or a portion of one or more installment financing contracts previously executed and delivered by the County the “ Prior County Contracts ” , which Prior County Contracts paid all or a portion of the costs of acquiring , constructing and equipping various public facilities and related improvements and costs collectively the Refinanced Projects , ii to refinance all or a portion of one or more existing water revenue bond obligations of the County the “ Prior County Revenue Bonds ” , iii to refinance all or a portion of one or more existing revolving loan obligations of the County the “ Prior County Revolving Loans ” , iv to refinance all or a portion of an existing revolving loan obligation of one of the Districts the “ Prior District Revolving Loan ” and v to refinance all or a portion of one or more installment financing contracts the “ Prior District Contracts ” and , collectively with the Prior County Contracts , the Prior County Revenue Bonds , the Prior County Revolving Loans and the Prior District Revolving Loan , the “ Prior Indebtedness ” previously executed and delivered by certain water districts created by the County collectively , the “ Districts ” through the purchase by the County of one or more refunding installment financing contracts to be executed and delivered by one or more of said Districts the “ District Refunding Contracts ” ; WHEREAS , the County’s obligations under said one or more long - term installment financing contract s will be secured by a security interest in or lien upon all or some portion of the District Refunding Contracts and also by a lien upon or security interest in all or some portion of i the 2020 Project and or in all or some portion of the real property on which the 2020 Project will be located and or ii the Refinanced Projects and or in all or some portion of the real property on which the Refinanced Projects are located ;Page0347 May 4 , 2020 – 10 00 am Continued WHEREAS , A District’s obligations under its respective District Refunding Contract s will be secured by a security interest in or lien upon all or some portion of the projects financed by the respective Prior District Contract s or in all or some portion of the real property on which such projects are located ; WHEREAS , as part of said proposed plan of financing for the 2020 Project , the Corporation will execute and deliver one or more series of Limited Obligation Bonds representing an undivided right to receive payments under said under said one or more long - term installment financing contract s in an aggregate principal amount not exceeding 60,000,000 to finance the advancement of moneys to the County pursuant to said one or more long - term installment financing contract s between the County and the Corporation ; WHEREAS , as part of said proposed plan of refinancing of the Prior Indebtedness , the Corporation will execute and deliver one or more series of Limited Obligation Bonds representing an undivided right to receive payments under said under said one or more long - term installment financing contract s in an aggregate principal amount not exceeding 112,000,000 to finance the advancement of moneys to the County pursuant to said one or more long - term installment financing contract s between the County and the Corporation ; and WHEREAS , there have been submitted to this meeting draft forms of the following documents the “ Financing Documents ” with respect to a the proposed plan of financing for the 2020 Project and b the proposed plan of refinancing of the Prior Indebtedness and the related projects 1 an Installment Financing Contract , proposed to be dated on or about July 1 , 2020 , between the County and the Corporation as counterparty the “ Contract ” , pursuant to which the Corporation will advance moneys to the County for a the costs of the 2020 Project and b the refinancing of the Prior Indebtedness , and the County agrees to make periodic installment payments the “ Installment Payments ” to repay the moneys so advanced , with or without interest , as applicable ; 2 a Deed of Trust , Security Agreement and Fixture Filing the “ Deed of Trust ” , proposed to be dated on or about July 1 , 2020 , among the County as Grantor , the Corporation or such one or more third parties as Beneficiary and the trustee named therein , by which the County would secure its obligations to the Corporation under the Contract ; 3 an Indenture of Trust , proposed to be dated on or about June 1 , 2020 the “ Trust Indenture ” , between the Corporation and the trustee named therein , as trustee the “ Trustee ” , pursuant to which there may be executed and delivered from time to time Limited Obligation Bonds , including , without limitation , the a Limited Obligation Bonds County of Johnston , North Carolina , Series 2020A the “ 2020A LOBs and b Taxable Limited Obligation Refunding Bonds County of Johnston , North Carolina , Series 2020B the “ 2020B LOBs ” and , collectively with the 2020A LOBs , the “ 2020 LOBs ” , the proceeds of which will be used to advance the moneys to the County under the Contract ; 4 a form of District Refunding Contract between the County and each participating District , to be dated the date of delivery thereof , to be executed and delivered by the County and each participating District ; WHEREAS , the obligations of the County to make Installment Payments and other payments pursuant to the Contract shall constitute limited obligations of the County payable solely from currently budgeted appropriations of the County and shall not constitute a pledge of the faith and credit of the County within the meaning of any constitutional debt limitation ; WHEREAS , no deficiency judgment may be rendered against the County in any action for breach of a contractual obligation under the Contract , and the taxing power of the County is not and may not be pledged in any way directly or indirectly or contingently to secure any moneys due under the Contract ; and WHEREAS , the Board of Commissioners desires to approve the Financing Documents and to authorize other actions in connection therewith ; NOW , THEREFORE , BE IT RESOLVED by the Board of Commissioners , as follows Section 1 All actions taken by or on behalf of the County to date to effectuate the proposed plan of financing and refinancing , including the selection of Nexsen Pruet , PLLC , as special counsel or bond counsel , are hereby ratified , approved and authorized pursuant to and in accordance with the transactions contemplated by the Financing Documents Section 2 The Board of Commissioners hereby finds and confirms that i the 2020 Project and the financing thereof by an installment financing contract is necessary and expedient for the County ; ii financingPage1348 May 4 , 2020 – 10 00 am Continued of the 2020 Project by an installment financing contract , under the circumstances , is preferable to a bond issue by the County ; iii the sums to fall due under said installment financing contract are adequate and not excessive for their proposed purpose ; iv the County’s debt management procedures and policies are good and its debt will continue to be managed in strict compliance with law ; v the increase in taxes , if any , necessary to meet the sums to fall due under said installment financing contracts will not be excessive ; and vi the County is not in default regarding any of its debt service obligations Section 3 The 2020 Project , the financing thereof and the granting of security interests therein , all as provided in the Financing Documents referenced in this Resolution , are hereby ratified and approved Section 4 The Board acting in such capacity and as the governing body of each of the Districts hereby finds and confirms that i the refinancing of the Prior Indebtedness and the related projects by one or more installment financing contracts to be executed and delivered by the County is necessary and expedient for the County and the Districts ; ii the refinancing of the Prior Indebtedness and the related projects by one or more installment financing contracts to be executed and delivered by the County , under the circumstances , is preferable to a bond issue by the County or the Districts ; iii the sums to fall due under said one or more installment financing contracts to be executed and delivered by the County or the Districts are adequate and not excessive for their proposed purpose ; iv the County’s debt management procedures and policies are good and its debt will continue to be managed in strict compliance with law ; v the debt management procedures and policies of each of the Districts are good and their debt will continue to be managed in strict compliance with law ; vi the increase in taxes , if any , necessary to meet the sums to fall due under said one or more installment financing contracts to be executed and delivered by the County or the Districts will not be excessive ; vii the water rate structures effective in the Districts and the County are expected to be sufficient to service the principal and interest of the District Refunding Contracts and the one or more installment financing contracts to be executed and delivered by the County ; and viii neither the County nor any District is in default regarding any of their respective debt service obligations Section 5 The refinancing of the Prior Indebtedness , the purchase of the District Refunding Contracts , and the granting of security interests in the District Refunding Contracts and in the projects financed with the District Refunding Contracts , all as provided in the Financing Documents referenced in this Resolution , are hereby ratified and approved Section 6 Each of the Contract and the Deed of Trust is hereby approved in substantially the form submitted to this meeting , and each of the Chairman or Vice - Chairman of the Board or the County Manager is hereby authorized to execute and deliver each of those documents in the name and on behalf of the County , with such changes , insertions or omissions as the persons executing such documents may approve , including but not limited to changes , insertions or omissions related to obtaining a policy of municipal bond insurance with respect to the 2020 LOBs , their execution and delivery thereof to constitute conclusive evidence of such approval The County Clerk is hereby authorized to affix the seal of the County to each of said documents as may be appropriate and to attest to the same Section7 The Trust Indenture including the forms of the 2020 LOBs therein is hereby approved in substantially the form submitted to this meeting , with such changes , insertions or omissions as appropriate , including but not limited to changes , insertions or omissions related to obtaining a policy of municipal bond insurance with respect to the 2020 LOBs , as the representative s of the County executing the Contract may approve , the execution and delivery of the Contract to constitute conclusive evidence of such approval The Board hereby approves the sale of the 2020 LOBs by the Corporation in an aggregate principal amount not in excess of the amount of moneys to be advanced to the County pursuant to the Contract Section 8 Each of the Chairman or Vice - Chairman of the Board , the County Manager and the Director of Finance are authorized to approve all details of the financing of the 2020 Project and the refinancing of the Prior Indebtedness , including , without limitation , the amount advanced under the Contract and the aggregate principal amount of the 2020 LOBs which shall not exceed 172,000,000 , the maturities , the principal payments amounts and the interest amounts of the Installment Payments and the 2020 LOBs , which interest amounts calculated with respect to the 2020 LOBs shall not exceed [ 60 ] per annum on an effective interest cost basis , the prepayment terms and prices which shall not exceed [ 103 ] of the principal amount being prepaid and the Underwriters ’ discount exclusive of any original issue discount which shall not exceed [ 20 ] of the principal amount of the 2020 LOBs Execution of the Contract by the Chairman or Vice - Chairman of the Board of Commissioners or the County Manager shall conclusively evidence such approval of all such details of said financing Section 9 The Chairman or Vice - Chairman of the Board , the County Manager , the Director of Finance and the County Attorney are hereby authorized to take any and all such further action , including approval of modifications to the Financing Documents , and to execute and deliver for and on behalf of the County such other documents and certificates including , without limitation , agreements with securities depositories , purchase contract s , placement agreement s , private placement agreement s or other offering documents or memoranda , escrow deposit agreements , financing statements , appropriate tax certificates and agreements andPage2349 May 4 , 2020 – 10 00 am Continued other documents and agreements including repurchase agreements relating to the investment of the proceeds from the execution and delivery of the Contract as they may deem necessary or advisable to carry out the intent of this resolution and to effect the financing pursuant to the Contract and the other Financing Documents The County Clerk is hereby authorized to affix the seal of the County to such documents and certificates as may be appropriate and to attest to the same and to execute and deliver the same as may be needed Section 10 The Director of Finance shall prepare and file a sworn statement of debt with the LGC and the Clerk to the Board in accordance with North Carolina General Statutes Section 159 - 150 Section 11 The County covenants that , to the extent permitted by the Constitution and laws of the State of North Carolina , it will do and perform all acts and things to comply with the requirements of the Internal Revenue Code of 1986 , as amended the “ Code ” , in order to assure that interest paid with respect to the 2020A LOBs will not be includable in the gross income of the owners thereof for purposes of federal income taxation , except to the extent that the County obtains an opinion of bond counsel to the effect that noncompliance would not result in interest with respect to the 2020A LOBs being includable in the gross income of the owners of the 2020 LOBs for purposes of federal income taxation Section 12 This Resolution shall become effective immediately upon its adoption Thereupon , upon motion of Commissioner Jeffrey P Carver , seconded by Commissioner Chad M Stewart , the foregoing resolution entitled “ RESOLUTION APPROVING INSTALLMENT CONTRACT FINANCING FOR PUBLIC SAFETY PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT UP TO 60,000,000 ; RESOLUTION APPROVING REFINANCING OF CERTAIN EXISTING OBLIGATIONS OF THE COUNTY AND OF VARIOUS WATER DISTRICTS CREATED BY THE COUNTY IN AN AGGREGATE PRINCIPAL AMOUNT UP TO 112,000,000 ; THE EXECUTION AND DELIVERY BY THE JOHNSTON COUNTY FINANCE CORPORATION OF LIMITED OBLIGATION BONDS RELATED THERETO ; AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS IN CONNECTION THEREWITH ; AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS ” was passed by the following vote Ayes Commissioners Ted G Godwin , Chad M Stewart , Jeffrey P Carver , Larry Wood , Tony Braswell , Patrick E Harris , and RS “ Butch ” Lawter , Jr Noes None The Chairman then introduced the following resolution , a summary of which had been provided to each Commissioner , a copy of which was available with the Clerk to the Board and which was read by title RESOLUTION APPROVING REFINANCING OF CERTAIN EXISTING OBLIGATIONS OF VARIOUS WATER DISTRICTS CREATED BY THE COUNTY ; AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS IN CONNECTION THEREWITH AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS WHEREAS , the Board of Commissioners desires to approve a proposed plan of refinancing of all or a portion of i an existing revolving loan obligation of Brogden Water District the “ Prior District Revolving Loan ” and ii one or more installment financing contracts previously executed and delivered by one or more of the Districts the “ Prior District Contracts ” and , collectively with the Prior District Revolving Loan , the “ Prior District Indebtedness ” , which plan of refinancing would involve the purchase by the County of a refunding installment financing contract to be executed and delivered pursuant to North Carolina General Statutes 160A - 20 , as amended , by a participating District individually , a “ District Refunding Contract ” and , collectively , the “ District Refunding Contracts ” , and under it’s respective District Refunding Contract the participating District would secure the repayment by said District of the moneys advanced pursuant to such District’s District Refunding Contract by granting a security interest in all or some portion of the property financed by the Prior District Indebtedness of said District ; and WHEREAS , there have been submitted to this meeting draft forms of the following documents collectively , the “ District Refunding Contracts ” with respect to the refinancing of the Prior District Indebtedness 1 an Installment Financing Contract , proposed to be dated on or about July 1 , 2020 the “ Brogden Contract ” , between the Brogden Water District and the County as counterparty , pursuant to which the County will advance moneys to the Brogden Water District to refinance the Prior District Indebtedness described in the Brogden Contract , and the Brogden Water District agrees to make periodic installment payments to the County to repay the moneys so advanced , with interest ;Page3350 May 4 , 2020 – 10 00 am Continued 2 an Installment Financing Contract , proposed to be dated on or about July 1 , 2020 the “ Buffalo Contract ” , between the Buffalo Water District and the County as counterparty , pursuant to which the County will advance moneys to the Buffalo Water District to refinance the Prior District Indebtedness described in the Buffalo Contract , and the Buffalo Water District agrees to make periodic installment payments to the County to repay the moneys so advanced , with interest ; 3 an Installment Financing Contract , proposed to be dated on or about July 1 , 2020 the “ Ingram’s Township Contract ” , between the Ingram’s Township Water District and the County as counterparty , pursuant to which the County will advance moneys to the Ingram’s Township Water District to refinance the Prior District Indebtedness described in the Ingram’s Township Contract , and the Ingram’s Township Water District agrees to make periodic installment payments to the County to repay the moneys so advanced , with interest ; 4 an Installment Financing Contract , proposed to be dated on or about July 1 , 2020 the “ Meadow Contract ” , between the Meadow Water District and the County as counterparty , pursuant to which the County will advance moneys to the Meadow Water District to refinance the Prior District Indebtedness described in the Meadow Contract , and the Meadow Water District agrees to make periodic installment payments to the County to repay the moneys so advanced , with interest ; 5 an Installment Financing Contract , proposed to be dated on or about July 1 , 2020 the “ O’Neals Contract ” , between the O’Neals Water District and the County as counterparty , pursuant to which the County will advance moneys to the O’Neals Water District to refinance the Prior District Indebtedness described in the O’Neals Contract , and the O’Neals Water District agrees to make periodic installment payments to the County to repay the moneys so advanced , with interest ; and 6 an Installment Financing Contract , proposed to be dated on or about July 1 , 2020 the “ Princeton - Kenly Contract ” , between the Princeton - Kenly Water District and the County as counterparty , pursuant to which the County will advance moneys to the Princeton - Kenly Water District to refinance the Prior District Indebtedness described in the Princeton - Kenly Contract , and the Princeton - Kenly Water District agrees to make periodic installment payments to the County to repay the moneys so advanced , with interest ; WHEREAS , the obligations of a District to make installment payments and other payments pursuant to such District’s District Refunding Contract shall constitute limited obligations of such District payable solely from currently budgeted appropriations of such District and shall not constitute a pledge of the faith and credit of such District within the meaning of any constitutional debt limitation ; WHEREAS , each District has granted a security interest in certain water capacity contracts of such District as security for its obligations under its District Refunding Contract ; WHEREAS , no deficiency judgment may be rendered against a District in any action for breach of a contractual obligation under such District’s District Refunding Contract , and the taxing power of such District is not and may not be pledged in any way directly or indirectly or contingently to secure any moneys due under such District’s District Refunding Contract ; and WHEREAS , the Board of Commissioners , acting as the governing body of each of the Districts , desires to approve the District Refunding Contracts and to authorize other actions in connection therewith ; NOW , THEREFORE , BE IT RESOLVED by the Board of Commissioners , acting as the governing body of each of the Districts , as follows Section 1 All actions taken by or on behalf of the County or any of the Districts to date to effectuate the proposed plan of refinancing , including the selection of Nexsen Pruet , LLC , as special counsel or bond counsel , are hereby ratified , approved and authorized pursuant to and in accordance with the transactions contemplated by the District Refunding Contracts Section 2 The refinancing of the Prior District Indebtedness , and the granting of security interests in all or a portion of the property financed thereby , all as provided in the respective District Refunding Contracts referenced in this Resolution , are hereby ratified and approved Section 3 Each of the District Refunding Contracts is hereby approved in substantially the form submitted to this meeting , and each of the Chairman of the Board of Commissioners , the County Manager or the Director of Finance is hereby authorized to execute and deliver each of those documents in the name and on behalf of the respective Districts , with such changes , insertions or omissions as the persons executing such documents may approve , their execution and delivery thereof to constitute conclusive evidence of such approval The County Clerk is hereby authorized to affix the seal of the County to each of said documents as may be appropriate and to attest to the same Page4351 May 4 , 2020 – 10 00 am Continued Section 4 Each of the Chairman of the Board of Commissioners , the County Manager and the Director of Finance are authorized to approve all details of the District Refunding Contracts and the refinancing of the Prior District Indebtedness , including , without limitation , the amount advanced under each respective District Refunding Contract and the aggregate principal amount thereof , the maturities , the principal amounts and the interest amounts of the installment payments under each District Refunding Contract , which interest amount under any District Refunding Contract shall not exceed 60 per annum on an effective interest cost basis , and the prepayment terms and prices of each District Refunding Contract which shall not exceed 103 of the principal amount being prepaid Execution of a District Refunding Contract by the Chairman of the Board of Commissioners , the County Manager or the Director of Finance shall conclusively evidence such approval of all such details of said District Refunding Contract and refinancing of the Prior District Indebtedness Section 5 The Chairman of the Board of Commissioners , the County Manager , the Director of Finance and the County Attorney are hereby authorized to take any and all such further action , including approval of modifications to any or all of the District Refunding Contracts , and to execute and deliver for and on behalf of any or each District such other documents and certificates including , without limitation , agreements with securities depositories , financing statements , appropriate tax certificates and agreements and any other documents or agreements as they may deem necessary or advisable to carry out the intent of this resolution and to effect the refinancing pursuant to the District Refunding Contracts The County Clerk is hereby authorized to affix the seal of the County to such documents and certificates as may be appropriate and to attest to the same and to execute and deliver the same as may be needed Section 6 The County covenants that , to the extent permitted by the Constitution and laws of the State of North Carolina , it will do and perform all acts and things , and it will cause each of the Districts to do and perform all acts and things , to comply with the requirements of the Internal Revenue Code of 1986 , as amended the “ Code ” , in order to assure that interest paid with respect to the District Refunding Contracts will not be includable in the gross income of the owners thereof for purposes of federal income taxation , except to the extent that the County obtains an opinion of bond counsel to the effect that noncompliance would not result in interest with respect to the District Refunding Contracts being includable in the gross income of the owners thereof for purposes of federal income taxation Section 7 This Resolution shall become effective immediately upon its adoption Thereupon , upon motion of Commissioner Jeffrey P Carver , seconded by Commissioner Chad M Stewart , the foregoing resolution entitled “ RESOLUTION APPROVING REFINANCING OF CERTAIN EXISTING OBLIGATIONS OF VARIOUS WATER DISTRICTS CREATED BY THE COUNTY ; AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS IN CONNECTION THEREWITH AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS ” was passed by the Board of Commissioners of the County , acting as the governing body of each of the Districts , by the following vote Ayes Commissioners Ted G Godwin , Chad M Stewart , Jeffrey P Carver , Larry Wood , Tony Braswell , Patrick E Harris , and RS “ Butch ” Lawter , Jr Noes None Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner Chad M Stewart , and carried by unanimous vote , the Board adjourned as the Governing Body of the Brogden , Buffalo , Ingrams Township , Meadow , O’Neals , and Princeton - Kenly Water Districts and resumed session as the Johnston County Board of Commissioners 8 Finance – Resolutions Providing for the Issuance of General Obligation Bonds Debt Manager Martha Lasater requested the Board to adopt resolutions providing for the issuance of 20,000,000 general obligation public improvement bonds , to consist of 18,500,000 general obligation school bonds and 1,500,000 general obligation community college bonds Ms Lasater stated these bonds represent the second series of school bonds and the first series of community college bonds to be issued from the bonds approved by the voters in November 2018 She also requested the Board to adopt the accompanying capital project ordinance Ms Lasater stated staff further requests the Board to adopt a resolution providing for the issuance of 10,000,000 general obligation public improvement bond anticipation notes , to consist of 9,000,000 general obligation school bond anticipation notes and 1,000,000 general obligation community college bond anticipation notes Ms Lasater stated the bond anticipation notes would be issued only in the event that the 20,000,000 General Obligation Public Improvement Bonds , Series 2020 are not issued for reasons related to unfavorable market conditions caused by the COVID - 19 Pandemic Page5352 May 4 , 2020 – 10 00 am Continued The Chairman introduced the following resolution , a summary of which had been provided to each Commissioner , a copy of which was available with the Clerk to the Board and which was read by title RESOLUTION PROVIDING FOR THE ISSUANCE OF UP TO 20,000,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS , SERIES 2020 BE IT RESOLVED by the Board of Commissioners the “ Board ” of the County of Johnston , North Carolina the “ County ” Section 1 The Board has determined and does hereby find , declare and represent a i That an order the “ School Bond Order ” authorizing not exceeding 61,000,000 General Obligation School Bonds the “ School Bonds ” was adopted by the Board for the County on July 9 , 2018 , which School Bond Order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on November 6 , 2018 a ii That 20,000,000 of the Bonds authorized to be issued by the School Bond Order have been issued , designated as “ General Obligation School Bonds , Series 2019 , ” that no notes have been issued in anticipation of the receipt of the proceeds of the sale of said School Bonds , and that it is necessary to issue at this time 18,500,000 of said School Bonds in accordance with the provisions of Section 2 of this resolution a iii That the maximum period of usefulness of the facilities to be financed with the proceeds of said School Bonds to be issued is estimated as a period of 40 years from June 23 , 2020 , the date of said School Bonds , as hereinafter provided , and that such period expires on June 23 , 2060 b i That an order the “ Community College Bond Order ” authorizing not exceeding 15,000,000 General Obligation Community College Bonds the “ Community College Bonds ” was adopted by the Board for the County on July 9 , 2018 , which Community College Bond Order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on November 6 , 2018 b ii That none of the Bonds authorized to be issued by the Community College Bond Order have been issued , that no notes have been issued in anticipation of the receipt of the proceeds of the sale of said Community College Bonds , and that it is necessary to issue at this time 1,500,000 of said Community College Bonds in accordance with the provisions of Section 2 of this resolution b iii That the maximum period of usefulness of the facilities to be financed with the proceeds of said Community College Bonds to be issued is estimated as a period of 40 years from June 23 , 2020 , the date of said Community College Bonds , as hereinafter provided , and that such period expires on June 23 , 2060 Section 2 Pursuant to the School Bond Order , there shall be issued bonds of the County in the aggregate principal amount of 18,500,000 Pursuant to the Community College Bond Order , there shall be issued bonds of the County in the aggregate principal amount of 1,500,000 The Bonds issued pursuant to this Section 2 shall be designated “ Public Improvement Bonds , Series 2020 ” and dated their date of delivery the “ Bonds ” The Bonds shall be stated to mature subject to the right of prior redemption as hereinafter set forth annually , February 1 , 490,000 2022 and 2023 , 575,000 2024 , 670,000 2025 and 1,185,000 2026 through 2040 , inclusive ; provided , however , and notwithstanding the foregoing principal amortization schedule , the Chairman or Vice - Chairman of the Board , County Manager or Director of Finance , respectively , each acting on behalf of the County , may determine in connection with the sale of the Bonds that , in lieu of the serial maturities set forth above , that one or more maturities of the Bonds will be issued as term bonds with annual installments of principal , together with such other changes to the remaining serial maturities of the Bonds , all as specified by the Chairman or Vice - Chairman of the Board , County Manager or Director of Finance , respectively , either before or after the opening of bids The Bonds shall bear interest at a rate or rates to be determined by the Local Government Commission of North Carolina at the time the Bonds are sold , which interest to the respective maturities thereof shall be payable on February 1 , 2021 or such other date as is designated by the County Manager or the Director of Finance in connection with the sale of the Bonds and semiannually thereafter on August 1 and February 1 of each year or other semiannual dates designated by the County Manager or the Director of Finance in connection with the sale of the Bonds until payment of such principal sum Section 3 Each Bond shall bear interest from the interest payment date next preceding the date on which it is authenticated unless it is a authenticated upon an interest payment date in which event it shall bear interest from such interest payment date or b authenticated prior to the first interest payment date in which event it shall bear interest from its date ; provided , however , that if at the time of authentication interest is in default , such Bond shall bear interest from the date to which interest has been paid The principal of and the interest and any redemption premium on the Bonds shall be payable in any coin or currency of the United States of America which is legal tender for the payment of public and private debts on the respective dates of payment thereof Page6353 May 4 , 2020 – 10 00 am Continued Section 4 The Bonds initially will be issued by means of a book - entry system with no physical distribution of bond certificates to be made except as hereinafter provided Initially one fully registered bond certificate for each stated maturity of the Bonds in the aggregate principal amount of the Bonds of such stated maturity and registered in the name of the Securities Depository Nominee defined below , a nominee of the Securities Depository defined below , will be issued and required to be deposited with the Securities Depository and immobilized in its custody The book - entry system of the Securities Depository will evidence positions held in the Bonds by the Securities Depository’s participants , with beneficial ownership of the Bonds in the principal amount of 5,000 or any whole multiple thereof being evidenced in the records of such participants Transfers of beneficial ownership will be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants The County and the Bond Registrar will recognize the Securities Depository Nominee or the Securities Depository , as the case may be , while the registered owner of the Bonds , as the owner of the Bonds for all purposes , including payments of principal of and redemption premium , if any , and interest on the Bonds , notices and voting The principal of and any redemption premium on each Bond shall be payable to the Securities Depository Nominee or any other person appearing on the registration books of the County hereinafter provided for as the registered owner of such Bond or his registered assigns or legal representative at the office of the Bond Registrar mentioned hereinafter or such other place as the County may determine upon the presentation and surrender thereof as the same shall become due and payable Payment of the interest on each Bond shall be made by the Bond Registrar on each interest payment date to the registered owner of such Bond or the previous Bond or Bonds evidencing the same debt as that evidenced by such Bond at the close of business on the record date for such interest , which shall be the 15th day whether or not a business day of the calendar month next preceding such interest payment date , by check mailed to such person at his address as it appears on such registration books or , during the continuation of the book - entry system , by such other method of payment as the County may determine to be necessary or advisable with the concurrence of the Securities Depository Transfer of principal and interest and any redemption premium payments to participants of the Securities Depository will be the responsibility of the Securities Depository , and transfer of principal and interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners Such transfers of interest by the Securities Depository and by such participants and other nominees of such beneficial owners may be made to the owners of Bonds shown on their records on a date on or after said record date for such interest , pursuant to rules and procedures established by the Securities Depository and its participants The County and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining , supervising or reviewing records maintained by the Securities Depository , its participants or persons acting through such participants In the event that a any Securities Depository determines not to continue to act as securities depository for the Bonds or b the Director of Finance of the County determines to discontinue the book - entry system with such Securities Depository , the County may identify another qualified Securities Depository to replace the predecessor Securities Depository and , in such event , the County will make arrangements with the predecessor Securities Depository and such other Securities Depository to effect such replacement and deliver replacement Bonds , registered in the name of such other depository or its nominee in exchange for the outstanding Bonds , and all references in this resolution to any predecessor Securities Depository or Securities Depository Nominee shall thereupon be deemed to mean such other depository or its nominee If the County does not identify another qualified Securities Depository to replace the predecessor Securities Depository , the County will deliver replacement Bonds in the form of fully registered certificates in the denomination of 5,000 or any whole multiple thereof “ Certificated Bonds ” in exchange for the outstanding Bonds , as required by the predecessor Securities Depository and others Upon the request of the Securities Depository , the County may also deliver one or more Certificated Bonds to any participant of the Securities Depository in exchange for Bonds credited to its account with the Securities Depository The County and the Bond Registrar shall be entitled to rely upon the instructions of the Securities Depository as to the appropriate parties entitled to receive Certificated Bonds For purposes of this resolution “ Securities Depository ” means The Depository Trust Company , New York , New York , or other recognized securities depository selected by the County , which