August 7, 2017 - 10:00 am - County Board of Commissioners Meeting Minutes

10 789 Meeting of the Johnston County Board of Commissioners August 7 , 2017 10 00 am The Johnston County Board of Commissioners met in regular session Monday , August 7 , 2017 at 10 00 am in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Chairman Jeffrey P Carver , Vice Chairman Ted G Godwin , Cookie Pope , Allen L Mims , Jr , Chad M Stewart , and Larry Wood Absent Commissioner Keith Branch Also Present County Manager Rick J Hester , Clerk to the Board Paula G Woodard , Finance Officer and Assistant County Manager J Chad McLamb , County Attorney Jennifer J Slusser , and Paralegal Deputy Clerk to the Board Dana Cuddington Chairman Jeffrey P Carver called the meeting to order at 10 00 am Commissioner Cookie Pope opened the meeting with a prayer American Legion Post 405 Pine Level led those in attendance in the Pledge of Allegiance to the American Flag 1 Approval Discussion of Agenda Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Cookie Pope , and carried by unanimous vote , the Board approved the agenda as presented 2 Consent Agenda Items Upon a motion by Commissioner Ted G Godwin , seconded by Commissioner Allen L Mims , Jr , and carried by unanimous vote , the Board approved the consent agenda items as follows A Approval of Minutes – July 10 , 2017 10 00 am and 6 00 pm 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 Tedpace Street – Williams Farm Subdivision – Pine Level Township C Health Department – Approval of Updated Preventive and Behavioral Fee Schedules The Board approved the following updated fee schedules for the Preventive and Behavioral Health Divisions Page790 August 7 , 2017 – 10 00 am ContinuedPage791 August 7 , 2017 – 10 00 am ContinuedPage792 August 7 , 2017 – 10 00 am Continued D Tax Releases & Refunds – 06 15 2017 – 07 15 2017 Motor Vehicle Release Refund Report Year Bill # Acct # Name Tran Type Paid 2012 1208 - 423694 1205 - 439311 ZINN , ALAN STEVEN Overpayment 35438 PagePage pageNumber5793 August 7 , 2017 – 10 00 am Continued Real Personal Property Releases TRANS DATE TIME USER YR BILL # ACCT # TAXPAYER NAME AMOUNT 6 19 2017 12 36 18 PM ALassiter 2016 - 24914 2000149179 DANNYS CAR CARE 16967 6 26 2017 1 47 28 PM cfutch 2016 - 95512 2000184364 WAKE ELECTRIC MEMBERSHIP CORP 1,59940 6 27 2017 9 56 03 AM ALassiter 2016 - 96827 2000178349 WATTENBARGER , BRANDON C 24422 7 5 2017 9 27 32 AM ALassiter 2017 - 200582 52894733 LEE , DANIEL EARL 10596 7 5 2017 9 28 03 AM ALassiter 2017 - 200583 52894733 LEE , DANIEL EARL 12771 7 13 2017 9 44 07 AM ALassiter 2017 - 200672 2000080093 FULLER , KATHLEEN MARGARET 15285 7 13 2017 9 45 55 AM ALassiter 2017 - 200673 2000080093 FULLER , KATHLEEN MARGARET 14680 7 13 2017 9 47 21 AM ALassiter 2017 - 200674 2000080093 FULLER , KATHLEEN MARGARET 13701 7 13 2017 9 48 32 AM ALassiter 2017 - 200675 2000080093 FULLER , KATHLEEN MARGARET 12722 7 13 2017 9 49 54 AM ALassiter 2017 - 200676 2000080093 FULLER , KATHLEEN MARGARET 11743 Real Personal Property Refunds TRANS DATE TIME USER YR BILL # ACCT # TAXPAYER NAME AMOUNT 6 16 2017 11 11 35 AM astancil 2016 - 76679 2000186778 CORTEZ , CARLOS L 69236 6 20 2017 11 26 45 AM astancil 2016 - 40805 2000115609 HERNANDEZ , JULIAN 70000 6 21 2017 1 28 08 PM astancil 2016 - 76262 2000181183 RACZKOWSKI , TANYA 18005 6 21 2017 3 18 45 PM astancil 2016 - 64600 2000148774 MOLINA , SAUL HUMBERTO 11000 6 21 2017 3 21 58 PM astancil 2016 - 79509 2000107151 ROBINSON , WILLIAM L 17039 6 26 2017 11 17 38 AM astancil 2016 - 49773 2000093221 JONES , GERALDINE 11356 6 26 2017 1 47 38 PM cfutch 2016 - 95512 2000184364 WAKE ELECTRIC 1,59940 MEMBERSHIP CORP 6 28 2017 3 30 47 PM cfutch 2016 - 65779 2000006623 MORTON , LINCOLN 21618 6 30 2017 2 52 03 PM astancil 2016 - 9181 2000130213 BEASLEY , JADA ALLEN 37699 7 10 2017 10 11 03 AM jmorrow 2016 - 76262 2000181183 RACZKOWSKI , TANYA 24919 7 10 2017 12 12 15 PM jmorrow 2016 - 49773 2000093221 JONES , GERALDINE 21949 7 12 2017 2 49 57 PM LOCKBOX 2016 - 103525 2000186255 ARCEO , GABRIELA 1,20236 North Carolina Vehicle Tax System - Pending Refund Report – June 2017 100 + Payee Name Bill # Transaction # Refund Total Change Reason MCCRAY , 0037722384 138408888 Situs error 000 SHARON 17966 SCHEFFEL 1891 5989 22064 MITCHENER 0037718756 69261400 Exempt 15701 MEMORIAL Property 11474 BAPTIST 27175 CHURCH WILSON , 0037775654 69902744 Adjustment 13650 JOHN 2100 ALEXANDER 15750 JR 64989 July 25 , 2017 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 , Sheila Garner A complete record of this information is on file in the County Finance Office Totals from 06 15 17 to 07 15 17 Tax refunds - Personal Real Property 67872 Tax releases - Personal Real Property 75189 Motor Vehicle releases refunds 13669 Recommended by Tax Administrator Sheila Garner Approved by Finance Director J Chad McLamb PagePage pageNumber6794 August 7 , 2017 – 10 00 am Continued 3 Public Comments A Industry Appreciation Award – Studio TK , Smithfield , North Carolina The Board of Commissioners and the Johnston County Economic Development Advisory Board recognized Studio TK of Smithfield for their commitment to Johnston County by honoring the company with the County’s Industry Appreciation Award which is presented to Johnston County industries quarterly Economic Development Director Chris Johnson stated Studio TK purchased the former Girsberger Facility in Smithfield several years ago and he spoke on the investment they have made in the facility which benefits all of Johnston County Mr Johnson introduced President Charlie Bell and Vice President Kevin Williams for the award presentation Mr Bell thanked everyone for the award stating he is a native of Johnston County and they are pleased to operate here Mr Bell stated they took over the Girsberger facility starting with five employees and they now employ 65 people He invited the Commissioners to visit them and see their operation B Citizen Concern – Duke Energy Electrical Transmission Line Project Randy Johnson , 935 Parkertown Road , Four Oaks , expressed his concerns with the Duke Energy Electrical Transmission Line project in Johnston County Mr Johnson specifically spoke on his concerns that affected property owners are not being properly notified of surveying or the cutting of trees Mr Johnson also expressed his concerns as to how growth in Johnston County impacts infrastructure capacities and who pays for the associated costs of meeting growth demands Mr Johnson noted a hearing on the project has been scheduled by the North Carolina Utilities Commission for October 30 , 2017 in the Johnston County Courthouse and he plans to attend that hearing C Veterans Services Office – Update on New Activities Veterans Services Officer Robert Boyette provided the Board with a brief update on new activities at the Veterans Service Office Mr Boyette reported staff is working with the Animal Services Department on a program whereby veterans could possibly adopt a pet with no adoption fee He also noted the office has placed a “ Retired Flag Drop Box ” at the Land Use Center in Smithfield for citizens to drop off old flags so the Veterans Services Office can then work with other organizations to properly dispose of them Mr Boyette also informed the Board of a new “ Veterans Coffee Event ” scheduled to be held once a month to allow veterans to come together and discuss issues He noted the first event is scheduled to be held on October 11 , 2017 from 9 00 am to 11 00 am at McCalls in Clayton At the inquiry of Commissioner Allen L Mims , Jr , Mr Boyette stated he would work with the Animal Services Department to make sure that for any veterans who wish to adopt a pet , that they also have the ability to properly care for them 4 Public Hearing – Smithfield Historical Area Revitalization Plan Incentive Grant Advertised The Smithfield Herald – July 26 , 2017 Chairman Jeffrey P Carver opened the public hearing Economic Development Director Chris Johnson explained the purpose of the public hearing is to receive public comment on an incentive grant under the Smithfield Historical Area Revitalization Plan Mr Johnson provided the Board with a background on the program stating it was created approximately 12 years ago to encourage development within the towns as well as look for opportunities to remove blighted buildings to improve the tax base Mr Johnson stated the proposal currently before the Board consists of a project by Mohamed & Sons , Inc to expand their facility known as Sound Station & Security , Inc in Smithfield At the inquiry of Commissioner Allen L Mims , Jr , Mr Johnson stated the County Attorney has reviewed the proposal He stated the project will create ten new jobs with an investment between 1 million - 3 million He stated the proposal is a five - year 100 incentive grant based on the net new taxable investment Mr Johnson introduced Director Sarah Edwards of the Downtown Smithfield Development Corporation to answer any questions PagePage pageNumber7795 August 7 , 2017 – 10 00 am Continued Ms Edwards thanked the Board for considering the proposal and offered to answer any questions Ken Taylor , 1755 Gordon Road , Clayton , addressed the Board and asked if there would be any claw back provisions in the grant agreement if the company does not meet their obligations Mr Johnson confirmed that there will be language in the agreement to protect the County if the company does not meet their financial or job creation commitments There being no further comments , the Chairman closed the public hearing Upon a motion by Commissioner Cookie Pope , seconded by Commissioner Ted G Godwin , and carried unanimously , the Board adopted the following resolution approving the incentive grant RESOLUTION OF THE JOHNSTON COUNTY BOARD OF COMMISSIONERS AUTHORIZING INCENTIVES FOR THE SMITHFIELD HISTORICAL AREA REVITALIZATION PLAN PARALLEL ECONOMIC DEVELOPMENT GRANT WHEREAS , Mohamed & Sons , Inc owners of the property commonly known as the Sound Station & Security , Inc the Company has planned to expand its commercial operation Facility in the County in exchange for the grant by the County of certain economic incentives set forth below and in the Project Summary attached to this resolution the Incentives ; WHEREAS , North Carolina General Statute 158 - 71 a authorizes the County to make appropriations to aid and encourage the location of manufacturing enterprises , industrial and commercial facilities within the County and other purposes which will increase the population , taxable property and business prospects of the County ; and WHEREAS , the Board has determined that granting the Incentives in exchange for the commitment of the Company to expand and operate the Facility in Johnston County would be beneficial to the County’s efforts to increase economic opportunities for its residents , its population , ad valorem tax revenues , sales tax revenues , and business prospects in general , including the creation of a substantial number of jobs ; and WHEREAS , the Board has , pursuant to the notice and hearing requirements of North Carolina General Statute 158 - 71 , held a public hearing to consider whether to grant the Incentives in exchange for the commitment of the Company to expand and operate the Facility in Johnston County on terms not materially inconsistent with the Project Summary attached to this resolution the Summary ; NOW THEREFORE , the Board Authorizes the Chairman of the Board and , alternatively , the County Manager , to enter into an economic development agreement on behalf of the County for the County to grant Incentives on terms not materially inconsistent with the Summary in exchange for the commitment by the Company to 1 invest One Million Dollars 1,000,000 in Facility improvements , 2 employ approximately ten 10 workers to operate the Facility and employ that number of workers to do so for a term not less than five 5 years th Adopted this the 7 day of August , 2017 PROJECT SUMMARY – Smithfield Historical Area Revitalization Plan Incentive Grant COMPANY – COUNTY August 2017 ? Schedule Grant Year 1 – 2019 Grant Year 2 – 2020 Grant Year 3 – 2021 Grant Year 4 – 2022 Grant Year 5 – 2023PagePage pageNumber8796 August 7 , 2017 – 10 00 am Continued ? The Project o The Project consists of the expansion of Mohamed & Sons , Inc ’ s owners of the property commonly known as the Sound Station & Security , Inc commercial operation at Facility located at 713 East Market Street in Smithfield , Johnston County , North Carolina The Company will expand the operation to the desired levels , modernize the equipment , and hire and train employees to fulfill new jobs with a net new total capital investment of 1 million The Company expects the Project to require the creation of 10 net new jobs ? Investment by Company o Net New Capital Investment for the Project of 1 million o 10 net new employees hired for the Project with an average salary of 31,20000 Substantial Compliance is 8 o Retention of those facility improvements , business property and net new jobs counts through Grant Year 5 ? Other Incentives for Completion and Operation of Investment by Company o Payment and performance of incentives by County are conditional on Company not being in default of any obligation to County , including the taxes and contracts o Company to begin its receipt of monetary incentives in Grant Year 1 o Incentives for investment in real property improvements are cash payments for 5 years equivalent to 780 per 1,000 in assessed value of improvements on January 1 of the year immediately preceding Grant Year 1 ? Incentives for investment in business property will be adjusted for then - current economic trends in Johnson County , correlated dollar for dollar to changes in the County’s ad valorem tax rate 5 Blackman’s Crossroads Volunteer Fire Department – Approval of Tax Exempt Loan Status Chairman Jeffrey P Carver recused himself from the discussion and vote on this item and turned the meeting over to Vice Chairman Ted G Godwin Finance Director and Assistant County Manager Chad McLamb explained the Blackman’s Crossroads Volunteer Fire Department is requesting the Board to grant them tax exempt loan status so they can borrow up to 518,00000 to purchase a 2018 E - One E - Max Rescue Pumper Truck Mr McLamb stated the Fire Department proposes to borrow the funds from First Citizens Bank at an interest rate of 267 with a 15 year term Mr McLamb stated he has reviewed the documentation and recommends the financing proposal from First Citizens Bank with monthly payments Blackman’s Crossroads Fire Chief Kenan Kearney offered to answer any questions Upon a motion by Commissioner Cookie Pope , seconded by Commissioner Chad M Stewart , and carried by unanimous vote with Chairman Jeffrey P Carver abstaining , the Board adopted the following resolution granting the Blackman’s Crossroads Volunteer Fire Department tax exempt loan status 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 Blackman’s Crossroads Volunteer Fire Department , Inc the “ VFD ” , from First Citizens Bank & Trust Company in an amount up to 518,00000 for the purchase of a 2018 E - One E - Max Rescue Pumper Truck RESOLVED , FURTHER , that the approval of the loan to the VFD set forth above is given solely for purposes of the public approval requirements for tax - exempt financing applicable to the VFD 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 Duly certified by the execution hereof and the placement hereon of the seal of said county , th this 7 day of August , 2017 PagePage pageNumber9797 August 7 , 2017 – 10 00 am Continued Vice Chairman Godwin turned the meeting back over to Chairman Carver 6 Moseley Architects – Proposed Public Safety Center Project Update Dan Mace and Todd Davis with Moseley Architects presented the following information to the Board as it relates to a proposed public safety center Page0798 August 7 , 2017 – 10 00 am Continued Mr Davis stated that as of today , there are currently 315 inmates in custody with 259 of those in the Johnston County Jail , 43 being housed in Wayne County , and 13 being housed in Sampson County He noted Johnston County’s current jail is rated for 191 inmates Mr Davis also noted the State changed the law since 2015 and the State no longer houses misdemeanor inmates which also has an impact on the local numbers Mr Mace also reminded everyone that the County is under a federal obligation to house 60 federal inmates should the need arise ; however , to date the US Marshal has not made that request At the inquiry of Commissioner Cookie Pope , Sheriff Steve Bizzell stated the federal obligation for 60 federal inmates expires in 2024 Mr Mace continued the presentation Page1799 August 7 , 2017 – 10 00 am ContinuedPage2800 August 7 , 2017 – 10 00 am ContinuedPage3801 August 7 , 2017 – 10 00 am ContinuedPage4802 August 7 , 2017 – 10 00 am ContinuedPage5803 August 7 , 2017 – 10 00 am ContinuedPage6804 August 7 , 2017 – 10 00 am ContinuedPage7805 August 7 , 2017 – 10 00 am Continued Mr Mace reported with the downtown option , the project would be done in phases with the parking deck as the recommended first phase coinciding with the relocation of the existing Board of Elections Office and the Buildings & Grounds Facility Mr Mace noted the relocation of those offices were not factored in the cost of the overall project Mr Mace reviewed the following pros and cons of the options with the Board Mr Mace offered to answer any questions At the inquiry of Commissioner Allen L Mims , Jr , Mr Mace stated with either option , a certain number of beds would be maintained in the courthouse for court holding purposes County Manager Rick Hester asked about construction times Mr Mace stated with a remote site option , if the property were already acquired by the County , it could take approximately three years to complete with design and bidding taking 10 to 12 months and the remaining two years spent on construction Mr Mace explained with the downtown option , timing is more difficult to estimate because the parking deck would have to be factored in which could take approximately 6 months for design and bidding and then 8 to 10 months for construction Mr Mace also noted time would be needed to relocate the Board of Elections and the Building & Grounds Department for the downtown option Mr Hester stated based on the latest inmate population numbers , the County will spend approximately 1 million this year housing inmates in other counties , noting those funds could go towards future debt service Mr Hester also noted with a new facility , there is the potential to house inmates from other counties Page8806 August 7 , 2017 – 10 00 am Continued Chairman Jeffrey P Carver noted the debt service on 40 million is more than 1 million per year Chairman Carver suggested holding a public hearing to allow citizens to comment on the options The Board discussed holding the public hearing at the September 5 , 2017 6 00 pm meeting , provided the rezoning special use case hearings are minimal Note At the 6 00 pm meeting , the Board scheduled the public hearing as a special meeting to be held on September 6 , 2017 at 6 00 pm 7 Recognition of Heritage Center Director Todd Johnson Commissioner Cookie Pope recognized Heritage Center Director Todd Johnson in the audience for his recent assistance to her helping to identify an old cemetery She stated through Mr Johnson’s assistance the cemetery has been saved and will not be developed over Mr Johnson thanked Commissioner Pope for the recognition 8 Public Utilities – Call for Public Hearing – 2017 Proposed Capital Improvements Plan Director of Utilities Chandra Farmer , PE , reported the Department of Utilities is preparing a draft 20 - Year Capital Improvements Plan CIP for water , wastewater and reclaimed water facilities The plan includes facility improvements and additions , new facilities , and major capital purchases for FY 17 18 through FY 37 38 Funding of improvements is proposed consisting of cash outlays , State and Federal loans and private placement loans Ms Farmer stated the proposed capital projects were included in the rate study completed in the spring of 2017 ; however , some projects have been modified , added or deleted since the rate study She stated once the updated CIP is approved , the information can be entered into the model provided in association with the rate study for additional future planning Ms Farmer continued that detailed Capital Improvements Plans are required in accordance with NCDEQ guidelines in order to qualify for State loan and grant funding She requested the Board to schedule a public hearing for the September 5 , 2017 10 00 am meeting to review and receive public comments on the proposed 2017 Capital Improvements Plan Ms Farmer stated the proposed plan will be available for public review by mid - August at the Department of Utilities Following brief discussion on the rates and fees of the Utilities Department , upon a motion by Commissioner Ted G Godwin , seconded by Commissioner Cookie Pope , and carried unanimously , the Board scheduled the public hearing to be held at the September 5 , 2017 10 00 am regular meeting 9 Public Utilities – Bulk Water Agreement with the Town of Smithfield Director of Utilities Chandra Farmer , PE , stated the County staff has been working with staff from the Town of Smithfield to update the existing “ Bulk Water Agreement Between Johnston County and the Town of Smithfield ” She explained the proposed agreement includes the following provisions ? The Town agrees to reserve a 25 MGD water supply allocation in its water treatment plant production capacity for the exclusive use of the County ? The County will have a minimum daily purchase requirement of 20 MGD same as existing agreement , but no capacity fees for the additional 05 MGD ? The County has the option to purchase up to an additional 10 MGD of capacity at the set rate until June 30 , 2019 ? The bulk commodity charge is adjusted ? The agreement term is 10 years and can be renewed automatically for an additional 5 years Ms Farmer stated the Department of Utilities is recommending approval and respectfully requests the Board’s consideration of the proposed agreement Upon a motion by Commissioner Cookie Pope , seconded by Commissioner Allen L Mims , Jr , and carried by unanimous vote , the Board approved the following agreement Bulk Water Agreement Between Johnston County and the Town of SmithfieldPage9807 August 7 , 2017 – 10 00 am Continued This contract is made and entered into this ____________ day of _________________ 2017 , by and between the Town of Smithfield hereinafter referred to as “ Town ” or “ first party ” and Johnston County hereinafter referred to as “ County ” or “ second party ” RECITALS WHEREAS , the Town can now treat and deliver more clean drinking water than it has been able to sell locally or to distribute which results in the water plant of the Town having some “ excess ” capacity ; and WHEREAS , the County will in the future face a greater need for water than its plant can produce in that the County can sell water to its customers throughout the County and even beyond the County lines through its extensive water delivery lines ; WHEREAS , the Town desires to sell some of its excess capacity to the County and the County desires to purchase same from the Town ; WHEREAS , with the assurance of a long - term supply of water from the Town , the County will have a more accurate plan to accommodate the rapid growth in population with the limits of the County ; WHEREAS , the Town’s long - term commitment to sell the County water would lower the unit cost the Town has for its water due to increased volume and larger economy of scale NOW , THEREFORE , in consideration of the mutual covenants herein contained , IT IS AGREED TERMS 1 Town Reserves The Town agrees to reserve 25 MGD million gallons per day water supply allocation in its water treatment plant production capacity for the exclusive use of the County 20 MGD shall be subject to the minimum daily purchase amount in paragraph 3 ; however , the remaining 05 MGD will not be subject to the minimum daily purchase amount 2 Near Term Future Capacity If the Town has additional excess capacity , upon written request by the County , the Town agrees to provide an additional bulk allocation of up to 10 MGD at a bulk capacity rate of 325 gallon per day , provided such a request is made in writing and payment is made by June 30 , 2019 The request for additional capacity may be made in multiple written requests prior to June 30 , 2019 for up to 10 MGD total 3 County Minimum Daily Purchase Amount The County agrees to begin purchase on July 1 , 2017 of a minimum average of 20 MGD This minimum level shall not increase over the life of this agreement 4 County Minimum Daily Withdrawal The quantity shall be determined at the end of each quarter when the total amount of potable water total gallons delivered will be divided by the number of days since the previous quarterly reading Determination of the volume shall occur on the first of January , the first of April , the first of July and the first of October In the event any of these days are non - working days , determination shall occur on the next business day the Town and County are both open In no case shall the County withdraw more than 35 MGD without the expressed approval of the Town’s Utility Director 5 Town Charges the Town shall charge the County a bulk rate of 200 per 1,000 gallons of water This rate shall become effective on July 1 , 2017 , or upon execution of this agreement ; whichever date is later The commodity charge may be adjusted by the Town annually with 90 days written notice to the County 6 Basis of Charges If the amount withdrawn is less than the minimum average purchase amount , the Town will charge the County the agreed minimum purchase amount , despite the fact the County did not withdraw said amount , and the County will receive no credit Included in each of the Town’s monthly invoices to the County shall be a statement of whether the County used more or less than the contractual minimum amount and how much surplus , or deficit , usage occurred 7 Town’s Ability to Deliver In the event the Town cannot supply water to the County or the Town cannot supply the daily volume required by the County , the average daily contractual purchase volume shall be reduced proportionally for the period involved 8 Water Delivery The County shall receive delivery of the water for the Town at two locations Clayton Booster Pump Station No 1 , located at 2886 US - 70 Highway Business West and at the Smithfield North Booster Pump Station , located at 3267 Buffalo Road The County shall pay for all booster pumping from the Town’s system to the County’s system The Town shall install meters at the delivery points to be used in determining the volume of water delivered to the County These meters shall be calibrated annually , or replaced with new meters A copy of the calibration test results will be sent to the County within thirty 30 days of the actual test The Town will take ownership of the water main along US - 70 highway that runs from the meter vault located in front of the property at 2150 US Highway 70 Business northward along with the US 70 Highway Business right - of - way to the delivery point , Clayton Booster Pump Station No 1 This portion of water main shall be Town property , for maintenance reasons All existing customers at the time of the execution of this agreement , using this portion of water main , shall remain County customers Any new connections to this water main for the purposes of direct service shall be Town customers 9 Transmission Charge the Town shall not include any amount or allowance for water transmission through the Town’s distribution system from the water plant to the points of delivery 10 Town Rights on County Mains Vice Versa the Town shall have the retail water service rights on County mains from Heath Avenue south down US - 301 South to the Holt Lake Booster pump Station , exclusive of the Hopewell - Pisgah Water District service area County water used by Town customersPage0808 August 7 , 2017 – 10 00 am Continued shall be determined by the difference in readings of the Packing plant Road , Wal - Pat Road and the Holt Lake Booster Station meters By retail water service rights , the parties mean that all retail customers excluding other municipalities or water districts in this defined area will be Town customers The Town’s water usage in the South Smithfield Water District , and all other Town customers using water from County supplied water services , shall be included in the monthly billing determination , as well as , be included in the Minimum Daily Purchase Amount The net difference in usage shall be credited or debited in the monthly invoice , as appropriate 11 Town Water Quality The Town agrees to provide water meeting all federal and state regulations with a chemical composition compatible with the County’s water The Town shall strive to provide water with total trihalomethane TTHM and halo acetic acid HAA concentrations below 90 of the EPA maximum allowable levels In the event TTHM and or HAA concentrations exceed 90 of maximum allowable levels , the minimum purchase threshold shall be suspended for each day that the TTHM and HAA concentrations exceed 90 of maximum EPA allowable levels TTHM and HAA concentrations shall be determined monthly or more often at the point s of delivery of water to the County by the Town The Town and the County agree that their respective waters must be chemically compatible In the event that any incompatibility is encountered and cannot be corrected , both parties agree to revisit the terms of the agreement 12 Term of Agreement this agreement shall be valid for ten 10 years , and shall be automatically renewed annually , thereafter for up to five 5 years The agreement may be amended by mutual consent 13 Priority of Town Water Needs The Town allocates 25 MGD to the County as part of this agreement The Town will allocate up to an additional 10 MGD if additional capacity is purchased by the County under the provisions of paragraph 2 above The remainder of the Town’s capacity will be used for Town citizens and customers The parties understand that the Town’s first obligation is to its own citizens As such , if the Town determines that its water allocation needs have increased beyond the aforementioned remainder , the Town may withdraw up to 05MGD of its existing 25 MGD allocation to the County as it deems treasonably necessary to serve its own citizens upon 1 - year written notice to the County In addition , the Town may withdraw additional allocation purchased under the provisions of paragraph 2 above as it deems reasonably necessary to serve its own citizens upon two 2 years written notice to the County If the County has paid a capacity fee for withdrawn allocation , the Town will reimburse the County the amount of capacity fee paid to the Town , per gallon , that is being withdrawn In no case shall the Town Withdraw the County’s 20 MGD of permanent allocation during the term of this agreement 14 Miscellaneous a Merge and Modification This instrument constitutes the entire agreement between the parties and supersedes any and all prior agreements , arrangements and understandings , whether oral or written , between the parties All negotiations , correspondence and memorandums passed between the parties hereto are merged herein and this agreement cancels and supersedes all prior agreements between the parties with reference thereto No modification of this instrument shall be binding unless in writing , attached hereto , and signed by the party against whom or which it is sought to be enforced b Waiver No waiver of any right or remedy shall be effective unless in writing and nevertheless shall not operate as a waiver of any right or remedy or of the same right or remedy on a future occasion c Caption and Words The captions and headings contained herein are solely for convenience and reference and do not constitute a part of this instrument All words and phrases in this instrument shall be construed to include the singular and plural number , and the masculine , feminine or neuter gender , as the context requires d Binding Effect This instrument shall be binding upon and shall insure to the benefit of the parties and their heirs , successors , and permitted assigns e North Carolina Law This instrument shall be construed in accordance with the laws of North Carolina without giving effect to its conflict of laws principles f Two Originals This instrument may be executed in two 2 or more counterparts as the parties may desire , and each counterpart shall constitute an original g Follow Through Each party will execute and deliver all additional documents and do all such other acts as may be reasonably necessary to carry out the provisions and intent of this instrument h Authority Both Local Government Bodies have full and complete authority to sell , assign and convey the contracts and assume the obligations referred to herein ; each has approved this contract at a regular meeting i Dispute Resolution Through Mediation In the event of a dispute under this agreement , the parties agree to submit the dispute to mediation by the Duke Private Adjustment Center , Inc the “ PAC ” in Durham , North Carolina or by other agreed upon mediator In the event of litigation the situs shall be the General Court of justice of the State of North Carolina in Johnston County , North Carolina IN TESTIMONY WHEREOF , said parties of the first part have hereunto set their hands and seals the day and year first above written Page1809 August 7 , 2017 – 10 00 am Continued 10 Budget Revisions Finance Director and Assistant County Manager Chad McLamb requested the Board to approve the budget revisions as listed in the agenda packet Commissioner Cookie Pope moved the Board approve the following budget revisions , seconded by Commissioner Allen L Mims , Jr , and carried by unanimous vote Finance Public Utilities REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION EXPENDITURE INCREASE DECREASE 20 85231622 Construction 32,39500 TOTAL NET EXPENDITURES 32,39500 REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION REVENUE INCREASE DECREASE 20 852336212 NCDOT Reimbursement 32,39500 TOTAL NET REVENUE 32,39500 Health REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 59157050 Non - Major Capital Assets 14,18356 10 59207050 Non - Major Capital Assets 148,75440 10 59257050 Non - Major Capital Assets 150,22464 10 59457050 Non - Major Capital Assets 445,05240 10 59607050 Non - Major Capital Assets 85,51800 TOTAL NET EXPENDITURES 843,73300 REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION REVENUE INCREASE DECREASE 10 591534154 Medicaid 14,18356 10 592034154 Medicaid 148,75440 10 592534154 Medicaid 150,22464 10 594534154 Medicaid 445,05240 10 596034154 Medicaid 85,51800 TOTAL NET REVENUE 843,73300 Sheriff REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 51001700 Vehicles 11,11879 10 51003100 Fuels 5671 10 51004300 Special Services 1,43800 10 51007414 Capital Outlay – Sheriff 5,68236 TOTAL NET EXPENDITURES 18,29586 REQUESTED CHANGE FUND BUDGET CODE LINE ITEM CLASSIFICATION REVENUE INCREASE DECREASE 10 510032106 Controlled Substance Tax 5,68236 10 510032509 Insurance Recovery 6,84379 10 510033099 Miscellaneous Revenue 5,76971 TOTAL NET REVENUE 18,29586Page2810 August 7 , 2017 – 10 00 am Continued 11 Appointments Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Cookie Pope , and carried by unanimous vote , the Board made the following appointments and granted waivers in the length of service policy where needed A Johnston - Lee - Harnett Community Action Board – Reappointed Dawn Winn - Burdo for a two year term to expire on August 31 , 2019 B Livestock Arena Management Board – Reappointed Brandy Crocker and Eric Honeycutt and appointed Paul H “ Sonny ” Howard , Jr for two year terms to expire on August 31 , 2019 Mr Honeycutt was granted a waiver in the length of service policy Other Appointments C Johnston County Airport Authority – In a unanimous vote show of hands , the Board appointed Bruce Johnson to fill an unexpired term ending March 31 , 2020 D Hospital Authority Board of Commissioners – It was the unanimous consensus of the Board to nominate the current members consisting of Jeffrey P Carver , Cookie Pope , and Jim Jenkins 12 Delinquent Tax Collection Report Tax Administrator Sheila Garner reported on the collection of delinquent taxes for the month of July 2017 She presented the following information Enforced Collections July 2017 YTD 17 18 Wage Garnishments 4 4 Bank Attachments 1 1 Levys 0 0 Foreclosures Complaints Filed July 2017 0 16 Pending Dollars Collected July 2017 000 As of July 31 , 2017 , the Tax Department has collected 0052 of the real and personal levy for 2017 The next foreclosure sale is scheduled on August 30 , 2017 The registered motor vehicle collections for July 2017 are 1,249,81695 and YTD 17 - 18 is 1,249,81695 The Board briefly discussed the ongoing revaluation project with Ms Garner as well as legislation that impacts the Tax Office 13 Manager Reports and Comments A Request to Surplus Vehicle – Sheriff’s Office Per the request of Sheriff Steve Bizzell , upon a motion by Commissioner Cookie Pope , seconded by Commissioner Larry Wood , and carried unanimously , the Board declared the following vehicle surplus that was involved in an accident and deemed a total loss by the insurance carrier 2015 Dodge Charger – VIN # 2C3CDXAT3FH880798 14 Board Reports and Comments A Stipend for Board Equalization & Review Commissioner Ted G Godwin spoke on the amount of work and responsibility involved with serving on the Johnston County Board of Equalization & Review and suggested the Board consider increasing their stipend Upon a motion by Commissioner Ted G Godwin , seconded by Commissioner Chad M Stewart , and carried by unanimous vote , the Board voted to increase the stipend levels for the Board of Equalization amp;Page3811 August 7 , 2017 – 10 00 am Continued Review by 25 , as follows Chairman shall receive 10000 per meeting that is 4 hours or less in length ; for any meeting that is over 4 hours , Chairman shall receive 17500 per meeting Members shall receive 7500 per meeting that is 4 hours or less in length ; for any meeting that is over 4 hours , each member shall receive 12500 per meeting 15 Closed Session – NCGS 14331811 a 3 – Attorney Client Privilege Commissioner Ted G Godwin moved the Board go into closed session for the purposes of consulting with an attorney employed by the Board in order to preserve the attorney - client privilege , pursuant to North Carolina General Statute 143 - 31811 a 3 Commissioner Cookie Pope seconded the motion which carried unanimously No action was taken Commissioner Chad M Stewart moved the Board adjourn closed session and resume regular session Commissioner Larry Wood seconded the motion , which carried by unanimous vote There being no further business , Commissioner Chad M Stewart moved the Board adjourn Commissioner Cookie Pope seconded the motion , which carried by unanimous vote The meeting adjourned at 12 15 pm ____________________________ Jeffrey P Carver , Chairman Paula G Woodard , Clerk to the BoardPage