February 28, 2011 - 2:30 PM - County Board of Commissioners Meeting Minutes (Special)

10 267 Meeting of the Johnston County Board of Commissioners February 28 , 2011 2 30 pm The Johnston County Board of Commissioners met in special session Monday , February 28 , 2011 at 2 30 pm in the County Manager’s Office , Room B - 206 , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Allen L Mims , Jr , Chairman , Jeffrey P Carver , Vice Chairman , Cookie Pope , Wade M Stewart , W Ray Woodall , and Tony Braswell Absent DeVan Barbour Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , David F Mills , County Attorney , and Melissa A Daughtry , Paralegal Deputy Clerk Chairman Allen L Mims , Jr called the meeting to order at 2 30 pm and the following business was transacted 1 USDA - Rural Development Letters of Conditions Wilson’s Mills to Cleveland Water Transmission Main – Division 1 Wilson’s Mills to Cleveland Water Transmission Main – Division 2 East Clayton Industrial Area 20 ” Water Main 1010 Booster Pump Station Replacement Julia Johnson with USDA - Rural Development , presented two letters of conditions for USDA - Rural Development Loan Assistance Ms Johnson explained the first letter of conditions is for the Johnston County Water Supply and Transmission Improvements Division I Project The proposed loan package would include a Rural Development loan not to exceed 3,616,000 and an applicant contribution in the amount of 157,000 for a total project cost of 3,773,000 Ms Johnson stated the interest rate on the loan would be 425 at 40 years and secured by Revenue Bonds Ms Johnson stated the second letter of conditions is for the Johnston County Water Supply and Transmission Improvements Division 2 Project which also includes the East Clayton Industrial Area 20 ” Water Main and 1010 Booster Pump Station Replacement The proposed loan package would include a Rural Development loan not to exceed 3,877,000 , a Rural Center North Carolina Economic Infrastructure Grant in the amount of 1,000,000 , a Department of Commerce Economic Development Administration grant in the amount of 637,200 and an applicant contribution in the amount of 239,000 for a total project cost of 5,753,200 Ms Johnson stated the interest rate on the loan would be 425 at 40 years and secured by Revenue Bonds Ms Johnson stated the letters of conditions are not to be considered as loan approval or as a representation as to the availability of funds Following further discussion , Commissioner Cookie Pope moved the Board adopt the following two resolutions and authorize staff to proceed with the application process Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote RESOLUTION OF THE BOARD OF COMMISSIONERS OF JOHNSTON COUNTY BE IT RESOLVED That the Board of Commissioners of Johnston County do hereby accept the conditions set forth in the Letter of Conditions for Water Supply & Transmission Improvements Division 1 dated February 28 , 2011 , the RUS Bulletin 1780 - 27 and the Loan Resolution dated February 28 , 2011 ; and That the Board of Commissioners will adopt an operating budget for Johnston County that will maintain a water use rate schedule at rates sufficient to meet all budgeted operating , replacement , and debt service expenses , and , the County may make modifications to the rate system as long as the rate schedule remains sufficient to meet budget requirements ; and , That the Chairman and Clerk to the Board be authorized to execute all forms necessary to obtain a loan from the USDA Rural Development , Rural Utility Service including , but not limited to the following forms ; Form RD 1942 - 46 Letter of Intent to Meet Conditions RUS Bulletin 1780 - 27 Loan Resolution Form RD 1940 - 1 Request for Obligation of Funds Form RD 400 - 1 Equal Opportunity Agreement Form RD 400 - 4 Assurance Agreement Form RD 1910 - 11 Applicant Certification Federal Collection Policies For Consumer Or Commercial DebtsPage268 February 28 , 2011 – 2 30 pm Continued Form AD 1047 Certification Regarding Debarment , Suspension , and Other Responsibility Matters - Primary Covered Transactions and , copy of AD 1048 for use with Lower Tier Covered Transactions Form AD 1049 Certification Regarding Drug - Free Workplace Requirements Grants Alternative 1 – For Grantees Other Than Individuals RD Instruction 1940 - Q Certification For Contracts , Grants and Loans That the Board of Commissioners of Johnston County elects to have the interest rate charged by RUS to be the lower of the rate in effect at either the time of loan approval or loan closing ; and , That if the interest rate charged by RUS should be changed between this date and the date of actual loan approval , the Chairman and Clerk to the Board be authorized to execute new forms reflecting the current interest rate and revised payments as required by RUS ; and , That this resolution becomes part of the official minutes of the Board of Commissioners of Johnston County meeting held on February 28 , 2011 th day of February , 2011 Adopted this 28 RESOLUTION OF THE BOARD OF COMMISSIONERS OF JOHNSTON COUNTY BE IT RESOLVED That the Board of Commissioners of Johnston County do hereby accept the conditions set forth in the Letter of Conditions for Water Supply & Transmission Improvements Division 2 dated February 28 , 2011 , the RUS Bulletin 1780 - 27 and the Loan Resolution dated February 28 , 2011 ; and That the Board of Commissioners will adopt an operating budget for Johnston County that will maintain a water use rate schedule at rates sufficient to meet all budgeted operating , replacement , and debt service expenses , and , the County may make modifications to the rate system as long as the rate schedule remains sufficient to meet budget requirements ; and , That the Chairman and Clerk to the Board be authorized to execute all forms necessary to obtain a loan from the USDA Rural Development , Rural Utility Service including , but not limited to the following forms ; Form RD 1942 - 46 Letter of Intent to Meet Conditions RUS Bulletin 1780 - 27 Loan Resolution Form RD 1940 - 1 Request for Obligation of Funds Form RD 400 - 1 Equal Opportunity Agreement Form RD 400 - 4 Assurance Agreement Form RD 1910 - 11 Applicant Certification Federal Collection Policies For Consumer Or Commercial Debts Form AD 1047 Certification Regarding Debarment , Suspension , and Other Responsibility Matters - Primary Covered Transactions and , copy of AD 1048 for use with Lower Tier Covered Transactions Form AD 1049 Certification Regarding Drug - Free Workplace Requirements Grants Alternative 1 – For Grantees Other Than Individuals RD Instruction 1940 - Q Certification For Contracts , Grants and Loans That the Board of Commissioners of Johnston County elects to have the interest rate charged by RUS to be the lower of the rate in effect at either the time of loan approval or loan closing ; and , That if the interest rate charged by RUS should be changed between this date and the date of actual loan approval , the Chairman and Clerk to the Board be authorized to execute new forms reflecting the current interest rate and revised payments as required by RUS ; and , That this resolution becomes part of the official minutes of the Board of Commissioners of Johnston County meeting held on February 28 , 2011 th day of February , 2011 Adopted this 28 There being no further business , Commissioner Tony Braswell moved the Board adjourn Commissioner W Ray Woodall seconded the motion , which carried by unanimous vote The meeting adjourned at 2 45 pm Allen L Mims , Jr , Chairman Paula G Woodard , Clerk to the BoardPage