July 6, 2009 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 449 Meeting of the Johnston County Board of Commissioners July 6 , 2009 10 00 am The Johnston County Board of Commissioners met in regular session Monday , July 6 , 2009 at 10 00 am in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Wade M Stewart , Chairman , Allen L Mims , Jr , Vice Chairman , Cookie Pope , Jeffrey P Carver , W Ray Woodall , and Tony Braswell Absent DeVan Barbour Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , J Mark Payne , County Attorney , J Chad McLamb , Finance Officer , and Melissa A Daughtry , Paralegal Deputy Clerk Chairman Wade M Stewart called the meeting to order at 10 00 am Commissioner W Ray Woodall opened the meeting with a prayer Commissioner Tony Braswell led those in attendance in the pledge of allegiance to the American flag Chairman Stewart noted Commissioner DeVan Barbour’s absence due to a family illness 1 Approval Discussion of Agenda Upon a motion by Commissioner Cookie Pope , seconded by Commissioner W Ray Woodall , and carried by unanimous vote , the Board approved the agenda as presented 2 Consent Agenda Items Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner W Ray Woodall , and carried by unanimous vote , the Board approved the consent agenda items as follows A Approval of Minutes – June 1 , 2009 10 00 am and 6 00 pm ; June 8 , 15 , and 22 , 2009 B Call for Public Hearing – JCATS - ROAP Grant Funds 2009 - 2010 At the request of JCATS Transportation Manager Lynn Bermingham , the Board scheduled a public hearing for the August 3 , 2009 10 00 am meeting to allow public comment on the proposed application to the NC Department of Transportation for a Rural Operating Assistance Program ROAP grant for FY 09 - 10 C Budget Revision , as follows Health BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION EXPENDITURE CODE INCREASE DECREASE 59251410 Training 45000 10 BUDGET REQUESTED CHANGE FUND LINE ITEM CLASSIFICATION REVENUE CODE INCREASE DECREASE 10 592534155 Wake AHEC 45000 D Tax Releases & Refunds – 05 16 2009 – 06 15 2009 Motor Vehicle Release Refund Report Year Bill # Acct # Name Tran Type Paid 2008 0905 - 926574 0902 - 037656 MOORE , JESSE LAWRENCE Release 17213 2008 0809 - 829233 0806 - 931807 CURRIE , EUGENE DAIL Overpayment 15067 2008 0903 - 896759 0812 - 013522 BETHEL FREEWILL BAPTIST CHURCH Release 17027 2008 0811 - 846982 0808 - 953863 FLICK , MATTHEW ALAN Overpayment 15169 2008 0810 - 832133 0807 - 943907 ACTKINSON , BEVERLY HARRIS Overpayment 20912 2008 0808 - 815761 0805 - 919840 ANTUNEZ , WILSON LLAMIL AMAYA Overpayment 12700 2008 0807 - 796144 0804 - 903290 CUNNINGHAM , DOREEN FORTUNE Overpayment 24681 2008 0812 - 859131 0809 - 977563 GRAY , DAVID WILLIS Overpayment 20005 2008 0811 - 857340 0808 - 963275 WATSON , MELISSA LAUREN Overpayment 16938 Page450 July 6 , 2009 – 10 00 am Continued 2008 0903 - 894741 0812 - 010407 COATES , LACY WILSON Overpayment 20886 2008 0811 - 857340 0808 - 963275 WATSON , MELISSA LAUREN Void Refund 16938 2008 0905 - 923881 0902 - 030788 PITTMAN , BILLY WALDON Release 11407 2008 0903 - 902165 0812 - 010706 REZNIK , JOSEPH CHRISTOPHER Release 19219 2008 0808 - 810780 0805 - 914689 BARNES , SHERIDAN ANDREW Overpayment 33694 2008 0812 - 859496 0809 - 974875 PARRISH , JOEY LAWRENCE Overpayment 12450 2008 0905 - 918405 0902 - 032695 GRIMES , BARDEN LEE Overpayment 20155 2008 0902 - 888475 0811 - 998894 LANGLEY , SR , ROBERT LEVELL Tag Surrender 10938 2008 0903 - 895758 0812 - 013126 MCPHATTER , MICHAEL KEVIN Release 16581 2008 0812 - 859111 0808 - 979036 GILMORE , JASON SPINCE Overpayment 11985 2008 0812 - 865466 0809 - 975496 CROCKER , TRACY WAYNE Overpayment 10262 2008 0905 - 919467 0902 - 040121 REICHENBACH , KYLE EUGENE Overpayment 19169 2008 0905 - 924927 0902 - 039108 KING , TONY FRANKLIN Release 10569 2008 0812 - 866709 0809 - 974997 ALLEN , WANDA KNIGHT Overpayment 16876 2008 0812 - 864859 0809 - 975324 HMZ KITCHEN TOPS INSTALLATION LLC Tag Surrender 18068 2008 0901 - 875960 0810 - 985173 JONES , MARK LEE Overpayment 12890 2008 0809 - 826273 0806 - 932747 HAMMONS , JR , CLOWNEY HENRY Overpayment 10140 2008 0812 - 865347 0809 - 978024 ARRINGTON , CANDY TEMPLE Overpayment 14023 2008 0812 - 870690 0809 - 976462 GREEN , PATSY NORRIS Overpayment 13553 2008 0812 - 870022 0809 - 977788 NORTON , LINDA SUE Overpayment 11545 2008 0812 - 861628 0809 - 976324 NOWLING , MELVIN JAMELL Overpayment 18251 2007 0805 - 775332 0802 - 866472 HOUSE , JOHN MICHAEL Release 16604 2008 0808 - 805601 0805 - 912371 HOUSE , JOHN MICHAEL Release 10043 2008 0811 - 847310 0808 - 963119 HOUSE , JOHN MICHAEL Release 34463 2008 0905 - 928717 0808 - 963119 HOUSE , JOHN MICHAEL Rebill 11885 2008 0904 - 909836 0901 - 014047 BRISTOW , BROOKS MCRAE Overpayment 25619 2005 0511 - 399073 0508 - 450249 WILLIAMS , JAMES STEPHEN Overpayment 14560 2008 0905 - 924019 0902 - 038015 DURNING , BOBBY LEE Release 14492 2008 0904 - 909836 0901 - 014047 BRISTOW , BROOKS MCRAE Void Refund 25619 2008 0904 - 903854 0901 - 024112 D L PETERSON TRUST Tag Surrender 15778 2008 0904 - 905019 0901 - 026536 PARKER , WILLIE GLENN Overpayment 10000 2008 0812 - 866063 0809 - 977296 MCWILLIAMS , ANGELA LAVONNE BASS Overpayment 11507 2008 0905 - 925760 0902 - 030455 BLOUNT , VANDORA COLE Release 10206 2008 0905 - 918938 0902 - 031696 LYNCH , II , WILLIAM PERCY Release 11522 2008 0811 - 846258 0808 - 963530 BAUCOM , ALYSSA CARYN Overpayment 25791 2008 0812 - 864043 0809 - 976728 MCKEITHAN , JACQUELINE DENISE Overpayment 10181 2008 0902 - 888972 0811 - 999076 ATKINSON , DAVID WAYNE Overpayment 17311 2008 0903 - 898192 0812 - 011289 THAMES , TOD DALLAS Release 15615 2008 0812 - 862423 0809 - 970050 WILDS , JR , EUGENE CORNELIUS Overpayment 12019 2008 0903 - 899904 0812 - 013415 DENNISON , CHIP MATTHEW Release 13297 2008 0810 - 844280 0807 - 948416 DCFS TRUST Tag Surrender 11166 2008 0905 - 917364 0902 - 039785 STEPHENS , APRIL COLLIER Release 14604 2008 0905 - 917713 0902 - 033980 BEASLEY , KEVIN WAYNE Release 12617 2008 0903 - 899517 0812 - 012316 AVILA , BERTHA ALICIA Release 13450 2007 0805 - 764039 0802 - 872893 MESSER , ERIC JOHN Overpayment 22876 2008 0905 - 926953 0902 - 036200 SPROLES , MARK EVERETT Overpayment 12439 2008 0812 - 860128 0809 - 974181 BROOKS , CHRISTOPHER MARK Overpayment 11173 2008 0812 - 868062 0809 - 978746 CALDWELL , JEFFERY SCOTT Overpayment 18590 2007 0806 - 780561 0803 - 887542 DEWITT , MICHAEL Overpayment 14272 2008 0808 - 802795 0805 - 919776 BROWN , MICHAEL DENNIS Release 12716 Real Personal Property Releases 5 18 2009 9 32 42 341 ASHLEY 2009 - 200409 73473580 BRASWELL , R D CONSTR CO 5,39110 5 18 2009 9 33 26 341 ASHLEY 2009 - 200410 73473580 BRASWELL , R D CONSTR CO 4,71900 5 18 2009 9 34 28 341 ASHLEY 2009 - 200411 73473580 BRASWELL , R D CONSTR CO 3,91826 5 18 2009 9 35 12 341 ASHLEY 2009 - 200412 73473580 BRASWELL , R D CONSTR CO 3,02438 5 18 2009 9 35 58 341 ASHLEY 2009 - 200413 73473580 BRASWELL , R D CONSTR CO 6,43959 5 20 2009 15 14 28 121 CATHY 2007 - 029527 2000101229 GAUMER , JASMIN MARIE 12362 5 21 2009 10 11 27 341 ASHLEY 2008 - 202068 2000139718 MACQUARIE EQPMT FINANCE 12942 5 22 2009 8 27 38 341 ASHLEY 2008 - 501154 2000143178 MURRAY , PAULA MOSLEY 10130 5 27 2009 14 35 36 121 CATHY 2008 - 018310 2000040382 CONVERSE , JOHN GROVER 16150 5 28 2009 12 28 16 105 SHEILA 2008 - 097599 2000041425 SON LAN DEVELOPMENT CO 3,35158 5 29 2009 11 27 33 121 CATHY 2008 - 097609 2000136968 CLEARWATER POOLS INC 51579 5 29 2009 11 33 50 121 CATHY 2008 - 201609 2000134798 AGUILAR , DARIO 18458 5 29 2009 11 45 38 121 CATHY 2009 - 200013 2000144484 D V S LIMITED PARTNERSHIP 14894 5 29 2009 11 48 05 121 CATHY 2009 - 200014 2000144484 D V S LIMITED PARTNERSHIP 20221 5 29 2009 11 50 55 121 CATHY 2009 - 200015 2000144484 D V S LIMITED PARTNERSHIP 19260Page451 July 6 , 2009 – 10 00 am Continued 5 29 2009 11 53 40 121 CATHY 2009 - 200016 2000144484 D V S LIMITED PARTNERSHIP 18042 5 29 2009 11 55 29 121 CATHY 2009 - 200017 2000144484 D V S LIMITED PARTNERSHIP 16664 5 29 2009 16 24 13 341 ASHLEY 2009 - 200440 750 KENLY VILLAGE ASSN 12368 5 29 2009 16 39 52 341 ASHLEY 2009 - 200441 750 KENLY VILLAGE ASSN 12727 5 29 2009 16 46 03 341 ASHLEY 2009 - 200442 750 KENLY VILLAGE ASSN 14804 5 29 2009 16 48 48 341 ASHLEY 2009 - 200443 750 KENLY VILLAGE ASSN 13937 6 1 2009 10 59 31 341 ASHLEY 2008 - 078825 2000135283 STALLINGS , CHARLES BRANDON 10318 6 5 2009 13 19 59 341 ASHLEY 2007 - 501300 2000135311 ZAPATA , ROSENDO EQUIA 27770 6 5 2009 13 23 49 341 ASHLEY 2008 - 094292 2000135311 ZAPATA , ROSENDO EQUIA 27770 6 9 2009 11 02 35 341 ASHLEY 2007 - 009925 2000084539 BOYETTE , JOSEPH MARSHALL 39314 6 9 2009 11 04 26 341 ASHLEY 2008 - 010197 2000084539 BOYETTE , JOSEPH MARSHALL 39549 6 9 2009 15 27 43 121 CATHY 2008 - 201885 30273999 FLOWERS , REBECCA D 1,03709 6 9 2009 15 37 42 121 CATHY 2008 - 201886 30273999 FLOWERS , REBECCA D 1,06178 6 9 2009 16 05 09 121 CATHY 2008 - 201887 30273999 FLOWERS , REBECCA D 1,06178 6 9 2009 16 11 42 121 CATHY 2008 - 201888 30273999 FLOWERS , REBECCA D 1,06178 6 10 2009 11 13 05 341 ASHLEY 2007 - 000264 487160 ADAMS BACKHOE SERV INC 16860 6 10 2009 15 18 13 341 ASHLEY 2008 - 501237 2000076351 VELAQUEZ , SHELLY MAE 11502 6 12 2009 14 09 04 105 SHEILA 2009 - 200158 2000036596 WILKINSON , ERNEST Y SR 17053 6 12 2009 14 17 07 105 SHEILA 2009 - 200159 2000036596 WILKINSON , ERNEST Y SR 17053 6 12 2009 17 10 59 105 SHEILA 2009 - 200160 2000036596 WILKINSON , ERNEST Y SR 17053 Real Personal Property Refunds 5 19 2009 10 04 29 189 TERI 2005 - 006044 2000081744 BARNES , DAVID 12197 5 19 2009 15 28 56 319 JACKIE 2008 - 079198 82234600 STANCIL , WILLIAM THOMAS 11745 5 20 2009 15 15 38 121 CATHY 2007 - 029527 2000101229 GAUMER , JASMIN MARIE 14000 5 21 2009 13 54 42 165 JAN 2008 - 010117 2000060245 BOYD , JEFFERY 46869 5 22 2009 11 35 11 165 JAN 2008 - 045234 2000036367 JONES , OSCAR J 40146 5 26 2009 10 25 39 338 ALLISON 2008 - 027438 2000097326 F AND L DEVELOPERS INC 2,35452 5 26 2009 16 12 16 338 ALLISON 2008 - 090992 2000106121 WILLIAMS , JOYCE 27774 5 27 2009 16 03 03 189 TERI 2008 - 005520 2000084942 BAREFOOT , BRAD 28761 5 28 2009 14 14 51 189 TERI 2002 - 283570 2000086313 HERNANDEZ , OCTAVIO A 32876 5 29 2009 8 18 21 165 JAN 2008 - 027246 2000074190 EVERETT , ANITA S 10255 5 29 2009 11 37 14 121 CATHY 2008 - 026848 2000135130 ESPINOZA , DARIO AGUILAR 15059 5 29 2009 11 54 38 121 CATHY 2009 - 200016 2000144484 D V S LIMITED PARTNERSHIP 18042 5 29 2009 11 56 52 121 CATHY 2009 - 200017 2000144484 D V S LIMITED PARTNERSHIP 16664 6 2 2009 15 45 53 189 TERI 2008 - 030975 2000062095 GILCHRIST , CLARICE 13765 6 3 2009 14 17 32 338 ALLISON 2008 - 004008 4247630 BAILEY , DORIS MARIE 11824 6 5 2009 9 42 32 165 JAN 2008 - 081494 2000066873 STROZIER , TERRI B 29584 6 9 2009 15 38 47 121 CATHY 2009 - 200499 30273999 FLOWERS , REBECCA D 65687 6 9 2009 16 10 34 121 CATHY 2009 - 200500 30273999 FLOWERS , REBECCA D 60761 6 9 2009 16 12 39 121 CATHY 2009 - 200501 30273999 FLOWERS , REBECCA D 55835 6 15 2009 12 25 34 338 ALLISON 2008 - 066258 2000078916 PEREZ , MIGUEL VARGAS 11988 June 18 , 2009 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 , Pat Goddard A complete record of this information is on file in the County Finance Office Totals from 5 16 09 to 6 15 09 Tax refunds - Personal Real Property 88789 Tax releases - Personal Real Property 57857 Motor Vehicle releases refunds 6,30768 Recommended by Tax Administrator Pat Goddard Approved by Finance Officer J Chad McLamb 3 Public Comments A Social Services – Presentation of Caseload Information Director of Social Services Earl Marett presented to the Board updated statistical information with regards to their caseload , given the current state of the economy Mr Marett pointed out that Social Services has seen an increase in the number of Medicaid , Food and Nutrition , CRISIS , and Day Care cases from 20,832 in 2000 to 44,823 in 2009 He noted there is some duplication due to separate applications being taken for each service ; however , he stated the increase in the numbers is revealing Mr Marett commented that staff has only increased by 25 additional positions over the same period of time to manage the increased caseload Mr Marett also presented statistical information with regards to age and race data percentages of the new clients in 2008 Mr Marett informed the Board that now since the County is no longer paying a share of the Medicaid Program , aside from the administration portion of the program , the State of North Carolina isPage452 July 6 , 2009 – 10 00 am Continued considering auditing the local Social Services agencies Mr Marett noted his concerns to the Board regarding the increased caseload versus the amount of staff available to respond to all the new claims , particularly if the State begins auditing the local agencies The Board thanked Mr Marett for the information B Citizen Request to Lower Above Ground Swimming Pool Permit Fees Eric Brock , Clayton , North Carolina , requested the Board to consider lowering the permit fee for above ground swimming pools that are not considered permanent structures Mr Brock stated he believes that the permit fee presently at 17250 could be a deterrent for citizens who would like to purchase above ground pools that cost approximately 200 or 400 from a local retailer Mr Brock stated he agrees that a permit is necessary ; however , he feels the fee is presently too high Commissioner Tony Braswell agreed with Mr Brock that the high permit fee could be a deterrent for citizens to purchase the permit for above ground pools that are not considered permanent 4 Permit Fee Reduction for Above Ground Portable Storable Swimming Pools The Board considered the previous request by Mr Eric Brock for a reduction in the permit fee for above ground swimming pools that are not considered permanent structures and called on Director of Inspections Dean Barbour to provide more information Mr Barbour explained that the current fee was established years ago and was based on permanent pools that normally require three inspections He noted that Mr Brock’s request is not unreasonable considering there are now above ground pools classified as portable and or storable that are more affordable and can be purchased at a local retailer Mr Barbour stated a permit is required by the State of North Carolina Building Code whenever a citizen wishes to install a pool or spa that holds 24 inches or more of water and normally requires three inspections Mr Barbour stated considering Mr Brock’s request , he would propose that the Board reduce the permit fee for above ground pools that are classified as portable storable structures to 6000 where only one inspection would be required Chairman Wade M Stewart asked Mr Barbour if an above ground pool that is considered portable and or storable could be clearly identified from a permanent structure Mr Barbour stated above ground permanent pools are identified by their reinforced steel barriers At the inquiry of Commissioner Allen L Mims , Jr , Mr Barbour stated the Inspections Department is complaint driven and the office has received a number of citizen complaints regarding pools that are not regulated or fenced Mr Barbour stated in Johnston County , above ground pools that are 48 inches in height stand as their own barrier ; however , he noted it is a building code requirement that pool ladders must either be taken out or locked in place when not in use so a child cannot climb them without adult supervision Commissioner Mims stated he could support reducing the fee to 6000 for portable storable structures ; however , he stated he sees potential conflicts with the County issuing a permit for a pool when the local homeowners association may not allow them He stated he would like to see some type of language added in the permit process that would require the homeowner to first check with their homeowners association Chairman Stewart agreed and asked if such language could be incorporated on the permit Mr Barbour stated the Inspections Department has an informational brochure that is given out at the time the citizen comes in to purchase a permit and staff would add a section in the informational brochure reminding the homeowner to check their subdivision covenants to make sure a pool is allowed in their neighborhood Commissioner Cookie Pope stated she would like for the Inspections Department to make sure they can clearly identify a portable storable pool Mr Barbour assured the Board that a portable storable above ground pool can clearly be identified if it can be moved and or stored PagePage pageNumber5453 July 6 , 2009 – 10 00 am Continued Commissioner Allen L Mims , Jr moved the Board reduce the permit fee for above ground swimming pools that are considered portable storable structures and only require one inspection to 6000 , effective immediately Commissioner Cookie Pope seconded the motion , which carried by unanimous vote 5 Department of Transportation – NC Scenic Byway Resolution for Clayton Bypass Ricky Greene , Division Engineer with the North Carolina Department of Transportation DOT , stated at the time the Clayton Bypass was opened , the DOT began receiving a number of compliments on the route having an attractive blend of rolling hills , forestland , water features , and pastures He explained that the DOT Roadside Environmental Unit approached him with regards to having the Clayton Bypass declared a scenic byway Mr Greene noted the application process requires local buy - in by the County and the Town of Clayton He pointed out that if the application is approved , no local land use regulations would have to change although , by General Statute , no outdoor advertising would be allowed along the route Mr Greene stated if the Board and the Town of Clayton give their respective approvals , hopefully by early spring 2010 , the Transportation Board would approve the application He asked the Board to adopt the resolution in support of the application and offered to answer any questions Upon a question from Commissioner Allen L Mims , Jr , Mr Greene stated the initiative would be in the spirit of looking into the future and would help everyone be mindful of the area as the County continues to develop Commissioner Cookie Pope stated she recently heard that the DOT’s beautification program is having trouble and asked if it would be continued Mr Greene responded there are 14 divisions within the DOT across the State and he stated his division is one of the best in the State Mr Greene introduced Mr Jimmy Eatmon , Division Operations Engineer , and spoke on Mr Eatmon’s involvement in the program Mr Green acknowledged that funds are limited ; however , he stated they will do everything possible to maintain the planting beds in the future Upon a motion by Commissioner Tony Braswell , seconded by Commissioner Jeffrey P Carver , and carried by unanimous vote , the Board adopted the following resolution JOHNSTON COUNTY NORTH CAROLINA SCENIC BYWAY RESOLUTION US 70 BYPASS CLAYTON BYPASS WHEREAS , Johnston County recognizes that the State of North Carolina has expended a great sum of money and has completed the construction of US 70 Bypass Clayton Bypass in Johnston County ; and WHEREAS , the US 70 Bypass Clayton Bypass project , a 107 mile stretch of highway between Interstate 40 at mile marker 310 in Wake County to the US 70 US 70 Business split in Johnston County with four interchanges and 22 bridges ; and WHEREAS , the US 70 Bypass Clayton Bypass is an asset to the County of Johnston for both safety and the local economy ; and WHEREAS , the Johnston County Board of Commissioners is desirous of seeing that highway beautified and protected ; and WHEREAS , it is the belief of the Johnston County Board of Commissioners that same would be best accomplished by the designation of US 70 Bypass Clayton Bypass as a North Carolina Scenic Byway NOW , THEREFORE , BE IT RESOLVED that the Johnston County Board of Commissioners respectfully requests the submittal of the NC Scenic Byway Study List Application for the US 70 Bypass Clayton Bypass for preliminary consideration as a route for nomination to the North Carolina Scenic Byway Program th day of July , 2009 Adopted this 6 6 Litter Concern Commissioner W Ray Woodall expressed his concerns to DOT Division Engineer Ricky Greene , regarding the litter problem in the County , specifically noting issues with the road grass cutting crews Commissioner Woodall asked if there was a way the litter could be removed before cutting the roadsides to avoid the litter becoming more of a problem Mr Greene acknowledged Commissioner Woodall’s concerns and stated the road cutting crews are on a contract basis ; however , he will mention the idea of removing the litter before cutting begins Mr Greene stated unfortunately the litter problem in the County is at times a losing battle He commended all those who are involved with the Adopt a Highway Program , noting it is a beneficial initiative PagePage pageNumber6454 July 6 , 2009 – 10 00 am Continued 7 Department of Transportation – Resolution – Transportation Planning Study for Johnston County Chairman Wade M Stewart stated the Department of Transportation has requested the Board to continue the item until the 6 00 pm meeting Note At the 6 00 pm meeting , the Board adopted the resolution 8 ABC Board – Resolution Opposing Merger of ABC Boards Swade Carroll , Director of the Johnston County ABC Board , asked the Commissioners to adopt a resolution in opposition of Senate Bill 839 House Bill 768 Modernization of the ABC System Mr Carroll stated if the legislation passes , it would require all ABC Systems within counties to become one board and then perhaps require county boards to merge into regional boards Mr Carroll also noted the legislation would allow for private sellers which the Johnston County ABC Board is against He stated the control system is all about keeping spirits out of the hands of minors and he feels the current system does a good job of that Mr Carroll noted the North Carolina Association of County Commissioners and the League of Municipalities are also against the legislation Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Cookie Pope , and carried by unanimous vote , the Board adopted the following resolution A RESOLUTION SUPPORTING THE JOHNSTON COUNTY ABC BOARD’S OPERATION OF ABC STORES AND OPPOSING MERGER OF ABC BOARDS AND “ AGENCY STORES ” WHEREAS , the citizens of Johnston County voted to permit the sale of spirituous liquor through the establishment of the Johnston County ABC Board , which is a part of the North Carolina’s control system for the sale of spirituous liquors ; WHEREAS , Senate Bill 839 House Bill 768 Modernization of the ABC System would require all ABC boards in a county to merge ; allow the ABC Commission to further merge county - wide boards into regional boards ; require the ABC Commission to develop performance standards ; and allow the ABC Commission , if a board does not meet performance standards , to close an ABC board , close ABC stores , merge boards with other boards or regional boards , contract in its name directly with agency stores for the sale of spirits where ABC stores are authorized but not in operation , and require an ABC board to contract with agency store ; WHEREAS , and “ agency store ” is a private retail seller , like a grocery store , pharmacy or convenience store and the citizens of Johnston County , in voting to permit the operation of ABC stores , did not vote to allow spirits to be sold in such private off - premise retail establishments ; WHEREAS , any increase in profits of the Johnston County ABC Board that may be realized by merger or consolidation inures to the benefit of the local government and community and not to the State ; WHEREAS , the State does not appropriate funds for the operation of the ABC Commission or its warehouse , which are funded by spirits sales , and does not appropriate funds for local ABC Boards ; WHEREAS , Johnston County desires to retain North Carolina’s control system over the sales of spirits and to continue to make spirits available to its citizens only through its ABC stores ; WHEREAS , it is a local decision to establish and operate an ABC store , and any decision to merge an ABC Board should be made by the local government , and not the State NOW THEREFORE , BE IT RESOLVED BY THE JOHNSTON COUNTY BOARD OF COMMISSIONERS That the Johnston County Board of Commissioners desires to maintain the operation of the County’s ABC stores through the control system , opposes any State mandate to merge ABC Boards , and opposes agency stores th day of July , 2009 Adopted this the 6 9 Public Hearing – 10 20 am – 10 - Year Solid Waste Plan Update Advertised – In The Smithfield Herald – June 24 and July 1 , 2009 The Chairman opened the public hearing Rick Proctor , Director of the Solid Waste Division for the County , asked the Board to adopt a resolution approving the three year update to the 10 Year Solid Waste Plan He noted staff held a public meeting on the update on April 24 , 2009 with no issues Mr Proctor offered to answer any questions Commissioner W Ray Woodall asked for those citizens that utilize a private service to pick up their trash , how long is waste allowed to sit on the roadside before being picked up Mr Proctor stated that because private companies offer the pickup services he did not believe that the County had anything in the ordinance with regards as to how long the trash could sit on the roadside PagePage pageNumber7455 July 6 , 2009 – 10 00 am Continued Commissioner Allen L Mims , Jr , stated the Town of Clayton only allows trash to sit by the roadside on the day of pickup , unless there is a holiday whereby the trash is picked up the next day Commissioner Tony Braswell agreed that the municipalities offer trash pickup within their limits and have their own regulations as to how long the trash could sit on the roadside Commissioner Mims inquired if there was anything in the plan that pertained to the expansion of the convenience center program Commissioner Mims commented that as he understands , the program continues to lose money and he questioned why the County would want to expand a program that continually shows a loss in revenue Mr Proctor stated there is language in the plan that states the County will expand the program as needed He noted staff is currently looking for a site in the western area of the County to take some of the stress from the other area centers Mr Proctor stated there are alternatives available other than the convenience center program that could be up for discussion At the inquiry of Commissioner Mims , Mr Proctor stated that by voting to adopt the resolution for the updates to the Solid Waste Plan , it would not restrict the County to the convenience center program Chairman Wade M Stewart stated he has received concerns from citizens regarding the convenience center program and noted the Board will need to hold a future work session on how to address the system as well as the ongoing issue of litter There being no further comments , the Chairman closed the public hearing Upon a motion by Commissioner Cookie Pope , seconded by Commissioner W Ray Woodall , and carried by unanimous vote , the Board adopted the following resolution RESOLUTION TO APPROVE THE JOHNSTON COUNTY 3 YEAR UPDATE OF THE 10 YEAR SOLID WASTE PLAN WHEREAS , better planning for solid waste will help protect public health and the environment , provide for an improved solid waste management system , better utilize our natural resources , control the cost of solid waste management ; and WHEREAS , NC General Statute 130A - 30909A b requires each unit of local government , either individually or in cooperation with other units of local government , to develop a 10 - year comprehensive solid waste management plan ; and WHEREAS , Johnston County was adequately represented on the Johnston County 10 Year Comprehensive Waste Plan Committee and has been actively involved in the planning process ; and WHEREAS , the committee has finished the plan and a meeting for public comment on the plan was held on April 24 , 2009 at 10 00 am in the Johnston County Land Use Center NOW , THEREFORE , BE IT RESOLVED that the County Commissioners of Johnston County hereby approve the Johnston County 3 year update to the comprehensive solid waste management plan th Adopted by the Board of Commissioners during regular session on this the 6 day of July , 2009 10 Public Utilities – Award of Construction Contract – Smithfield North 12 ” Water Main and Booster Pump Station The Board reviewed the following bids , which were received on June 18 , 2009 for the construction of the pipeline project and booster pump station installation for a new bulk supply connection to the Town of Smithfield’s water system Bid Bond Total Bid Contractor Mizelle Construction Garner , NC X 169,52200 JF Wilkerson Morrisville , NC X 184,83990 RD Braswell Construction Smithfield , NC X 193,17325 Dellinger , Inc Monroe , NC X 210,34000PagePage pageNumber8456 July 6 , 2009 – 10 00 am Continued Coates Corporation Benson , NC X 210,84800 Wm J Keller & Sons Construction Raleigh , NC X 211,11615 Hendrix - Barnhill Smithfield , NC X 216,18400 Blackmon Construction Smithfield , NC X 21756000 TA Loving Company Goldsboro , NC X 220,35500 Country Construction Benson , NC X 221,23000 Moffat Pipe , Inc Raleigh , NC X 222,33000 Ralph Hodge Construction Co Wilson , NC X 235,18000 Corbett Contracting Selma , NC X 236,79100 EBG Construction , Inc Clayton , NC X 240,86910 Key Constructors , Inc Clarksville , VA X 255,09001 Billings & Garrett Raleigh , NC X 302,06850 Ellington Contractors , Inc Wake Forest , NC X 311,68195 Vaughan Grading & Utilities , Inc Wake Forest , NC X 318,77750 Corrected math error Tim Broome , PE , Director of Utilities and Engineering , explained that the project was included in the FY 08 - 09 budget The project is being undertaken as a partnership with the Town of Smithfield and the Town will fund one - half of the cost He stated staff recommends award of the construction contract to low bidder Mizelle Construction of Garner , North Carolina in the amount of 169,52200 and approval of the following project budget , subject to the Town of Smithfield’s approval of same Expenditures Package pump station 45,04250 Pipeline and pump station installation 169,52200 Construction contingency 11,43550 Subtotal construction 226,00000 Land and Easements 5,00000 Technical Services Design , permitting and bidding 6,00000 Construction inspection 5,00000 Total Expenditures 242,00000 Revenues Johnston County 121,00000 Town of Smithfield 121,00000 Total Revenues 242,00000 Upon a motion by Commissioner Tony Braswell , seconded by Commissioner Cookie Pope , and carried by unanimous vote , the Board took the following actions , subject to the concurrence by the Town of Smithfield • Awarded the bid to low bidder Mizelle Construction of Garner , North Carolina in the bid amount of 169,52200 for construction of the Smithfield North 12 ” Water Main and Booster Pump Station PagePage pageNumber9457 July 6 , 2009 – 10 00 am Continued • Adopted the project budget as listed and recommended by staff 11 Public Utilities – Amendment to Bulk Wastewater Agreement with Town of Benson Tim Broome , PE , Director of Utilities and Engineering , informed the Board that the request for the amendment to the bulk wastewater agreement with the Town of Benson is in follow up to recent discussions concerning capacity in the Town of Benson’s wastewater system for future sewer service to the I - 40 NC 96 interchange area He noted the amendment would also help to clean up some issues regarding capacity and the Town of Benson approved the amendment on June 25 , 2009 Mr Broome requested the Board’s consideration of the amendment At the inquiry of Chairman Wade M Stewart , Mr Broome stated the amendment would remain consistent with the County’s sewer service policies Upon a motion by Commissioner Cookie Pope , seconded by Commissioner W Ray Woodall , and carried by unanimous vote , the Board approved the following amendment Agreement Between the Town of Benson and Johnston County Concerning Bulk Wastewater Capacity THIS AGREEMENT the “ Agreement ” is entered into on the ____ day of ___ , 2009 , by and between the Town of Benson hereafter “ Benson ” and Johnston County hereafter “ County ” WITNESSETH WHEREAS , Benson and the County entered a Memorandum of Understanding dated April 14 , 1999 , which provides an allocation of 22,000 gpd in wastewater capacity in the Benson wastewater system for Meadow School and for businesses and residences with failed or failing septic systems in the Meadow area , WHEREAS , under the Benson - County Memorandum of Agreement , wastewater is to be delivered to the Benson system through a force main on NC 50 South and Morgan Road SR 1211 , and WHEREAS , Benson , the County , and the Town of Clayton entered an agreement dated May 17 , 2005 , which provides a wastewater capacity allocation of 150,000 gpd to the County in the Benson wastewater system , and WHEREAS , under the Benson - County - Clayton agreement , wastewater is to be delivered to the Benson system through a force main on US 301 North and Hannah Creek Road SR 1356 , and WHEREAS , under the Benson - County - Clayton agreement , the County paid the Town 125,000 for future wastewater capacity , and WHEREAS , the County desires to provide public sewer service to the area zoned as Interstate Highway Overlay District at the interchange of I - 40 and NC 96 in the Meadow area NOW , THEREFORE , in consideration of the mutual covenants and promises set forth herein , Benson and County agree as follows 1 In exchange for the 125,00000 payment from the County to Benson , Benson agrees to transfer to County an additional wastewater capacity of 20,160 gpd , based on a current value of 620 per gpd of capacity 2 County is deemed to own a total capacity of 192,160 gpd in the Benson wastewater system 3 County may use up to 50,000 gpd of said wastewater capacity for wastewater services in the County service area south of Benson , with flow delivered to the Benson system via the NC 50 South force main 4 County will limit its wastewater flow discharge into Benson’s system from the north via the US 301 force main to 170,160 gpd until such time as the County and Benson agree for the County to purchase additional capacity 5 County may reduce its wastewater discharge into Benson’s system from the north via the US 301 force main in proportion to the daily volume of flow above 22,000 gpd which may be discharged into Benson’s system from the NC 50 South force main 6 County may use the wastewater capacity allocation for any purpose consistent with its zoning and sewer use policies ; however , service to single family residences in subdivisions exceeding five 5 lots is prohibited For the purposes of this agreement , a subdivision may not be separated into multiple phases to circumvent this provision 7 Modification , Amendment , Supplement or Waiver No modification , amendment , supplement to or waiver of this Agreement or any of its provisions shall be binding upon the parties hereto unless made in writing and duly signed by authorized representatives of both parties 8 Severability In the event any one or more of the provisions of the Agreement shall for any reason be held to be invalid , illegal or unenforceable , the remaining provisions of this Agreement shall be unimpaired , and the invalid , illegal or unenforceable provisions shall be replaced by mutually acceptable provisions , which being valid , legal , and enforceable comes closest to the intention of the parties underlying the invalid , illegal , or unenforceable provision 9 Entirety of the Agreement This Agreement constitutes the entire Agreement between the parties and supersedes all previous agreements included promises and representation , whether written or oral , between the parties with respect to the subjection matter hereof IN WITNESS WHEREOF , the parties hereto , each acting under due and proper authority , have executed this Agreement as of the day , month , and year first above written This is the ____ day of _______ , 2009 Page0458 July 6 , 2009 – 10 00 am Continued 12 O’Neals Water District – Resolution Authorizing Issuance and Sale of GO Water Bonds Upon a motion by Commissioner Cookie Pope , seconded by Commissioner W Ray Woodall , and carried by unanimous vote , the Board recessed regular session to sit as the O’Neal’s Water District Board The following resolution was discussed and its title was read RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION WATER BONDS , SERIES 2009A IN THE AGGREGATE PRINCIPAL AMOUNT OF 2,119,000 AND GENERAL OBLIGATION WATER BONDS , SERIES 2009B IN THE AGGREGATE PRINCIPAL AMOUNT OF 2,557,000 WHEREAS , the Bond Order hereinafter described was authorized and adopted by the Board of Commissioners of Johnston County the “ Board ” , acting as the governing body of the O’Neals Water District of Johnston County the “ District ” on August 14 , 2006 , and approved by a majority of the qualified voters of the District voting thereon at a referendum held on November 7 , 2006 ; and WHEREAS , the Board desires to provide for the issuance of 2,119,000 General Obligation Water Bonds , Series 2009A the “ Series 2009A Bonds ” and 2,557,000 General Obligation Water Bonds , Series 2009B the “ Series 2009B Bonds ” the Series 2009A Bonds and the Series 2009B Bonds collectively , the “ Bonds ” to refund 4,676,000 Water Bond Anticipation Notes previously issued pursuant to such Bond Order ; NOW , THEREFORE , the Board of Commissioners of Johnston County , acting as the governing body of the O’Neals Water District of Johnston County , meeting in regular session in Smithfield , North Carolina , on July 6 , 2009 , does the following BE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR JOHNSTON COUNTY , ACTING AS THE GOVERNING BODY OF THE O’NEALS WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA 1 The District shall issue its general obligation water bonds in an aggregate principal amount of 4,676,000 pursuant to and in accordance with the Bond Order entitled BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE O’NEALS WATER DISTRICT IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF 11,000,000 FOR THE PURPOSE OF FINANCING , IN PART , THE ACQUISITION , CONSTRUCTION AND EQUIPPING OF A WATER SYSTEM IN THE DISTRICT 2 The Bonds will be designated “ General Obligation Water Bonds ” and shall be dated July 20 , 2009 The Series 2009A Bonds shall mature in annual installments on June 1 in years and amounts as follows Amount Year Amount Year Amount Year 2012 24,000 2025 41,000 2038 70,000 2013 25,000 2026 42,000 2039 73,000 2014 26,000 2027 44,000 2040 76,000 2015 27,000 2028 46,000 2041 79,000 2016 28,000 2029 48,000 2042 82,000 2017 29,000 2030 50,000 2043 86,000 2018 30,000 2031 52,000 2044 90,000 2019 32,000 2032 54,000 2045 93,000 2020 33,000 2033 57,000 2046 96,000 2021 34,000 2034 59,000 2047 96,000 2022 36,000 2035 62,000 2048 96,000 2023 37,000 2036 64,000 2049 96,000 2024 39,000 2037 67,000 The Series 2009B Bonds shall mature in annual installments on June 1 in years and amounts as follows Year Amount Year Amount Year Amount 2012 29,000 2025 49,000 2038 84,000 2013 30,000 2026 51,000 2039 88,000 2014 31,000 2027 53,000 2040 92,000 2015 32,000 2028 56,000 2041 95,000 2016 34,000 2029 58,000 2042 99,000 2017 35,000 2030 60,000 2043 104,000 2018 37,000 2031 63,000 2044 108,000 2019 38,000 2032 66,000 2045 113,000 2020 40,000 2033 68,000 2046 116,000 2021 42,000 2034 71,000 2047 116,000 2022 43,000 2035 74,000 2048 116,000 2023 45,000 2036 77,000 2049 116,000 2024 47,000 2037 81,000 The Bonds shall bear interest at a rate of 425 payable on June 1 , 2012 , and annually on each June 1 thereafter ; provided if the Bonds are not held by the United States of America , interest will be payable on each June 1 and December 1 The Bonds are issuable in fully registered form in the authorized denomination of 1,000 or any integral multiple thereof Interest on the Bonds will be payable to the person appearing on the registration books of the District as thePage1459 July 6 , 2009 – 10 00 am Continued registered owner 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 the registered owner at his address as it appears , provided if payable to the United States of America , at such address as may be designated by the United States of America During such time as the Bonds are held by the United States of America , the Bonds will not be defeased without the written consent of the United States of America Initially , one fully registered bond without coupons will be issued , exchangeable within 90 days after notice for bonds of a like aggregate principal amount in authorized denominations During any period the Bonds are not held by the United States of America , interest and principal thereon shall be payable at First - Citizens Bank & Trust Company , Raleigh , North Carolina 3 So long as the Bonds are held or insured by the United States of America , the Bonds will be subject to redemption , at the option of the District , at any time at a redemption price equal to the principal amount thereof to be redeemed , together with interest accrued thereon to the date fixed for redemption , but without any premium Any such prepayment of principal will be applied in inverse order of maturity If the Bonds are not held or insured by the United States of America , the Bonds maturing prior to June 1 , 2020 are not subject to optional redemption , and Bonds maturing on or after June 1 , 2020 , are subject to redemption , at the option of the District , at any time on or after June 1 , 2019 , at a redemption price equal to the principal amount thereof to be redeemed , together with interest accrued thereon to the date fixed for redemption , but without any premium Notice of redemption shall be given by first class mail , postage prepaid , to the registered owner of the Bonds Such notice shall be mailed not more than 60 nor less than 30 days prior to the date fixed for redemption 4 The Bonds shall be signed by the manual or facsimile signature of the Chairman , shall be countersigned by the manual or facsimile signature of the Clerk and the manual or facsimile District seal shall be printed or affixed thereon No Bond shall be valid until it has been endorsed by the manual or facsimile signature of the authorized representative of the North Carolina Local Government Commission the “ LGC ” 5 The Series 2009A Bonds shall be in substantially the following form , the terms and requirements of which are incorporated herein by reference REGISTERED REGISTERED No R - ___ 2,119,000 UNITED STATES OF AMERICA STATE OF NORTH CAROLINA JOHNSTON COUNTY , NORTH CAROLINA ACTING AS THE GOVERNING BODY OF THE O’NEALS WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA Water Bond , Series 2009A The O’Neals Water District of Johnston County , North Carolina the “ District ” acknowledges itself indebted and for value received , hereby promises to pay to the UNITED STATES OF AMERICA , UNITED STATES DEPARTMENT OF AGRICULTURE , RURAL DEVELOPMENT or its registered assigns the “ Payee ” , the principal sum of TWO MILLION ONE HUNDRED NINETEEN THOUSAND AND NO 100 DOLLARS 2,119,000 on the first day of June in installments as follows Year Amount Year Amount Year Amount 2012 24,000 2025 41,000 2038 70,000 2013 25,000 2026 42,000 2039 73,000 2014 26,000 2027 44,000 2040 76,000 2015 27,000 2028 46,000 2041 79,000 2016 28,000 2029 48,000 2042 82,000 2017 29,000 2030 50,000 2043 86,000 2018 30,000 2031 52,000 2044 90,000 2019 32,000 2032 54,000 2045 93,000 2020 33,000 2033 57,000 2046 96,000 2021 34,000 2034 59,000 2047 96,000 2022 36,000 2035 62,000 2048 96,000 2023 37,000 2036 64,000 2049 96,000 2024 39,000 2037 67,000 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America , and to pay interest on the balance of said principal sum from time to time remaining unpaid , in like coin or currency , from the date hereof at the rate of 425 per annum , while held by the original payee , on June 1 , 2012 , and thereafter on June 1 of each year provided if this bond is not owned by the United States of America , interest shall be payable on each June 1 and December 1 , until the principal amount hereof has been paid Payments of the installments of principal and interest then due and payable on this bond without presentation or surrender hereof shall be made to the United States of America at such address as may be designated by it and , during any such time as an assignee of the Payee is the owner hereof , at the principal corporate trust office of First - Citizens Bank & Trust Company , Raleigh , North Carolina Upon receipt of such payments of principal and interest , written notice of the receipt thereof shall be given promptly to the District and the District shall be fully discharged of the obligation on this bond to the extent of the payment so made Upon final payment of principal and interest , this bond shall be surrendered to the District for cancellation This bond is issued in accordance with the Local Government Finance Act , Chapter 159 of the North Carolina General Statutes , and a bond order adopted by the Board of the District on August 14 , 2006 , to pay capital costs of acquiring , constructing and equipping a water system in the District The issuance of these bonds and the contracting of the indebtedness evidenced hereby were approved by a majority of the qualified voters of the District voting at an election heldPage2460 July 6 , 2009 – 10 00 am Continued on November 7 , 2006 The District has designated this bond and the issue of which it is a part as “ qualified tax - exempt obligations ” under Section 265 b 3 of the Internal Revenue Code of 1986 This bond is exchangeable at the sole expense of the District at any time , upon ninety 90 days ’ notice , at the request of the registered owner hereof and upon surrender of this bond to the District , for fully registered bonds , in the denomination of 1,000 each or any integral multiple thereof , in an aggregate principal amount equal to the unpaid principal amount of this bond and in the form of such fully registered multiple bonds as is provided for the resolution authorizing the issuance of the bonds This bond may be assigned and upon such assignment , the assignor shall promptly notify the District by registered mail , and the assignee shall surrender the same to the District for transfer on the registration records , or in exchange for fully registered bonds in the denomination of 1,000 each or any integral multiple thereof in an aggregate principal amount equal to the unpaid principal amount of such single registered bond and bearing maturities corresponding to the principal installments on such single registered bond then unpaid , and every such assignee shall take this bond subject to such condition So long as this bond is held or insured by the United States of America a the principal installments hereof may be prepaid in whole or in part at any time in inverse order of maturity and b this bond will not be defeased without the written consent of the United States of America When not so held or insured , a if this bond matures prior to June 1 , 2020 , it is not subject to redemption at the option of the District , and b if this bond matures on or after June 1 , 2020 , it is subject to redemption at the option of the District , at any time on or after June 1 , 2019 , in whole or in part , at the principal amount hereof to be redeemed , together with interest accrued hereon to the date fixed for redemption , but without any premium It is hereby certified and recited that all such conditions , acts and things required by the Constitution or statutes of the State of North Carolina to exist , be performed or happen precedent to or in the issuance of this bond , exist , have been performed and have happened , and that this bond is within every limitation prescribed by said Constitution or statutes The faith and credit of the District are hereby pledged to the punctual payment of the principal of and interest on this bond in accordance with its terms This bond shall be governed by and construed in accordance with the laws of the State of North Carolina IN WITNESS WHEREOF , the District has caused this bond to be signed by the Chairman and Clerk to the Board of the District and sealed with the corporate seal of the District and this bond to be dated July 20 , 2009 O’NEALS WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA By ______________________________________ Chairman SEAL ATTEST ________________________________ Clerk to the Board of Commissioners Date Authenticated ASSIGNMENT FOR VALUE RECEIVED the Payee named in the within bond hereby sell s , assign s and transfer s said bond unto Please print or type name and address , including postal zip code , of Transferee PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE Date The issue hereof has been approved under the provisions of The Local Government Bond Act of North Carolina By T Vance Holloman , Secretary Local Government Commission The Series 2009B Bonds shall be in substantially the following form , the terms and requirements of which are incorporated herein by reference REGISTERED REGISTERED No R - ___ 2,557,000 UNITED STATES OF AMERICA STATE OF NORTH CAROLINA JOHNSTON COUNTY , NORTH CAROLINA ACTING AS THE GOVERNING BODY OF THE O’NEALS WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA Water Bond , Series 2009B The O’Neals Water District of Johnston County , North Carolina the “ District ” acknowledges itself indebted and for value received , hereby promises to pay to the UNITED STATES OF AMERICA , UNITED STATES DEPARTMENT OF AGRICULTURE , RURAL DEVELOPMENT or its registered assigns the “ Payee ” , the principal sum of TWO MILLION FIVE HUNDRED FIFTY - SEVEN THOUSAND AND NO 100 DOLLARS 2,557,000 on the first day of June in installments as follows Page3461 July 6 , 2009 – 10 00 am Continued Year Amount Year Amount Year Amount 2012 29,000 2025 49,000 2038 84,000 2013 30,000 2026 51,000 2039 88,000 2014 31,000 2027 53,000 2040 92,000 2015 32,000 2028 56,000 2041 95,000 2016 34,000 2029 58,000 2042 99,000 2017 35,000 2030 60,000 2043 104,000 2018 37,000 2031 63,000 2044 108,000 2019 38,000 2032 66,000 2045 113,000 2020 40,000 2033 68,000 2046 116,000 2021 42,000 2034 71,000 2047 116,000 2022 43,000 2035 74,000 2048 116,000 2023 45,000 2036 77,000 2049 116,000 2024 47,000 2037 81,000 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America , and to pay interest on the balance of said principal sum from time to time remaining unpaid , in like coin or currency , from the date hereof at the rate of 425 per annum , while held by the original payee , on June 1 , 2012 , and thereafter on June 1 of each year provided if this bond is not owned by the United States of America , interest shall be payable on each June 1 and December 1 , until the principal amount hereof has been paid Payments of the installments of principal and interest then due and payable on this bond without presentation or surrender hereof shall be made to the United States of America at such address as may be designated by it and , during any such time as an assignee of the Payee is the owner hereof , at the principal corporate trust office of First - Citizens Bank & Trust Company , Raleigh , North Carolina Upon receipt of such payments of principal and interest , written notice of the receipt thereof shall be given promptly to the District and the District shall be fully discharged of the obligation on this bond to the extent of the payment so made Upon final payment of principal and interest , this bond shall be surrendered to the District for cancellation This bond is issued in accordance with the Local Government Finance Act , Chapter 159 of the North Carolina General Statutes , and a bond order adopted by the Board of the District on August 14 , 2006 , to pay capital costs of acquiring , constructing and equipping a water system in the District The issuance of these bonds and the contracting of the indebtedness evidenced hereby were approved by a majority of the qualified voters of the District voting at an election held on November 7 , 2006 The District has designated this bond and the issue of which it is a part as “ qualified tax - exempt obligations ” under Section 265 b 3 of the Internal Revenue Code of 1986 This bond is exchangeable at the sole expense of the District at any time , upon ninety 90 days ’ notice , at the request of the registered owner hereof and upon surrender of this bond to the District , for fully registered bonds , in the denomination of 1,000 each or any integral multiple thereof , in an aggregate principal amount equal to the unpaid principal amount of this bond and in the form of such fully registered multiple bonds as is provided for the resolution authorizing the issuance of the bonds This bond may be assigned and upon such assignment , the assignor shall promptly notify the District by registered mail , and the assignee shall surrender the same to the District for transfer on the registration records , or in exchange for fully registered bonds in the denomination of 1,000 each or any integral multiple thereof in an aggregate principal amount equal to the unpaid principal amount of such single registered bond and bearing maturities corresponding to the principal installments on such single registered bond then unpaid , and every such assignee shall take this bond subject to such condition So long as this bond is held or insured by the United States of America a the principal installments hereof may be prepaid in whole or in part at any time in inverse order of maturity and b this bond will not be defeased without the written consent of the United States of America When not so held or insured , a if this bond matures prior to June 1 , 2020 , it is not subject to redemption in whole or in part at the option of the District , and b if this bond matures on or after June 1 , 2020 , it is subject to redemption at the option of the District , at any time on or after June 1 , 2019 , at the principal amount hereof to be redeemed , together with interest accrued hereon to the date fixed for redemption , but without any premium It is hereby certified and recited that all such conditions , acts and things required by the Constitution or statutes of the State of North Carolina to exist , be performed or happen precedent to or in the issuance of this bond , exist , have been performed and have happened , and that this bond is within every limitation prescribed by said Constitution or statutes The faith and credit of the District are hereby pledged to the punctual payment of the principal of and interest on this bond in accordance with its terms This bond shall be governed by and construed in accordance with the laws of the State of North Carolina IN WITNESS WHEREOF , the District has caused this bond to be signed by the Chairman and Clerk to the Board of the District and sealed with the corporate seal of the District and this bond to be dated July 20 , 2009 O’NEALS WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA By ______________________________________ Chairman SEAL ATTEST ________________________________ Clerk to the Board of Commissioners Date Authenticated ASSIGNMENTPage4462 July 6 , 2009 – 10 00 am Continued FOR VALUE RECEIVED the Payee named in the within bond hereby sell s , assign s and transfer s said bond unto Please print or type name and address , including postal zip code , of Transferee PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE Date The issue hereof has been approved under the provisions of The Local Government Bond Act of North Carolina By T Vance Holloman , Secretary Local Government Commission 6 The full faith and credit and taxing power of the District are hereby irrevocably pledged for the payment of principal of and interest on the Bonds Unless other funds are lawfully available and appropriated for timely payment of the Bonds , the Board shall levy and collect taxes and raise other revenues for payment of the principal of and interest on the Bonds , as the same become due and payable 7 The District shall maintain registration books for the registration of the Bonds If no qualified securities depository is the registered owner of the Bonds , upon surrender of any bonds at the office of the District , together with an assignment fully executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the District , the District shall execute and shall authenticate and deliver in exchange , a new bond or bonds having an equal aggregate principal amount , in authorized denominations , of the same form and maturity , bearing interest at the same rate , and registered in names as requested by the then registered owner or his duly authorized attorney or legal representative Any such exchange shall be at the expense of the District , except that the District may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto The District shall treat the registered owner as the person exclusively entitled to payment of principal and interest and the exercise of all other rights and powers of the owner , except that interest payments shall be made to the person shown as owner on the registration books on the fifteenth day of the month preceding each interest payment date 8 The LGC is hereby requested to sell such Bonds to the United States of America by private sale on July 20 , 2009 9 The Board covenants on behalf of the District that so long as any of the installments of principal and interest on the Bonds are outstanding and unpaid , the District shall not take or omit to take any action the taking or omission of which will cause the Bonds to be “ arbitrage bonds ” within the meaning of Section 148 of the Internal Revenue Code of 1986 , as amended the “ Code ” , or otherwise cause interest on the Bonds to be includable in the gross income of the holders thereof 10 The Board hereby covenants that it will not permit the gross proceeds of the Bonds to be used in any manner that would result in either a 5 or more of such proceeds being considered as having been used directly or indirectly in any trade or business carried on by any person other than a governmental unit as provided in Section 141 b of the Code , b 5 of such proceeds being used with respect to any “ output facility ” other than a facility for the furnishing of water systems , within the meaning of Section 141 b 4 of the Code , or c 5 or more of such proceeds being considered as having been used directly or indirectly to make or finance loans to any person other than a governmental unit as provided in Section 141 c of the Code ; provided , however , that if the Board receives an opinion of bond counsel acceptable to the registered owners of the Bonds that any such restriction is not required to prevent the interest on the Bonds from being includable in the gross income of the registered owners thereof under existing statutes , the Board need not comply with such restriction 11 The Bonds are hereby designated as “ qualified tax - exempt obligations ” for purposes of Section 265 b 3 of the Code a The Board will in no event designate more than 10,000,000 of obligations as qualified tax - exempt obligations in 2009 , including the Bonds , for the purpose of such Section 265 b 3 ; b The District and all its “ subordinate entities ” within the meaning of Section 265 b 3 of the Code have not issued more than 10,000,000 of tax - exempt obligations in 2009 not including “ private activity bonds , ” as defined in Section 141 of the Code , other than “ qualified 501 c 3 bonds , ” as defined in Section 145 of the Code , including the Bonds ; c Barring circumstances unforeseen as of the date of delivery of the Bonds , the Board will not approve the issuance of tax - exempt obligations of the District or such subordinate entities if the issuance of such tax - exempt obligations would , when aggregated with all other tax - exempt obligations theretofore issued in 2009 by the District and such subordinate entities , result in the District and such subordinate entities having issued a combined total of more than 10,000,000 of tax - exempt obligations in 2009 not including private activity bonds other than qualified 501 c 3 bonds , including the Bonds ; and d The Board has no reason to believe that the District and such subordinate entities will issue tax - exempt obligations in 2009 in an aggregate amount that will exceed such 10,000,000 limit ; provided , however , that if the Board receives an opinion of bond counsel acceptable to the registered owners of the Bonds that compliance with any restriction set forth in b or c above is not required for the Bonds to be qualified tax - exempt obligations , the Board need not comply with such restriction 12 The Board hereby represents and covenants as follows a The District and all its “ subordinate entities ” within the meaning of Section 148 f 4 iii of the Code have not issued more than 5,000,000 of tax - exempt obligations in 2009 not including private activity bonds , including the Bonds ; b Barring circumstances unforeseen as of the date of delivery of the Bonds , the Board will not approve the issuance of tax - exempt obligations of the District or such subordinate entities if the issuance of such tax - exempt obligationsPage5463 July 6 , 2009 – 10 00 am Continued would , when aggregated with all other tax - exempt obligations theretofore issued in 2009 by the District and such subordinate entities , result in the District and such subordinate entities having issued a combined total of more than 5,000,000 of tax - exempt obligations in 2009 not including p