July 7, 2008 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 828 Meeting of the Johnston County Board of Commissioners July 7 , 2008 10 00 am The Johnston County Board of Commissioners met in regular session Monday , July 7 , 2008 at 10 00 am in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina The following members were present Present Cookie Pope , Chairman , Wade M Stewart , Vice Chairman , Allen L Mims , Jr , Jeffrey P Carver , W Ray Woodall , DeVan Barbour and Tony Braswell Absent None Also Present Rick J Hester , County Manager , Paula G Woodard , Clerk to the Board , John R Massey , Finance Officer , J Mark Payne , County Attorney , and Melissa A Daughtry , Paralegal Interim Deputy Clerk Chairman Cookie Pope called the meeting to order at 10 00 am Commissioner Tony Braswell led those in attendance in the pledge of allegiance to the American flag , followed by a moment of silence in memory of former United States Senator Jesse Helms Commissioner W Ray Woodall opened the meeting with a prayer 1 Approval Discussion of Agenda Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Jeffrey P Carver , and carried by unanimous vote , the Board approved the agenda as presented 2 Consent Agenda Items Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Tony Braswell , and carried by unanimous vote , the Board approved the consent agenda items as follows A Approval of Minutes – June 2 , 2008 10 00 am & 6 00 pm ; June 9 , 2008 6 00 pm ; June 11 , 2008 6 00 pm ; and June 18 , 2008 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 Rachel’s Way , Yellow Ribbons Court , Dancing Shoes Court and Golden Curls Court – Rachel’s Place Subdivision – Clayton Township Sunset Pointe Drive – Sunset Pointe Subdivision formerly The Gower Tract – Smithfield Township C Call for Public Hearing – Town of Wilson’s Mills The Board scheduled a public hearing to be held at the August 4 , 2008 10 00 am Board meeting to allow for public comment , pursuant to NCGS 160A - 362 , on the Board of County Commissioners appointing representatives for the Town of Wilson’s Mills Planning Board and Board of Adjustment for their newly established ETJ area D Call for Public Hearing – First Responder Franchise for Selma Fire Department The Board scheduled a public hearing to be held at the August 4 , 2008 10 00 am Board meeting to allow for public comment on the Selma Fire Department requesting a first responder franchise E Tax Releases & Refunds – 05 16 2008 – 06 12 2008 Year Bill # Acct # Name Tran Type Paid 2007 0804 - 760463 0801 - 835568 K & D ENTERPRISES Release 20264 2007 0804 - 760462 0801 - 835528 K & D ENTERPRISES Release 20264 Page829 July 7 , 2008 – 10 00 am Continued 2007 0804 - 760461 0711 - 839697 K & D ENTERPRISES Release 29795 2007 0804 - 760460 0711 - 839686 K & D ENTERPRISES Release 17739 2007 0804 - 760459 0711 - 839685 K & D ENTERPRISES Release 13797 2007 0805 - 769761 0802 - 874861 BLACKMON , TRACY MARIE Release 11979 2007 0712 - 708417 0709 - 783831 WITWER , JEFFREY DAVID Overpayment 14586 2007 0804 - 753574 0801 - 839336 NOEL , JR , STEVEN ROBERT Tag Surrender 24381 2007 0802 - 733937 0711 - 814219 DOWN HOME CONSTRUCTION LLC Overpayment 22315 2007 0803 - 748899 0712 - 824774 WILLIAMS , JR , JOHN EMMETTE Release 11105 2007 0712 - 708866 0709 - 788448 HINNANT PLUMBING Overpayment 12297 2007 0711 - 693972 0708 - 776772 NUNEZ , ABEL Overpayment 10153 2007 0803 - 741843 0712 - 826273 JACKSON , TERRANCE JERMYNE Release 22373 2007 0803 - 748920 0712 - 822580 WOOD , JR , LANNY ROGER Release 16591 2006 0702 - 582662 0611 - 649062 FORTUNE - HOLLAND , CHRISTOPHER D Release 10300 2007 0711 - 703671 0708 - 770475 COLE , DEVON EVAUD Tag Surrender 16665 2007 0805 - 763393 0802 - 871681 BROKAW , SR , ELZA VAN Release 18116 2007 0710 - 681860 0707 - 749129 JERNIGAN , LINDA LEE Overpayment 14105 2007 0803 - 744855 0712 - 821663 DAVID PRUITT ELECTRICAL Release 10701 2007 0803 - 744856 0712 - 821084 DAVID PRUITT ELECTRICAL CO Release 11508 2007 0712 - 705984 0709 - 782521 BONAVITA , SR , PETER JOHN Overpayment 13885 2007 0711 - 700614 0708 - 770287 WATSON , SHAWANDA LYNETT Overpayment 10920 2007 0711 - 695419 0708 - 772403 HUNT , MICHAEL ROBERT Overpayment 17239 2007 0710 - 682658 0707 - 758249 FRIEDMAN , KENNETH STAN Tag Surrender 21209 2007 0804 - 755146 0801 - 837461 NOBLES , BARBARA RALPH Release 14859 2007 0801 - 717670 0710 - 799013 LUNDY , MONICA JOHNSON Overpayment 15721 2007 0805 - 766469 0802 - 868431 RICHARDS , LINDA LOUISE Overpayment 21805 2007 0709 - 667656 0706 - 745677 WILLIAMS , JANET LOIS Overpayment 10913 2006 0706 - 631121 0703 - 697884 ZUNIGA , GUADALUPE JASSO Overpayment 12195 2007 0805 - 772394 0802 - 874910 WACCAMAW TRANSPORT INC Overpayment 30000 2007 0803 - 750155 0712 - 826199 MURUFO , TRENT DELA Overpayment 14951 2007 0805 - 773960 0801 - 875079 VELEZ , ALEXANDER DUQUE Overpayment 13398 2007 0805 - 769609 0802 - 871331 STRICKLAND , ANGELA POTTER Release 18765 2007 0804 - 753574 0801 - 839336 NOEL , JR , STEVEN ROBERT Release 27098 2007 0805 - 768461 0802 - 873412 KELLY , MELVIN LEONARD Release 38186 2007 0803 - 741807 0712 - 818818 ISENHOUR , JAMES DANIEL Release 18914 2007 0803 - 744637 0712 - 821357 WILLARD , DAVID EDWARD Release 28999 2006 0703 - 592108 0612 - 657269 BAIN , CLARA DOWNING Overpayment 22474 2007 0805 - 764827 0802 - 865093 BYE , PHILIP ASHLEY Release 12749 2007 0801 - 723504 0701 - 803220 RATZLAFF , RICHARD FREDERICK Release 21782 2007 0804 - 757503 0801 - 831147 PHILLIPS , JESSE THOMAS Overpayment 12780 2007 0711 - 692986 0708 - 766280 GAINEY , OBEDA Overpayment 12152 2007 0712 - 708148 0709 - 783461 THOMAS , ARNETTA EASON Overpayment 13900 2007 0712 - 707064 0709 - 778049 JONES , DEBORAH MAE Overpayment 12867 2007 0709 - 667557 0706 - 744903 WARWICK , PHILLIP CHARLES Overpayment 12789 2007 0711 - 697614 0708 - 767649 NOSWORTHY , SUSAN DRASAL Overpayment 11802 2007 0804 - 755598 0801 - 834188 COX , III , JAMES BENJAMIN Tag Surrender 10584 2006 0706 - 624849 0703 - 700858 BYRD , JR , DAVID ANTHONY Overpayment 18572 2007 0711 - 696704 0708 - 772477 ROBERTS , MARY LYNNE Overpayment 25000 2007 0802 - 736061 0711 - 811833 LASSITER , LINDA VANN Overpayment 18873 2007 0712 - 711184 0709 - 786763 BRIDGERS , LISA PATTEN Overpayment 14976 2007 0709 - 665126 0706 - 745140 BROOKS , PETER LEWIS Overpayment 21407 2007 0803 - 744339 0712 - 823220 LEE , KENNETH EARL Release 17493 2007 0707 - 643077 0704 - 708467 JACKSON , BEVERLY JONES Overpayment 14919 2007 0711 - 693350 0708 - 773962 JAMES , JR , JOSEPH ALBERT Overpayment 16992 2007 0708 - 661681 0705 - 730728 STEVENS , JR , DONALD ALLEN Overpayment 12614 2007 0712 - 710253 0709 - 788188 WILSON , GLENN RAY Overpayment 11364 2007 0801 - 717540 0710 - 800986 HYLTON , SR , WILLIAM HAM Tag Surrender 12788 Real Personal Property Releases 5 20 2008 11 59 47 124 JAMES 2007 - 001987 2000068668 AMERSON , HAROLD 54962 5 20 2008 12 48 36 124 JAMES 2008 - 200636 2000140349 HUNT , KENNETH CLIFFORD 11968 5 20 2008 15 14 59 121 CATHY 2005 - 010192 2000083640 BRANCH BANK & TR LSG 27216 5 28 2008 15 25 41 124 JAMES 2007 - 015298 2000097836 CASTRO , JOSE MARIA 46085 5 30 2008 10 08 47 124 JAMES 2002 - 283426 2000082010 CONTEROS , GLADYS MIRANDA 25659Page830 July 7 , 2008 – 10 00 am Continued 5 30 2008 12 36 11 124 JAMES 2007 - 200941 2000096279 MILLIGAN , GARY DEAN 10752 6 2 2008 11 48 23 124 JAMES 2007 - 202087 2000136700 MYSUNSKI , EDWARD DEAN 31748 6 3 2008 16 49 10 105 SHEILA 2007 - 201292 50588020 LAMBERT , W R 28275 6 3 2008 16 50 46 105 SHEILA 2007 - 201293 50588020 LAMBERT , W R 28275 6 3 2008 16 51 51 105 SHEILA 2007 - 201294 50588020 LAMBERT , W R 28275 6 3 2008 16 53 06 105 SHEILA 2007 - 201295 50588020 LAMBERT , W R 28275 6 5 2008 14 54 28 124 JAMES 2007 - 074757 2000085190 SMITH , LILLIAN OLIVER 14241 6 5 2008 16 10 18 124 JAMES 2007 - 010182 2000064136 BRADFORD , ERIK 13283 6 5 2008 17 12 13 124 JAMES 2007 - 042169 2000001509 JOHNSON , KENNETH ANTHONY 11649 6 11 2008 14 21 21 121 CATHY 2006 - 001973 2000068668 AMERSON , HAROLD 54962 6 11 2008 14 25 01 121 CATHY 2005 - 001957 2000068668 AMERSON , HAROLD 57962 6 11 2008 14 28 26 121 CATHY 2004 - 001938 2000068668 AMERSON , HAROLD 54962 6 11 2008 15 18 12 124 JAMES 2005 - 027639 2000105433 GARCIA - FLORES INC 33619 6 11 2008 15 21 45 124 JAMES 2006 - 028424 2000105433 GARCIA - FLORES INC 30213 6 11 2008 15 24 55 124 JAMES 2007 - 029239 2000105433 GARCIA - FLORES INC 27497 6 11 2008 15 28 14 124 JAMES 2007 - 032050 2000098252 GROTHE , GEORGE LEROY 53206 Real Personal Property Refunds 5 16 2008 14 29 16 121 CATHY 2007 - 038660 2000111537 HUDSON , CAROLYN 30651 5 16 2008 14 29 30 121 CATHY 2007 - 038660 2000111537 HUDSON , CAROLYN 3166 5 19 2008 10 40 45 189 TERI 2007 - 062778 2000094066 PARRISH , AUSTIN D JR LF E 5156 5 20 2008 15 16 03 121 CATHY 2005 - 010192 2000083640 BRANCH BANK & TR LSG 2776 5 27 2008 10 17 10 187 RENEE 2007 - 008352 2000109696 BILITER , DIEDRA D 3023 5 27 2008 13 44 41 189 TERI 2007 - 062778 2000094066 PARRISH , AUSTIN D JR LF E 12988 5 28 2008 10 27 51 187 RENEE 2007 - 019934 2000056640 CROCKER , JAMES DAVID 34492 6 2 2008 15 49 57 189 TERI 2007 - 062778 2000094066 PARRISH , AUSTIN D JR LF E 13855 6 11 2008 10 29 34 189 TERI 2007 - 062778 2000094066 PARRISH , AUSTIN D JR LF E 11361 6 11 2008 14 22 04 121 CATHY 2006 - 001973 2000068668 AMERSON , HAROLD 58534 6 11 2008 14 25 53 121 CATHY 2005 - 001957 2000068668 AMERSON , HAROLD 59381 6 11 2008 14 29 09 121 CATHY 2004 - 001938 2000068668 AMERSON , HAROLD 56885 June 13 , 2008 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 05 16 08 to 06 12 08 Tax refunds - Personal Real Property 44119 Tax releases - Personal Real Property 1,13632 Motor Vehicle releases refunds 4,27884 Recommended by Tax Administrator Pat Goddard Approved by Finance Officer John R Massey 3 Public Comments A Recognition of EMS Personnel – Mr Steven Mesrey Steven Mesrey , 146 Trantham Trail , Clayton , addressed the Board along with his daughter , Madison Mr Mesrey stated that on April 19 , 2008 , he received assistance from the Clayton Area EMS , the Archer Lodge Fire Department as well as Johnston County 911 for a heart attack Mr Mesrey reported had it not been for the professional assistance he received from everyone involved , he would not have survived his medical emergency Mr Mesrey expressed his appreciation to everyone who had responded to his call for assistance , indicating there were many people who came to his aid At the request of the Chairman , Director of Emergency Services Kim Robertson along with Johnston County EMS Division Chief Patrick Cogdell introduced and recognized the following people who had responded to Mr Mesrey’s call for assistance in April Greg Stevens – Paramedic , former Clayton Area EMS Joan Vause – Paramedic , Clayton Area EMS Jason Thompson – Assistant Chief , Clayton Area EMS Pete Barnes – Chief , Archer Lodge Fire Dept Danny Morgan – Johnston County 911 Jason Barbour – Director , Johnston County 911 Brett Renfrow – Assistant Director , Johnston County 911Page831 July 7 , 2008 – 10 00 am Continued B Introduction of New Johnston County EMS Employees Director of Emergency Services Kim Robertson introduced and recognized the following new Johnston County EMS employees Shift Supervisor A – Matt Leceister Shift Supervisor B – Donnie Taylor Shift Supervisor C – Travis Scott Shift Supervisor D – Scott Blecke EMS Training Officer – Josh Holloman Greg Stevens – Paramedic Kelly Stevens – Paramedic Ms Robertson reported that Johnston County EMS began responding to calls for assistance on July 1 , 2008 and to date have responded to approximately 65 calls with all operations running smoothly C Johnston Community College – Revision to Parking Lot Paving Improvements Contract Johnston Community College President Dr Donald Reichard recalled that the Board had agreed to appropriate funding for parking lot improvements in the amount of 582,820 to Johnston Community College for parking lots A , B , B - 1 , and C Dr Reichard reported that since construction has begun on the parking lot improvements project , construction has also begun on the new Health Building addition Dr Reichard stated the construction company , Centurion , along with the paving company , ST Wooten , as well as the architects , MBAJ Architecture , all agree that there is too great of a risk to pave the parking lot in front of the Health Building Lot A until construction is completed on the addition of the building Dr Reichard requested the Board consider substituting Alternate Bid 1 136,035 - Lot A – Health Building with Alternate Bid 5 119,094 - Lot E – Art Building , unpaved lot , and further to apply the difference in between the alternate bid amounts 16,941 towards contingency funds Commissioner DeVan Barbour inquired as to when construction on the addition of the Health Building would be completed Dr Reichard reported the addition to the Health Building is scheduled to be completed in August 2009 Motion Commissioner W Ray Woodall moved the Board substitute Alternate Bid 1 136,035 - Lot A – Health Building with Alternate Bid 5 119,094 - Lot E – Art Building , unpaved lot and further to apply the difference in between the alternate bid amounts 16,941 towards contingency funds Commissioner Wade M Stewart seconded the motion Further Discussion Commissioner Allen L Mims , Jr noted Lot E for the Art Building , is considerably smaller than Lot A for the Health Building and inquired as to why the cost was only marginally less Dr Reichard explained that Lot E for the Art Building is currently gravel and will require additional work prior to paving , whereas , Lot A is currently paved and would have only required resurfacing Vote The motion carried by unanimous vote D Johnston County Schools – Cleveland and Corinth Area High Schools Johnston County Board of Education Chairman Kay Carroll reported that due to higher prices for steel , copper , and fuel , bids received for the construction of two new high schools Cleveland and Corinth areas have exceeded bond projections made in the summer of 2006 Mr Carroll noted that each project is short by 15 million Mr Carroll indicated the construction climate has changed significantly from 2 ½ years ago when the cost projections were originally assembled for the bonds Mr Carroll requested the Board of Commissioners to allow 15 million from Cleveland project funds to be transferred to the Corinth project for a total allocation of 45 million , leaving a balance of 15 million in the Cleveland account , thereby allowing all of the contract bidsPagePage pageNumber5832 July 7 , 2008 – 10 00 am Continued for the Corinth project to be awarded immediately by the Board of Education Further , Mr Carroll requested the Board to allow the Board of Education to award the grading contract in the amount of 4,412,445 for the Cleveland project leaving an unencumbered balance in the Cleveland account of 10,587,555 with the remainder of the contracts awarded when the additional funding is available County Manager Rick Hester stated County Finance Officer John Massey had reviewed the request with the Local Government Commission and they had no concerns Mr Carroll stated the bids for the two projects are viable for sixty days and if the deadline passes with no action , the bids will become null and void Mr Carroll indicated if the projects have to be rebidded , the costs could possibly come in even higher Commissioner Wade M Stewart expressed concern over possible overruns for site preparation costs for new school construction Mr Carroll reported historically , Johnston County Schools has not had a significant amount of overruns on site preparation costs ; however , he cautioned that the construction climate today is different than past projects Mr Carroll stated the bids for the projects are based on current costs Commissioner Stewart recalled that the site grading costs for the Dixon Road School project had exceeded original estimates when the contractor discovered substandard soils Commissioner Stewart acknowledged that it is difficult to cover all the bases ; however , he asked Johnston County Schools to be extremely conscientious on site preparation costs Mr Carroll reported soil testing is performed prior to site grading and he believed Johnston County Schools are as informed as they can be Johnston County Schools Superintendent Dr Anthony Parker clarified that the Dixon Road School project had not experienced overruns in financial costs , but rather costs in the time it took to complete the job Dr Parker noted the original bid for the site grading on Dixon Road was higher than other typical school construction sites , but the final financial cost did not exceed the original bid Request by Johnston County Schools Approved Upon a motion by Commissioner DeVan Barbour , seconded by Commissioner Tony Braswell , and carried by unanimous vote , the Board took the following actions 1 Transferred 15 million from the Cleveland project funds to the Corinth project for a total allocation of 45 million to Corinth leaving a balance of 15 million in the Cleveland account , thereby allowing all of the contracts for the Corinth project to be awarded immediately by the Board of Education ; and , 2 Allowed the Board of Education to award the grading contract 4,412,445 for the Cleveland project leaving an unencumbered balance in the Cleveland account of 10,587,555 with the remainder of the contracts to be awarded when the additional funding is available Mr Carroll stated the Board of Education appreciates the cooperation by the Board of Commissioners E Comments from Greg Stevens – New Paramedic with Johnston County EMS Greg Stevens , newly employed paramedic with Johnston County EMS , thanked the Board for their support as well as his fellow paramedics in the Johnston County EMS Division Mr Stevens commented on earlier remarks by Mr Steven Mesrey and noted often the positive aspects of EMS are not seen by the public and he appreciated the Board recognizing all the EMS workers present at the meeting 4 Recognition of West Johnston High School Envirothon Team Susan Woodard , Information Education Specialist with the Johnston County Soil and Water Conservation District , informed the Board that the West Johnston High School Envirothon Team has advanced to the North American Envirothon to be held in Flagstaff , Arizona this summer The West Johnston team will be representing Johnston County as well as the State of North Carolina in the Envirothon PagePage pageNumber6833 July 7 , 2008 – 10 00 am Continued At the request of the Chairman , the following team members came forward and introduced themselves as well as provided a brief background on their upcoming trip to the Envirothon Stephanie Tolar – Rising Junior Frankie Johnson – Rising Sophomore Lewis Braswell – Rising Senior Other Team Members – not present include Thomas Lineberger Erin Lineberger Ms Woodard invited the Board of Commissioners to a reception honoring the team to be held on July 8 , 2008 at the Johnston County Agricultural Building Ms Woodard recognized Team Advisor Melody Lineberger who has been working with the Envirothon Team on their training She noted the Envirothon focuses on five subject areas including soils land use , aquatic ecology , forestry , wildlife , and current environmental issues The Board congratulated the team on their efforts and wished them well in the upcoming competition in Arizona this summer 5 Recognition of Leadership Academy Graduates Human Resources Director Pat LaCarter reported the Johnston County Leadership Academy has graduated its third class with nineteen County employees participating in the program The Leadership Academy classes are taught by members of the County staff on the workings and relationships of departments , and offers sessions on interpersonal relationships Mr LaCarter recognized each graduate as follows Daniel Clifton , Maintenance Department Angie Creech , Board of Elections Roger Davis , Animal Services William Denton , Public Utilities Kenneth Evans , Public Utilities Margo George , Library Berry Gray , Planning Department Donna Holloman , Health Department Joyce Jackson , Emergency Services Terry Keene , Social Services Ann Lancaster , Inspections Department Eric Narron , Public Utilities Rhonda Penny , Technology Services Leigh Anne Price , Board of Elections Bryan Robinson , Inspections Department Angie Smith , Technology Services Ruby Smith , Library Joy Vaughn , Library Betty Whitley , Soil & Water Conservation At the inquiry of Chairman Cookie Pope , Leigh Anne Price reported she had learned many useful tools in the class that provides guidance for supervisors Ms Price expressed her appreciation to Mr LaCarter as well as all the County Department Directors who had participated in the instruction of the class Director of Animal Services Ernie Wilkinson announced that the Leadership Academy graduates had undertaken a class project and raised approximately 2,000 to purchase a pet rebreathing mask for each fire department in Johnston County Mr Wilkinson thanked the Leadership Academy graduates for their efforts The Board wished the graduates continued success in their future endeavors 6 Public Hearing – 10 15 am – NC DOT 2008 - 2009 Secondary Road Construction Program Advertised June 25 and July 2 , 2008 – The Smithfield Herald Also advertised in the Clayton News Star and Kenly News Note Public Hearing was delayed due to lengthy Public Comment items PagePage pageNumber7834 July 7 , 2008 – 10 00 am Continued The Chairman opened the public hearing , and stated the purpose of the hearing is for representatives of the North Carolina Department of Transportation to present the 2008 - 2009 Secondary Road Construction Program Tim Little , District Engineer , and Ricky Greene , Division Engineer , with the North Carolina Department of Transportation DOT , appeared before the Board to present the 2008 - 2009 Secondary Road Construction Program Mr Little reviewed the following information with the Board 2008 - 2009 North Carolina Department of Transportation Proposed Secondary Road Program Johnston County Anticipated Funding HWY - 1,507,95767 PAVED Anticipated Funding HWY – UNPAVED 210,74890 Anticipated Funding TRUST 872,83517 TOTAL ANTICIPATED 2,591,54174 Map Number Priority Description Length Anticipated Cost 1 2 SR 1141 Kinsey Road 070 210,00000 From NC 50 to Dead End 2 3 SR 2138 Oil Company Road 068 140,00000 From SR 2137 to US 301 3 4 SR 1746A Carroll Road 090 150,00000 From SR 1735 to SR 1720 4 5 SR 1748 Old Whitley Road 040 100,00000 From SR 1741 to Dead End 5 6 SR 2561 Elizabeth Road 040 100,00000 From SR 2510 to SR 2510 6 7 SR 2365 Cardinal Country 050 125,00000 Club Road SR 2364 to SR 2363 7 N A Replace three large pipes on N A 150,00000 SR 1141 and replace with aluminum arch pipes with headwalls 8 N A Construct Turn Lanes on SR N A 300,00000 1010 Cleveland Road at SR 1555 Barber Mill Road 9 N A Widen SR 1010 Cleveland 049 400,00000 Road From NC 42 to I - 40 Bridge to provide an additional lane 10 N A Widen SR 1350 Old School 399 200,00000 Road From SR 1162 to SR 1330 OTHER Description Anticipated Cost Contingency Fund Surveys , 300,000 Right of Ways , Fire Dept Rescue Driveways and Overdrafts PagePage pageNumber8835 July 7 , 2008 – 10 00 am Continued Maintenance fund allocation 257,000 used to supplement the maintenance budget for activities such as shoulder repair , spot stabilization , pipe replacement , safety projects , industrial access , etc Summary of the 2008 - 2009 program # Length Cost Homes # Businesses Total Rural 358 825,00000 250 20 Total Other 448 1,607,00000 Overall Total 806 2,432,00000 250 20 THIS PROGRAM IS SUBJECT TO AVAILABILITY OF FUNDING , RIGHT OF WAY , AND ENVIRONMENTAL REVIEW If Right of Way is unavailable on any of the above roads or if additional funding becomes available , the program will be continued in priority order In response to a question from Commissioner Wade M Stewart , Mr Little reported of the roads proposed , roads one through six on the list are currently unpaved Upon questions from Chairman Cookie Pope , Mr Little stated at the present time , a traffic signal is not planned at Cleveland Road and Barber Mill Road ; however , once the turn lane improvements are completed the DOT will review the traffic pattern to determine if a signal is needed Mr Little reported the DOT is currently evaluating options for improved traffic patterns at the new school site on Polenta Road Chairman Pope noted her concerns regarding Cleveland Road from NC Hwy 42 to the I - 40 Bridge indicating she is concerned about narrow traffic patterns heading towards the bridge Mr Little responded the DOT is trying to begin smaller projects that will help to relieve traffic congestion in that area Commissioner Stewart stated the DOT was very accommodating to the Meadow Lights event over the Christmas Holidays during the bridge construction on NC Hwy 96 and he has heard many compliments from the community expressing their appreciation to the DOT He also thanked the DOT for the resurfacing project on Devil’s Racetrack Road , indicating the residents in the area have been extremely pleased Commissioner W Ray Woodall expressed his appreciation to Mr Little , noting they had the opportunity to work together recently on a couple of projects , specifically the bridges on NC Hwy 39 Commissioner Woodall inquired as to when NC Hwy 42 from the Flowers Store heading towards US Hwy 70 would be made a four lane highway Division Engineer Ricky Greene reported eventually NC Hwy 42 from Flowers Store to US Hwy 70 would be a four lane divided highway with a grass median in the middle ; however , currently that project is not funded in the Transportation Improvement Program He noted there is a project underway to install a turn lane at NC Hwy 42 and Glen Laurel Road , just east of Caterpillar , which should help with traffic congestion Chairman Pope thanked the DOT for the completion of the Clayton Bypass Chairman Pope also stated the bridge on NC Hwy 210 at Middle Creek should be reviewed regarding its weight limit capacity Mr Greene stated if a bridge cannot take a legal load , then the DOT is quick to put in a load limit that the bridge can safely accommodate He noted there is a landfill operation near the Middle Creek Bridge which may require an upgrade to the bridge Commissioner Allen L Mims , Jr stated the Planning Board hears from citizens in subdivisions regarding cut - through traffic and the need for traffic calming devices Commissioner Mims acknowledged thatPagePage pageNumber9836 July 7 , 2008 – 10 00 am Continued the DOT does not allow traffic calming devices on state maintained roads ; however , he asked if there are any alternatives for signage that could help to slow the traffic in subdivisions Mr Little stated the DOT hears the same concerns from citizens on the need for traffic calming devices He reported the homeowners cannot legally put up signs in the right - of - way without assistance from the DOT Mr Little noted he tries to encourage homeowners to hold community meetings in order to remind everyone to maintain proper speed limits as well as contact local law enforcement to issue citations for speeders Mr Little stated many subdivisions are not posted and the residents can petition the DOT for help with speed limit signs Mr Greene commented the need for traffic calming devices is a statewide problem and he noted it is his opinion that at some point in the future , the issue may be looked at more thoroughly by the DOT Mr Little stated he appreciated the support from the Board of Commissioners There being no further comments , the Chairman closed the public hearing Motion to Concur with the Secondary Road Program for 2008 - 2009 Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner W Ray Woodall , and carried by unanimous vote , the Board adopted the following resolution concurring with the Secondary Road Program for 2008 - 2009 NC Department of Transportation Secondary Road Construction Programs 2008 - 2009 WHEREAS The Johnston County Board of Commissioners has received from the Department of Transportation the 2008 - 2009 Secondary Road Construction Programs as presented by North Carolina Department of Transportation officials , said roads being a part of the system maintained by the Department of Transportation , Division of Highways ; and WHEREAS After careful consideration of the services rendered by said roads and the traffic demands of said County , it is deemed necessary that said roads be improved in order to better serve the interest of the people of Johnston County NOW THEREFORE BE IT RESOLVED that the Johnston County Board of Commissioners hereby concurs with the requests of the North Carolina Department of Transportation to make the improvements on the roads listed on the Secondary Road Construction Programs for 2008 - 2009 th Adopted this the 7 day of July , 2008 7 Public Hearing – 10 20 am – Town of Clayton Downtown Redevelopment Incentive Grant Program - Advertised June 25 , 2008 The Smithfield Herald Note Public Hearing was delayed due to lengthy Public Comment items The Chairman opened the public hearing Clayton Downtown Development Coordinator Bruce Naegelen requested the Board of Commissioners to consider adopting a parallel incentive grant program with the Town of Clayton He stated the Town’s incentive grant program’s purpose is to encourage and promote new growth as well as rehabilitate older buildings in order to stimulate long term investments Mr Naegelen reported the Town adopted the incentive policy at their May 5 , 2008 meeting and the program is similar to the policies adopted recently by the Towns of Smithfield and Selma , except for the grant reimbursement percentages He noted Clayton has chosen a stair - step disbursement schedule , as follows Year 1 – 100 Year 2 – 100 Year 3 – 75 Year 4 – 50 Year 5 – 25 Mr Naegelen offered to answer any questions by the Board Commissioner Allen L Mims , Jr inquired as to time limits on the program Mr Naegelen reported the Town plans to implement the program as long as there is a need He further reported only one grant agreement for any given property will be eligible within a 15 year period from the conclusion of the previous grant Page0837 July 7 , 2008 – 10 00 am Continued There being no further comments , the Chairman closed the public hearing Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner Allen L Mims , Jr , and carried by unanimous vote , the Board agreed to participate with the Town of Clayton in the Clayton Downtown Redevelopment Incentive Grant Program by adoption of the following resolution RESOLUTION ADOPTING PARALLEL INCENTIVE GRANTS TO THE TOWN OF CLAYTON’S DOWNTOWN REDEVELOPMENT INCENTIVE GRANT PROGRAM WHEREAS , commercial and economic development are among the primary goals of the Johnston County Board of Commissioners ; and WHEREAS , the Clayton Town Council adopted Policy # 2008 - 028 approving the Clayton Downtown Redevelopment Incentive Grant Program on May 5 , 2008 which allows for the creation of incentive grants to promote infill growth with new commercial development and the major rehabilitation of older buildings within Clayton’s downtown commercial district , as delineated on the attached map Exhibit A ; WHEREAS , the Town of Clayton has requested Johnston County partner with the Town in providing parallel incentive grants from the County ; and WHEREAS , Johnston County has determined it is in the best interest of the citizens of Johnston County and the Town of Clayton to adopt the policy of the Town of Clayton’s Downtown Redevelopment Incentive Grant Program NOW , THEREFORE , BE IT RESOLVED that the Board of Commissioners of Johnston County , meeting in th regular session on the 7 day of July 2008 , hereby adopt this resolution to provide parallel incentive grants pertaining to the designated properties outlined in the Town of Clayton’s Downtown Redevelopment Incentive Grant Program This resolution shall be effective immediately 8 Public Hearing – 10 25 am – ROAP Grant Funds 2008 - 2009 Advertised June 25 , 2008 – The Smithfield Herald Note Public Hearing was delayed due to lengthy Public Comment items Chairman Cookie Pope opened the public hearing , and stated the purpose of the hearing is to allow public comment on the proposed application to the NC Department of Transportation for a Rural Operating Assistance Program ROAP grant for FY 2008 - 2009 Lynn Birmingham , JCATS Transportation Manager , outlined the program totals of the FY 2008 - 2009 ROAP grant as follows PROGRAM TOTAL EDTAP 121,449 EMP 33,491 RGP 156,552 TOTAL 311,492 Ms Birmingham also noted that she had copies of the “ Voluntary Title VI Public Involvement ” form which collects information on race , color , national origin and gender of the attendees available , if anyone would like to complete the form Ms Birmingham requested the Board approve the application , and authorize the Council on Aging and the CTS Advisory Board of Directors to apply for a ROAP grant for FY 2008 - 2009 There being no further comments , the Chairman closed the public hearing Upon a motion by Commissioner DeVan Barbour , seconded by Commissioner Allen L Mims , Jr , and carried by unanimous vote , the Board approved the application and authorized the Council on Aging and the CTS Advisory Board of Directors to apply for a ROAP grant for FY 2008 - 2009 9 Johnston County Schools – Reimbursement Request for Utility Overages 2007 - 2008 Johnston County Board of Education Chairman Kay Carroll requested reimbursement for utility overages for utility bills from the 2007 - 2008 school year Mr Carroll indicated in accordance with the agreement between the County and the Board of Education , Johnston County Schools reduced the utility budget in order to purchase school buses for the 2007 - 2008 school year He noted the school system has paid final utility bills for the 2007 - 2008 school year with utility costs totaling 8,083,626 and with a budget of 6,751,402 , the costs exceeded the budget by 1,332,224 Mr Carroll stated the school buses were ordered in January 2008 ;Page1838 July 7 , 2008 – 10 00 am Continued however , due to the State modifying the specifications for school buses , the buses have not been received In the interim , Johnston County Schools has utilized borrowed buses and once a school system borrows a school bus , that school system is required to purchase the bus Commissioner Allen L Mims , Jr noted he did not see the 1,332,224 as a source of revenue in the Johnston County Schools FY 2008 - 2009 budget Mr Carroll reported Johnston County Schools has not adopted their FY 2008 - 2009 budget as of yet Commissioner Mims noted Johnston County Schools has been paying their utility bills all along and asked would the reimbursement of 1,332,224 be put towards fund balance Johnston County Schools Finance Officer Dan Jones reported the undesignated fund balance for Johnston County Schools as of June 30 , 2007 , was 7,400,000 , of which 3,000,000 was appropriated towards the FY 2008 - 2009 budget Mr Jones stated other various appropriations were made from the undesignated fund balance such as appropriations to utilities and as of June 30 , 2008 , the undesignated fund balance stands at 2,195,863 , which equals 1 of their operating funds In response to a question from Commissioner Mims , Mr Jones confirmed that the reimbursement would be applied towards the fund balance Commissioner DeVan Barbour asked when the ordered buses would be paid for Mr Jones stated Johnston County Schools would have to pay for the buses when they are received Mr Jones noted the State is still in the process of modifying the specifications for new school buses Mr Jones stated Johnston County Schools is in line to receive new buses ; however , although delivery is expected some time this year , it will not occur until the State completes its process of modifying and approving the specifications Upon a question from Commissioner Barbour , Mr Jones stated the funds to pay for the new school buses are designated in the fund balance Commissioner Tony Braswell asked for clarification on the exact amount needed for the school bus purchase Mr Jones stated the initial purchase order released for the purchase of the new school buses was in the amount of 949,92000 ; however , he noted more funds should be added to allow for taxes and licenses which could bring the total to approximately 962,000 for the twelve new buses that are on order Commissioner Wade M Stewart questioned the process of borrowing school buses Johnston County Schools Superintendent Dr Anthony Parker reported the borrowed buses are retired buses that have been taken off the road based on mileage and maintenance records He noted it does cost more to utilize the borrowed buses ; however , they must be utilized until the new buses are received Dr Parker indicated he believes the new buses will be received prior to school beginning in the fall Commissioner Jeffrey P Carver recalled that he believed the agreement reached by the Boards on the purchase of new buses was for an amount up to 1,000,000 and further , he had been under the impression that the new buses were to be purchased right away Mr Carroll acknowledged that the reimbursement amount agreed upon was not to exceed 1,000,000 Commissioner Carver stated if the new school buses are purchased for approximately 962,000 then that amount is all the County should have to be responsible for Mr Parker stated Johnston County Schools wanted to provide the exact amount of the utilities overage ; however , he acknowledged that the agreement was to reimburse an amount up to 1,000,000 for the purchase of the new school buses Mr Carroll reiterated that Johnston County Schools would only like to be reimbursed for the exact amount of the new school buses Page2839 July 7 , 2008 – 10 00 am Continued Discussion on Request Tabled After further discussion , the Chairman tabled the request to allow more time to review the information 10 Johnston County Schools - Update on Transportation Costs for FY 2008 - 2009 At the request of the Chairman , Johnston County Schools Superintendent Dr Anthony Parker provided the Board with an update on the current budget discussions ongoing in the General Assembly Dr Parker reported Johnston County Schools is expecting a shortfall of 1,200,000 in transportation costs for FY 2008 - 2009 He noted the Legislature is sending to the Governor a recommendation for 35 million for FY 2008 - 2009 ; however , transportation costs are expected to cost approximately 60 million or more , statewide Dr Parker cautioned that he anticipates a number of problems with funding shortfalls in FY 2008 - 2009 The Board took a five minute recess 11 Resolution – O’Neal’s Water District Phase I – Bond Closing Upon a motion by Commissioner Tony Braswell , 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 2008 IN THE AGGREGATE PRINCIPAL AMOUNT OF 3,303,000 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 3,303,000 General Obligation Water Bonds , Series 2008 the “ Bonds ” to refund 3,303,000 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 7 , 2008 , 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 3,303,000 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 21 , 2008 The Bonds shall mature in annual installments on June 1 in years and amounts as follows Year Amount Year Amount Year Amount 2011 38,000 2024 64,000 2037 108,000 2012 39,000 2025 66,000 2038 112,000 2013 41,000 2026 69,000 2039 117,000 2014 43,000 2027 72,000 2040 122,000 2015 44,000 2028 75,000 2041 127,000 2016 46,000 2029 78,000 2042 132,000 2017 48,000 2030 81,000 2043 137,000 2018 50,000 2031 85,000 2044 143,000 2019 52,000 2032 88,000 2045 149,000 2020 54,000 2033 92,000 2046 152,000 2021 56,000 2034 96,000 2047 152,000 2022 59,000 2035 99,000 2048 152,000 2023 61,000 2036 104,000Page3840 July 7 , 2008 – 10 00 am Continued Year Amount Year Amount Year Amount The Bonds shall bear interest at a rate of 4125 payable on June 1 , 2009 , 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 the 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 , 2019 are not subject to optional redemption , and Bonds maturing on or after June 1 , 2019 , are subject to redemption , at the option of the District , at any time on or after June 1 , 2018 , 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 Bonds shall be in substantially the following form , the terms and requirements of which are incorporated herein by reference REGISTERED REGISTERED No R - ___ 3,303,000 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 2008 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 THREE MILLION THREE HUNDRED THREE THOUSAND AND NO 100 DOLLARS 3,303,000 on the first day of June in installments as follows Year Amount Year Amount Year Amount 2011 38,000 2024 64,000 2037 108,000 2012 39,000 2025 66,000 2038 112,000 2013 41,000 2026 69,000 2039 117,000 2014 43,000 2027 72,000 2040 122,000 2015 44,000 2028 75,000 2041 127,000 2016 46,000 2029 78,000 2042 132,000 2017 48,000 2030 81,000 2043 137,000 2018 50,000 2031 85,000 2044 143,000 2019 52,000 2032 88,000 2045 149,000 2020 54,000 2033 92,000 2046 152,000 2021 56,000 2034 96,000 2047 152,000 2022 59,000 2035 99,000 2048 152,000 2023 61,000 2036 104,000Page4841 July 7 , 2008 – 10 00 am Continued 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 4125 per annum , while held by the original payee , on June 1 , 2009 , 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 , 2019 , it is not subject to redemption at the option of the District , and b if this bond matures on or after June 1 , 2019 , it is subject to redemption at the option of the District , at any time on or after June 1 , 2018 , 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 __ , 2008 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 Page5842 July 7 , 2008 – 10 00 am Continued 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 21 , 2008 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 2008 , 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 2008 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 2008 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 2008 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 2008 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 2008 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 obligations would , when aggregated with all other tax - exempt obligations theretofore issued in 2008 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 2008 not including private activity bonds , including the Bonds ;Page6843 July 7 , 2008 – 10 00 am Continued c The Board has no reason to believe that the District and such subordinate entities will issue tax - exempt obligations in 2008 in an aggregate amount that will exceed such 5,000,000 limit ; d At least 95 of the proceeds of the Bonds shall be used for “ local government activities ” of the District within the meaning of Section 148 f 4 iii of the Code ; provided , however , that if the Board receives an opinion of Hunton & Williams LLP , Raleigh , North Carolina , or other bond counsel acceptable to the registered owners of the Bonds that compliance with any restriction set forth in b above will not prevent the District from having to rebate to the United States any part of the earnings derived from the investment of the gross proceeds of the Bonds , the Board need not comply with such restriction 13 The Chairman and the Clerk are hereby authorized and directed to take all proper steps to have the Bonds prepared and , when they shall have been duly renewed by the LGC , to execute the Bonds and to deliver the Bonds to the State Treasurer of North Carolina for delivery to the United States of America 14 All other actions of officers of the District in conformity with the purposes and intent of this resolution and in furtherance of the issuance and sale of the Bonds are hereby approved and confirmed 15 Such officers of the District as may be requested are hereby authorized and directed to execute appropriate closing papers including a certificate setting forth the expected use and investment of the proceeds of the Bonds in order to show that such expected use and investment will not violate the provisions of Section 148 of the Code and regulations issued pursuant thereto , applicable to “ arbitrage bonds ” Such papers and certificates shall be in such form as may be requested by bond counsel for the District 16 This resolution , in particular Sections 5 and 7 hereof , constitutes a system of registration for the Bonds pursuant to NCGS § 159E - 4 17 All resolutions or parts of resolutions in conflict herewith are hereby repealed 18 This resolution shall take effect immediately Commissioner Jeffrey P Carver moved the passage of the foregoing resolution and Commissioner W Ray Woodall seconded the motion , and the resolution was passed by the following vote Ayes Commissioners Cookie Pope , Wade M Stewart , Allen L Mims , Jr , W Ray Woodall , Jeffrey P Carver , DeVan Barbour , and Tony Braswell Nays None Not voting None 12 Public Utilities – O’Neal’s Water District – Resolution for Grant Application Director of Utilities and Engineering , Tim Broome , PE , reported the North Carolina Rural Center is hosting a second round of grant applications in July for water and sewer projects which will meet “ critical needs ” Mr Broome stated the O’Neal’s Water District previously applied for Rural Center grant assistance for an elevated tank and water main upsizing ; however , the Rural Center staff determined the project did not demonstrate a “ critical need ” Mr Broome noted staff would like to resubmit the application with more thorough justification Mr Broome requested the Board to adopt the resolution authorizing the application to be resubmitted Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Jeffrey P Carver , and carried by unanimous vote , the Board adopted the following resolution authorizing an application for grant assistance from the North Carolina Rural Center for the O’Neal’s Water District AUTHORIZING RESOLUTION BY GOVERNING BODY OF THE APPLICANT WHEREAS , In the summer of 2007 , the North Carolina General Assembly included a 100 million appropriation to the North Carolina Rural Economic Development Center in the FY2007 - 2009 state budget , for the purpose of making grants to rural communities in need of water and wastewater infrastructure improvements ; and WHEREAS , the O’Neal’s Water District has need for and intends to construct a water transmission and distribution system improvements project described as the O’Neal’s Water District elevated tank and transmission mains ; and WHEREAS , the O’Neal’s Water District intends to request grant assistance from the Supplemental Grants Program for the project ; NOW THEREFORE BE IT RESOLVED , BY THE BOARD OF COMMISSIONERS OF THE O’NEAL’S WATER DISTRICT That the O’Neal’s Water District will arrange financing for all remaining costs of the project , if approved for a grant That the O’Neal’s Water District will provide for efficient operation and maintenance of the project on completion of construction thereof Page7844 July 7 , 2008 – 10 00 am Continued That Rick J Hester , District Manager and successors so titled , is hereby authorized to execute and file an application on behalf of the O’Neal’s Water District with the NCREDC Rural Center for a grant to assist in the construction of the project described above That Rick J Hester , District Manager and successors so titled , is hereby authorized and directed to furnish