August 4, 2008 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 1 Meeting of the Johnston County Board of Commissioners August 4 , 2008 10 00 am The Johnston County Board of Commissioners met in regular session Monday , August 4 , 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 At the request of the Chairman , Retired Col and Chairman of the Emergency Medical Services Advisory Committee , Rudy Baker , led those in attendance in the pledge of allegiance to the American flag Commissioner W Ray Woodall opened the meeting with a prayer 1 Approval Discussion of Agenda Upon a motion by Commissioner Jeffrey P Carver , 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 Jeffrey P Carver , and carried by unanimous vote , the Board approved the consent agenda items as follows A Approval of Minutes – July 7 , 2008 10 00 am and 6 00 pm B Department of Transportation – Additions to System The Board concurred with the Department of Transportation’s recommendation to add the following roads to the State Maintained System Golfers Crossing and Silver Tee Court – Cardinal Pointe Subdivision – Micro Township C Call for Public Hearing – Economic Development Opportunity The Board scheduled a public hearing to be held at the September 2 , 2008 10 00 am Board meeting to allow for public comment on a proposal for the County to provide certain economic incentives , pursuant to NCGS 158 - 71 , to a company that is planning the construction of a new facility in Johnston County , North Carolina D Request for Fireworks Display – Meadow Volunteer Fire Department th The Board approved a fireworks display for the Meadow Volunteer Fire Department’s 50 Anniversary celebration on Saturday , September 13 , 2008 at 9 00 pm at the Meadow Fire Department , according to North Carolina General Statute 14 , Article 54 and Chapter 33 of the 2006 North Carolina Fire Code , along with the necessary permits from the Johnston County Inspections Department E Tax Releases & Refunds – 06 13 2008 – 07 15 2008 Year Bill # Acct # Name Tran Type Paid 2007 0806 - 784857 0803 - 877941 BAGLEY , JR , WARREN THOMAS Overpayment 29128 2007 0708 - 657641 0705 - 731077 YOUNG , LORNA ANN Release 24079 2007 0805 - 771057 0802 - 872911 PEEDEN , ROGER LYNN Release 19086 2007 0806 - 777651 0803 - 887180 BOYETTE , BRAD LEWIS Release 19371 2007 0712 - 706050 0709 - 785455 BROWN , MONTEE JAUAN Overpayment 16424 2007 0806 - 782206 0803 - 889681 TANT , ELBERT DWAYNE Release 17897 Page2 August 4 , 2008 – 10 00 am Continued 2007 0803 - 749981 0712 - 820345 HONDA LEASE TRUST Tag Surrender 29028 2005 0604 - 461068 0601 - 502209 SMITH , JOANNE SESSION Overpayment 4,08700 2005 0604 - 461068 0601 - 502209 SMITH , JOANNE SESSION Void Refund 4,08700 2007 0806 - 786499 0803 - 884709 DAUGHTRY , LOIS ISSETTE Release 14108 2006 0702 - 584092 0611 - 642508 HINNANT , RICHARD MILFORD Overpayment 16666 1999 9908 - 595779 9905 - 788415 GREENWOOD , ANDREW TEMPLETON Overpayment 17541 2007 0801 - 720375 0710 - 801645 TOMKO AND ASSOCIATES LLC Release 24593 2007 0806 - 789510 0710 - 801645 TOMKO AND ASSOCIATES LLC Release 21593 2007 0804 - 758144 0801 - 836219 DIEHL , CHRISTOPHER LEE Overpayment 14546 2007 0806 - 776074 0803 - 882700 TUGGLE , BOBBY JAMES Release 10332 2007 0804 - 762019 0801 - 831015 THOMPSON , JR , WILLIAM BONNER Release 14563 2007 0805 - 764658 0802 - 869100 BEASLEY , KEVIN WAYNE Release 18043 2007 0806 - 778218 0803 - 886009 FAUCETTE , RHONDA ELLIS Release 18959 2007 0804 - 750392 0801 - 835778 BRINSON , WESLEY MAURICE Release 13711 2006 0705 - 614089 0702 - 685867 SMITH , SUSAN MCBIRNEY Overpayment 10640 2007 0806 - 777400 0803 - 889545 ALLEN , BERLIN LEON Release 31599 2007 0806 - 789515 0803 - 889545 ALLEN , BERLIN LEON Release 28682 2007 0804 - 752395 0801 - 838180 D & R CONTRACTING Overpayment 13592 2007 0806 - 786950 0803 - 890220 K & D ENTERPRISES Release 36194 2007 0805 - 766368 0802 - 873820 POE , BARBARA ELLEN Release 22148 2007 0806 - 789144 0803 - 890336 NEACE , RANDAL JOE Release 27771 2007 0802 - 731256 0711 - 814022 MCNUTT , HARRY GLENN Overpayment 12582 2007 0802 - 731256 0711 - 814022 MCNUTT , HARRY GLENN Void Refund 12582 2007 0806 - 778035 0803 - 882032 DEBNAM , JOAN STYRON Overpayment 19398 2007 0712 - 712843 0709 - 781449 FAIRCLOTH - MESSER , BILLIE JEAN Overpayment 12148 2007 0806 - 776643 0803 - 885440 JOHNSON , JR , A G Release 25352 2007 0805 - 766131 0802 - 873459 MUNFORD , CHARLES LARRY Release 11659 2007 0712 - 714821 0709 - 784593 ROSS , SR , CORY AUBREY Overpayment 16800 2007 0712 - 707810 0709 - 782467 ROUSE , CHARLES LEE Overpayment 11329 2007 0804 - 758078 0801 - 838670 BARWICK , CARRIE LYNN Overpayment 18593 2007 0805 - 764406 0802 - 873573 WHITE , ANDREW LEWIS Release 15498 2007 0806 - 788016 0803 - 886432 JAMES , LYNN SUZANNE Release 11986 2005 0509 - 379697 0506 - 421663 SMITH , JOANN SESSION Overpayment 11937 2006 0703 - 594974 0612 - 649723 HICKS , TIMOTHY WAYNE Overpayment 11727 2007 0802 - 731004 0711 - 812757 JOYNER , HILDA GAITAN Overpayment 18118 2004 0505 - 325891 0502 - 371971 D & H REALTY Release 10055 2007 0804 - 753376 0801 - 836590 MARTIN , WADE HAMPTON Overpayment 12899 2007 0806 - 782327 0803 - 886846 WISE , KATHRYN ANN Release 29474 2007 0806 - 782328 0803 - 888029 WISE , KATHRYN ANN Release 10175 2007 0806 - 787989 0803 - 890316 HANSEN , DEAN ALAN Overpayment 13050 2007 0806 - 778329 0803 - 886580 GODDARD , THOMAS RAMSEY Release 18279 2007 0802 - 731341 0711 - 806128 MORRISON , SARA SANTINA Overpayment 14934 2007 0806 - 783936 0803 - 885171 SANDERS , CANDACE NICOLE Release 22106 2007 0801 - 717084 0710 - 803114 MONROE , ANTWAN RASHAD Overpayment 26416 2007 0803 - 749946 0712 - 817810 SPEECH PARTNERS INC Release 16187 2007 0803 - 743898 0712 - 818986 WOOD , DEBRA PARKER Overpayment 10998 2007 0806 - 788513 0803 - 879314 MAHLER , JERRY PARKER Release 12267 2007 0806 - 779383 0803 - 889772 PAYNE , KELLY BRIAN Release 11192 2007 0806 - 778762 0803 - 888654 JOYCE , DANIEL JOSEPH Release 12089 2007 0709 - 676347 0706 - 742062 BEAUFORT , JR , JOHNNIE Release 10111 2007 0805 - 767587 0802 - 871098 KLINGER , CHRISTOPHER RYAN Release 21701 2007 0801 - 724357 0710 - 797201 WOODARD , CHRISTOPHER DOUGLAS Overpayment 22317 2007 0709 - 670532 0706 - 743052 AYCOCK , DEBORAH HOUSE Overpayment 21272 2006 0706 - 623375 0703 - 701753 BYRD , DEBORAH DENNING Overpayment 11361 2007 0801 - 725544 0710 - 797125 WOODARD , LASANDRA YVONNE Overpayment 11693 2007 0806 - 780227 0803 - 886149 WINSLOW , EDWIN RAY Release 19613 2007 0710 - 688448 0707 - 758300 TROY , WILLIAM JOSEPH Release 25015 2007 0806 - 776544 0803 - 886959 HERRING , LOUIS DALE Release 46268 2007 0806 - 787060 0803 - 888886 MAPLES , JR , JOSEPH ELLIS Release 13986 2007 0806 - 787921 0803 - 888755 CLYDES CHAPEL BAPTIST CHURCH , INC Release 46640 2007 0806 - 786846 0803 - 887497 HOYT , III , FREDERICK WILLIAM Release 28499 2007 0805 - 771307 0802 - 865524 BRANSCOME , TONYA HOOKS Release 13678 Page3 August 4 , 2008 – 10 00 am Continued 2007 0804 - 756172 0801 - 835856 THAMES , TOD DALLAS Release 20306 2007 0805 - 774580 0802 - 865001 HAWKS , DANNY LEE Release 10619 2007 0804 - 758022 0801 - 836020 PHIPPS , JANET NEWSOME Overpayment 11371 2007 0804 - 751832 0801 - 829512 ADAMS , JR , EARL EUGENE Overpayment 12784 2007 0804 - 762020 0801 - 837863 THORNTON , BRYAN SCOTT Overpayment 13433 2007 0712 - 714934 0709 - 777420 STONE , CHRISTOPHER BURTON Overpayment 18692 2007 0804 - 758231 0801 - 835984 ICENHOWER , KIMBERLY ANN Release 17422 2007 0801 - 720949 0710 - 799629 FUENTES , MARIA GUADALUPE Overpayment 10660 2007 0709 - 673975 0706 - 746766 HAWKINS , CHRISTOPHER GLENN Release 17010 Real Personal Property Releases 6 13 2008 16 47 59 124 JAMES 2002 - 283429 2000092764 COTTON , CHRIS LEE 27371 6 13 2008 16 51 58 124 JAMES 2004 - 202723 2000092764 COTTON , CHRIS LEE 23399 6 13 2008 16 52 50 124 JAMES 2004 - 202724 2000092764 COTTON , CHRIS LEE 19821 6 16 2008 17 14 24 124 JAMES 2007 - 501214 2000135305 THE CIT GROUP CONSUMER FI 26042 6 16 2008 17 15 34 124 JAMES 2007 - 501268 2000135305 THE CIT GROUP CONSUMER FI 23873 6 20 2008 8 45 22 124 JAMES 2007 - 061811 2000127214 PAPAS SUBS & PIZZA 51518 6 26 2008 15 29 09 121 CATHY 2003 - 051218 2000087111 MITCHELL , EMMA DORIS 60979 6 26 2008 15 32 04 121 CATHY 2004 - 052276 2000087111 MITCHELL , EMMA DORIS 60979 6 26 2008 15 34 08 121 CATHY 2005 - 053368 2000087111 MITCHELL , EMMA DORIS 60979 6 26 2008 16 05 54 121 CATHY 2006 - 055089 2000087111 MITCHELL , EMMA DORIS 62762 6 26 2008 16 07 40 121 CATHY 2007 - 056653 2000087111 MITCHELL , EMMA DORIS 62762 6 27 2008 12 25 57 121 CATHY 2002 - 283429 2000092764 COTTON , CHRIS LEE 27371 6 27 2008 12 32 27 121 CATHY 2002 - 283429 2000092764 COTTON , CHRIS LEE 28336 7 1 2008 11 56 18 105 SHEILA 2008 - 200862 10668150 BLACKMAN , BRUCE M & WIFE 10248 7 1 2008 11 57 25 105 SHEILA 2008 - 200861 10668150 BLACKMAN , BRUCE M & WIFE 10248 7 1 2008 11 58 22 105 SHEILA 2008 - 200860 10668150 BLACKMAN , BRUCE M & WIFE 10248 7 1 2008 16 26 37 105 SHEILA 2007 - 201647 2000135533 MORGAN COOPER INC 56321 7 8 2008 12 03 07 121 CATHY 2007 - 042212 2000122199 JOHNSON , L I INC 10991 Real Personal Property Refunds 6 13 2008 10 21 12 189 TERI 2007 - 028414 2000004227 FOYE , PATRICK 14347 6 16 2008 13 29 38 189 TERI 2007 - 032170 34773790 GUIN , BARNEY WAYNE 14756 6 25 2008 14 14 07 189 TERI 2007 - 028413 2000004227 FOYE , PATRICK 14564 6 26 2008 15 31 21 121 CATHY 2003 - 051218 2000087111 MITCHELL , EMMA DORIS 62199 6 26 2008 15 33 35 121 CATHY 2004 - 052276 2000087111 MITCHELL , EMMA DORIS 61499 6 26 2008 15 35 17 121 CATHY 2005 - 053368 2000087111 MITCHELL , EMMA DORIS 60979 6 26 2008 16 07 15 121 CATHY 2006 - 055089 2000087111 MITCHELL , EMMA DORIS 62762 6 26 2008 16 08 52 121 CATHY 2007 - 056653 2000087111 MITCHELL , EMMA DORIS 62762 7 8 2008 12 06 01 121 CATHY 2007 - 042212 2000122199 JOHNSON , L I INC 10991 July 16 , 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 06 13 08 to 07 15 08 Tax refunds - Personal Real Property 19291 Tax releases - Personal Real Property 55185 Motor Vehicle releases refunds 5,99294 Recommended by Tax Administrator Pat Goddard Approved by Finance Officer John R Massey 3 Public Comments A Johnston County Schools – Cleveland High School Construction Bids Johnston County Schools Superintendent , Dr Anthony Parker , requested the Board of Commissioners to allow the Board of Education to accept the bids for the construction of the Cleveland High School , pending the positive results of the public hearing regarding financing for the project later in the meeting and further , pending the Local Government Commission’s approval of the financing Dr Parker explained that the Board of th Education needed to accept the bids on the construction by August 9 or they will expire At the inquiry of Commissioner Jeffrey P Carver , Dr Parker reported Johnston County Schools has discussed getting an extension on the contract prices with the contractor ; however , they have not been able to secure the extensions due to the current status of the economy and the increasing prices in material costs Page4 August 4 , 2008 – 10 00 am Continued County Manager Rick Hester reminded the Board that the Local Government Commission will meet on September 2 , 2008 to review the County’s application for financing Both Commissioners Allen L Mims , Jr and DeVan Barbour asked Dr Parker to wait on a decision on the request until after the public hearing scheduled for later in the meeting B Recognition of Award Recipients – Register of Deeds and the County Attorney Chairman Cookie Pope recognized Johnston County Register of Deeds Craig Olive along with office employees Donna Stallings , Jeff Wilson , and Clarry Gathers for receiving the 2007 - 2008 Ralph W Ketner Employee Productivity Award from the North Carolina Association of County Commissioners The award was received for the development of a program that allows businesses to electronically submit documents for recording at the Register of Deeds Office , known as E - recording Chairman Pope also recognized Johnston County Attorney Mark Payne as the recipient of the 2007 - 2008 County Attorney of the Year Award from the North Carolina Association of County Attorneys 4 Request for Tax Exempt Loan Status – Princeton Volunteer Fire Department The Chairman accepted a request from Commissioner Jeffrey P Carver to abstain on the following matter , and the Board agreed by consent Princeton Volunteer Fire Department Chief Ken Starling requested the Board to consider approving tax exempt loan status to allow the Fire Department to borrow 400,000 from First Citizens Bank for the purchase of a new rescue pumper truck Commissioner Tony Braswell asked Mr Starling if the current district tax rate would be sufficient to accommodate the debt service on the new truck Mr Starling confirmed that the department has been planning for the purchase for the past few years and would have sufficient funds to repay the loan Upon a motion by Commissioner Tony Braswell , seconded by Commissioner DeVan Barbour , and carried by the following vote , the Board adopted the resolution approving tax exempt loan status for the Princeton Volunteer Fire Department Ayes Commissioners Cookie Pope , Wade M Stewart , Allen L Mims , Jr , W Ray Woodall , DeVan Barbour , and Tony Braswell Nays None Abstain Commissioner Jeffrey P Carver NOW , THEREFORE , BE IT HEREBY RESOLVED , that the Board of Commissioners of Johnston County , North Carolina , does hereby approve a tax - exempt loan to the Princeton Volunteer Fire Department of Johnston County , North Carolina the “ VFD ” , from First Citizens Bank , in the principal amount of 400,000 which loan is for the following purpose The purchase by the VFD of a KME Rescue Pumper Truck , which will be owned and operated by the VFD , and will be maintained at the following address 501 West Dr Donnie Jones Blvd , Princeton , NC 27569 RESOLVED , FURTHER , that the approval of the loan to the VFD set forth above is given solely for purposes of the public approval requirements for tax - exempt financing applicable to the VFD because of Section 150 e 3 and Section 147 f of the Internal Revenue Code of 1986 , as amended , and such approval does not obligate the County or its Board of Commissioners in any way regarding repayment of the debt th Duly certified by the execution hereof and the placement hereon of the seal of said county , this 4 day of August , 2008 5 EMS Medical Director – Recommendation of Appointment Emergency Services Director Kim Robertson requested the Board appoint Dr Edwin Harman , MD , as the EMS Medical Director for Johnston County Ms Robertson reported Dr Hartman has been acting in thePagePage pageNumber55 August 4 , 2008 – 10 00 am Continued capacity of Assistant EMS Medical Director and has agreed to assume the role of EMS Medical Director due to the resignation of Dr Frank Conn In response to questions from Chairman Cookie Pope , Ms Robertson stated Dr Hartman has agreed to the terms of the contract and the appointment is recommended by the EMS Advisory Board Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Jeffrey P Carver , and carried by unanimous vote , the Board appointed Dr Edwin Hartman , MD as the EMS Medical Director for Johnston County 6 Budget Revisions County Finance Officer John Massey outlined the proposed budget revisions and offered to answer any questions by the Board Commissioner Allen L Mims , Jr asked if the transfer of funds from the FY 2007 - 2008 fund balance into the FY 2008 - 2009 budget , for the various budget revisions , had been illustrated as designated funds in the fund balance from FY 2007 - 2008 Mr Massey confirmed the funds had been designated for use by the Health Department , Jail and the Sheriff’s Office and were not considered as part of the available fund balance Commissioner W Ray Woodall moved the Board approve the following budget amendments , seconded by Commissioner Tony Braswell , and carried by unanimous vote Health Department FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 59203300 Departmental Supplies 59765 TOTAL NET EXPENDITURES 59765 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 592034155 Health and Wellness Trust 59765 59765 TOTAL NET REVENUE FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 59550400 Professional Services 3,00000 10 59554500 Contract Services 2,50000 10 59553300 Departmental Supplies 3,00000 10 59553310 Lab Supplies 2,00000 10 59551400 Travel 1,00000 10 59557050 Non - major Capital Assets 6,28100 TOTAL NET EXPENDITURES 17,78100 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 595534155 Health and Human Services 17,78100 Public Health WIC 17,78100 TOTAL NET REVENUEPagePage pageNumber66 August 4 , 2008 – 10 00 am Continued FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 59157400 Capital Outlay 8,23885 10 59207400 Capital Outlay 43,58805 10 59257400 Capital Outlay 55,73401 10 59457400 Capital Outlay 143,47120 10 59607400 Capital Outlay 27,05362 TOTAL NET EXPENDITURES 278,08573 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 460033990 Appropriation Fund Balance 278,08573 278,08573 TOTAL NET REVENUE Jail FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 52003601 SCAAP Expenditures 11,93960 TOTAL NET EXPENDITURES 11,93960 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 460033990 Fund Balance Appropriated 11,93960 11,93960 TOTAL NET REVENUE Sheriff FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 51007414 Capital Outlay – Sheriff Special 12,65220 10 51007418 Capital Outlay – Drug Seizure 7,71742 TOTAL NET EXPENDITURES 20,36962 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 460033990 Fund Balance Appropriated 20,36962 20,36962 TOTAL NET REVENUE FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 51003350 Supplies – Special - Sheriff 2,49695 10 51007414 Capital Outlay – Sheriff Special 113,64788 10 51007418 Capital Outlay – Drug Seizure 1,074,54030 TOTAL NET EXPENDITURES 1,190,68513 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 460033990 Fund Balance Appropriated 1,190,68513 1,190,68513 TOTAL NET REVENUE 7 Public Hearing – 10 15 am – Installment Contract Financing Advertised July 16 , 2008 – The Smithfield Herald The Chairman accepted a request from Commissioner Jeffrey P Carver to abstain on the following matter , and the Board agreed by consent The Chairman announced that this was the date , place and hour fixed by the Board of Commissioners for a public hearing concerning a proposed plan of financing in an aggregate principal amount of up to 30,000,000 , which plan would involve the entry by the County into one or more installment financingPagePage pageNumber77 August 4 , 2008 – 10 00 am Continued contract s with one or more third parties pursuant to North Carolina General Statutes 160A - 20 , as amended , the proceeds of which would be used to pay all or a portion of the costs of acquiring real property , constructing , renovating and equipping new public school facilities , expansion or renovation of existing public school facilities and various real and personal property improvements related to the foregoing collectively the “ Project ” , and under said one or more installment financing contract s the County would secure the repayment by the County of the moneys advanced pursuant to such one or more installment financing contract s by granting a security interest in and lien on all or a portion of the Project , which Project was described in the notice of public hearing published in The Herald on July 16 , 2008 the “ Notice ” The Board of Commissioners first ratified and approved the designation of the meeting as a public hearing on the proposed plan of financing , the call of the public hearing and publication of the Notice It was then announced that the Board of Commissioners would immediately hear anyone who might wish to be heard on such matter County Director of Finance John Massey explained the installment financing contract would finance a portion of the Cleveland area high school construction project Mr Massey reported the Finance staff had received six proposals on the financing The installment financing contract , if approved , would be with First - Citizens Bank & Trust Company for 19 years with an interest rate of 414 He noted if the Board adopts the resolution after the public hearing , the Local Government Commission would review the request on September 2 , 2008 Commissioner Allen L Mims , Jr inquired as to how the financing would be repaid Mr Massey reported the County has allocated lottery proceeds for the purposes of repaying a portion of the financing However , Mr Massey noted if the lottery proceeds are not received as anticipated , the County could face a tax increase County Manager Rick Hester stated in FY 2008 - 2009 , the County has allocated lottery funds towards the North Johnston gymnasium project with the remainder of lottery funds allocated towards debt service Commissioner Mims stated that the County’s financial model indicates a 25 to 3 cent tax increase may be necessary even with the 31 million lottery proceeds in the model He also asked Mr Hester the details regarding the amount and timing of the existing agreement with the Board of Education for the use of lottery proceeds In response to the question from Commissioner Mims , Mr Hester reported the County has appropriated 2 million in lottery proceeds each year for debt service and if the financing currently under consideration is approved , another 11 million of lottery proceeds would be allocated to debt service Mr Hester stated if the lottery funds are not received as expected , the County would need to evaluate other options to pay debt service Commissioner Mims inquired if the Board of Education was in agreement with the County on the use of lottery funds Mr Hester stated the Board of Education has agreed to limit the use of lottery proceeds for a certain period of time Commissioner Mims stated he believed the lottery proceeds needed to be allocated for the life of the financing repayment schedule Commissioner Tony Braswell stated he would rather use lottery proceeds to repay debt service versus having to implement a tax increase Commissioner Braswell cautioned that the Board may have to look at other options for repayment , if the lottery proceeds are not received as anticipated Commissioner Mims expressed his concerns with going ahead with the project , indicating the County’s growth has slowed down somewhat and restated the County’s financial model indicates a tax increase may be necessary even with the 31 million lottery proceeds in the model Commissioner Mims asked if it would be more appropriate to wait on the Cleveland area high school project until the County held another bond referendum to allow the citizens an opportunity to vote on the project Commissioner Wade M Stewart asked representatives from Johnston County Schools to come forward and speak to the request PagePage pageNumber88 August 4 , 2008 – 10 00 am Continued Johnston County Schools Superintendent , Dr Anthony Parker , stated three high schools in the County are currently over capacity and the two new high schools are needed Dr Parker noted the Board of Education , at its last meeting , adopted a resolution agreeing that 3 million per year of lottery proceeds would be applied to debt service for the next five years Dr Parker confirmed the commitment by the Board of Education that lottery funds would be used to either service debt or to address construction and renovation needs for schools Dr Parker stated the Board of Education acknowledges that the County has other financial obligations and because of that , Johnston County Schools will be reducing the next bond referendum request by 30 million to offset the additional debt currently under consideration In response to questions from Commissioner Mims , Dr Parker stated Johnston County Schools will be maximizing their current space which may require some redistricting as well as mobile units Dr Parker also reported projected cost estimates for future construction projects will need to be revisited on the 2014 facilities plan Commissioner Braswell questioned why the Board of Education capped its resolution at 3 million in lottery proceeds if the County’s financial model called for 31 million in lottery proceeds to be allocated towards debt service Dr Parker stated the 3 million estimate can be adjusted based on an agreement between the Board of Education and the Board of Commissioners He further stated he believed the Board of Education would be willing to work collaboratively with the Board of Commissioners on the use of lottery proceeds ; however , he confirmed that the funds would be used towards construction , whether it is to offset debt service on construction or additional construction renovation needs Commissioner Mims reminded everyone that the debt service on the 30 million financing would be for a period of 19 years Commissioner Jeffrey P Carver stressed the importance of ensuring that the lottery proceeds match the amount of the debt service payments for the life of the debt repayment At the inquiry of Commissioner Mims , Mr Hester confirmed that the 2 million for the two emergency elementary schools is included in the 31 million in anticipated lottery proceeds for debt service Dr Parker reported the 2 million allocation was based on a five year agreement and the Board of Education has agreed to an additional five year agreement for 3 million in lottery proceeds to be applied towards debt service Dr Parker assured the Commissioners that there will be ongoing resolutions regarding lottery proceeds Commissioner Mims reiterated his concerns that the financial model indicates the possibility of a 25 or 3 cent tax increase along with the 31 million in lottery proceeds and he would prefer to allocate all of the lottery proceeds towards debt service for the entire repayment schedule versus having to burden the citizens with a potential tax increase Dr Parker stated the Board of Commissioners would have to take the matter up with the Board of Education ; however , he stated he believes the commitment is present by the Board of Education regarding the use of lottery proceeds being used towards debt service Commissioner DeVan Barbour asked if the Board of Commissioners could adopt the resolution approving the 30 million financing contingent upon the Board of Education agreeing to the additional 11 million in lottery proceeds , above the originally agreed upon 2 million , to be applied to the debt service for the duration of the 30 million financing contract , which is 19 years Commissioner Braswell stated he wanted to ensure that when the Board of Commissioners has to face the citizens , that it has done everything possible to avoid a tax rate increase Dr Parker acknowledged that the lottery proceeds are required to be used towards debt service or school construction He indicated the commitment on how the lottery proceeds are to be used is there and he believed the Board of Education would be willing to discuss the issue further with the Board of Commissioners Dr Parker stressed that the real urgency is the need to accept the bids for the Cleveland high school construction so the major work can begin PagePage pageNumber99 August 4 , 2008 – 10 00 am Continued Commissioner Stewart noted his concerns over the use of lottery proceeds and the agreements between the two Boards and stated perhaps the issue should be tabled another month Commissioner Mims noted that an action regarding the resolution needed to be taken today and if adopted , a plan on how to repay the debt needed to be established Dr Parker shared his appreciation of the Board’s consideration on this matter and reminded the Board that subject to the Local Government Commission’s approval , the Board of Education is requesting to award the construction bids for the Cleveland area high school project Commissioner Carver reminded everyone that the County has shown its commitment to building schools by working to find additional financing to complete the construction of the two new high schools Mr Hester informed the Board that staff bases their debt analysis on a 5 interest rate and that on the recent bond sales of 303 million , along with the current financing under consideration , the interest rates have come in at 403 and 414 , respectively Butler Hall , Board of Education Member , expressed his gratitude to the Board for its support and efforts in finding ways to finance the needed school construction Mr Hall stated that the Board of Education had used various figures in the models in preparation of its resolution Mr Hall noted that it was his opinion that the resolution adopted by the Board of Education for 3 million was meant to be a statement by the Board of Education of the willingness to work with the Board of Commissioners to repay any funds necessary to build the high schools Mr Hall further noted the desperate need for the additional high schools In response to a question from Commissioner Braswell , Mr Hall stated that speaking for himself he would have no problem with the Board of Education revising the resolution to reflect 31 million of lottery proceeds to be designated for debt service Commissioner Stewart stated he would have preferred the Board of Education to have adopted a resolution that designated any future lottery funds above the 2 million already designated , to be used for debt service Mr Hall acknowledged the concerns of Commissioner Stewart and reiterated that the resolution was an action by the Board of Education to express its desire to do whatever necessary to make the project work regardless of the amount Mr Hall recognized that the actual figure is important , however not to the extent to jeopardize the agreement of repayment and cooperation between the two Boards Mr Hall noted that in retrospect , 31 million may have been the better figure for the Board of Education to use in their resolution No one else appeared , either in person or by attorney , to be heard on such matter or the advisability of the plan of financing and the Clerk to the Board of Commissioners announced that no written statement relating to said matters had been received by the Clerk or the Director of Finance The Chairman closed the public hearing 8 Resolution Approving Installment Financing Agreement RESOLUTION APPROVING INSTALLMENT CONTRACT FINANCING FOR PUBLIC SCHOOL PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT UP TO 30,000,000 AND AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS IN CONNECTION THEREWITH , AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS WHEREAS , the Board of Commissioners desires to approve a proposed plan of financing in an aggregate principal amount of up to 30,000,000 , which plan would involve the entry by the County into an installment financing contract with First - Citizens Bank & Trust Company the “ Bank ” pursuant to North Carolina General Statutes 160A - 20 , as amended , the proceeds of which would be used to pay all or a portion of the costs of acquiring real property , constructing , renovating and equipping new public school facilities , expansion or renovation of existing public school facilities and various real and personal property improvements related to the foregoing collectively the “ Project ” , and under said installment financing contract the County would secure the repayment by the County of the moneys advanced pursuant to such contract by granting a security interest in and lien on all or a portion of the Project ;Page010 August 4 , 2008 – 10 00 am Continued WHEREAS , there have been submitted to this meeting draft forms of the following documents the “ Financing Documents ” with respect to the financing for the Project 1 an Installment Financing Contract , proposed to be dated on or about September 1 , 2008 the “ Contract ” , between the County and the Bank as counterparty , pursuant to which the Bank will advance moneys to the County for the costs of the Project and the County agrees to make periodic installment payments the “ Installment Payments ” to repay the moneys so advanced , with interest ; 2 a Deed of Trust the “ Deed of Trust ” , proposed to be dated on or about September 1 , 2008 , among the County as Grantor , the Bank as Beneficiary and the trustee named therein , by which the County would secure its obligations to the Bank under the Contract ; and 3 an Escrow Agreement , proposed to be dated on or about September 1 , 2008 the “ Escrow Agreement ” , between the County and the Bank , as escrow agent , dealing with the custody and investment of the moneys advanced by the Bank to the County pending the expenditure thereof ; WHEREAS , the obligations of the County to make Installment Payments and other payments pursuant to the Contract shall constitute limited obligations of the County payable solely from currently budgeted appropriations of the County and shall not constitute a pledge of the faith and credit of the County within the meaning of any constitutional debt limitation ; WHEREAS , no deficiency judgment may be rendered against the County in any action for breach of a contractual obligation under the Contract , and the taxing power of the County is not and may not be pledged in any way directly or indirectly or contingently to secure any moneys due under the Contract ; and WHEREAS , the Board of Commissioners desires to approve the Financing Documents and to authorize other actions in connection therewith ; NOW , THEREFORE , BE IT RESOLVED by the Board of Commissioners , as follows Section 1 All actions taken by or on behalf of the County to date to effectuate the proposed financing , including the selection of the Bank as the counterparty to the installment financing contract and McGuireWoods LLP , as special counsel , are hereby ratified , approved and authorized pursuant to and in accordance with the transactions contemplated by the Financing Documents Section 2 The acquisition , construction and equipping of the Project , the financing thereof and the granting of security interests therein , all as provided in the Financing Documents referenced in this Resolution , are hereby ratified and approved Section 3 Each of the Contract , the Deed of Trust and the Escrow Agreement is hereby approved in substantially the form submitted to this meeting , and each of the Chairman of the Board of Commissioners or the County Manager is hereby authorized to execute and deliver each of those documents in the name and on behalf of the County , with such changes , insertions or omissions as the persons executing such documents may approve , the execution and delivery thereof to constitute conclusive evidence of such approval The Clerk to the Board of Commissioners is hereby authorized to affix the seal of the County to each of said documents as may be appropriate and to attest to the same Section 4 Each of the Chairman of the Board of Commissioners , the County Manager and the Director of Finance is authorized to approve all details of the financing of the Project , including , without limitation , the amount advanced under the Contract which shall not exceed 30,000,000 , the principal amounts and the interest amounts of the Installment Payments , which interest amounts shall not exceed 414 per annum Execution of the Contract by the Chairman of the Board of Commissioners or the County Manager shall conclusively evidence such approval of all such details of said financing Section 5 The Chairman of the Board of Commissioners , the County Manager , the Director of Finance and the County Attorney are each hereby authorized to take any and all such further action , including approval of modifications to the Financing Documents , and to execute and deliver for and on behalf of the County such other documents and certificates including , without limitation , agreements with securities depositories , financing statements , appropriate tax certificates and agreements and other documents and agreements including repurchase agreements relating to the investment of the proceeds from the execution and delivery of the Contract as they may deem necessary or advisable to carry out the intent of this resolution and to effect the financing pursuant to the Contract and the other Financing Documents The Clerk to the Board of Commissioners is hereby authorized to affix the seal of the County to such documents and certificates as may be appropriate and to attest to the same and to execute and deliver the same as may be needed Section 6 The County covenants that , to the extent permitted by the Constitution and laws of the State of North Carolina , it will do and perform all acts and things to comply with the requirements of the Internal Revenue Code of 1986 , as amended the “ Code ” , in order to assure that the interest component of the Installment Payments paid pursuant to the Contract will not be includable in gross income for purposes of federal income taxation , except to the extent that the County obtains an opinion of special counsel to the effect that noncompliance would not result in the interest component of said Installment Payments being includable in gross income for purposes of federal income taxation Section 7 All lottery proceeds received by the County shall be applied towards public school debt service in order to delay a possible tax increase that is currently showing in the County’s financial model Page111 August 4 , 2008 – 10 00 am Continued Section 8 The Board of Education may accept the bids for the Cleveland area high school construction project subject to Local Government Commission approval of the Installment Financing Contract Section 9 This Resolution shall become effective immediately upon its adoption Motion Commissioner Allen L Mims , Jr moved the Board adopt the foregoing resolution entitled “ RESOLUTION APPROVING INSTALLMENT CONTRACT FINANCING FOR PUBLIC SCHOOL PROJECTS IN AN AGGREGATE PRINCIPAL AMOUNT UP TO 30,000,000 AND AUTHORIZING THE EXECUTION AND DELIVERY OF RELATED DOCUMENTS IN CONNECTION THEREWITH , AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS ” , pending the Local Government Commission’s approval , with the use of all lottery proceeds to be applied towards debt service for the term of the loan in order to delay a possible tax increase that is currently showing in the financial model , and further , if all parties agree , pending Local Government Commission approval , to allow the Board of Education to accept the bids for the Cleveland High School construction project , now made a part of the resolution referenced as Section Nos 7 and 8 Commissioner W Ray Woodall seconded the motion Further Discussion by the Board Commissioner Mims stated his motion called for all lottery proceeds to be applied to debt service due to the financial model indicating the need for 25 - 3 million in additional revenue in order to prevent a tax increase in FY 2009 - 2010 Commissioner Tony Braswell noted that the Board’s position all along included the financial model’s need for 31 million to be applied to debt service Commissioner Mims reiterated that the financial model does indicate the use of 31 million in lottery proceeds along with a possible 25 to 3 cent tax increase and his motion calls for the use of all lottery proceeds to be appropriated in order to possibly delay that tax increase Commissioner DeVan Barbour stated the resolution needed to specify 31 million in lottery proceeds to be applied towards debt service rather than all lottery proceeds Commissioner Barbour noted that anytime a request for the requisition of lottery funds is prepared , it requires both the signatures of the Chairman of the Board of Commissioners and the Chairman of the Board of Education Commissioner Barbour indicated the possibility is present to adjust the amount in the future , if needed Commissioner Wade M Stewart stated he believed the resolution should state all lottery proceeds should be designated rather than 31 million Commissioner Stewart noted that the lottery proceeds are estimates and 2 million is already allocated towards debt service for two elementary schools which leaves a balance of 11 million Commissioner Stewart stated the lottery will have good years and bad years and the County could face shortfalls some years if the proceeds come in less than 31 million Commissioner Stewart stated during the years the County experiences shortfalls , the General Fund may have to offset the debt service and then be reimbursed on the years the County receives lottery proceeds over the anticipated 31 million Commissioner Mims noted the Board of Education is indicating the need for another bond referendum in 2009 and the Board has already seen financial models that say no additional debt service capacity is available until FY 2013 - 2014 Vote The motion carried by the following vote AYES Commissioners Cookie Pope , Wade M Stewart , Allen L Mims , Jr , W Ray Woodall , and Tony Braswell NOES Commissioner DeVan Barbour ABSTAIN Commissioner Jeffrey P Carver The Board took a five minute recess Page212 August 4 , 2008 – 10 00 am Continued 9 Public Hearing – 10 20 am – Town of Wilson’s Mills – ETJ Area Board Appointments Advertised July 16 and 23 , 2008 – The Smithfield Herald and the Wilson’s Mills News Note Public hearing was delayed due to lengthy discussion on previous item The Chairman opened the public hearing and stated the purpose of the hearing is to allow for public comment on the Board of County Commissioners appointing representatives to the Town of Wilson’s Mills Planning Board and Board of Adjustment for their newly established ETJ area Chairman Pope noted the Board had received a resolution from the Town of Wilson’s Mills recommending the following appointments Board of Adjustment Anthony W Southerland – First Term will end 07 01 2009 Gordon R Stevens – First Term will end 07 01 2010 David Stewart – First Term will end 07 01 2011 Diane T Edwards as Alternate – First Term will end 07 01 2011 Planning Board Marvin H Dodd – First Term will end 07 01 2009 Benjamin L Parrish , Jr – First Term will end 07 01 2010 James T Uzzle , Jr – First Term will end 07 01 2011 All remaining terms will be 3 year terms There being no further comments , the Chairman closed the public hearing Upon a motion by Commissioner Wade M Stewart , seconded by Commissioner W Ray Woodall , and carried by unanimous vote , the Board made the appointments listed above , as recommended by the Town of Wilson’s Mills 10 Public Hearing – 10 25 am – Selma Fire Department Request for First Responder Franchise Advertised July 23 and 30 , 2008 – The Smithfield Herald Note Public hearing was delayed due to lengthy discussion on previous item The Chairman opened the public hearing and invited anyone who wished to address the Board on the request from the Selma Fire Department to be franchised as a first responder unit Selma Fire Chief Phil McDaniel asked the Board to approve the request to become a first responder unit Mr McDaniel reported the department would assist Selma EMS and they currently have eight people certified to provide emergency assistance He noted they plan to begin training five additional people within the department Mr McDaniel stated they have received recommendations from the Selma Town Council and the Johnston County EMS Advisory Board Commissioner Wade M Stewart commented on the importance of first responder franchises and stated he appreciated the Selma Fire Department’s willingness to offer the services County Manager Rick Hester reported the department would begin receiving the first responder franchise contribution from the County , and it would be prorated to reflect the effective date There being no further comments , the Chairman closed the public hearing First Vote of Approval Upon a motion by Commissioner Tony Braswell , seconded by Commissioner Wade M Stewart , and carried by unanimous vote , the Board approved the request from the Selma Fire Department to be franchised as a first responder unit NOTE A second vote will be required at the September 2 , 2008 10 00 am meeting 11 Presentation – Open Space and Green Infrastructure in Johnston County Leslie Moorman , Urban Forestry Program Coordinator with the North Carolina Department of Environment and Natural Resources , reviewed a PowerPoint presentation regarding a green infrastructurePage313 August 4 , 2008 – 10 00 am Continued initiative in Johnston County Ms Moorman reported green infrastructure is an interconnected network of green space that conserves the natural ecosystem values and functions The overall goal of green infrastructure is the management of natural systems as an integral part of development and planning Ms Moorman noted green infrastructure systems can contain wilderness areas , river corridors , managed landscapes such as parks and nature reserves , and working lands such as farms and forests She stated an important difference in between the term “ open space ” and the concept of “ green infrastructure ” is the need to constantly maintain and interconnect the natural systems to ensure they are functioning to the best of their ability Ms Moorman also noted another important part of green infrastructure is working with private landowners to target working lands such as farms and forest lands Ms Moorman listed the following components of green infrastructure • Planted parking lots and detention ponds to absorb and filter stormwater runoff to reduce the number of pollutants reaching streams • Protected waterways to prevent erosion and increase water quality • Reforested slopes to prevent and control flooding events to avoid sediment reaching streams • Protected watersheds to decrease the amount of funds being spent towards water treatment facilities • Working forests that are an integral part of the economy Ms Moorman stated green infrastructure can benefit the County primarily because it is a more cost effective mechanism of using natural systems to offset the need for man - made infrastructure Ms Moorman also indicated green infrastructure can enhance the quality of life for citizens in the County by providing them with a continued resource of natural systems and agricultural lands Ms Moorman stated she applied for and was awarded a US Forest Service Grant in the amount of 25,000 and is targeting Johnston County for a pilot project due to the County’s rapid growth and development issues Ms Moorman noted Johnston County still has a large agricultural component and the County has an opportunity to plan and implement on how to manage the natural resources in order to keep the quality of life for the citizens Ms Moorman reported she is working with the Soil and Water Conservation District office , the Cooperative Extension office , North Carolina State University , the North Carolina Wildlife Resources Commission , the North Carolina Forest Service and the Towns of Clayton and Selma on the project She indicated the initiative is a two year project that will consist of a series of workshops to allow the citizens of the County to be involved in the project She stated a canopy analysis has already begun to evaluate the cost benefits of urban street trees in the County Ms Moorman noted one of the important components of the project is to develop a survey of landowners to help identify what citizens would like to see for the natural areas of Johnston County Ms Moorman stated the final product would be a technical guide that will identify different strategies on the management of natural areas Ms Moorman requested the Board consider supporting the project by allowing County staff to become more actively involved with the project Ms Moorman stated she would come back to the Board from time to time with updates over the two year period of the project Commissioner W Ray Woodall noted beavers are becoming more of a problem by destroying streams and surrounding properties and asked if the project would provide some ideas on how to control the damage from beavers Ms Moorman reported the project would allow citizens the opportunity to voice their concerns with issues such as the property destruction caused by wildlife and although she is unsure as to how those concerns would be addressed , they would be factored into the project At the inquiry of Commissioner Tony Braswell , Ms Moorman confirmed she is only asking for the Board to allow staff to assist in the project and is not requesting direct financial support Commissioner Jeffrey P Carver asked how much staff time would be involved with the program County Manager Rick Hester stated he along with Planning Director Berry Gray have looked into the program and recommended the Board to take the request under advisement Mr Hester reported the program may tie into the Comprehensive Land Use Plan but cautioned that the land use plan is moving on a faster track than Ms Moorman’s initiative Mr Hester stated staff could further look into the project and report back to the Board at a later date Commissioner Allen L Mims , Jr asked Ms Moorman to specifically outline what the project includes Page414 August 4 , 2008 – 10 00 am Continued Ms Moorman stated the initiative would look at past environmental studies and identify critical areas of the County to preserve as natural resources Ms Moorman also indicated the concerns by the citizens regarding water quality , air quality and other environmental concerns would be incorporated into an assessment to be used by the Johnston County Planning Department and the Johnston County GIS Department when developing strategies to manage natural areas as the County continues to grow In response to a question from Commissioner Mims , Ms Moorman confirmed that she would be in contact with local developers in an effort to help them keep their developments green Ms Moorman stated she has already been in contact with the Johnston County Homebuilders Association regarding preserving trees in future developments Mr Hester asked if the initiative would require amendments to the County’s ordinance Ms Moorman stated the project would be a voluntary action and does not have to be included in the County’s ordinance The Board unanimously agreed to table the request to allow staff more time to review the details 12 Public Utilities – O’Neal’s Water District Phases 2 & 3 Construction Contract Award of Bid Upon a motion by Commissioner DeVan Barbour , 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 Board reviewed the following bids , which were received on July 17 , 2008 for the water distribution system improvements to serve the final two phases of the district Phases 2 and 3 BIDDER BASE BID TA Loving Co , Inc 5,333,78500 Goldsboro , NC Sanford Contractors , Inc 5,334,11717 Sanford , NC Key Constructors , Inc 6,515,76700 Clarksville , VA Herring & Rivenbark , Inc 5,450,78900 Kinston , NC HG Reynolds Co , Inc 6,897,98100 Henderson , NC Billings & Garrett , Inc 7,521,32274 Raleigh , NC Corrected Tim Broome , PE , Director of Utilities & Engineering , stated staff recommends award of the bid to low bidder TA Loving Company of Goldsboro , North Carolina in the amount of 5,333,78500 , subject to USDA - RD approval Mr Broome reported the project did come in within the proposed budget and he recommended the Board adopt the proposed project budget Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Wade M Stewart , and carried by unanimous vote , the Board took the following actions • Awarded the bid to low bidder TA Loving Company of Goldsboro , North Carolina in the amount of 5,333,785 , subject to USDA - RD approval , for Phases 2 and 3 of the O’Neal’s Water District water distribution system improvements • Adopted the following capital project budget ordinance BE IT RESOLVED by the Board of Commissioners of the County of Johnston , North Carolina the “ County ” , acting as the Governing Body of the O’Neals Water District the “ Board ” , that pursuant to Section 132 of Chapter 159 of the General Statutes of North Carolina , the following capital project ordinance is hereby adopted Page515 August 4 , 2008 – 10 00 am Continued Section 1 The project authorized is the design and construction of water distribution system improvements to serve Phases II and III of the O’Neals Water District the “ Project ” , to be financed through USDA - Rural Development loan and grant funds and water subscription fees Section 2 The officers of the County are hereby directed to proceed with the capital project within the terms of the USDA loan and grant agreements and the budget contained herein Section 3 The following amounts are appropriated for the project Construction 5,333,785 Construction Contingency 369,015 Equipment 110,000 Engineering Services 304,880 Technical Services 138,400 Legal , Administration & Easement Costs 16,353 Water Supply Capacity Fee 232,767 Capitalized Interest 276,800 Total 6,782,000 Section 4 The following revenues are anticipated to be available to complete this project USDA Loan – Phase II 2,119,050 USDA Grant – Phase II 1,000,000 USDA Loan – Phase III 2,556,750 USDA Grant – Phase III 1,000,000 Water Subscription Fees 106,200 Total 6,782,000 Section 5 The Director of Finance is hereby directed to maintain within the Capital Project Fund sufficient specific detailed accounting records to satisfy the requirements of USDA and the terms of the USDA loans and grants shall be met Reimbursement requests should be made to USDA in an orderly and timely manner Section 7 The Director of Finance is hereby directed to report annually on the financial status of each project element in Section 3 and the total revenue received Section 8 Copies of this capital project ordinance shall be furnished to the Clerk to the Board , the Budget Officer and the Director of Finance for direction in carrying out this project th Adopted this 4 day of August 2008 Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner W Ray Woodall , and carried by unanimous vote , the Board adjourned as the O’Neal’s Water District Board , and regular session was resumed 13 Public Utilities – Booster Pump Station Construction Tim Broome , PE , Director of Utilities & Engineering , recalled that the Board of Commissioners appropriated 1,050,000 in August 2007 for the construction of five booster pump stations Mr Broome reported that four of the stations have been constructed and are operational The design and construction of the fifth station has been delayed , pending Harnett County proceeding with a water plant expansion , as the fifth station will be dedicated to pumping from the Harnett County system into the Johnston County system Mr Broome explained that in order to address the expected water demand in the Cleveland area and to improve supply to the northeast side of Clayton , the County constructed two small booster pump installations and a key looping main segment between Jack Road and Lee Road The remaining balance in the booster pump station capital budget is approximately 175,000 The originally estimated cost for the fifth booster pump station was set at 250,000 ; however , based on recent changes in the construction market , staff believes a more realistic estimate is 275,000 Mr Broome stated staff respectfully requests the Board of Commissioners to authorize the appropriation of 100,000 from Fund 69 – Reserve for transfer to Capital Fund 208594 – Booster Pump Stations Mr Broome noted the reserve was generated by the water districts ’ capacity purchases last year Commissioner Wade M Stewart moved the Board authorize the appropriation of 100,000 from Fund 69 – Reserve for transfer to Capital Fund 208594 – Booster Pump Stations Commissioner W Ray Woodall seconded the motion which carried by unanimous vote FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 69 69009023 Transfer to Other Funds 100,000 TOTAL NET EXPENDITURES 100,000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE Page616 August 4 , 2008 – 10 00 am Continued 69 690033990 Fund Balance Appropriated 100,000 100,000 TOTAL NET REVENUE FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 20 85941800 Construction of Project 100,000 TOTAL NET EXPENDITURES 100,000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 20 859437925 Transfer from Other Funds 100,000 100,000 TOTAL NET REVENUE 14 Public Utilities – Harnett County Bulk Water Purchase Tim Broome , PE , Director of Utilities & Engineering , reported Harnett County has received bids for their water treatment plant expansion , and the County’s 20 mgd capacity allocation cost is now set in the amount of 3,760,700 Mr Broome noted the amount is consistent with the terms of the interlocal agreement Mr Broome explained that staff recommends the County fund the purchase with a 3,500,000 low interest loan from USDA – Rural Development and 260,700 to be appropriated from Fund 69 – Reserves Mr Broome further reported , under the County’s interlocal agreement with the Town of Fuquay - Varina , the County is obligated to supply up to 15 mgd in bulk water to the Town He stated growth in the western portion of the County’s water system has stressed the transmission capacity and makes delivery of the full 15 mgd allocation very challenging during periods of peak demand as well as near - term transmission system improvements involving booster pump and pipeline additions will be necessary Mr Broome informed the Board that Fuquay - Varina also obtains bulk water supply from Harnett County and the City of Raleigh Staff has proposed to Harnett County and the Town of Fuquay - Varina for Johnston County to purchase an additional 05 mgd allocation from Harnett County , transfer the allocation to the Town of Fuquay - Varina , and amend the County’s agreement with Fuquay - Varina to reduce the contractual allocation to 10 mgd Further , staff proposes the County to hold Fuquay - Varina financially harmless for any difference in the County’s bulk charges and Harnett County’s bulk charges for the 05 mgd allocation in the event Harnett County’s commodity cost is higher than Johnston County The purchase price for the additional 05 mgd from Harnett County is 940,17500 Mr Broome indicated that redirecting the Fuquay - Varina allocation would reduce the scope and cost of transmission improvements and the western area transmission pipeline improvements could be deferred for approximately three to five years Mr Broome stated staff respectfully requests the Board’s approval of an amendment to the Fuquay - Varina bulk water sales agreement , an amendment to the Harnett County bulk water purchase agreement subject to the Town of Fuquay - Varina’s approval of their amendment with the County , and transfer of 1,200,875 from Fund 69 – Reserve to supplement the 3,500,000 USDA - Rural Development loan for the purchase of the 25 mgd water supply capacity allocation Mr Broome asked the Board to approve the amendments with Fuquay - Varina and Harnett County in substantial form and authorize the County Manager and the County Attorney to finalize the amendments , once the Town of Fuquay - Varina accepts the proposal by the County Commissioner Wade M Stewart noted Mr Broome had indicated if the request is approved , the County could defer the western area transmission pipeline improvements for approximately three to five years and asked how long the agreements with Fuquay - Varina and Harnett County would be in effect Mr Broome reported the agreements with Harnett County and Fuquay - Varina would remain in effect forever or until otherwise amended Commissioner Allen L Mims , Jr moved the Board approve the two amendments with the Town of Fuquay - Varina and Harnett County in substantial form and authorize the County Manager and County Attorney to finalize the amendments ; and further to authorize the transfer of 1,200,875 from Fund 69 – Reserve to supplement the 3,500,000 USDA - Rural Development loan for the purchase of the 25 mgd water supply capacity allocation by the following capital project ordinance , pending the Town of Fuquay - Varina’s acceptancePage717 August 4 , 2008 – 10 00 am Continued of the proposal by the County Commissioner W Ray Woodall seconded the motion , which carried by unanimous vote BE IT RESOLVED by the Board of Commissioners the “ Board ” of the County of Johnston , North Carolina the “ County ” , that pursuant to Section 132 of Chapter 159 of the General Statutes of North Carolina , the following capital project ordinance is hereby adopted Section 1 The project authorized is 1 the purchase of 25 million gallons per day “ MGD ” of capacity allocation in the upgraded Harnett County Regional Water Treatment Facility , related Harnett County pumping facilities , and related Harnett County water transmission facilities and 2 the transfer of 5 MGD of such capacity allocation to the Town of Fuquay Varina , thereby reducing the County’s current contractual allocation of its own water treatment and transmission facilities to the Town to 1 MGD together the “ Project ” The Project will be financed through a loan from USDA - Rural Development “ USDA ” and County funds