March 5, 2007 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 97 Meeting of the Johnston County Board of Commissioners March 5 , 2007 10 00 am The Johnston County Board of Commissioners met in regular session Monday , March 5 , 2007 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 , April N Byrd , Clerk to the Board , John R Massey , Finance Officer , J Mark Payne , County Attorney , and Deva C Holt , Deputy Clerk Chairman Pope called the meeting to order Commissioner W Ray Woodall opened the meeting with a prayer Commissioner Jeffrey P Carver led those in attendance in the pledge of allegiance to the American flag 1 Minutes Approved Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Jeffrey P Carver and carried by unanimous vote , the Board approved the minutes for the February 5 , 2007 10 00 am , 5 30 pm and 6 00 pm board meetings as presented 2 Public Comments A Board of Education - Request to Purchase Land for Princeton Elementary School On behalf of the Board of Education , Dr Anthony Parker , Superintendent of Johnston County Schools JCS , requested the Commissioners approve the purchase price of 10,000 per acre for a 30 acre tract of land on Holt’s Pond Road in Princeton for a new elementary school He noted two appraisals have been performed , one by the landowner at 10,000 per acre , and a second by JCS at 7,166 per acre Commissioner Allen L Mims , Jr asked if the Board of Education will negotiate with the landowner for a purchase price of less than 10,000 per acre Dr Parker commented the Board of Education has entered into negotiations with the landowner at 10,000 per acre , contingent upon the Board of Commissioners approving the purchase price He stated the cost of the property is within the limits that the Board of Education set , and they feel the price is reasonable compared to similar properties purchased in the past for school construction projects Commissioner Tony Braswell pointed out JCS is partnering with the Town of Princeton for sewer services He asked if JCS has an agreement with the Town for additional sewer taps for the surrounding properties Ann Williams , Associate Superintendent , responded JCS is currently working with the Town in regards to sewer service to the school site Commissioner Braswell added that , in his opinion , this should be worked out so that surrounding property owners can benefit from the sewer line Commissioner Wade M Stewart asked if there would be enough acreage on the site to provide recreational space for the community Dr Parker responded the availability of recreational space would depend on whether retention ponds are needed on the site , and that is yet to be determined He reiterated the Board of Education’s request for the Commissioners to approve the purchase price , and further asked the Commissioners to transfer 300,000 from the 2005 Bond Referendum July 2006 Bond Sale to cover the cost of the land Dr Parker explained the original allocation in the bond for the Corinth High School property was 15 million , however , the land is expected to cost 11 million Commissioner W Ray Woodall moved the Board approve the purchase price of 10,000 per acre for a 30 acre tract of land on Holt’s Pond Road in Princeton for a new elementary school , and the following budget amendment to transfer 300,000 from the July 2006 Bond Sale to cover the cost of the land Commissioner Wade M Stewart seconded the motion , which carried by unanimous vote Page98 March 5 , 2007 – 10 00 am Continued FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 16 63191053 Princeton Elementary 300,00000 16 63191052 Corinth High School 300,00000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - B Complaint Regarding Solid Waste Decal Policy Mark Kidd , 130 Leachburg Drive , Garner , addressed the Board concerning the County’s solid waste decal program He expressed concern over the way the solid waste ordinance is written in regards to decals being for a “ household ” but only being approved for one vehicle per “ household ” Mr Kidd asked the Board to consider his concerns , and take a look at the ordinance 3 Call for Public Hearing - Town of Pine Level - Request to Extend ETJ Commissioner Tony Braswell moved the Board schedule a public hearing for the April 2 , 2007 6 00 pm meeting , following the Rezoning and Special Use cases , to consider a request from the Town of Pine Level to extend their ETJ Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote 4 Call for Public Hearing - Town of Benson - Request to Extend ETJ Commissioner DeVan Barbour moved the Board schedule a public hearing for the April 2 , 2007 6 00 pm meeting , following the Rezoning and Special Use cases , to consider a request from the Town of Benson to extend their ETJ Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote Commissioner Allen L Mims , Jr noted that in response to comments that he has heard regarding the hearings , the County is not forcing the towns to make ETJ requests , rather the towns are asking the County for the authority to either establish an ETJ , in the case of Wilson’s Mills , or extend their existing ETJ , in the cases of the other towns that have presented requests 5 Discussion on Wildlife Issues - Fox Seasons & Coyote Management Program Vernon Thompson , 2145 Strickland’s Crossroads Rd , Four Oaks , asked the Board to support the following local legislation in regards to fox seasons in Johnston County “ Notwithstanding any other provision of law , there is an open season from December 1 through February 20 each year for taking foxes with weapons and by trapping , with no tagging requirements prior to or after sale ” Colleen Olfenbuttel , biologist with the NC Wildlife Resources Commission , stated the Commission does not recommend extending the fox season beyond late February due to concerns about breeding season and the survival of young pups Further , she noted it is only permissible to capture coyotes during the statewide trapper season and a county’s local legislation season Currently , general trapping laws permit this through the st end of beaver season , which is March 31 Ms Olfenbuttel stated the Wildlife Resources Commission views trapping and hunting as helping to manage the coyote population because it helps to instill the fear of people in the coyotes Several other representatives of the Wildlife Resources Commission were in attendance at the meeting Tony Davis , Vice President of the NC Trapping Association , addressed the Board , and expressed support for the local legislation Following discussion , Commissioner Wade M Stewart moved the Board request local legislation as outlined by Mr Thompson in regards to fox season in Johnston County , and also support statewide legislation that would standardize the season Commissioner DeVan Barbour seconded the motion , which carried by unanimous vote Page99 March 5 , 2007 – 10 00 am Continued 6 Criminal Justice Partnership – Request for State Grant Renewal FY 07 - 08 Commissioner Tony Braswell moved the Board approve the renewal application for FY 07 - 08 for grant monies , in the amount of 116,688 , from the NC Department of Correction for the Johnston County Criminal Justice Partnership Program Commissioner DeVan Barbour seconded the motion , which carried by unanimous vote 7 Sheriff’s Office - Request to Surplus Vehicle Commissioner W Ray Woodall moved the Board declare surplus a 2004 Ford Crown Victoria , VIN 2FAFP71W44X106224 , which was involved in an accident and considered a total loss by the insurance carrier Commissioner DeVan Barbour seconded the motion , which carried by unanimous vote 8 Emergency Services - Request Approval of Revised Fee for EMS Response Emergency Services Director Dewayne West stated the mileage rate through Medicare and Medicaid is based on zip code , and areas are classified as either “ Urban ” or “ Rural ” Effective January 1 , 2007 , zip codes have been modified to change the County’s classification from Urban to Rural As a result of this technical correction , EMS Providers are eligible for an additional thirteen cents per loaded mile , which would change the eligible mileage fee from 925 per mile to 938 per mile The EMS Advisory Committee met on February th 13 , and recommended the Commissioners approve the change Commissioner W Ray Woodall moved the Board approve the revised mileage fee of 938 per loaded mile for EMS response Commissioner Wade M Stewart seconded the motion , which carried by unanimous vote 9 Call for Public Hearing - Princeton Fire Dept - Request for Franchise Emergency Services Director Dewayne West stated the Princeton Fire Department has requested the Board schedule a public hearing for April to consider an application for a franchise to provide vehicle extrication services Commissioner Wade M Stewart moved the Board schedule a public hearing for the April 2 , 2007 10 00 am meeting to consider an application by the Princeton Fire Department for a franchise to provide vehicle extrication services Commissioner Tony Braswell seconded the motion , which carried by unanimous vote 10 Emergency Services - Contract with EMS Providers th Emergency Services Director Dewayne West stated at the February 13 EMS Advisory Committee meeting , the proposed contract for EMS Providers was presented and discussed at length The Committee voted to present the contract to the Commissioners for their consideration Further , Mr West noted the proposed contract has been reviewed by the County’s Legal , Finance , and Emergency Services staff The contract will make available more oversight from the County , and require more accountability from the EMS Providers County Manager Rick Hester pointed out the proposed contract requires the Board of Commissioners to appoint a Board of Directors for each EMS Provider He stated the Commissioners could choose to delegate this responsibility to staff Commissioner W Ray Woodall moved the Board approve the following contract between the County and EMS Providers , and delegate to Emergency Services staff the authority to select Boards of Directors for each EMS Provider Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote Agreement for Provision of Emergency Medical Service st THIS AGREEMENT made and entered into this 1 day of January , 2007 , by and between JOHNSTON COUNTY , a body politic and corporate of the State of North Carolina hereinafter referred to as the “ County ” , and _________ EMS , a corporation of North Carolina , hereinafter referred to as “ Agency ” WITNESSETH WHEREAS , the Agency desires to provide emergency medical services at the Basic Level , and up to and including an Advanced Life Support ALS level of service within the legal boundaries of Johnston County ; and WHEREAS , the County desires to provide to its inhabitants a superior standard of emergency medical service at the Paramedic Level ; and WHEREAS , the Agency has previously applied to the County for a nonexclusive ambulance service franchise ; andPage100 March 5 , 2007 – 10 00 am Continued th WHEREAS , the County granted such franchise to Agency on the 6 day of January , 1993 ; NOW , THEREFORE , for and inconsideration of the terms , conditions and agreement hereinafter set forth , the County and the Agency do hereby mutually covenant and agree as follows I General Provisions Section 1 Term The term of the agreement shall be one 1 year and shall be automatically renewed from year to year unless terminated as provided in Section 12 hereof Section 2 Geographical Area The geographical area for which the EMS agency will provide ambulance service is the agencies assigned district , as determined by the County and as shown in Exhibit A It is acknowledged by both parties that the County may change the agencies assigned district in accordance with the County Ambulance Franchise Ordinance Section 3 Administrative The Agency , during the period this agreement is in effect , shall remain incorporated and do business as a private non - profit corporation under the provisions of the North Carolina Non - Profit Corporation Act A true copy of the Articles of Incorporation , existing By - Laws , and any changes made from time - to - time to either will be filed with the County The EMS Agency shall adopt By - laws , which meet all minimum legal requirements of said Act The Agency By - Laws shall vest in a Board of Directors the majority of which shall be non - members of the EMS Agency The Board of Directors shall serve as the controlling authority in managing the affairs of the corporation to the extent permitted by said Act The EMS Agency shall submit a list of board members with contact information and board affiliation to the County annually The Board of Commissioners will verify that the board’s membership meets the requirements of the contract The EMS Agency Chief shall serve in an ex - officio capacity to the Board of Directors In the event the Agency cannot meet these requirements , it is agreed that the County Board of Commissioners shall appoint a Board of Directors for this purpose The Agency agrees to submit a copy of the cash balance sheet , income statement , general ledger and quarterly time sheets for all employees of the department to their board members and to the County Finance Department no later than th the 15 of the month following the end of each quarter April , July , October and January In addition , the Board of Directors shall meet within thirty 30 days following the end of each quarter and a copy of the minutes of the board meetings signed by the Board Chair is to be forwarded to the County immediately thereafter II Standards and Procedures Section 1 Coverage and Mutual Aid The Agency agrees to furnish first duty response for emergency Code 3 incidents at the EMT - Paramedic level twenty - four 24 hours per day , seven 7 days per week First duty means an initial response service comprised of a complete complement of personnel , pursuant to the franchised level of service identified , and equipment for medical care and transportation At a minimum , first duty service shall include a state certified Medical Responder and an emergency medical technician – Paramedic If the initial unit is dispatched to a non - emergency Code 1 incident , then an EMT - Intermediate may respond in lieu of the Paramedic , provided that a Paramedic is available to respond immediately , if nd needed In addition , there must be an additional driver immediately available for 2 duty calls Upon request , the Agency agrees to furnish mutual aid to other county EMS Agencies in accordance with the County’s EMS Mutual Aid agreement The Agency agrees to operate and maintain its system in accordance with all applicable federal , state and local laws , ordinances and regulations The Agency agrees to maintain a three 3 minute “ chute time ” on ninety 90 percent of first duty and second duty calls “ Chute time ” is the time from dispatch to departing the building In the event that a second duty crew is not available , mutual aid from a neighboring Agency responding within the allotted time frame satisfies this requirement The Agency agrees to assist in the removal of deceased persons if needed in accordance with the Standard Operating Guideline for Deceased Person Transport Section 2 Training and Personnel The Agency agrees to establish , operate and maintain its department in accordance with the following training standards a Attendants shall , at a minimum , be certified by the State as an Emergency Medical Technician Ambulance drivers shall , at a minimum , be certified as Medical Responders and must have completed an approved emergency vehicle driving course All certified members shall hold a valid North Carolina driver’s license b All technicians and medical responders shall participate in continuing education as required by the state and county approved educational program c Training Officers shall be designated by the agency for the purpose of maintaining continuing education training records and certifications To be a Training Officer , you shall be required to complete the Training Officers Course through Johnston Community College and should be certified or eligible for certification as a Level 1 Instructor thru State OEMS In addition , they must possess current credentials as required to function in Johnston County d Training Officers shall complete an approved Instructor Methodology Course , Training Officer Course , shall interview and be approved as a preceptor in Johnston County by the Medical Director e Training Officers should maintain knowledge of the Johnston County Continuing Education Plan f Must attend annual Level I and II Instructor updates thru State OEMS as appropriate g Training Officers shall submit continuing education records for their department every six 6 months , verifying training hours and certifications h All technicians and medical responders will be subject to oversight by the County’s Medical Director PagePage pageNumber5101 March 5 , 2007 – 10 00 am Continued i The Agency agrees to insure that technicians or medical responders failing to meet medical performance standards , as determined either by the Agency , state , County or Medical Director shall cease to render patient care or ambulance services j The Agency agrees that it’s Chief shall hold EMS certification k The Agency agrees that its leaders and treasurer will attend periodic training on management and budgeting as required by the County This training shall be provided by the County l The Agency agrees to audit all call reports on a monthly basis utilizing audit sheets approved by the Medical th Director and to submit a copy of the call report and audit sheets to the County no later than the 15 day of the following month m The Agency agrees to handle personnel issues including , but not limited to work schedules , patient care issues , certifications and continuing education records n The Agency agrees to insure that employees work no more than seventy - two 72 hours within a given work week and have an uninterrupted rest period of ten 10 hours prior to reporting for their next EMS shift This includes rest periods between regular and part time jobs with other Agencies This requirement may be waived during times of disasters or other emergencies o The Agency agrees to provide patient care within the protocols and standard operating guidelines approved by the County Additionally , the Agency agrees to provide documentation as requested by the Medical Director or Quality Management Committee Chart Audit , and to assist the Medical Director by appointing personnel to serve on medical committees as requested p The Agency agrees to participate in quarterly Peer Review Committee meetings q The Agency agrees to provide the County with an updated roster every six months with , but not limited to , name , certification level , expiration date of all required certifications , date of birth , last 4 digits of social security number and phone number r The Agency agrees that the Medical Director , or his designee , shall be permitted to ride on an Agency ambulance at any time , providing a waiver of liability is signed by the designee rider and or a standing order , signed by the Medical Director is on file stating the same s The County agrees to assist the Agency with audit and review of patient reports by providing a Medical Director , patient care protocols and standard operating guidelines t The Agency agrees that all technicians and administrative staff shall be trained in data collection whether rd PREMIS is utilized or a 3 party vendor which must be PREMIS compliant u The Agency agrees that all response employees and leaders shall be trained in the National Incident Management System NIMS to their appropriate level , and shall maintain NIMS training as required Section 3 Equipment 1 The Agency agrees that a A vehicle maintenance officer shall be designated to insure that maintenance records are maintained on all vehicles and that vehicles and equipment meet the requirements of the State and County while in service b All equipment shall be inspected for compliance in accordance with County and State requirements c All equipment vehicles , monitors , etc provided by the County to the Agency will be returned to the County within sixty 60 days if the Agency ceases to function as an EMS unit , or in the event this agreement is cancelled by either party d In the event the Agency ceases to function as an entity , all equipment owned by the Agency will be disposed of in accordance with Internal Revenue Service rules and regulations If the Agency has not made other arrangements for the disposal of Agency owned equipment prior to dissolution , equipment will be transferred to the County for distribution to other like entities within the County 2 The County agrees to a Provide annual funding in an amount set by the Board of Commissioners as part of their annual budgeting process This funding will be dispersed on a monthly basis provided that the Agency meets the terms of the agreement It is further stipulated that this funding is to be utilized to offset cost incurred for personnel and benefits and for the provision of Paramedic level emergency medical services in the County b Should the Agency not meet the terms of the agreement , a notice will be provided to them indicating any deficiencies Deficiencies resulting in diminished patient care or response capability are to be corrected within 12 - 36 hours , unless otherwise agreed upon by the County In the event the deficiency is not corrected within the prescribed period , county funding may be forfeited until the deficiency is corrected Failure to do so may also result in the revocation of the agreement and franchise c Deficiencies regarding administrative matters or other areas not directly affecting patient care will be identified as such The Agency will be given thirty 30 days to correct these deficiencies unless otherwise agreed upon by both parties If the deficiency is not corrected within the prescribed period , a second verbal notice and written warning will be provided In the event the deficiency is not corrected within the prescribed period , county funding may be forfeited until the deficiency is corrected d Should the Agency elect to appeal a decision relating to agreement performance , their appeal will be to the County Board of Commissioners Section 4 Communications The Agency agrees to provide each base of operations with a minimum of one 1 open telephone line and one 1 fax line Further , the Agency agrees to register both phone numbers with the County Emergency Services Office and 9 - 1 - 1 Communications Center Section 5 RecordsPagePage pageNumber6102 March 5 , 2007 – 10 00 am Continued 1 The Agency agrees to maintain personnel records of all employees , including but not limited to , time sheets , member qualifications , training records , continuing education records , certifications , and shot records Such records shall also include member’s complete name , address , phone numbers , last 4 digits of social security number , driver’s license number and certification levels The Agency agrees to turn over all records to the County should they cease to function as an EMS Agency 2 The Agency agrees to maintain the following a Record of dispatch , which will show time call was received by the Agency , time ambulance departed , time arrived on scene , time departed scene , time arrived at destination and time available Records are to be maintained for a minimum of three years b Trip record , which shall state the agreeing party’s name , the patient’s name , address and telephone number , condition of patient , type of assistance rendered , schedule of charges and name of medical responders and technicians Records are to be maintained for a minimum of three years c To maintain complete financial records , in accordance with generally accepted accounting practices , with respect to patients , revenues and operation cost In addition , the Agency agrees to comply with budgeting procedures as provided by state law The Agency also agrees to use standard line items chart of accounts prepared by the County Internal Auditor for accounting as approved by the County Finance Officer Internal Auditor d To maintain full records in connection with all inquiries , complaints and requests regarding its provision of medical care , to include response times , equipment failure and injuries to personnel The records shall identify the person contacting the Agency and the person responding on behalf of the Agency , the subject matter of the contact , the date and time it was received , the resolution of the matter in question and such other information as may be deemed pertinent by the Agency and the County The Agency shall respond within ten 10 workdays to complaints and requests Complaints or requests which may pose a health or safety hazard shall be responded to within five 5 workdays e To meet or exceed Johnston County’s policy for Health Portability and Accountability Act HIPPA compliance and to follow County guidelines relative to the County’s Notice of Privacy Practices NOPP f Patient Care Reports PCRs shall be completed before the end of each shift and data collection reported to the State within 24 hours to insure PREMIS reporting compliance 3 The County agrees to a Provide the necessary software and training to assist the Agency in maintaining their financial records b Communicate immediately to the Chief and or Board Chairman any inquiries , complaints or requests received directly by the County having to do with the Agency or regarding Agency operations Section 6 Inspection of Records and Assets Upon notice to the Chief , the Agency agrees that the County may inspect the Agency’s records , premises , vehicles and equipment during normal working hours to insure compliance with the franchise The Agency agrees to present all st financial records to the County no later than August 31 of each year for audit by the County Finance Department or in lieu of this , provide to the County an annual audit at the Agency’s expense that meets the County’s audit criteria Such audit shall be conducted by an independent certified public accountant , and shall include a list of employees , positions and hourly pay rate The Agency further agrees to provide a blanket fidelity bond by a surety licensed in North Carolina designating the County as oblige in an amount at least equal to the sum of the County’s annual funding Section 7 Rates and Charges The Agency agrees to charge the rates approved by the County and shall charge neither more nor less than the approved rates without specific approval by the County Section 8 Assignment and Ownership This agreement may not be sold , assigned , mortgaged or otherwise transferred without the approval of the County and a finding of conformance with all requirements of the article as upon original contracting The Agency agrees that prior approval of the County shall be required where ownership or control of more than ten 10 percent of the right of control of the Agency is acquired by a person or group of persons acting in concert , none of whom own or control ten 10 percent or more of such right of control , singularly or collectively , at the date of the Agreement By entering into this agreement , the Agency specifically agrees that any such acquisition occurring without prior approval of the County shall constitute a violation of the agreement by the Agency and shall be cause for termination at the option of the County The Agency agrees that any change of ownership of its ambulance service without the approval of the County shall terminate the agreement , shall require a new application and a new agreement and conformance with all the requirements of this article as upon original contracting Section 9 Severability If any part of this agreement is for any reason held invalid or unconstitutional by any court of competent jurisdiction , that part shall be deemed a separate , distinct and independent provision , and the holding shall not affect the validity of the remaining portions of this agreement The Agency’s application for the provision of ambulance service shall constitute a portion of this agreement as fully as if set forth herein and the Agency shall be bound by those statements set forth in its application Section 10 Liability and Insurance The Agency agrees to maintain throughout the term of the agreement , either insurance coverage issued by an insurance company licensed to do business in this state , or a bond with personal or corporate surety in the following types and amounts General liability insurance , or a bond , in the minimum amount of PagePage pageNumber7103 March 5 , 2007 – 10 00 am Continued 100,000 for property damage per occurrence 500,000 for property damage aggregate 500,000 for personal bodily injury to any one person , and 1,000,000 for bodily injury aggregate per single accident or occurrence Automobile liability insurance or a bond for each ambulance or other vehicle owned , non - owned , rented or operated by or for the ambulance service in the minimum amount of 1,000,000 for bodily injury and consequent death per occurrence 500,000 for bodily injury and consequent death to any one person and , 500,000 for property damage per occurrence All insurance policies and bonds maintained pursuant to the agreement shall contain the following endorsement “ It is agreed that this insurance policy or bond may not be cancelled by the insurance Agency or surety nor the intention not to renew be stated by the insurance Agency or surety until at least thirty 30 days after receipt by the County Manager of Johnston County , North Carolina , by registered mail , or a written notice of its intention to cancel or not to renew Section 11 Indemnification The Agency agrees to fully indemnify and hold harmless the County , it’s officers , agents , employees , board , commissions and agencies against all loss , liability , claims or actions for damages to persons or property arising out of omissions of the Agency , it’s employees , or agents , or to which the Agency’s negligence shall in any way contribute Section 12 Termination In addition to all other rights and posers retained by the County under this agreement , the County reserves the right to terminate the agreement and all rights and privileges of the Agency under it in the event of a substantial breach of its terms and conditions A substantial breach by the Agency may include , but not be limited to the following a Violation of any material provision of the agreement or any material rule , order , regulation or determination of the County made pursuant to the agreement b Attempt to evade any material provision of the agreement or practice any fraud or deceit upon the ambulance service users or the County c Failure to provide the services promised in the application and agreement d Failure to adequately staff the ambulance service e Failure to provide for adequate staff training , certification and re - certification f Failure to adequately maintain vehicles , equipment , medical supplies and communication system g Failure to submit and maintain adequate records as required in Section 5 h Material misrepresentation of fact in the application for or negotiation of the agreement The County may make a written notification that the Agency comply with any provisions , rules , order or determination under or pursuant to this agreement If the violation by the Agency continues without proof that corrective action has been taken or is being actively and expeditiously pursued , the County may , upon thirty 30 days written notice , terminate the agreement The Agency shall have the right to appeal the agreement termination The appeal request shall be in writing to the County Board of Commissioners The County reserves the right to suspend this agreement prior to termination if the County deems it beneficial in order to rectify violations and to effect compliance Such suspension shall not preclude termination of the agreement if a violation continues or if a subsequent violation occurs In addition , the Agency acknowledges that the Johnston County Medical Director , within the rules and regulations of the North Carolina Board of Medical Examiners or the Johnston County Emergency Medical Services Plan may suspend or terminate for good cause the privileges of a person providing emergency medical services in Johnston County The County reserves the right to withhold County funds , equipment or other County assistance in order to rectify deficiencies or violations and to effect compliance with the provisions of this agreement The withholding of such funds , equipment or other County assistance shall not preclude suspension or termination of this agreement by the County Section 13 No Waiver The County’s not insisting upon strict compliance with any of the provisions of this agreement , or not exercising any of its options provided herein , shall not be construed as a waiver of its right thereafter to require such compliance or to exercise any such options 11 Health Dept - Community Health Assessment Dr Marilyn Pearson , Health Director , presented the Community Health Assessment , which is performed every four years and is a review of health data for the county The Assessment is based upon data statistics and citizen surveys completed by residents of the county Dr Pearson highlighted the following items • Top Five Health Concerns 1 Health Insurance Coverage , 2 Affordable Medicine , 3 Health Care for Seniors , 4 Crime , and 5 Diabetes • Majority of the respondents to the survey were from Clayton , Selma and Smithfield ; observation that the County is becoming less rural , and concern the population growth will place extra demands on the health care system • The Hispanic or Latino population in the county has increased from being 3 of the population in 1990 to 103 in 2005 North Carolina is credited with the fastest growing Latino population in the country Johnston County th ranks 8 out of 100 counties with a significant Latino population • According to the NC Rural Economic Development Center , 128 of Johnston County residents had incomes below the poverty level Poverty , more than any other socio - economical factor , accounts for poor health status and a high incidence of chronic health problems PagePage pageNumber8104 March 5 , 2007 – 10 00 am Continued • Five Leading Causes of Death 1 Heart Disease , 2 Cancer , 3 Cerebrovascular , 4 Accidents , and 5 Respiratory Disease • NC State Center for Health Statistics polled 300 - 400 residents by phone randomly in Johnston County Some of the results were as follows 65 were not getting the recommended physical activity , 188 had no current health insurance , and 518 provided care to a person with Alzheimer or similar condition Dr Pearson concluded the biggest concern to staff is the consensus among Johnston County residents to seek health care only if it is needed She emphasized that the Health Department and health care providers in the county need to focus on prevention Dr Pearson recognized Cynthia Toudle , Health Education Supervisor , and thanked Ms Toudle and her staff for preparing the Assessment In response to a question from Commissioner Tony Braswell , Dr Pearson noted that staff is seeing a lot more children with Type II Diabetes , and in response to this , staff is performing diabetes screening at health fairs 12 Board of Health - Resolution Supporting Local Fees for Food and Lodging Inspections Dr Marilyn Pearson , Health Director , presented to the Board as an informational item a Resolution Supporting Local Fees for Food and Lodging Inspections , which was adopted by the Board of Health on January 9 , 2007 She noted that the State mandates that local governments provide Food and Lodging inspections , however , the State provides less than 13,000 per year to Johnston County in support of this program It costs the County more than 375,000 per year to meet the State mandated requirements of the Food and Lodging Program The resolution adopted by the Board of Health requests the General Assembly enact legislation empowering local governments to approve and collect fees for providing Food and Lodging support and inspections Dr Pearson commented the resolution began with the NC Association of Local Health Directors In response to a question from Commissioner Cookie Pope , Larry Sullivan , Environmental Health Director , noted the State mandates the Food and Lodging inspections The County has four employees assigned to this task that inspect approximately 400 establishments on a quarterly basis , and other special events as needed Commissioner Wade M Stewart expressed concern that Johnston County’s Board of Health signed onto a statewide initiative that may not impact the Johnston as much as other counties across the state He questioned why the Health Department is taking issue with where the funds come from to pay for the Food and Lodging program Dr Pearson commented that one third of the Environmental Health budget is for the Food and Lodging program , and there is a concern that the County’s growth will continue to increase the cost Commissioner W Ray Woodall clarified , if enacted into law by the General Assembly , each county will be required to approve the local fee for their locality He encouraged the Commissioners to support the Board of Health’s initiative , and consider looking at the local fee at a later date , if needed Linwood Parker , local restaurant owner , expressed opposition to the local fee , and emphasized restaurant owners are already paying fees to the State for inspections He asked that the Board not support any legislation that would add more taxes to small businesses Motion - 1 Commissioner Tony Braswell moved the Board take the matter under advisement Commissioner Jeffrey P Carver seconded the motion , which carried by the following vote Ayes Allen L Mims , Jr , Jeffrey P Carver , and Tony Braswell Nays Cookie Pope , Wade M Stewart , W Ray Woodall , and DeVan Barbour Motion - 2 Commissioner Allen L Mims , Jr moved the Board express support for the Board of Health’s Resolution Supporting Local Fees for Food and Lodging Inspections , and stated this would give Johnston County a tool , if the County ever needed it in the future Commissioner W Ray Woodall seconded the motion , which carried by the following vote Ayes Allen L Mims , Jr , W Ray Woodall , and Jeffrey P Carver Nays Cookie Pope , Wade M Stewart , DeVan Barbour , and Tony BraswellPagePage pageNumber9105 March 5 , 2007 – 10 00 am Continued 13 Award of Contract for Former Cooperative Extension Building Renovation & Budget Revision The Board reviewed the following bids , which were received February 13 , 2007 for interior construction renovations to the former Cooperative Extension Building The building will become part of the Department of Social Services Contractors Base Bid Alt Alt Alt Alt Alt # 1 # 2 # 3 # 4 # 5 Talon Construction Inc 1526 South Brightleaf Blvd 953,000 39,000 5,000 0 0 0 Smithfield , NC 27577 The Bradley Corporation 929 N Brightleaf Blvd 1,106,522 101,150 0 0 25,300 0 Smithfield , NC 27577 Centurion Construction Co , Inc 3304 Glen Royal Road 1,053,000 36,200 0 0 0 0 Raleigh , NC 27617 Daniels & Daniels Construction Co 178 NC Hwy 111 South 967,000 37,000 0 0 0 0 Goldsboro , NC 27534 Inland Construction Co 407 Gorman Street , Suite 201 930,000 37,164 0 0 0 34,846 Raleigh , NC 27607 Staff recommended award of contract to low bidder , Talon Construction Inc of Smithfield , NC in the total contract amount of 997,000 , which includes the Base Bid - 953,000 , Alternate 1 for Folding Partitions - 39,000 , and Alternate 2 for Hardware - 5,000 Staff requested the Board approve a budget revision , in the amount of 350,000 , to increase the Social Services Renovation Project Budget for the funding needed to cover the additional cost of the project for the roof and the interior construction , and the estimated cost of the purchase of cubicle partitions In response to concerns from the Board , Tom Trowbridge with The Wooten Company , the architectural and engineering firm for the project , stated they invite the Commissioners to attend the monthly meetings that discuss the progress of the project Further , payments to contractors will only be made on work that the County accepts Commissioner Tony Braswell moved the Board award the contract to low bidder , Talon Construction Inc of Smithfield , NC in the total contract amount of 997,000 , which includes the Base Bid - 953,000 , Alternate 1 for Folding Partitions - 39,000 , and Alternate 2 for Hardware - 5,000 , and approve the following budget revision , in the amount of 350,000 , to increase the Social Services Renovation Project Budget for the funding needed to cover the additional cost of the project for the roof and the interior construction , and the estimated cost of the purchase of cubicle partitions Commissioner Jeffrey P Carver seconded the motion , which carried by the following vote Ayes Cookie Pope , Wade M Stewart , Allen L Mims , Jr , Jeffrey P Carver , Tony Braswell Nays W Ray Woodall Not Voting DeVan Barbour FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 61571800 Construction Project 400,00000 10 61401902 State County Special Assistance 50,00000 TOTAL NET EXPENDITURES 350,00000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 460033990 Fund Balance 150,00000 10 610034123 Social Services Administration 200,00000 350,00000 TOTAL NET REVENUEPage0106 March 5 , 2007 – 10 00 am Continued 14 Request for Lottery Proceeds County Finance Director John Massey stated to date the County has drawn down 488,000 in lottery proceeds from the State ; 12 million remains and is available to be drawn down as well He requested the Board’s permission to ask the State to release the remaining lottery proceeds , and use these funds for debt service Commissioner DeVan Barbour moved the Board authorize the County Finance Director to ask the State to release the remaining lottery proceeds , in the amount of 12 million , and use these funds for debt service Commissioner Jeffrey P Carver seconded the motion , which carried by unanimous vote 15 Budget Amendments Following discussion , Commissioner Jeffrey P Carver moved the Board approve the following budget amendments Commissioner W Ray Woodall seconded the motion , which carried by unanimous vote 911 Communications FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 45 520633990 Fund Balance Appropriated 1,50000 45 520636136 Enhanced 911 1,50000 45 520733990 Fund Balance Appropriated 25,00000 45 520735138 Wireless 911 Revenue 25,00000 Emergency Services FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 53001400 Travel 43516 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 530034144 Revenue 43516 Health FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 59251410 Training 40000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 592534155 East Carolina University 40000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 59200300 Part Time Salary 3,80400 10 59203300 Departmental Supplies 57500 10 59201400 Travel 15600 10 59202600 Advertising 1,10000 10 59200408 Medical Providers 11,01600 TOTAL NET EXPENDITURES 16,65100 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 592034155 Susan G Komen 16,65100 16,65100 TOTAL NET REVENUEPage1107 March 5 , 2007 – 10 00 am Continued FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 59103300 Departmental Supplies 3,64663 10 59101400 Travel 3,00000 10 59107450 Non Major Capital Assets 10,50000 TOTAL NET EXPENDITURES 17,14663 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 591034155 Division of Environmental Health 17,14663 17,14663 TOTAL NET REVENUE Johnston County Criminal Justice Partnership FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 51351400 Travel 1,34500 10 51354500 Contract Services 33,20600 10 51353200 Office Supplies 5,50000 TOTAL NET EXPENDITURES 40,05100 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 513534155 State Grant 40,05100 40,05100 TOTAL NET REVENUE Motor Vehicles Tax FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 55 66504533 Penalties – MV – State 105,00000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 55 665032700 Tax Penalties Collected 105,00000 Sheriff Juvenile Restitution Program FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 51304900 Other Fixed Charges 90400 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 513034162 Restitution Revenue 90400 Detention Center FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 52000411 Professional Service – Hospital 1,71040 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 520033099 Misc Revenue 1,71040 Sheriff’s Office FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 51007414 Capital Outlay – Sheriff’s Special 14,88700 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 510034163 Federal Grant – Equipment 14,88700Page2108 March 5 , 2007 – 10 00 am Continued FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 51001700 Vehicles 10,88656 10 51003100 Fuels 20450 10 51003350 Supplies – Special Sheriff 4,00000 10 51007414 Capital Outlay – Sheriff Special 13,75321 10 51007418 Capital Outlay – Drug Seizure 5,66223 TOTAL NET EXPENDITURES 34,50650 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 510032106 Controlled Substance Tax 13,75321 10 510032509 Insurance Recovery 10,88656 10 510033099 Misc Revenue 4,20450 10 510035160 Federal Equitable Sharing 5,66223 34,50650 TOTAL NET REVENUE Social Services FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 61101914 Wake Electric Roundup 2,00000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 610034123 Social Services Administration 2,00000 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 61101911 Carolina Power & Light Progress Energy 2,75098 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 610034123 Social Services Administration 2,75098 Special Appropriations FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION EXPENDITURE INCREASE DECREASE 10 58556358 JCATS ROAP Grant 111,61500 FUND BUDGET LINE ITEM REQUESTED CHANGE CODE CLASSIFICATION REVENUE INCREASE DECREASE 10 585534177 DOT ROAP Grant 111,61500 16 Appointments Upon a motion by Commissioner W Ray Woodall , seconded by Tony Braswell and carried by unanimous vote , the Board made the following appointments and granted waivers of the length of service policy if applicable A Brogden Fire Protection District Commission – Appointed Allan Daughtry , waived the length of service policy and reappointed Melton Thompson and Linwood Wallace for two year terms to expire March 31 , 2009 B Johnston County Emergency Food & Shelter Board – Appointed Betty Lee to fulfill an unexpired term ending December 31 , 2007 C Johnston County Emergency Medical Services Advisory Committee – Reappointed Dr Ben Winter to represent Johnston Memorial Hospital Emergency Room Physicians for a three year term to expire March 31 , 2010 Page3109 March 5 , 2007 – 10 00 am Continued D Nursing Home Adult Care Home Community Advisory Board – Reappointed Irene Benson and Eloise Hilliard for three year terms to expire March 31 , 2010 , and waived the length of service policy for Ms Benson E Johnston County Livestock Arena Management Board – Appointed Bryant Spivey to fill an unexpired term ending November 30 , 2008 It was the consensus of the Board to table appointments to the Local Emergency Planning Committee nd until the April 2 meeting 17 Little River Water District - Resolutions Regarding Funding Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Jeffrey P Carver and carried by unanimous vote , the Board recessed regular session to sit as the Little River Water District Board County Finance Director John Massey stated the original Bond Anticipation Notes for the Little River Water District were issued July 6 , 2006 , in the amount of 9,410,000 , and are maturing on March 28 , 2007 The original notes were sold for all three phases of the project Phase One is substantially complete and USDA is ready to buy the bonds , in the amount of 1,875,000 and 245,000 Phases Two and Three are not complete , thus there is a need to reissue the notes , in the amount of 7,290,000 , for these two phases He requested the Board adopt the following resolutions that will enable these actions • Resolution Authorizing the Sale of General Obligation Water Bonds - Series 2007A - 1,875,000 and Series 2007B - 245,000 • Resolution Authorizing the Issuance and Sale of General Obligation Water Bond Anticipation Notes of the Little River Water District in the Amount of 7,290,000 Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner Wade M Stewart and carried by unanimous vote , the Board adopted the following resolutions RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION WATER BONDS , SERIES 2007A IN THE AGGREGATE PRINCIPAL AMOUNT OF 1,875,000 AND GENERAL OBLIGATION WATER BONDS , SERIES 2007B IN THE AGGREGATE PRINCIPAL AMOUNT OF 245,000 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 Little River Water District of Johnston County the “ District ” on August 2 , 2004 , and approved by a majority of the qualified voters of the District voting thereon at a referendum held on November 2 , 2004 ; and WHEREAS , the Board desires to provide for the issuance of 1,875,000 General Obligation Water Bonds , Series 2007A the “ Series 2007A Bonds ” and 245,000 General Obligation Water Bonds , Series 2007B the “ Series 2007B Bonds ” the Series 2007A Bonds and the Series 2007B Bonds collectively , the “ Bonds ” to refund a portion 2,120,000 of the 9,410,000 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 Little River Water District of Johnston County , meeting in regular session in Smithfield , North Carolina , on March 5 , 2007 , does the following BE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR JOHNSTON COUNTY , ACTING AS THE GOVERNING BODY OF THE LITTLE RIVER WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA 1 The District shall issue its general obligation water bonds in an aggregate principal amount of 2,120,000 pursuant to and in accordance with the Bond Order entitled BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE LITTLE RIVER WATER DISTRICT IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF 9,995,000 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 March 26 , 2007 The Series 2007A Bonds shall mature in annual installments on June 1 in years and amounts as follows Year Amount Year Amount Year Amount 2009 22,000 2022 36,000 2035 61,000 2010 22,000 2023 37,000 2036 64,000 2011 23,000 2024 39,000 2037 66,000 2012 24,000 2025 41,000 2038 69,000 2013 25,000 2026 42,000 2039 72,000 2014 26,000 2027 44,000 2040 75,000 2015 27,000 2028 46,000 2041 78,000 2016 28,000 2029 48,000 2042 81,000 2017 29,000 2030 50,000 2043 84,000Page4110 March 5 , 2007 – 10 00 am Continued 2018 31,000 2031 52,000 2044 88,000 2019 32,000 2032 54,000 2045 88,000 2020 33,000 2033 56,000 2046 88,000 2021 35,000 2034 59,000 The Series 2007B Bonds shall mature in annual installments on June 1 in years and amounts as follows Year Amount Year Amount Year Amount 2009 3,000 2022 5,000 2035 8,000 2010 3,000 2023 5,000 2036 8,000 2011 3,000 2024 5,000 2037 9,000 2012 3,000 2025 5,000 2038 9,000 2013 3,000 2026 5,000 2039 9,000 2014 3,000 2027 6,000 2040 10,000 2015 4,000 2028 6,000 2041 10,000 2016 4,000 2029 6,000 2042 11,000 2017 4,000 2030 6,000 2043 11,000 2018 4,000 2031 7,000 2044 11,000 2019 4,000 2032 7,000 2045 12,000 2020 4,000 2033 7,000 2046 12,000 2021 5,000 2034 8,000 The Bonds shall bear interest at a rate of 4125 payable on June 1 , 2007 , 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 , 2018 are not subject to optional redemption , and Bonds maturing on or after June 1 , 2018 , are subject to redemption , at the option of the District , at any time on or after June 1 , 2017 , at a redemption price equal to the principal amount thereof to be redeemed , together with interest accrued thereon to the date fixed for redemption , but without any premium Notice of redemption shall be given by first class mail , postage prepaid , to the registered owner of the Bonds Such notice shall be mailed not more than 60 nor less than 30 days prior to the date fixed for redemption 4 The Bonds shall be signed by the manual or facsimile signature of the Chairman , shall be countersigned by the manual or facsimile signature of the Clerk and the manual or facsimile District seal shall be printed or affixed thereon No Bond shall be valid until it has been endorsed by the manual or facsimile signature of the authorized representative of the North Carolina Local Government Commission the “ LGC ” 5 The Series 2007A Bonds shall be in substantially the following form , the terms and requirements of which are incorporated herein by reference REGISTERED REGISTERED No R - ___ 1,875,000 UNITED STATES OF AMERICA STATE OF NORTH CAROLINA JOHNSTON COUNTY , NORTH CAROLINA ACTING AS THE GOVERNING BODY OF THE LITTLE RIVER WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA Water Bond , Series 2007A The Little River 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 , ACTING BY AND THROUGH RURAL UTILITIES SERVICE , AN AGENCY OF THE UNITED STATES DEPARTMENT OF AGRICULTURE or its registered assigns the “ Payee ” , the principal sum of ONE MILLION EIGHT HUNDRED SEVENTY - FIVE THOUSAND AND NO 100 DOLLARS 1,875,000 on the first day of June in installments as follows Year Amount Year Amount Year Amount 2009 22,000 2022 36,000 2035 61,000 2010 22,000 2023 37,000 2036 64,000 2011 23,000 2024 39,000 2037 66,000Page5111 March 5 , 2007 – 10 00 am Continued 2012 24,000 2025 41,000 2038 69,000 2013 25,000 2026 42,000 2039 72,000 2014 26,000 2027 44,000 2040 75,000 2015 27,000 2028 46,000 2041 78,000 2016 28,000 2029 48,000 2042 81,000 2017 29,000 2030 50,000 2043 84,000 2018 31,000 2031 52,000 2044 88,000 2019 32,000 2032 54,000 2045 88,000 2020 33,000 2033 56,000 2046 88,000 2021 35,000 2034 59,000 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America , and to pay interest on the balance of said principal sum from time to time remaining unpaid , in like coin or currency , from the date hereof at the rate of 4125 per annum , while held by the original payee , on June 1 , 2007 , 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 2 , 2004 , 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 2 , 2004 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 , 2018 , it is not subject to redemption at the option of the District , and b if this bond matures on or after June 1 , 2018 , it is subject to redemption at the option of the District , at any time on or after June 1 , 2017 , 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 March 26 , 2007 LITTLE RIVER WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAR