July 9, 2007 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 300 Meeting of the Johnston County Board of Commissioners July 9 , 2007 10 00 am The Johnston County Board of Commissioners met in regular session Monday , July 9 , 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 , and Tony Braswell Absent DeVan Barbour 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 Deva C Holt , Deputy Clerk Chairman Cookie Pope called the meeting to order at 10 00 am Chairman Pope noted Commissioner DeVan Barbour was absent due to an illness in the family Commissioner Wade M Stewart led those in attendance in the pledge of allegiance to the American flag Commissioner W Ray Woodall opened the meeting with a prayer 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 June 4 , 2007 10 00 am and 6 00 pm , June 11 , 2007 6 00 pm , and June 20 , 2007 5 30 pm board meetings as presented 2 Public Comments A Citizen Concern – Documentation Regarding Rezoning Case 07 - 8 from the June 4 , 2007 6 00 pm Board of Commissioners Meeting Linda Botens , 150 Jordan Narron Road , Selma , addressed the Board and stated she and her neighbors had sent correspondence to each Commissioner directly concerning Rezoning Case 07 - 8 which was heard at the June 4 , 2007 6 00 pm Board of Commissioners meeting Ms Botens informed the Board that in the correspondence she had requested the documents be made a part of the record for Rezoning Case 07 - 8 Ms Botens inquired if her request had been granted After discussion concerning this request , the Board instructed Ms Botens to send a copy of the referenced correspondence to the Clerk who would in turn file the documentation with the information regarding Rezoning Case 07 - 8 3 Recognition of Leadership Academy Graduates The Johnston County Leadership Academy graduated its second class on May 31 , 2007 Twelve County employees participated in the program , which included classes taught by members of the County staff on the workings and relationships of departments , and sessions on interpersonal relationships Director of Human Resources Pat LaCarter recognized and presented certificates of completion to each graduate as follows Dean Barbour – Inspections Chandra Coats – Public Utilities Patrick Cogdell – Emergency Management Cathy Futch – Tax Department Debbie Holloman – Public Utilities Terre Keel – Tax Department Tracy Langdon – Animal Services Randy Merson – Public Utilities Andrea Paul – Public Health Cynthia Toudle – Public Health Candice Warwick – Emergency Management Dennis Woodward – Tax Department Mr LaCarter announced that the Leadership Academy graduates had undertaken a class project to raise money for the Friends of the Johnston County Animal Shelter The graduates presented a check to Animal Services Director Ernie Wilkinson in the amount of 1,100 for the Friends of the Johnston County AnimalPage301 July 9 , 2007 – 10 00 am Continued Shelter Mr Wilkinson thanked the graduating class and noted the money would be used towards the creation of a low - cost spay and neuter clinic Mr Wilkinson complimented the Leadership Academy Program Chairman Cookie Pope thanked Mr LaCarter and the Human Resources staff for their efforts on the Leadership Academy Program The Chairman wished each graduate continued success in their future endeavors 4 Report to Board – Fireworks Displays Approved by Chairman th Chairman Cookie Pope informed the Board that since the June 4 meeting she had approved the following fireworks displays th Dunn - Benson Dragstrip – May 26 th st Archer Lodge Community Center – June 30 rain date July 1 th Clayton Parks & Recreation – July 4 th Celebrate Cleveland Committee – July 4 th Town of Kenly – July 4 th Camp Tuscarora - July 6 5 Department of Transportation – Additions to System The Board reviewed petitions presented by the North Carolina Department of Transportation requesting the following roads be added to the State Secondary System for maintenance North Farm Drive , Hocutt Farm Drive , Willowbrook Circle - North Farm Subdivision – Section One & Two – Wilders Township Wood Haven Lane , Miry Branch Drive , Hidden Creek Lane – Miry Branch Subdivision – Cleveland Township Blande Drive – Whitley Farms Subdivision – O’Neal’s Township River Hills Drive and Brookmont Drive – River Hills Subdivision Phases 2A and 2B – Wilders Township Mill Creek Drive , Mill Circle , Hocutt Farm Drive , Gathering Drive , Wembury Drive , Brooksby Court , and Harvest Moon Drive – Mill Creek West Subdivision – Section I and II – Wilders Township Commissioner W Ray Woodall moved the Board concur with the NC Department of Transportation’s request to add the above listed roads to the State Maintained System Commissioner Tony Braswell seconded the motion , which carried by unanimous vote 6 Resolution – Authorizing Issuance and Sale - 52,600,000 GO Public Improvements Bonds , Series 2007 Chairman Cookie Pope introduced the following resolution , a summary of which had been provided to each Commissioner , a copy of which was available with the Clerk to the Board and which was read by title RESOLUTION PROVIDING FOR THE ISSUANCE OF UP TO 52,600,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS , SERIES 2007 BE IT RESOLVED by the Board of Commissioners the “ Board ” of the County of Johnston , North Carolina the “ County ” Section 1 The Board has determined and does hereby find , declare and represent a 1 That an order the “ 2005 School Bond Order ” authorizing not exceeding 85,000,000 General Obligation School Bonds the “ 2005 School Bonds ” was adopted by the Board for the County on February 7 , 2005 , which 2005 School Bond Order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on May 10 , 2005 a 2 That 70,000,000 of the 2005 School Bonds have been issued , that no notes have been issued in anticipation of the receipt of the proceeds of the sale of said 2005 School Bonds , and that it is necessary to issue at this time the remaining 15,000,000 of said 2005 School Bonds in accordance with the provisions of Section 2 of this resolution a 3 That the maximum period of usefulness of the facilities to be financed with the proceeds of said 2005 School Bonds to be issued is estimated as a period of 40 years from August 7 , 2007 the date of said remaining 2005 School Bonds , as hereinafter provided , and that such period expires on August 7 , 2047 Page302 July 9 , 2007 – 10 00 am Continued b 1 That an order the “ 2005 Community College Bond Order ” authorizing not exceeding 10,000,000 General Obligation Community College Bonds the “ 2005 Community College Bonds ” was adopted by the Board for the County on February 7 , 2005 , which 2005 Community College Bond Order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on May 10 , 2005 b 2 That 5,000,000 of the 2005 Community College Bonds have been issued , that no notes have been issued in anticipation of the receipt of the proceeds of the sale of said 2005 Community College Bonds , and that it is necessary to issue at this time the remaining 5,000,000 of said 2005 Community College Bonds in accordance with the provisions of Section 2 of this resolution b 3 That the maximum period of usefulness of the facilities to be financed with the proceeds of said 2005 Community College Bonds to be issued is estimated as a period of 40 years from August 7 , 2007 the date of said remaining 2005 Community College Bonds , as hereinafter provided , and that such period expires on August 7 , 2047 c 1 That an order the “ 2007 School Bond Order ” authorizing not exceeding 99,000,000 General Obligation School Bonds the “ 2007 School Bonds ” was adopted by the Board for the County on February 5 , 2007 , which 2007 School Bond Order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on May 8 , 2007 c 2 That none of said 2007 School Bonds have heretofore been issued , that no notes have been issued in anticipation of the receipt of the proceeds of the sale of said 2007 School Bonds , and that it is necessary to issue at this time 28,000,000 of said 2007 School Bonds in accordance with the provisions of Section 2 of this resolution c 3 That the maximum period of usefulness of the facilities to be financed with the proceeds of said 2007 School Bonds to be issued is estimated as a period of 40 years from August 7 , 2007 the date of said 2007 School Bonds , as hereinafter provided , and that such period expires on August 7 , 2047 d 1 That an order the “ 2007 Community College Bond Order ” authorizing not exceeding 10,000,000 General Obligation Community College Bonds the “ 2007 Community College Bonds ” was adopted by the Board for the County on February 5 , 2007 , which 2007 Community College Bond Order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on May 8 , 2007 d 2 That none of said 2007 Community College Bonds have heretofore been issued , that no notes have been issued in anticipation of the receipt of the proceeds of the sale of said 2007 Community College Bonds , and that it is necessary to issue at this time 2,700,000 of said 2007 Community College Bonds in accordance with the provisions of Section 2 of this resolution d 3 That the maximum period of usefulness of the facilities to be financed with the proceeds of said 2007 Community College Bonds to be issued is estimated as a period of 40 years from August 7 , 2007 the date of said 2007 Community College Bonds , as hereinafter provided , and that such period expires on August 7 , 2047 e 1 That an order the “ Parks and Recreation Bond Order ” authorizing not exceeding 3,700,000 General Obligation Parks and Recreation Bonds the “ Parks and Recreation Bonds ” was adopted by the Board for the County on February 5 , 2007 , which Parks and Recreation Bond Order was approved by the vote of a majority of the qualified voters of said County who voted thereon at a special referendum duly called and held on May 8 , 2007 e 2 That none of said Parks and Recreation Bonds have heretofore been issued , that no notes have been issued in anticipation of the receipt of the proceeds of the sale of said Parks and Recreation Bonds , and that it is necessary to issue at this time 1,900,000 of said Parks and Recreation Bonds in accordance with the provisions of Section 2 of this resolution e 3 That the maximum period of usefulness of the facilities to be financed with the proceeds of said Parks and Recreation Bonds to be issued is estimated as a period of 40 years from August 7 , 2007 the date of said Parks and Recreation Bonds , as hereinafter provided , and that such period expires on August 7 , 2047 Section 2 Pursuant to the 2005 School Bond Order , there shall be issued bonds of the County in the aggregate principal amount of 15,000,000 Pursuant to the 2005 Community College Bond Order , there shall be issued bonds of the County in the aggregate principal amount of 5,000,000 Pursuant to the 2007 School Bond Order , there shall be issued bonds of the County in the aggregate principal amount of 28,000,000 Pursuant to the 2007 Community College Bond Order , there shall be issued bonds of the County in the aggregate principal amount of 2,700,000 Pursuant to the Parks and Recreation Bond Order , there shall be issued bonds of the County in the aggregate principal amount of 1,900,000 The Bonds issued pursuant to this Section 2 shall be designated “ Public Improvement Bonds , Series 2007 ” and dated their date of delivery the “ Bonds ” The Bonds shall be stated to mature subject to the right of prior redemption as hereinafter set forth annually , February 1 , 1,400,000 2010 and 2011 , 2,100,000 2012 , 2,800,000 2013 and 2014 , 3,510,000 2015 through 2018 , inclusive , 2,810,000 2019 through 2021 , inclusive , 3,510,000 2022 through 2024 , inclusive , 4,200,000 2025 and 4,900,000 2026 The Bonds shall bear interest at a rate or rates to be determined by the Local Government Commission of North Carolina at the time the Bonds are sold , which interest to the respective maturities thereof shall be payable on February 1 , 2008 or such other date as is designated by the County Manager or the Director of Finance in connection with the sale of the Bonds and semiannually thereafter on August 1 and February 1 of each year or other semiannual dates designated by the County Manager or the Director of Finance in connection with the sale of the Bonds until payment of such principal sum Section 3 Each Bond shall bear interest from the interest payment date next preceding the date on which it is authenticated unless it is a authenticated upon an interest payment date in which event it shall bear interest from such interest payment date or b authenticated prior to the first interest payment date in which event it shall bear interest from its date ; provided , however , that if at the time of authentication interest is in default , such Bond shall bear interest from the date to which interest has been paid The principal of and the interest and any redemption premium on the Bonds shall be payable in any coin or currency of the United States of America which is legal tender for the payment of public and private debts on the respective dates of payment thereof Section 4 The Bonds initially will be issued by means of a book - entry system with no physical distribution of bond certificates to be made except as hereinafter provided Initially one fully registered bond certificate for each stated maturity of the Bonds in the aggregate principal amount of the Bonds of such stated maturity and registered in the name of the Securities Depository Nominee defined below , a nominee of the Securities Depository defined below , will be issued and required to be deposited with the Securities Depository and immobilized in its custody The book - entry system of the Securities Depository will evidence positions held in the Bonds by the Securities Depository’s participants , with beneficial ownership of the Bonds in the principal amount of 5,000 or any whole multiple thereof being evidenced in the records of such participants Transfers of beneficial ownership will be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants The County and the Bond Registrar will recognize the Securities Depository Nominee or the Securities Depository , as the case may be , while the registered owner of the Bonds , as the owner of the Bonds for all purposes , including payments of principal of , and redemption premium , if any , and interest on the Bonds , notices and voting The principal of and any redemption premium on each Bond shall be payable to the Securities Depository Nominee or any other person appearing on the registration books of the County hereinafter provided for as the registered owner of such Bond or his registered assigns or legal representative at the office of the Bond Registrar mentioned hereinafter or such other place as the County may determine upon the presentation and surrender thereof as the same shall become due and payable Payment of the interest on each Bond shall be made by the Bond Registrar on each interest payment date to thePage303 July 9 , 2007 – 10 00 am Continued registered owner of such Bond or the previous Bond or Bonds evidencing the same debt as that evidenced by such Bond 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 such person at his address as it appears on such registration books or , during the continuation of the book - entry system , by such other method of payment as the County may determine to be necessary or advisable with the concurrence of the Securities Depository Transfer of principal and interest and any redemption premium payments to participants of the Securities Depository will be the responsibility of the Securities Depository , and transfer of principal and interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners Such transfers of interest by the Securities Depository and by such participants and other nominees of such beneficial owners may be made to the owners of Bonds shown on their records on a date on or after said record date for such interest , pursuant to rules and procedures established by the Securities Depository and its participants The County and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining , supervising or reviewing records maintained by the Securities Depository , its participants or persons acting through such participants In the event that a any Securities Depository determines not to continue to act as securities depository for the Bonds or b the Director of Finance of the County determines to discontinue the book - entry system with such Securities Depository , the County may identify another qualified Securities Depository to replace the predecessor Securities Depository and , in such event , the County will make arrangements with the predecessor Securities Depository and such other Securities Depository to effect such replacement and deliver replacement Bonds , registered in the name of such other depository or its nominee in exchange for the outstanding Bonds , and all references in this resolution to any predecessor Securities Depository or Securities Depository Nominee shall thereupon be deemed to mean such other depository or its nominee If the County does not identify another qualified Securities Depository to replace the predecessor Securities Depository , the County will deliver replacement Bonds in the form of fully registered certificates in the denomination of 5,000 or any whole multiple thereof “ Certificated Bonds ” in exchange for the outstanding Bonds , as required by the predecessor Securities Depository and others Upon the request of the Securities Depository , the County may also deliver one or more Certificated Bonds to any participant of the Securities Depository in exchange for Bonds credited to its account with the Securities Depository The County and the Bond Registrar shall be entitled to rely upon the instructions of the Securities Depository as to the appropriate parties entitled to receive Certificated Bonds For purposes of this resolution “ Securities Depository ” means The Depository Trust Company , New York , New York , or other recognized securities depository selected by the County , which maintains the book - entry system in respect of the Bonds authorized by this resolution , and shall include any substitute for or successor to the securities depository initially acting as Securities Depository For purposes of this resolution “ Securities Depository Nominee ” means , as to any Securities Depository , such Securities Depository or the nominee , if any , of such Securities Depository in whose name the Bond certificates shall be registered on the registration books maintained by the Bond Registrar during the continuation with such Securities Depository of the book - entry system authorized by this resolution The Depository Trust Company , New York , New York , is hereby appointed as the initial Securities Depository , and Cede & Co , a nominee thereof , is hereby appointed as the initial Securities Depository Nominee for the Bonds Unless indicated otherwise , the provisions of this resolution that follow shall apply to all Bonds issued or issuable hereunder , whether initially or in replacement thereof Section 5 The Bonds shall be executed with the manual or facsimile signatures of the Chairman or Vice Chairman of the Board and the Clerk to the Board , and the seal or a facsimile of the seal of the County shall be impressed or imprinted , as the case may be , on the Bonds The certificate of the Local Government Commission of North Carolina shall be endorsed on all Bonds and shall bear the manual or facsimile signature of the Secretary of said Commission or on behalf of the Secretary by a Designated Assistant and the certificate of authentication of the Bond Registrar to be endorsed on all Bonds shall be executed as provided hereinafter In case any officer of the County or the Local Government Commission of North Carolina whose manual or facsimile signature shall appear on any Bonds shall cease to be such officer before the delivery of such Bonds , such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery , and any Bond may bear the manual or facsimile signatures of such persons as at the actual time of the execution of such Bond shall be the proper officers to sign such Bond although at the date of such Bond , such persons may not have been such officers No Bond shall be valid or become obligatory for any purpose or be entitled to any benefit or security under this resolution until it shall have been authenticated by the execution by the Bond Registrar of the certificate of authentication endorsed thereon Section 6 The Bonds and the endorsements thereon shall be in substantially the following form [ Front Side of Printed Bonds ] No R - ______ ______________ United States of America State of North Carolina COUNTY OF JOHNSTON , NORTH CAROLINA General Obligation Public Improvement Bonds , Series 2007 MATURITY DATE INTEREST RATE CUSIP _____________ __________________ ________ The County of Johnston , North Carolina the “ County ” , is justly indebted and for value received hereby promises to pay to _______________________________________________ or registered assigns or legal representative on the date specified above or earlier as hereinafter referred to , upon the presentation and surrender hereof , at the office of the Director of Finance of the County , currently at Johnston County Office Building , 207 E Johnston Street , Smithfield , North Carolina 27577 the “ Bond Registrar ” , the principal sum of ___________________________________________ DOLLARS and to pay interest on such principal sum from the date hereof or from the February 1 or August 1 next preceding the date of authentication to which interest shall have been paid , unless such date of authentication is a February 1 or August 1 to which interest shall have been paid , in which case from such date , such interest to the maturity hereof being payable on February 1 , 2008 and semiannually thereafter on August 1 and February 1 in each year , at the rate per annum specified above , until payment of such principal sum The interest so payable on any such interest payment date will be paid to the person in whose name this Bond or the previous Bond or Bonds evidencing the same debt as that evidenced by this Bond is registered 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 such person at his address as it appears on the bond registration books of the County Both the principal of and the interest on this Bond shall be paid in any coin or currency of the UnitedPagePage pageNumber5304 July 9 , 2007 – 10 00 am Continued States of America that is legal tender for the payment of public and private debts on the respective dates of payment thereof For the prompt payment hereof , both principal and interest as the same shall become due , the faith and credit of the County are hereby irrevocably pledged [ Printed Bonds are to include the following paragraph ] ADDITIONAL PROVISIONS OF THIS BOND ARE SET FORTH ON THE REVERSE HEREOF AND SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE [ Reverse Side of Printed Bonds ] This Bond is one of an issue of Bonds designated “ General Obligation Public Improvement Bonds , Series 2007 ” the “ Bonds ” and issued by the County for the purpose of providing funds , with any other funds necessary , for the acquisition , construction and equipping of new school facilities and the improvement or expansion of existing school facilities in Johnston County the acquisition , construction and equipping of community college facilities in Johnston County the acquisition , construction , renovation , improvement , modification , expansion and equipping of new or existing parks and recreation facilities in Johnston County This Bond is issued under and pursuant to The Local Government Bond Act , as amended , Article 7 , as amended , of Chapter 159 of the General Statutes of North Carolina , orders adopted by the Board of Commissioners the “ Board ” of the County which have taken effect as provided by law , and a resolution duly passed by said Board the “ Resolution ” The Bonds maturing prior to February 1 , 2018 are not subject to redemption prior to maturity The Bonds maturing on February 1 , 2018 and thereafter may be redeemed , at the option of the County , from any moneys that may be made available for such purpose , either in whole or in part on any date not earlier than February 1 , 2017 , at a redemption price equal to 100 of the principal amount of the Bonds to be redeemed , together with interest accrued thereon to the date fixed for redemption , without premium If less than all of the Bonds of any one maturity shall be called for redemption , the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot in such manner as the County in its discretion may determine ; provided , however , that the portion of any Bond to be redeemed shall be in the principal amount of 5,000 or some whole multiple thereof and that , in selecting Bonds for redemption , each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by 5,000 If less than all of the Bonds stated to mature on different dates shall be called for redemption , the particular Bonds or portions thereof to be redeemed shall be called in such maturities and amounts of those maturities as shall be determined by the County Not more than 60 days nor less than 30 days before the redemption date of any Bonds to be redeemed , whether such redemption be in whole or in part , the County shall cause a notice of such redemption to be filed with the Bond Registrar and to be mailed , postage prepaid , to the registered owner of each Bond to be redeemed in whole or in part at the address of said owner appearing upon the registration books of the County Failure to mail such notice or any defect therein as to any Bond or portion thereof shall not affect the validity of the redemption as to any Bond or portion thereof for which such notice was given as required hereby On the date fixed for redemption , notice of such call for redemption having been given as aforesaid and not revoked as hereinafter provided , the Bonds or portions thereof called for redemption shall be due and payable at the redemption price provided therefor , plus accrued interest to such date If moneys for payment of such redemption price and the accrued interest are held by the Bond Registrar as provided in the Resolution , interest on the Bonds or the portions thereof called for redemption shall cease to accrue , such Bonds or portions thereof shall cease to be entitled to any benefits or security under the Resolution or to be deemed outstanding , and the registered owners of such Bonds or portions thereof shall have no rights in respect thereof except to receive payment of the redemption price thereof , plus accrued interest to the date of redemption If a portion of this Bond shall be called for redemption , a new Bond or Bonds in principal amount equal to the unredeemed portion hereof will be issued to the registered owner hereof or the legal representative of said owner upon the surrender hereof The County shall have the right to revoke any call of Bonds for redemption if , on or prior to the third 3rd business day preceding any date fixed for redemption of Bonds , the County gives written notice to the Bond Registrar and the registered owner of each Bond theretofore called for redemption that the County has elected to revoke its call of such Bonds for redemption [ The following four paragraphs are to be included in the form of Bond so long as the Bonds are being issued pursuant to a book - entry system ] The Bonds initially are being issued by means of a book - entry system with no physical distribution of bond certificates to be made except as provided in the Resolution Initially one fully registered bond certificate for each stated maturity of the Bonds , in the aggregate principal amount of the Bonds of such stated maturity and registered in the name of the Securities Depository Nominee as defined in the Resolution , a nominee of the Securities Depository as defined in the Resolution , is being issued and required to be deposited with the Securities Depository and immobilized in its custody The book - entry system of the Securities Depository will evidence positions held in the Bonds by the Securities Depository’s participants , with beneficial ownership of the Bonds in the principal amount of 5,000 or any whole multiple thereof being evidenced in the records of such participants Transfers of beneficial ownership will be effected on the records of the Securities Depository and its participants pursuant to rules and procedures established by the Securities Depository and its participants The County and the Bond Registrar will recognize the Securities Depository Nominee or the Securities Depository , as the case may be , while the registered owner of this Bond , as the owner of this Bond for all purposes , including payments of principal of , and redemption premium , if any , and interest on , this Bond , notices and voting Transfer of principal and interest and any redemption premium payments to participants of the Securities Depository will be the responsibility of the Securities Depository , and transfer of principal and interest and any redemption premium payments to beneficial owners of the Bonds by participants of the Securities Depository will be the responsibility of such participants and other nominees of such beneficial owners The County and the Bond Registrar will not be responsible or liable for such transfers of payments or for maintaining , supervising or reviewing records maintained by the Securities Depository , its participants or persons acting through such participants While the Securities Depository Nominee or the Securities Depository , as the case may be , is the owner of this Bond , notwithstanding the provisions hereinabove contained , payments of principal of , redemption premium , if any , and interest on this Bond shall be made to the Securities Depository Nominee or the Securities Depository , as the case may be , by wire transfer in immediately available funds to the account of said holder as may be specified in the bond registration books maintained by the Bond Registrar or by such other method of payment as the County may determine to be necessary or advisable with the concurrence of the Securities Depository Further , so long as a book - entry system is used for determining beneficial ownership of Bonds , redemption notices shall be given to the Securities Depository Nominee by certified or registered mail or by such other method as the County may determine to be necessary or advisable with the concurrence of the Securities Depository In addition , so long as a book - entry system is used for determining beneficial ownership of Bonds , if less than all of the Bonds of any one maturity shall be called for redemption , the SecuritiesPagePage pageNumber6305 July 9 , 2007 – 10 00 am Continued Depository shall determine by lot the amount of interest of each direct participant of the Securities Depository in the Bonds within such maturity to be redeemed In certain events , the County may replace the Securities Depository at the time with another qualified securities depository In certain events , the County may discontinue the book - entry system and deliver replacement Bonds in the form of fully registered certificates in the denomination of 5,000 or any whole multiple thereof in exchange for the outstanding Bonds as provided in the Resolution At the office of the Bond Registrar , in the manner and subject to the conditions provided in the Resolution , Bonds may be exchanged for an equal aggregate principal amount of Bonds of the same maturity , of authorized denominations and bearing interest at the same rate The Bond Registrar shall keep at its office the books of the County for the registration of transfer of Bonds The transfer of this Bond may be registered only upon such books and as otherwise provided in the Resolution upon the surrender hereof to the Bond Registrar together with an assignment duly executed by the registered owner hereof or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar Upon any such registration of transfer , the Bond Registrar shall authenticate and deliver in exchange for this Bond a new Bond or Bonds , registered in the name of the transferee , of authorized denominations , in an aggregate principal amount equal to the unredeemed principal amount of this Bond , of the same maturity and bearing interest at the same rate The Bond Registrar shall not be required to exchange or register the transfer of any Bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or of any Bond called for redemption in whole or in part pursuant to the Resolution It is hereby certified and recited that all acts , conditions and things required by the Constitution and laws of North Carolina to happen , exist and be performed precedent to and in the issuance of this Bond have happened , exist and have been performed in regular and due form and time as so required ; that provision has been made for the levy and collection of a direct annual tax upon all taxable property within the geographic boundaries of the County sufficient to pay the principal of and the interest on this Bond as the same shall become due ; and that the total indebtedness of the County , including this Bond , does not exceed any constitutional or statutory limitation thereon [ The following paragraphs through the Certificate of Authentication are to appear on the front side of printed Bonds ] This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Resolution until this Bond shall have been authenticated by the execution by the Bond Registrar of the certificate of authentication endorsed hereon IN WITNESS WHEREOF , said County of Johnston , by resolution duly adopted by its Board , has caused this Bond to be executed with the manual or facsimile signatures of the [ Chairman Vice - Chairman ] and the Clerk to the Board and its seal to be impressed or imprinted hereon , all as of the _____ day of __________ , 2007 COUNTY OF JOHNSTON , NORTH CAROLINA [ Manual or Facsimile Signature ] [ Chairman Vice - Chairman ] [ SEAL ] [ Manual or Facsimile Signature ] Clerk to the Board of Commissioners CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within Bond has been approved under the provisions of The Local Government Bond Act of North Carolina [ Manual or Facsimile Signature ] Secretary , Local Government Commission [ By ] [ Designated Assistant ] CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds of the series designated herein and issued under the provisions of the within - mentioned Resolution COUNTY OF JOHNSTON , NORTH CAROLINA as Bond Registrar By _____________________________ Director of Finance Date of Authentication ____________ ASSIGNMENT FOR VALUE RECEIVED the undersigned registered owner thereof hereby sells , assigns and transfers unto___________________________________________________________________ the within bond and all rights thereunder and hereby irrevocably constitutes and appoints _____________________________________________________________________________ attorney to register the transfer of said bond on the books kept for registration thereof , with full power of substitution in the premises PagePage pageNumber7306 July 9 , 2007 – 10 00 am Continued Dated ________________ ___________________________________ Assignor’s Signature Signature Guaranteed _______________________________ NOTICE The assignor’s signature to this assignment must correspond with the name of the registered owner as it appears upon the face of the within bond in every particular , without alteration or enlargement or any change whatever [ End of Bond Form ] Certificated Bonds issuable hereunder shall be in substantially the form of the Bonds registered in the name of the Securities Depository Nominee with such changes as are necessary to reflect the provisions of this resolution that are applicable to Certificated Bonds Section 7 The various maturities of the Bonds will be subject to redemption prior to their respective maturity as set forth herein or as otherwise designated by the County Manager or Director of Finance at the time of sale of the Bonds All or any of the maturities of the Bonds , as so designated by the County Manager or Director of Finance , may be nonredeemable prior to their stated maturity If any of the Bonds are to be redeemable before their stated maturity , the provisions set forth in the remainder of this Section 7 shall apply ; but such provisions shall be inapplicable if none of the Bonds are subject to redemption prior to their stated maturity The Bonds maturing prior to February 1 , 2018 will not be subject to redemption prior to maturity The Bonds maturing on February 1 , 2018 and thereafter will be redeemable , at the option of the County , from any moneys that may be made available for such purpose , either in whole or in part on any date not earlier than February 1 , 2017 , at a redemption price equal to 100 of the principal amount of the Bonds to be redeemed , together with interest accrued thereon to the date fixed for redemption , without premium If less than all of the Bonds of any one maturity shall be called for redemption then , subject to the sentence immediately following , the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot in such manner as the County in its discretion may determine ; provided , however , that the portion of any Bond to be redeemed shall be in the principal amount of 5,000 or some whole multiple thereof and that , in selecting Bonds for redemption , each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by 5,000 So long as a book - entry system is used for determining beneficial ownership of Bonds , if less than all of the Bonds of any one maturity shall be called for redemption , the Securities Depository shall determine by lot the amount of interest of each direct participant of the Securities Depository in the Bonds within such maturity to be redeemed If less than all of the Bonds stated to mature on different dates shall be called for redemption , the particular Bonds or portions thereof to be redeemed shall be called in such maturities and amounts of those maturities as shall be determined by the County Not more than 60 days nor less than 30 days before the redemption date of any Bonds to be redeemed , whether such redemption be in whole or in part , the County shall cause a notice of such redemption to be filed with the Bond Registrar and to be mailed , postage prepaid , to the registered owner of each Bond to be redeemed in whole or in part at the address of said owner appearing upon the registration books of the County ; provided , however , so long as a book - entry system is used for determining beneficial ownership of Bonds , such notice shall be given to the Securities Depository Nominee by certified or registered mail or by such other method as the County may determine to be necessary or advisable with the concurrence of the Securities Depository Failure to mail such notice or any defect therein as to any Bond or portion thereof shall not affect the validity of the redemption as to any Bond or portion thereof for which such notice was given as required hereby Each such notice shall set forth the date designated for redemption , the redemption price to be paid and the maturities of the Bonds to be redeemed In the event that Certificated Bonds are outstanding , each such notice to the registered owners thereof shall also set forth , if less than all of the Bonds of any maturity then outstanding shall be called for redemption , the distinctive numbers and letters , if any , of such Bonds to be redeemed and , in the case of any Bond to be redeemed in part only , the portion of the principal amount thereof to be redeemed If any Bond is to be redeemed in part only , the notice of redemption shall state also that on or after the redemption date , upon surrender of such Bond , a new Bond or Bonds in principal amount equal to the unredeemed portion of such Bond will be issued The County shall have the right to revoke any call of Bonds for redemption if , on or prior to the third 3rd business day preceding any date fixed for redemption of Bonds , the County gives written notice to the Bond Registrar and the registered owner of each Bond theretofore called for redemption that the County has elected to revoke its call of such Bonds for redemption If any Bonds or portions thereof , are to be redeemed , the Bond Registrar shall open a separate account for the sole benefit of the bondholders whose Bonds are being redeemed , which account may be maintained by the Bond Registrar or by an agent On or before the date fixed for redemption , moneys shall be deposited with the Bond Registrar in its capacity as such for deposit in such account to pay the principal of and the redemption premium , if any , on the Bonds or portions thereof called for redemption as well as the interest accruing thereon to the redemption date thereof On the date fixed for redemption , notice of such call for redemption having been given in the manner and under the conditions hereinabove provided and not revoked as hereinabove provided , the Bonds or portions thereof so called for redemption shall be due and payable from the moneys required to be deposited in such account at the redemption price provided therefor , plus accrued interest to such date If moneys sufficient to pay the redemption price of the Bonds or portions thereof to be redeemed , plus accrued interest thereon to the date fixed for redemption , are held by the Bond Registrar in such account in trust for the registered owners of Bonds or portions thereof to be redeemed , interest on the Bonds or portions thereof called for redemption shall cease to accrue , such Bonds or portions thereof shall cease to be entitled to any benefits or security under this resolution or to be deemed outstanding , and the registered owners of such Bonds or portions thereof shall have no rights in respect thereof except to receive payment of the redemption price thereof , plus accrued interest to the date of redemption If a portion of a Bond shall be selected for redemption , the registered owner thereof or his attorney or legal representative shall present and surrender such Bond to the Bond Registrar for payment of the principal amount thereof so called for redemption and the redemption premium , if any , on such principal amount , and the Bond Registrar shall authenticate and deliver to or upon the order of such registered owner or his legal representative , without charge therefor , for the unredeemed portion of the principal amount of the Bond so surrendered , a Bond or Bonds of the same maturity , of any denomination or denominations authorized by this resolution and bearing interest at the same rate Section 8 The provisions of this Section 8 relating to the exchange and transfer of Bonds are subject to the provisions for operation of the book - entry system provided in Section 4 of this resolution , including the immobilization of Bond certificates with a Securities Depository during the continuation of the book - entry system Bonds , upon surrender thereof at the office of the Bond Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar , may , at the option of the registered owner thereof , be exchanged for an equal aggregate principalPagePage pageNumber8307 July 9 , 2007 – 10 00 am Continued amount of Bonds of the same maturity , of any denomination or denominations authorized by this resolution and bearing interest at the same rate The transfer of any Bond may be registered only upon the registration books of the County upon the surrender thereof to the Bond Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar Upon any such registration of transfer , the Bond Registrar shall authenticate and deliver in exchange for such Bond a new Bond or Bonds , registered in the name of the transferee , of any denomination or denominations authorized by this resolution , in an aggregate principal amount equal to the unredeemed principal amount of such Bond so surrendered , of the same maturity and bearing interest at the same rate In all cases in which Bonds shall be exchanged or the transfer of Bonds shall be registered hereunder , the Bond Registrar shall authenticate and deliver at the earliest practicable time Bonds in accordance with the provisions of this resolution All Bonds surrendered in any such exchange or registration of transfer shall forthwith be cancelled by the Bond Registrar The County or the Bond Registrar may make a charge for every such exchange or registration of transfer of Bonds sufficient to reimburse it for shipping charges , out - of - pocket costs and any tax , fee or other governmental charge required to be paid with respect to such exchange or registration of transfer , but no other charge shall be made by the County or the Bond Registrar for exchanging or registering the transfer of Bonds under this resolution The Bond Registrar shall not be required to exchange or register the transfer of any Bond during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or of any Bond called for redemption in whole or in part pursuant to Section 7 of this resolution As to any Bond , the person in whose name the same shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes , and payment of or on account of the principal or redemption price of any such Bond and the interest on any such Bond shall be made only to or upon the order of the registered owner thereof or his legal representative All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond , including the redemption premium , if any , and interest thereon , to the extent of the sum or sums so paid The County shall appoint such registrars , transfer agents , depositaries or other agents as may be necessary for the registration , registration of transfer and exchange of Bonds within a reasonable time according to then current commercial standards and for the timely payment of principal , interest and any redemption premium with respect to the Bonds The County is to act as the initial registrar , transfer agent and paying agent for the Bonds collectively the “ Bond Registrar ” , subject to the right of the governing body of the County to appoint another Bond Registrar The Director of Finance or such other officer who shall from time to time perform the duties of finance officer within the meaning of North Carolina General Statutes , Section 159 - 24 , as it may be amended from time to time , or any successor statute , is hereby designated to act on behalf of the County in carrying out its responsibilities as Bond Registrar , subject to the right of the governing body of the County to designate another officer to act on its behalf , and as such shall keep at the office of the Director of Finance , currently at Johnston County Office Building , 207 E Johnston Street , Smithfield , North Carolina 27577 , the books of the County for the registration , registration of transfer , exchange and payment of the Bonds Section 9 The actions of the County Manager and the Director of Finance of the County in applying to the Local Government Commission of North Carolina to advertise and sell the Bonds are hereby approved , ratified and confirmed The Local Government Commission of North Carolina is hereby requested to ask for sealed bids for the Bonds by publishing notices and printing and distributing a Preliminary Official Statement and an Official Statement , including any supplement thereto , relating to the sale of the Bonds The Preliminary Official Statement , proposed to be dated on or about July 6 , 2007 , substantially in the form presented at this meeting , and an Official Statement , proposed to be dated on or about July 17 , 2007 , in substantially the form of the Preliminary Official Statement presented at this meeting , with such changes as are necessary to reflect the maturities , redemption provisions , interest rates and other pricing data of the Bonds , is hereby approved and the Chairman or Vice - Chairman of the Board , the County Manager and the Director of Finance , respectively , of the County are each hereby authorized to approve changes in such Preliminary Official Statement or Official Statement , to approve any supplement to such Preliminary Official Statement or Official Statement and to execute such Official Statement and any supplement to such Official Statement for and on behalf of the County Section 11 There may be printed on the reverse of each of any printed Bond the legal opinion of Helms Mulliss & Wicker , PLLC , bond counsel to the County , with respect to the validity of the Bonds and there may be printed immediately following such legal opinion a certificate bearing the manual or facsimile signature of the Chairman or Vice - Chairman of the Board of the County , said certificate to be in substantially the following form “ I HEREBY CERTIFY that the foregoing is a true and correct copy of the legal opinion on the bonds therein described which was manually signed by Helms Mulliss & Wicker , PLLC , Raleigh , North Carolina , and was dated as of the date of delivery of and payment for said bonds [ Manual or Facsimile Signature ] Chairman Vice - Chairman of the Board of Commissioners Johnston County , North Carolina ” Section 12 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 ” , and any related regulations and procedures in order to assure that interest paid on the Bonds will not be includable in the gross income of the owners thereof for purposes of federal income taxation , except to the extent that the County obtains an opinion of bond counsel to the effect that noncompliance would not result in interest on the Bonds being includable in the gross income of the owners of the Bonds for purposes of federal income taxation As necessary or appropriate in connection with the issuance of the Bonds , all officers , employees and agents of the County are authorized and directed to provide certifications of material facts and estimates as to the reasonable expectations of the County as of the date s the Bonds are delivered and on behalf of the County to sign agreements or acknowledge instructions regarding compliance with the requirements of the Code and any related regulations and procedures relating to the Bonds Section 13 There are hereby created , as may be needed , appropriate funds and accounts of the County for the receipt and expenditure of the proceeds of the Bond and appropriate debt service funds and accounts of the County for the receipt and disbursement of debt service payments on the Bonds Section 14 The County hereby undertakes , for the benefit of the beneficial owners of the Bonds , to provide a by not later than seven months from the end of each fiscal year of the County , commencing with the fiscal year ending June 30 , 2007 , to each nationally recognized municipal securities information repository “ NRMSIR ” and to the state information depository for the State of North Carolina “ SID ” , if any , audited financial statements of the County for such fiscal year , if available , prepared in accordance with Section 159 - 34 of the General Statutes of North Carolina , as it may be amended from time to time , or any successor statute , or , if such audited financial statements of the County are not available by seven months from the end of suchPagePage pageNumber9308 July 9 , 2007 – 10 00 am Continued fiscal year , unaudited financial statements of the County for such fiscal year to be replaced subsequently by audited financial statements of the County to be delivered within 15 days after such audited financial statements become available for distribution ; b by not later than seven months from the end of each fiscal year of the County , commencing with the fiscal year ending June 30 , 2007 , to each NRMSIR , and to the SID , if any , i the financial and statistical data as of a date not earlier than the end of the preceding fiscal year for the type of information included under the heading “ The County - Debt Information and - Tax Information ” in the Official Statement relating to the Bonds excluding any information on overlapping or underlying units , and ii the combined budget of the County for the current fiscal year , to the extent such items are not included in the financial statements referred to in a above ; c in a timely manner , to each NRMSIR or to the Municipal Securities Rulemaking Board “ MSRB ” , and to the SID , if any , notice of any of the following events with respect to the Bonds , if material 1 principal and interest payment delinquencies ; 2 non - payment related defaults ; 3 unscheduled draws on debt service reserves reflecting financial difficulties ; 4 unscheduled draws on any credit enhancements reflecting financial difficulties ; 5 substitution of any credit or liquidity providers , or their failure to perform ; 6 adverse tax opinions or events affecting the tax - exempt status of the Bonds ; 7 modification to the rights of the beneficial owners of the Bonds ; 8 call of any of the Bonds for redemption ; 9 defeasance of any of the Bonds ; 10 release , substitution or sale of any property securing repayment of the Bonds ; and 11 rating changes ; and d in a timely manner , to each NRMSIR or to the MSRB , and to the SID , if any , notice of a failure of the County to provide required annual financial information described in a or b above on or before the date specified If the County fails to comply with the undertaking described above , any beneficial owner of the Bonds may take action to protect and enforce the rights of all beneficial owners with respect to such undertaking , including an action for specific performance ; provided , however , that failure to comply with such undertaking shall not be an event of default and shall not result in any acceleration of payment of the Bonds All actions shall be instituted , had and maintained in the manner provided in this paragraph for the benefit of all beneficial owners of the Bonds The County reserves the right to modify from time to time the information to be provided to the extent necessary or appropriate in the judgment of the County , provided that a any such modification may only be made in connection with a change in circumstances that arises from a change in legal requirements , change in law , or change in the identity , nature , or status of the County ; b the information to be provided , as modified , would have complied with the requirements of Rule 15c2 - 12 issued under the Securities Exchange Act of 1934 “ Rule 15c2 - 12 ” as of the date of the Official Statement relating to the Bonds , after taking into account any amendments or interpretations of Rule 15c2 - 12 , as well as any changes in circumstances ; and c any such modification does not materially impair the interests of the beneficial owners , as determined either by parties unaffiliated with the County such as bond counsel , or by the approving vote of the registered owners of a majority in principal amount of the Bonds pursuant to the terms of this bond resolution , as it may be amended from time to time , at the time of the amendment Any annual financial information containing modified operating data or financial information shall explain , in narrative form , the reasons for the modification and the impact of the change in the type of operating data or financial information being provided To the extent permitted by the US Securities and Exchange Commission , the County may discharge its undertaking described above by transmitting those documents or notices electronically to wwwdisclosureusaorg The provisions of this Section shall terminate upon payment , or provision having been made for payment in a manner consistent with Rule 15c2 - 12 , in full of the principal of and interest on all of the Bonds Section 15 The Chairman or Vice - Chairman of the Board , the Clerk to the Board , the County Manager , the Director of Finance and the other officers of the County are each hereby authorized and directed to execute and deliver for and on behalf of the County any and all financing statements , certificates , documents or other papers , including , without limitation , Letter s of Representations to Securities Depositories and agreements relating to investment of proceeds of the Bonds including repurchase agreements , and to perform any and all acts they may deem necessary or appropriate in order to carry out the intent of this resolution and the matters herein authorized Section 16 This resolution shall take effect upon its passage Upon motion of Commissioner Jeffrey P Carver , seconded by Commissioner W Ray Woodall , the foregoing resolution entitled “ RESOLUTION PROVIDING FOR THE ISSUANCE OF UP TO 52,600,000 GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS , SERIES 2007 ” was passed by the following vote Ayes Commissioners Cookie Pope , Wade M Stewart , Allen L Mims , Jr , W Ray Woodall , Jeffrey P Carver , and Tony Braswell Noes None 7 Public Hearing – 10 15 am – Town of Selma East Anderson Revitalization Plan EARP Advertisement June 29 , 2007 The Smithfield Herald The Chairman opened the public hearing and called on Selma Town Manager Stan Farmer to address the Board Page0309 July 9 , 2007 – 10 00 am Continued Mr Farmer stated he had presented the East Anderson Revitalization Plan EARP to the Johnston County Board of Commissioners at the June 4 , 2007 meeting and had requested the County participate with the Town in this program Mr Farmer asked if the Board members had any further questions regarding the tax incentive program In response to a question from Commissioner Allen L Mims , Jr , Mr Farmer reported the EARP ordinance has no time limit ; however , it is proposed that each incentive agreement under the ordinance will be for a period of five years County Attorney Mark Payne noted as he understands the ordinance language , once all of the property in the EARP blighted area has been revitalized , then the program for that area would be completed Commissioner Mims inquired if any other towns in Johnston County would be establishing a similar program County Manager Rick Hester reported there may be a few other towns , but he did not anticipate all the municipalities participating There being no further comments , the Chairman closed the public hearing Upon a motion by Commissioner Tony Braswell , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Board agreed to participate with the Town of Selma in the East Anderson Revitalization Program and adopted the associated resolution , as follows RESOLUTION ADOPTING PARALLEL INCENTIVE GRANTS TO THE TOWN OF SELMA’S EAST ANDERSON REVITALIZATION PROGRAM WHEREAS , commercial and economic development are among the primary goals of the Johnston County Board of Commissioners ; and WHEREAS , the Town of Selma’s Council adopted an ordinance amendment on February 22 , 2007 amending the Town of Selma Code of Ordinance by adding Chapter 10 , Article IV , East Anderson Revitalization Program “ EARP ” which allows for the creation of incentive grants for the revitalization and development of the designated area which includes East Anderson Street to the eastern Town limits along Exit 98 of Interstate 95 ; and WHEREAS , the Town of Selma has requested Johnston County partner with the Town in providing parallel incentive grants from the County ; and WHEREAS , Johnston County has determined it is in the best interest of the citizens of Johnston County and the Town of Selma to adopt the policy of the Town of Selma’s EARP plan ; NOW , THEREFORE , BE IT RESOLVED that the Board of Commissioners of Johnston County , meeting in th regular session on the 9 day of July , 2007 , hereby adopt this resolution to provide parallel incentive grants pertaining to the designated properties outlined in the Town of Selma’s East Anderson Revitalization Program This resolution shall be effective immediately 8 Call for Public Hearing – 2007 - 08 Secondary Road Construction Program Commissioner Allen L Mims , Jr moved the Board schedule a public hearing to be held August 6 , 2007 at 10 15 am or as soon thereafter as possible , to allow representatives from the North Carolina Department of Transportation to present the 2007 - 08 Secondary Road Construction Program Commissioner W Ray Woodall seconded the motion , which carried by unanimous vote 9 Call for Public Hearing – ROAP Grant Funds 2007 - 08 Upon a motion by Comm