May 2, 2005 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 122 May 2 , 2005 Continued Meeting of the Johnston County Board of Commissioners May 2 , 2005 The Johnston County Board of Commissioners met in regular session Monday , May 2 , 2005 , 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 The Chairman called the meeting to order and the following business was transacted 1 Minutes Approved Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner DeVan Barbour and carried by unanimous vote , the Board approved the minutes of the April 4 , 11 , 2005 board meetings as presented 2 Public Comments No one spoke at this time 3 Presentation by NCACC - Outstanding County Program Awards Jason King from the NC Association of County Commissioners acknowledged the Inspections Department and the Tax Department for receiving two of 14 Outstanding Program Awards presented by the Association to NC counties for 2004 The Outstanding Program Awards recognize innovative programs that address a county or multi - jurisdictional issue and or prevent a future problem from developing The Inspections Department won in the Public Education Participation category for their “ Building Inspections Listserv and Discussion Board ” , and the Tax Department in the General Government category for “ Share It Integration of Web Broadcasting of Building Permit Data ” Planning and Inspections Director Steven Finn , and Tax Administrator Pat Goddard thanked the Association for the awards , and emphasized the team work between departments that made the programs possible They also thanked the Technology Services Department for their role in the successful completion of both programs 4 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 Allie Drive , Sigmond Drive , Nell Court , Richard Drive , Johnson’s Pond Subdivision - Clayton Township Malcom Drive , Smith Creek Drive , Greenway Drive , Falling Creek Court , McNichol Court - Smith’s Creek Subdivision - Phases 2 & 3 Clayton 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 Jeffrey P Carver seconded the motion which carried by unanimous vote 5 Refund of Excise Tax Approved S Vann Sauls , Attorney at Law , has requested a refund of excise tax in the amount of 66 , which was paid in error to the Register of Deeds in December 2004 for a transfer of ownership deed previously recorded in December 2003 Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Jeffrey P Carver and carried by unanimous vote , the Board authorized the refund of excise tax in the amount of 66 to Attorney S Vann Sauls , for tax paid in error 6 Fireworks Displays Approved for Benson , Archer Lodge and Pine LevelPage123 May 2 , 2005 Continued Commissioner W Ray Woodall moved the Board approve the following requests for fireworks displays subject to NCGS 14 - 410 , 14 - 415 and Chapter 20 of the Standard Fire Prevention Code , along with necessary permits from the applicable Inspections Department , and authorize the Chairman to approve future similar requests Commissioner DeVan Barbour seconded the motion , which carried by unanimous vote th Benson Parks & Recreation Department - July 4 at McLamb Tart Road nd rd Archer Lodge Community Center - July 2 at Archer Lodge Recreation Park Rain date July 3 th Town of Pine Level - July 4 at Sam Godwin Recreation Park 7 Proclamation - Older Americans Month - May 2005 Upon a motion by Commissioner Tony Braswell , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Board adopted the following proclamation declaring May as Older Americans Month in Johnston County Johnston County Older Americans Month Proclamation WHEREAS , Johnston Countys older adults bring to their communities a wealth of experiences and a lifetime of knowledge ; WHEREAS , we recognize the important role that older adults play in their communities , their neighborhoods , their families ; WHEREAS , each May we celebrate our Older Americans across our county , our state , and the nation ; we give them our thanks , as we work to enhance the lives of our older citizens ; NOW THEREFORE , WE , THE JOHNSTON COUNTY BOARD OF COMMISSIONERS proclaim May 2005 to be Older Americans Month in Johnston County , North Carolina and encourage all Johnston County residents to honor our senior citizens , to recognize their contributions and support their families , their caregivers , and the organizations which provide opportunities for every citizen of our county and our state to age with independence and dignity nd Adopted this the 2 day of May , 2005 8 Public Hearing - 10 15 am ROAP Grant Funds Advertised April 22 , 2005 The Smithfield Herald The Chairman opened the public hearing and stated the purpose of the hearing is to allow public comment on the proposed application to the NC Department of Transportation for a Rural Operating Assistance Program ROAP grant for the 2005 - 06 fiscal year Donna Creech , Executive Director for the Council on Aging , offered to answer any questions that the Board had She stated that the grant is the same as in the past with the Commissioners providing a match for the Rural General Public Transportation Program’s portion This year the Council on Aging is proposing to add a one or two day per week commuter vehicle route between Clayton and Smithfield , and a route between Benson and Smithfield The routes would be paid for from the Rural General Public Transportation Program’s portion of the grant Commissioner Allen L Mims , Jr asked Ms Creech to explain how the organization makes the public aware of the programs the Council on Aging has to offer , and suggested they increase these efforts in the future Ms Creech stated that they plan to perform another marketing campaign during the next couple months In the past , they have used radio and newspaper ads , and speaking engagements as means of promotion She noted that unfortunately there are no signs at the predesignated bus stops because the buses may not run on a daily basis , or the route may change She pointed out , however , that there is currently a general public loop that runs between Smithfield and Selma , and also a loop that runs in Clayton In addition to the general public loops , anyone can call in regard to the other routes that run for Human Services , and if they are within 75 mile of the route they can ride for 3 a day The general ridership for these routes are usually disabled individuals , and low income citizens without personal transportation The Chairman closed the public hearing Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Jeffrey P Carver and carried by unanimous vote , the Board authorized the Council on Aging and the CTS Advisory Boards of Directors to apply for a ROAP grant for the 2005 - 06 fiscal year , as requested 9 Council on Aging - Request for County Assistance Approved Beverly Knight , Johnston County Council on Aging Chairperson , stated that her organization plans to purchase a new building to provide much needed office space Staff has exhausted the space in the current building ,Page124 May 2 , 2005 Continued and considerable funds would be required to renovate it Ms Knight reviewed with the Board the valuable services that the Council on Aging provides to the community , and requested the Board support the procurement of a building at a purchase price of 345,000 An additional 55,000 would be needed for maintenance issues , such as paving the parking lot Ms Knight stated the Council on Aging would assume the 55,000 expenditure , all maintenance of the building and liability issues Commissioner Jeffrey P Carver noted that the Board strives to meet the needs of the County’s youth , and should do the same for the aging population as well Other Board members agreed County Manager Rick Hester stated that if the Board chose to approve the request , the funds would be available in the non - departmental capital outlay fund for the current year’s budget Commissioner Jeffrey P Carver moved the Board purchase a building for 345,000 , 150,000 to come from the current year’s budget and the remaining 195,000 from the FY 05 - 06 budget , and lease the building to the Council on Aging for use Commissioner Allen L Mims , Jr seconded the motion , which carried by unanimous vote 10 Juvenile Crime Prevention Council - 2005 - 06 Budget Approved Judge Addie Rawls , JCPC Chairperson , presented the program funding proposals for FY 2005 - 06 The State Department of Juvenile Justice has allocated 258,117 to Johnston County to address the needs of youth at risk and provide sentencing alternatives for judges who deal with delinquent youth The Council met to review the programs that applied for funding The following are recommended for the upcoming year Restitution Community Service 70,000 Court Pyschologist 5,050 Johnston County Youth Services 165,000 Administrative Budget 5,000 Healthy Choices 13,067 258 , 117 Judge Rawls noted a 20 county match is required , and in the past , the committee has met the match by receiving 24,849 as county matching funds and the balance has been in - kind contributions , which included office space and personnel services This year the JCPC is requesting 30,000 for the upcoming fiscal year She requested the Board approve the County allocation of 30,000 , and also , approve the recommended allocation from the State in the amount of 258,117 Commissioner Wade M Stewart stated that the Board appreciates the work that JCPC does for at - risk youths in Johnston County He requested that in the future JCPC make the Board aware of the state of the youth more often than annually Judge Rawls agreed to the request from Commissioner Stewart Upon a motion by Commissioner Wade M Stewart , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Board approved a County allocation of 30,000 to the Juvenile Crime Prevention Council for its 2005 - 06 budget , and also approved the State’s allocation in the amount of 258,117 11 HAPP - Procurement Plan and Administrative Plan Approved Melody Gates , HAPP Director , requested the Board approve a new Procurement Plan required by Housing and Urban Development , and a new Administrative Plan outlining the policies and procedures of HAPP She stated that both plans had been reviewed by the County Attorney Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Jeffrey P Carver and carried by unanimous vote , the Board approved a new Procurement Plan required by Housing and Urban Development , and a new Administrative Plan outlining the policies and procedures of HAPP 12 Revised FY 2005 - 07 Work First Block Grant Plan Approved Earl Marrett , DSS Director , presented the revised Work First Plan , and explained that after the Board approved the draft plan on October 4 , 2004 , the plan was sent to the NC Department of Health and Human Services for review Two revisions were suggested 1 Insert Employment Security Memo of Understanding for the First Stop Program , and 2 Omit Caseload Reduction and Child Support Collection goals for Work First Goals because the State noPage125 May 2 , 2005 Continued longer monitors these areas He requested the Board approve the revised plan Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Wade M Stewart and carried by unanimous vote , the Board approved the revised Work First Plan for FY 05 - 07 13 Auditorium Use Policy and Lease Agreement Approved Ken Bateman , Cooperative Extension Director , appeared before the Board on behalf of a committee organized to study the Auditorium Use Policy and Lease Agreement for the new County Agriculture Center He stated that the committee reviewed over 20 other centers , and offered the following policy and lease agreement for adoption by the Board The Johnston County Agricultural Center Auditorium Use Policy The Johnston County Agricultural Center Auditorium is located at 2736 NC 210 Highway Smithfield , NC 27577 and is a part of the Johnston County Agricultural Center building The auditorium consist of 4,900 square feet of open space that can be subdivided into three areas one 2600 square foot area , one 992 square foot area , and one 744 square - foot areas Included with the auditorium are a catering kitchen and a stage area of 1000 square feet The auditorium will be rented as a single unit only unless special provisions are made The Johnston County Agricultural Center Auditorium exists for the purpose of supporting the educational needs and events of building tenants and departments of Johnston County government When not in use by these agencies , the auditorium may be rented by public service organizations , non - profit and civic organizations , churches and religious organizations , businesses and private citizens Facilities available for rent include the auditorium , auditorium lobby , catering kitchen and adjoining patio areas Rented facilities do not include halls , office space or meeting rooms that are a part of the area occupied by tenants of the building Rental Rates , charges and or fees have been established and approved by the Johnston County Board of Commissioners and may not be altered for any person or group There is no rental fee imposed for Departments of Johnston County government Rental reservations are determined by availability and the day of the week Mondays through Thursdays are reserved for use by building tenants and Departments of Johnston County Government The auditorium may be reserved during these time periods if it has not been reserved by one of these agencies and the reservation date is less than 120 days in the future The auditorium may be rented on Fridays through Sundays as far as 12 months in advance on a first come first served basis The Facility will be available for rent at 7 00 am and MUST BE VACATED no later than 11 00 pm Base rental use rates quoted include standard utilities and house lighting Custodian services , including pre - event set - up and post - event clean - up , will be charged separately based on the type of function and hours of use Technical assistance and security may be required , depending on the event see paragraph below Separate rates for these services shall be charged accordingly Use of In - House Technical Equipment In order to preserve and protect state - of - the - art technical equipment installed in The Johnston County Agricultural Center , only County approved technical personnel will be allowed to operate the system Total rental rates shall be comprised of the base use fee plus the personnel services and equipment fees applicable per each individual event Fees are required for rehearsals , performance events , large conferences , meetings , presentations and seminars Inquiries about rental procedure and rental rates may be made in person or by phone to the office of The Johnston County Agricultural Center Auditorium at 919 989 - 0000 An appointment will be made at your convenience so that you may fully tour the available facilities and discuss services desired A sample rental agreement will be made available for your inspection The rental contract is only confirmed upon signatures of the Lessee Licensee and approved representative of Johnston County Government Lessor [ Licensor ] , and full payment of the required deposit is made LEASE AGREEMENT This agreement , made and entered into the ______ day of __________ 20___ by and between Johnston County Government and The Johnston County Agricultural Center Auditorium hereinafter referred to as the Licensor , and ___________________________________ of hereinafter referred to as the Licensee 1 RENTAL RATES AND ASSOCIATED FEES Rental rates and fees for the use of the property shall be consistent with the rate schedule attached hereto as Exhibit A 2 RULES AND REGULATIONS OF CONDITIONS OF U SE It is mutually agreed that the Licensee and Licensor shall be bound by the rules and regulations of conditions of use in this document 3 CANCELLATION BY LICENSEE Should the Licensee cancel the contracted event in advance of thirty days prior to the scheduled event , a refund will be made minus a 50 charge for handling Cancellation must be made in writing , and if not made and received within thirty days of the scheduled event , Licensor reserves the right to require full payment of the total base rental fee 4 CANCELLATION BY LICENSOR Licensor shall have the right , power and authority to cancel this contract in part or in whole at any time before or after event starts , in writing or orally to the Licensee if , in the opinion of the official representative of the Licensor 1 the purpose of use is changed in any respect from the contracted rental agreement ; or 2 the Licensee is in default in the discretion of the Licensor , or 3 the Licensor has been affected by a natural cause or an emergency requiring the use of the facility for official duties of the Licensor PagePage pageNumber5126 May 2 , 2005 Continued 5 INDEMNITY Licensee covenants and agrees to defend , indemnify and save harmless the Licensor , its officers , agents and employees each severally and separately , from and against any and all liabilities , demands , claims , damages , losses , costs and expenses of whatsoever kind or nature including , without limitation , any and all direct and indirect costs of defense , made against , or incurred or suffered by , any such indemnities as a direct or indirect consequence of injury , sickness or disease , including death , to persons ; injury to , or destruction of property , including without limitation , the loss or use of property , or any other cause of action whatsoever arising out of , resulting from , or which would not have occurred or existed by this license agreement This indemnity shall include , without limitation , any and all liabilities , demands , claims , damages , losses , costs and expenses caused , or alleged to have been caused , by any negligence or any other act of indemnitor 6 INSURANCE If deemed necessary by Licensor , Licensee agrees to provide a public liability insurance policy naming Licensor and Licensee as insured parties and covering claims for injuries , death and or property damage arising out of use of the premises by Licensee in such amount and such terms Licensor may approve Said coverage shall coincide with Licensees use dates If Licensee fails to provide evidence of insurance coverage ten days prior to scheduled event , Licensor may cancel terms of this agreement whereby Licensee forfeits all rights to refund of any monies paid to Licensor 7 PERFORMANCE BOND If deemed necessary by Licensor , Licensee agrees to post a performance bond in an amount equal to the total contracted fee at least two weeks prior to the scheduled event under this contract , whether by certified check or by a duly accredited bonding company 8 LICENSEE PROPERTY Licensor will accept delivery of property addressed to Licensee only as a service to the Licensee , and Licensee will indemnify Licensor for any loss or damage to such property in the receipt , handling , care and custody of such property at any time Licensee shall further indemnify Licensor from any claims or costs related to claims from a third party for loss or damage to property on the premises of Licensor during the time covered by this agreement 9 AGREEMENT TO EXIT PREMISES Licensee agrees to exit licensed space no later than the term of this agreement Licensee further agrees to leave licensed space in condition equal to that found upon their arrival , except for what may be considered as standard janitorial service as deemed appropriate by Licensor Licensor has the right to stop performance when contracted time has expired 10 REMOVAL OF PROPERTY Licensee agrees that all materials pertinent to the event , which are not the possession of Licensor , will be removed from the premises before the Load - Out time has expired Licensor shall be authorized to remove at the expense of Licensee all materials remaining in licensed space at the termination of this agreement Licensee shall be responsible for payment of storage costs of such materials and Licensee agrees that Licensor shall in no way be responsible for loss , damage or claims against material moved or stored under this provision Licensee agrees that Licensor will have a first lien on such materials for payment of costs accrued for removal and storage No County Property may be removed for the Auditorium Patio area of the building 11 PAYMENT FOR DAMAGES Licensee agrees to pay costs of repair or replacement for any and all damages of whatever origin or nature , which may have occurred during the term of this agreement , to condition equal to that at the time this agreement went into effect Licensee shall only be responsible for damage or injury caused by Licensee , its agents , employees , clients , customers or invitees 12 COMPLIANCE WITH LAWS AND REGULATIONS Licensee will comply with all laws , ordinances and regulations adopted or established by federal , state or local government agencies or bodies , and by facility rules and regulations as provided by Licensor , and Licensee will require that its agents or employees likewise so comply No activities in violation of federal , state or local laws or ordinances shall be permitted on the premises , and it shall be the responsibility of the Licensee to enforce this provision No loud or indecent actions , conduct , language , pictures or portrayals shall be included in the activities or events presented by the Licensee on the premises , and nothing presented , used or sold that is contrary to law or prohibited by ordinance of the State of North Carolina or Johnston County Licensee agrees to abide by and be bound by the decision of the Licensor should any questions arise under this paragraph 13 CIVIC RIGHTS Licensee agrees not to discriminate against any employee or any applicant for employment because of race , age , religion , or national origin , and further agrees to likewise not discriminate for these same reasons against any persons relative to admission , services or privileges offered to or enjoyed by the general public 14 ADDITIONAL REGULATIONS AND CONDITIONS OF USE The Licensor reserves the right to impose any additional rules or regulations or to set special use arrangements , whether or not expressly provided herein , which may be necessary for the best interests of The Johnston County Agricultural Center , and such regulations shall be binding upon the Licensee 15 LICENSES AND PERMITS Licensee agrees to pay promptly all taxes , excise or license fees and to take out all licenses or permits for the use of the licensed space as required by federal , state or local laws and ordinances , and Licensee agrees to provide evidence of same to Licensor , or staff member , on call 16 CATERING The Licensor must approve all food service arrangements no later than seven days prior to the event Licensee agrees to notify Licensor of all catering arrangements Caterers must provide proof of licensure by a governing agency and liability insurance 17 PUBLIC SAFETY Licensee agrees that at all times he will conduct his activities with full regard to public safety , and will observe and abide by all applicable regulations and requests by duly authorized governmental agencies responsible for public safety and with Licensor to assure such safety All portions of the sidewalks , entries , doors , passages , vestibule , halls , corridors , and all ways of access to public utilities of the premises shall be kept unobstructed by the Licensee and shall not be used for any purpose except for ingress or egress to and from the premises by the Licensee Licensee agrees not to bring onto the premises any material , substance , equipment or object which is likely to constitute a hazard to the property thereon without the prior approval of the Licensor The Licensor shall have the right to refuse any such material substances , equipment or object to be brought onto the premises and the further right to require its immediate removal therefrom if found thereon PagePage pageNumber6127 May 2 , 2005 Continued 18 EVACUATION Should it become necessary in the judgment of the Licensor to evacuate the premises because of fire , bomb threat or for other reasons of public safety , the Licensee will retain possession of the premises for sufficient time to complete presentation of his activity without additional rental ; providing such time does not interfere with another building license If it is not possible to complete presentation of the activity , rental shall be forfeited , prorated or adjusted at the discretion of the management of said facility based upon the situation , and the Licensee hereby waives any claim for damages or compensation against the Licensor 19 TERMINATION OF EVENT Licensor retains the right to cause the termination of any performance in the interest of public safety and or when contracted End - Of - Show time has expired 20 COPYRIGHTS Licensee will assume all costs , liabilities and claims arising from the use of patented , trademarked , franchised , or copyright music , materials , devices , processes or dramatic rights used on or incorporated in the event Licensee agrees to indemnify , defend and hold harmless Licensor from any claims or costs , including legal fees , which might arise from question of use of any such material described above 21 NOTICE OF EVENT REQUIREMENTS Licensee shall provide Licensor at least fourteen days , or within other specified time frame as determined by the Licensor , before the first day of the agreement a full and detailed outline of all event requirements including technical , sound , lighting , stage , lobby and chair table requirements and all such other information as may be required by Licensor concerning the event covered in this document 22 UTILITY CONNECTIONS The proposed installation of electricity , gas and plumbing required for an event , beyond that already supplied by the facility , must be submitted to and approved in advance by Licensor All such connections and related work will be at the expense of the Licensee , including any related costs incurred by Licensor 23 ACT CONTRACT With regard to the proposed act , show or event , Licensee certifies and attests that he has a valid , properly executed and compatible contract with the performers whose services form the basis for his desire to rent the facility The Licensee may be required to provide a copy of such contract upon request of Licensor 24 PARKING All parking rights and privileges are under the control of and reserved by the Licensor A reasonable number of free parking spaces for event personnel will be provided in the large parking lot located on the west side of the Johnston County Agricultural Center 25 PARKING LOT EVENTS Rental of the parking area will be subject to the same rental rates as the auditorium 26 CONTROL OF FACILITY AND RIGHT OF ENTRY In renting the licensed space to the Licensee , it is understood that Licensor does not relinquish the right to control the management thereof , and to enforce all necessary laws , rules and regulations Duly authorized representatives of Licensor may enter the premises to be used and all the premises at any time and on any occasion without any restriction whatsoever All facilities including the area which is the subject of this permit , and all parking areas shall at all times be under the control and charge of the Licensor 27 NONEXCLUSIVE RIGHT Licensor shall retain the right to use and or license use of such portions of the premises as may not be covered by this agreement Licensor also retains the right to re - enter any part of the premises covered by this agreement should such part become vacant , and to determine that such unused portion may be offered for other use with receipts therefore to Licensor , with appropriate adjustment to Licensee rental rate 28 EXHIBIT ENTRANCE All articles , exhibits , displays shall be brought into or out of the facility only at such entrances and during such hours as designated by Licensor 29 CARE OF FACILITY Licensee shall not injure , nor mar , nor in any manner deface said premises or any equipment contained therein , and shall not cause or permit anything to be done whereby the said premises or equipment therein shall be in any manner injured , marred or defaced ; and will not drive nor permit to be driven nails , hooks , tacks , pins or screws into any part of said building or equipment contained therein and will not make or allow any alterations of any kind to said building or equipment contained therein Licensee will not attach anything to the walls or ceilings including , but not limited to , adhesives , adhesive backed decorations or posters Helium balloons are prohibited in the facility 30 PROGRAMS , NOVELTIES , CONCESSION ITEMS Licensee may be required to submit all souvenirs , novelties , compact discs , tapes , concession refreshment items , and or similar products or detailed information of such products in advance for approval Licensor shall designate locations within the facility where such items may be merchandised if approved 31 SIGNS AND POSTERS Licensee will not post nor allow to be posted any signs , cards or posters except on such display areas as Licensor may provide The use of such areas is a nonexclusive right All materials are subject to approval by representatives of Licensor Licensee will not cover or block from view any permanent signage installed as a part of The Johnston County Agricultural Center 32 LIVE ANIMALS Licensee shall not bring or permit to be brought any animals or birds , including animal performers and pets , into the facility except in the stage area for animals used in performance of the scheduled event Exception animals trained as assistance for handicapped persons 33 DANCING AND CLOGGING In order to preserve and protect the floors in The Johnston County Agricultural Center Auditorium and The Johnston County Agricultural Center , Licensor has the right to require a portable wooden dance floor All forms of tap or clog type dance shoes are not permitted to be worn in the lobby or other building areas at any time 34 OPERABLE PANEL PARTITIONS Licensee will not operate panel partitions Only qualified personnel provided by Licensor will be hired by Licensee to set - up or operate panel partitions as needed 35 SMOKING Smoking will not be allowed inside The Johnston County Agricultural Center Auditorium The Licensor will designate an area that can be used as a smoking area Licensee and Licensee guest are required to obey all laws and regulations related to the use of smoking materials Licensee will be responsible for the cost of repairs and clean - up that result during an event 36 ALCO HOLIC BEVERAGES The SALE of alcoholic beverages is not allowed on the premises of The JohnstonPagePage pageNumber7128 May 2 , 2005 Continued County Agricultural Center 37 SERVING OF ALCOHOL BEVERAGES A separate permit application will be required if the Licensee wishes to serve Beer , wine and or champagne at any event Any approved permit would limit this activity to non - traditional working hours and would be subject to separate proof of liability insurance and waiver of liability agreements , which would include language holding the Licensee responsible for any legal action associated with the serving of alcohol during an event In no case will the Licensor be held liable 38 POLICING EVENTS Licensor reserves the right to eject or cause to be ejected from the premises any intoxicated or any disorderly person or persons , and neither Licensor nor any of its officers , agents or employees shall be liable to Licensee for any damage that may be sustained by Licensee by the exercise of Licensor of such right 39 POLICE SECURITY Licensee agrees to reimburse Licensor the employment of a sufficient number of private security guards if deemed necessary by the Licensor to be necessary for maintaining order , protecting property of the Licensor and enforcing regulations and laws of the State of North Carolina Contracted officers shall take their direction from the official representation of the Licensor 40 SEATING CAPACITY Licensee will not permit to be sold or distributed tickets or passes in excess of the seating capacity of the facility as determined by the Licensor Licensor will have the right to retain a certain number of seats as backup for problem seat locations , technical requirements or other reasons Licensor deems necessary For those events without ticket sales and with open admission , Licensor will have the right to determine when the maximum number of persons has been admitted in accord with free and safe movement Licensor shall receive , without charge , up to 10 tickets to ticketed events 41 ANNOUNCEMENTS Licensor reserves the right to make announcements prior to performance or during intermission , which would relate briefly to future attractions Licensor is also entitled to make such announcements as Licensor may deem necessary at any time in the interest of public safety Licensee agrees that it will cooperate and will cause its agents and performers to cooperate with the delivery of such announcements for public safety , included but not limited to announcements to require patrons to return to their seats 42 SEVERABILITY If any portion of this agreement is found in violation of the laws or public policy of the State of North Carolina and thus invalid or unenforceable , all other provisions shall nevertheless continue in full force and effect No illegal activity is permitted in or around The Johnston County Agricultural Center 43 NON - ASSIGNMENT Licensee can not assign , transfer or subject this agreement to another organization , affiliate or party thereof not responsible for payment in this agreement 44 TOTAL AGREEMENT All terms and conditions of this contract shall be binding upon the parties , their heirs , representatives , and assigns , and can not be waived by any oral representation or promise of any agent or other representative of the parties hereto unless the same be in writing as signed by the duly authorized agent or agents who executed this contract Such written document must be incorporated by specific reference herein as part of the contract The rental contract must be returned along with the required security deposit within twenty days of its receipt or it becomes void 45 RIGHT OF REFUSAL TO RENT Johnston County reserves the right to refuse rental to any person or group for any event that , at the sole discretion of the County , is deemed to potentially impair the health , welfare and or public safety of the citizens of Johnston County , or the efficient operation of the auditorium RECOM MENDED RENTS AND FEES RENT Base daily fee for Rental of Auditorium 800 per day Hourly rent 100 hour minimum of 3 hours FEES FOR EXTRA SERVICES Custodian - includes set - up , take - down and cleanup hourly rate to be determined by Cleaning Company on contractual basis The County will contract with a cleaning company and personnel from that company will be at the facility at all times during rental usage Equipment Technician From County Approved List 35 per hour Security if required by auditorium management Determined by approved security list - contract basis RENTAL DEPOSIT AND FINAL PAYMENT At the time of the lease , one - half ½ of the base rental fee will be required The final payment , including all fees for outside services , will be due no later than 14 days prior to use of facility This time - frame may be adjusted at the discretion of auditorium management If an event is cancelled 30 days prior to the event , the deposit will be refunded minus a 50 charge for handling No refunds for cancellation will be given within 30 days of the event DEPOSIT AGAINST DAMAGES At the time of the lease , Lessee is required to provide a certified check or money order in the amount of 400 against damages outside of normal wear and tear The deposit will be held until the event is over and returned to the Lessee within 5 business days following the event if no damages are discovered Commissioner Allen L Mims , Jr questioned the policy in regards to use of the parking lot Mr Bateman noted that the policy took into consideration such events as car shows that would require the use of the parking lot , and the use of the building as well PagePage pageNumber8129 May 2 , 2005 Continued In response to additional questions from Commissioner Mims , Mr Bateman stated the committee looked at the rates for the Clayton Center , Benson Auditorium , private facilities in the County and other government facilities He noted the committee recommends the County hire an auditorium director , and in discussion , agreed that at present this could be a half - time position Commissioner Tony Braswell expressed concern that liability issues are thoroughly addressed before the leasing begins County Attorney Mark Payne stated that , in his opinion , the proposed contract provides adequate protection from liability for the County He noted that requiring insurance and other protective measures did not increase that liability Upon a motion by Commissioner DeVan Barbour , seconded by Commissioner Tony Braswell and carried by unanimous vote , the Board approved the above outlined Auditorium Use Policy and Lease Agreement 14 Modifications to Fire District Descriptions Approved Dewayne West , Emergency Services Director , requested the Board approve modifications to the descriptions for the remaining 23 fire districts listed below The Board approved the same modification for the Wilson’s Mills district on February 7 , 2005 He explained the proposed modifications would attach an additional line at the bottom of each description to reflect that the description is for their insurance district as well , “ This description establishes the boundaries for the “ x ” Insurance Fire District ” 50 - 210 Six Mile District Antioch - O’Neals Six Mile District Archer Lodge Six Mile District Bethany Six Mile District Benson - Banner Five Mile District Clayton - Claytex Six Mile District Beulah Six Mile District Blackmon’s Crossroads Six Mile District Thanksgiving Five Mile District Elevation Six Mile District Selma - Selma Rural Five Mile District Corinth Holder Five Mile District Meadow Six Mile District Cleveland - McLemore Six Mile District Four Oaks - Wynn Six Mile District Micro Five Mile District Pine Level - PI LE Five Mile District Strickland’s Xrds Six Mile District Brogden Six Mile District Princeton - Boon Hill Six Mile District West Johnston Five Mile District Bentonville Six Mile District Smithfield - Smithfield Rural Six Mile District Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner DeVan Barbour and carried by unanimous vote , the Board approved modifications attaching an additional line at the bottom of each fire district description to reflect that the description is for their insurance district as well , for the 23 fire districts listed Mr West introduced Harold Henrich , the new Fire Marshal for the County Former Fire Marshal Paul Whitehurst has taken a similar position with the Town of Smithfield 15 Resolution Authorizing Issuance & Sale of G O Water Bonds for Elevation Water District Approved 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 Elevation Water District Board nd Commissioner Allen L Mims , Jr questioned if the proposed annexation , also on the May 2 agenda , would affect the district’s financial feasibility Tim Broome , Public Utilities Director , responded that the proposed annexation would not affect the issuance and sale of the general obligation water bonds for the Elevation Water District Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Elevation Water District Board adopted the following resolution authorizing the issuance and sale of Bond Anticipation Notes for the Elevation Water District RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION WATER BONDS , SERIES 2005A IN THE AGGREGATE PRINCIPAL AMOUNT OF 3,375,000 AND GENERAL OBLIGATION WATER BONDS , SERIES 2005B IN THE AGGREGATE PRINCIPAL AMOUNT OF 800,000 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 Elevation Water District of Johnston County the District on November 4 , 2002 , and approved by a majority of the qualified voters of the District voting thereon at a referendum held on January 21 , 2003 ; and WHEREAS , the Board desires to provide for the issuance of 3,375,000 General Obligation Water Bonds , Series 2005A the Series 2005A Bonds and 800,000 General Obligation Water Bonds , Series 2005B the Series 2005B Bonds the Series 2005A Bonds and the Series 2005B Bonds collectively , the Bonds to refund 4,175,000 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 Elevation Water District of Johnston County , meeting in regular session in Smithfield , North Carolina , on May 2 , 2005 , does the following PagePage pageNumber9130 May 2 , 2005 Continued BE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR JOHNSTON COUNTY , ACTING AS THE GOVERNING BODY OF THE ELEVATION WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA 1 The District shall issue its general obligation water bonds in an aggregate principal amount of 4,175,000 pursuant to and in accordance with the Bond Order entitled BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS OF THE ELEVATION WATER DISTRICT IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF 7,000,000 FOR THE PURPOSE OF FINANCING , IN PART , THE ACQUISITION , CONSTRUCTION AND EQUIPPING OF A WATER SYSTEM IN THE DISTRICT 2 The Bonds will be designated General Obligation Water Bonds and shall be dated May 23 , 2005 The Series 2005A Bonds shall mature in annual installments on June 1 in years and amounts as follows Year Amount Year Amount Year Amount 2007 38,000 2020 65,000 2033 112,000 2008 39,000 2021 68,000 2034 116,000 2009 41,000 2022 70,000 2035 121,000 2010 43,000 2023 73,000 2036 126,000 2011 45,000 2024 77,000 2037 132,000 2012 46,000 2025 80,000 2038 137,000 2013 48,000 2026 83,000 2039 143,000 2014 50,000 2027 87,000 2040 149,000 2015 53,000 2028 90,000 2041 152,000 2016 55,000 2029 94,000 2042 152,000 2017 57,000 2030 98,000 2043 152,000 2018 60,000 2031 102,000 2044 152,000 2019 62,000 2032 107,000 The Series 2005B Bonds shall mature in annual installments on June 1 in years and amounts as follows Year Amount Year Amount Year Amount 2007 9,000 2020 15,000 2033 26,000 2008 9,000 2021 16,000 2034 28,000 2009 10,000 2022 17,000 2035 28,000 2010 10,000 2023 17,000 2036 30,000 2011 11,000 2024 18,000 2037 31,000 2012 11,000 2025 19,000 2038 32,000 2013 12,000 2026 20,000 2039 34,000 2014 12,000 2027 21,000 2040 35,000 2015 13,000 2028 22,000 2041 36,000 2016 13,000 2029 22,000 2042 36,000 2017 14,000 2030 23,000 2043 36,000 2018 14,000 2031 24,000 2044 36,000 2019 15,000 2032 25,000 The Bonds shall bear interest at a rate of 425 payable on June 1 , 2005 , 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 , 2016 are not subject to optional redemption , and Bonds maturing on or after June 1 , 2016 , are subject to redemption , at the option of the District , at any time on or after June 1 , 2015 , 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 2005A Bonds shall be in substantially the following form , the terms and requirements of which are incorporated herein by reference REGISTERED REGISTERED No R - ___ 3,375,000 UNITED STATES OF AMERICAPage0131 May 2 , 2005 Continued STATE OF NORTH CAROLINA JOHNSTON COUNTY , NORTH CAROLINA ACTING AS THE GOVERNING BODY OF THE ELEVATION WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA Water Bond , Series 2005A The Elevation 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 THREE MILLION THREE HUNDRED SEVENTY - FIVE THOUSAND AND NO 100 DOLLARS 3,375,000 on the first day of June in installments as follows Year Amount Year Amount Year Amount 2007 38,000 2020 65,000 2033 112,000 2008 39,000 2021 68,000 2034 116,000 2009 41,000 2022 70,000 2035 121,000 2010 43,000 2023 73,000 2036 126,000 2011 45,000 2024 77,000 2037 132,000 2012 46,000 2025 80,000 2038 137,000 2013 48,000 2026 83,000 2039 143,000 2014 50,000 2027 87,000 2040 149,000 2015 53,000 2028 90,000 2041 152,000 2016 55,000 2029 94,000 2042 152,000 2017 57,000 2030 98,000 2043 152,000 2018 60,000 2031 102,000 2044 152,000 2019 62,000 2032 107,000 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America , and to pay interest on the balance of said principal sum from time to time remaining unpaid , in like coin or currency , from the date hereof at the rate of 425 per annum , while held by the original payee , on June 1 , 2005 , 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 November 4 , 2002 , 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 January 21 , 2003 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 , 2016 , it is not subject to redemption at the option of the District , and b if this bond matures on or after June 1 , 2016 , it is subject to redemption at the option of the District , at any time on or after June 1 , 2015 , 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 May 23 , 2005 Page1132 May 2 , 2005 Continued ELEVATION WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA By ______________________________________ Chairman SEAL ATTEST ________________ Clerk to the Board of Commissioners Date Authenticated ASSIGNMENT FOR VALUE RECEIVED the Payee named in the within bond hereby sell s , assign s and transfer s said bond unto Please print or type name and address , including postal zip code , of Transferee PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE Date The issue hereof has been approved under the provisions of The Local Government Bond Act of North Carolina By Janice T Burke , Secretary Local Government Commission The Series 2005B Bonds shall be in substantially the following form , the terms and requirements of which are incorporated herein by reference REGISTERED REGISTERED No R - ___ 800,000 UNITED STATES OF AMERICA STATE OF NORTH CAROLINA JOHNSTON COUNTY , NORTH CAROLINA ACTING AS THE GOVERNING BODY OF THE ELEVATION WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA Water Bond , Series 2005B The Elevation 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 EIGHT HUNDRED THOUSAND AND NO 100 DOLLARS 800,000 on the first day of June in installments as follows Year Amount Year Amount Year Amount 2007 9,000 2020 15,000 2033 26,000 2008 9,000 2021 16,000 2034 28,000 2009 10,000 2022 17,000 2035 28,000 2010 10,000 2023 17,000 2036 30,000 2011 11,000 2024 18,000 2037 31,000 2012 11,000 2025 19,000 2038 32,000 2013 12,000 2026 20,000 2039 34,000 2014 12,000 2027 21,000 2040 35,000 2015 13,000 2028 22,000 2041 36,000 2016 13,000 2029 22,000 2042 36,000 2017 14,000 2030 23,000 2043 36,000 2018 14,000 2031 24,000 2044 36,000 2019 15,000 2032 25,000 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of debts due the United States of America , and to pay interest on the balance of said principal sum from time to time remaining unpaid , in like coin or currency , from the date hereof at the rate of 425 per annum , while held by the original payee , on June 1 , 2005 , 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 November 4 , 2002 , 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 January 21 , 2003 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 Page2133 May 2 , 2005 Continued 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 , 2016 , it is not subject to redemption at the option of the District , and b if this bond matures on or after June 1 , 2016 , it is subject to redemption at the option of the District , at any time on or after June 1 , 2015 , 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 May 23 , 2005 ELEVATION WATER DISTRICT OF JOHNSTON COUNTY , NORTH CAROLINA By ______________________________________ Chairman SEAL ATTEST ______________________________ Clerk to the Board of Commissioners Date Authenticated ASSIGNMENT FOR VALUE RECEIVED the Payee named in the within bond hereby sell s , assign s and transfer s said bond unto Please print or type name and address , including postal zip code , of Transferee PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE Date The issue hereof has been approved under the provisions of The Local Government Bond Act of North Carolina By Janice T Burke , Secretary Local Government Commission 6 The full faith and credit and taxing power of the District are hereby irrevocably pledged for the payment of principal of and interest on the Bonds Unless other funds are lawfully available and appropriated for timely payment of the Bonds , the Board shall levy and collect taxes and raise other revenues for payment of the principal of and interest on the Bonds , as the same become due and payable 7 The District shall maintain registration books for the registration of the Bonds If no qualified securities depository is the registered owner of the Bonds , upon surrender of any bonds at the office of the District , together with an assignment fully executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the District , the District shall execute and shall authenticate and deliver in exchange , a new bond or bonds having an equal aggregate principal amount , in authorized denominations , of the same form and maturity , bearing interest at the same rate , and registered in names as requested by the then registered owner or his duly authorized attorney or legal representative Any such exchange shall be at the expense of the District , except that the District may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto The District shall treat the registered owner as the person exclusively entitled to payment of principal and interest and the exercise of all other rights and powers of the owner , except that interest payments shall be made to the person shown as owner on the registration books on the fifteenth day of the month preceding each interest payment date 8 The LGC is hereby requested to sell such Water Bonds to the United States of America by private sale on May 23 , 2005 9 The Board covenants on behalf of the District that so long as any of the installments of principal and interest on the Bonds are outstanding and unpaid , the District shall not take or omit to take any action the taking or omission of which will cause the Bonds to be arbitrage bonds within the meaning of Section 148 of the Internal Revenue Code of 1986 , as amended the Code , or otherwise cause interest on the Bonds to be includable in the gross income of the holders thereof 10 The Board hereby covenants that it will not permit the gross proceeds of the Bonds to be used in any manner that would result in either a 5 or more of such proceeds being considered as having been used directly or indirectly in any trade or business carried on by any person other than a governmental unit as provided in Section 141 b of the Code , b 5 Page3134 May 2 , 2005 Continued of s