June 6, 2005 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 156 Meeting of the Johnston County Board of Commissioners June 6 , 2005 The Johnston County Board of Commissioners met in regular session Monday , June 6 , 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 Jeffrey P Carver and carried by unanimous vote , the Board approved the minutes of the April 12 , 18 , 26 , 2005 and May 2 , 9 , 2005 board meetings as presented 2 Public Comments A Request to Amend Residential Sewer Service Policy Ovalee Parker , 88 Sandy Road , Four Oaks , requested the Board consider an amendment to the Countys Residential Sewer Service Policy to allow property owners with new residences to tie on to county maintained sewage lines in circumstances where the property will not perk The Board took the request under th advisement , and agreed to discuss at the June 13 Board meeting B Request to Purchase Property Adjacent to the Airport Steve Yauch , 189 Townsend Drive , Clayton , stated he has been negotiating with the Johnston County Airport Authority , on behalf of a prospective business , to purchase a piece of property adjacent to the airport He emphasized deadlines imposed by his clients , and requested the Board’s support to move the process along to ensure the prospective business will locate in Johnston County Linwood Parker , Chairman of the Economic Development Board , noted the property is located in the Economic Development District , and stressed the importance to use the property to create additional jobs for Johnston County citizens Michael de Sherbinin , Economic Development Director , stated he had been approached by Mr Yauch to help negotiate a price for the property Mr Yauch has been pursuing the purchase of the property for 12 months Numerous discussions have resulted in two perceptions of fair prices , Mr Yauch’s offer of 18,700 per acre , and the Airport’s request for 30,000 per acre Mr de Sherbinin noted the property does not have th water , sewer , or road access Mr Yauch’s deadline is Friday , June 10 to present a plan of action to his clients Chairman Pope recommended Mr Yauch , Commissioner Wade M Stewart , Commissioner Allen L Mims , Jr , County Manager Rick Hester , Economic Development Director Michael de Sherbinin and the Airport Authority meet this week to further discuss the matter C NC Martial Arts Team Head Coach Addresses the Board Dr James Parker , Head Coach for the NC Martial Arts Team , informed the Board that North Carolina’s Martial Arts Team is located in Johnston County He requested support to have a sign set up in the team’s honor when entering the County The team has earned numerous state and world titles , and Dr Parker would like to raise public support for the team’s hard work and accomplishments Chairman Pope suggested Dr Parker speak with the Department of Tourism regarding a temporary sign to honor the team Page157 June 6 , 2005 Continued 3 Emergency Services Employee Recognized County Manager Rick Hester recognized Patrick Cogdell of the Emergency Services Department for receiving the Eatman - Edwards Award of Excellence for overall achievement in EMS The Board congratulated Mr Cogdell on receiving this prestigious award 4 Department of Transportation - Additions to System Approved 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 Linville Lane & River Ridge Way , Mount Pleasant Subdivision - Pleasant Grove Township Clearwater Drive , Clearwater Subdivision - Wilson Mills 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 Wade M Stewart seconded the motion which carried by unanimous vote 5 Department of Transportation - Abandonment of Critcher Farm Lane Approved The Board reviewed a petition presented by the North Carolina Department of Transportation requesting the following section of road , 06 miles , in the subject subdivision be abandoned from the State Secondary System for maintenance , for the purpose of the extension of Critcher Farm Lane into Phase Two Critcher Farm Lane , Critcher Farm Subdivision - Phase 1 - Elevation Township Commissioner W Ray Woodall moved the Board concur with the NC Department of Transportation’s request to abandon the above listed road from the State Maintained System Commissioner Tony Braswell seconded the motion which carried by unanimous vote 6 Local Government Mutual Aid Agreement Approved Kim Robertson , Emergency Services Assistant Director , requested the Board approve a Local Government Mutual Aid and Assistance Agreement between the County and the ten municipalities The agreement would allow the County and the ten municipalities to assist each other , with or without a State declaration , in times of emergencies She noted the agreement would assist the County Emergency Services Department in the accreditation process that staff is currently working on Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Jeffrey P Carver and carried by unanimous vote , the Board approved the following Local Government Mutual Aid and Assistance Agreement between the County and the ten municipalities LOCAL GOVERNMENT MUTUAL AID AND ASSISTANCE AGREEMENT THIS AGREEMENT IS ENTERED INTO BETWEEN JOHNSTON COUNTY NORTH CAROLINA AND BY EACH OF THE ENTITIES THAT EXECUTES AND ADOPTS THE UNDERSTANDINGS , COMMITMENTS , TERMS , AND CONDITIONS CONTAINED HEREIN WHEREAS , Johnston County is geographically vulnerable to a variety of emergency events , both natural and technological ; WHEREAS , the County recognizes the importance of the concept of coordination between local governments ; WHEREAS , under Chapter 166A and other chapters of the North Carolina General Statutes , entities entering into mutual aid and assistance agreements may include provisions for the furnishing and exchanging of supplies , equipment , facilities , personnel and services ; and WHEREAS , the entities which have chosen to become signatories to this Agreement wish to provide mutual aid and assistance amongst one another at the appropriate times ; THEREFORE , pursuant to GS 166A - 10 b , these entities agree to enter into this Agreement for reciprocalPage158 June 6 , 2005 Continued aid and assistance , with this Agreement embodying the understandings , commitments , terms , and conditions for said aid and assistance , as follows Section I DEFINITIONS Agreement means this document , the Local Government Mutual Aid and Assistance Agreement Aid and assistance includes personnel , equipment , facilities , services , supplies , and other resources Authorized Representative means a partys employee who has been authorized , in writing by that party , to request , to offer , or to otherwise provide assistance under the terms of this Agreement The list of Authorized Representatives for each party executing this Agreement shall be attached to the executed copy of this Agreement In the event of a change in personnel , unless otherwise notified the presumption will be that the successor to that position will be the authorized representative Local Agency means a county or municipal agency charged with coordination of all emergency management activities for its geographical limits pursuant to GS 166A - 7 Party means a governmental entity which has adopted and executed this Agreement Provider means the party which has received a request to furnish aid and assistance from another party in need the Recipient Recipient means the party setting forth a request for aid and assistance to another party the Provider Section II INITIAL RECOGNITION OF PRINCIPLE BY ALL PARTIES ; AGREEMENT PROVIDES NO RIGHT OF ACTION FOR THIRD PARTIES As this is a reciprocal contract , it is recognized that any party to this Agreement may be requested by another party to be a Provider It is mutually understood that each partys foremost responsibility is to its own citizens The provisions of this Agreement shall not be construed to impose an unconditional obligation on any party to this Agreement to provide aid and assistance pursuant to a request from another party Accordingly , when aid and assistance have been requested , a party may in good faith withhold the resources necessary to provide reasonable and adequate protection for its own community , by deeming itself unavailable to respond and so informing the party setting forth the request Section III PROCEDURES FOR REQUESTING ASSISTANCE Mutual aid and assistance shall not be requested unless the resources available within the stricken area are deemed inadequate by Recipient When a Recipient involved in a state of emergency becomes affected to the extent it deems its resources inadequate , it may request mutual aid and assistance by communicating the request to Provider , indicating the request is made pursuant to this mutual aid agreement The request shall be followed as soon as practicable by a written confirmation of that request , including the transmission of a proclamation of local state of emergency under GS 166A - 8 and Article 36 A of Chapter 14 of the NC General Statutes , and a completed form describing its projected needs in light of the disaster All requests for mutual aid and assistance shall be transmitted by the partys Authorized Representative or to the Coordinator of the Local Agency as set forth below REQUESTS ROUTED THROUGH THE RECIPIENTS LOCAL AGENCY Recipient may directly contact the Local Agency , in which case it shall provide the Local Agency with the information in paragraph B of this Section Section III The Local Agency shall then contact other parties on behalf of Recipient to coordinate the provision of mutual aid and assistance Recipient shall be responsible for the costs and expenses incurred by any Provider in providing aid and assistance pursuant to Section VII of this Agreement Section IV SUPERVISION AND CONTROL Provider shall designate supervisory personnel amongst its employees sent to render aid and assistance to Recipient As soon as practicable , Recipient shall assign work tasks to Providers supervisory personnel , and unless specifically instructed otherwise , Recipient shall have the responsibility for coordinating communications between Providers supervisory personnel and Recipient Recipient shall provide necessary credentials to Providers personnel authorizing them to operate on behalf of Recipient Section V REIMBURSEMENTS Except as otherwise provided below , it is understood that Recipient shall pay to Provider all documented costs and expenses incurred by Provider as a result of extending aid and assistance to Recipient The terms and conditions governing reimbursement for any assistance provided under this Agreement shall be in accordance with the following provisions , unless otherwise agreed in writing by Recipient and Provider Recipient shall be ultimately responsible for reimbursement of all eligible expenses Provider shall submit reimbursement documentation to Recipient on the forms shown in Appendix B A Personnel - During the period of assistance , Provider shall continue to pay its employees according to its then prevailing ordinances , rules , and regulations Recipient shall reimburse Provider for all direct and indirect payroll costs and expenses including travel expenses incurred during the period of assistance , including , but not limited to , employee retirement benefits as provided by Generally Accepted Accounting Principles GAAP However , as stated in Section IX of this Agreement , Recipient shall not be responsible for reimbursing any amounts paid or due as benefits to Providers personnel under the terms of the North Carolina Workers Compensation Act Chapter 97 of the North Carolina General Statutes Page159 June 6 , 2005 Continued For those instances in which costs are reimbursed by the Federal Emergency Management Agency FEMA , the FEMA - eligible direct costs shall be determined in accordance with 44 CFR 206228 B Equipment - Provider shall be reimbursed by Recipient for the use of its equipment during the period of assistance according to either a pre - established local or state hourly rate or according to the actual replacement , operation , and maintenance expenses incurred For those instances in which costs are reimbursed by the Federal Emergency Management Agency FEMA , the FEMA - eligible direct costs shall be determined in accordance with 44 CFR 206228 Provider shall pay for all repairs to its equipment as determined necessary by its on - site supervisor s to maintain such equipment in safe and operational condition At the request of Provider , fuels , miscellaneous supplies , and minor repairs may be provided by Recipient , if practical The total equipment charges to Recipient shall be reduced by the total value of the fuels , supplies , and repairs furnished by Recipient and by the amount of any insurance proceeds received by Provider C Materials And Supplies - Provider shall be reimbursed for all materials and supplies furnished by it and used or damaged during the period of assistance , except for the costs of equipment , fuel and maintenance materials , labor , and supplies , which shall be included in the equipment rate established in subsection B of this section Section VII , unless such damage is caused by gross negligence , willful and wanton misconduct , intentional misuse , or recklessness of Providers personnel Providers personnel shall use reasonable care under the circumstances in the operation and control of all materials and supplies used by them during the period of assistance The measure of reimbursement shall be determined in accordance with 44 CFR 206228 In the alternative , the parties may agree that Recipient will replace , with like kind and quality as determined by Provider , the materials and supplies used or damaged If such an agreement is made , it shall be reduced to writing D Record Keeping - Recipient personnel shall provide information , directions , and assistance for record keeping to Providers personnel Provider shall maintain records and submit invoices for reimbursement by Recipient E Payment ; Other Miscellaneous Matters as to Reimbursements - The reimbursable costs and expenses with an itemized notice shall be forwarded as soon as practicable after the costs and expenses are incurred , but not later than sixty 60 days following the period of assistance , unless the deadline for identifying damage is extended by both parties Recipient shall pay the bill or advise of any disputed items , not later than sixty 60 days following the billing date These time frames may be modified in writing by mutual agreement This shall not preclude Provider or Recipient from assuming or donating , in whole or in part , the costs and expenses associated with any loss , damage , or use of personnel , equipment , and resources provided to Recipient Section VI RIGHTS AND PRIVILEGES OF PROVIDERS EMPLOYEES Pursuant to GS 166A - 14 , whenever Providers employees are rendering aid and assistance pursuant to this Agreement , such employees shall retain the same powers , duties , immunities , and privileges they would ordinarily possess if performing their duties within the geographical limits of Provider Section VII PROVIDERS EMPLOYEES COVERED AT ALL TIMES BY PROVIDERS WORKERS COMPENSATION POLICY Recipient shall not be responsible for reimbursing any amounts paid or due as benefits to Providers employees under the terms of the North Carolina Workers Compensation Act , Chapter 97 of the General Statutes , due to personal injury or death occurring during the period of time such employees are engaged in the rendering of aid and assistance under this Agreement It is mutually understood that Recipient and Provider shall be responsible for payment of such workers compensation benefits only to their own respective employees Further , it is mutually understood that Provider will be entirely responsible for the payment of workers compensation benefits to its own respective employees pursuant to GS 97 - 51 Section VIII IMMUNITY Pursuant to GS 166A - 14 , all activities performed under this Agreement are hereby declared to be governmental functions Neither the parties to this Agreement , nor , except in cases of willful misconduct , gross negligence , or bad faith , their personnel complying with or reasonably attempting to comply with this Agreement or any ordinance , order , rule , or regulation enacted or promulgated pursuant to the provisions of this Agreement shall be liable for the death of or injury to persons , or for damage to property as a result of any such activity Section IX PARTIES MUTUALLY AGREE TO HOLD EACH OTHER HARMLESS FROM LIABILITY Each party as indemnitor agrees to protect , defend , indemnify , and hold the other party as indemnitee , and its officers , employees and agents , free and harmless from and against any and all losses , penalties , damages , assessments , costs , charges , professional fees , and other expenses or liabilities of every kind and arising out of or relating to any and all claims , liens , demands , obligations , actions , proceedings , or causes of action of every kind in connection with or arising out of indemnitors negligent acts , errors and or omissions Indemnitor further agrees to investigate , handle , respond to , provide defense for , and defend any such claims , etc at indemnitors sole expense and agrees to bear all other costs and expenses related thereto To the extent that immunity does not apply , each party shall bear the risk of its own actions , as it does with its day - to - day operations , and determine for itself what kinds of insurance , and in whatPagePage pageNumber5160 June 6 , 2005 Continued amounts , it should carry Each party understands and agrees that any insurance protection obtained shall in no way limit the responsibility to indemnify , keep , and save harmless the other parties to this Agreement Section X INITIAL DURATION OF AGREEMENT ; RENEWAL ; TERMINATION This Agreement shall be binding for not less than one 1 year from its effective date , unless terminated upon at least sixty 60 days advance written notice by a party as set forth below Thereafter , this Agreement shall continue to be binding upon the parties in subsequent years , unless canceled by written notification served personally or by registered mail upon the County Manager , which shall provide copies to all other parties The withdrawal shall not be effective until sixty 60 days after notice thereof has been sent by the County Manager to all other parties A partys withdrawal from this Agreement shall not affect a partys reimbursement obligations or any other liability or obligation under the terms of this Agreement incurred hereunder Once the withdrawal is effective , the withdrawing entity shall no longer be a party to this Agreement , but this Agreement shall continue to exist among the remaining parties Section XI SEVERABILITY EFFECT ON OTHER AGREEMENTS Should any clause , sentence , provision , paragraph , or other part of this Agreement be adjudged by any court of competent jurisdiction to be invalid , such judgment shall not affect , impair , or invalidate the remainder of this Agreement Each of the parties declares that it would have entered into this Agreement irrespective of the fact that any one or more of this Agreements clauses , sentences , provisions , paragraphs , or other parts have been so declared invalid Accordingly , it is the intention of the parties that the remaining portions of this Agreement shall remain in full force and effect without regard to the clause s , sentence s , provision s , paragraph s , or other part s invalidated In the event that parties to this Agreement have entered into other mutual aid and assistance contracts , for example pursuant to Chapter 160A of the North Carolina General Statutes , those parties agree that to the extent a request for mutual assistance is made pursuant to this agreement , those other mutual aid and assistance contracts are superseded by this Agreement Section XII EFFECTIVE DATE This Agreement shall take effect upon its approval by the entity seeking to become a signatory to this Agreement and upon proper execution hereof IN WITNESS WHEREOF , each of the parties have caused this Local Government Emergency Management Mutual Aid and Assistance Agreement to be duly executed in its name and behalf by its chief executive officer , who has signed accordingly with seals affixed and attested with concurrence of a majority of its governing board , as of the date set forth in this Agreement LOCAL GOVERNMENT MUTUAL AID AND ASSISTANCE AGREEMENT JOHNSTON COUNTY , NORTH CAROLINA TOWN OF BENSON TOWN OF CLAYTON TOWN OF FOUR OAKS TOWN OF KENLY TOWN OF MICRO TOWN OF PINE LEVEL TOWN OF PRINCETON TOWN OF SELMA TOWN OF SMITHFIELD TOWN OF WILSONS MILLS 7 Public Hearing - 10 15 am - Proposed FY 2005 - 2006 County Budget Advertised May 27 , 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 2005 - 06 County Budget County Manager Rick Hester formally presented the proposed budget to the Board and briefly reviewed the highlights of his recommendations He noted the proposed 140 million budget keeps the tax rate at 78 Mr Hester emphasized the budget not only estimates revenues and expenditures for the upcoming year , but also prioritizes the needs of Johnston County citizens and the County’s pursuit to deliver necessary services He stated , that in his opinion , the budget reflects the mission of the Johnston County Board of Commissioners , which reads “ to provide leadership and support , and to advocate actions for an effective County Government that seeks to enhance the quality of life for present and future generations of the people of Johnston County ”PagePage pageNumber6161 June 6 , 2005 Continued Mr Hester pointed out the proposed budget would provide new and additional supplemental current expense funding for the school system The County has been using a financial model put together by a citizen task force in the late 1990 s He noted the proposed budget includes a one - time infusion of 2 million for local current expense funding to accommodate the growth the school system continues to experience The proposed budget provides additional current expense funding for the community college as well In May , Johnston County citizens approved school and community college construction bonds The proposed budget provides for additional debt service to support the bonds , without increasing taxes Mr Hester noted that counties in NC are responsible for matching 55 of all Federal Medicaid dollars flowing into the County This will amount to approximately 6 million in match funds for Johnston County in the upcoming year He emphasized the push for State legislators to provide relief for NC counties with this endeavor Seventeen new positions were requested Mr Hester recommended four new positions for funding in the upcoming year two positions in the Sheriff’s Department , one Animal Control Director and one Zoning Inspector He also recommended an increase in the water service fee and septic tank fee Mr Hester thanked John Massey , Finance Director , for his assistance in the budget process , and Technology Services staff , Angie Smith , Kyle Richter and Ellen Beck , for their work on the final product Budget Meetings Scheduled th th The Board agreed to meet Thursday , June 9 at 7 00 pm , and Wednesday , June 15 at 6 00 pm to further discuss the proposed budget Public Hearing Comments Resumed Jackie Kozell , Interim Coordinator , requested the Board continue to fund and support Special Olympics She emphasized the impact of losing Dale Bender as Coordinator , and the experience that Ms Bender brought to the organization She noted the support that Special Olympics receives from various community groups , and urged the Commissioners to serve as a model of support as well Gail Garcia , 302 Barden Street , Princeton , stated that she is a parent of Special Olympics participant , and pointed out the program has afforded her daughter great opportunities to be involved in sports , stay active in the community and spend time with peers She requested the Board assist Special Olympics as much as possible Jill Carpenter , 605 Castleberry Road , Clayton , informed the Board that unfortunately this year Special Olympics - Johnston County not only lost Dale Bender as the local coordinator , but also lost their area coordinator and contact with Special Olympics - North Carolina as well She applauded Interim Coordinator Jackie Kozell for her efforts to keep the program running , and attempt to retain the quality and quantity of sports training offered to participants the past few years She pointed out that 600 athletes received training in Johnston County last year , and that Special Olympics parents and friends are ready to continue to assist with programs and fund - raisers in the upcoming year She requested the Board continue its support of Special Olympics in the future Patrick Harris , Smithfield Fire Department Chief , stated that several fire departments have requested adjustments to the rural fire taxes for their districts He questioned when the appropriate time would be to address the Board Chairman Cookie Pope suggested Mr Harris and other fire department representatives coordinate with th th the County Manager to attend one of the special budget meetings scheduled for June 9 and 15 Chairman Pope closed the public hearing 8 Public Hearing - 10 45 am - Proposed Annexation to Elevation Water District Advertised May 24 , 2005 The Smithfield HeraldPagePage pageNumber7162 June 6 , 2005 Continued Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Board recessed regular session to sit as the Elevation Water District Board The Chairman opened the public hearing and stated the purpose of the hearing is to allow public comment on the proposed extension of territory to the Elevation Water District to include specified properties on Old School Road in the Town of Four Oaks ETJ Sandy Mills , Utility Development Manager for the County , stated there are a few properties in the Four Oaks ETJ that are accessible to water lines in the Elevation Water District The property owners have requested annexation into the District and permission to access the County’s water line The Town of Four Oaks has provided written concurrence approving annexation of the area into the district She requested the Board adopt a resolution allowing the expansion of the boundaries of the Elevation Water District for the annexation of the specified properties into the district In response to a question from Commissioner Wade M Stewart , Public Utilities Director Tim Broome stated that the district has the financial resources to provide services to the area , and annexation into the district would definitely benefit the specified property owners There being no further comments , the Chairman closed the public hearing 9 Resolution Providing for the Expansion of the Boundaries of the Elevation Water District Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner Wade M Stewart and carried by unanimous vote , the Board adopted the following resolution RESOLUTION PROVIDING FOR EXPANSION OF THE BOUNDARIES OF THE ELEVATION WATER DISTRICT OF JOHNSTON COUNTY WHEREAS the Johnston County Board of Commissioners the Board at its regular meeting on May 8 , 2000 passed a resolution creating the Elevation Water District the District in accordance with N C General Statutes § 162A - 86 , et seq ; and WHEREAS , the Board has determined , after receiving petitions from residents of property lying near the District , that these parcels of land contiguous to the District may be annexed into the District ; and WHEREAS , pursuant to NC General Statutes § 162A - 871 , the Board has determined to extend the boundaries of the District to include the petitioned parcels ; WHEREAS the Board resolved to hold a public hearing with respect to such extensions on June 6 , 2005 , and directed that the appropriate representatives of the County take the necessary actions to properly notice such public hearing as provided by law ; and WHEREAS , pursuant to N C General Statutes Section 162A - 871 e a notice of public hearing was prepared stating the date , hour and place of the hearing and its subject and stating that the report containing a map of the District and the areas to be annexed were available for public inspection in the office of the Clerk to the Board , and that such annexation fit the requirements of § 162A - 871 ; and WHEREAS , pursuant to N C General Statutes § 162A - 871 e , the notice of public hearing was published once in newspapers that circulate in the proposed District , and pursuant to 162A - 871 b the County has received petitions for annexation signed by 100 of the real property owners in the areas to be annexed ; and WHEREAS , a public hearing was held at 10 45 am on June 6 , 2005 , in the Commissioners Room , Courthouse Annex , Smithfield , North Carolina at which time taxpayers and all other interested persons appeared and were heard concerning the question of expanding the boundaries of the Elevation Water District of Johnston County ; and WHEREAS , at such meeting the Board determined that it was appropriate to extend the boundaries of the District to include additional parcels of land ; and WHEREAS , the Board , following the public hearing finds that 1 The areas to be annexed are contiguous to the District , with at least one - eighth of the areas aggregate external boundary coincident with the existing boundary of the District ; 2 The residents of all the territories to be annexed into the District will benefit from the Districts annexation ; and 3 It is economically feasible to provide the proposed service or services in the annexed district without unreasonable or burdensome annual tax levies ; WHEREAS , the Board now desires to annex the territories described herein into the Elevation Water District of Johnston County ; NOW , THEREFORE , BE IT RESOLVED BY the Johnston County Board of Commissioners meeting in regular session at Smithfield , North Carolina , on June 6 , 2005 , do the following 1 It is hereby found that a The areas to be annexed are contiguous to the District , with at least one - eighth of the areasPagePage pageNumber8163 June 6 , 2005 Continued aggregate external boundary coincident with the existing boundary of the District ; b The residents of all the territories to be annexed into the District will benefit from the Districts annexation ; and c It is economically feasible to provide the proposed service or services in the annexed district without unreasonable or burdensome annual tax levies ; 2 The Elevation Water District of Johnston County is thereby revised as follows ELEVATION WATER DISTRICT REVISED BOUNDARY DESCRIPTION Beginning at the point of intersection of the southwestern corner of the McGees Crossroads Water District and the Harnett County line , said point being the northwest corner of the Antonio Garlindo Rios parcel ; thence generally easterly and southeasterly approximately 65,000 lf along the boundary of the McGees Crossroads Water District to the point of intersection with the southwestern corner of the Hopewell - Pisgah Water District ; thence easterly by southeasterly approximately 27,000 lf along the boundary of the Hopewell - Pisgah Water District to the extraterritorial jurisdiction boundary ETJ of the Town of Four Oaks ; thence generally approximately 25,000 lf along the west ETJ boundary of the Town of Four Oaks to a point approximately 500 ft north of the right - of - way of Parker Road SR 1159 ; thence easterly by northeasterly along a line parallel to and 500 lf northeast of the northern right - of - way of Parker Road approximately 5,000 lf to a point 560 lf north of the intersection of the southern right - of - way of Parker Road and the north right - of - way of I - 95 ; thence southeast approximately 1,200 lf to a point in the boundary of the Ingrams Township Water District , said point also lying in the southeastern right - of - way of I - 95 ; thence southwesterly approximately 20,000 lf along the boundary of Ingrams Township Water District to the boundary of the Meadow Water District ; thence approximately 9,800 lf southwest along the boundary of the Meadow Water District to the ETJ boundary of the Town of Benson ; thence generally north and northwesterly approximately 5,900 lf along the Town of Benson ETJ to a point which is 500 lf southeast of the centerline of US 301 ; thence northeasterly approximately 25,500 lf along a line 500 ft southeast and parallel to the centerline of US 301 to a point in the Town of Four Oaks ETJ ; thence northwest approximately 1,000 lf to a point 500 ft northeast of the centerline of US 301 ; thence approximately 18,200 lf southwest along a line 500 northwest and parallel to the centerline of US 301 to a point 500 ft northeast of the centerline of Raleigh Road SR 1330 ; thence northwest approximately 2,900 lf along a line 500 ft northeast and parallel to the centerline of Raleigh Road to a point 500 ft northwest of the intersection of Raleigh Road and Woodall Dairy Road SR 1356 ; thence west approximately 3,700 lf along a line 500 ft north and parallel to the centerline of Woodall Dairy Road to a point in the eastern boundary of Carrie Woods Subdivision ; thence south approximately 300 lf along the boundary of Carrie Woods Subdivision ; thence west approximately 1,400 lf along a line 200 ft north of and parallel to the centerline of Woodall Dairy Road to a point in the western boundary of Carrie Woods Subdivision ; thence north 300 ft along the western boundary of Carrie Woods Subdivision ; thence generally westerly by northwesterly approximately 5,000 lf along a line 500 ft north and parallel to the centerline of Woodall Dairy Road , crossing I - 40 , to a point 500 ft west of the centerline of Federal Road SR 1331 ; thence south approximately 950 lf and southwest approximately 3,000 lf along a line 500 ft west of and parallel to the centerline of Federal Road and NC 242 to a point that is 500 ft west of the centerline of NC 242 ; thence generally westerly approximately 3,800 lf along the northern boundary of Parcel No 01E08040A to the northwest corner of said parcel ; thence north approximately 1,500 lf along the eastern boundaries of Parcels No 01E08039A and No 01E08031B to the northeast corner of Parcel No 01E08031B ; thence west by southwest approximately 2,100 lf along the northern boundaries of Parcels No 01E08031B and No 01E08031C ; thence south approximately 200 lf along the boundary of Parcel No 01E08031C ; thence approximately 400 lf southwest along the south boundary of Parcel No 01E08028 to the eastern right - of - way of NC 50 ; thence southwest approximately 2,800 lf crossing the NC 50 right - of - way and following along the northwestern boundary of Parcels No 01E08030 and No 01E08029 to East Mingo Creek ; thence generally south by southwesterly along the centerline of East Mingo Creek approximately 3,800 lf to a point in the Town of Benson ETJ ; thence west approximately 300 lf , south by southwest approximately 3,400 lf , west by northwest approximately 1,600 lf and south approximately 1,400 lf along the Town of Benson ETJ to a point in the Harnett County line ; thence generally northwesterly along the Harnett County line approximately 53,000 lf to the point of beginning ; and including an area lying between I - 40 , NC 242 , and US 301 defined as follows beginning at a point at the intersection of the western right - of - way of I - 40 and the centerline of CSX Railroad ; thence generally north by northwest approximately 6,100 lf along the western right - of - way of I - 40 to a point 500 ft southeast of the centerline of NC 242 ; thence southeast and south along a line 500 ft southeast and south of the centerline of NC 242 approximately 7,100 lf to a point 500 ft south of the intersection of NC 242 and Railroad Road SR 1358 ; thence east and east by southeast approximately 3,700 lf along a line 500 ft south and southeast of the centerline of Railroad Road to the centerline of the CSX Railroad ; thence northeast approximately 1,500 lf along the centerline of the CSX Railroad to the point of beginning Boundary Descriptions for Additions to the Elevation Water District Area A Beginning at a point in the northern boundary of the Town of Benson Extraterritorial Jurisdiction Boundary ETJ , said point being 500 lf west of the centerline of NC 242 ; thence west , southwest , and west approximately 5,510 lf along the Town of Benson ETJ to a point in the centerline of a creek , said point being approximately 700 lf west of the centerline of NC 50 ; thence , approximately 6,400 lf south along the centerline of the creek , and generallyPagePage pageNumber9164 June 6 , 2005 Continued parallel to NC 50 to a point 530 lf north of the centerline of NC 27 ; thence west approximately 4,760 lf along a line parallel to and 530 lf north of the centerline of NC 27 to a point in the Harnett County line ; thence northwest approximately 1,700 lf along the Harnett County line to a point in the Town of Benson ETJ , said point also being in the original Elevation Water District boundary ; thence , north , east , north by northeast , northeast , south and east approximately 21,300 lf along the original Elevation Water District boundary to a point 500 lf west of the centerline of NC 242 ; thence , south along the original Elevation Water District boundary approximately 3,020 lf to the point of beginning Area B Beginning at the point of intersection of the western right - of - way of I - 40 and the centerline of CSX Railroad , said point being a corner in the original Elevation Water District boundary ; thence generally south approximately 2,480 lf along the western right - of - way of I - 40 to a point in the centerline of an un - named tributary of Hannah Creek ; thence generally west by northwest approximately 5,800 lf along the centerline of the creek crossing Tarheel Road SR 1168 and CSX Railroad to a point which is southeast of the intersection NC 242 and Railroad Road SR 1358 and 500 ft from the centerlines of both these roads , said point being also in the boundary of the original Elevation Water District ; thence generally eastward , southeastward and northeastward approximately 5,200 lf along the boundary of the original Elevation Water District to the point of beginning Area C Beginning at a point in the intersection of the boundaries of the original Elevation Water District , the Meadow Water District , and the southeastern right - of - way of I - 95 , said point being in the Extraterritorial Jurisdiction Boundary ETJ of the Town of Benson ; thence generally north by northwesterly approximately 5,900 lf along the boundary of the original Elevation Water District , and the Town of Benson ETJ to a point 500 lf southeast of the centerline of US 301 ; thence southwest approximately 1,290 lf along a line parallel to , and 500 lf southeast of the centerline of US 301 to a point in the boundary of parcel no 01F10047 ; thence west approximately 610 lf along a boundary of parcel no 01F10047 to the eastern right - of - way of I - 40 ; thence south approximately 1,240 lf along the eastern right - of - way of I - 40 to the north right - of - way of Ivey Road SR 1227 ; thence southwest approximately 1,920 lf crossing I - 40 to a point 200 lf north of the centerline of Ivey Road , said point being in the northwestern right - of - way of Smithfield Road SR 1173 ; thence approximately 1,000 lf southwest along the northwest right - of - way of Smithfield Road ; thence 170 ft west of the northwest right - of - way of Smithfield Road ; thence approximately 1,320 lf southwest , parallel to , and 200 lf northwest of the centerline of Smithfield Road ; thence approximately 2,300 lf generally southeast , parallel to and 250 lf south of the centerline of Dogwood Road SR 1217 to a point in the northwest right - of - way of I - 95 ; thence approximately 440 lf south crossing I - 95 to a point in the southeast right - of - way of I - 95 ; thence approximately 2,500 lf generally east along the southeast right - of - way of the I - 95 I - 40 interchange ; thence , 400 lf northeast crossing I - 40 to the northeast right - of - way of I - 40 ; thence approximately 2,840 lf north and northeast along the right - of - way of I - 40 , the I - 40 I - 95 interchange and the southeast right - of - way of I - 95 to the point of beginning Area D Beginning at a point 500 ft northwest of the centerline of US 301 and 500 ft northeast of the centerline of Raleigh Road SR 1330 , said point being a corner in the boundary of the original Elevation Water District ; thence southwest along a line 500 ft northwest of and parallel to the centerline of US 301 approximately 4,770 lf to a point 500 ft northeast of the centerline of Gilbert Road SR 1357 ; thence north approximately 2,060 lf to the eastern corner of parcel no 01F09040E ; thence northwest approximately 780 lf and southwest approximately 830 ft along the boundaries of parcel no 01F09040E and crossing Gilbert Road to a point in the western right - of - way of Gilbert Road ; thence , approximately 720 ft southeast along the western right - of - way of Gilbert Road to a point 500 ft northwest of the centerline of CSX Railroad ; thence , southwest approximately 3,180 ft along a line parallel to and 500 ft northwest of the centerline of CSX Railroad to the western right - of - way of I - 40 ; thence generally north approximately 2,950 lf along the western right - of - way of I - 40 ; thence , northeast approximately 500 ft to a point in the eastern right - of - way of I - 40 , said point being in the southwest corner of parcel no 01F09054 ; thence north approximately 310 lf , east approximately 400 lf , north approximately 1,500 lf , northwest approximately 780 lf , and northeast approximately 250 lf along the boundaries of parcel no 01F09054 to a point in the southern right - of - way of Woodall Dairy Road SR 1356 ; thence north approximately 560 ft crossing Woodall Dairy Road to a point 500 lf northeast of the centerline of Woodall Dairy Road , said point also lying in the eastern right - of - way of Federal Road SR 1331 ; thence generally eastward along the boundary of the original Elevation Water District approximately 7,330 lf to a point 500 ft east of the centerline of Raleigh Road ; thence southeast approximately 2,870 lf along a line 500 ft east of and parallel to the centerline of Raleigh Road to the point of beginning Area E Beginning at a point of the intersection of the southernmost point of parcel number 08H10043 and the Town of Four Oaks ETJ , thence northward along the eastern boundary of parcel number 08H10043 approximately 1,970 lf to the intersection with the shared boundary with parcel number 08H10011B , thence northward along the eastern boundary of parcel number 08H10011B approximately 2,790 lf to the intersection with the Town of Four Oaks ETJ , then southwestward along the Town of Four Oaks ETJ approximately 5,900 lf to said point of beginning Area E includes six parcels , their respective parcel numbers being 08H10011B , 08H10043 ,Page0165 June 6 , 2005 Continued 08H10046B , 08H10046A , 08H10044 , and 08H10199 3 The County and its officers , agents and attorneys are hereby directed to take any further actions as may be required by the laws of the State of North Carolina to perform the matters and things directed by this resolution 4 This resolution will become effective as of July 1 , 2005 Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Elevation Water District Board adjourned , and regular session was resumed th 10 Re - Entry - 11 Judicial District HALT Program - Request for Assistance th Dot Ehlers , Executive Director of the 11 Judicial District Re - Entry Program , addressed the Board to request assistance for the HALT program , a division of Re - Entry She stated HALT is the only NC certified batterer treatment program in Johnston County HALT is a 13 month program , which includes 30 weeks of group sessions , six months of intensified case management , and assistance with substance abuse problems when necessary Ms Ehlers emphasized the negative effects that domestic violence has on the entire community , and stressed the need for the continuance of the HALT program Since the beginning of the program in 1998 , HALT has received grant funding from the Governor’s Crime Commission Unfortunately , the grant funding will be depleted for Johnston County in September 2005 Ms Ehlers requested the Board consider an allocation of 100,000 to the HALT program for FY 05 - 06 Kenneth Johnson and his son , Kenneth Johnson , Jr , both graduates of HALT , spoke highly of the merits of the program Dennis Lowendowsky , psychologist , stated he has been involved with HALT since 1998 , and complimented the professionalism and effectiveness of the program He urged the Board to consider Ms Ehlers request , and emphasized the loss of vital services in the community if HALT does not continue to provide this for Johnston County citizens The Board agreed to consider Ms Ehler’s request , and make a decision during the special budget meetings previously set 11 Johnston County Schools - Request to Transfer School Construction Funds to Cover Variances John Massey , County Finance Director , stated the Board of Education has requested the Board approve transfers between bond construction projects to cover construction cost variances for projects that have come in “ over - budget ” The funds would come from projects that were completed “ under - budget ” Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner DeVan Barbour and carried by unanimous vote , the Board approved the following request to transfer school construction funds to cover variances Project No School Amount 9118 Clayton High Increase funds by 23,32148 9129 West Smithfield Elem Increase funds by 25,93500 9146 River Dell Elem Increase funds by 51364 9137 Micro - Pine Level Elem Increase funds by 6,43461 9116 South Johnston High Decrease funds by 52,92569 9125 Princeton Union Decrease funds by 74041 9140 Benson Middle Decrease funds by 2,53863 12 Johnston County Schools - Request to Reallocate ADM Funds Upon a motion by Commissioner DeVan Barbour , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Board approved a request from the Johnston County Board of Education to designate Meadow Elementary as a State ADM Construction project , and approved the use of 248,375 of state funds to cover project overruns for HVAC re - design and construction at the school 13 Resolution to Amend Articles of Incorporation of Johnston Memorial Hospital CorporationPage1166 June 6 , 2005 Continued County Attorney Mark Payne stated the Board of Directors of Johnston Memorial Hospital Corporation has requested the Commissioners adopt a resolution amending their Articles of Incorporation The amendments would include modification to Articles 31 and the addition of new Article 32 to further specify the Corporation’s designation as a 501 c 3 organization The succeeding articles were renumbered Upon a motion by Commissioner Jeffrey P Carver , seconded by Commissioner Allen L Mims , Jr and carried by unanimous vote , the Board approved the following resolution to amend the articles of incorporation of Johnston Memorial Hospital Corporation RESOLUTION APPROVING AMENDMENTS TO THE ARTICLES OF INCORPORATION OF JOHNSTON MEMORIAL HOSPITAL CORPORATION WHEREAS , on the 21st day of April , 2005 , the Board of Directors of Johnston Memorial Hospital Corporation the Corporation adopted certain amendments to the Corporations Articles of Incorporation ; and WHEREAS , attached hereto as Exhibit 1 is a true and correct copy of the said amendments to the Corporations Articles of Incorporation ; and WHEREAS , no amendment to the said Articles of Incorporation of the Corporation is effective unless and until it is approved by a majority of the members of the Board of Commissioners of Johnston County , North Carolina ; and WHEREAS , the Board of Directors of the Corporation has requested the Board of Commissioners to approve the said amendments NOW , THEREFORE , the Board of Commissioners of Johnston County , North Carolina , hereby adopts the following resolution ; RESOLVED , that the amendments to the Articles of Incorporation of Johnston Memorial Hospital Corporation , as set forth on Exhibit 1 attached hereto , be and hereby are approved This 6th day of June , 2005 14 Award of Bid - Landfill Excavator The Board reviewed the following bids , which were received on May 20 , 2005 for an excavator for the landfill In addition to the base bid price , staff requested supplemental pricing for 1 Five Year Guaranteed Repurchase Price , 2 48 Month Power Train Warranty , and 3 Five Year Guaranteed Preventative Maintenance Quote Bidder Machine Base Price 5 Yr Guaranteed 48 Month Added 5 Yr Guaranteed Model Including Repurchase Price Power Train Preventative Tax Warranty Maintenance Quote ASC Volvo EC240 193,68712 64,000 11,984 250 Hr 29559 Construction BLC 500 Hr 36514 Equipment USA 1000 Hr 45208 Inc 2000 Hr 66073 Mitchell’s Komatsu 211,74230 No Bid 6,420 250 Hr 78110 Distributing Co PC220LC - 7 500 Hr 1,07000 1000 Hr 1,35355 2000 Hr 2,13465 Gregory Poole Caterpillar 220,86298 71,500 13,450 250 Hr 69800 Equipment Co 322CL 500 Hr 69800 1000 Hr 69800 2000 Hr 69800 Staff has recommended award of bid to low bidder , ASC Construction Equipment USA , Inc , in the amount of 193,68712 for the Volvo EC240 BLC , plus the 48 month power train warranty in the amount of 11,984 If approved , the purchase would be made from existing Solid Waste funds Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Allen L Mims , Jr and carried by unanimous vote , the Board awarded the bid to low bidder , ASC Construction Equipment USA , Inc , in the amount of 193,68712 for the Volvo EC240 BLC , plus the 48 month power train warranty in the amount of 11,984 , for an excavator for the landfill Page2167 June 6 , 2005 Continued 15 Presentation of Proposed Wastewater Transmission Facilities Up - sizing & Capacity Improvements Program - FY 05 - 06 and FY 06 - 07 Tim Broome , Public Utilities Director , provided the Board with a brief presentation on what will most likely happen during the next few years in regards to wastewater transmission and capacity Staff anticipates six projects to begin requesting sewer service This includes two residential projects in the Wilson’s Mills area , and four projects in the Cleveland Area Cleveland Springs Planned Unit Development , Pierce Road Mixed Use Development if approved , Adams Creek Development and the new elementary school on the Parker property The only projects that are currently requesting service are located in the Josephine Road Area Mr Broome pointed out the County’s current utility development policy requires developers who desire sewer service to install , at their cost , all infrastructure required for the development’s needs and the pipeline necessary to connect to the County’s closest wastewater collection or transmission system The County is responsible for “ up - sizing ” gravity sewer lines , wastewater pump stations , and force mains to accommodate tributary wastewater and or projected area wide growth He noted that expenditures from the enterprise fund are expected to total approximately 35 million to cover the cost of up - sizing and pipeline extensions over the next two fiscal years Developers are required to pay a 10 down payment , however , the remainder of the assessment fees coincide with each development phase for the project Mr Broome stated that there is a possibility of a 550,000 - 600,000 shortfall during the next two years County Manager Rick Hester suggested the Board may want to consider another workshop in the fall to discuss water and wastewater issues 16 Josephine Road Area Wastewater Collection and Transmission Facilities - Construction and Cost Sharing Agreement Tim Broome , Public Utilities Director , requested the Board approve an agreement between the County , Son - Lan Development Company and JDG Investments , Inc for wastewater collection and transmission facilities construction and cost sharing for the Josephine Road Area of the Cleveland Community He stated two major subdivisions are under development on Josephine Road which have been approved for sewer service Jordan Ridge Subdivision Phases 3 and 4 and Twisted Oaks Subdivision In order to eliminate a wastewater pump station , maximum gravity sewer service , and plan for transmission of future wastewater from surrounding areas , the County would need to participate in certain pipeline and pump station up - sizing and construction of a gravity sewer line extension Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Jeffrey P Carver and carried by unanimous vote , the Board approved the following Construction and Cost Sharing Agreement for the Josephine Road Area Wastewater Collection and Transmission Facilities Josephine Road Area Wastewater Collection and Transmission Facilities Construction and Cost Sharing Agreement THIS AGREEMENT made this 6th day of June , 2005 between JDG Investments , Inc JDG hereafter , Son - Lan Development Company Son - Lan hereafter , and Johnston County County hereafter is for construction of wastewater collection and transmission facilities including gravity sewer lines , a pump station , and a force main to serve Island Creek Subdivision , Twisted Oaks Subdivision , Jordan Ridge Phase 3 Subdivision , and wastewater from other County service areas ; WITNESSETH WHEREAS , JDG , Son - Lan , and County require wastewater collection and transmission facilities in the Josephine Road area to serve their respective needs ; and WHEREAS , JDG , Son - Lan , and County can cooperate to design , permit , and construct wastewater collection facilities which will comply with the Countys area wide wastewater service plan to minimize the number of wastewater pump stations and to transmit wastewater from the greater Cleveland area to the Countys wastewater treatment plant ; and WHEREAS , JDG and Son - Lan can achieve wastewater service for their respective developments under this agreement at no additional cost for transmission infrastructure beyond the cost for design and construction of their respective facilities , separately ; andPage3168 June 6 , 2005 Continued NOW , THEREFORE , for and consideration of the mutual benefits to the parties and the rights , powers , and duties hereinafter set forth to be performed by each party , the sufficiency of which is hereby acknowledged by the parties ; JDG , Son - Lan , and County agree as follows 1 Son - Lan shall design , permit , and construct a 12 gravity sewer line from Josephine Road , at the entrance to Island Creek Subdivision , to a manhole in the existing sewer line , upstream of the existing Broadmoor wastewater pump station , with a length of 1,981 lf 2 Son - Lan shall design and permit the following infrastructure a A 15 gravity sewer line from the Broadmoor pump station , which includes a 1,441 ft segment beginning near Street B in Twisted Oaks Subdivision , following the north side of the existing creek , to a manhole on the southwest side of Josephine Road , with a length of 2,403 ft b A 21 gravity sewer line from the southwest side of Josephine Road at the termination of the 15 line in a above , to the location of a new pump station in Jordan Ridge Phase 3 Subdivision , with a length of 156 ft c A wastewater pump station in Jordan Ridge Phase 3 Subdivision rated 2,250 gpm and conforming to design criteria established by County d A 16 force main from the wastewater pump station in a above to Josephine Road , with a length of 90 ft The force main shall connect to a new force main designed , permitted , and constructed separately by the County e An 8 force main , to be used as by - pass of the primary force main , until all improvements are in place with length of 67 ft The force main shall connect to a new force main designed , permitted , and constructed separately by the County 3 JDG shall design , permit , and construct two 8 gravity sewer lines which extend from its collection system in Twisted Oaks Subdivision to the 15 gravity sewer line item 2 a above 4 County shall acquire easements on properties outside the boundaries of Island Creek , Twisted Oaks , and Jordan Ridge Phase 3 Subdivisions , and properties owned or controlled by JDG and Son - Lan 5 County shall advertise for construction bids , enter a construction contract , and oversee and inspect construction of the 15 and 21 gravity sewer lines , the pump station , and the 16 force main , described herein 6 The target schedule for design , permitting , procurement , and construction of the facilities described herein , is as follows a Son - Lan complete design of sewer lines , pump station , and force main by May 10 , 2005 b County review plans and specifications by May 13 , 2005 , and issue comments c Son - Lan revise plans and specifications if required by May 20 , 2005 , and submit documents to regulatory agencies for permitting d County advertise for bids May 24 , 2005 e County open bids June 21 , 2005 f County award construction contract July 5 , 2005 g Start construction July 18 , 2005 h Finish construction and startup facilities December 1 , 2005 All parties agree that the target schedule could be altered due to circumstances beyond the parties control including , but not limited to receipt of regulatory permits , acquisition of easements , weather , contractor default , and force majeure 7 Son - Lan shall pay to County the amount of 185,30000 which is the cost for design , permitting , and construction of an 80 gpm wastewater pump station and 2,900 lf of 4 force main , as follows 80 gpm pump station 140,00000 2,900 lf 4 force main @ 1200 lf 34,80000 Design and permitting @ 6 10,50000 TOTAL 185,30000 8 JDG shall pay to the County the amount of 199,00000 which is the cost for design , permitting , and construction of 780 lf of 8 gravity sewer line , an 80 gpm wastewater pump station , and 1,050 lf of 4 force main , as follows 780 lf of 8 sewer line @ 4500 lf 35,10000 80 gpm pump station 140,00000 1,050 lf of 4 force main @ 1200 lf 12,60000 Design and permitting @ 6 11,30000 TOTAL 199,00000 9 Payments by Son - Lan and JDG to County shall be made in two equal installments , the first due within 30 days of the award of the construction contract by County and the second when construction is approximately 50 complete 10 County shall reimburse Son - Lan the difference in cost of 1,981 lf of 12 gravity sewer line and an equal length of 8 gravity sewer line understood to be 7,33000 Item 1 herein Payment shall be made within 15 days of the effective date of this agreement 11 County shall reimburse Son - Lan for the cost of design and permitting of the facilities described inPage4169 June 6 , 2005 Continued item 2 herein in the amount of 14,40000 Payment shall be made within 15 days of receipt of all regulatory permits 12 County shall pay for the cost of easements acquisition on properties other than those owned or controlled by JDG and Son - Lan and for the construction of facilities described in item 2 herein 17 Presentation of Letter of Conditions for Little River Water District Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Allen L Mims , Jr and carried by unanimous vote , the Board recessed regular session to sit as the Little River Water District Board Mike Harris with USDA Rural Development presented the letter of conditions for funding the first phase of construction for the Little River Water District Initially , the District requested Rural Development funding of a 57 million loan and a 34 million grant , with the remainder of the project to be funded through District tap fees and County “ up - sizing ” contributions Mr Harris explained much of the matching grant funds allocated for North Carolina projects have been diverted to hurricane damage relief in Florida As a result , Rural Development has offered a reduced loan and grant if the District is willing to construct the system in two phases The first phase of the project would include a 1,875,000 loan , 1,217,000 grant , and 78,000 in district tap fees The remaining loan and grant funds should be available in early spring 2006 In response to a question from Commissioner Wade M Stewart , Mr Harris stated although funding for the district would be granted in two phases versus one phase , the percentage of the loan and grant should remain the same Following discussion , Commissioner W Ray Woodall moved the Board adopt the following resolution accepting the loan and grant funds for the Little River Water District and the associated letter of conditions Commissioner DeVan Barbour seconded the motion , which carried by unanimous vote RESOLUTION OF THE BOARD OF COMMISSIONERS OF LITTLE RIVER WATER DISTRICT BE IT RESOLVED That the Board of Commissioners of the Little River Water District do hereby accept the conditions set forth in the Letter of Conditions dated June 6 , 2005 , the RUS Bulletin 1780 - 27 , Loan Resolution , dated June 6 , 2005 , and the RUS Bulletin 1780 - 12 , Water or Waste System Grant Agreement ; and That the Board of Commissioners will adopt an operating budget for the Little River Water District that will maintain a water use rate schedule at rates sufficient to meet all budgeted operating , replacement , and debt service expenses , and , the Little River Water District may make modifications to the rate system as long as the rate schedule remains sufficient to meet budget requirements ; and , That the Chairman and Clerk be authorized to execute all forms necessary to obtain a loan and grant from the USDA Rural Development , Rural Utility Service including , but not limited to the following forms ; FORM RD 1