July 7, 2003 - 10:00 AM - County Board of Commissioners Meeting Minutes

10 369 Meeting of the Johnston County Board of Commissioners July 7 , 2003 The Johnston County Board of Commissioners met in regular session Monday , July 7 , 2003 , at 10 00 am in the Commissioners Meeting Room , Johnston County Courthouse Annex , Smithfield , North Carolina , with the following members present Present James H Langdon , Jr , Chairman , Cookie Pope , Vice Chairman , Thomas M Moore , Wade M Stewart , Allen L Mims , Jr , Jeffrey P Carver , and W Ray Woodall Absent None Also Present Rick J Hester , County Manager , Joyce H Ennis , Clerk to the Board , Mark Payne , County Attorney , and John R Massey , Finance Officer The Chairman called the meeting to order and the following business was transacted 1 Minutes Approved Upon a motion by Commissioner Cookie Pope , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Board approved the minutes of the June 2 , 9 , 10 , 18 , and 24 , 2003 board meetings as presented Public Comments 2 Minority Employment Opportunities Reverend James Gathers of Total Praise Ministries thanked the Board for the good job they do in running the government , but voiced his concerns about race relations and minority employment opportunities with the County He stated minorities who previously lacked qualifications for many jobs , have prepared themselves for the workforce by going to college just to be told now they are over qualified for many county positions He also stated that qualified applicants are not always notified when a position is filled Rev Gathers noted he has a talk show on local television and plans to have a series in the near future on race relations in the government He asked the Board to look at this situation and make sure the County is an equal opportunity employer Board members thanked Rev Gathers for his comments , and County Manager , Rick Hester , offered to speak further with him on this matter 3 Citizen Complaint Phil Taylor , who lives in Waverly Point Subdivision , presented the Board a written rebuttal to the County’s response to a complaint he filed with the NC Code Qualifications Board He suggested his document be made a part of the minutes of this meeting Chairman Langdon and Board members accepted the document and agreed to review the material Note Mr Taylor’s rebuttal was received by each of the Commissioners , the County Attorney , and the County Manager A copy was also filed in the County Manager’s office 4 Chief Building Inspector , C P Thompson to Retire C P Thompson , chief building inspector and director of the County Inspections Office informed the th Board he will be retiring on July 15 He stated he has enjoyed his time with the County and feels the Inspections Department that he is leaving is the best in the State Chairman Langdon voiced his appreciation for the years of service Mr Thompson has given the County and the excellent job he has done Commissioners W Ray Woodall also thanked Mr Thompson for the job he has done with the Inspections Department over the years Commissioner Thomas M Moore agreed and noted how much the department has grown since it was first established He complimented Mr Thompson on a job well done , and noted his appreciation for all the help he has given the citizens of the County Page370 July 7 , 2003 10 00 Meeting Continued 5 Wireless 911 Funds to be Used by State to Balance Budget Communications Director , Jason Barbour , informed the Board the State of North Carolina plans to withhold wireless 911 revenue from 911 centers across the state over the next 18 months A total of 33 million of anticipated revenue is being used to balance the budget , money that should be coming to the 911 centers for technology to allow cell phones to be traced to a specific location Johnston County’s monthly reimbursement that would be withheld is 13,000 , which is necessary to continue operating the updated system that is already in place Cell phone users are charged an 80 surcharge , 60 of which is allocated to wireless carriers , and 40 to 911 centers The 40 that comes to the County can only be used for certain things , specifically equipment for enhancing the operation of the center He noted that currently the State has a balance of 57 million in the fund that could be tapped in lieu of taking the money from the centers He asked the Board to contact legislators and ask that they reconsider this action Commissioner Allen L Mims , Jr expressed frustration with the State taking local funds , especially funds that are needed for the health and safety of the citizens He suggested the Board send a strong message to Raleigh to oppose this action Commissioner Thomas M Moore agreed Commissioner Wade M Stewart asked how this would affect the County’s 911 operation since we already have the updated equipment in place Mr Barbour stated without the 13,000 per month , the location system would be turned off Commissioner Stewart concurred that a strong letter or resolution be sent to the State opposing the use of these funds Following further discussion , Commissioner W Ray Woodall moved the Board send the NC Legislators a notice of strong opposition to the use of wireless 911 funds for balancing the State budget Commissioner Cookie Pope seconded the motion , which carried by unanimous vote 6 Report on Fireworks Chairman James H Langdon , Jr reported he approved the following fireworks displays this year , as authorized by the Board Triple “ S ” Ranch , Celebrate Cleveland , Town of Pine Level , Clayton Parks and Recreation , Benson parks and Recreation , and Princeton Police Department 7 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 Buckhorn Lane in Deerfield Subdivision , Wilders Township ; Leach Drive , Susan Drive , Kings Court , Gibbons Drive , and Skipping Stone Drive in Creekside Place Subdivision , Phases 1 & 2 , Cleveland Township Commissioner Cookie Pope moved the Board concur with the NC Department of Transportation’s request to add the above listed roads to the State Maintained System Commissioner Thomas M Moore seconded the motion which carried by unanimous vote 8 Department of Transportation - Deletion from System The Board reviewed a petition presented by the North Carolina Department of Transportation requesting a 16 mile portion of SR 2303 Absher Road be deleted from the State Secondary Road Maintenance System After reviewing the attached documents , Commissioner Cookie Pope moved the Board concur with the NC Department of Transportation’s request to delete the 16 mile portion of SR 2303 Absher Road from the State Maintained System Commissioner Thomas M Moore seconded the motion which carried by unanimous vote 9 Resolution Authorizing the Issuance and Sale of General Obligation School Bonds Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Cookie Pope and carried by unanimous vote , the Board adopted the following resolution authorizing the sale of the final 30 million from the 77 million bond issue approved by the November 6 , 2001 bond referendum Commissioner Allen L Mims , Jr introduced a resolution , the title of which is as follows and was read Page371 July 7 , 2003 10 00 Meeting Continued RESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF GENERAL OBLIGATION SCHOOL BONDS OF JOHNSTON COUNTY , PURSUANT TO THE BOND ORDER HERETOFORE APPROVED AND PROVIDING FOR THE FORM , DETAILS AND PAYMENT THEREOF WHEREAS , the Bond Order hereinafter described was authorized and adopted by the Board of Commissioners the “ Board ” of Johnston County the County on September 4 , 2001 and approved by the voters on November 6 , 2001 ; and WHEREAS , the Board desires to provide for the issuance of general obligation School Bonds to finance the costs of school facilities pursuant to such Bond Order ; and WHEREAS , under North Carolina law , such bonds are to be sold at public sale by the North Carolina Local Government Commission after circulation of an official statement with respect to such bonds which describes the terms thereof and the security thereof , including information concerning the County and its financial resources , and the Board has been provided a draft of such official statement ; NOW , THEREFORE , the Board , meeting in regular session at Smithfield , North Carolina , on July 7 , 2003 does the following BE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR JOHNSTON COUNTY 1 The Board adopted a bond order the “ Bond Order ” authorizing not exceeding 75,000,000 general obligation public improvement bonds for the purpose of financing , in part , the acquisition , construction and equipping of school facilities , which Bond Order was approved by the vote of a majority of qualified voters of the County who voted thereon at a referendum duly called and held on November 6 , 2001 2 The County has heretofore issued 20,000,000 of said bonds as part of an issue designated “ 43,000,000 General Obligation Public Improvement Bonds , Series 2002 ” and 25,000,000 of said bonds as part of an issue designated “ 27,000,000 General Obligation Public Improvement Bonds , Series 2002A ” , and no notes have been issued in anticipation of the receipt of the proceeds of the sale of said bonds The County has determined that it is necessary to issue at this time 30,000,000 of said bonds in accordance with the provisions of paragraph 3 of this Resolution The maximum period of usefulness of the facilities to be financed with the proceeds of said school bonds , Series 2003 to be issued is estimated as a period of 40 years from August 1 , 2003 , the date of said school bonds , Series 2003 as hereinafter provided , and that such period expires on August 1 , 2043 3 Pursuant to the Bond Order , there shall be issued bonds of the County in the aggregate principal amount of 30,000,000 designated General Obligation School Bonds , Series 2003 which shall be dated August 1 , 2003 the “ Bonds ” The Bonds shall mature subject to the right of prior redemption as hereinafter set forth annually on February 1 , 1,100,000 2006 to 2011 , inclusive , 1,500,000 2012 to 2018 , inclusive , 2,000,000 2019 to 2024 , inclusive , and 900,000 2025 Each Bond shall bear interest at such rate as shall be determined by the County Manager and the North Carolina Local Government Commission the “ LGC ” at the time of sale , provided no interest rate on any Bond shall exceed six percent 6 , payable on February 1 , 2004 , and semiannually thereafter on August 1 and February 1 Each Bond shall bear interest from the interest payment date next preceding the date on which it is authenticated unless it is a authenticated upon an interest payment date in which event it shall bear interest from such interest payment date or b authenticated prior to the first interest payment date in which event it shall bear interest from its date ; provided , however , that if at the time of authentication interest is in default , such Bond shall bear interest from the date to which interest has been paid Initially , one bond certificate for each maturity of each series of the Bonds will be issued to The Depository Trust Company , New York , New York DTC , and immobilized in its custody So long as DTC is securities depository for the Bonds , a book - entry system will be employed , evidencing ownership of the Bonds in principal amounts of 5,000 or whole multiples thereof , with transfers of ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants Interest on the Bonds will be payable to DTC or its nominee as registered owner of the Bonds Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC ; transfer of principal and interest payments to beneficial owners by participants of DTC will be the responsibility of such participants and other nominees of beneficial owners The County will not be responsible or liable for maintaining , supervising or reviewing the records maintained by DTC , its participants or persons acting through such participants In the event that a DTC determines not to continue to act as securities depository for the Bonds or b the County Manager determines that continuation of the book - entry system of evidence and transfer of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds , the County will discontinue the book - entry system with DTC If the County fails to identify another qualified securities depository to replace DTC , the County will authenticate and deliver replacement Bonds in the form of fully registered certificates , and registration of transfer of the Bonds will be permitted as described in paragraph 8 4 The Bonds maturing prior to February 1 , 2014 , will not be subject to redemption prior to maturity The Bonds maturing on or after February 1 , 2014 , will be subject to redemption prior to maturity , at the option of the County , from any moneys that may be made available for such purpose , either in whole or in part in whole multiples of 5,000 of principal amount on any date not earlier than February 1 , 2013 at the principal amount of the Bonds to be redeemed together with interest accrued thereon to the date fixed for redemption as follows from and including February 1 , 2013 to January 31 , 2014 , a redemption price of 101 of the principal amount of the Bonds to be redeemed ; and from and including February 1 , 2014 and thereafter , at a redemption price of 100 of the principal amount of the Bonds to be redeemed If less than all of the Bonds of any one maturity shall be called for redemption , the particular Bonds or portions of Bonds to be redeemed shall be selected by lot by the County in such manner as the County may determine , provided that DTC and its participants shall determine which Bonds are to be redeemed by lot so long as a book - entry system with DTC is continued Page372 July 7 , 2003 10 00 Meeting Continued Notice of redemption shall be given by facsimile transmission , registered or certified mail or overnight express delivery to DTC or its nominee as the registered owner of the Bonds Such notice shall be sent or mailed not more than 60 nor less than 30 days prior to the date fixed for redemption The County will not be responsible for sending or mailing notices of redemption to anyone other than DTC or its nominee unless no qualified securities depository is the registered owner of the Bonds If no qualified securities depository is the registered owner of the Bonds , notice of redemption will be sent or mailed to the registered owners not less than 30 days prior to the date fixed for redemption 5 The Bonds shall be signed by the manual or facsimile signature of the Chairman or Vice Chairman of the Board of Commissioners of the County , shall be countersigned by the manual or facsimile signature of the Clerk to the Board and a manual or facsimile of the Countys seal shall be printed or affixed thereon No Bond shall be valid until it bas been endorsed by the manual or facsimile signature of an authorized representative of the LGC In case any officer of the County or the LGC whose manual or facsimile signature shall appear on any Bonds shall cease to be such officer before the delivery of such Bonds , such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes the same as if such officer had remained in office until such delivery , and any Bond may bear the manual or facsimile signatures of such persons as at the actual time of the execution of such Bond shall be the proper officers to sign such Bond although at the date of such Bond such persons may not have been such officers 6 No Bond shall be valid or become obligatory for any purpose or be entitled to any benefit or security under this resolution until it shall have been authenticated by the execution by the Bond Registrar hereinafter defined of the certificate of authentication endorsed thereon The Bonds and the endorsement thereon shall be in substantially the following form , the terms and requirements of which are incorporated herein by reference REGISTERED REGISTERED NoR - _____ _____________ UNITED STATES OF AMERICA STATE OF NORTH CAROLINA JOHNSTON COUNTY General Obligation School Bond , Series 2003 INTEREST RATE MATURITY DATE DATE OF ORIGINAL ISSUE CUSIP NO ____ February 1 , 20__ August __ , 2003 _______ REGISTERED OWNER CEDE & CO PRINCIPAL AMOUNT DOLLARS ________________ Johnston County , North Carolina the County , for value received , hereby promises to pay , upon surrender hereof to the County , to the registered owner hereof , or registered assigns or legal representative , the principal sum stated above on the maturity date stated above and to pay interest hereon semiannually on each February 1 and August 1 at the annual rate stated above Interest is payable from August 1 , 2003 , beginning February 1 , 2004 Interest is payable by check mailed to the person shown as the owner hereof at his address as it appears on the registration books kept by the County on the fifteenth day of the month preceding each interest payment date Principal and interest are payable in lawful money of the United States of America This Bond is one of an issue of 30,000,000 Johnston County General Obligation School Bonds , Series 2003 of like date and tenor , except as to number , denomination , rate of interest and maturity , and is issued pursuant to the Constitution and statutes of the State of North Carolina , including The Local Government Bond Act , regulations of the North Carolina Local Government Commission LGC , resolutions of the Board of Commissioners of Johnston County and the Bond Order entitled BOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION PUBLIC IMPROVEMENT BONDS OF JOHNSTON COUNTY IN THE MAXIMUM AGGREGATE PRINCIPAL AMOUNT OF 75,000,000 FOR THE PURPOSE OF FINANCING , IN PART , THE ACQUISITION , CONSTRUCTION AND EQUIPPING OF SCHOOL FACILITIES which was authorized and adopted by the County on September 4 , 2001 and approved by the voters on November 6 , 2001 The Bonds maturing prior to February 1 , 2014 will not be subject to redemption prior to maturity The Bonds maturing on or after February 1 , 2014 will be subject to redemption prior to maturity , at the option of the County , from any moneys that may be made available for such purpose , either in whole or in part in whole multiples of 5,000 , on any date not earlier than February 1 , 2013 , at the principal amount of the Bonds to be redeemed , together with interest accrued thereon to the date fixed for redemption as follows from and including February 1 , 2013 to January 31 , 2014 , a redemption price of 101 of the principal amount of the Bonds to be redeemed ; and from and including February 1 , 2014 and thereafter , at a redemption price of 100 of the principal amount of the Bonds to be redeemed If less than all of the Bonds of anyone maturity shall be called for redemption , the particular Bonds or portions of Bonds to be redeemed shall be selected by lot in such manner as the County may determine ; provided , however , that so long as the book - entry system is used for determining beneficial ownership of Bonds , The Depository Trust Company DTC and its participants shall determine which of the Bonds are to be redeemed by lot Notice of redemption shall be given by facsimile transmission , registered or certified mail or overnight express delivery to DTC or its nominee as the registered owner of the Bonds Such notice shall be sent or mailed not more than 60 nor less than 30 days prior to the date fixed for redemption The County will not be responsible for sending or mailing notices of redemption to anyone other than DTC or its nominee unless no qualified securities depository is thePagePage pageNumber5373 July 7 , 2003 10 00 Meeting Continued registered owner of the Bonds If no qualified securities depository is the registered owner of the Bonds , notice of redemption will be sent or mailed to the registered owners not less than 30 days prior to the date fixed for redemption If no qualified securities depository is the registered owner of the Bonds , registration of transfer of the Bonds and exchange of certificates thereof may be effected at the office of the Bond Registrar mentioned hereinafter or such other place as the County may determine The full faith and credit and taxing power of the County are hereby irrevocably pledged for the payment of principal of and interest on this Bond All acts , conditions and things required by the Constitution and statutes of the State of North Carolina to happen , exist or be performed precedent to and in the issuance of this Bond have happened , exist and have been performed , and the issue of Bonds of which this Bond is one , together with all other indebtedness of the County , is within every debt and other limit prescribed by the Constitution and statutes of the State of North Carolina This Bond shall be governed by the laws of the State of North Carolina This Bond shall not be valid until the County shall have executed the Certificate of Authentication appearing hereon IN WITNESS WHEREOF , Johnston County , North Carolina , has caused this Bond to be signed by the manual or facsimile signature of the Chairman or Vice Chairman of its Board to be countersigned by the manual or facsimile signature of the Clerk of Johnston County , a manual or facsimile of its seal to be printed or affixed hereon , and this Bond to be dated August 1 , 2003 Date Authenticated _______________________ ________________________________ Chairman , Board of Commissioners SEAL ________________________________________ Clerk , Board of Commissioners CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within - mentioned Bond Order COUNTY OF JOHNSTON , NORTH CAROLINA By __________________________________ County Finance Officer 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 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell s , assign s and transfer s unto Please print or type name and address , including postal zip code , of Transferee PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF TRANSFEREE the within bond and all rights thereunder , hereby irrevocably constituting and appointing ________________ ____________________________________________________________________________________ , Attorney , to transfer said bond on the books kept for the registration thereof , with full power of substitution in the premises Dated ____________ Signature Guaranteed _______________________________ ____________________________________ NOTICE Signature s must be Signature of Registered Owner guaranteed by a member firm of the New York Stock NOTICE The signature above Exchange or a commercial bank must correspond with the name or trust company of the registered owner as it appears on the front of this bond in every particular , without alteration or enlargement or any change whatsoever 7 The full faith and credit and taxing power of the County 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 8 The County shall maintain registration books for the registration of Bonds If no qualified securities depository is the registered owner of the Bonds , upon surrender of any Bonds at the office of the Bond Registrar mentioned hereinafter or such other place as the County may determine upon the presentation and surrender thereof , together with an assignment duly executed by the registered owner or his duly authorized attorney or legal representative in such form as shall be satisfactory to the County , the County 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 County , except that the County may charge the person requesting such exchange the amount of any tax or other governmental charge required to be paid with respect thereto PagePage pageNumber6374 July 7 , 2003 10 00 Meeting Continued The County 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 9 The LGC is hereby requested to sell said General Obligation School Bonds , Series 2003 by public sale on or about July 22 , 2003 pursuant to a Preliminary Official Statement in substantially the form of the draft presented to the Board , which draft is deemed to be a final official statement within the meaning of Rule 15c2 - 12 issued under the Securities Exchange Act of 1934 Rule 15c2 - 12 , except for the omission of certain pricing and other information to be made available in the final Official Statement for such bonds The distribution of any Preliminary Official Statement or Official Statement shall constitute conclusive evidence that the County has deemed the Preliminary Official Statement or the Official Statement , as the case may be , to be final as of its date within the meaning of Rule 15c2 - 12 Each of the Chairman or Vice Chairman of the Board , the County Manager and the County Finance Director shall be , and hereby is , authorized and directed to execute and deliver a final Official Statement , within the meaning of Rule 15c2 - 12 , to the purchasers of the Bonds 10 The Board covenants on behalf of the County that so long as any of the installments of principal and interest on the Bonds are outstanding and unpaid , the County 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 11 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 l4l b of the Code , b 5 of such proceeds being used with respect to any output facility other than a facility for the furnishing of water , within the meaning of Section 141 b 4 of the Code , or c 5 or more of such proceeds being considered as having been used directly or indirectly to make or finance loans to any person other than a governmental unit as provided in Section 141 c of the Code ; provided , however , that if the Board receives an opinion of bond counsel acceptable to the LGC that any such restriction is not required to prevent the interest on the Bonds from being includable in the gross income of the registered owners thereof under existing statutes , the Board need not comply with such restriction 12 The County hereby undertakes , for the benefit of the beneficial owners of the Bonds , to provide a by not later than seven months from the end of each fiscal year of the County , to each nationally recognized municipal securities information repository NRMSIR and to the state information depository for the State of North Carolina SID , if any , audited financial statements of the County for such fiscal year , if available , prepared in accordance with Section 159 - 34 of the General Statutes of North Carolina , as it may be amended from time to time , or any successor statute , of , if such audited financial statements of the County are not available by seven months from the end of such fiscal year , unaudited financial statements of the County for such fiscal year to be replaced subsequently by audited financial statements of the County to be delivered within 15 days after such audited financial statements become available for distribution ; b by not later than seven months from the end of each fiscal year of the County , to each NRMSIR , and to the SID , if any , i the financial and statistical data as of a date not earlier than the end of the preceding fiscal year for the type of information included under the heading “ The County - Debt Information and - Tax Information in the Official Statement relating to the Bonds excluding any information on overlapping or underlying units and ii the combined budget of the County for the current fiscal year , to the extent such items are not included in the financial statements referred to in a above ; c in a timely manner , to each NRMSIR or to the Municipal Securities Rulemaking Board MSRB , and to the SID , if any , notice of any of the following events with respect to the Bonds , if material 1 principal and interest payment delinquencies ; 2 non - payment related defaults ; 3 unscheduled draws on debt service reserves reflecting financial difficulties ; 4 unscheduled draws on any credit enhancements reflecting financial difficulties ; 5 substitution of any credit or liquidity providers , or their failure to perform ; 6 adverse tax opinions or events affecting the tax - exempt status of the Bonds ; 7 modification to the rights of the beneficial owners of the Bonds ; 8 call of any of the Bonds for redemption ; 9 defeasance of any of the Bonds ; 10 release , substitution or sale of any property securing repayment of the Bonds ; or 11 rating changes d in a timely manner , to each NRMSIR or to the MSRB , and to the SID , if any , notice of a failure of the County to provide required annual financial information described in a or b above on or before the date specified For purposes of this paragraph , provide shall mean to initiate delivery by facsimile transmission , registered or certified mail or overnight express If the County fails to comply with the undertaking described above , any beneficial owner of the Bonds may take action to protect and enforce the rights of all beneficial owners with respect to such undertaking , including an action for specific performance ; provided , however , that failure to comply with such undertaking shall not be an event of default and shall not result in any acceleration of payment of the Bonds All actions shall be instituted , had and maintained in the manner provided in this paragraph for the benefit of all beneficial owners of the Bonds PagePage pageNumber7375 July 7 , 2003 10 00 Meeting Continued The County reserves the right to modify from time to time the information to be provided to the extent necessary or appropriate in the judgment of the County , provided that a any such modification may only be made in connection with a change in circumstances that arises from a change in legal requirements , change in law or change in the identity , nature or status of the County ; b the information to be provided , as modified , would have complied with the requirements of Rule 15c2 - 12 as of the date of the Official Statement relating to the Bonds , after taking into account any amendments or interpretations of Rule 15c2 - 12 , as well as any changes in circumstances ; and c any such modification does not materially impair the interests of the beneficial owners , as determined either by parties unaffiliated with the County such as bond counsel , or by the approving vote of the registered owners of a majority in principal amount of the Bonds pursuant to the terms of this resolution , as it may be amended from time to time , at the time of the amendment Any annual financial information containing modified operating data or financial information shall explain , in narrative form , the reasons for the modification and the impact of the change in the type of operating data or financial information being provided The provisions of this paragraph shall terminate upon payment , or provision having been made for payment in a manner consistent with Rule 15c2 - 12 , in full of the principal of and interest on all of the Bonds 13 The Chairman or Vice Chairman of the Board and the Clerk are hereby authorized and directed to take all proper steps to have the Bonds prepared and , when they shall have been duly sold by the LGC , to execute the Bonds and to deliver the Bonds to the State Treasurer of North Carolina for delivery to the purchasers thereof 14 The Chairman or Vice Chairman of the Board and the Clerk , after consultation with the County Finance Officer and the LGC , are authorized i to adjust the optional redemption provisions in the Bonds , ii to change the dated date of the Bonds to a date later than the dated date herein authorized in order to facilitate the sale and delivery of the Bonds , iii to change the principal and interest payment dates for the Bonds so long as such payment dates are semiannual , and iv to make such other adjustments as they shall deem necessary to market the Bonds 15 All other actions of officers of the County in conformity with the purposes and intent of this resolution and in furtherance of the issuance of the Bonds are hereby approved and confirmed 16 Such officers of the County as may be requested are hereby authorized and directed to execute appropriate closing papers including a certificate setting forth the expected use and investment of the proceeds of the Bonds in order to show that such expected use and investment will not violate the provisions of Section 148 of the Code and regulations issued pursuant thereto , applicable to arbitrage bonds Such papers and certificates shall be in such form as may be requested by bond counsel for the County 17 This resolution , in particular paragraphs 3 , 5 , 6 and 8 hereof , constitutes a system of registration for the Bonds pursuant to NCGS § l59E - 4 18 The County is hereby authorized to create , as needed , appropriate capital project funds and or accounts of the County for the receipt and expenditure of the proceeds of the Bonds and appropriate debt service funds and or accounts of the County for the receipt and disbursement of debt service payments on said Bonds 19 The County shall appoint such registrars , transfer agents , depositaries or other agents as may be necessary for the registration , registration of transfer and exchange of Bonds within a reasonable time according to then current commercial standards and for the timely payment of principal , interest and any redemption premium with respect to the Bonds The County is to act as the initial registrar , transfer agent and paying agent for the Bonds collectively , the “ Bond Registrar ” , subject to the right of the governing body of the County to appoint another Bond Registrar The Director of Finance or such other officer who shall from time to time perform the duties of finance officer within the meaning of NCGS Section 159 - 24 , as it may be amended from time to time , or any successor statute is hereby designated to act on behalf of the County in carrying out its responsibilities as Bond Registrar , subject to the right of the governing body of the County to designate another officer to act on its behalf , and as such shall keep at the office of the Director of Finance the books of the County for the registration , registration of transfer , exchange and payment of the Bonds 20 All resolutions or parts of resolutions in conflict herewith are hereby repealed 21 This resolution shall take effect immediately 10 Debt Reimbursement Resolution Upon motion of Commissioner Wade M Stewart , seconded by Commissioner Cookie Pope , and carried by unanimous vote , the following resolution was adopted RESOLUTION DESIGNATING THE COUNTY MANAGER OR FINANCE OFFICER TO DECLARE OFFICIAL INTENT ON BEHALF OF THE COUNTY TO REIMBURSE EXPENDITURES WITH PROCEEDS OF DEBT PURSUANT TO UNITED STATES DEPARTMENT OF TREASURY REGULATIONS BE IT RESOLVED , by the Board of Commissioners the “ Board ” for the County of Johnston , North Carolina the “ County ” Section 1 The Board hereby finds , determines and declares as follows PagePage pageNumber8376 July 7 , 2003 10 00 Meeting Continued a Treasury Regulations Section 1150 - 2 the “ Regulations ” , promulgated by the United States Department of Treasury on June 18 , 1993 , prescribes certain specific procedures applicable to certain obligations issued by the County after June 30 , 1993 , including , without limitation , a requirement that the County timely declare its official intent to reimburse certain expenditures with the proceeds of debt to be issued thereafter by the County b The Regulations expressly permit the statement of official intent to be declared either by the County as the issuer of the debt or by any person designated by the County to declare official intent on behalf of the County c The Board believes it is in the best interest of the County to designate each of the County Manager or Finance Officer , respectively , to declare official intent on behalf of the County as authorized by the Regulations Section 2 Designation of County Manager or Finance Officer to Declare Official Intent on Behalf of the County As permitted by the Regulations , either the County Manager or the Finance Officer , now or hereafter serving in such capacity , is hereby designated by the Board to declare official intent on behalf of the County to reimburse any and all expenditures with the proceeds of debt to be incurred by the County as the issuer of such debt Section 3 Effective Date This resolution shall take effect upon its passage 11 Public Hearing - 10 15 am - Request for Road Name Changes Advertised June 20 , 2003 in The Smithfield Herald The Chairman opened the public hearing and invited anyone who wished to address the Board on the following two requests for road name changes A Request from Bentonville Volunteer Fire Department to rename the southern one - half mile portion of SR 1188 , currently Mill Creek Church Road , to Buck Dunn Road County Manager , Rick Hester , informed the Board the Fire Department is requesting the renaming of this portion of the road because of the mismatched intersection with Harper House Road at Bentonville Battleground The mismatched intersection creates confusion for emergency vehicles , which is a major safety concern for the citizens along this portion of the road B Request from Cummins Atlantic Inc to rename Old River Road near exit 106 at Kenly to Cummins Drive Ernie Wilkerson of Kenly , who serves on the Economic Development Advisory Board , noted that Cummins Atlantic will be the anchor tenant on the road , where they are constructing a 40,000 sq ft facility at a cost of 25 million dollars This request is supported by both the emergency rescue services and Kenly Fire Department since there is a River Road in the general vicinity that could create confusion for emergency personnel A petition in support for this has been signed by property owners on the road with the exception of a few pieces of property that are currently under foreclosure or being sold There being no further comments , the Chairman closed the public hearing Road Names Changed Upon a motion by Commissioner Cookie Pope , seconded by Commissioner W Ray Woodall and carried by unanimous vote , the Board approved the following road name changes , based on the safety concerns and the need to clear up confusion for emergency personnel 12 Five Year Moratorium on Road Name Changes Except for Safety Concerns Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Cookie Pope and carried by unanimous vote , the Board placed a five - year moratorium on road name changes , with the exception of issues where safety is the concern 13 Plat Review Officer Appointed Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Cookie Pope and carried by unanimous vote , the Board adopted the following resolution appointing Tammy Adams Norris as a Johnston County Deputy Map and Plat Review Officer PagePage pageNumber9377 July 7 , 2003 10 00 Meeting Continued RESOLUTION OF APPOINTMENT th WHEREAS , NC Senate Bill 875 , ratified the 8 day of July , 1997 , revised Article 2 of Chapter 47 of the NC General Statutes by adding section 47 - 302 to require the Board of Commissioners of each county to designate by name one or more persons as a Review Officer to review each map and plat required to be submitted for review before recordation by the Register of Deeds ; and WHEREAS , the Johnston County Board of Commissioners has reviewed the requirements for this position and discussed the qualifications needed to perform this duty NOW , THEREFORE , the Johnston County Board of Commissioners does hereby appoint Tammy Adams Norris of the Customer Service Department as a Johnston County Deputy Map and Plat Review Officer th Adopted this the 7 day of July , 2003 14 Appointments Upon a motion by Commissioner W Ray Woodall , seconded by Commissioner Cookie Pope and carried by unanimous vote , the Board made the following appointments A Local Emergency Planning Committee Reappointed H Lee Barbee , Ricky Barbour , Don Heres and Eric Spaulding to 2 year terms to expire July 2005 B Town of Clayton - Planning and Zoning Board and Board of Adjustment - ETJ Appointments Appointed Franklin R Price to the Planning and Zoning Board and Donna White to the Board of Adjustment for terms to expire 12 2005 15 Discussion on Residential Sewer Service Policy The Board reviewed two options for a proposed updated residential sewer service policy County Manager , Rick Hester , explained the first option was developed by staff as a “ hybrid ” of two earlier proposals The second option was based on suggestions from Commissioner Thomas M Moore Commissioner Moore explained he met with staff and feels the policy should only direct allocation of sewer without being tied to other impact studies and analyses He noted these other studies may need to be made , but should not be a part of this policy Commissioner Allen L Mims , Jr stated he liked the brevity of Commissioner Moore’s proposal ; however , in his opinion , in order to really control growth , the County must look at the impact development has on traffic and schools He suggested it was a good plan to tie these studies to sewer allocation Commissioner Moore questioned how growth would be affected by requiring studies on certain types of development He noted people who want to move into the County will come anyway unless you put a moratorium on growth Commissioner Wade M Stewart asked about the open space issue and how the proposed analysis required in the staff policy option would affect the county Planning Director , Steven Finn , stated there are issues with the current open space policy , and the Planning Board has appointed a study committee to look at this and bring recommendation to the Board Following further discussion , Commissioner Allen L Mims , Jr moved the Board table a decision until staff has time to look at these two options and possibly merge them to bring back a revised proposal at the th August 11 meeting Commissioner Cookie Pope seconded the motion , which carried by unanimous vote 16 Public Hearing - Reclaimed Water Ordinance Advertised June 20 , 27 , 2003 in The Smithfield Herald The Chairman opened the public hearing and invited anyone who wished to address the Board on the proposed reclaimed water ordinance Kenneth York who works with the reclaimed water project gave an overview of how the program is progressing at this time Commissioner Cookie Pope asked when the nursery people will be able to receive this water for irrigation Engineer Tim Broome stated the system would be extended as soon as money is available to lay the necessary pipes Page0378 July 7 , 2003 10 00 Meeting Continued In response to a question from Commissioner Jeffrey P Carver , Mr Broome noted the program is funded by a 38 million State Clean Water Trust Fund grant and a low interest loan There is no fee for users at this time ; however , the County will probably charge for the energy costs when the program moves into new phases He pointed out it is much cheaper to subsidize this program than it would be to pay for nitrogen vouchers if the County were to allow too much nitrogen in the river There being no further comments , the Chairman closed the public hearing 17 Reclaimed Water Ordinance Adopted Upon a motion by Commissioner Allen L Mims , Jr , seconded by Commissioner Cookie Pope and carried by unanimous vote , the Board adopted the following Reclaimed Water Ordinance RECLAIMED WATER ORDINANCE Article IV , Chapter 24 Utilities Purpose and Intent It is the County’s purpose and intent to establish a reclaimed water system and to extend such system to certain areas of the County where the County Commissioners determine that the extension of such a system is practical and economical The reclaimed water distribution system will be constructed in sections and phases to provide reclaimed water service to designated areas as determined by the County Commissioners and pursuant to the terms and conditions set forth herein I Sale of Reclaimed Water from Special Facilities a Reclaimed water may be purchased from the County at designated facilities including special hydrants under the following conditions 1 The charge for such reclaimed water shall be at the rate established in the annual operating budget ordinance 2 When water is obtained through a reclaimed water hydrant , a meter must be provided to register the amount of water being purchased Only County employees shall attach or detach the hydrant meter 3 The charge for the use of a hydrant meter and accessory equipment shall be as established in the annual operating budget ordinance 4 The Utilities Department shall establish rules for the use of hydrant meters and accessory equipment , hours of operation , etc , as may be necessary II Reclaimed Water System Part of County Water System and Other Definitions The reclaimed water system is a part of the Johnston County Water and Sewer System To this end , the terms water system , water pipe , County water , water service , distribution system , meters , mains and other references to the reclaimed water system shall be deemed to include and mean such portions of the reclaimed water system For the purpose of this article , the definitions contained in this section shall apply unless otherwise specifically stated Irrigation means the act of applying water to the outdoor landscape by any means , including but not limited to the use of watering cans , hoses , sprinklers attached to hoses , installed underground sprinkler systems , and agricultural irrigation systems Landscape means the natural or modified ground outside the impervious surface of the property , or an agricultural field Available means that a reclaimed water distribution main is , or will be located at a property line or within a public right - of - way or easement contiguous with a property line on which an irrigation system is installed or proposed to be serviced with reclaimed water Cross - connection means any physical connection or arrangement which would allow the movement of fluids between the potable water system and any other fluid system , such as the reclaimed water system Customer means the Johnston County reclaimed water customer and the actual user of the reclaimed water Board of Commissioners means the duly elected governing Board of Johnston County Director means the Director of Infrastructure and Engineering of the Department of Public Utilities of Johnston County or his her designee Page1379 July 7 , 2003 10 00 Meeting Continued Distribution mains means those conduits used to supply reclaimed water to service lines from transmission mains Department means the Johnston County Department of Utilities Irrigation system means a device or combination of devices having a hose , pipe , or other conduit installed in the landscape which transmits County water , or reclaimed water , through which device or combination of devices County water , or a mixture of County water and chemicals is drawn and applied to residential or commercial lawns , landscapes , greenspaces , or agricultural lands Potable water means potable water treated or produced by the Johnston County water system , or any other public water system Reclaimed water means water that has received at least tertiary treatment , meets water quality requirements defined by the North Carolina Rules defined hereafter and is reused after flowing out of a wastewater treatment facility Reclaimed water system means all equipment , pumps , piping , valves , tanks , and associated hardware and other appurtenances , including meters , from the customer’s reclaimed water meter back to , and including the reclaimed water production and pumping facility North Carolina Rules means the regulations for reclaimed water and water reuse as stated in the North Carolina Administrative Code Section 15A NCAC 2H 0200 as amended from time to time Service line means that conduit for reclaimed water from the distribution main to the property line Transmission mains means those conduits used to supply reclaimed water from the pumping station or treatment plant to the distribution mains III General Once reclaimed water is available to property , the property owner may connect to the reclaimed water system upon submission of a fully executed application as required by the Director , and upon compliance with all other County requirements Reclaimed water may be used for irrigation purposes and for other nonpotable water purposes in accordance with federal , state and local ordinances , rules and regulations If reclaimed water is to be used for any purpose other than land application , the customer shall obtain prior approval of such use from the Director As an incentive to development of an initial demonstration phase of this project , customers that have signed letters of intent for the initial phase of the reclaimed water project may have conditions in their agreements with the County that are different from the conditions in this article IV Rules for Use of Reclaimed Water Rules and regulations governing the use of reclaimed water are contained in the North Carolina Administrative Code Section 15A NCAC 2H 0200 as amended from time to time Other requirements are contained in Permit No WQ 0019631 issued to the Johnston County Water Reclaimation Facility on March 27 , 2002 Additional requirements are contained in County policy relating to reclaimed water applications , inspections , education , etc All other rules governing the use of reclaimed water require approval of the Johnston County Board of Commissioners V Penalties for Misuse of Reclaimed Water a Each day a violation occurs is a separate violation Any person violating this section may be cited for each day on which a violation occurs b Penalties for violation of this section are as set forth herein The County may use any one 1 or combination , of penalties and enforcement mechanisms Imposition of one 1 or more penalties for any violation shall not excuse any violation or permit it to continue 1 Civil penalties Violation of this section shall subject the violator to a civil penalty of one hundred dollars 10000 for the first violation , two hundred and fifty dollars 25000 for the second violation , and five hundred dollars 50000 for the third violation Violators shall be issued a written citation that must be paid within two 2 weeks of the service date of the citation The citation may be served by personal delivery or by certified or registered mail , return receipt requested The citation shall describe the violation and shall specify the amount of the civil penalty levied The civil penalty is collectible in a civil action in the nature of the debt The County Attorney , or designee , is authorized to file suit on behalf of the County to collect any unpaid citations , and the County Manager , the Director of Infrastructure andPage2380 July 7 , 2003 10 00 Meeting Continued Engineering , or their designee is authorized to verify and sign complaints on behalf of the County The Director of Infrastructure and Engineering , his designee , or other authorized County employee may issue a citation for violations of this section 2 Criminal Penalties In addition to or in lieu of civil penalties , violation of this section shall constitute a class 3 misdemeanor , pursuant to GS 14 - 4 and GS 160A175 , as amended , punishable for each violation by a fine of up to five hundred dollars 50000 and or incarceration for up to thirty 30 days A police officer may initiate the criminal process as provided by law 3 Other Injunction , order of abatement , and other appropriate legal and equitable remedies may also enforce this section c Emergency suspension of service The Director may restrict or suspend reclaimed water service to any person who violates the rules and regulations on two or more occasions or if a reclaimed water emergency exists The Director or his her designee shall make findings of fact to indicate the nature of the emergency and the actions of that person that exacerbates the emergency The Director may order that reclaimed water service to that person be suspended for a specified period of time Suspension of reclaimed water service shall be performed in accordance with the County’s ordinances , policies , practices , and procedures In the event that the Director orders that irrigation be suspended for a specified period of time , the Director or his her designee shall have the right and privilege to access , on private property if necessary , all necessary valves , hydrants , or flow restriction devices to isolate the flow of reclaimed water to the irrigation system VI Connection to Reclaimed Water System a Customers with existing irrigation systems Customers with existing irrigation systems using potable water who desire to continue to maintain such systems using County reclaimed water , must apply for reclaimed water in accordance with the application procedures specified in this article and must disconnect said systems from the County potable water system and connect to the reclaimed water system b Customers with new irrigation systems All new irrigation systems designed to use County reclaimed water constructed after the effective date of this article may connect to the reclaimed water system at construction , if reclaimed water is available to the property Such connection must be made prior to , or contemporaneously with connection of other improvements on the property to the County’s potable water system , if available VII Reclaimed Water Service Application Requirements Applications for reclaimed water service shall be made and will be accepted in the same manner as applications for water and sewer service , subject to the provisions of this article In addition , the Johnston County Department of Public Utilities has specific procedures and policies in place for servicing , regulating , billing , and collecting of bills of utility customers Such policies , along with all policies and procedures concerning enforcement and fining and setting standards for the design and installation of utility pipelines and other appurtenances apply to the reclaimed water system , including its design , installation , and maintenance VIII Installation of Lines and Easement Dedications The County will be responsible for reclaimed water service lines to the applicant’s property line , provided easements or other access is available to the County The applicant shall be responsible for all costs and expenses of installation and maintenance of the reclaimed water line and all appurtenances from their property line on their property including a service meter No reclaimed water lines or other facilities will be installed or accepted by the County for maintenance unless such lines or facilities are in a dedicated public right - of - way or dedicated public easement Any new easement shall be adequately sized to accommodate construction and maintenance of the reclaimed water line or system component No obstruction of any kind shall be planted , built , or otherwise created within the limits of the easement or right - of - way without written permission of the Director IX Permits All applicants for reclaimed water , at the applicant’s own cost and expense , shall apply for , obtain , and meet all requirements of Johnston County’s policies for design , installation , and operation of reclaimed water systems X Authority to Adopt Rules and Regulations The Board of Commissioners may by resolution establish reasonable rules and regulations concerning the reclaimed water system and the use of reclaimed water Additional standard policies and procedures may be adopted concerning the reclaimed water system Insofar as there is no conflict with the provisions of this article , County policies and procedures pertaining to potable water service shall apply Page3381 July 7 , 2003 10 00 Meeting Continued XI Authority to Adopt Rates , Fees , and Charges The Board of Commissioners may by resolution , duly adopted after a public hearing , establish rates , fees , and charges for the reclaimed water system and provide terms and conditions for the payment and collection of same After the initial establishment of reclaimed water rates , and fee or charge for connection to the reclaimed water system , these rates , fees and charges will normally be reviewed and adjusted annually as part of the annual budgeting cycle XII Priorities for Extending Reclaimed Water Service The Board of Commissioners will establish priorities for extension of the reclaimed water system , as it does for water and sewer system extensions The Board of Commissioners may establish priorities for extension of service outside the normal utility service boundaries Provision of reclaimed water service outside these limits will be considered on a case - by - case basis XIII Conditions of Reclaimed Water Service Use a General The County may terminate , discontinue , or suspend reclaimed water service in accordance with County policies and procedures in the event of i a violation of this article or County regulations , policies or procedures , ii failure to pay bills by the due date , iii tampering with any utility service , iv the existence of plumbing cross - connections with another water source , or v any customer condition or action that may be detrimental to the County’s potable water system , its reclaimed water system , or its wastewater collection and treatment system The County may , at its option , suspend service until the condition is corrected and all costs due the County are paid These costs may include delinquent billings , connection charges , and payment for any damages caused to the reclaimed water , wastewater collection , or water distribution systems The details of the County’s procedures for discontinuing service are found in appropriate County policies b Cross - connection control There shall be no cross connections between the reclaimed water system on a customer’s property and the County potable water system In all premises where reclaimed water service is provided , the public or private potable water supply shall be protected by an approved cross - connection control plan The plan for cross - connection control must be submitted with the application for reclaimed water service and must receive the prior approval of the Director In the event a cross - connection is found , the cross - connection shall be immediately disconnected , and reclaimed water service will be suspended Before reconnection of the reclaimed water service , the public potable water system shall be protected against the possibility of future cross connections to the Director’s satisfaction Additional protection against cross - connection may be required as specified by the director at the customer’s expense before reclaimed water service is resumed c Right of entry In addition to the authority to enter property contained in sections VI and VIII the Director or his her designated representative may enter any premises to determine the presence of any cross connections or other potential hazards to the County potable water system Each customer of reclaimed water service shall , by completing the reclaimed water application , give written consent to such entry upon the customer’s premises XIV Service Interruption The County reserves the right to temporarily discontinue service to any portion or all of the reclaimed water system as deemed necessary by the Director In addition , the Director shall have the authority to establish schedules which restrict the use of reclaimed water at certain times in order to reduce maximum hydraulic demands on the system and to regulate usage during periods of limited reclaimed water availability XV Maintenance by Customer The property owner and or customer shall be responsible for the maintenance of all reclaimed water lines and appurtenances on the customer’s property , unless the meter was , of necessity , located beyond the customer’s property line , in which case the customer shall be responsible for all reclaimed water lines and appurtenances on the customer’s side of the meter The County reserves the right to disconnect the service to any property when the reclaimed water system and appurtenances are not properly maintained XVI Conservation of Water Resources It is the policy of Johnston County to wisely use natural resources In addition to all other conservation measures contained in this chapter , the County may terminate , suspend or discontinue reclaimed water service if customer usage of reclaimed water increases substantially over the overall loading rates outlined in the customer’s application for service XVII Right to Refuse Service The County makes no guarantees that reclaimed water service will be provided , or once provided , continued The County may , at any time , and from time to time , refuse to extend or suspend or terminate service on the basis of a use detrimental to the system , an inadequate supply of reclaimed water , the failure to pay requiredPage4382 July 7 , 2003 10 00 Meeting Continued fees , or for any other reason which , in the judgment of the Director , will cause the continuation of service not to be to the benefit of the County XVIII Ownership by County All reclaimed water facilities and appurtenances within dedi