March 4, 1996 - 10:00 AM - County Board of Commissioners Meeting Minutes

March 4, 1996The Johnston County Board of Commissioners met in regular session Monday,March 4, 1996, at 10 oclock am in the Commissioners Room, Johnston CountyCourthouse Annex, Smithfield, North Carolina, with the following membersPresent Norman C Denning, Chairman, Dr John M Booker, Vice Chairman,James W Cash, Jerry F Wood, DDS, Cecil M Massengill, Eleanor NCreech and Cookie PopeAbsent NoneAlso Present Richard B Self, County Manager, and Joyce H Ennis, Clerk to the BoardThe Chairman called the meeting to order and the following business wastransactedMinutesThe Chairman asked if there were any corrections to the minutes of the February5, 1996 board meeting There being no corrections, the Chairman declared the minutesapproved as presented2 250th Birthday Celebration - Commissioner ParticipationBecky Renfrow, Vivia Creech, and Karen McFarland, members of the 250thCelebration Committee, updated the Board on the upcoming events Ms Renfrowexplained there will be a list compiled of all officials who have served the Countythroughout the ages The Committee would like for the current Board of Commissionersto participate in the re-enactment of the signing of the charter during the June 29thprogram and also on a float in the various parades The Commissioners will need to be inperiod costume On the float, the committee plans for the two lady Commissioners to holdWomens Suffrage signs to depict another period of our historyKaren McFarland, herself dressed in period costume, informed the Board that onealterative would be to rent the attire, however, costume makers are available to sew thecostumes, which could later be donated to the new museum Mary Porter, designer of 18thCentury clothes, offered her assistance3 Public Hearing Rezoning CaseAdvertised Feb 20, 27, 1996 - The Smithfield HeraldCertified letters were mailed to adjoining property owners on February 21,1996, and notices were posted at the locations on February 21, 1996The Chairman opened the public hearing and invited anyone who wished toaddress the Board on the following rezoning requestsCASE #141 Petition to rezone approximately 177 acres located on SR 1136Meadowbrook Road in Meadow Township from AR R-40 to Community Business,2 Owners and Applicants Gary and Linda MizeCal Genereux and Kyle Richter from the Planning Department pointed out the areaon a map Mr Genereux stated Mr Mize plans to convert an existing potato warehouseinto a sales and repair farm implement business He noted some concern was expressedat the Planning Board meeting about the types of businesses a Community Business-2zoning would allow in the future if Mr Mize were to sell the property He stated that afterhearing Mr Mizes plans and his assurance that the property would be a tractor businessonly, the Planning Board recommended approval of the rezoningCommissioner Cookie Pope stated she still felt there was lack of guarantee of futureuse of this property240Mr Brian Mize, the owners son, explained their tractor dealership is a familyowned business which already operates in Wake County This expansion into JohnstonCounty will require a large investment for their future The family has no intention ofselling the propertyThere being no further comments, the Chairman closed the public hearing4 Decision on Rezoning Case #141Based on the Planning Boards recommendation, Commissioner Cecil M Massengillmoved the Board approve rezoning case #141 for Gary and Linda Mize of 177 acres on SR1136 in Meadow Township from AR R-40 to Community Va ?s]Imer Eleanor N Cuechseconded the motion, which carried by the following voteAyes Norman C Denning, John M Booker, James W Cash, Jerry F Wood,Eleanor N Creech, and Cecil M MassengillNay Cookie Pope5 Department of Transportation - Addition to SystemThe Board reviewed petitions presented by the North Carolina Department ofTransportation requesting the following roads be added to the State Secondary System formaintenancePineb ark Lane and Valley Court in Forest Park Section II Subdivision, ClaytonTownship; Peach Orchard Drive in Desert Pines Subdivision, Phases I II,Pleasant Grove Township; Harris Road and Hobson Lane in Glad AcresSubdivision, Phases 1 2, Smithfield TownshipFollowing review, Commissioner James W Cash moved the Board concur with theNC Department of Transportations request to add the roads listed above to the StateMaintained System Commissioner Jerry F Wood seconded the motion, which carried byunanimous vote6 Request to Abandon Portion of SR 1587 and Add New Portion Due toRealignmentWhile paving SR 1587 as a part of the 1994-95 Secondary Road ConstructionProgram, the Department of Transportation realigned a section of the road in an effort toincrease safety at a curve DOT is now requesting the Board concur with abandonmentof the old alignment and the addition of the realigned segment to the State MaintainedSystemFollowing discussion, Commissioner Cookie Pope moved the Board concur with therequest from DOT to abandon aportion of SR 1587 where the roadway was realigned, andadd to the system the new realigned section of the roadCommissioner Eleanor N Creech seconded the motion, which carriedby unanimousvote7 Reauest to rename Portion of Motorcvcle Road - Beckv FinchBecky Flowers Finch, property owner in Wilders Township, informed the Board sheplans to develop a subdivision on her property and would like to rename the portion ofMotorcycle Road which will run through her developed area The unpaved statemaintained secondary road extends from the new Cleveland School site, through herproperty and then continues through other properties before intersecting with Hwy 42She plans to build two connector roads from Hwy 42 and pave the interconnecting portionof Motorcycle Road, thus creating a loop road through her proposed development With theCountys permission, she plans to name the new connector roads Neuse River ParkwayShe requested the County agree to rename the 12,000 linear ft interconnecting portion ofMotorcycle Road the same name, Neuse River Parkway, when the moratorium onrenaming roads expires in 1998 She noted any lots she would sell along the road prior toits renaming would contain language on the deeds agreeing with this name change241The Board assured Ms Finch this would be no problem as her development wouldbe the only property involved Further, they agreed that if Ms Finch completes the entireroad project prior to 1998 - building the two connector roads and completely paving theinterconnecting portion on her property - they would be willing to consider this a new roadand would allow her to name it at that time8 Archer Lodge Fire Department - Reauest for EMS Franchise - 2nd VoteAt the recommendation of the EMS Advisory Board, the Commissioners approvedat first reading in February a First Responder Level franchise for Archer Lodge FireDepartmentSecond VoteUpon a motion by Commissioner Jerry F Wood, seconded by Commissioner JamesW Cash and carried by unanimous vote, the Board, on a second vote, approved franchiseat First Responder Level for Archers Lodge Fire Department9 HAPP - New Federal Regulations - Revised Administrative PlanAnne Eason, Director of HAPP, presented the revised Administrative Plan forJohnston County Housing Assistance Payments Program New legislative changes includea minimum tenant rent of 25 per month and the suspension of Federal Preferencesthrough September 30, 1996 The Plan also offers two additional local housing qualitystandards 1 owners to be responsible for supplying a means of heat in every unit rentedafter April 1, 1996, unless the tenant mutually agrees in writing to use their own heater;and 2 tenants to be held responsible for exterminating for roaches and or rodents if theunit is roach and rodent free when they move in and a problem develops A furtherprovision excludes owners from participating in the HAPP Program if they have beenconvicted of a violent or drug related crime in the past three yearsThe Board questioned whether tenants should be held responsible for rodentproblems since rodents tend to invade any building when the weather turns cold MsEason agreed and stated she would delete rodent from the standardUpon a motion by Commissioner Jerry F Wood, seconded by Commissioner JamesW Cash and carried by unanimous vote, the Board approved the revised AdministrativePlan for Johnston County HAPP excluding the reference to rodents in the second localhousing quality standard10 Lighting of Ballfield at Smithfield- Selma High SchoolWalter Daughtry, Chairman of the Smithfield- Selma High School Advisory Board,spoke on behalf of the faculty and parents of SSS about the lack of lighting on the schoolsbaseball field He stated the Smithfield Civitan Club would like to use the field for theirsummer program and have agreed to help raise money for lights Estimated cost, based onthe new standards and regulations, would be 74,000 The School Board has promised15,000, andthe Civitan Club has raised an additional 17,000 with some in-kindservicesdonated which could cut down on the cost somewhat He asked the Board to assist in thisprojectChairman Norman C Denning responded the Board has assisted other schools byproviding 40 of the cost with a ceiling set at 24,000County Manager, Richard B Self, suggested an arrangement with the School Boardmight be worked out whereby the County would administer the project and thereby savethe sales tax as the County is exempt This would be an additional savings ofapproximately 3200Following discussion, Commissioner Jerry F Wood moved the Board appropriate24,000 for lighting of the Smithfield- Selma High School baseball field, approve thefollowing budget amendment and authorize the County Manager to coordinate the projectwith the Board of Education to deal with sales tax savings Commissioner Cookie Popeseconded the motion, which carried by unanimous voteExpenditure Increase10 58557014Expenditure Decrease10 58555710SSS Lighting Ball FieldContingencies11 Budget Amendments ApprovedA Department of Social Services24224,0000024,00000Upon a motion by Commissioner John M Booker, seconded by CommissionerEleanor N Creech and carried by unanimous vote, the Board approved the followingbudget amendments for the Department of Social ServicesExpenditure Increase - Additional AFDC-EA revenue through 129510 61451901AFDC-EA8,22800Revenue Increase10 610034123Social Services Administration8,22800Expenditure Increase- Additional AFDC-EA revenue through129510 61451901AFDC-EA5973Revenue Increase10 610034124AFDC Emergency Assistance5973Expenditure Increase- Admin receipts from 795 - 129510 61001400Travel2199210 61003200Office Supplies100010 61003211Verifications110010 61003330Foster Childrens Christmas282610 61005700Miscellaneous Expense250010 61354523Contract Program Expense8310010 61401905IV-E Foster Care6074810 61401906State Foster Care9125010 61504515APP Program Expense33125TOTAL2,97641Revenue Increase10 610034123Social Services Administration2,97641Expenditure Increase-Additional receipts for Child Day Care10 61304522Child Day Care - FSA57500Revenue Increase10 610034119Child Day Care - FSA57500Expenditure Increase- Anticipated additional funds for fostercare10 61451905IV-E Foster Care33,0000010 61451906State Foster Care11,50000Revenue Increase10 610034121Public Assistance44,50000Expenditure Increase- Increase in POC Day Care Funds10 61304519POC Day Care89,93100Revenue Increase10 610034120Child Day Care - Non-FSA89,93100Expenditure Increase- Increase in JOBSWork First ProgramFunds10 61354523Contract Program Expense16,98400Revenue Increase10 610034123Social Services Administration16,98400Expenditure Increase- Increase in CP L Project Share ProgramFunds10 61101911Carolina Power Light53,40800Revenue Increase10 610034123Social Services Administration53,40800243Expenditure Increase - Increase in CP L Project Share Program Funds10 61101911Carolina Power Light6,50700Revenue IncreaseTravel2000010 610034123Social Services Administration6,50700Expenditure Increase -Increase in COA Block Grant Aging Program Funds10 61204505Home Delivered Meals15,9970010 61204508In-Home Services4,9940010 61204512Information Case Assistance4,6710010 61204513Congregate Meals2,7030010 61204514Senior Center Operations3,52900Expenditure Decrease10 61204506General Transportation5,07900TOTAL26,81500Revenue Increase10 610034126Triangle J-Block Grant Aging26,81500Expenditure Decrease- Decrease for Crisis Intervention Program10 61101909Crisis45,92200Revenue Decrease10 610034123Social Services Administration45,92200Expenditure Decrease- Decrease for Crisis Intervention Program10 61101909Crisis7,47800Revenue Decrease10 610034123Social Services Administration7,47800Expenditure Decrease- Decrease for State Adult Day Care Program10 61304502Adult Day Care81800Revenue Decrease10 610034123Social Services Administration81800Commissioner Jerry F Wood moved the Board approve the following budgetamendments Commissioner Eleanor N Creech seconded the motion, which carried byunanimous voteB Health DepartmentExpenditure Increase10 5910740010 59454600Revenue Increase10 59103410810 594534112Expenditure Increase10 59107400Revenue Increase10 591034108C JuvenileExpenditure Increase10 5130020010 5130050110 5130061010 5130070010 51300701Expenditure Decrease10 5130110010 5130120010 5130140010 51301410Child Lead Poisoning CaseCapital Outlay - Environmental 60000Medical Supplies - Child Health 60000DEHNR Env Health Div 60000DEHNR Env Health Div 60000Env Health - fees - Food Lodging inspectionsCapital Outlay 3,07156DEHNR Food Lodging3,07156Additional CBA Funds for Juvenile Restitution ProgSalaries Wages 5,03800Social Security 38400Life Insurance 500Retirement 25000401K 14900Telephone6500Printing10000Travel20000Employee Training2000024410 51303100Fuels2500010 51305400Insurance Bonds1,5660010 51307400Capital Outlay30000TOTAL3,14500Revenue Increase10 510034102State Juvenile Restitution3,14500D Public Utility - WaterExpenditure Increase- Unbudgeted Water Fees received6778004500Contracted Services4,250006778507400Capital Outlay - Meters9,53000Revenue Increase67685036174Construction Manag Fees4,2500067785036191Meter Fees9,5300012 Citizens Complaint - Mobile HomesCarolyn Crocker spoke to the Board on behalf of her mother, Mary Elizabeth Lynch,and a group of neighbors on Hatcher Road off Hwy 39 north of Selma She informed theBoard that Richard Sauls has purchased land in their neighborhood and her understandingis that he plans to create a mobile home park on the property She stated those inattendance came to oppose Mr Sauls plans Ms Crocker stressed the neighbors do notoppose mobile homes in general, as long as they are neat and well maintained She showedphotographs of trailers on Mr Sauls property off Hwy 96 and stated, in her opinion, thesedo not represent the type of homes they want in their neighborhood She noted there aremany elderly couples and widows who live in the area, and they are concerned that such• development might jeopardize their wellbeing She questioned how Mr Sauls could have• mobile home park without a public hearing where neighbors could object, and asked ifhe would be required to follow some restrictions, such as landscaping and underpinningShe presented a petition with 80 signatures opposing unrestricted mobile homes on theSauls propertyCounty Planner, Cal Genereux, explained the County can regulate how propertyis used, but can not regulate how property is owned Mobile Home Parks created by theCountys ordinance have strict regulations, however, if Mr Sauls deeds the property todifferent persons, each landowner may apply for two mobile home permits without creatinga mobile home park The County has consulted private attorneys as well as staff at theInstitute of Government about similar situations, but has been unable to find a way toprevent this from happening He pointed out, however, that at present, Mr Sauls haspresented only one lot to the Planning Department and has applied for only two mobilehome permits When more than seven lots are developed by the same person, the propertywould be considered a major subdivision and would have to go before the Planning Boardfor approval There are no restrictions on individual property owners as long as no morethan two rental mobile homes are placed on their individual tractsRichard Sauls responded he purchased the property at a public auction and seesrenting mobile home lots as a way to make money on his investment He explained he hasother property he has developed in a similar manner and has had no problems He offeredto sell the property to anyone who would make a reasonable offerSeveral others in attendance spoke Ms Connie Eason stated Mr Sauls informedher he was planning to put trailers on the property and could do so by deeding the propertyto different members of his family and other associates She and others voiced concernthat this type of development might attract undesirable neighbors Ms Hazel Cross notedshe has never been afraid to live alone over the past 12 years, and would like to know shecould continue to feel safe in her neighborhoodCommissioner John M Booker stated he could understand Mr Sauls desire torealize a profit on his investment, but could also understand the concerns of theneighborhood He asked Mr Sauls to work with the neighbors and keep their feelings inmind when developing the property245Commissioner Eleanor N Creech commented she could understand the neighborsconcern that the property might not be compatible with the rest of the neighborhood Shealso noted she understood Mr Sauls desire to realize a return on his investment, however,being a concerned neighbor, in her opinion, might build a better investment in the longrunChairman Denning thanked those present for expressing their concerns and statedthe Board would do anything within the Countys authority to preserve the welfare andsafety of the community13 Award of Bids Cleveland School AdditionThe Board reviewed the following bids received on February 27, 1996, for theCleveland Elementary School Expansion projectGENERAL CONTRACTAmerican South, Sanford, NC - Base Bid 809,000Alt G-1Alt G-2Alt G-3Alt G-4Alt G-5Alt G-6-75,0008,7002,3002,8004,500Hargis Construction,Alt G-8Smithfield, NC - Base Bid 749,000478Alt G-1Alt G-2Alt G-3Alt G-4Alt G-5Alt G-6-74,30019,0008,0001,2602,0004,200H M Kern Corporation, Greensboro,NC- Base Bid- 706,300Alt G-1Alt G-2Alt G-3Alt G-4Alt G-5Alt G-6-71,00017,00028,0001,2001,9104,000Stephenson, GC, Smithfield,NC - Base Bid - 837,160Alt G-1Alt G-2Alt G-3Alt G-4Alt G-5Alt G-6-60,00020,8179,4602,0172,8194,015P L U M B I N GABC Plumbing, Clayton, NCBraxton Britt, Wilson, NCTriangle Mechanical, Garner, NCW M Wiggins, Co, Wilson, NCC O NBASE BID56,01959,10078,63866,000Alt G-7Alt G-8500Alt G-7Alt G-8330Alt G-7Alt G-8370100Alt G-7Alt G-8242478T R A CAlt PL-1-2,955-2,500-4,843-1,500MECHANICAL CONTRACT BASE BID Alt ME-1 Alt ME-2 Alt ME-3Central Htg Air,Kinston, NC270,720-15,900-37,100 Henry Baker Htg,Wilson, NC283,000-15,500-43,000 Multi-Temp Corp,Wilson, NC294,888-14,858-37,000 Southern Piping, Raleigh, NC253,419-11,611-38,252 Watco Corp Raleigh,NC292,500-9,200-42,000 TELECTRICAL CONTRACT BASE BID Alt EL-1 Alt EL-2 Alt EL-3 Alt EL-4H L Electrical, Garner, NC 159,366 -12,272 -2,570 670Triple-R Elec, Kinston, NC 167,970 -14,000 -6,500 1,250 930Watson Elec, Wilson, NC 146,718 -15,447 -5,300 750Tom Davis, Deputy Superintendent of Schools, stated the Board of Education hasreviewed the bids and recommended award to the following biddersGeneral Contract - H M Kern Corporation of Greensboro, NC - low base bid plusalternates G-7 and G-8 - Total Bid 706,770Plumbing Contract - ABC Plumbing of Clayton, NC - low base bid of 56,019Mechanical Contract - Southern Piping of Raleigh, NC - low base bid and deductalternate ME-2 - Total Bid 215,167Electrical Contract - Watson Electric, Wilson, NC - low base bid, deduct alternateEL-2 and alternate EL-4 - Total Bid 142,168Mr Davis noted the project consist of a 10 classroom addition to the ClevelandElementary School and couldbe funded through three sources 600,000 from Certificatesof Participation revenue, 400,000 from the General Obligation Bond money, and theremaining 383,145 from next years ADM money, if approved by the County246The Board discussed the continuing growth in the western portion of the CountySuperintendent of Schools, James Causby, responded that current projections inpopulation growth indicate three new elementary schools will be needed in westernJohnston County in the near futureIn response to a question about the cost of design for school projects, Dr Causbynoted the new school at Glendale Kenly will be the first in the County built according tothe USA standard designFollowing further discussion, Commissioner Cookie Pope moved the Board awardcontracts on the Cleveland Elementary School Addition as recommended by the Board ofEducation at a total project cost for design, site work, furnishings, testing and fees of1,383,145, and approve 383,145 of the 1996-97 ADM funds for this projectCommissioner Pope further moved the Board agreed to reimburse the Board of Education,once funds are received, for money spent on this project Commissioner Jerry F Woodseconded the motion, which carried by unanimous vote14 Authorization to Advertise for Bids - Laboratory Furniture for Water PlantUpon a motion by Commissioner John M Booker, seconded by Commissioner JerryF Wood and carried by unanimous vote, the Board authorized advertisement for bids forlaboratory furniture for the new water plant15 Water Meter Fees for Large TapsCounty Manager, Richard Self, informed the Board the County currently chargesa 75 meter fee for water taps This was designed for residential users who traditionallyinstall 34 to 1 meters When larger meters are installed, the 75 does not cover the costsHe asked the Board to consider amending the policy to allow the County to include the costfor larger than 1 meters in the cost for the tapIn discussion, Chairman Denning stated, in his opinion, the costs of the meter,whatever the size, should be covered by the feeFollowing further discussion, Commissioner John M Booker moved the Boardapprove an amendment to the Retail Water Policy to allow the County to include the costfor larger than 1 meters in the cost of the tap Commissioner James W Cash secondedthe motion, which carried by unanimous vote16 Solid Waste - Phase V - Subtitle D LandfillThe County Manager informed the Board the proposed Subtitle D Landfillconstruction project is ready to go out for bids Before proceeding with this final stage, heasked the Board to review the related costs and the proposed increases in tipping feeswhich will be necessary to offset these costs, and decide if they wish to proceed or consideralternativesHaywood Phthisic, Public Utilities Director, stated a projected total cost for phase• construction, operation, closure and post closure would be 7,330,000 The life of phase• has been projected to be five years, however with the growth in population, it wouldlikely be less At present the County has land for four cells 37 million has been reservedfor the solid waste program, however, it will cost approximately 38 million additionaldollars to close out the existing landfill He recommended an increase in tipping fees forFY 96-97 to 31 per ton with additional increases, up to 38, over the following two yearsHe noted the increase in tipping fees would probably cost the County some commercialhaulers as customers The present landfill has only approximately 9 months left, therefore,a decision must be made as soon as possible He pointed out the County could proceed withadvertising for bids, which would take approximately 60 days before award, and use theintervening time to review the alternativesIt was the consensus of the Board that this decision needs serious consideration asit would impact the County for many years to come247Following further discussion, Commissioner John M Booker moved the Boardauthorize advertisement for bids on Phase V Subtitle D landfill, and request that RichardSelf, Haywood Phthisic, and Tim Broome with McKim Creed Engineers, compileadditional data and come back to the Board for further study and review within the next30 days Commissioner Jerry F Wood seconded the motion, which carried by unanimousvote17 Clarification of Commissioners Residencv DistrictsIn order to clarify the record, Commissioner Jerry F Wood moved the Boardofficially state that Commissioner Residency Districts formed on September 4, 1990, canonly be altered by action initiated by the Board Commissioner John M Booker secondedthe motion, which carried by unanimous vote18 Resolution First Issuance of 50 Million General Obligation School Bonds inthe Amount of 19,500,000The following resolution was discussed and its title was readRESOLUTION AUTHORIZING THE ISSUANCE AND SALE OFAPPROXIMATELY 19,500,000 GENERAL OBLIGATION SCHOOL BONDSOF JOHNSTON COUNTY, SERIES 1996 PURSUANT TO A BOND ORDERHERETOFORE APPROVED AND PROVIDING FOR THE FORM, DETAILSAND PAYMENT THEREOFWHEREAS, the Bond Order hereinafter described was authorized and adopted bythe Board of Commissioners of Johnston County the Board on September 15, 1995; andWHEREAS, the Board desires to provide for the issuance of 19,500,000 in generalobligation school bonds to finance the costs of school facilities;NOW, THEREFORE, the Board of Commissioners of Johnston County, meeting inregular session at Smithfield, North Carolina, on March 4, 1996, do the followingBE IT RESOLVED BY THE BOARD OF COMMISSIONERS FOR JOHNSTONCOUNTY1The County shall issue its general obligation schoolbonds in an aggregate principalamount of 19,500,000 the Bonds, pursuant to and in accordance with the Bond OrderentitledBOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATIONSCHOOL BONDS OF JOHNSTON COUNTY IN THE MAXIMUM AGGREGATEPRINCIPAL AMOUNT OF 50,000,000 FOR THE PURPOSE OF FINANCING,IN PART, THE ACQUISITION, CONSTRUCTION AND EQUIPPING OFSCHOOL FACILITIES IN JOHNSTON COUNTY2The Bonds shall be designated 19,500,000 General Obligation School Bonds,Series 1996 and shall be dated April 1, 1996 The Bonds shall mature in annualinstallments on February 1 in the years and amounts as followsYear Amount1997 400,0001998 400,0001999 600,0002000 1,600,0002001 1,600,0002002 1,600,0002003 1,600,0002004 1,600,0002005 1,600,0002006 1,600,0002007 1,600,0002008 1,600,0002009 1,600,0002010 1,600,0002011 500,000NA •Each Bond shall bear interest at such rate as shall be determined by the County Managerand the LGC, as hereafter defined, at the time of sale, provided no interest rate or anyBond shall exceed seven percent 7 , payable on August 1, 1996, and semiannuallythereafter on each February 1 and August 1Initially, one bond certificate for each maturity of each series of the Bonds will beissued to The Depository Trust Company, New York, New York DTC, and immobilizedin its custody So long as DTC is securities depository for the Bonds, a book-entry systemwill be employed, evidencing ownership of the Bonds in principal amounts of 5,000 ormultiples thereof, with transfers of ownership effected on the records of DTC and itsparticipants pursuant to rules and procedures established by DTC and its participantsInterest on the Bonds will be payable in clearing house funds to DTC or its nominee asregistered owner of the Bonds Transfer of principal and interest payments to participantsOf DTC will be the responsibility of DTC; transfer of principal and interest payments tobeneficial owners by participants of DTC will be the responsibility of such participants andother nominees of beneficial owners The County will not be responsible or liable formaintaining, supervising or reviewing the records maintained by DTC, its participants orpersons acting through such participantsIn the event that a DTC determines not to continue to act as securities depositoryfor the Bonds or b the County Manager determines that continuation of the book-entrysystem of evidence and transfer of ownership of the Bonds would adversely affect theinterests of the beneficial owners of the Bonds, the County will discontinue the book-entrysystem with DTC If the County fails to identify another qualified securities depository toreplace DTC, the County will authenticate and deliver replacement Bonds in the form offully registered certificates, and registration of transfer of the Bonds will be permitted asdescribed in paragraph 73 The Bonds maturing prior to February 1, 2007, will not be subject toredemption prior to maturity The Bonds maturing on or after February 1, 2007, will besubject to redemption prior to maturity, at the option of the County, from any moneys thatmay be made available for such purpose, either in whole on any date not earlier thanFebruary 1, 2006 or in part in multiples of 5,000 of principal amount in inverse orderof their maturities on any interest payment date not earlier than February 1, 2006, at theprincipal amount of the Bonds to be redeemed together with interest accrued thereon tothe date fixed for redemption, plus a redemption premium of 12 of 1 of the principalamount of each Bond to be redeemed for each calendar year or part thereof between theredemption date and the maturity date of such Bond to be redeemed, such premium notto exceed 2 of such principal amount If less than all of the Bonds of any one maturityof a series shall be called for redemption, the particular Bonds or portions of Bonds to beredeemed shall be selected by lot by the County in such manner as the County maydetermine, provided, that DTC and its participants shall determine which Bonds are to beredeemed by lot so long as a book-entry system with DTC is continuedNotice of redemption shall be given by facsimile transmission, registered or certifiedmail or overnight express delivery to DTC or its nominee as the registered owner of theBonds Such notice shall be sent or mailed not more than 60 nor less than 30 days priorto the date fixed for redemption The County will not be responsible for sending or mailingnotices of redemption to anyone other than DTC or its nominee unless no qualifiedsecurities depository is the registered owner of the Bonds If no qualified securitiesdepository is the registered owner of the Bonds, notice of redemption will be sent or mailedto the registered owners not less than 30 days prior to the date fixed for redemption4 The Bonds shall be signed by the manual or facsimile signature of theChairman of the Board of Commissioners of the County, shall be countersigned by themanual or facsimile signature of the Clerk to the Board and a manual or facsimile of theCountys seal shall be printed or affixed thereon No Bond shall be valid until it has beenendorsed by the manual or facsimile signature of the authorized representative of theNorth Carolina Local Government Commission the LGC5 The Bonds shall be in substantially the following form, the terms andrequirements of which are incorporated herein by referenceREGISTERED REGISTEREDNo R-_ UNITED STATES OF AMERICASTATE OF NORTH CAROLINACOUNTY OF JOHNSTONDetailsAnnotationsEntry PropertiesModified11192013 22818 PMCreated4142003 85742 AMTemplateMinutesFieldsMinutes - TypeRegularMinutes - Date341996Book20