May 1, 1989 - 10:00 AM - County Board of Commissioners Meeting Minutes

May 1, 1989The Johnston County Board of Commissioners met in regular session Monday, May1, 1989, at 10 oclock am in the Commissioners Room, Johnston County Courthouse Annex,Smithfield, North Carolina, with the following members presentNorman C Denning, Chairman, Frank B Holding, Vice Chairman, Jerry F Wood,DDS, John M Booker, DVM, and James W CashMembers Absent NoneAlso Present Richard B Self, County Manager, Eleanor N Creech, Clerk to theBoard and W R Britt, County AttorneyThe Chairman called the meeting to order and the following business was transacted1 Minutes IIThe Chairman asked if there were any corrections to the minutes of April 3, 1989,and April 7, 1989, board meetings There being no corrections, the Chairman declared theminutes stand approved2 Department of Transportation Addition to System- Access Road to Spancrete PineLevelJ 0 Ethridge, District Engineer, explained that DOT has been requested toconstruct and maintain an industrial access road to the Spancrete facility at Pine Level fromSR 2324 to the companys property line The Secondary Road Addition investigation report,road petition and , a map were furnished the BoardAfter discussion and review of the above information, Commissioner John M Bookermoved that Public Access Roads Funds be appropriated to construct and maintain theindustrial access road to Spancrete according to DOT regulationsCommissioner Jerry F Wood seconded the motion which carried by unanimous vote•May 1, 1989 Continued3 Secondary Road Construction Program - SR 1102As recommended by DOT, Commissioner Jerry F Wood moved that Secondary RoadConstruction funds in the amount of 10,000 be appropriated for stage construction, surveyand right -of -way of SR #1102, listed as priority number one on the 1988 -1989 Secondary RoadConstruction Program, Johnston CountyCommissioner Frank B Holding seconded the motion which carried by unanimous vote4 Highway Funding Bill FactsC A Gardner, Division Engineer, North Carolina Department of Transportation,provided facts on the Highway Funding Bill for Division 4He stated the pending bill before the N C General Assembly to increase secondaryroad improvement funding will determine allocations for the 1989 -1990 Secondary RoadConstruction program For this reason, DOT has not yet prepared Johnston Countys programfor presentation to the Board If no decision has been made before the June meeting,Highway officials will present two programs Mr Gardner emphasized the new tax packagewill raise major new revenues that could improve 248 of the 281 miles of unpaved roads inJohnston County by the year 2001, and the remaining 33 miles by 2004 Without the newrevenues and at the current funding level, it would take 46 to 47 years to pave theunpaved roads in Johnston County Johnston County ranks as one of the highest in easternNorth Carolina in the number of unpaved roadsElwood Goodson, North Carolina Department of Transportation, Member -At- Large,representing Johnston County and Wayne Counties, visited and assured the Board of hissupport Mr Goodson re- emphasized that if this new funding is passed, many roads thatneed to be can be paved5 Secondary Road 1242 - Request for PavingCommissioner Jerry Wood moved the road petition requesting paving of SR 1242,Ingrams Township, be forwarded to the North Carolina DOT with the Boards recommendationfor consideration Commissioner Frank B Holding seconded the motion which carried byunanimous vote6Secondary Road #1242 -Twiggs Body ShopCommissioner Frank BHolding spoke with Mr Goodson and Mr Gardner regarding arequesthe had received fromDonnie Twigg, owner and operator of Twiggs Body Shop, forpavingan apron at SR 1242The body shopis located on Highway 701 and across fromunpavedSR# 1242 SR 1242 isa new road builtlast year between 701 and NC 96 across fromTwiggsBody Shop Mr Gardnersaid he wouldreview this request with Jack Bishop, Boardof Transportation memberBy motion, Commissioner Frank B Holding asked that the Department ofTransportation make a special effort to pave an apron at SR 1242 near Twiggs Body Shopon Highway 701Commissioner Jerry F Wood seconded the motion which carried by unanimous vote7 Department of Transportation Purchases Right-of-Way from County - US 70Commissioner Jerry F Wood moved the County Manager be authorized to execute, onbehalf of Johnston County, a fee simple deed to the N C DOT for a permanent right -of -wayat the Countys bulk pumping station on Highway 70 east of Clayton for 3,705, which isparticularly described as followsBeginning at the point of intersection of the existing eastern right ofway boundary of US 70 Survey line L with the property line common to theGrantors and Worth P Gurley, et al, said point being 901 northeastly of andnormal to survey line L thence southeasterly along and with the aforesaidexisting eastern right -of -way boundary of US 70 at all points being 90northeast of and normal to survey line L to the point of intersection with theproperty line common to the Grantors and Worth M Pounds; thencesouthwesterly, along and with the property line, if extended, common to theGrantors and Worth M Pounds to the point of intersection with Survey Line Lthence northwesterly along and with survey line L to the point of intersectionwith the property line, if extended, common to the Grantors and Worth PGurley, et al; thence northeasterly, to, along and with the property line, ifextended, common to the Grantors and Worth P Gurley, et al, to the point ofbeginning390May 1, 1989 ContinuedBeginning at the point of the intersection of the western right of wayboundary of survey line YA with the property line common to the Grantorsand Worth M Pounds, now or formerly, said point being 50 northwest of andnormal to survey line YA; thence northeasterly, in a straight line, to a point50 northwest of and normal to station 14 +4939, survey line YA; thencenortheasterly along a line at all points being 50 northwest of and normal tosurvey line YA to the point of intersection with the property line common tothe grantors and Worth P Gurley, et al, now of formerly; thencesoutheasterly, along and with the aforesaid common property line, crossingsurvey line YA, to the Grantors most eastern property corner, being acommon corner with Worth P Gurley, et al, and Worth M Pounds, now orformerly; thence southwesterly along and with the common property linebetween the Grantors and Worth M Pounds, crossing survey line YA, to thepoint of beginningIt is understood and agreed that the Department will extend thedriveway from survey line YA westerly to connect to the existing concretepad adjacent to the pumping station building The said driveway will beconstructed 20 in width with use of 6 compacted ABC capped with 112 BCSC,Type 12It is further understood and agreed that the Grantors have requestedthe Department to construct said driveway, do hereby grant permission toexceed the right of way to extent necessary to do said construction and willhave no further claim as a result of said construction Ref Deed Book 827,page 102Commissioner Frank B Holding seconded the motion which carried by unanimous vote8 Public Hearing - Archer Lodge Fire Department Annexation of Boundaries Five MilesAdvertised April 11, 1989, April 14, 1989 Time 1015 amChairman Norman C Denning opened the Public Hearing on the annexation of theArcher Lodge Fire District and announced the Board would hear anyone who wished to beheardissueThere was no one who wished to speak and therefore no opposition on the proposedThe Chairman declared the Public Hearing closedUpon a motion by Commissioner John M Booker, duly seconded by CommissionerFrank B Holding and carried by unanimous vote, the following resolution was adoptedRESOLUTIONWHEREAS, the matter of fixing and declaring the amended boundariesof the Archer Lodge Fire District was duly presented;ANDWHEREAS, it appears that the ArcherLodge Fire Districthascomplied withminimum requirements, as contained inthe resolution adoptedbythe Board ofCounty Commissioners on October 3,1955, pertaining totheestablishmentof Fire Departments and Fire Districtsin Johnston County;andwith General Statute 69 -2511 Changes in Area of District;AND WHEREAS, the enlargement of its fire district has met theapproval of the North Carolina Fire Insurance Rating Bureau;NOW THEREFORE, BE IT RESOLVED that the boundaries of the ArcherLodge Fire District to be served by the Archer Lodge Fire Department beamended and officially designated and fixed as followsFive Mile Boundaries ofArcher Lodge Fire DistrictJohnston County, North CarolinaPoint 1 the intersection of SR 1735 and Buffaloe Creek southwest tothe intersection of SR 1735 SR 1003 Point 2 southwest to a point 35 mileswest of the intersection of NC 42 SR 1704 on NC 42 at Mill Creek Point3 following Mill Creek south to the intersection with the Neuse River Point4 northwest following the Neuse River to the Wake County line Point 5northeast following the Wake County line to the intersection of SR 1719 Point6 follow established Corinth Holder Boundary to intersection of establishedThanksgiving Boundary follow this Boundary back to Point 1II3391May 1, 1989 Continued9 Fire Works DisplaysPursuant to NC General Statutes 14- 410 -415, Commissioner Frank B Holding movedthat permission be granted for the following fire works displays to be heldArcher Lodge Community Fire works to be held July 4, 1989, at the CommunityCenter, conducted by Fire DepartmentClydes Chapel Church - Fire works to be held June 10, 1989, at Church duringCentennial Celebration, conducted by Archer Lodge Fire DepartmentCommissioner John M Booker seconded the motion which carried by unanimous vote10 Public Hearing - Cable TV FranchisesAdvertised April 14, 1989 Time 1030 amChairman Norman C Denning opened the Public Hearing on Cable TV franchises andannounced the Board would hear anyone who wished to be heardA Alert Cable TV of North Carolina, IncPam Edmundson, General Manager, asked that Alert Cable TV of N C, Inc, begranted a franchise to extend cable into unincorporated areas of Wilsons Mills and immediateadjacent roads, Wilsons Mills Township This area will be serviced from the Selma system, tobe completed in two months - basic service with 25 channels at about 1500 MrsEdmundson said they will start immediately to build in the Old Drug Store area of ClevelandTownship where they have an existing franchise, and expect to have this area completed innine months She continued that it is not feasible, nor profitable or fair to other subscribersfor Alert to start building in Pleasant Grove Township at this timeB Channel Master, Division of Avnet, Inc Smithfield, N CRichard Derrenbacher, Marketing Manager for Channel Master, made a presentationseeking franchises in six areas of Johnston CountyArea 1 - All of Ingrams Township excluding west of 701 and north of I -95Area 2 - All of Banner Township excluding Benson and one mile radius thereofArea 3 - All of Pleasant Grove Township; all of Elevation TownshipArea 4 - All of Cleveland TownshipArea 5 - All of Wilders Township; all of Wilson Mills Township; all of ONealsTownship north and southArea 6 - Areas south of Highway 70 in Smithfield and Boon Hill Townshipsexcluding Princeton and the one mile radius thereof; all of Bentonville TownshipMr Derrenbacher stated that Channel Master is a company dedicated to providesatellite TV reception and small community cable systems It is their intent to make availableto the residents of the six unserved areas of Johnston County, a quality system capable of60 channels The initial programming will include a minimum 25 basic channels and a minimumof 5 premium channels They propose to construct a State -of- the -Art headend at theSmithfield Plant that will micro beam signals to various conclaves throughout the franchisedareasMr Derrenbacher continued, Channel Master can provide this service for a monthlysubscriber cost of 695 minimum 25 channels if, franchises are granted in six areas Basicrate charges would not increase for 30 months from the date the franchise is awardedChannel Master makes and manufactures the system here in Smithfield, so they canoffer a cost efficient system, start several areas, one time and bury cable very quicklywhere cable is needed and feasible Mr Derrenbacher stated, The goal of Channel Master isto provide a quality, trouble free serviceC Friendship Cable of N C Buford Television, Inc, Tyler, TexasKen Carroll, representing Buford Television,, Inc of Tyler, Texas, operating in NorthCarolina as Friendship Cable, requested a franchise for uncabled areas in the McGeesCrossroads area of Cleveland TownshipA 25 channel system would cost the subscriber 1495 a month for basic service andthey could build for approximately 17 homes per mile392May 1, 1989 ContinuedThe residents in the McGees Corssroads Community have called supporting Cable TVservice in this area of the CountyThe Chairman asked if anyone else wished to be heard on Cable TV franchises Therebeing no response, the Chairman declared the Public Hearing closed11 Public Hearing - Community Development Block GrantAdvertised April 18, 1989 Time 1100 amChairman Norman C Denning opened the Public Hearing on the proposed applicationfor funding for a Community Development Block Grant for the Graytown CommunityRevitalization Area and announced the Board would hear anyone who wished to be heardJim Allred, Consultant, explained the application process saying this years projectbudget has been cut from 600,000 to 515,000 because of restructured cost of streetimprovements, drainage and housing rehabilitation, however, there will be no reduction inservicesFred Dodd, Graytown resident, asked if the project is not approved, what are thechances of getting surplus funds should there be any availableMr Allred said there is a possibility of tapping into surplus funds if any if theproject is not fundedThe Chairman asked if there were any others who wished to be heard There beingno response, the Chairman declared the Public Hearing closedThere being no opposition to the Community Development project, Commissioner FrankB Holding moved that an application be filed with the N C Department of Natural Resourcesand Community Development for a Graytown Community revitalization program, and theChairman be authorized to execute the official documentsCommissioner Jerry F Wood seconded the motion which carried by unanimous vote12 Appointment - Four Oaks Planning Board - ETJ MemberUpon a motion by Commissioner Jerry F Wood, duly seconded by Commissioner JohnM Booker and carried by unanimous vote, Gus Wynn was appointed ETJ member of the FourOaks Planning Board as recommended by the Four Oaks Town Commissioners13 Appointments Johnston County Planning BoardCommissioner John M Booker moved that Rudolph Wells Clayton, Charles K HinnantKenly , and W Bryant Wellons Princeton be reappointed to the Johnston County PlanningBoard for three year termsCommissioner Jerry F Wood seconded the motion which carried by unanimous vote14 Water Study PresentationIn July, 1988, the Board authorized Ragsdale Consultants to make a county -widewater study of needs based on population growth projections and commercial and industrialgrowthTim Broome and Tim Baldwin, engineers, presented a three phase preliminary plan onextending water lines in rural areas of the County with implementation based on a 20 yearperiod at a total projected cost of 18,950,000Mr Broome said this plan provides the source for the establishment of specialservice districts where the needs are, or may be, and where population density warrants,outside municipalities ETJ limitsMr Baldwin presented a detailed overview concentrating on priorities with designatedmapped areas of each phase 8,270,000IlII? lfPhase1N C42Clayton to Drug Store 1,760,000N C50Drug Store to I- 40 NC 2101,760,000WestSmithfield Neuse River Cross650,000US301Benson to Four Oaks2,100,000US301Tank at School Bus Depot460,000N C1010Upgrade to Cleveland School340,000SmithfieldWater Treatment Plant Improvements1,200,000 8,270,000IlII? lf393Phase IINC50 Benson toNC210 2,650,000NC50 Benson toI -40Interchange440,000US70 Clayton toWakeCounty Line750,000US70 -A WilsonsMillsto Neuse River1,430,000 5,270,000Ulk --o TTTPrinceton WTP 3,000,000US 70 Smithfield to Princeton 1,160,000NC 42 Clayton to Flowers 1,250,0005,410,000Total of Phase I, Phase II and Phase III18,950,000It was pointed out this plan provides the County with three major water sources, theNeuse River, Cape Fear River and Little RiverThe engineers related that first phase financing could be done through a FarmersHome Administration loan, bulk water rate surcharges and impact fees, and reviewed otherfinancing alternatives Mr Broome expressed concern, that the time has come when theCounty should look at some type of impact fees from large real estate developments, as therewill continue to be demands on the Countys water supplyThe Chairman thanked the engineers for this most informative and well preparedpresentation15 Resolution - Sale of School Bonds - 9,000,000The following resolution was discussed and its title was readRESOLUTION AUTHORIZING THE ISSUANCE AND SALE OF9,000,000 PUBLIC IMPROVEMENT BONDS, SERIES1989 OF JOHNSTON COUNTY, NORTH CAROLINA PURSUANTTO A BOND ORDER HERETOFORE APPROVED AND PROVIDINGFOR THE FORM, DETAILS AND PAYMENT THEREOFWHEREAS the Bond Order hereinafter described was authorized andadopted by the Board of Commissioners of Johnston County the Board onMay 2, 1988, and approved by a majority of the qualified voters of JohnstonCounty the County at an election held on July 12, 1988; andWHEREAS, the Board desires to provide for the issuance of 9,000,000of the bonds, none of which have been previously issued or sold, asauthorized by said Bond Order;NOW, THEREFORE, the Board of Commissioners of Johnston Countymeeting in regular session at Smithfield, North Carolina, on May 1, 1989, dothe followingBE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF JOHNSTONCOUNTY1 The County shall issue its general obligation bonds in an aggregateprincipal amount of 9,000,000 pursuant to and in accordance with the BondOrder entitledBOND ORDER AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATIONBONDS OF JOHNSTON COUNTY IN THE MAXIMUMAGGREGATE PRINCIPAL AMOUNT OF 9,000,000, FOR THEPURPOSE OF FINANCING, IN PART, THE ACQUISITION,CONSTRUCTION, INSTALLATION AND EQUIPPING OF SCHOOLFACILITIES IN JOHNSTON COUNTY2 The bondsshallbedesignated9,000,000 Public ImprovementBonds, Series 1989 andshallbedated June1, 1989 The bonds shall maturein annual installments onJune1 inyears andamounts as follows394May 1, 1989 ContinuedYear Amount1990 400,0001991400,0001992400,0001993500,00019941,250,00019951,250,00019951,250,00019961,250,00019971,250,00019981,250,00019991,050,000Each bond shall bear interest at such rate as shall be determined bythe Chairman and the LGC, as hereinafter defined, at the time of sale,provided no interest rate on any bond shall exceed nine percent 9,payable semiannually on June 1 and December 1, beginning on December 1,1989, from June 1, 1989, if it is authenticated prior to December 1, 1989 or botherwise from June 1 or December 1 that is, or immediately precedes, thedate on which it is authenticated unless payment of interest thereon is indefault, in which case such bond shall bear interest from the date to whichinterest has been paid Principal shall be payable to the registered ownersupon surrender of bonds as they become due at the principal corporate trustoffice of First Citizens Bank Trust Company, Raleigh, North Carolina, whichis hereby designated as paying agent and registrar for the bonds theRegistrar Interest shall be payable by check or draft mailed to theregistered owners at their addresses as they appear on the registration bookskept by the Registrar on the 15th day of the month preceding each interestpayment date Principal and interest shall be payable in lawful money of theUnited States of America3 The bonds will not be subject to redemption prior to maturity4 The bonds shall be signed by the manual or facsimile signature ofthe Chairman of the Board of Commissioners of the County, shall becountersigned by the manual or facsimile signature of the Clerk to the Boardand a manual or facsimile of the Countys seal shall be printed or affixedthereon No bond shall be valid until it has been endorsed by the manual orfacsimile signature of the authorized representative of the North Carolina LocalGovernment Commission the LGC and authenticated by the manual signatureof an authorized officer, agent or employee of the Registrar and the date ofauthentication noted thereon5 The bonds shall be in substantially the following form, the termsand requirements of which are incorporated herein by referenceREGISTEREDNo R-UNITED STATES OF AMERICASTATE OF NORTH CAROLINAJOHNSTON COUNTYPUBLIC IMPROVEMENT BOND, SERIES 1989REGISTEREDInterest Rate Maturity Date June 1, Date of Original Issue June 1,1989 Cusip NoREGISTERED OWNERPRINCIPAL AMOUNT DOLLARSJohnston County, North Carolina the County, for value received,hereby promises to pay, upon surrender hereof at the principal corporatetrust office of First Citizens Bank Trust Company, Raleigh, North Carolinathe Registrar , to the registered owner thereof, or registered assigns orlegal representative, the principal sum stated above on the maturity datestated above and to pay interest hereon semiannually on each June 1 andDecember 1 at the annual rate stated above Interest is payable a from June1, 1989, if this bond is authenticated prior to December 1, 1989, or botherwise from the June 1 or December 1 that is, or immediately precedes, thedate on which this bond is authenticated unless payment of interest hereonis in default, in which case this bond shall bear interest from the date towhich interest has been paid Interest is payable by check or draft mailedto the person shown as owner hereof at his address as it appears on thenEirV395Mav 1, 1989 Continuedregistration books kept by the Registrar on the fifteenth day of the monthpreceding each interest payment date Principal and interest are payable inlawful money of the United States of AmericaTHE PROVISIONS OF THIS BOND ARE CONTINUED ON THE REVERSEHEREOF, AND SUCH CONTINUED PROVISIONS SHALL FOR ALL PURPOSES HAVETHE SAME EFFECT AS IF SET FORTH ON THE FACE HEREOFAll acts,conditions and things required by theConstitution andstatutes of theState of North Carolina tohappen, exist or beperformedprecedent to andin the issuance of this bondhave happened,existand havebeen performed,and the issue of bonds ofwhich this bondis one,togetherwith all other indebtednessof the County,is within everydebtand otherlimit prescribedby the Constitution andstatutes of theStateof NorthCarolina This bond shall be governed bythe laws of theStateof NorthCarolinaThis bond shall not be valid until the Registrar shall have executedthe Certificate of Authentication appearing hereon and inserted the datethereofIN WITNESS WHEREOF, Johnston County, North Carolina, has causedthis bond to be signed by the manual or facsimile signature of its Chairmanof the Board of Commissioners, to be countersigned by the manual or facsimilesignature of the Clerk to the Board, a manual or facsimile of its seal to beprinted or affixed hereon, and this bond to be dated June 1, 1989COUNTERSIGNEDEleanor N Creech Seal Norman C DenningClerk to the Board Chairman of the BoardDate AuthenticatedCERTIFICATE OF AUTHENTICATIONThis bond is one of the bonds described in the within mentioned bond orderFIRST CITIZENS BANK TRUST COMPANYByAuthorized SignatureThe issue hereof has been approved under the provisions of The Local GovernmentBond Act of North CarolinaByJohn D Foust, SecretaryLocal Government CommissionReverse of Bond FormThis bond is one of an issue of 9,000,000 of the Johnston CountyPublic Improvement Bonds, Series 1989, of like date and tenor, except as tonumber, denomination, rate of interest and maturity, and is issued pursuantto the Constitution, the statutes of the State of North Carolina, including TheLocal Government Bond Act and regulations of the North Carolina LocalGovernment Commission LGC , resolutions of the Board of Commissioners ofJohnston County and the Bond Order entitledBOND ORDER AUTHORIZING THE ISSUANCE OF GENERALOBLIGATION BONDS OF JOHNSTON COUNTY IN THEMAXIMUM AGGREGATE PRINCIPAL AMOUNT OF 9,000,000,FOR THE PURPOSE OF FINANCING, IN PART,THE ACQUISITION, CONSTRUCTION, INSTALLATIONAND EQUIPPING OF SCHOOL FACILITIES INJOHNSTON COUNTYwhich was approved at an election held in the County on July 12, 1988, tofinance various improvements to schools396May 1, 1989 ContinuedThe bonds are not subject to redemption prior to maturityThe bonds are issuable as fully registered bonds in denominations of5,000 and multiples thereof Upon surrender of this bond at the principalcorporate trust office of the Registrar, together with an assignment dulyexecuted by the registered owner or his duly authorized attorney or legalrepresentative in such form as shall be satisfactory to the Registrar, theCounty shall execute, the North Carolina Local Government Commission shallendorse and the Registrar shall authenticate and deliver in exchange, a newbond or bonds having an equal aggregate principal amount, in authorizeddenominations, of the same form and maturity, bearing interest at the samerate, and registered in names as requested by the then registered ownerhereof or his duly authorized attorney or legal representative, all subject tothe limitations and conditions provided in the resolution authorizing theissuance of the bonds Any such exchange shall be at the expense of theCounty, except that the Registrar may charge the person requesting suchexchange the amount of any tax or other governmental charge required to bepaid with respect theretoTheRegistrarshall treat the registered owner asthe personexclusivelyentitled topayment of principal and interest and theexercise ofall other rights and powers of the owner, except that interest payments shallbe made tothe personshown as owner on the registration bookson the 15thday of themonth precedingeach interest payment dateThefull faithand credit and taxing power of the Countyare herebyirrevocablypledged forthe payment of principal of and interest onthis bondASSIGNMENTFOR VALUE RECEIVED the undersigned hereby sells, assigns andtransfers untothe within bond and all rights thereunder, hereby irrevocably constitutingand appointing ,Attorney, to transfer said bond on the books kept for the registrationthereof, with full power of substitution in the premisesDatedSignature GuaranteedNOTICE Signatures must be guaranteed bya member firm of the New York StockExchange or a commercial bank or trust companySignature of Registered OwnerNOTICE The signature above must correspondwith the name of the registered owneras it appears on the front of this bondin every particular, without alterationor enlargement or any change whatsoever6 The full faith and credit and taxing power of the County arehereby irrevocable pledged for the payment of principal of and interest onthe bonds Unless other funds are lawfully available and appropriated fortimely payment of the bonds, the Board shall levy and collect taxes and raiseother revenues for payment of the principal of and interest on the bonds, asthe same become due and payable7 The Registrar shall maintain registration books for the registrationof bonds Upon surrender of any bonds at the principal corporate trust officeof the Registrar, together with an assignment duly executed by the registeredowner or his duly authorized attorney or legal representative in such form asshall be satisfactory to the Registrar, the County shall execute and theRegistrar shall authenticate and deliver in exchange, a new bond or bondshaving an equal aggregate principal amount, in authorized denominations, ofthe same form and maturity, bearing interest at the same rate, and registeredin names as requested by the then registered owner or his duly authorizedattorney or legal representative Any such exchange shall be at the expenserr f-141isiI3971of the County, except that the Registrar may charge the person requestingsuch exchange the amount of any tax or other governmental charge requiredto be paid with respect theretoThe registrar shall treat the registered owner as the personexclusively entitled to payment of principal and interest and the exercise ofall other rights and powers of the owner, except that interest payments shallbe made to the person shown as owner on the registration books on thefifteenth day of the month preceding each interest payment date8 The LGC is hereby requested to sell said 9,000,000 PublicImprovement Bonds, Series 19899 The distribution by the LGC of the Official Statement dated April28, 1989, is hereby approved The Chairman and the County Manager, incollaboration with the LGC, may approve such completions, omissions,insertions and changes in the Official Statement not inconsistent with thisresolution as are necessary to complete the Official Statement10 The Board covenants on behalf of the County that so long as anyof the installments of principal or interest on the bonds are outstanding andunpaid, the County shall not take or omit to take any action the taking oromission of which will cause the bonds to be arbitrage bonds within themeaning of Section 148 of the Internal Revenue Code of 1986, as ,amended theCode or otherwise cause interest on the bonds to be includible in the grossincome of the registered owners thereof11 The Chairman and Clerk to the Board are hereby authorized anddirected take all proper steps to have the bonds prepared and, when theyshall have been duly sold by the LGC, to execute the bonds and to deliverthe bonds to the State Treasurer of North Carolina for delivery to thepurchaser or purchasers to whom they may be sold by the LGC15 The Board hereby covenants that it will not permit the grossproceeds of the bonds to be used in any manner that would result in a 5or more of such proceeds being used directly or indirectly in any trade orbusiness carried on by any person other than a governmental unit asprovided in Section 141b of the Code, b 5 of such proceeds being usedwith respect to any output facility other than a facility for the furnishingof water , within the meaning of Section 141b 4 of the Code, or c 5 ormore of such proceeds being used directly or indirectly, to make or financeloans to any person other than a governmental unit as provided in Section141c of the Code; provided, however, that if the Board receives an opinionof bond counsel acceptable to the registered owners of , the bonds and thatany such restriction is not required to prevent the interest on the bondsfrom being includable in the gross income of the registered owners thereofunder existing statutes, the Board need not comply with such restriction16 All resolutions or parts of resolutions in conflict herewith arehereby repealed17 This resolution shall take effect immediatelyCommissioner Frank Holding moved the passage of the foregoing resolution andCommissioner Jerry Wood seconded the motion, and the resolution was passed by the followingvoteYeas Frank B Holding, Jerry Wood, James W Cash, John M Booker and Norman CDenningNays NoneNot Voting None12All other actionsof officers ofthe County in conformity with thepurposes and intent of thisresolution andin furtherance of the issuance andsale of thebonds are herebyapproved andconfirmed13Such officers ofthe Countyas may be requested are herebyauthorizedand directed toexecute appropriate closing papers including acertificatesetting forth theexpected useand investment of the proceeds ofthe bondsin order to showthat such expected use and investment will notviolate theprovisions of Section148 ofthe Code and regulations issuedpursuant thereto applicable to arbitrage bonds Such papers and certificatesshall be insuch form as maybe requestedby bond counsel for the County14This resolution,in particularSections 2, 3, 5 and 7 hereof,constitutesa system of registration for thebonds pursuant to NCGS 159E -415 The Board hereby covenants that it will not permit the grossproceeds of the bonds to be used in any manner that would result in a 5or more of such proceeds being used directly or indirectly in any trade orbusiness carried on by any person other than a governmental unit asprovided in Section 141b of the Code, b 5 of such proceeds being usedwith respect to any output facility other than a facility for the furnishingof water , within the meaning of Section 141b 4 of the Code, or c 5 ormore of such proceeds being used directly or indirectly, to make or financeloans to any person other than a governmental unit as provided in Section141c of the Code; provided, however, that if the Board receives an opinionof bond counsel acceptable to the registered owners of , the bonds and thatany such restriction is not required to prevent the interest on the bondsfrom being includable in the gross income of the registered owners thereofunder existing statutes, the Board need not comply with such restriction16 All resolutions or parts of resolutions in conflict herewith arehereby repealed17 This resolution shall take effect immediatelyCommissioner Frank Holding moved the passage of the foregoing resolution andCommissioner Jerry Wood seconded the motion, and the resolution was passed by the followingvoteYeas Frank B Holding, Jerry Wood, James W Cash, John M Booker and Norman CDenningNays NoneNot Voting None•May 1, 1989 ContinuedM Board of Education - Proposes 49 Million School Bond IssueDr Dicky Parrish, Chairman, Kenneth Deacon Jones, Gordon Woodruff and GlendaHales, members, Johnston County Board of Education, met with the Board of Commissionersand presented a plan unanimously adopted by the Board of Education called Into the NextCentury Dr Parrish stated this plan will cost 49 million dollars and feels it is justifiedand reasonable On behalf of the Board of Education, Dr Parrish asked the Board of CountyCommissioners to endorse and call for a 49 million dollar bond issue for the construction ofnew schools and expansion of existing facilitiesThe School Board proposes the bond issue can be paid over a 20 year period withouta tax increase if the County allocates sales tax revenues already committed to the schoolsand monies previously reserved for the new courthouse and jail annexThe Commissioners expressed much reluctance to accept that the bond issue could bepaid over a 20 year period without a substantial tax increase, and again, CommissionerHolding said he believes a better job needs to be done on a pay -as- you -go planHe emphasized it would be a real departure from where we have been if theCounty committed to pay as much interest as the 49 Million bond issue will costCommissioner Holding stressed his difference is a philosophical one regarding the interestfactor, however, he respects the School Board and will vote to let the people voteContinuing, Commissioner Holding said he would be less than open if he left the impression atthis meeting that he would support the bond issue and not identify how he feltCommissioner Holding announced he is very sympathic with the school needs, andhopes that something can be done, but feels the people will not support a 49 million bondissueChairman Denning affirmed that this Board has always tried to do the best it couldby schools and if the people of this County want a 49,000,000 bond, that is fine, but hefeels its very important that the people know what it will cost them Chairman Denningfurther emphasized the only place the two Boards are not understanding each other is thematter of the School Board saying it will not require a tax increaseThe County Manager explained the interest and pay back commitments on hospitalbonds and the 9 million school bonds without a tax increase He reviewed Local GovernmentCommission requirements on selling bonds and a schedule of payment and interest on theproposed 49 million which reveals a tax increase in the range of 22 to 33 cents dependingon the use of sales tax revenueSchool board members contended there is just not enough money to do what needs tobe done on a pay -as- you -go basis, emphasizing the County has struggled along this way formany years, and they must consider the conditions of the schoolsDeacon Jones commented that school children in Pine Level and in some other areashave less today than they did 30 years ago Pine Level School cant use the 3rd floorbecause it is a fire hazard He said, we have to ask ourselves why we are in thissituation, we are a County more able to provide better facilities Mr Jones wanted to knowif there is, anything that is more important than the schools, and too, where the prioritieslay He questioned if the School Boards figures were incorrect in that sales tax money andother revenue will not retire the 49 Million bond debt He feels the people of the Countyshould be given the opportunity to decide where the priorities areIn Summary, doubtful concerns were expressed by the Board of Commissioners that a49,000,000 bond issue, plus interest, can be paid without a tax rate increaseFollowing the discussion, Commissioner James W Cash moved that an application befiled with the North Carolina Local Government Commission for approval of a 49,000,000school bond issue pursuant to the Local Government Bond Act and the following Notice ofIntent To File An Application be publishedNOTICE OF INTENTION TO FILE AN APPLICATION WITHLOCAL GOVERNMENT COMMISSION CONCERNING THE COUNTY OF JOHNSTON49,000,000 SCHOOL BONDSi yGCommissioner James WCash stated he would support a referendum, however,theBoardneeds to be up -frontand straight-forward; he had read inthe papers that a49Millionreferendum would notcause a tax increase and this Boardwould be deceivingthepublicif they did not let thepeople know what it would require topay back a bond issuein thisamount CommissionerCash remarked, he does not like theinterest factor, and iftheresanother way, he will support it; its a matter of if we wantnew school facilitiesorwant to continue with what wehaveIn Summary, doubtful concerns were expressed by the Board of Commissioners that a49,000,000 bond issue, plus interest, can be paid without a tax rate increaseFollowing the discussion, Commissioner James W Cash moved that an application befiled with the North Carolina Local Government Commission for approval of a 49,000,000school bond issue pursuant to the Local Government Bond Act and the following Notice ofIntent To File An Application be publishedNOTICE OF INTENTION TO FILE AN APPLICATION WITHLOCAL GOVERNMENT COMMISSION CONCERNING THE COUNTY OF JOHNSTON49,000,000 SCHOOL BONDSi yGDetailsAnnotationsEntry PropertiesModified11192013 23705 PMCreated442003 95733 AMTemplateMinutesFieldsMinutes - TypeRegularMinutes - Date511989Book18