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January_3_2006_Regular_Minutes
IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES JANUARY 3, 2006 The Iredell County Board of Commissioners met in Regular Session on Tuesday, January 3, 2006, at 7:00 P.M., in the Iredell County Government Center (Commissioners' Meeting Room), 200 South Center Street, Statesville, NC. Present were: Sara Haire Tice, Chairman Vice Chairman Godfrey Williams Steve Johnson Marvin Norman Ken Robertson Staff present: County Manager Joel Mashburn, County Attorney Bill Pope, Deputy County Manager Susan Blumenstein, Code and Enforcement Director Lynn Niblock, Planning Supervisor Steve Warren, and Clerk to the Board Jean Moore. CALL TO ORDER by Chairman Tice. INVOCATION by Commissioner Robertson. PLEDGE OF ALLEGIANCE ADJUSTMENTS OF THE AGENDA: MOTION by Chairman Tice to adjust the agenda by the following actions. Deletions: • Request for Discussion/Approval of a Recommendation from the Board of Elections Regarding the Purchase of Certified Voting Equipment • Request for Approval of a Letter of Agreement with Hospice and Palliative Care Regarding EMS Transports of Patients • (Unfinished Business) Continuation of the discussion regarding the sign ordinance and direction to the staff pertaining to enforcement (see briefing minutes) VOTING: Ayes — 5; Nays — 0. APPOINTMENT BEFORE THE BOARD Request from the MLK Partners for the Adoption of a Proclamation Proclaiming January 12-18, 2006 as "Diversity Making a Difference Week" in Honor of Dr. Martin Luther King, Jr.: Chairman Tice presented the following proclamation for adoption. Proclamation Proclaiming January 12 -18, 2006 as "Diversity Making A Difference Week" in Honor of Dr. Martin Luther King, Jr. WHEREAS, Covenant House, the Greater Statesville Chamber of Commerce, Habitat for Humanity of Iredell County, IMPACT, Inc., Iredell Museums, Mitchell Community College, Mt. Pleasant A.ME. Zion Church, STAR (Standing Together Against Racism), Statesville Branch NAACP, the Statesville Housing Authority, the Statesville Human Relations Council, Teen Health, WHEEL, Inc. & the YMCA of Iredell County, collectively known as the MLK Partners, have joined together to provide community activities over eight days, so that residents oflredell County conjoin in fellowship in the spirit of unity; and WHEREAS, the community activities will include, programs celebrating and commemorating the life and legacy of Dr. Martin Luther King, Jr., a 'Diversity, of Expression " exhibit and children's program, a Statesville Human Relations Council presentation, a Health & Cultural Fair, a Community Worship Service, a Community Prayer Breakfast, a Making a Dif Community Service project, a presentation of "Songsfrom the Soul" and a Candlelight Vigil; and WHEREAS, the inspiration for the weeklong series of events, designed to reach out and make a difference in the lives of the residents of Iredell County, came from the teachings of Dr. Martin Luther King, Jr. NOW, THEREFORE, the Iredell County Board of Commissioners proclaims the period extending between January,12-18, 2006, as `Diversity Making A Difference Week" in Honor of Dr. Martin Luther King, Jr. OTION by Commissioner Robertson to approve the Proclamation Proclaiming January 12-18, 2006 as "Diversity Making a Difference Week" in Honor of Dr. Martin Luther King, Jr. VOTING: Ayes — 5; Nays — 0. Chairman Tice then presented the proclamation to Mr. William Jones, a member of MLK Partners. Tice thanked Mr. Jones, and the other members of the organization, for their efforts in promoting unity in the county. Referring to the war in Iraq, Commissioner Robertson said the Iraqi people could use a man, such as Dr. King, who could aid their country. He said the American people were fortunate to have had Dr. King, who helped bring about changes in America in a nonviolent manner. PUBLIC HEARINGS Chairman Tice declared the meeting to be in a public hearing. Request for Approval to Abandon a Section of an Unnamed Road for Applicant Skyler Little with Co -Signers John Mitchell, Joseph Kitchens, and Donnie Walker: Planning Supervisor Steve Warren said an abandonment request had been received for an unopened right-of- way that extended parallel to Bristol Drive in west Statesville. He said the unnamed road was approximately 835 feet in length and 20 feet in width. Warren said the roadway could be described as a "platted right-of-way on paper only." He said the section was part of an old plat recorded in 1946 in the J.L. Sherrill subdivision, and it had never been opened as a roadway. Mr. Warren said the adjacent property owners had requested the abandonment, the paperwork was in order, and the staff recommended approval. No one else requested to speak, and Chairman Tice adjourned the hearing. OTION by Commissioner Johnson to grant the request for the road abandonment as was petitioned by Skyler Little, John Mitchell, Joseph Kitchens, and Donnie Walker. VOTING: Ayes — 5; Nays — 0. Chairman Tice declared the meeting to be in a public hearing and requested all persons desiring to speak in reference to the conditional uses of Case No. 0512-1 to proceed to the dais for the oaths. Rezoning Request; Case No. 0512-1: Jerry Barnette, Applicant for Thomas E. Barnette Requests for Property to be Rezoned from Residential Agricultural to Residential Office Conditional Use District: Planning Supervisor Steve Warren shared the following staff report for this request. OWNER: Thomas E. Barnette APPLICANT: Jerry Barnette 1576 Brawley School Rd. P.O. Box 5123 Mooresville, NC 28117 Mooresville, NC 28117 (704)663-4841 LOCATION: 1576 Brawley School Road in Mooresville, NC; more specifically identified as PIN # 4626-71-4565. Directions: South from Mooresville on Brawley School Road, property on right at corner of Chuckwood Road and Brawley School Road. 2 REQUESTED ACTION AND CONDITIONS: Rezone the subject parcel from RA, Residential Agricultural to RO-CUD, Residential Office Conditional -Use District with the following condition: • employ screening device per Article XII, Section 1 of the Zoning Ordinance on the west side of subject property along the common boundary with PIN# 4626-71-2123. PROPOSED USE: Office and/or service uses. SIZE: 1 acre. EXISTING LAND USE: Residential. SURROUNDING LAND USE: Residential with new Lake Norman Fire Department and RO uses to the north of the subject parcel. WATERSHED REGULATIONS: The subject parcel is located within the WS -IV -CA watershed. TRAFFIC: This section of Brawley School Road had a traffic count of 5,800 vehicles per day in 2004; the 1993 Thoroughfare Plan states that this section also has a carrying capacity of 9,000 vehicles per day. ZONING HISTORY: This property has been zoned RA since countywide zoning took effect in 1990. STAFF COMMENTS: This property is located at the intersection of two major roads that provide access to areas that have been heavily developed into residential communities. The property is also bordered on the west by a private LCID (Land Clearing & Inert Debris) landfill. Staff review indicates that the property is therefore situated at a location more conducive to a Residential -Office use rather than purely residential; such a rezoning would not require an amendment to the land -use plan. In an effort to facilitate improved buffering in this residential area, the applicant is proposing to require screening on the west side of the subject parcel pursuant to Article XII of the Zoning Ordinance (note that this is not a standard requirement of the RO district because it is primarily a residential classification). Due to the unique location of this parcel and its proximity to the main travel way, as well as the proposed screening which would enhance the visual impacts between Brawley School Road and the adjacent landfill, staff recommends in favor of the request. PLANNING BOARD ACTION: On December 7, 2005 the Planning Board unanimously recommended approval of this request by an 8-0 vote. Warren said the proposed use was considered to be a good fit for property. He noted the landfill that bordered the property, and he said a residential office zoning would eliminate any retail uses that could occur in the existing residential agricultural zoning. Jerry Barnette, said he and two others owned the property, and none of them desired to reside at the site. He said several neighbors in the area had indicated an interest in having some type of office building, for instance a medical facility, on the property. Mr. Barnette said the applicants were not trying to "hurt" the area. No one else desired to speak, and Chairman Tice adjourned the hearing. MOTION by Commissioner Robertson, after reviewing the findings of fact and determining them to be in order, to rezone the property involved in Case 0512-1 (Barnette) from Residential Agricultural to Residential Office Conditional Use District. VOTING: Ayes — 5; Nays — 0. -------------------------------------------------CONSENT AGENDA ------------------------------------------- items. MOTTO by Commissioner Johnson to approve the following seven (7) consent agenda VOTING: Ayes — 5; Nays — 0. 3 1. Request for Approval of a Road Maintenance Abandonment Petition Submitted by the North Carolina Department of Transportation for SR 1613 - Clinker Brick Road: During the briefing session, Planning Supervisor Steve Warren said the Statesville office of the North Carolina Department of Transportation had submitted a petition request for the abandonment of a section of SR 1613, Clinker Brick Road, from the state maintenance system. He said the adjacent property owners had made the request due to a security concern, and a gate would be erected at the entryway. Warren said Clinker Brick was an 18 foot wide gravel road, approximately 1,405 ft. in length, with a "dead-end." 2. Request from the Iredell-Statesville School System for Approval of a Budget Amendment for the Appropriation of Sales Tax Refunds: At the five o'clock meeting, Iredell-Statesville Schools Finance Officer Kay Fulp requested approval of a $710,120 budget amendment due to the appropriation of sales tax refunds. Fulp said the system initially planned to spend the money on gymnasium air conditioning, but due to cash flow concerns, the funds would be held in current expense for any costs associated with the bond transactions. She said the gym air conditioning would still remain as the priority usage for the money, if not used for the bonds. (Superintendent Holliday, also present at the briefing session, added that Union Grove Elementary needed windows in its gym.) 3. Request for the Waiver of Bidding Requirements due to the "Piggybacking Exception" for a Solid Waste Wheel Loader: Purchasing Agent Dean Lail and Solid Waste Director David Lambert said at the briefing session that Mecklenburg County in 2005 bid out a wheel loader, and the contract was still current. He said the loader's cost was $110,980.00, but additional adjustments would be needed making the total amount required at $129,221. Lail said Iredell County budgeted $160,000 for the equipment, and he recommended piggybacking onto Mecklenburg's contract. He requested a waiver of the bidding requirements, and he said this was permitted by N.C.G.S.143-129(g). 4. Request for the Transfer of Homeland Security Assets to Municipalities: Assistant County Manager Tracy Jackson said at the 5 p.m. meeting that assets purchased from Homeland Security Funds needed to be officially transferred to the City of Statesville and to the Towns of Troutman and Mooresville. He said the municipalities already had most of the items, but the "official" transfer would eliminate the county from having any vehicle/equipment maintenance costs. An asset listing is as follows: SHSGP- Mooresville =r Station, Vantage Pro Wireless Polycom Conference 3 SHSGP Part I- Mooresville rr, pH Dbl Junction rode, Replacement pH Tester stick, pH 30" Direct Drive 95gal Overpack Drum 55gal Stand, 1000w Storage Pelican Chem -Bio Reference 4 I 1 428.00 1 45.00 797.00 1 124.00 5/1 1 55.00 1 33.00 2 616.00 1 85.24 4 459.08 5/1 2 333.00 1 315.19 2 462.84 2/1 1 75.00 2 70.00 6, 1 10.00 Book, Hazmat Reference 3 78.00 6/3/2004 Book, Chemical Reference 3 42.00 Shipping 1 7.95 Binoculars, 12x50 12 504.00 6/13/2004 Shipping 1 19.07 Berm, Snap -Up Containment 1 553.00 11/8/2004 Shipping, Containment Berm 1 44.00 Shower, Decontamination WS510 1 3,900.00 11/8/2004 Heater, Water Pro -70T 1 1,530.00 Pump, Electric Water 1 140.00 Shipping 1 200.00 Kit, Hazmat Spill 2 970.99 11/8/2004 Shipping 1 72.99 Grid, Elevation 6 658.00 Shipping 1 70.00 Generator, 5.5hp Honda 1 825.00 1/3/2005 Shipping 1 75.00 Seal, Drain 1 359.00 1/14/2005 Shipping 1 21.53 Bladder, Grey Water Containment 1 625.00 2/21/2005 Shipping 1 100.00 Light Stand, 1200w 2 249.30 1/3/2005 Binoculars, 12x50 72 3,024.00 6/13/2004 Shipping 1 114.40 2003 SHSGP Part I- Troutman 22,284.36 Camera, Thermal Imaging 1 18,500.00 7/14/2004 Shipping, TIC 1 40.00 Radio, Motorola HT750 6 3,570.00 7/24/2005 Binoculars, 12x50 4 168.00 6/13/2004 Shipping 1 6.36 Computer, Panasonic Toughbook 51 1 3,511.00 5/24/2005 Shipping 1 22.00 Tool, Amkus Hydraulic 1 7,268.00 6/3/2005 Shipping 1 87.20 Strut, Pnuematic Bracing System 1 2,400.00 8/8/2005 Shipping 1 38.40 2003 SHSGP Part 11- Mooresville 290,339.25 Books, Reference Assorted 1 1,738.87 7/12/2004 Shipping 1 42.73 Radio, Motorola HT750 6 3,129.00 10/21/2004 Radio, Motorola M1225 1 326.90 Antenna, Mobile Radio 1 57.00 Installation, Radio 1 95.00 iveyor, Litter System ird, Litter Transfer ayer, Hand I, Air Lift 48ton itrol, Air Lift Bag its, Chemical Resist Over ves, Chemical Resist Neoprene ves, Chemical Resist Nitrile ves, Chemical Resist Butyl ves, Chemical Resist Viton ves, Disposable Nitrile Level A XL Level A XXL Level A Tychem EX Brigade XL Level A Tychem EX Brigade XXL Level A Training XL Level A Pressure Testing ,erall, Tychem F XL ,erall, Poly -Coat XL ferall, Poly -Coat XXL , V -Guard tection, Ear Muff sses, Safety iitor, iTX 4 -Gas irger, Gas Monitor np, Sampling Calibration Gas Monitor Acher, HMD SKED System Non -Sparking Tool Ecom, Motorola HT750 Respirator Scott Scott 4.5 60min ler, Scott Carbon 60min :r, Decontamination Zumro !r, Water Zumro Isotherm Cool Collapsible star, Personal 0-20R sr, Dosimeter Hazmat Reference Chemical Reference ack, 12ton Screw 'lastic, Sheet 4mil hovel take, Bow ack, Eton Screw binder, Die Set 10R 10/14Tip Ree ester, Elect Multi law, Hole 4.5" 'yaw, Hole 4.5" Vrench, 10" Adjustable F 16oz RU aw, Rip 09 piece Accessory :olbat 3pc Locking Vrench, 18" Cast Iron Pipe :utter, 14" Bolt 'Iyer, 10" Tongue Groove 6 1 1,122.00 1 362.10 1 127.50 1 1,684.00 1 986.00 6 252.00 12 26.30 12 9.45 12 110.00 6 226.80 1 8.00 4 1,412.00 4 1,496.00 2 2,566.00 2 2,720.00 16 1,968.00 1 806.00 6 163.02 24 114.00 24 114.00 8 32.80 6 30.00 8 12.00 2 2,671.00 2 158.00 2 664.00 1 452.00 3 657.00 1 668.00 1 14.93 6 2,445.30 6 1,143.54 6 23,994.00 6 4,878.00 1 22,699.00 1 2,031.00 6 870.66 1 750.00 4 311.80 6 330.00 1 165.00 3 78.00 3 42.00 1 7.95 1 26.96 1 19.77 4 71.80 2 24.78 1 17.96 1 4.90 1 21.12 1 19.78 1 31.47 1 31.39 1 8.96 1 4.46 1 15.26 1 17.97 1 17.98 1 25.18 1 13.48 1 11.13 10/21 10/21 11674i'. 10/21 2/1 Iyer, 12" Curved Jaw crewdriver, 20pc Set ne, TF 9" Ht -Visibility ope, 3/8" x 50' hisel, Cold rill, IR 3/8 Reversible isc, Cutting at, Chisel IR H Pro Cut Off W rinder, IR Angle Die ocket, 135pc Metric/SAE atchet, 10' Tiedown Ton Professional Ton Professional 4" Construction rawer, 40" it, Cordless Saw ght, Pelican'Big Ed' lonitor, FX 4 -Gas harger, Gas Monitor ump, Sampling it. Chlorine'C' �r, Decontamination Stainless Steel Hand Pump Accessory Rotary Pump Petro , Grounding Hazmat2XL Cover Yellow LTX Hazmat XL Non -Sparking Collapsible Traffic Bung Sampling 1oz Sampling 4oz Sampling 2oz Scrub Steel ometer, Combo Digital Weight Terrycloth Command Writing Dry Erase Hose Hazardous Materials Response 1 13.44 1 22.46 1 8.96 1 17.95 1 17.96 1 80.50 1 5.38 1 13.47 1 35.97 1 44.86 1 135.00 1 14.37 1 26.98 1 35.98 1 10.32 1 539.10 1 359.10 6 1,018.20 1 1,335.00 1 75.00 1 330.00 1 2,185.00 1 98.00 1 2,200.00 2 55.20 2 105.80 3 216.00 1 28.80 12 60.00 6 24.78 12 60.00 1 19.71 3 143.85 1 11.95 3 414.99 1 36.00 2 30.00 1 4.73 1 20.64 1 16.56 1 14.64 1 13.53 5 25.80 14 155.22 1 9.87 1 29.88 24 9.68 8 4.86 1 -40.00 1 59.95 1 7.88 1 4.41 1 210.00 1 5.52 1 192,803.00 6/21 6/21 7/21 9/1 2004 SHSGP- Troutman 13,453.00 Camera, Tactical IR Search 1 4,224.00 2/28/2005 Shipping 1 30.00 Kit, Shoring and Bracing 1 8,899.00 3/14/2005 Shipping 1 300.00 Camera, Thermal Imaging 1 15,125.00 Shipping 1 65.00 2004 SHSGP- Mooresville 104,451.66 Vehicle, 4WD Utility 1 7,249.00 4/13/2005 Vehicle, 4WD Suburban 1 28,994.47 4/13/2005 Spectrometer, Mass 1 60,625.00 4/13/2005 Tent, Command 1 1,681.82 4/22/2005 Shipping 1 75.00 Case, Storage Pelican Assorted 8 915.72 4/26/2005 Shipping Seal, Drain 3 1,173.00 4/26/2005 Shipping 1 46.50 Clamp, Dome 1 411.95 4/28/2005 Shipping 1 10.00 Kit, Chemical Detection 1 182.26 4/22/2005 Shipping 1 18.93 Barricade, Plastic 6 294.90 4/21/2005 Shipping 1 28.61 Kit, Ultra Drain Plug 1 151.00 4/25/2005 Vest, Command 6 184.80 Shipping 1 11.23 Lightbar, Whelen Liberty LED 1 1,409.90 6/1/2005 Siren, Whelen 1 209.00 Shipping 1 25.00 Can, Refuse 1 32.19 7/21/2005 Ladder, 6' Fiberglass Step 1 62.10 Rope, 100'x3/8" Diamond 1 35.01 Tarp, 12x16 1 32.32 24" Mult 2 26.94 Leader, 1 gal 3 37.71 Wand, Water 36" 3 24.24 Hose, Soft & Supple 4 68.28 Cart, Yellow Garden 1 62.98 Radio, Motorola CM200 1 331.80 7/19/2005 Antenna, CM200 1 40.00 477,136.45 5. Request for Approval of Documents Relating to an N.C. Rural Center Grant Application in Conjunction with the JetCorr, Inc./Pratt Industries Project: At the briefing session, Deputy County Manager Susan Blumenstein said Pratt Industries was planning to relocate its manufacturing facility, and the company had asked the county to assist in applying for an N.C. Rural Center grant totaling $95,000. She said the county was listed to pay $4,750; however, this money would be derived from an economic development incentive previously approved for the company. Blumenstein said the consultant preparing the grant application needed several documents approved, and these were: A. Grant Application B. Authorizing Resolution (as follows) AUTHORIZING RESOLUTION BY GOVERNING BODY OF THE APPLICANT Economic Infrastructure Grants Program WHEREAS, The North Carolina General Assembly passed House Bill 1352 authorizing the making of grants to aid eligible units of government in financing the cost of construction of wastewater treatment works, wastewater collection systems, and water supply systems, that will result in job creation, and WHEREAS, Iredell County has need for and intends to construct or rehabilitate a publicly -owned treatment works or an alternate wastewater system, for wastewater collection systems or for water supply and distribution systems, project described as the Pratt Industries Water/Sewer Project; and WHEREAS, Iredell County intends to request grant assistance from the Economic Infrastructure Grants Program for the project; NOW THEREFORE BE IT RESOLVED, BY THE BOARD OF COMMISSIONERS OF IREDELL COUNTY: That Iredell County will arrange financing for all remaining costs of the project, if approved for a grant. That Iredell County will provide for efficient operation and maintenance of the project on completion of construction thereof. That Sara Haire Tice, Chairperson of the Iredell County Board of Commissioners, and successors so titled, is hereby authorized to execute and file an application on behalf of Iredell County with the NCREDC (Rural Center) for a grant to assist in the construction of the project described above. That Joel Mashburn, County Manager, and successors so titled, is hereby authorized and directed to furnish such information as the Rural Center may request in connection with such application or the project; to make the assurances as contained above; and to execute such other documents as may be required in connection with the application. That Iredell County has substantially complied or will substantially comply with all Federal, State, and local Taws, rules, regulations, and ordinances applicable to the project and to the grants pertaining thereto. Adopted this the 3" day of January 2006 in Iredell County, North Carolina. C. Memorandum of Understanding (as follows) The purpose of this Memorandum of Understanding is to outline conditions and regulations for a general working relationship between the North Carolina Rural Economic Development Center (Rural Center) and the applicant organization regarding the Rural Center Economic Infrastructure Grant Program. The following conditions and regulations apply to all Rural Center Economic Infrastructure Projects: Disbursement Policy The Rural Center will disburse up to 100 percent Economic Infrastructure grant funds upon submission of satisfactory evidence that 100 percent of local funds have been expended. Documentation in support of expenses must accompany the Financial Request Form. Project Schedule A timeline has been provided to the Rural Center as part of the application package. This represents the adopted schedule for this project. The grantee understands that the Rural Center will establish the date for termination of its contract using this information and that time is of the essence. Updates or changes to the project schedule must be provided to the Rural Center as they are adopted by the grantee for use in administering this project. Rural Center reserves the right to reject or ask for further clarification regarding the timeline and its implementation. Contract Time Requirements Rural Center may revoke or revise its approval of funding for the project if work intended is not under contract within six months after the Rural Center approval date of the project and if not completed within one year of Rural Center approval. The Rural Center approval date will be incorporated in the contract as the Commencement Date. Changes in Project Scope It is clearly understood that a change in the project scope may not be implemented without prior written approval from Rural Center and submission to Rural Center of evidence of other funders' approval of the change(s). A change of scope will include any change to the project design, capacity of the system, the number and/or type of customers served, or equipment items purchased. Changes in Project Funding It is further understood that if the grantee receives additional funding for the project after the Rural Center approval, these funds cannot be used to reduce the amount of local funds pledged or to displace other grant funds committed to this project; any such action could result in the reduction of the Rural Center Economic Infrastructure grant by the amount of funds added to the project. If new funds are made available to this project, the Rural Center must be notified immediately. Likewise, it is understood that the local share, as pledged to the Rural Center in the original application, will not be diminished in the event of a cost underrun in the completed project. Cooperation with Primary Funder and Rural Center It is understood that the grantee will cooperate with its other funders as identified in the application and will provide information and reports as prescribed by the funder and will adhere to all applicable regulatory and/or statutory requirements of the Primary Funder and the State of North Carolina particularly as they relate to the procurement of goods and services and in the maintenance of proper accounting records. Reporting Procedure Quarterly progress reports will be submitted to Rural Center as set forth in the terms of the contract document to be executed. The first report will be due 90 days from the date of award. Subsequent quarterly reports will be required until project completion and close of the contract. Final Report A final report is required and will be due upon close of the project. This report will detail the number of jobs created by the specific project. This report must be submitted and approved by the Rural Center prior to disbursement of final funds. D. Resolution for the Establishment of a Policy for Small and Minority Firms (as follows) Iredell County Rural Center Economic Infrastructure Grant Application Pratt Industries Water/Sewer Project WHEREAS, the North Carolina General Assembly passed House Bill 1352 authorizing the making of grants to aid eligible units of government in financing the cost of construction of wastewater treatment works, wastewater collection systems, and water supply systems, that will result in job creation, and WHEREAS, Iredell County has adopted a Resolution to apply to the North Carolina Rural Economic Development Center for a grant under the Economic Infrastructure Grants Program; and, WHEREAS, a Policy for contracting with small and minority firms, women's business enterprises and Tabor surplus firms is required for the program. NOW THEREFORE BE IT RESOLVED, BY THE BOARD OF COMMISSIONERS OF IREDELL COUNTY: That hedell County resolves to adopt the attached Policy for Contracting with Small and Minority Firms to be used throughout the implementation of this project. 10 E. Conflict of Interest Statement (as follows) Iredell County, North Carolina is a municipal corporation organized and chartered under the laws of North Carolina. All County officials and employees are aware of, and in full compliance with NCGS 14-234, "Director of public trust contracting for his own benefit, participation in business transaction involving public funds; exemptions." F. Commitment of Other Funds Form (as follows) COMMITMENT OF OTHER FUNDS FORM Economic Infrastructure Program between North Carolina Rural Economic Development Center, Inc. and Iredell County (applicant) PRoiv,cr TrITE: Pratt Industries Water/Sewer Project ADDRESS: Post Office Box 788 Statesville NC 28687 Provide a copy of correspondence indicating commitment of these funds with the application. Local Funds. Include loans and cash matches from the applicant. Must equal five percent of the total project cost. Amount: $ Funds 2. Other Funds. Include other grant funds. Please attach commitment letters from those agencies to this form when submitting. Iredell County will be applying for a Community Development Block Grant from the North Carolina Department of Commerce for this project. The CDBG application will total $573,846, and will be used for water, sewer, railroad and project administration. A total of $42,750 is directed toward the water and sewer portion of the project. Amount: $ 42,750.00 Source: CDBG (Cash) Amount: $ Source: Amount: $ Amount: $ Source: Source: Applicants for Economic Infrastructure Grant funds may provide the local commitment dollars from a number of sources. NCGS 159 provides guidance on the sources and uses of funds available to units of local government. It also provides that I ) units of local government must operate on a balanced budget and 2) must provide audits and financial statements to the North Carolina Local Government Commission (LGC), the agency that monitors local government units and oversees debt issuance. Public Authorities and Special Districts are covered under NCGS 159. NCGS 159, Subchapter (IV), Article 4, Local Government Bond Act, provides that the net debt of any unit cannot exceed 8% of the assessed value of property subject to taxation by the unit. Revenue bonds and Installment Purchase Agreement debt, while regulated by the LGC, are currently not covered in this limit. NCGS 162A, Article 1, Water and Sewer Authorities, provides that such authorities have the power to issue revenue bonds and revenue refunding bonds to finance capital improvements, subject to LGC approval. In reviewing applications for Economic Infrastructure Funding, the Rural Center will take into consideration the applicant's financial position relative to other, similar units of local government (as through the Ability to Pay Ranking). Consideration will be given to the applicant's ability to handle additional debt as may be required for the project. 3. If GO bonds, Revenue Bonds, Installment Purchase, COPS or Refunding Bonds are being used to finance the project, please indicate below why the amount issued is the maximum feasible amount for the applicant. Applicants may wish to 11 discuss factors such as the current debt load of the unit, a comparison of the debt per capita to units with similar characteristics, future obligations which will require allocation of substantial portions of local revenues, etc. Be brief but specific. NA 4. If no debt is to be issued or used to finance the project, explain the reasons for this decision below. Applicants may wish to discuss factors such as the current debt load of the unit, a comparison of the debt per capita to units with similar characteristics, future obligations which will require allocation of substantial portions of local revenue, special economic factors, costs associated with the issuance, etc. Be brief but specific. Debt does not need to issued or used for this project. G. Performance Agreement 6. Request from the Big Brothers Big Sisters of the Southern Piedmont Organization (SSSS) for the Leasing of Office Space (Annex Building/Space Formerly Occupied by the Reval Dept.): During the agenda briefing, County Manager Joel Mashburn said BBBS had recently sold its building, and the organization's executive director had asked to use space formerly occupied by the county's revaluation department. Mashburn said that due to the county having future plans for the space, BBBS would only be able to occupy the building, if approved, for up to one year. He said the organization was looking for a permanent location, and in fact, had negotiated on one particular site, but the plans had fallen through. Mashburn said the organization had proposed to use the space, as is, and the county's furniture would be moved out. In addition, he said BBBS would be responsible for any painting or carpeting and pay $450 a month for utilities and janitorial services. He said a month-to-month, not to exceed one year, lessor/tenant lease would be drafted. 7. Request for Approval of the December 20, 2005 Minutes END OF CONSENT AGENDA Request for Approval of Budget Amendment #23 in the Amount of $13,950 for Cooperative Extension Service Employees' Salary Adjustments: Cooperative Extension Director Ken Vaughn said the state had approved salary increases for the professional staff in July of 2005. He said the increases had occurred due to recruitment/retainment problems. Vaughn said that in the 1986, the county started funding 50% of the extension's salaries, and he was requesting the additional funding to match the state increases. He mentioned the increases were not budgeted due to the uncertainty of the state budget. OTION by Commissioner Williams to approve Budget Amendment #23 for $13,950 to be derived from the contingency fund for the purpose of increasing the salaries in accordance with the Memorandum of Understanding dated December 17, 1986 by the county and the Agricultural Service Extension. (The increases will be effective as of January 1, 2006.) VOTING: Ayes — 5; Nays — 0. Request for Approval of a Resolution Providing for the Issuance of General Obligation Bonds (Series 2006) in the Amount of $36,400,000: Chairman Tice introduced this resolution, and Finance and Administrative Services Director Susan Blumenstein said that on August 2, 2005, the board of commissioners adopted an issuance order for the General Obligation bonds, not to exceed $44,630,000 to be used for schools. She said the board called for a referendum on October 11, 2005, and it subsequently passed. In addition, she said the referendum authorized the total issuance of the bonds along with a tax rate increase of three cents to cover the debt service. Blumenstein said that on January 24, 2006, bonds totaling $36,400,000 would be sold with the money to be used by the Iredell-Statesville School System for the construction/renovation of schools. She said debt service would be paid annually (February 1) with interest due semi-annually on August I and February 1. Blumenstein said the interest would not be set until the bonds were sold by the Local Government Commission on January 24. She said that probably in May of this year, a similar resolution would be offered for the Mooresville Graded School bonds, and in 2007, yet another resolution would be presented for Mitchell Community College. Mrs. Blumenstein said Mooresville and Mitchell were not ready to move forward with their bonds at the present time. 12 MOTTO by Commissioner Norman to approve the following resolution in conjunction with the Series 2006 General Obligation School Bonds totaling $36,400,000. VOTING: Ayes — 5; Nays — 0. RESOLUTION PROVIDING FOR THE ISSUANCE OF $36,400,000 GENERAL OBLIGATION SCHOOL BONDS, SERIES 2006 BE IT RESOLVED by the Board of Commissioners for the County of Iredell: Section 1. The Board of Commissioners has determined and does hereby find and declare: Section 9. That an order authorizing not exceeding $44,630,000 School Bonds was adopted by the Board of Commissioners for the County of Iredell on August 2, 2005, which order was approved by the vote of a majority of the qualified voters of said County at a referendum duly called and held on October 11, 2005. Section 9. That (i) none of said bonds have heretofore been issued, (it) no notes have been issued in anticipation of the receipt of the proceeds of the sale of said bonds, and (iii) it is necessary to issue $36,400,000 of said bonds at this time. Section 9. ©That the maximum period of usefulness of the improvements to be undertaken with the proceeds of said bonds to be issued is estimated as a period of not less than 30 years from February 1, 2006, the date of said bonds to be issued as hereinafter provided, and that such period expires on February 1, 2036. Section 2. Pursuant to said order, there shall be issued bonds of the County of Iredell, North Carolina (the "Issuer") in the aggregate principal amount of $36,400,000, designated "General Obligation School Bonds, Series 2006" and dated February 1, 2006 (the "Bonds"). The Bonds shall be stated to mature (subject to the right of prior redemption as hereinafter set forth) annually, February 1, $1,300,000 2007 to 2016, inclusive, $1,900,000 2017, $2,500,000 2018 to 2025, inclusive and $1,500,000 2026, and shall bear interest at a rate or rates to be determined by the Local Government Commission of North Carolina (the "LGC") at the time the Bonds are sold, which interest to the respective maturities thereof shall be payable semiannually on February 1 and August 1 of each year, commencing August 1, 2006, until payment of such principal sum. 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. The principal of and the interest on the Bonds shall be payable in any coin or currency of the United States of America which is legal tender for the payment of public and private debts on the respective dates of payment thereof. The Bonds will be issued by means of a book -entry system with no physical distribution of Bond certificates to be made except as hereinafter provided. One fully -registered Bond certificate for each stated maturity of the Bonds, registered in the name of Cede & Co., the nominee of The Depository Trust Company, New York, New York ("DTC'), or such other name as may be requested by an authorized representative of DTC, will be issued and required to be deposited with DTC and immobilized in its custody. The book -entry system will evidence beneficial ownership of the Bonds in the principal amount of $5,000 or any multiple thereof, with transfers of beneficial ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC and its participants. The principal of each Bond shall be payable to Cede & Co. or any other person appearing on the registration books of the Issuer hereinafter provided for as the registered owner of such Bond or his registered assigns or legal representative at the office of the Bond Registrar mentioned hereinafter or such other place as the Issuer may determine upon the presentation and surrender thereof as the same shall become due and payable. Payment of the interest on each Bond shall be made by the Bond Registrar on each interest payment date to the registered owner of such Bond (or the previous Bond or Bonds evidencing the same debt as that evidenced by such Bond) at the close of business on the record date for such interest, which shall be the 15" day (whether or not a business day) of the calendar month next preceding such interest payment date, by check mailed to such person at his address as it appears on such registration books. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC, and transfer of principal and interest payments to beneficial owners of the Bonds by participants of DTC will be the responsibility of such participants and other nominees of such beneficial owners. The Issuer will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing 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 Director of Finance and Administrative Services of the Issuer 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 Issuer will discontinue the book -entry system with DTC. If the Issuer identifies another qualified securities depository to replace DTC, the Issuer will make arrangements with DTC and such other depository to effect such replacement and deliver replacement Bonds registered in the name of such other depository or its nominee in exchange for the outstanding Bonds, and the references 13 to DTC or Cede & Co. in this resolution shall thereupon be deemed to mean such other depository or its nominee. If the Issuer fails to identify another qualified securities depository to replace DTC, the Issuer will deliver replacement Bonds in the form of fully -registered certificates in the denomination of $5,000 or any multiple thereof ("Certificated Bonds") in exchange for the outstanding Bonds as required by DTC and others. Upon the request of DTC, the Issuer may also deliver one or more Certificated Bonds to any participant of DTC in exchange for Bonds credited to its account with DTC. Unless indicated otherwise, the provisions of this resolution that follow shall apply to all Bonds issued or issuable hereunder, whether initially or in replacement thereof. Section 3. The Bonds shall bear the manual or facsimile signatures of the Chairman or Vice Chairman of the Board of Commissioners for the Issuer and the Clerk to said Board and the official seal or a facsimile of the official seal of the Issuer shall be impressed or printed, as the case may be, on the Bonds. The certificate of the LGC to be endorsed on all Bonds shall bear the manual or facsimile signature of the Acting Secretary of the LGC or any assistant designated by him and the certificate of authentication of the Bond Registrar to be endorsed on all Bonds shall be executed as provided hereinafter. In case any officer of the Issuer 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 he 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. 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 of the certificate of authentication endorsed thereon. The Bonds to be registered in the name of Cede & Co. or any other name designated by an authorized representative of DTC and the endorsements thereon shall be in substantially the following forms: UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION ("DTC"), TO ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUIRED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. No. R- ...... $.......... United States of America State of North Carolina COUNTY OFIREDELL GENERAL OBLIGATION SCHOOL BOND, SERIES 2006 Maturity Date Interest Rate CUSIP February 1, 20.. ...% ............ The County of Iredell, North Carolina (the "Issuer"), a political subdivision of the State of North Carolina, is justly indebted and for value received hereby promises to pay to CEDE & CO. or registered assigns or legal representative on the date specified above, upon the presentation and surrender hereof, at the office of the Director of Finance and Administrative Services of the Issuer (the "Bond Registrar"), Iredell County Government Center, 200 South Center Street, Statesville, North Carolina 28677, the principal sum of MILLION HUNDRED THOUSAND DOLLARS and to pay interest on such principal sum from the date hereof or from the February 1 or August 1 next preceding the date of authentication to which interest shall have been paid, unless such date of authentication is a February 1 or August 1 to which interest shall have been paid, in which case from such date, such interest to the maturity hereof being payable semiannually on February 1 and August 1 in each year, commencing August 1, 2006, at the rate per annum specified above, until payment of such principal sum. The interest so payable on any such interest payment date will be paid to the person in whose name this bond (or the previous bond or bonds evidencing the same debt as that evidenced by this bond) is registered at the close of business on the record date for such interest, which shall be the 15°i day (whether or not a business day) of the calendar month next preceding such interest payment date, by check mailed to such person at his address as it appears on the bond registration books of the Issuer. Both the principal of and the interest on this Bond shall be paid in any coin or currency of the United States of America that is legal tender for the payment of public and private debts on the respective dates of payment thereof. For the prompt payment hereof, both principal and interest as the same shall become due, the faith and credit of the Issuer are hereby irrevocably pledged. 14 This bond is one of an issue of bonds designated "General Obligation School Bonds, Series 2006" (the "Bonds") and issued by the Issuer for the purpose of providing funds, together with any other available funds, for financing school facilities, and this bond is issued under and pursuant to The Local Government Bond Act, as amended, Article 7, as amended, of Chapter 159 of the General Statutes of North Carolina, an order adopted by the Board of Commissioners for the Issuer, which order was approved by the vote of a majority of the qualified voters of the County of Iredell who voted thereon at a referendum duly called and held, and a resolution duly passed by said Board (the "Resolution"). The Bonds maturing prior to February 1, 2017 are not subject to redemption prior to maturity. The Bonds maturing on February 1, 2017 and thereafter may be redeemed, at the option of the Issuer, from any moneys that may be made available for such purpose, either in whole or in part on any date not earlier than February 1, 2016, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed, plus interest accrued thereon to the date fixed for redemption. If less than all of the Bonds of any one maturity shall be called for redemption, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot in such manner as the Issuer in its discretion may determine; provided, however, that the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some multiple thereof and that, in selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000; provided further, however, that, so long as a book -entry system with The Depository Trust Company, New York, New York ("DTC'), is used for determining beneficial ownership of Bonds, if less than all of the Bonds within a maturity are to be redeemed, DTC shall determine by lot the amount of the interest of each DTC direct participant in the Bonds to be redeemed. If less than all of the Bonds shall be called for redemption, the maturities of the Bonds or portions of Bonds to be redeemed shall be determined by the Issuer. Not more than sixty (60) nor less than thirty (30) days before the redemption date of any Bonds to be redeemed, whether such redemption be in whole or in part, the Issuer shall cause a notice of such redemption to be filed with the Bond Registrar and given by certified or registered mail to Cede & Co. at its address appearing upon the registration books of the Issuer. On the date fixed for redemption, notice having been given as aforesaid, the Bonds or portions thereof so called for redemption shall be due and payable at the redemption price provided for the redemption of such Bonds or portions thereof on such date plus accrued interest to such date and, if moneys for payment of such redemption price and the accrued interest have been deposited by the Issuer as provided in the Resolution, interest on the Bonds or the portions thereof so called for redemption shall cease to accrue. If a portion of this Bond shall be called for redemption, a new Bond or Bonds in principal amount equal to the unredeemed portion hereof will be issued to Cede & Co. or its legal representative upon the surrender hereof. Any notice of redemption may state that the redemption to be effected is conditioned upon the receipt by the Issuer, on or prior to the redemption date, of moneys sufficient to pay the redemption price of and interest on the Bonds to be redeemed and that if such moneys are not so received, such notice shall be of no force or effect and such Bonds shall not be required to be redeemed. In the event that such notice contains such a condition and moneys sufficient to pay the redemption price of and interest on such Bonds are not received by the Issuer on or prior to the redemption date, the redemption shall not be made and the Issuer shall within a reasonable time thereafter give notice, in the manner in which the notice of redemption was given, that such moneys were not so received. The Bonds are being issued by means of a book -entry system with no physical distribution of bond certificates to be made except as provided in the Resolution. One Bond certificate with respect to each date on which the Bonds are stated to mature, in the aggregate principal amount of the Bonds stated to mature on such date and registered in the name of Cede & Co., a nominee of DTC, is being issued and required to be deposited with DTC and immobilized in its custody. The book -entry system will evidence ownership of the Bonds in the principal amount of $5,000 or any multiple 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. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC, and transfer of principal and interest payments to beneficial owners of the Bonds by participants of DTC will be the responsibility of such participants and other nominees of such beneficial owners. The Issuer will not be responsible or liable for such transfers of payments or for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. In certain events, the Issuer will be authorized to deliver replacement Bonds in the form of fully -registered certificates in the denomination of $5,000 or any multiple thereof in exchange for the outstanding Bonds as provided in the Resolution. At the office of the Bond Registrar, in the manner and subject to the conditions provided in the Resolution, Bonds may be exchanged for an equal aggregate principal amount of Bonds of the same maturity, of authorized denominations and bearing interest at the same rate. The Bond Registrar shall keep at her office the books of the Issuer for the registration of transfer of Bonds. The transfer of this Bond may be registered only upon such books and as otherwise provided in the Resolution upon the surrender hereof to the Bond Registrar together with an assignment duly executed by the registered owner hereof or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar. Upon any such registration of transfer, the Bond Registrar shall deliver in exchange for this Bond a new Bond or Bonds, registered in the name of the transferee, of authorized denominations, in an 15 aggregate principal amount equal to the unredeemed principal amount of this Bond, of the same maturity and bearing interest at the same rate. The Bond Registrar shall not be required to exchange or register the transfer of any Bond during a period beginning at the opening of business fifteen (15) days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or of any Bond called for redemption in whole or in part pursuant to the Resolution. It is hereby certified and recited that all acts, conditions and things required by the Constitution and laws of North Carolina to happen, exist and be performed precedent to and in the issuance of this Bond have happened, exist and have been performed in regular and due form and time as so required; that provision has been made for the levy and collection of a direct annual tax upon all taxable property within the boundaries of the Issuer sufficient to pay the principal of and the interest on this Bond as the same shall become due; and that the total indebtedness of the Issuer, including this Bond, does not exceed any constitutional or statutory limitation thereon. This Bond shall not be valid or become obligatory for any purpose or be entitled to any benefit or security under the Resolution until this Bond shall have been authenticated by the execution by the Bond Registrar of the certificate of authentication endorsed hereon. IN WITNESS WHEREOF, the Issuer, by resolution duly passed by its Board of Commissioners, has caused this bond to be manually signed by the Chairman of said Board and the Clerk to said Board and its official seal to be impressed hereon, all as of the 1s' day of February, 2006. Chairman of the Board of Commissioners Clerk to the Board of Commissioners CERTIFICATE OF LOCAL GOVERNMENT COMMISSION The issuance of the within bond has been approved under the provisions of The Local Government Bond Act of North Carolina. Secretary, Local Government Commission CERTIFICATE OF AUTHENTICATION This bond is one of the Bonds of the series designated herein and issued under the provisions of the within -mentioned Resolution. Director of Finance and Administrative Services of the County of Iredell, North Carolina, as Bond Registrar By Authorized Signatory Date of authentication: ASSIGNMENT FOR VALUE RECEIVED the undersigned registered owner thereof hereby sells, assigns and transfers unto the within bond and all rights thereunder and hereby irrevocably constitutes and appoints attorney to register the transfer of said bond on the books kept for registration thereof, with full power of substitution in the premises. Date: NOTICE: The assignor's signature to this Signature Guaranteed: assignment must correspond with the name as it appears upon the face of the within bond in NOTICE: Signature(s) must be guaranteed by an every particular, without alteration or institution which is a participant in the Securities 16 Transfer Agent Medallion Program (STAMP) or enlargement or any change whatever. similar program. Certificated Bonds issuable hereunder shall be in substantially the form of the Bonds registered in the name of Cede & Co. with such changes as are necessary to reflect the provisions of this resolution that are applicable to Certificated Bonds. Section 4. The Bonds maturing prior to February 1, 2017 will not be subject to redemption prior to maturity. The Bonds maturing on February 1, 2017 and thereafter will be redeemable, at the option of the Issuer, from any moneys that may be made available for such purpose, either in whole or in part on any date not earlier than February 1, 2016, at a redemption price equal to 100% of the principal amount of Bonds to be redeemed, plus interest accrued thereon to the date fixed for redemption. If less than all of the Bonds of any one maturity shall be called for redemption, the particular Bonds or portions of Bonds of such maturity to be redeemed shall be selected by lot in such manner as the Issuer in its discretion may determine; provided, however, that the portion of any Bond to be redeemed shall be in the principal amount of $5,000 or some multiple thereof and that, in selecting Bonds for redemption, each Bond shall be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000; provided further, however, that, so long as a book -entry system with DTC is used for determining beneficial ownership of Bonds, if less than all of the Bonds within a maturity are to be redeemed, DTC shall determine by lot the amount of the interest of each DTC direct participant in the Bonds to be redeemed. If less than all of the Bonds shall be called for redemption, the maturities of the Bonds or portions of Bonds to be redeemed shall be determined by the Issuer. Not more than sixty (60) nor less than thirty (30) days before the redemption date of any Bonds to be redeemed, whether such redemption be in whole or in part, the Issuer shall cause a notice of such redemption to be filed with the Bond Registrar and to be mailed, postage prepaid, to the registered owner of each Bond to be redeemed in whole or in part at his address appearing upon the registration books of the Issuer, provided that such notice to Cede & Co. shall be given by certified or registered mail. Failure to mail such notice or any defect therein shall not affect the validity of the redemption as regards registered owners to whom such notice was given as required hereby. Each such notice shall set forth the date designated for redemption, the redemption price to be paid and the maturities of the Bonds to be redeemed. In the event that Certificated Bonds are outstanding, each such notice to the registered owners thereof shall also set forth, if less than all of the Bonds of any maturity then outstanding shall be called for redemption, the distinctive numbers and letters, if any, of such Bonds to be redeemed and, in the case of any Bond to be redeemed in part only, the portion of the principal amount thereof to be redeemed. If any Bond is to be redeemed in part only, the notice of redemption shall state also that on or after the redemption date, upon surrender of such Bond, a new Bond or Bonds in principal amount equal to the unredeemed portion of such Bond will be issued. Any notice of redemption may state that the redemption to be effected is conditioned upon the receipt by the Issuer, on or prior to the redemption date, of moneys sufficient to pay the redemption price of and interest on the Bonds to be redeemed and that if such moneys are not so received, such notice shall be of no force or effect and such Bonds shall not be required to be redeemed. In the event that such notice contains such a condition and moneys sufficient to pay the redemption price of and interest on such Bonds are not received by the Issuer on or prior to the redemption date, the redemption shall not be made and the Issuer shall within a reasonable time thereafter give notice, in the manner in which the notice of redemption was given, that such moneys were not so received. On or before the date fixed for redemption, moneys shall be deposited with the Bond Registrar to pay the redemption price of the Bonds or portions thereof called for redemption as well as the interest accruing thereon to the redemption date thereof. On the date fixed for redemption, notice having been given in the manner and under the conditions hereinabove provided, the Bonds or portions thereof called for redemption shall be due and payable at the redemption price provided herefore, plus accrued interest to such date. If moneys sufficient to pay the redemption price of the Bonds or portions thereof to be redeemed, plus accrued interest thereon to the date fixed for redemption, have been deposited by the Issuer to be held in trust for the registered owners of Bonds or portions thereof to be redeemed, interest on the Bonds or portions thereof called for redemption shall cease to accrue, such Bonds or portions thereof shall cease to be entitled to any benefits or security under this resolution or to be deemed outstanding, and the registered owners of such Bonds or portions thereof shall have no rights in respect thereof except to receive payment of the redemption price thereof, plus accrued interest to the date of redemption. If a portion of a Bond shall be selected for redemption, the registered owner thereof or his attorney or legal representative shall present and surrender such Bond to the Bond Registrar for payment of the principal amount thereof so called for redemption, and the Bond Registrar shall authenticate and deliver to or upon the order of such registered owner or his legal representative, without charge herefore, for the unredeemed portion of the principal amount of the Bond so surrendered, a Bond or Bonds of the same maturity, of any denomination or denominations authorized by this resolution and bearing interest at the same rate. Section 5. Bonds, upon surrender thereof at the office of the Bond Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar, may, at the option of the registered owner thereof, be exchanged 17 for an equal aggregate principal amount of Bonds of the same maturity, of any denomination or denominations authorized by this resolution and bearing interest at the same rate. The transfer of any Bond may be registered only upon the registration books of the Issuer upon the surrender thereof to the Bond Registrar together with an assignment duly executed by the registered owner or his attorney or legal representative in such form as shall be satisfactory to the Bond Registrar. Upon any such registration of transfer, the Bond Registrar shall authenticate and deliver in exchange for such Bond a new Bond or Bonds, registered in the name of the transferee, of any denomination or denominations authorized by this resolution, in an aggregate principal amount equal to the unredeemed principal amount of such Bond so surrendered, of the same maturity and bearing interest at the same rate. In all cases in which Bonds shall be exchanged or the transfer of Bonds shall be registered hereunder, the Bond Registrar shall authenticate and deliver at the earliest practicable time Bonds in accordance with the provisions of this resolution. All Bonds surrendered in any such exchange or registration of transfer shall forthwith be cancelled by the Bond Registrar. The Issuer or the Bond Registrar may make a charge for shipping and out-of-pocket costs for every such exchange or registration of transfer of Bonds sufficient to reimburse it for any tax or other governmental charge required to be paid with respect to such exchange or registration of transfer, but no other charge shall be made by the Issuer or the Bond Registrar for exchanging or registering the transfer of Bonds under this resolution. The Bond Registrar shall not be required to exchange or register the transfer of any Bond during a period beginning at the opening of business fifteen (15) days before the day of the mailing of a notice of redemption of Bonds or any portion thereof and ending at the close of business on the day of such mailing or of any Bond called for redemption in whole or in part pursuant to Section 4 of this resolution. As to any Bond, the person in whose name the same shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and payment of or on account of the principal or redemption price of any such Bond and the interest on any such Bond shall be made only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or sums so paid. The Issuer 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 and interest with respect to the Bonds. The Director of Finance and Administrative Services of the Issuer is hereby appointed the registrar, transfer agent and paying agent for the Bonds (collectively the "Bond Registrar"), subject to the right of the governing body of the Issuer to appoint another Bond Registrar, and as such shall keep at his office the books of the Issuer for the registration, registration of transfer, exchange and payment of the Bonds as provided in this resolution. Section 6. The Issuer covenants that, to the extent permitted by the Constitution and laws of the State of North Carolina, it will comply with the requirements of the Code, except to the extent that the Issuer obtains an opinion of bond counsel to the effect that noncompliance would not result in interest on the Bonds being includable in gross income of the owners of the Bonds for purposes of federal income taxation. Section 7. The Issuer hereby undertakes, for the benefit of the beneficial owners of the Bonds, to provide: Section 9. by not later than seven months from the end of each fiscal year of the Issuer, commencing with the fiscal year ending June 30, 2006, 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 Issuer 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, or, if such audited financial statements of the Issuer are not available by seven months from the end of such fiscal year, unaudited financial statements of the Issuer for such fiscal year to be replaced subsequently by audited financial statements of the Issuer to be delivered within 15 days after such audited financial statements become available for distribution; Section 9. by not later than seven months from the end of each fiscal year of the Issuer, commencing with the fiscal year ending June 30, 2006, 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' (excluding information on underlying units) in the Official Statement relating to the Bonds and (ii) the combined budget of the Issuer for the current fiscal year, to the extent such items are not included in the audited financial statements referred to in (a) above; Section 9. Oin 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: 18 Section 9. principal and interest payment delinquencies; Section 9. non-payment related defaults; Section 9. unscheduled draws on debt service reserves reflecting financial difficulties; Section 9. unscheduled draws on any credit enhancements reflecting financial difficulties; Section 9. substitution of any credit or liquidity providers, or their failure to perform; Section 9. adverse tax opinions or events affecting the tax-exempt status of the Bonds; Section 9. modification to the rights of the beneficial owners of the Bonds; Section 9. call of any of the Bonds for redemption; Section 9. defeasance of any of the Bonds; Section 9. release, substitution or sale of property securing repayment of the Bonds; and Section 9. rating changes; and Section 9. in a timely manner, to each NRMSIR or to the MSRB, and to the SID, if any, notice of a failure of the Issuer to provide required annual financial information described in (a) or (b) above on or before the date specified. To the extent permitted by the U.S. Securities and Exchange Commission, the Issuer may discharge the undertaking described above by transmitting electronically such financial statements, financial and statistical information and notices to www.disclosurcusa.org. If the Issuer fails to comply with the undertaking described above, any beneficial owner of the Bonds then outstanding may take action to protect and enforce the rights of 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. The Issuer 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 Issuer, provided that: Section 9. 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 Issuer; Section 9. the information to be provided, as modified, would have complied with the requirements of Rule 15c2-12 issued under the Securities Exchange Act of 1934 ("Rule 15c2-12") as of the date of the Official Statement, after taking into account any amendments or interpretations of Rule 15c2-12, as well as any changes in circumstances; and Section 9. ©any such modification does not materially impair the interests of the beneficial owners, as determined either by parties unaffiliated with the Issuer (such as bond counsel), or by approving vote of the registered owners of not less than a majority in principal amount of the Bonds then outstanding pursuant to the terms of this bond resolution, as it may be amended from time to time. The Issuer agrees that the annual financial information containing the amended operating data or financial information will explain, in narrative form, the reasons for the amendments and the impact of the change in the type of operating data or financial information being provided. The provisions of this Section 8 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. Section 8. The actions of the Director of Finance and Administrative Services of the Issuer in applying to the LGC to sell the Bonds and the LGC in asking for sealed bids for the Bonds by distributing a notice of sale and a Preliminary Official Statement relating to the Bonds are hereby approved. Such Preliminary Official Statement, to be dated January 13, 2006 and in substantially the form presented at this meeting, is hereby approved, and the Chairman of the Board of Commissioners, the County Manager and the Director of Finance and Administrative Services of the Issuer are each hereby authorized to approve the Official Statement, in substantially the form of the Preliminary Official Statement, including changes necessary to reflect the interest rates on the Bonds, the offering prices of the Bonds and any credit 19 enhancement for the Bonds purchased by the successful bidder, and to execute such Official Statement for and on behalf of the Issuer. Section 9. This resolution shall take effect upon its passage. Commissioner Johnson asked if splitting up the bonds into three separate packages would increase the administrative costs. Blumenstein said yes. She said there would be increased legal fees but not an appreciable amount. She said Iredell-Statesville could not delay due to the need to stay within its construction timeline. She said Mooresville had done everything possible to be ready, but the system would not have its bids ready, which was a requirement. ANNOUNCEMENT OF VACANCIES OCCURRING ON BOARDS & COMMISSIONS Statesville Planning Board (ETJ) (1 announcement) Hazardous Waste & Low Level Radioactive Waste Management Board (1 announcement) Industrial Facilities & Pollution Control Financing Authority (1 announcement) APPOINTMENTS TO BOARDS & COMMISSIONS Animal Grievance Committee (1 appointment): No nominations were submitted, and Chairman Tice made a motion to postpone the appointment until the January 17 meeting. VOTING: Ayes — 5; Nays — 0. Adult Care Home Community Advisory Committee (5 appointments): No nominations were submitted, and Commissioner Norman made a motio to postpone the five appointments until the January 17 meeting. VOTING: Ayes — 5; Nays — 0. Nursing Home Advisory Committee (2 appointments): No nominations were submitted, and Chairman Tice made a motion to postpone the two appointments until the January 17 meeting. VOTING: Ayes — 5; Nays — 0. Criminal Justice Partnership Program (2 appointments): No nominations were submitted, and Chairman Tice made a motion to postpone the two appointments until the January 17 meeting. VOTING: Ayes — 5; Nays — 0. Equalization & Review Board (6 appointments): Commissioner Williams nominated John Douglas, Bill Thunberg, Wayne Robertson, Larry D. Galliher, and Marcia Fruehan -- all as regular members -- and Sam Hall as the alternate. OTION by Chairman Tice to close the nominations and appoint Douglas, Thunberg, Robertson, Galliher, Fruehan, and Hall by acclamation. VOTING: Ayes — 5; Nays — 0. Commissioner Johnson nominated John Douglas as the Chairman for the Board of Equalization and Review. OTION by Chairman Tice to close the nominations and appoint John Douglas as the Chairman for the 2006 Board of Equalization and Review by acclamation. VOTING: Ayes — 5; Nays — 0. 20 Commissioner Norman nominated Bill Thunberg as the Vice Chairman for the Board of Equalization and Review. OTIO by Chairman Tice to close the nominations and appoint Bill Thunberg as the Vice Chairman for the 2006 Board of Equalization and Review by acclamation. VOTING: Ayes — 5; Nays — 0. Juvenile Crime Prevention Council (1 appointment): No nominations were submitted, and Commissioner Norman made a motio to postpone the appointment until the January 17 meeting. VOTING: Ayes — 5; Nays — 0. Centralina Economic Development Commission (1 or 2 appointments): No nominations were submitted, and Chairman Tice made a motio to postpone the appointment(s) until the January 17 meeting. VOTING: Ayes — 5; Nays — 0. COUNTY MANAGER'S REPORT: County Manager Joel Mashburn praised Fire Marshal Lloyd Ramsey for the investigative work, both during and after, the Purina Mills (Land of the Lakes) Company fire. Mashburn said Mr. Ramsey had continuously worked over 30 hours straight due to the tragic plant fire that critically injured one person and caused the death of another. ADJOURNMENT: There being no further business, Chairman Tice at 7:50 P.M., made a notion to adjourn the meeting. NEXT MEETING: Tuesday, January 17, 2005, at 5 and 7 P.M., in the Iredell County Government Center, 200 South Center Street, Statesville, NC. VOTING: Ayes — 5; Nays — 0. APPROVED: 21 Clerk to the Board