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HomeMy WebLinkAboutSeptember_15_2015_Regular_MinutesIREDELL COUNTY BOARD OF COMMISSIONERS PRE -AGENDA MINUTES September 15, 2015 The Iredell County Board of Commissioners met in pre -agenda session on Tuesday, September 15, 2015, at 5:30 PM, in the Iredell County Government Center (South Wing Conference Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman James B. Mallory III Vice Chairman Marvin Norman Tommy Bowles Steve Johnson Ken Robertson Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County Manager Beth Jones, Finance Director Susan G. Robertson, Attorney Lisa Valdez, Public Safety Director David Saleeby, Assistant to the Manager Ben Stikeleather, and Clerk to the Board Retha Gaither. CALL TO ORDER: Chairman James Mallory called the meeting to order. ADJUSTMENTS TO THE AGENDA: County Manager Ron Smith said there were no adjustments. However, Deputy Bert Connolly and Finance Director Susan Robertson will report on the jail's budget as requested at the last meeting. ADMINISTRATIVE MATTERS Request from the Library for Approval of NC Cardinal Migration Grant and BA #10: Library Director Steve Messick requested the Board's approval of a grant received from the State Library in the amount of $41,578.00. This will allow the Library to migrate to NC Cardinal, which is a state wide group of 27 public libraries that share a computer network used for the checking in/out of books, patron data base, and cataloging of books. This grant money will be used to convert the Library's data and transfer it to the new system. Moving to NC Cardinal will save a significant amount of money. The current hardware has annual costs and is reaching its end of life and, therefore, it is estimated the Library would spend approximately $87,000 in fees and replacements. The grant will pay the total cost for FY 16 to migrate and operate under Cardinal which is scheduled to go live in April 2016. The grant will pay the full cost of membership in FY 17. The membership cost of $8,000 per year will then be assumed by the Library in FY 18. NC Cardinal will all be on- line and no hardware will be housed at the Library. This item was placed on the consent agenda. Request from the Finance Department to Adopt a Resolution Providing for the Issuance of Not to Exceed $40,000,000 General Obligation School Bonds: Finance Director Susan Robertson said this is for the Mooresville High School project. The Board must adopt this resolution to begin the project. The plan is to issue $37 million but net $40 million. It gives some September 15, 2015 leeway until bids are accepted, which means it could be more or less. This will not require any additional tax increases other than what has already been adopted and implemented. There will be a 19 -year payback. The current market interest rate is 3% but it could change. A principal payment is due in April and an interest payment will be due in October. There should be enough to cover closing costs, the underwriter's discount and net Mooresville $40 million. Currently, there is a very good market for bonds because there hasn't been much North Carolina debt within the last thirty days. Mooresville's project is estimated at $42 million and the difference will be covered by lottery proceeds and a public school capital fund. Bids are due September 22. Chairman Mallory suggested this be conducted at the 7:00 regular session and was not placed on the consent agenda. County Attorney Bill Pope stated the bond buyers believe the interest rates will be low for a long time and are willing to pay a little more than par to get the good rate. Request from the Finance Department to Approve BA #11 to Reimburse Iredell- Statesville Schools for Permit Fees: Finance Director Susan Robertson said the Board agreed to reimburse Iredell-Statesville Schools, Mooresville and Mitchell for building permit fees incurred for construction projects. This item was placed on the consent agenda. BA#11 To appropriate Contingency to Iredell-Statesville Schools & Mooresville Graded Schools for Permits issued by Iredell County Inspections Department during FYI 5 for "internal' 9/15/2015 building projects. Account # Current Budget I Chane I Amended Budget 105480 530200 Contingency - (7,486) (7,486) 105700 560002 Iredell-Statesville - Capital Outlay 4,524,320 6,882 4,531,202 105700 560202 Mooresville Graded - Capital Outlay 395,666 604 396,270 Request from the Finance Department for Approval of Credit/Debit Card Convenience Fees: Finance Director Susan Robertson said one department that hasn't been accepting debit/credit cards has shown some interest in allowing the use. However, without knowing how it will affect their bottom line they are requesting approval to charge a convenience fee. The Tax Department uses a service called "Official Payments" where a fee is charged for on- line payments. That service is also used at EMS and the Inspections Department will be using that same service soon. This item was placed on the consent agenda. Request from Tax Administration for Approval of Refunds & Releases: County Manager Ron Smith said these were in order. This item was placed on the consent agenda. Request for Approval of the September 1, 2015 Minutes: There were no corrections to the minutes. This item was placed on the consent agenda. September 15, 2015 2 UNFINISHED BUSINESS Finance Director Susan Robertson stated that Commissioner Johnson had requested an estimate of expenses through the end of the year for outside confinement of inmates. In July the average was 20 inmates a day for a total of 631 bed days, in August it was 35 inmates a day which totaled 1,091 bed days. The estimate is 40 inmates a day for the remainder of the year. The total estimated costs for FYI 6 are $666,310. Deputy Bert Connolly said currently there are 280 inmates in Iredell County. They will probably put additional inmates in Wilkes County Jail which will total about 35. The weekend may bring more and feels the estimate of 40 is a solid number. Commissioner Johnson said these numbers are only inmates housed outside of the County and does not include the annex. S. Robertson said that is correct. Inmates at the annex are not included. The confinement is the cost over/above what it costs inside the County. Connolly said pump and haul at the annex is budgeted at $240,000. Connolly reminded the Board of other costs, such as medical issues. A deputy is sent from Iredell, each shift, every day, to "sit" with an inmate hospitalized in or out of the county. The jail is staffed for 277 inmates, but not for 320 or 380, and therefore it is putting a strain on the staff. Currently there are 80 inmates on day time medications and 60 on night medications. Other counties will not take those inmates because they don't have 24 -hr medical like Iredell. The pool of inmates to send out of county is very thin. Commissioner Johnson said thought needs to be given to the continue rise of out of county costs and pump/haul costs as they relate to the building of a new jail. Chainnan Mallory adjourned the meeting into closed session at 6:00 PM. 1REDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES September 15, 2015 The Iredell County Board of Commissioners met in regular session on Tuesday, September 15, 2015, at 7:00 PM, in the Iredell County Government Center (Commissioners' Meeting Room), 200 South Center Street, Statesville, NC. Board Members Present Chairman James B. Mallory III Vice Chairman Marvin Norman Tommy Bowles Steve Johnson Ken Robertson September 15, 2015 Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County Manager Beth Jones, Finance Director Susan G. Robertson, Attorney Lisa Valdez, Assistant to the Manager Ben Stikeleather, and Clerk to the Board Retha Gaither. CALL TO ORDER by Chairman Mallory. INVOCATION: Chairman James Mallory asked everyone to bow their heads for a moment of silence. An unidentified person from the audience prayed aloud on their own accord. PLEDGE OF ALLEGIANCE led by Chairman Mallory. ADJUSTMENTS TO THE AGENDA: County Manager Ron Smith stated the closed session items were discussed following the pre -agenda session and therefore are removed from the regular meeting. PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS (None) APPOINTMENTS BEFORE THE BOARD (None) PUBLIC HEARINGS Public Hearing to Consider an Economic Development Incentive for Project SDC: Statesville Regional Development Mike Smith said this request is for consideration of an industrial grant for a company looking to locate its new facility in Iredell County. The company will acquire an existing building in Statesville that has been vacant for several years. They will investment $4 million over the next 12 months. The company will eventually hire 40 full-time employees with a salary of more than $20 per hour. The company will locate a new craft distillery to this area. The request is for a performance based grant on a total investment of $4 million, over a five year period, as specified by the current county policy, for a total incentive of $69,126.00. This project will reuse a currently vacant manufacturing building and local agriculture resources for the raw materials as well as attracting visitors to actually view the manufacturing process. Chairman Mallory opened the public hearing. No one from the public desired to speak. Chairman Mallory closed the public hearing. MOT10N by Commissioner Ken Robertson to approve an economic incentive of $69,126 over a five year period for Project SDC based on the company's investment of $4 million and contingent upon a contract being executed within 180 days. VOTING: Ayes — 5; Nays — 0 ADMINISTRATIVE MATTERS County Manager Ron Smith summarized the following items that were placed on the consent agenda: September 15, 2015 4 • Request from the Library for approval of NC Cardinal Migration Grant and BA #10. • Request from the Finance Department to approve BA #11 to reimburse Iredell-Statesville Schools for permit fees. • Request from the Finance Department for approval of credit/debit card convenience fees. • Request from Tax Administration for approval of refunds and releases. • Request for approval of the September 1, 2015 minutes. MOTION by Commissioner Steve Johnson to approve the consent agenda as presented. VOTING: Ayes — 5; Nays — 0 Request from the Finance Department to Adopt a Resolution Providing for the Issuance of Not to Exceed $40,000,000 General Obligation School Bonds: Finance Director Susan Robertson stated that a referendum was held in November of 2014. Voters approved $131 million in general obligation bonds. General obligation means they are backed by the full faith and credit of the County. So far $12,700,000 has been issued which were sold in February of 2015 for Iredell-Statesville Schools. The Mooresville High School project is ready for their bonds to be sold. The sale date is scheduled for October 6, 2015. The following resolution should be adopted to continue with that process. (S. Robertson read the title of the resolution.) It is anticipated to issue approximately 536.7 million of bonds and the premium on those bonds will provide for the $40 million that was approved for Mooresville Graded Schools. A three percent interest rate is anticipated on the bonds, but it is subject to the market. Bids will be accepted at the North Carolina Local Government Commission on October 6. The bonds will be sold in $5,000 increments. The face of the bond will show the signature of the Board Chairman, the Clerk to the Board as well of the County Seal. In addition the Secretary of the Local Government Commission will also sign the bonds. A principal payment will be due in April of each year and an interest payment in October of each year. These bonds can be used for no other purpose except schools and this particular one is designated for Mooresville Graded Schools. Each year, the County will be required to provide certain information to a national reporting agency as to the financial well-being and to ensure all bond covenants have been met. Chairman Mallory asked Robertson to explain the process of how to get $40 million when only borrowing $36 million. S. Robertson said that current market conditions are such that investors believe interest rates are going to be low for a very long time, maybe as long as 20 years. In order to earn a higher annual interest rate on the bonds they purchase they are willing to pay a premium to get those bonds. That premium is what will provide additional funding to bring the $36.7 million to $40 million. That could be adjusted on market date. G.O. bonds in North Carolina are at a premium and there haven't been any issues in the last 45 days. Iredell County's debt is considered very good. The cost of the project is estimated at $42 million but they will use public school building capital funds and $2.1 million in lottery proceeds that Mooresville has accumulated to make up the difference. September 15, 2015 OTION by Vice Chairman Norman to approve the adoption of the resolution for $40 million school bonds. VOTING: Ayes — 5; Nays — 0 County Attomey Bill Pope added that part of the reason for the premium on the bonds is because of the financial integrity of Iredell County's financial history and conservative government. It is a tribute to Susan Robertson, the Board of Commissioners and prior Commissioners that this premium is available for these bonds. Chairman Mallory stated that Iredell County has a top-notch finance department. He expressed appreciation to previous board members and to the staff. RESOLUTION PROVIDING FOR TIME ISSUANCE OF NOT TO EXCEED $40,000,000 GENERAL OBLIGATION SCHOOL BONDS, SERIES 2015C BE IT RESOLVED by the Board of Commissioners (the "Board") for the County of Iredell, North Carolina (the "County"): Section 1. The Board has determined and does hereby find and declare as follows: (a) An order authorizing $119,000,000 School Bonds (the "School Bonds") was adopted by the Board for the County on August 5, 2014, as amended and restated on August 19, 2014, which order was approved by the vote of a majority of the qualified voters of the County who voted thereon at a referendum duly called and held on November 4, 2014. $12,700,000 of the School Bonds have heretofore been issued by the County. (b) Except as noted above, no notes have been issued in anticipation of the receipt of the proceeds of the sale of said bonds, and it is necessary to issue not to exceed $40,000,000 of the School Bonds at this time. (c) The maximum period of usefulness of the school facilities improvements to be provided with the proceeds of said bonds is estimated as a period of forty (40) years from October 27, 2015, the date of the bonds for such school facilities improvements authorized hereby, and that such period expires on October 27, 2055. Section 2. Pursuant to said order, there shall be issued bonds of the County in the aggregate principal amount of $36,695,000 (subject to adjustment pursuant to the provisions set forth below) designated "General Obligation School Bonds, Series 2015C" and dated the date of delivery thereof (the "Bonds"). Initially, the Bonds shall be stated to mature annually, subject to adjustment pursuant to the provisions set forth below, April 1, $1,835,000 2017 to 2035, inclusive, and $1,830,000 2036; and shall bear interest at a rate or rates to be determined by the Local Government Commission of North Carolina at the time the Bonds are sold, which interest to the respective maturities thereof shall be payable semiannually on each April 1 and October I, beginning April 1, 2016, until payment of such principal sum. Subject to the limitations set forth in Section 159-65 of the General Statutes of North Carolina, the County reserves the right to adjust the aggregate principal amount of the Bonds and adjust the principal amount of each maturity of the Bonds in the manner hereinafter provided, provided that the aggregate principal amount of the Bonds shall not exceed $40,000,000. The aggregate principal amount and the principal amount of each maturity of the Bonds set forth above are subject to adjustment, both before and after the receipt and opening of sealed bids for their purchase, by the County Manager and the Director of Finance and Administration. The adjustments to the individual maturities and aggregate principal amounts shall be made, with the advice of the Local Government Commission and the Financial Advisor to the County, to reflect anticipated and actual market conditions at the time of the sale of the Bonds pursuant to Section 7 below, such that, as nearly as reasonably practicable, (1) the County will realize $40,000,000 of bond proceeds (consisting of principal and premium bid by the successfully bidder), (2) the Bonds will have approximately level payments of principal over the term of the Bonds, and (3) the successful bidder will receive the same percentage amount of aggregate selling compensation per $1,000 of principal amount of Bonds as it would have received based upon its bid for the Series 2015C Bonds, based on the prices, interest rates and proposed initial September 15, 2015 reoffering prices set forth in in its bid for the purchase of Bonds and any additional information regarding the proposed initial reoffering prices provided to the County by the successful bidder. The County Manager and the Director of Finance and Administration shall make arrangements with the Local Government Commission and the Financial Advisor to the County to advise the potential bidders for the Bonds of the proposed changes to the maturities. The final aggregate principal amount of the Bonds and the final principal amount of each maturity of the Bonds shall be as set forth in the Final Official Statement (hereinafter defined). 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 shall be issued by means of a book -entry system with no physical distribution of Bond certificates to be made except as hereinafter provided. 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 The Depository Trust Company ("DTC'), shall be 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 whole 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. The principal of each Bond shall be payable to Cede & Co. or any other person appearing on the registration books of the County hereinafter provided for as the registered owner of such Bond or his registered assigns or legal representative at such office of the Bond Registrar mentioned hereinafter or such other place as the County 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 said 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 15th 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; provided, however, that for so long as the Bonds are deposited with DTC, the payment of the principal of and interest on the Bonds shall be made to DTC in same-day funds by 2:30 p.m. or otherwise as determined by the rules and procedures established by DTC. Transfer of principal and interest payments to participants of DTC wit] 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 County shall 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 Administration of the County determines that continuation of the book -entry system of evidence and transfer of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds, the County will discontinue the book -entry system with DTC. If the County identifies another qualified securities depository to replace DTC, the County 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 to DTC or Cede & Co. in this resolution shall thereupon be deemed to mean such other depository or its nominee. If the County fails to identify another qualified securities depository to replace DTC, the County shall deliver replacement Bonds in the form of fully -registered certificates in denominations of $5,000 or any whole multiple thereof ("Certificated Bonds") in exchange for the outstanding Bonds as required by DTC and others. Upon the request of DTC, the County 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. September 15, 2015 Section 3. The Bonds shall bear the manual or facsimile signatures of the Chairman of the Board and the Clerk to the Board for the County and the corporate seal or a facsimile of the corporate seal of the County shall be impressed or imprinted, as the case may be, on the Bonds. The certificate of the Local Government Commission of North Carolina to be endorsed on all Bonds shall bear the manual or facsimile signature of the Secretary of said Commission 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 County or the Local Government Commission of North Carolina 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. and the endorsements thereon shall be in substantially the following form: No. R - United States of America State of North Carolina COUNTY OF IREDELL GENERAL OBLIGATION SCHOOL BOND, SERIES 2015C Maturitv Date Interest Rate CUSIP No. April 1, 20 % The County of Iredell, a body corporate and politic duly organized and validly existing in 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 Administration of said County (the "Bond Registrar"), in Statesville, North Carolina, the principal sum of DOLLARS and to pay interest on such principal sum from the date hereof or from April I or October I next preceding the date of authentication to which interest shall have been paid, unless such date of authentication is April 1 or October 1 to which interest shall have been paid, in which case from such date, such interest to the maturity hereof being payable semiannually on each April 1 and October I, beginning April 1, 2016, 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 said County; provided, however, that for so long as the Bonds (hereinafter defined) are deposited with The Depository Trust Company ("DTC"), the payment of the principal of and interest on the Bonds shall be made to DTC in same day funds by 2:30 p.m. or otherwise as determined by the rules September 15, 2015 and procedures established by DTC. 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 said County are hereby irrevocably pledged. This bond is one of an issue of bonds designated "General Obligation School Bonds, Series 2015C" (the "Bonds") and issued by said County for the purpose of providing funds, with any other available funds, for school facilities improvements, 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 said County, which order was approved by the vote of a majority of qualified voters who voted thereon at referendum duly called and held, and a resolution duly passed by said Board of Commissioners (the "Resolution"). The Bonds maturing on or prior to April 1, 2025 are not subject to redemption prior to maturity. The Bonds maturing on April 1, 2026 and thereafter may be redeemed, at the option of said County, from any moneys that may be made available for such purpose, in whole or in part on any date not earlier than April 1, 2025, at a redemption price equal to 100% of the principal amount of the Bonds to be redeemed, together with 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 of said County in such manner as said County 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. So long as a book -entry system with The Depository Trust Company ("DTC'), is used for determining beneficial ownership of Bonds, if less than all of the Bonds within the maturity are to be redeemed, DTC and its participants shall determine which of the Bonds within a maturity are to be redeemed by lot. If less than all of the Bonds stated to mature on different dates shall be called for redemption, the particular Bonds or portions thereof to be redeemed shall be called in such manner as the County may determine. 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, said County 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 to his address appearing upon the registration books of said County, provided that such notice to Cede & Co. shall be given by certified or registered mail. 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 and, if moneys for payment of such redemption price and the accrued interest are held by the Bond Registrar 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 a 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 Bond Registrar on or prior to the redemption date of moneys sufficient to pay the principal of and premium, if any, 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 Bond shall not be required to be redeemed. In the event that such notice contains such a condition and moneys sufficient to pay the principal of and premium, if any, and interest are not received by the Bond Registrar on or prior to the redemption date, the redemption shall not be made and the Bond Registrar 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 September 15, 2015 $5,000 or any whole 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. Said County 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, said County will be authorized to deliver replacement Bonds in the form of fully-registered certificates in the denomination of $5,000 or any whole 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 his office the books of said County 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 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 said County sufficient to pay the principal of and the interest on this bond as the same shall become due; and that the total indebtedness of said County, 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 County of Iredell, North Carolina, 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 for said County and its official seal to be impressed hereon, all as of the ......... day of October, 2015. ANNOUNCEMENT OF VACANCIES OCCURING ON BOARDS & COMMISSIONS Jury Commission (1 Announcement) APPOINTMENTS TO BOARD AND COMMISSIONS (None) UNFINISHED BUSINESS Deputy County Manager Beth Jones gave an update from the Inmate Reduction Committee: September 15, 2015 10 Beginning Jail Population Annual Annual Cost Jail Cost From To Goal New# Inmates of Days of $47,865 Processed* 23 15 554 ($38,780) Date Date 663 Processed 23 29 6/1/2015 6/30/2015 18 34 362 ($25,340) 7/1/2015 7/31/2015 18 20 568 ($39,760 8/1/2015 8/31/2015 18 29 422 $29,540 Beginning Jail Population Annual ADA Cost 301 New 328 $78,000 Goal Inmates # of Days Reduced Processed* 23 15 554 ($38,780) 23 43 663 $46,410 23 29 517 $36,190 Beginning Jail Population Ending Jail Difference Population 265 301 36 301 327 26 328 339 11 PUBLIC COMMENTS Chairman Mallory opened the Public Comment Period and explained there is a three minute time limit for each speaker. David Childers of 142 Mt. Vernon Church Road, Olin, NC, addressed the Board and expressed appreciation for the time to speak. He also thanked the Board members for the tireless job they do. He continued to express his feelings and concerns toward the removal of prayer at the Board of Commissioners' meetings and requested the Board reinstate prayer at every meeting. A petition with over 650 names to reinstate prayer was presented to the Chairman. The ACLU is not the only voice that needs to be heard. Mr. Childers closed his comments with a Christian prayer. Citizens that attended the meeting stood in support of prayer. Chairman Mallory noted for the record that 98% of the audience stood. The following citizens also spoke in support of the Board of Commissioners and of prayers during the Board of Commissioners' meetings: Mary Ball, Eddie Guy, Troy Reed, David Prevette, Bryon Shoemaker, Mark Cash, Michelle Kress, David Holeman, and Jeff Ober. Chairman Mallory said he was lifted up by the presence of all the citizens. He expressed the struggle the members of the Board are going through trying to reach the right decision concerning this topic. He asked Attorney Bill Pope to summarize the legal issues that have risen on this subject. County Attorney Bill Pope said he was the initial bearer of the news because of the law. He didn't share the news joyously, on the contrary he knew it would not be well received. Personally, it was contrary to his own beliefs. There has been a little misconception, in fact, he has not asked the Board not to pray. Several years ago a federal court decision came down dealing September 15, 2015 11 with prayer by the Forsyth County Commissioners. Forsyth County lost and was ordered to pay cost and fees coming close to a half -million dollars. Around that same time, Iredell County was contacted and told they were among several counties that were being monitored. The practices of Iredell County Commissioners were unconstitutional, discriminatory and coercive. Prayer was modified which held ACLU at bay while Rowan County elected to challenge. Also, the City of Greece in New York had a practice that was challenged in which clergymen of all faiths were invited to participate to render an invocation. However, 97% of the clergy were Christian but they invited others. The court determined what they were doing was ok. The Rowan County Commissioners virtually had an identical practice as Iredell with one difference - they stood when they prayed. Court ruled that Rowan County was unconstitutionally discriminatory. It was unacceptable in that it was viewed as coercive because it was the representative of the government that was praying and therefore had a coercive effect. Courts felt that citizens may feel intimidated and that their petitions/requests before the Board may not be heard and/or passed. That's when the Iredell County Board of Commissioners were contacted. Options are to simply not pray or the members meet in another room to pray before the meeting or pray silently. However, the perception is that praying silently is not praying. Pope expressed his appreciation to the group attending this meeting for the respectful, civil, lawful, and professional manner in presenting their beliefs. Chairman Mallory asked if there was an additional option aligned with the City of Greece. Pope said one option would be to formulate a plan similar to the approved plan for the City of Greece. That plan invited people of all faiths to appear and pray at the meetings. Chairman Mallory expressed his beliefs that praying before the meeting, i.e. out on the lawn, will not have an element of coercion. During the recess, between pre -agenda and the regular meeting, individual commissioners (not to exceed two in any one group) could join with people in prayer. It would be individually and not in session. He asked Pope if that would be a problem. Pope stated that presently he doesn't see a problem but will research it further. There are limits to all of our rights. The Board could, if so inclined, designate areas where people could have free speech. Commissioner Johnson expressed his feelings on faith by offering several quotes. One book in particular that sparked a deeper interest was "The Naked Public Square" by Richard Neuhaus, which states the secular humans did not take away the public square, it was simply abandoned and they have filled the vacancy. Therefore, don't be surprised to find it difficult to regain the territory. The struggle in contemporary American is a struggle that has gone on since the fall of man, which is whether man will recognize the authority of God and that there is an objective set of laws that everyone must adhere to. A very radical version of secular humanism is believing that humans are a product of time and chance and therefore accountable to no one. Another quoted definition of humanism, by Robert Zacharias, is that humanism is the measure of all things. In modern western civilization there has been an on-going struggle for the hearts and minds of men and women. One teaches that man was created in the image of God and he was created morally upright then he fell into sin. That was the belief of the founders of this country. September 15, 2015 12 They knew man, by nature, was sinful and therefore created a separation of powers. The other point of view is that man is morally upright in his own right ... that he is not a fallen creature but a product of time and chance, and he can begin with himself to solve dilemmas that confront him. The western view is that man is not the center of the universe but God is and you must begin with God and God's law. Today, the struggle for the hearts and minds continues and Christians have abandoned the public square. This has created a generation that Carl Henry calls, "men and women with hollow chests." They do not have a concrete belief system and do not believe in moral absolutes. Francis Shaffer warned in 1973 of this day. Shaffer said there will come a time in American when you will first see the marginalization of Christianity ... they will simply be viewed as kooks, of low intellect and will be mocked. Following that will come the vilification of Christians. Toward the end of that will come the turning point where it will be difficult to turn back. Johnson believes that is today. Following the vilification will be the open persecution of Christians. Shaffer said Christians will not be persecuted for being Christian but for the sin of intolerance for being un-American. Early Christians were not persecuted for being Christians but for being traitors to Rome when they refused to bow and worship the Emperor. Johnson said he has given up on government to fix things of great gravity. He feels the only resolve is to throw hopes upon the mercy of God and ask his forgiveness. Johnson said when he was first elected to the Board, Iredell County ministers stood at the microphone and prayed, but then some were not reliable to show up and the Commissioners took over the responsibility. He stressed the Board's appreciation if the public would continue to attend the proceedings and would welcome their prayers should the Board decide on that course of action. But before leaving, everyone should ask God's forgiveness for vacating the public square in the beginning. He believes that not only should there be prayer at meetings, but believes it is past the time of sharing faith... it is time to tell others of the saving power of Jesus Christ. The audience gave a standing ovation for Commissioner Johnson's words. Commissioner Tommy Bowles said there was no way he could follow Johnson's words but would like to defend pastors. The pastors' job is to equip the people in the church to do the ministry, therefore all have abandoned the square. He explained that arriving at this point does not rest entirely on the shoulders of County Attorney Bill Pope, it has been the collective decision of the Board. Scripture says, "...that after doing all things, stand firm." The Board is in the process of doing all things and when all things are done, he will stand. The audience clapped for Commissioner Bowles. Vice Chairman Marvin Norman stated this issue is kind of frightening when someone can tell you not to pray in public. He believes his rights are being discriminated against just as much as those that are complaining. if they can sue the Board, why can't the Board sue them? Commissioner Ken Robertson stated that the problem did not originate with Attorney Pope. He was just communicating and advising on the subject matter. The Board sitting in a moment of silence is not what they want. He disagreed that a small majority took this right away. The majority of Americans voted for the president who appointed the judges who took this away. The reason that they won is because people weren't educated on where the candidates really stood. If this issue September 15, 2015 13 can be turned around it will take citizens giving of themselves, their time, their effort to ensure people are elected that will vote the way you believe. He suggested everyone read the book, "The Original Intent" by David Barton. The founding fathers' original intent was that not only should Americans have the right to pray but their intent was that Americans should pray. He thanked everyone for coming and ensured them the Board would try to figure a way to stand without draining checkbooks. Chairman Mallory expressed appreciation, on behalf of the Board, for the citizens' presence. The Board has a fiduciary duty to all the tax payers in this county to watch over funds and not spend frivolously. But what sets this county apart from others is the deep and abiding faith in the communities. Americans live in a republic not a democracy. It is a federal system. The job of any good lawyer is to keep their client from falling off a cliff and Mr. Pope has done that. Elections have consequences and federal judges are appointed by the President of the United States. Every four years the appointees will be people who are of the political philosophy of the occupant of the White House. The Board will review options and make a determination how to proceed. Returning to the previous practice of allowing others to prayer presents its own issues when they may pray to a different god. He encouraged the citizens to not abandon the public square and he stated the board does covet the prayers of citizens... silent, spoken, individual and corporate. If all seek God's face in favor then all will benefit from his blessings. The public comment period was closed. NEW BUSINESS County Manager Ron Smith said a motion was needed for an item discussed in closed session. MOTION by Commissioner Ken Robertson to release easement provided in Book 1209 page 575 of the Iredell County Public Registry for the price of $40,000 to the Iredell Statesville School System. VOTING: Ayes — 5; Nays — 0 COUNTY MANAGER'S REPORT County Manager Ron Smith stated Representative Fraley and Turner had reported on the status of the State budget which was basically approved. It was passed by the Senate earlier today and will go to the House on Wednesday. The first vote will be Thursday and the second vote on Friday. Representatives feel the budget will go through and that the Governor will sign. Smith said the previously named "Sales Tax Redistribution" issue did not make it through the budget. It is no longer in play. However, what is in the works is an expansion of sales tax on certain services. An example of what they are reviewing as an item that has previously been taxed, i.e. an automobile oil change. The oil and filter would have sales tax already and now it will include tax on the service as well. The intent is that the new revenue generated would then be directed to the State, a fonnula will be designed to distribute/invest in 81 less prosperous counties than Iredell County. Iredell County will not see any detriment. This is meant to benefit the 81 counties and the September 15, 2015 14 other 19 will not benefit but they will not be hurt. In five years legislature will review this again to ensure the more fortunate counties remain harmless. The new revenue can only be spent on education, economic development, and/or community colleges. Smith reported the 1-40/1-77 interchange project funding is included in the budget. Smith stated rezoning is not required for the Public Safety Complex and are ready to move forward with the proposal. Vice Chairman Marvin Norman asked about the bond the Governor wanted on the ballot. Smith said it is still in negotiations but the amount and the perimeters may change. Commissioner Johnson said he talked with Senator Curtis relaying concerns of the Iredell County Board and staff. He cautioned to be very careful in the out -lying years. The general attitude in Raleigh is that within a few years there will not be a state income tax and all of state government will be funded by sales tax. Once that money gets to Raleigh it will become real fungible as to where and how it is spent. The Board and staff must be very diligent all along the way. CLOSED SESSIONS There were two items for Closed Session that were discussed at 6:00 PM. ADJOURNMENT OTION by Commissioner Johnson to adjourn at 8:40 PM. The next meeting is scheduled for October 6, 2015, 5:30 PM, South Wing Conference Room, Government Center, 200 South Center Street, Statesville, NC. VOTING: Ayes — 5; Nays — 0 Date Approved Retha C. Gaither, Clerk September 15, 2015 15