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HomeMy WebLinkAbout9-6-2016 MinutesIREDELL COUNTY BOARD OF COMMISSIONERS PRE -AGENDA MINUTES September 6, 2016 The Iredell County Board of Commissioners met in pre -agenda session on Tuesday, September 6, 2016 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, 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 from the staff. Chairman Mallory said there would be an update, under Unfinished Business, on the costs for the suggested courthouse renovations. PUBLIC HEARINGS Public Hearing to Consider a Request by Jimmy McKnight (McKay Family) to Release Zoning and Subdivision Jurisdiction to the Town of Mooresville: Planning Director Matthew Todd said the first hearing is a release of jurisdiction for property on Brawley School Road. It is 37.91 acres with a proposed 71 lots for empty -nester housing and 10 acres for commercial on the front of the property. There have been a few calls expressing concerns. It is slated for annexation in December by the Town of Mooresville. Commissioner Bowles said the applicant, owner, and engineers will be at the 7:00 meeting to answer any questions. Public Hearing to Consider a Request from Charlotte Ski Boats to Rezone 6.52 Acres at 1206 Brawley School Road from NB CUD to HB CD: Planning Director Matthew Todd said the current business, Charlotte Ski Boats, is operating out of the old Lake Norman Fire Department. It was rezoned specifically for their use. Since that time business has done well and they have multiple boats in storage on the adjacent property which is zoned NB and does not allow that type of use. They are requesting this rezoning to bring their property into compliance and with future plans for dry storage. This is a conditional zoning that is site plan specific. Commissioner Robertson asked if the conditional uses will clean-up the property because some neighbors have already expressed concerns. Todd said the requirements should improve the look of the current site that is in violation at this time. There were some lighting issues and some have been resolved. Because this is September 6, 2016 conditional there was a public input meeting on site. Many neighbors were concerned over the lights, screening, and the use of the property in general. The 2030 Horizon Plan calls for it to be Corridor Commercial which would allow Highway Business and General Business. One particular neighbor in opposition came before the Planning Board with concerns about the look of the proposed buildings and landscape. The code does not address the aesthetics of the building, just the landscape. Commissioner Bowles asked if it would be just for storage or will there be a repair facility. Todd said they have proposed three buildings to be phased in. They could do repairs. The owners are restricted to the site plan and the requirements of the code. The uses are limited to boat dealers, motorcycles, ATV sales/service and general office. Another condition is to maintain an undisturbed buffer along the back. Normal requirements are 15 feet of landscaping along the road and buffering around any residential areas. The existing vegetation will probably work for the buffer but there are several options such as a fence. The back part of the property will have to remain unused except for septic or retention pond but there are no requirements for a retention pond. They have to come back to the Board with another site plan and a request for a High Density Option if they wanted to make changes. The current facility was annexed by Mooresville in July because of the need for water. Public Hearing on a Proposed Installment Contract Financing to Refinance and Adopt a Resolution Approving and Authorizing an Installment Contract Financing by the County: Finance Director Susan Robertson said there was a conference call last week with Moody's, S&P, and Fitch. Iredell County has the highest possible rating from all three agencies which is just short of Triple A. It would be very difficult for the County to receive a Triple A because of the median household income and per capita income in relation to the US. Commissioner Robertson asked if there would be a significant difference in the interest rate between Triple A and the County's current rating. Finance Director Robertson said she could not quantify what it would be but with all the current information the true interest is 1.68%. The request is to adopt the resolution to move forward with a tentative sale date of October 27 and close on December 1. County Manager Ron Smith said one of the reps said that Iredell County is operating as a Triple A county because of the financial stability, the philosophy/fiscal policies of the Board, long term Finance Director, and good management. Chairman Mallory said that information should be shared in the public forum. Smith said the wealth portion of the rating is about 40% of their requirement but the continued economic development efforts and the diversity of the types of projects is an asset along with agriculture adding to the diversity. Finance Director Robertson said the agencies also look at the value of those industries as a share of the total value. The top ten tax payers are less than 17% of the total tax base which shows diversity. Commissioner Robertson said this Board has been conservative for decades. ADMINISTRATIVE MATTERS September 6, 2016 Request from the Sheriffs Department for Approval to Receive the 2017 JAG Grant in the amount of $15,029: Chief Deputy Marty Byers said this request is for a Digital Vehicular Repeater System (DVRS) which will enhance communications especially on the 800 MHz while inside a building. For example, radios will not work inside West Iredell High School. During an Active Shooter Training a DVRS was borrowed from Mooresville Fire Department. It is basically a repeater that sits inside a car and pulls the signal from the building and then out to the tower for better communications. Chairman Mallory asked if the grant had been awarded. Byers said no it has not been awarded. Commissioner Bowles asked if this would solve all in -building coverage problems. Byers said no but it will be a huge step forward. It is a radio and there will be areas that it just will not work. This item was placed on the consent agenda. BA#4 To recognize the 2017 JAG grant in the Sheriffs department to purchase a Digital Vehicle Repeater System 9/6/2016 Account # Current Budget I Chane I Amended Budget 104510 43600 15217 2017 JAG Grant - (15,029) (15,029) 104880 499404 Appro. Fund Balance - FES (1,071) (1,071) 105510 610000 15217 Depreciable Assets 16,100 16,100 Request from the Sheriffs Department for Approval of a Sole Source Purchase of Taser Replacements and a Five -Year Agreement: Deputy Bert Connolly said this request is for a sole -source purchase contract to Taser International. The 2017 budget was approved for $184,000 to purchase new Tasers. This is also a request for a five-year warranty/replacement through Taser which is called TAP (Taser Assurance Plan). Payment is made every year and at the end of five years the Department will receive all brand new weapons. Tasers change frequently and five years is the about the maximum life. Chairman Mallory asked if Tasers are considered a weapon or device. Connolly said it is a conductive electrical weapon (CEW). This will be latest reasonably priced version. Chairman Mallory asked if this coincides with the statutes as it relates to the definition of a weapon. Connolly said it would depend a lot on officer discretion and the intent, if it was locked up or not, etc. Commissioner Bowles asked if newer Tasers were better with safe -guards against death. Connolly said Tasers have a data log that can be downloaded to see how many times it was used and the length of time for each use. Excited Delirium is a situation to be very aware of. The Taser doesn't necessarily kill them but whatever the person is high on would be a contributing factor. All officers are trained and know the options. Connolly will research trading some of the September 6, 2016 old Tasers, but Tasers currently being used will probably be placed in the Armory, and the oldest, nonworking Tasers will probably be sent to be destroyed. Chairman Mallory asked if there have been any technological advances. Connolly said they are adjustable and have safe -guards in the event the Taser gets wet. This item was placed on the consent agenda. Request from the Planning Division for 20% Matching Funds for a Study of a North- South Parkway in Southern Iredell County: Planning Director Matthew Todd said the Lake Norman Transportation Committee is creating this project. There is grant money available to study a corridor/road or transportation issue. LNTC has decided to move forwarded with this request. It follows the basic alignment of Shears Road. It would look at the existing road to see areas of needed improvements and a wide range of issues with the increased right-of-way, what type of facility would be ideal for that area, and maybe even help with 1-77. It will be a north -south connection in eastern Iredell County. Essentially the grant can be up to $100,000 with a $20,000 local match required. Right now it is Mooresville, Davidson, Huntersville and Iredell County. LNTC will contribute $5,000 for the match which leaves $15,000. Iredell County's share would be $3,750 if the other jurisdictions agree to participate. The result will be to know specific projects that could be added to different transportation lists for ranking/scoring in order to align funding in the future. Commissioner Robertson said he challenged this with the Council of Governments. He said there shouldn't be a study if there's no intention of funding a project. This will give another alternative pathway and it will identify critical junctures. But at some point it will lay out what the corridor will eventually look like and therefore no building right up on the road. If that is not done now, then the acquisition costs will run the price of the project out through the ceiling. This will lay the pathway so that something can happen in maybe twenty years and be affordable. If it is not done, then there will be no options because everything will be filled. Commissioner Johnson agreed to contribute up to $3,750. If someone drops out then they can come back for reconsideration. Smith thinks Cornelius may come back into the committee. Commissioner Bowles asked how it would reserve the right-of-way. Chairman Mallory said the land use plan would change to reflect the limits. Commissioner Johnson stated that if all the jurisdictions agree where it should be then whoever looks at developing in those areas will know it is serious and will be able to factor that into their decision on how to proceed. This item was placed on the consent agenda. Request from the Finance Department to Demolish Houses on Short Street and Tradd Street: Purchasing and Contracts Manager Dean Lail said there are several pieces of property that need to be demolished or removed from lots that will be used for staging and additional parking for the jail project. All properties are under a contract with Ken Grant Homestead Properties under a sub -lease agreement. Some are occupied and some are vacant. All leases are scheduled to expire September 6, 2016 4 by February 2017. The request is have all house removed at the same time with an estimated cost of $45,000. Vice Chairman Marvin Norman clarified this would be after all tenants have moved out. Lail said that is correct and all leases will expire in February 2017. All tenants have been notified. This item was placed on the consent agenda. Request from the Finance Department to Demolish Houses on Harrill Street and Davie Avenue: Purchasing and Contracts Manager Dean Lail said these houses are occupied by Jail administration and Adult Probations. These houses are 100 years old and the value is unknown. However, a couple of companies have inquired about the potential salvage value. Therefore agreements may be reached to lower the County's cost of removal. The request is for authorization to negotiate agreements with contractors that are interested in salvage. it is estimated to be about $10,000 for both houses to be removed. Chairman Mallory suggested to ensure they are not in any historic district. Lail said that has been checked and these houses need to be removed as soon as possible due to the perimeter construction fence going up soon. Chairman Mallory asked about the renovations on the building for Adult Probations. Facility Director Robert Woody said it is slated to be complete by October. This was placed on the consent agenda. Request from the Finance Department for Adoption of a Resolution Providing for the Issuance of Not to Exceed $19,000,000 in General Obligation School Bonds, Series 2016: Finance Director Susan Robertson said this is a resolution providing for the issuance of Not to Exceed $19,000,000 in General Obligation School Bonds. This is part of the bond referendum that was approved in November 2014. The total will be split between North Iredell High School and South Iredell High School. The bids are in and both projects are well within their budget. This is a requirement before the sale of the bond which is scheduled for September 20 and closing will be two to three weeks afterward. It is expected that this will be another low interest deal backed by the faith and credit of the County. Chairman Mallory said the new Cool Springs Elementary School is very impressive. The project came in on time and under budget. This item was placed on the consent agenda. RESOLUTION PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $19,000,000 GENERAL OBLIGATION SCHOOL BONDS, SERIES 2016 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: September 6, 2016 (a) An order authorizing $119,500,000 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. $49,525,000 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 $19,000,000 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 11, 2016, the date of the bonds for such school facilities improvements authorized hereby, and that such period expires on October 11, 2056. Section 2. Pursuant to said order, there shall be issued bonds of the County in the aggregate principal amount of $19,000,000 (subject to adjustment pursuant to the provisions set forth below) designated "General Obligation School Bonds, Series 2016" 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, $950,000 2018 to 2037, inclusive; 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 1, beginning April 1, 2017, 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 $19,000,000. 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 bond proceeds (consisting of principal and premium bid by the successfully bidder) of approximately $19,000,000 for school construction, plus an amount sufficient to pay costs of issuance, (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 2016 Bonds, based on the prices, interest rates and proposed initial 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 September 6, 2016 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 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 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 UTC, 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. 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: September 6, 2016 No. R - United States of America S State of North Carolina COUNTY OF IREDELL GENERAL OBLIGATION SCHOOL BOND, SERIES 2016 Maturity 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 1 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 t, beginning April 1, 2017, 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'' 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 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 2016" (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, 2026 are not subject to redemption prior to maturity. The Bonds maturing on April 1, 2027 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, 2026, 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 Tess 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 September 6, 2016 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 shalt cease to accrue. If a portion of this Bond shalt 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 $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 55,000 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. September 6, 2016 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, 2016. [SEAL] Chairman [Do not sign] Clerk to the Board 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 2. 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. Date of authentication: [Do not sign] Director of Finance and Administration, as Bond Registrar ASSIGNMENT FOR VALUE RECEIVED the undersigned registered owner thereof hereby sells, assigns and transfers unto September 6, 2016 10 the within Bond and all rights thereunder and hereby irrevocably constitutes and attorney to register the transfer of said bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: In the presence of: NOTICE: The signature must be guaranteed by an institution which is a participant in the Securities Transfer Agent Medallion Program (STAMP) or similar program. The signature to this assignment must correspond with the name as it appears on the tate of the within Bond in every particular, without alteration of enlargement or any change whatever. 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 on or prior to April 1, 2026 are not subject to redemption prior to maturity. The Bonds maturing on April 1, 2027 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, 2026, 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 the County in such manner as the County 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 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, the 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 the County, 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. September 6, 2016 11 On or before the date fixed for redemption, moneys shall be deposited with the Bond Registrar to pay the principal of and the redemption premium, if any, on 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 therefor, 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, are held by the Bond Registrar 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. 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. 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 redemption premium, if any, on such principal amount, and the Bond Registrar shall authenticate and deliver to or upon the order of such registered owner or his legal representative, without charge therefor, 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 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 County 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 canceled by the Bond Registrar. The County 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 County 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 date 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. September 6, 2016 12 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 County shall appoint such registrars, transfer agents, depositaries or other agents as may be necessary for the registration, registration of transfer and exchange of Bonds within a reasonable time according to then current commercial standards and for the timely payment of principal, interest and any redemption premium with respect to the Bonds. The Director of Finance and Administration of the County, or any person at any time acting in such capacity, is hereby appointed the registrar, transfer agent and paying agent for the Bonds (collectively the "Bond Registrar"), subject to the right of the Board of Commissioners for the County to appoint another Bond Registrar, and as such shall keep at his office in the County, the books of the County for the registration, registration of transfer, exchange and payment of the Bonds as provided in this resolution. Section 6. The County 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 Internal Revenue Code of 1986 (the "Codd'), as amended or as may be amended from time to time, and any Treasury regulations now or hereafter promulgated thereunder, to the extent necessary so that interest on the bond will not be included in gross income of the owners of the bonds for purposes of federal income tax. Section 7. The action of the Chairman of the Board, the County Manager, the Director of Finance and Administration and the Clerk to the Board for the County in applying to the Local Government Commission of North Carolina to advertise and sell the Bonds is hereby approved, ratified and confirmed, and the Local Government Commission of North Carolina is hereby requested to ask for sealed bids for the Bonds by publishing notices and printing and distributing a Preliminary Official Statement relating to the sale of the Bonds. Such Preliminary Official Statement, to be dated the date of delivery thereof, in substantially the form presented at this meeting, is hereby authorized and approved. The delivery of such Preliminary Official Statement by the Chairman of the Board, the County Manager and the Director of Finance and Administration is hereby approved, ratified and confirmed. The preparation of a final Official Statement (the "Final Official Statement'), which will be in the form of the Preliminary Official Statement, but will include certain pricing and other information to be made available to the successful bidder for the Bonds by the Local Government Commission of North Carolina, is hereby approved, and the Chairman of the Board, the County Manager and the Director of Finance and Administration of the County are hereby authorized to execute and deliver the Final Official Statement for and on the behalf of the County, and such execution shall be conclusive evidence of the approval of the Board of the Final Official Statement. Section 8. The County hereby undertakes, for the benefit of the beneficial owners of the Bonds, to provide to the Municipal Securities Rulemaking Board (the "MSRB"): (a) by not later than seven months from the end of each fiscal year of the County, beginning with the fiscal year ended .lune 30, 2016, audited financial statements of the County for such fiscal year, if available, prepared in accordance with Section 159-34 of the General Statutes of North Carolina, as it may be amended from time to time, or any successor statute, or, if such audited financial statements of the County are not available by seven months from the end of such fiscal year, unaudited financial statements of the County for such fiscal year to be replaced subsequently by audited financial statements of the County to be delivered within fifteen (t 5) days after such audited financial statements become available for distribution; (b) by not later than seven months from the end of each fiscal year of the County, beginning with the fiscal year ended .Tune 30, 2016, (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 headings "THE COUNTY - Debt Information and - Tax Information" (excluding any information on underlying units) in the Final Official Statement and (ii) the combined budget of the County for the current fiscal year, to the extent such items are not included in the audited financial statements referred to in (a) above. September 6, 2016 13 (c) in a timely manner not in excess of ten business days after the occurrence of the event, notice of any of the following events with respect to the Bonds: ( I ) principal and interest payment delinquencies; (2) non-payment related defaults, if material; (3) unscheduled draws on debt service reserves reflecting financial difficulties; (4) unscheduled draws on credit enhancements reflecting financial difficulties; (5) substitution of credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; (7) modification to the rights of the beneficial owners of the Bonds, if material; (A) bond calls, if material, and tender offers; (9) defeasances; (10) release, substitution or sale of any property securing repayment of the Bonds, if material; (1 I) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the County; (13) the consummation of a merger, consolidation or acquisition involving the County or the sale of all or substantially all of the assets of the County, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to any such actions, other than pursuant to its terms, if material; and (14) appointment of a trustee or a successor or additional trustee or the change of name of a trustee, if material; and (d) in a timely manner, notice of a failure of the County to provide required annual financial information described in (a) or (b) above on or before the date specified. All information provided to the MSRB as described in this Section shall be provided in an electronic format as prescribed by the MSRB and accompanied by identifying information as prescribed by the MSRB. The County may meet the continuing disclosure filing requirement described above by complying with any other procedure that may be authorized or required by the United States Securities and Exchange Commission. If the County fails to comply with the undertaking described above, any beneficial owner of the Bonds may take action to protect and enforce the rights of all beneficial owners with respect to such undertaking, including an action for specific performance; provided, however, that failure to comply with such undertaking shall not be an event of default and shall not result in any acceleration of the Bonds. All actions shall be instituted, had and maintained in the manner provided in this paragraph for the benefit of all beneficial owners of the Bonds. The County reserves the right to modify from time to time the information to be provided to the extent necessary or appropriate in the judgment of the County, provided that: September 6, 2016 14 (a) any such modification may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law, or change in the identity, nature or status of the County; (b) the information to be provided, as modified, would have complied with the requirements of Rule 15c2- 12 issued under the Securities Exchange Act of 1934 ("Rule 15c2-12") as of the date of the Final Official Statement, after taking into account any amendments or interpretations of Rule 15c2-12, as well as any changes in circumstances; and (c) any such modification does not materially impair the interests of the beneficial owners of the Bonds, as determined either by parties unaffiliated with the County (such as bond counsel), or by the approving vote of the registered owners of a majority in principal amount of the Bonds pursuant to the terms of this resolution, as this resolution may be amended from time to time, at the time of such amendment. In the event that the County makes such a modification, the annual financial information containing the modified operating data or financial information shall explain, in narrative form, the reasons for the modification and the impact of the change in the type of operating data or financial information being provided. The provisions of this Section 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 9. The Chairman of the Board, the County Manager, the Director of Finance and Administration and the Clerk to the Board for the County are hereby authorized and directed to execute and delivery such closing and other documents and take such other actions as may be necessary or appropriate for the purpose of facilitating the sale and issuance of the Bonds in a manner consistent with the terms of this resolution. Section 10. This resolution shall take effect upon its passage. Request from Administration for Approval of a Partial Refund of Permit Fees for Fort Dobbs: County Manager Ron Smith said Fort Dobbs is going through a redevelopment project and the first building permits were 52,767.47. This is a request to refund half of the cost of the permits. Because this is a state project, generally the County would not be involved at all. However, the County will be involved in this project. Commissioner Robertson said the fort will be reconstructed in three phases. This is the first phase and this will help fund raising. This could be a really big draw for Iredell County. Robby Wilkinson said the permits have been reviewed and given to the contractor. Iredell County will be performing all of the inspections. This item was placed on the consent agenda. Request from Administration to Create and Approve Legislative Goals to be Submitted to the NCACC by September 23: County Manager Ron Smith said the NCACC solicits goals every two years. Administration issued a request to county departments for ideas. The process is in Phase I, which is to solicit goals. Phase II will present each county's goals to committees who will make recommendations. Those recommendations moves it to Phase III to the NCACC's legislative goals committee. Phase IV is a review by the NCACC Board of Directors. Phase V is a vote at the Legislative Goals Conference in January. Chairman Mallory said the NCACC will focus on broad policies not the very technical issues. Even the broad policies will only have maybe five out of twenty that will actually be voted on. Staff will then focus only on the top five when visiting with legislators. They will choose issues September 6, 2016 15 relative to county boards/school board's relationships, Medicaid percentages, etc. The recommendations presented from department heads are good but really need to go through the Department of Public Health and then the Board should take them individually to legislators. Commissioner Robertson said conservatives have always believed in school choice. Charter schools are the closest thing to school choice. The intention was to have different teaching techniques or approaches in order to have many learning laboratories to deliver better education. However, what is not being seen is the sharing of those ideas. Are charter schools doing a better job? If so, what are they doing that is different'? It should be shared. If there are rules in place to prevent this then those rules need to be changed. If they are achieving better performance because they are able to change the demographics of the student body, so be it. The public systems have not changed anything based on the learning from charter schools which is one of the fundamental reasons of them. If using a particular text book or technique is working for them then the public school needs the freedom to operate in that manner. That is a philosophical approach and is one that is part of the intent and it is time to free the public system. In other words, level the playing field. The public system is trying by offering some special programs. In the same wave it would be nice to see charter school systems challenged to go into the impoverished areas with one -parent families. It is a broad subject, but the intent of charter schools was to have a choice and learn to educate children in a different way. If so, it's time to pass it on and free up the public systems to take advantage of the same. Commissioner Johnson said there is a degree of antagonism from traditional public schools towards charter schools. Therefore, charter schools may not be willing to share the secrets of success. If there is going to be a remedy then there needs to be a change of attitude from the public schools. The public schools find themselves in a difficult situation. The programs they are trying to add are on top of all the state/federal regulations. They add new programs to mirror what charters are doing but they have to do it with local money. A huge portion of their money is spent on regulations. The greatest fault in sharing information is the open hostility toward charters from traditional public schools. It is real and it exists. Milton Freeman said, "`The greatest economic and cultural change that will occur over the next few years is going to be in the way we educate our children."' Probably within the next five or ten years every Fortune 500 company in this country will have an apprenticeship program and they have already started. They are not approaching public schools for those apprentices because the public schools cannot pivot their curriculum to teach what is relevant to their needs. Charter schools have the ability to do that and the companies will turn their efforts toward charter schools. If public schools are not deregulated to the degree that they can pivot to target those students toward jobs for those companies then there will be two separate cultures and an economic strata that will be worse in twenty years. There needs to be an effort to deregulate so they can begin to behave with more regulatory latitude in order to obtain that market. Chairman Mallory said the purpose of the legislation that was passed to replace "No Child Left Behind" was designed to push more discretion and ability to adapt and be creative to local levels. Commissioner Johnson said there is one thing on the presented list for Food and Lodging that is creating a problem that needs to be addressed. It has been at least 15 years since those fees have been adjusted. Basically it has run out of gas on restaurant revenues. It is being subsidized from Environmental Health. That problem is only going to get worse. September 6, 2016 16 Commissioner Bowles said another problem with Food and Lodging is the inspection of swimming pools of hotels/motels. The more growth, the more disparage between funds. Chairman Mallory suggested asking the Boards of the Mooresville Graded School District and the Iredell Statesville School System to pass resolutions asking that local jurisdictions be given more flexibility in their calendar when school starts to align with the community college. It has been driven by the beach counties to start school later but it should align with the college. If this isn't sent to the NCACC then it should be done individually with a Board resolution by the education boards and this board. No action was needed on this item. Request Approval of the August 16, 2016 Minutes: There were no corrections to the minutes. The Board recessed at 6:45 PM until 7:00 PM regular meeting. IREDELL COUNTY BOARD OF COMMISSIONERS REGULAR MINUTES September 6, 2016 The Iredell County Board of Commissioners met in regular session on Tuesday, September 6, 2016 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 Staff present: County Manager Ron Smith, County Attorney Bill Pope, Deputy County Manager Beth Jones, Finance Director Susan G. Robertson, Attorney Lisa Valdez, 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. PLEDGE OF ALLEGIANCE led by James Mallory. ADJUSTMENTS TO THE AGENDA County Manager Ron Smith said there were no adjustments from staff. Chairman Mallory said there will be some unfinished business relative to the courthouse renovations. PRESENTATION OF SPECIAL RECOGNITIONS & AWARDS September 6, 2016 17 Chairman Mallory mentioned there were no special recognitions or awards but wanted to recognize a scout in the audience. Jonathan Richie of Troop 607 was in attendance. APPOINTMENTS BEFORE THE BOARD (None) PUBLIC HEARINGS Public Hearing to Consider a Request by Jimmy McKnight (McKay Family) to Release Zoning and Subdivision Jurisdiction to the Town of Mooresville: Planning Director Matthew Todd said this request is a release of zoning and subdivision jurisdiction to the Town of Mooresville and it only impacts this particular piece of property. It is currently zoned Neighborhood Business. This property is already scheduled for annexation with the Town of Mooresville in December. The proposal of this property is to leave the front portion, 10 Acres, for commercial use, while developing the rear portion for 71 empty nester homes. The process for release is first the Board of Commissioners' release and then the Town of Mooresville will assign zoning before it is actually annexed. This allows development to begin before it is formally annexed by the Town. This annexation does not involve any neighboring properties. Chairman Mallory opened the public hearing. James McKnight of Realco Investment Properties, said he is representing Epcon Communities. Rich Hearth of Epcon and Wes Smith, Engineer from EHMET were also present. They are trying to replicate a project that has already been built on Brawley School Road called the Courtyards at Brawley Point. This is an up -scale, empty -nester product. Mr. McKay will retain the 10 acres on the front at Brawley School Road. Epcon is seeking to purchase 28 acres at the rear of the property for high-end, up -scale, empty -nester homes for buyers who may want to step down from a larger house as they are approaching retirement age. This group would have very little impact on traffic during peak times of the day and will have no impact on schools. This is a great tax revenue producer. Commissioner Bowles asked about the size of the homes. McKnight said they will run between 1,800 and 2,400 square feet. Some will have a bonus room upstairs. They are single-family detached homes. A very unique feature is a solid masonry wall on one side. The adjacent home will have a courtyard that will face that wall so that the courtyard will be private. It is an award winning design. There are many subdivisions of this type in the Charlotte area. An unidentified person from the audience asked about the entrance to the development and if it would eventually connect to the plaza. McKnight said two entrances will probably be off of Blume Road and there are no plans to connect to the plaza. Quinton Geary asked if the project would have any influence on the traffic light that was just installed on Brawley and Blume Road. McKnight said no. Karen Cush asked about the annexation and if it would affect the other subdivisions. September 6, 2016 18 Chairman Mallory said it is only the property in question. Chairman Mallory closed the public hearing. MOTION by Commissioner Bowles to approve the release of zoning and subdivision jurisdiction to the Town of Mooresville by Jimmy McKnight, representing the McKay family. VOTING: Ayes — 5; Nays — 0 Public Hearing to Consider a Request from Charlotte Ski Boats to Rezone 6.52 Acres at 1200 Brawley School Road from NB CUD to HB CD: Planning Director Matthew Todd said this property is 6.5 acres currently zoned Neighbor Business Conditional Use District. It is adjacent to existing commercial and will be an addition to the existing business on the property. Staff supports this request based on the 2030 Horizon Plan which calls for this area to be corridor commercial with limited uses and traffic impacts will not exceed capacity. The Planning Board voted 7-0 to approve this request. The current building is an old fire department and the property with the building has been annexed by the Town of Mooresville. This request is conditional which means they must abide by the site plan that has been proposed. Commissioner Johnson said the ordinance requires a buffer and asked if the natural wooded area would suffice as a buffer or if anything else would be required of the applicant. Todd said there will be a requirement for landscaping on Brawley School Road and the code does require screening and buffer along the residential areas. Many times existing screenings can be used but at any point the Planning Department feels it does not meet the density requirement for screening then the property owner would have to make adjustments. Commissioner Johnson asked if that decision was left to the applicant or does the Planning Department dictate what can be used. Todd said the code gives options but it is up to staff to make a judgement call to whether or not it meets the requirements. Commissioner Bowles asked when the screening requirement goes into effect. Todd said typically those requirements go into play when they start using the property. Unfortunately, this property is already in use. Therefore as soon as the rezoning is approved the owner will need to move forward on submitting a site plan with all of the requirements met and with the screening and buffer. The buildings will be phased in. Commissioner Johnson asked if the ordinance addresses lighting. Todd said the ordinance is vague in the way it's phrased. Basically, lights are not supposed to shine on adjacent property. Staff will work with the applicant to ensure lights shine toward the interior of the property. Chairman Mallory asked if the proposed buildings would be for storage and/or maintenance. Todd said they would be used for storage, maintenance and repair. There is nothing that would prohibit some boats outside but they would have to stay within the confined areas outside of the roadway and landscaped yard. It is the intent to keep boats in a covered area. September 6, 2016 19 Chairman Mallory asked if DOT would add a buffer to the right-of-way area. Todd said in theory a buffer could be added but not sure how much luck they would have in convincing DOT to do that. Chairman Mallory opened the public hearing. Lee Levandowski, owner of Charlotte Ski Boats, said they purchased the old fire station several years ago and had to rezone. The business was smaller then but has grown and additional property is needed. The plan is to store the boats inside and make the property look more of a Trump appearance. Currently they are working with the Trump Golf Course for all of the water activities along with other major clientele from The Point. It is a very large investment project with very nice landscaping to duplicate other area businesses. They are part of the 20 -Group, which is the 20 best dealers in the United States. All of the design work has already been done in other areas. Commissioner Robertson asked about a timeframe for the build out. Amanda Levandowski (owner) said they have a ten year plan for the buildings. Phase I is to build one storage building. Some landscaping has already begun but there will be more clean- up and more landscaping also in the first phase. Results should be seen in less than 12 months. Don Horton, Jr., a presentative of Row Limited, who currently owns the property and is leasing to Charlotte Ski Boats, was present to lean support. Chairman Mallory closed the public hearing. Commissioner Johnson stated that because many conditions that were to be added were added during the public hearing and incorporated into the ordinance and because the applicant has agreed to the conditional use district, he is very comfortable with the recommendation from the Planning Board. This will be a great improvement of the property and will add a significant improvement to the appearance of the corridor. It appears the applicant has a good business plan and will proceed with prudence as the market allows. Johnson feels confident the applicant will bring to fruition what has been presented. MOTION by Commissioner Johnson to recommend in favor of the zoning map amendment and to make a finding that the approval is consistent with the adopted 2030 Horizon Plan and that said approval is reasonable and in the public interest and furthers the goals of the 2030 Horizon Plan because it is adjacent to commercially zoned property, only limited uses are allowed, and the traffic impacts will not exceed road capacity. VOTING: Ayes — 5; Nays — 0 Public Hearing on a Proposed Installment Contract Financing to Refinance and Adopt a Resolution Approving and Authorizing an Installment Contract Financing by the County: Finance Director Susan Robertson stated that in March of 2008, the County issued over $108,000,000 in Certificates of Participation which is a financing tool that does not pledge the full faith and credit of the County. It does not require a referendum. A Deed of Trust is given to the properties being financed, very similar to a home mortgage. At that time the need was great to renovate and build additional school classrooms and it was a time when interest rates were probably the highest seen in a long time. Those coupons issued averaged about 5.04%. Staff has been waiting for interest rates to lower in order to realize some savings and then refinance (refund) September 6, 2016 20 those bonds. At this point the County has about $75,000,000 remaining on the 2008 bonds and the County can refund the 2018-2028 maturities on those bonds at a true interest cost estimated at 1.68% for a cash flow savings at $11.3 million or a net present value savings of about $9.9 million. It does not extend the life of the debt as they will pay out in 2028. Part of the required process is to conduct document review meetings with legal and bond council. Within the next few weeks there will be a preliminary review statement in preparation for the October bond sale. During the prior week there were three rating agency calls from Moody's, Standard & Poor, and Fitch. They gave very good feedback. One agency said Iredell County is operating as a Triple A credit. The County is as high as it can get before a Triple A rating. However, there are some metrics that would be very difficult for the County to achieve, all to do with the wealth of the County. But some of the positive things they pointed out were diversity in industry and agriculture, the fiscal policies the Board has adopted through the years, the philosophy of the Board, as well as the Board's reaction to economic downturns. Bonds have been issued in the last couple of years and all were impressed that during a time when economic downturn the County was able to provide all the services citizens required without digging too deeply into the fund balance along with what has been done to build the fund balance since that time. Commissioner Robertson asked what sort of drop in interest rates justifies the refinancing. Finance Director Robertson said it was considered in 2014 but at that time it was less than 6% net present value savings and the Local Government Commission in Raleigh won't consider anything less than 3%. At that time, since the County was further away from the redemption date, the Board decided to pull it because it was believed that interest rates would not increase as quickly as refinancing at that time would have resulted in. It was a bet that interest rates would not increase substantially and possibly decrease and the savings would get better closer to the redemption date. Commissioner Robertson asked if the interest were to drop to zero or even into to a negative, would the County go through this effort again on this set of bonds. Also, what happens to the money? Finance Director Robertson said probably not but cannot say absolutely. The 1.68% does include all closing cost, trustees, bond ratings, etc. The debt payments are part of the school capital outlay formula so it will be up to the Board to make changes. It could continue as capital outlay to pay for pay -go projects that both systems have or the Board could change the designation. Robertson failed to mention earlier but wanted to point out that the original deal also included the financing of a 189 acre tract of land adjacent to the existing landfill in Statesville. The new bonds will only have a Deed of Trust on Mooresville Middle School. That middle school alone will provide about 50% of the total refunding. Until which time the original bonds are paid in full, Cloverleaf Elementary will have a Deed of Trust to secure those remaining bonds. Chairman Mallory opened the public hearing. No one from the public spoke. Chairman Mallory closed the public hearing. Vice Chairman Norman introduced the "Resolution Approving and Authorizing an Installment Contract Financing by the County of Iredell, North Carolina through the Issuance of Not Exceeding $68,000,000 Limited Obligation Refunding Bonds, Series 2016 and the Execution September 6, 2016 21 and Delivery of a Trust Agreement, a First Supplemental Trust Agreement, a Deed of Trust and Related Documents in Connection Therewith." Finance Director Robertson said the resolution also authorizes the Chairman, the Vice Chairman, the County Manager, Clerk to the Board, County Attorney, and Finance Director to sign and execute the documents that will be required and resulting from this refunding. OTION by Vice Chairman Norman to adopt the "Resolution Approving and Authorizing an Installment Contract Financing by the County of Iredell, North Carolina through the Issuance of Not Exceeding $68,000,000 Limited Obligation Refunding Bonds, Series 2016 and the Execution and Delivery of a Trust Agreement, a First Supplemental Trust Agreement, a Deed of Trust and Related Documents in Connection Therewith." VOTING: Ayes — 5; Nays — 0 Chairman Mallory reiterated the huge savings that will be realized over the balance of the term of this obligation. Every time the County lets a bond the rating agencies must evaluate the County. Iredell County can be very proud of the finance staff, management team, and preceding boards who, even through economic trials, maintained services to citizens. Mallory expressed his thanks to the staff and preceding boards. Commissioner Robertson added that this is the result of decades of a conservative approach by this board. One reason why the County has a healthy fund balance is because of prudent and responsible Department Directors didn't spend their budgets under the leadership of Joel Mashburn and Ron Smith. Robertson expressed his thanks to everyone, especially the finance staff, who had a hand in saving $10 million that will stay inside Iredell County which is a reason to celebrate. RESOLUTION APPROVING AND AUTHORIZING AN INSTALLMENT CONTRACT FINANCING BY THE COUNTY OF ►REDELL, NORTH CAROLINA THROUGH THE ISSUANCE OF NOT EXCEEDING $68,000,000 LIMITED OBLIGATION REFUNDING BONDS, SERIES 2016 AND THE EXECUTION AND DELIVERY OF A TRUST AGREEMENT, A FIRST SUPPLEMENTAL TRUST AGREEMENT, A DEED OF TRUST AND RELATED DOCUMENTS IN CONNECTION THEREWITH BE IT RESOLVED by the Board of Commissioners (the "Board") for the County of Iredell, North Carolina (the "County"): Section 1. The Board does hereby find and determine as follows: (a) The County has heretofore entered into an Installment Financing Agreement, dated as of March 1, 2008 (the "2008 Agreement"), with Iredell County Public Facilities Corporation, a North Carolina nonprofit corporation (the "Corporation"), pursuant to which the County financed (a) certain public school improvements consisting of construction, acquisition, improvement, renovation and equipping of Celeste Henkel Elementary School, East Iredell Elementary School, Cloverleaf Elementary School, Shepherd Elementary School, South Iredell High School, Statesville High School, Rocky River Road Elementary School and Mooresville Middle School and (b) the acquisition of an approximately 189 -acre tract of land to provide for expansion of the County's solid waste disposal facility. At present, the principal amount of the County's remaining obligations under the 2008 Agreement is $75,535,000. The County desires to refinance all or a portion of the remaining principal obligations under the 2008 Agreement. September 6, 2016 22 (b) After a public hearing and due consideration, the County has determined that the best manner of such refinancing will be through an installment contract financing arrangement pursuant to the provisions of North Carolina General Statute 160A-20, such arrangement to be carried out through the issuance by the County of its Limited Obligation Refunding Bonds (the `Bonds") in a principal amount of not to exceed $68,000,000. The Bonds will be issued under a Trust Agreement, to be dated as of December 1, 2016 (the "Trust Agreement"), between the County and U.S. Bank National Association, as trustee (the "Trustee"), as supplemented by a First Supplemental Trust Agreement, to be dated as of December 1, 2016 (the "First Supplemental Trust Agreement"), between the County and the Trustee. (c) In order to secure the performance of its obligations with respect to the Bonds under the Trust Agreement, the County will execute and deliver a Deed of Trust, to be dated as of December 1, 2016 (the "Deed of Trust"), granting a lien of record on Mooresville Middle School, and, to the extent necessary or convenient to carry out the transaction, all or a portion of the sites of the other school properties acquired or improved with funds provided under the 2008 Agreement, together with all improvements and fixtures located and to be located thereon (the final determination of the properties to be subject to the Deed of Trust to be determined as set forth herein). (d) The Bonds will initially be sold to Merrill Lynch, Pierce, Fenner & Smith Incorporated and Citigroup Global Markets, Inc. (collectively, the "Underwriters"), pursuant to the terms of a Bond Purchase Agreement, to be dated the date of delivery thereof (the `Bond Purchase Agreement"), among the County and the representative of the Underwriters. (e) In connection with the offering and sale of the Bonds by the Underwriters, there will be prepared and distributed to potential investors a Preliminary Official Statement, to be dated as of the date of delivery thereof (the "Preliminary Official Statement"), relating to the offering and sale of the Bonds, and the Official Statement (hereinafter defined). (f) In order to provide for the safekeeping and investment of the proceeds of the Bonds pending the application thereof to the retirement of the County's obligations under the 2008 Agreement, the County and the Corporation will enter into an Escrow Deposit Agreement, to be dated as of December 1, 2016 (the "Escrow Agreement") with U.S. Bank National Association, as escrow agent (the "Escrow Agent"). (g) There have been presented to the Board drafts of the following documents relating to the transaction hereinabove described: thereto; (1) the Trust Agreement; (2) the First Supplemental Trust Agreement, including a form of the Bonds attached as Exhibit A (3) the Deed of Trust; (4) the Bond Purchase Agreement; (5) the Preliminary Official Statement; and (6) the Escrow Agreement. Section 2. In order to provide for the refinancing of the County's obligations under the 2008 Agreement as described above, the County is hereby authorized to enter into the Trust Agreement and the First Supplemental Trust Agreement and to issue the Bonds thereunder in a principal amount not to exceed $68,000,000. The Bonds shall mature, shall bear interest at such rates, and shall be subject to redemption as set forth in the Trust Agreement and the First Supplemental Trust Agreement. The Bonds shall bear interest at such interest rates or yields that, together with the sale prices to that County described in Section 3, shall result in a true interest cost to the County of not to exceed four percent (4%). The final maturity of the Bonds shall not be later than June 1, 2028. September 6, 2016 23 Section 3. The Bonds shall be sold to the Underwriters pursuant to the terms of the Bond Purchase Agreement. The Bonds may be sold to the Underwriters at a discount below the amount of the principal amount of the Bonds, such discount not to exceed one percent (1%) of the principal amount of the Bonds; provided, however, that if all or any of the Bonds are to be sold to the public by the Underwriters at original issue discount (resulting in lower interest costs of the interest component of the debt service payments on the Bonds), then the Bonds may be sold at a further discount in the amount necessary to cover such original issue discount. Section 4. The Board hereby approves the forms of the Trust Agreement, the First Supplemental Trust Agreement, the Deed of Trust, the Bond Purchase Agreement, the Escrow Agreement and the Bonds in substantially the forms presented at this meeting. The Chairman of the Board, the Vice Chair, the County Manager and the Director of Finance and Administrative Services are each hereby authorized to execute and deliver the Trust Agreement, the First Supplemental Trust Agreement, the Deed of Trust, the Bond Purchase Agreement, the Escrow Agreement and the Bonds on behalf of the County in substantially the forms presented at this meeting, containing such insertions, deletions and filling in of blanks as the person executing such documents shall approve, such execution to be conclusive evidence of approval by the Board of any such changes. The Clerk to the Board or any assistant or deputy Clerk to the Board is hereby authorized to affix the official seal of the County to said documents and to attest the same to the extent required. The County Manager and Director of Finance and Administrative Services are hereby authorized to determine on behalf of the County which of the school properties referred to in Section Ile) shall be subject to the lien of the Deed of Trust. The properties selected shall be such properties as such officers determine are reasonably necessary or expedient in order to provide adequate security for the Bonds such that the Bonds can be sold at optimal interest rates for the County. The Chairman of the Board, the Vice Chair, the County Manager and the Director of Finance and Administrative Services are each hereby authorized to execute and deliver on behalf of the County any amendments or supplements to the existing lease agreements between the County and the Iredell-Statesville Schools Board of Education or the Mooresville Graded School District Board (as the case may be) with respect to the school properties financed under the 2008 Agreement as shall be necessary or desirable to facilitate the transaction contemplated by this resolution. Section 5. No deficiency judgment may be rendered against the County in any action for breach of any contractual obligation with respect to the Bonds or under the Trust Agreement and the First Supplemental Trust Agreement, and the taxing power of the County is not and may not be pledged directly or indirectly to secure any moneys due with respect to the Bonds or under the Trust Agreement. Section 6. The Board hereby approves the form of the Preliminary Official Statement in substantially the form presented at this meeting and the distribution thereof by the Underwriters in connection with the offering and sale of the Bonds. Upon the sale of the Bonds to the Underwriters, a final Official Statement, to be dated as of the date of the Bond Purchase Agreement (the "Official Statement"), will be prepared substantially in the form of the Preliminary Official Statement and will contain such information relating to the pricing terms of the Bonds and such additional information as may be necessary. The Board hereby approves the execution and delivery of the Official Statement on behalf of the County by the Chairman of the Board, the County Manager and the Director of Finance and Administrative Services and the distribution thereof by the Underwriters in connection with the offering and sale of the Bonds. Section 7. The Chairman of the Board, the County Manager, the Director of Finance and Administrative Services and the Clerk to the Board, and any other officers, agents and employees of the County, are hereby authorized and directed to deliver such certificates, opinions and other items of evidence as shall be deemed necessary to consummate the transactions described above. Section 8. The County Manager and the Director of Finance and Administrative Services are hereby authorized to cooperate with the Underwriters in preparing and filing such filings under state securities or "blue sky" laws as the Underwriters may request; provided, however, that the County shall not be required to consent to the jurisdiction of any state in which it is not now subject unless the County Attorney shall determine that such consent is in the best interest of the County. September 6, 2016 24 Section 9. This resolution shall take effect immediately upon its passage. ADMINISTRATIVE MATTERS County Manager Ron Smith summarized the consent agenda as follows: • Request from the Sheriff's Department for approval to receive the 2017 JAG Grant in the amount of $15,029.00. • Request from the Sheriff's Department for approval of a sole source purchase of Taser replacements and a five-year replacement agreement. • Request from the Planning Division for 20% in matching funds for a study of a North/South parkway in southern Iredell County not to exceed $3,750.00. • Request from the Finance Department to demolish nine houses on Short Street and Tradd Street. • Request from the Finance Department to demolish two houses on Harrill Street and Davie Avenue. • Request from the Finance Department for adoption of a resolution providing for the issuance of not to exceed $19,000,000 in General Obligation School Bonds, Series 2016. • Request from Administration for approval of a partial refund of permit fees for Fort Dobbs totaling $1,383.74. • Request for approval of the August 16, 2016 minutes. OTION by Commissioner Robertson to approve the consent agenda. VOTING: Ayes — 5; Nays — 0 ANNOUNCEMENT OF VACANCIES OCCURING ON BOARDS & COMMISSIONS (None) APPOINTMENTS TO BOARD AND COMMISSIONS JCPC (2 Appointments) OTION by Commissioner Johnson to nominate Sayna Rouson and Joseph Barone, to close the nominations and appoint Reason and Barone by acclamation. VOTING: Ayes — 5; Nays — 0 UNFINISHED BUSINESS Chairman Mallory said there is additional information concerning the proposed renovations at the Hall of Justice that is precipitated by the new jail project which will include moving monuments, flag pole, and building a ramp outside. But also, on the interior by moving walls. Commissioner Johnson stated that at a previous meeting there was a lengthy discussion over flipping the entrance at the Hall of Justice. The Board had some concerns about the cost. A conversation with Major Connolly and Clerk of Court Jim Mixson has led to further research about moving an interior wall. A great deal of money is being spent to help get people to the Courthouse only to have difficulty traversing through the Courthouse. Johnson said Mixson had some ideas to September 6, 2016 25 assist in saving money on this project, but still meet the needs. Also, David Saleeby contacted contractors and code enforcement for more direct information. The current proposal is an alternative way to complete the project substantially less than the original proposal. Johnson thanked staff for the research and work on this proposal. Project Manager David Saleeby said the project was originally proposed between $75,000 and $100,000 to move two walls inside the courthouse. There was a discussion about issues above the ceiling. The wall in question is the one on the right from the North entrance. Building standards staff has engineered out the issues and brought the cost of the project to less than $47,000. The original proposal had two doors going into the office behind the wall, but changing that to one double door saved space and money. Commissioner Johnson stated one of the concerns was the overcrowding at one of the doors on a busy court day, but moving the wall would alleviate that issue. Johnson asked if the issues above the ceiling would be encapsulated where the work is being done. Saleeby said yes or it will be untouched. Chairman Mallory thanked Johnson and staff for working diligently on a solution to this project County Manager Ron Smith said a motion is needed. At the last meeting most of the renovations were approved except this wall and the trees. Commissioner Johnson clarified he still has a problem with the trees but is comfortable with this proposal for the wall renovation. He thanked the County Manager, David Saleeby, Major Bert Connolly, Jim Mixson, Lynn Niblock, and Terry Miller for all the work on this project. This accomplished the Board's wishes along with preserving the safety and convenience of the courts and citizens. MOTION by Commissioner Johnson to approve the recommendation of David Saleeby as outlined on the spreadsheet at a cost of $111,880.00. VOTING: Ayes — 5; Nays — 0 PUBLIC COMMENT PERIOD NEW BUSINESS (None) COUNTY MANAGER'S REPORT County Manager Ron Smith updated the Board on the following items: • Reminder there will be a meeting on Thursday at 5:30 PM at the Hall of Justice to inform employees and concerned citizens of the work that will be going on. • The Jail and Public Safety Contracts are signed and out the door. • The Clerk to the Board has been working diligently with a new agenda management program called Provox Systems. There will be changes soon. • An announcement and recognition —The Parks/Recreation Department began a discussion, over a year ago, about the North Iredell Park and the fact that the project just never got off the ground. New opportunities came forth and the County was able to take ownership of September 6, 2016 26 the old Sertoma Park and adjacent 50 acres. As part of that plan certain funding mechanisms had to take place to move forward. One was a PARTF Grant to which the department applied. This grant was awarded on August 25 to Iredell County in the amount of $419,000 going toward the new Jennings Park. This was the number one ranked project out of the 66 that were submitted. This was a lot of hard work and Smith publically thanked Michelle Hepler and staff for their diligence. Chairman Mallory expressed his thanks as well. Vice Chairman Norman thanked Hepler for the invitation as it was a very enjoyable trip to Raleigh to hear the awarding of the grant. He suggested that should there be another opportunity to apply for such a grant and be awarded that other staff and Board members should attend. CLOSED SESSIONS The Chairman recessed the meeting into Closed Session at 8:20 PM for Economic Development G.S. 143-318.11 (a) (4); Property Acquisition G.S. 143-318.11 (a) (5); and Attorney - Client G.S. 143-318.11 (a) (3). The Board returned to open session at 10:03 PM. MOTION by Commissioner Robertson to extend the previous contract for Star Hagen Aerospace Components, LLC for an additional 180 days. VOTING: Ayes — 5; Nays — 0 ADJOURNMENT OTION by Commissioner Johnson to adjourn at 10:05 PM. (The next meeting will be Tuesday, September 20, 2016, 7:00 PM, in the Commissioners' Meeting Room, Pre -Agenda Discussion at 5:30 PM in the South Wing Conference Room, Government Center, 200 South Center Street, Statesville, NC) VOTING: Ayes — 5; Nays — 0 Date Approved Retha C. Gaither, Clerk September 6, 2016 27