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10161995 ?n1 ~,.~"',.~ '",,~.? .~.. HARNETT COUNTY BOARD OF COMMISSIONERS REGULAR MEETING, OCTOBER 16, 1995 The Harnett County Board of Commissioners met in regular session on Monday, October 16, 1995, in the Commissioners Meeting Room, County Office Building, Lillington, North Carolina. Members present: H. L. Sorrell, Jr. , Chairman Beatrice Bailey Hill, Vice-Chairman Dan B. Andrews Joseph T. Bowden . Walt Titchener Staff present: Neil Emory, County Manager Wm. A. (Tony) Wilder, Assistant County Manager Dwight W. Snow, County Attorney Vanessa W. Young, Finance Officer Kay S. Blanchard, Clerk to the Board Chairman Sorrell called the meeting to order at 7 p.m. and Commissioner Titchener led the Pledge of Allegiance and prayer. Commissioner Bowden made a motion to add an item to the consent agenda concerning observance of United States Day. Commissioner Hill seconded the motion and it passed with a unanimous vote. Commissioner Titchener moved for approval of the agenda as published with addition as noted. Commissioner Andrews seconded the motion and it passed with a unanimous vote. CONSENT AGENDA Upon motion by Commissioner Bowden and seconded by Commissioner Hill, the Board unanimously approved the following items on the consent agenda: l. Minutes: Regular Meeting, October 2, 1995 Joint Meeting with Board of Health, October 11, 1995 2. Budget Amendments: . Health Department Code 10-7600-0020 Salaries & Wages 1,000. decrease 10-7600-0470 Food & Provisions 1,000. increase Health De~artment Code 10-7600-0200 Salaries & Wages 13,399. increase 10-7600-0050 FICA Tax Expense 1,025. increase 10-7600-0060 Group Insurance 2,097. increase 10-7600-0070 Retirement 666. increase 10-7600-0071 Supplemental Retirement 134. increase 10-7600-0100 Employee Training 250. increase 10-7600-0110 Telephone & Postage 729. increase 10-7600-0140 Travel & Meetings 4,200. increase 10-7600-0261 Incentives 1,165. increase 10-7600-0330 Materials & Supplies 790. increase 10-7600-0360 Uniforms 60. increase 10-7600-0460 Medical Supplies 1,93l. increase 10-7600-0740 Capital Outlay-Equip. 475. increase Revenue: 10-3480-0273 Immunization Action Plan 26,921. increase Revolving Loan Fund (Welsh SportinQ Goods Proiect) Code 64-3335-000 Program Income 18,500. decrease 64-3480-000 CDBG Grant 355,207. decrease 64-9018-001 Building Construction 295,000. decrease 64-9018-0lD Acquisition 29,640. decrease 64-9018-020 Administration 28,500. decrease 64-9018-045 Machinery & Equipment 10,000. decrease 64-9018-046 Working Capital 10,567. decrease Public Utilities (East Central Water & Sewer District) . Code 69-9012-0800 Contingency 861. decrease 69-9012-0200 Legal & Admin. 86l. increase Water Plant Expansion Code 76-9026-0010 T.A. Loving-Canst. 7,821,986. increase 76-9026-0080 O'Quinn-Electrical 637,207. increase 76-9026-0090 HVAC/Plumbing 50,000. increase 76-9026-0300 Engineering 28,462. increase 76-9026-0060 P. R. Faulk-MB 618. decrease 76-9026-0061 P. R. Faulk-Admin. 4,980. decrease 76-9026-0200 Legal/Admin. 76,000. decrease 76-9026-0800 Contingency 160,827. decrease Revenue: 76-3600-0000 Sales Tax Refund 250,000. increase 76-3480-0000 Revolving Loan Fund 3,000,000. increase 76-3480-0010 Clean Water Bond 3,000,000. increase 76-3601-0010 Town of Fuquay-var. 1,222,097. increase 76-3980-0020 Interfund Trans.-Metro. 823,133. increase . ..~_.._~.-- -~---~ ,---.--- ~ 20? Human Resources Code 10-7400-0020 Salaries & wages 1,610. increase 10-7400-0070 Retirement Expense 80. increase 10-7400-0071 Supplemental Retirement 20. increase 10-7400-0450 Contracted Services 40,608. increase 10-7400-0720 Support Services 3,640. increase Revenue: 10-3480-0600 JTPA Funding 45,958. increase Public Utilities (Southwest W & S District) Code 37-9006-0740 Capital Outlay 3,000. increase 37-3990-000 Fund Balance 3,000. increase Board of Elections Code 10-4300-075 Lease Payments 518. increase Revenue: 10-3990-000 Fund Balance 518. increase . TAX REFUNDS 3. Tax Refunds (Attachment 1) RENEWAL OF LEASE 4. Renewal of lease agreement with Odell Hardee and wife for AGREE FOR BUCKHORN Buckhorn container site CONTAINER SITE 5. Authorization for Cooperative Extension to apply for March of Dimes grant to aid EFNEP Breastfeeding program RELEASE STATE FUNDS 6. Resolution regarding Lead Regional Organizational Funds from TO MID-CAROLINA the State (Attachment 2) BUIES CREEK-COATS 7. Contract with Tate Lanning & Associates, P.c. for sewer study W & S STUDY for Buies Creek/Coats Water & Sewer District 8. Final Subdivision Plats: FINAL SUBDIVISIONS A. Clayton Downs, owner: Barnes Clayton & H.D. Hardey, 11 lots, SR 2003, Grove Township, RA-30 Zoning District, 9.0 acres B. Heritage Village, Phase V, Section II, Block E, owner: Ki1arnold Corp., 26 lots, NC 24, Johnsonvil1e Township, unzoned, 18.88 acres C. Huntington, owner: Ernest Tart, 14 lots, SR 1865, Grove Township, RA-30 Zoning District, 29.46 acres UNITED STATES DAY 9. Recognition of United States Day, October 23,1995 APPOINTMENT Commissioner Titchener moved for the appointment of Daniel T. . (Danny) Ralph, Erwin, to the Domiciliary Home Community Advisory Committee for a one-year term which will expire 9/30/96. Commissioner Andrews seconded the motion and it passed with a unanimous vote. FEASIBILITY STUDY Rodney M. Tart, Director, Public Utilities, discussed a request FOR RIVERSIDE from the proposed Riverside Water & Sewer District for a feasibility study. This area is the only portion of Harnett County not included in a water & sewer district. Steve Plummer, chairman of the steering committee for proposed district, appeared before the Board and asked for consideration of a feasibility study. Commissioner Bowden moved to authorize a feasibility study for the proposed Riverside Water & Sewer District. Commissioner Hill seconded the motion and it passed with a unanimous vote. HARMONY BAPT. CHURCH Rev. Raymond E. Moore, Jr., pastor of Harmony Baptist Church, and REQUEST FOR EXT. OF Bill King, member of the building and grounds committee, appeared WATER LINES before the Board to discuss the proposed extension of water lines to the church. Neil Emory, County Manager, noted that the County has been notified that FmHA will be providing funding for this project. Mr. Emory explained the steps and time frame for the water line extension project. ,WATER PLANT EXPAN. Neil Emory, County Manager, briefed the Board that action taken LOAN/GRANT APPLI. by the Board in February regarding the Water Plant Expansion MODIFIED loan/grant application needs to be modified. Commissioner Titchener made a motion to approve the promissory note for the . Federal Revolving Loan and to recind action regarding this matter taken at the February 6, 1995, Board meeting. Commissioner Andrews seconded the motion and it passed with a unanimous vote. Commissioner Andrews made a motion to adopt the Loan Agreement for the State Bond Loan and a Schedule of Terms form and to recind action regarding this matter taken at the February 16, 1995, Board meeting. Commissioner Hill seconded the motion and it passed with a unanimous vote. (Attachment 3) EHPLOYEE TRAINING Neil Emory, County Manager, noted that two items discussed by the Board during the recent retreat were customer service training and maintaining an updated reclassification system to provide fair compensation to employees. Staff proposes that the County proceed with customer service training by Fred Pryor Seminars ($4,800), and enter into a contract with David M. Gr if fi th and Asso. ($14,800) for a reclassification update. Commissioner Andrews moved to authorize both items with funds to come from Contingency as noted during the budget process. Commissioner Bowden seconded the motion and it passed with a unanimous vote. ?n~ {.o..",,"~ ........' 'L./ ASSESSMENT OF Neil Emory, County Manager, briefed the Board that the North MEDICARE PAYMENTS Carolina Emergency Medical Service Administrators' organization has requested that the County contribute funds toward an assessment of Medicare payments made to EMS providers in North carolina. Commissioner Titchener moved for the County to contribute $400 to this effort. Commissioner Bowden seconded the motion and it passed with a unanimous vote. ICON CEALED WEAPON Neil Emory, County Manager, presented a proposed Concealed Weapon ORDINANCE Ordinance for the Board's consideration. Mr. Emory stated that due to State law changes, the County must now adopt an ordinance . to prohibit individuals from carrying concealed weapons on certain County property. Commissioner Bowden moved for adoption of the Concealed Weapon Ordinance. Commissioner Titchener seconded the motion and it passed with a unanimous vote. The ordinance is copied in full in Harnett County Ordinance Book 1 on page.!t!:J::!f:..... In the County Manager's report, Mr. Emory reported that the County's Annual Surplus Auction grossed $21,811.50. Departm~ntal reports were filed with the Board from the Sheriff's Department, Emergency Medical service, Tax releases and Environmental Health. There being no further business, Commissioner Hill moved for the meeting to adjourn. Commissioner Andrews seconded the motion and <illJOURNMENT it passed with a unanimous vote. The Harnett County Board of Commissioners Meeting, October 16, 1995, adjourned at 7:38 p.m. p'/ ~/) ~. L. Sorfell, J~irman ~Lli' ,f. ifill//{ dt a.nd Ka . Blanchard, Clerk to the Board . Attachment 1. REFUND REPORT FOR SEPTEMBER 1995 05-0ct-95 PARCEL NAME REASON AMOUNT YEAR 95-591745 JAMES mOMAS VEHICLE SOLD $7.93 1994 RT 3 BOX 1074 $1015 X .0070 = $7.11 CO. WIDE LILLINGTON NC 27546 $1015 X .0008 = $ .82 SUM. FR 02-1507-0296 MARY PERRY ELDERLY EXEMPTION WAS NOT $24.84 208 BURTON ST. GIVEN IN ERROR. 1994 DUNN. NC 28334 $3450 X .0070 = $24.15 CO. WIDE $3450 X .0002 = $ .69 AVE. SCH 1000682000 KELLY & WEST OVER LISTED BUSINESS PROPERTY $30.58 P.O. BOX 1118 FOR 1994 1994 LILLINGTON NC 27546 $4369 X .0070 = $30.58 CO. WIDE 1000682000 KELLY & WEST OVERLISTED BUSINESS PROPERTY $17.84 P.O. BOX 1118 FOR 1993. 1993 LILLINGTON, NC 27546 $2549 X .0070 = $17.84 CO. WIDE 1000682000 KELLY & WEST OVERLISTED BUSINESS PROPERTY . $16.88 P.O. BOX 1118 FOR 1992. 1992 . LILLINGTON, NC 27546 $2412 X .0070 = $16.88 CO. WIDE 1000682000 KELLY & WEST OVERLISTED BUSINESS PROPERTY P.O. BOX 1118 FOR 1991. $17.43 1991 LILLINGTON, NC 27546 $2389 X .0073 = $17.43 CO. WIDE 0303828000 VAN FRIZZELLE MOTOR VEHICLE DOUBLE LISTED $60.40 RT. 6 BOX 1568 $7550 X .0070 = $52.85 CO. WIDE 1995 SANFORD, NC 27330 $7550 X .0010 = $ 7.55 SS FR 08-0652-0020 HARRISON JONES MOTOR VEHICLE WAS DOUBLE $139.58 1995 PO BOX 27 BILLED KIPLING, NC 27543 $16230 X .0070 = $113.61 CO. WIDE $16230X.0009=$ 14.61 NHFR $16230 X .0007 = $ 11.36 NH RES --.--------- --~- --~- 204 94-520864 AL WILLIAMSON MILITARY EXEMPTION $37.05 1994 RT 6 BOX 1068 LOOP ROAD $4490 X .0070 = $31.43 CO WIDE SANFORD, NC 27330 $4490 X .0010 = $ 4.49 SS FR $4490 X .00025 = 5; 1.13 BH RES 94-541610 AL WILLIAMSON MILITARY EXEMPTION $3.47 1994 RT 6 BOX 1068 LOOP ROAD $419 X .0070 = $2.94 CO WIDE SANFORD NC 27330 $419 X .0010 = $ .42 SS FR $419 X .00025 = $ .11 BH RES 93-551573 AL WILLIAMSON MILITARY EXEMPTION $3.85 1993 RT 6 BOX 1068 LOOP ROAD $465 X .0070 = $3.26 CO WIDE SANFORD NC 27330 $465 X .00 to = $ .47 SS FR . $465 X .00025 = $ .12 BH RES AL WILLIAMSON MILITARY EXEMPTION 1 94-850920 $83.38 1994 RT 6 BOX 1068 LOOP ROAD $10105 X .0070 X $70.74 CO WIDE SANFORD NC 27330 $10105 X .0010 X $10.11 SS FR $10105 X .00025 X $ 2.53 BH RES 95-523619 LUTHER OQUINN SOLD VEHICLE $48.05 1995 PO BOX 575 $6005 X .0070 = $42.04 CO WIDE MAMERS NC 27552 $6005 X .0010 = $ 6.01 BT EMER $491.28 0201655000 WRIGHT'S TEXACO, INC. OVERLISTED BUSINESS PROPERTY $38.32 1994 P.O. BOX 178 FOR WADE, N.C. 28395 1992-94 55011 X .0070 = $35.07 CW $5011 X .045 = $ 2.25 AVE RES $501l X .02 = $ 1.00 AVE SCH 0201655000 WRIGHT'S TEXACO, INC. OVERLISTED BUSINESS PROPERTY $43.07 1993 P.O. BOX 178 FOR WADE, N.C. 28395 1992-94 . $5707 X .0070 = $39.94 CW $5707 X .035 = $ 1.99 AVE RES $5707 X .02 = $ 1.14 AVE SCH 0201655000 WRIGHT'S TEXACO, INC. OVERLISTED BUSINESS PROPERTY $47.28 1992 P.O. BOX 250 FOR LlLLINGTON, N.C. 27546 1992-1994 $6264 X .0070 = $43.84 CW $6264 X .035 = $ 2.19 AVE RES $6264 X .02 = $ 1.25 AVE SCH 0706721000 B.G. POPE & SON, INC. OVER LISTED BUSINESS PROPERTY $141.43 1990 P.O. BOX 848 FOR 1990 COA TS, N.C. 27521 $16447 X .0073 = $120.06 CW $16447 X .0008 = $ 13.15 GROVE FR $16447 X .0005 = $ 8.22 GROVE RES 95-500287 DAN HONEYCUTI CORRECTED DISTRICT - NOT IN $19.06 1995 RT. 3 BOX 5 TOWN ANGIER, N.C. 27501 $1980 X .0071 = $14.06 CW $5.00 ANGIER STICKER 95-500309 DAN HONEYCUTI CORRECTED DISTRICT - NOT IN $32.90 1995 RT. J BOX 5 TOWN ANGIER, N.C. 27501 $3900 X .0071 = $27.69 CITY OF ANGIER $5.00 ANGIER STICKER $.21 INTEREST . 95-522684 VlRA P. POPE MOTOR VEHICLE SOLD, PLATE $79.93 1995 RT. 4 BOX 25 TURNED IN DUNN, N.C 28334 $9928 X .0070 = 569.50 CW $9928 X .0004 = $ 3.97 AVE FR $9928 X .00045 = $ 4.47 AVE RES $9928 X .0002 = $ 1.99 AVE SCH 95-512961 STEWART & HAYES, P.A. MOTOR VEHICLE SOLD, PLATE $56.45 1995 P.O. BOX 546 TURNED IN DUNN, N.C. 28334 $4135 X .0070 = $28.95 CW $4135 X .0051 = $21.09 DUNN CITY $4135 X .0009 = $ 3.72 DUNN HOS $4135 X .00045 = $ 1.86 $4135 X .0002 = $ .83 AVE SCH ?rje ,,=" "'.,-;:) 95-520752 WILLIAM F. ROBERTS MOTOR VEHICLE SOLD, PLATE $25.82 1995 RT. 2 BOX 26C TIJRNED IN ANGIER, N.C. 27501 $3093 X .0070 == $21.65 CW $3093 X .0008 == $ 2.47 BR FR #3093 X .00055 == $ 1.70 BR RES 94-580307 EVELYN P. MCKOY MOTOR VEHICLE SOLD, PLATE $16.70 1994 112 CYPRESS DRIVE TIJRNED IN SPRING LAKE, N.C. 28390 $1907 X .0070 == $13.35 CW $1907 X .0015 == $ 2.86 AC FR INTEREST $ .49 93-560654 JEFFREY L. STIGLITZ MILITARY NON-RESIDENT $33.24 1993 . 1810 EV ANS STREET $3910 X .0070 = $27.37 CW SPRING LAKE, N.C. 28390 $3910 X .0015 == $ 5.87 AC FR 02-1519-0057-14 SHARON TURNER MOBILE HOME DOUBLE LISTED $137.18 1994 5349 HULL ST RD LOT 57 WITH REAL EST A TE PARCEL RICHMOND V A 23224 NUMBER 02-1519-0057-14. $17040 X .70 == $119.28 CO. WIDE $17040 X.04 == $ 6.82 AVE. FR $17040 X .045 == $ 7.67 AVE. RES $11040X.02 =$ 3.41 AVE. SCH 95-512524 BEITY DUCKWORTH SOLD MOTOR VEHICLE $20.72 1995 RT I BOX2704A $2575 X .0070 == $18.02 CAMERON NC 28326 $2575 X .0008 == $ 2.06 $2575 X .00025 == $ .64 $692.10 Attachment 2. RESOLtr.rION . WHEREAS , in North Carolina the Lead Regional Organizations, as voluntary organizations serving municipal and county governments, have established productive working relationships with the cities and counties across this state~ WHEREAS , the 1995 General Assembly recognized this need through the appropriation of $864,270 to help the Lead Regional Organizations assist local governments with grant applications, economic development, community development, and to support local industrial development activities and other activities as deemed appropriate by their local governments~ and WHEREAS , these funds are not intended to be used for payment of member dues or assessments to a Lead Regional Organization or to supplant funds appropriated by the member ~~_e.~uuents; WHEREAS , in the event that a request is not made by the County of Harnett for release of these funds to our Regional Council, the available funds will revert to the State's general funds; and ~~DJ!.REAS , in Region "K", funds in the amount of $48,015 will be used to support SRA, N.C. Rural Center, and N.C. Department of Commerce small business loan programs; CDBG and other local economic development projects; and promotion and development of the SouthEastern Entrepreneurial Roundtable; . NOW, ~AAREFORE BE IT RESOLVED, that the Harnett County Board of C~.._..issioners requests the release of its share of these funds, $9522.40, to Kid-Carolina Council of Governments at the earliest possible time in accordance with the provisions of Chapter 324, House Bill 229, section 9.4 of the 1995 Session Laws. Witnessed this the 16th day of October 1995, in , Lillington, NC by: K ~ J . f.i.la...uIR.<1. t.d #~J~ 81g , ture ot Witness /Signat.ure '. Clerk to the Board Chairman, Harentt County Bd. of Comm. (SEAL) Title Title - .. ~,,__~__,_____ . ______ ~_.__ _______.. _._________n___ ____. ______ ~____~___"_.,_~_...___ ____ 206 Attachment 3. (A) No~trC1~~~~t/;~rer Pollution Control Revolving Fund Project No. DEH-0208 PROMISSORY NOTE For value received, Countv of Harnett. herein referred to as the "Unit," hereby p~om~ses to pay the State of North Carolina the principal sum of Thrfle Million Dollars ($3,000,000) wIth In~erest on the unpaid principal sum. from the estimated completion date for a loan m~de to th~ Umt by the Department of Environment. Health and Natural Resources for a Water ProJect, herem referred to as the "Project," until said principal sum shall be paid. Interest will accrue at the rate of 3.215 percent per annum on the unpaid principal sum from . the Water Pollution Control Revolving Fund. The first interest payment is due not earlier than six months nor later than twelve months after the certified completion of the Project by Denartment of Environmental Health and Natul'al Rp.sources - Division of Environmental Management. All interest payments will be made semiimnually, payable on or before May 1 and November 1. (see attached maturity schedule). The principal sum shall be repaid in not more than 20 annual installments on Mav I, the first principal payment is due not earlier than six months after completion of the Project. The Unit may be required by the North Carolina Department of Environment, Health and Natural Resources to prepay this note in whole and any further commitment of funds may be withdrawn if the Unit fails to: (i) adopt on or before completion of Project, place into effect, and agree to maintain until the principal sum is paid, a schedule of fees, charges, and other available funds, includmg but not limited to the funds described in O.S. 1590-13(b), that will adequately Ilrovide for proper operation, maintenance, and administration of the project and for repayment of a 1 principal of and interest on loans; (ii) arrange for necessary financing of the Project within one year of the date of acceptance of a revolvinf loan; (iii) award a contract for construction of the Project within one year of the date of acceptance 0 a revolving loan. The principal sum will be used entirely within the intent of Water Pollution Control Revolving Fund for the purpose of acquiring, constructing and equipping the Project. The Unit shall keep the Project continuously insured against such risks as are customarily insured against. In case of material damage to the Project, prompt notice shall be given to Department of Environment. Health and Natural Resources. Proceeds from any insurance settlement shall either be used to reduce the unpaid principal amount or replace, repair, rebuild or restore the Project, in the discretion of the unit. The Project will be made accessible for inspection by any duly authorized representative of the State. . This note is not secured by a pledge of the faith and credit of the State of North Carolina or of the Unit, but is payable solely from the revenues of the Project or benefited systems, revenues received under Articles 40, 41 and 42 of Chapter 105 and so allocated by the Unit, or other available funds comprised of . as specifically designated and set out in the schedule, adopted by the unit pursuant to O.S. 1590-9(4). Payments of principal and interest on this Note shall be made directly to Department of Environment, Health and Natural Resources. All obligations of the Unit hereunder shall terminate when all sums due and to become due pursuant to this Note have been haid. This Note shall be governed by, and construed in accordance with, the laws of the State of Nort Carolina. The Unit a~ees that any other monies due to the unit of local government from the State may be withheld by teState and applied to the payment of this obligation whenever the unit fails to pay any payment of principal or interest on this note when due. The obligation of the Unit to make payments on this Note and observe all conditions herein stated shall be. absolute and unconditional. The Unit shall not suspend or . discontinue any such p~yment o~ thIS Note for any cause inclu.ding, without limitation, failure to complete the Project, faIl~re of title to all or any part of the ProJect, destruction or condemnation of all or any part of the ProJect. / In Witness Whereof, Countv of Harnett has caused this Note to be executed as of this date 10 16/95 . By 7/ ~/::f' / - 51uthor~id ~sen~ve H. L. orre , r., airman Board of Commissioners ACKNOWLEDGMENT OF EXECUTION . STATE OF North Carolina COUNTY OF Harnett This 16th day of October , 19 95, personally came before me H. L. So~rell, Jr. who, being by me duly sworn, says that he is the authorized r~presentab~e of County of Harnett . and that the said writing was sIgned. by him, In behalf of said governmental unit by its authority duly given. And the said authonzed representative acknowladgad.,Dthe said writing to be the act and deed of the said governmental unit. tt;'-:->'.- fiLAI\I.:.j....,,~ ~~~ C:. , t~ +-41!: '"" \ ;) "". -<Zt;:;;.,. v ~ ~ J Li1. t ! ~~<II'~; l' R' ') '\ 1\ ~ . <1Alt C'lJ1d ~ ( \\ U h.. Y ~ Nola", Publre .. .. My Commission Expires: i ;;. * * S July 22, 1995 '\ ~ PUrJl\C, l~i "'s. "1:.... ,.I' '~$ ,.,,r .j .:-"'..'.... .,. ,...;",.':14'/- "~" .:.~ (NOTARIAL SEAL) "##:!f//' (:(;U;\\,:,.,,~; ".&i'.i cl J.ia ~ i Ii tt:.~lio w - - ----- r,. 0 -,. ..; # #'._, j .. l September 29, 1995 County of Harnett Preliminary Schedule for Revolving I.oan Prepared by tbe Department of State Treasurer . Amount: $3,000,000 Term: 20 Years Interest Rate: 3.215% . Est. Date of Completion: June 16, 1997 Project Number: DEH.0208 I Fiscal I Outstanding I Interest I Nov. 1 Interest I May 1 Interest' Principal Total Annual Year Balance Rate Payment Payment Payment Payment 1997-98 $ 3,000,000.00 3.215% $ 0.00 $ 84,294.66 $ 150,000.00 $ 234,294.66 1998-99 $ 2,850,000.00 3.215% $ 45,813.75 $ 45,813.75 $ 150,000.00 $ 241,627.50 1999.00 $ 2,700,000.00 3.215% $ 43,402.50 $ 43,402.50 $ 150,000.00 $ 236,805.00 2000-01 $ 2,550,000.00 3.215% $ 40,991.25 $ 40,991.25 $ 150,000.00 $ 231,982.50 2001-02 $ 2,400,000.00 3.215% $ 38,580.00 $ 38,580.00 $ 150,000.00 $ 227,160.00 2002-03 $ 2,250,000.00 3.215% $ 36,168.75 $ 36,168.75 $ 150,000.00 $ 222,337.50 2003-04 $ 2,100,000.00 3.215% $ 33,757.50 $ 33,757.50 $ 150,000.00 $ 217,515.00 2004-05 $ 1,950,000.00 3.215% $ 31,346.25 $ 31,346.25 $ 150,000.00 $ 212,692.50 2005.06 $ 1,800,000.00 3.215% $ 28,935.00 $ 28,935.00 $ 150,000.00 $ 207,870.00 2006.07 $ 1,650,000.00 3.215% $ 26,523.75 $ 26,523.75 $ 150,000.00 $ 203,047.50 2007 -08 $ 1,500,000.00 3.215% $ 24,112.50 $ 24,112.50 $ 150,000.00 $ 198,225.00 2008.09 $ 1,350,000.00 3.215% $ 21,701.25 $ 21,701.25 $ 150,000.00 $ 193,402.50 2009.10 $ 1,200,000.00 3.215% $ 19,290.00 $ 19,290.00 $ 150,000.00 $ 188,580.00 2010-11 $ 1,050,000.00 3.215% $ 16,878.75 $ 16,878.75 $ 150,000.00 $ 183,757.50 2011-12 $ 900,000.00 3.215% $ 14,467.50 $ 14,467.50 $ 150,000.00 $ 178,935.00 2012-13 $ 750,000.00 3.215% $ 12,056.25 $ 12,056.25 $ 150,000.00 $ 174,112.50 2013.14 $ 600,000.00 3.215% $ 9,645.00 $ 9,645.00 $ 150,000.00 $ 169,290.00 2014.15 $ 450,000.00 3.215% $ 7,233.75 $ 7,233.75 $ 150,000.00 $ 164.467.50 2015-16 $ 300,000.00 3.215% $ 4,822.50 $ 4,822.50 $ 150,000.00 $ 159,645.00 2016-17 $ 150,000.00 3.215% $ 2,411.25 $ 2,411.25 $ 150,000.00 $ 154.822.50 TOTALS $ 458,137.50 $ 542,432.16 $ 3,000,000.00 $ 4,000.569.66 - - - - - . Revolving Loan Sr.HEOt.f (.E Of.TER.MS Name of Borrower: __C.!llLn t v o. f .Jl.a r..ne..tl.... .....____. _.- ------ -...-.. .---.-- -._-- - .... --.- .... - _h.... _.. ____ ,.-. -.-.----- .. ...._- AdGres6 of Borrower: ..r....ll . nnx 75Q ------..._~"__ _n_.... . . -.._- --- _ __h_. __._____ .. - .Lj J.1 i .Q g.t ClD..,. Nor t h . Car. olin <J2.7 ..5..4-6__ Attention: Mr. Ne i 1 _~~~ry! .Caunty._~an~ger . ...... '----1 Description of Project: ~ajj: L. T r.e..um F' n t.-.up.ans i un ..___. - .- ._---- -- ....'... . ---.-----. -----... ..-..- -- . ..... "." ~ - . -. . -, ..... --- - -."' -- ....---- -" -'... - - - .,-.. .. .--- Pnncipli~ Amount of Loan: i_"') I'\("_f" ~,1""\r'I I _ ._--!.:J..-!U~.,.._~.y_v___,_ . ---.--..--------- - --...... . -.----.. "- - . ---"-. .........----..-.-, . Interetlt Ratt:: -- 3 _~ 2 1 Cj ._ % llt.:e annum D~eli8n8.ted Non.Tu.x Rr::v~nue::l (if C1ny):__..___.n. --~ -.. .- . -.---.-.... -' ---....... -- _ _ ._n__. . .- - .----.-.--.-..,- .- - - . -.- -----. ~.....- ---- ----, -', -. .. -- .. . ----.-.----- - - - --- -- ~O8 t::.~ '4 ,~ Attachment 3. (B) LOAN AGREEMENT This Loan Agreement, dated October 16. 1995 (the "Agreement") by and between the Borrower listed on the Schedule of Terms attached her~to and made a part hereof (the "Borrower") and the State of North Carolina (the "State"); . WITNESSETH: WHEREAS, the State, pursuant to the Education, Clean Water, and Parks Bond Act of 1993, being Chapter 542 of the 1993 Sessions Laws, as amended (the "Act"), has authorized the issuance by the St~te of Clean Water Bo~ds for the purpose of making loans to local government umts for the p~rpose ?f paymg all or a portion of the cost of water supply systems, water conservation proJects, wastewater collection systems and wastewater treatment works; and WHEREAS the Borrower has identified certain capital improvements that are eligible for fina~cing under the State Clean Water Bond Loan Program (hereinafter rlefined); and I WHEREAS the Borrower deems it advisable and in the best interest of the Borrower to fi~ance all or a portion of the cost of such capital improvements through the State Clean Water Bond Loan Program as hereinafter provided; and WHEREAS, pursuant to the Act, the Borrower has made application to the Department of Environment, Health, and Natur~l Reso';lrces for ~p~roval of a clean water bond loan and has received a loan commItment m the prmclpal amount set forth in the Schedule of Terms to finance such capital improvements; and WHEREAS, the Commission (hereinafter defined) has approved the loan in accordance with Section 10 ofthe Act; and WHEREAS, the Borrower desires to borrow such amount from the State pursuant to the State Clean Water Bond Loan Program in accordance with the terms and provisions set forth in this Agreement; NOW, THEREFORE, the parties hereto agree as follows: . ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION SECTION 1.01. Defined Terms. All capitalized terms used in this Agreement and not otherwise defined shall have the following meanings: (a) "Commission" means the Local Government Commission of North Carolina, including the Executive Committee thereof, established as a division of the Department of the State Treasurer pursuant to Chapter 159 of the General Statutes of North Carolina. (b) "Costs of the Project" means all costs and allowances which the Borrower may properly payor accrue for the Project under generally accepted accounting hrinciples as a capital cost, including, but not limited to, engineering, inspection, egal and financial fees and costs, interest on the Note during construction of the Project, and all other expenditures incidental and necessary or convenient thereto. (c) "Current Expenses" means all reasonable or necessary current expenses of the System, including, without limitation, all ordinary and usual operating, maintenance and capital outlay expenses and all administrative, engineering, architectural and legal expenses relating to such operating, maintenance and capital outlay expenses. (d) "Designated Non-Tax Revenues" means any of the revenues sources set forth in the Schedule of Terms to be pledged as security for repayment of the Loan, which revenues do not and will not constitute a pledge of the Borrower's taxing . power. (e) "Discretionary Revenues" means any revenue source set forth in the Schedule of Terms to be used by the Borrower to pay Current Expenses and any payments due and payable under this Agreement and the Note, including revenues derived from the taxing power of the Borrower; provided, however, that such funds shall only be available on an annual basis at the sole discretion of the Borrower and shall not be subject to any pledge, lien or charge created by this Agreement or the Note. (f) "Event of Default" means any of the events specified in Section 7.01. (g) "Holder" means the State and any registered assignee of the State or any future Holder of the Note. - -- 209 (h) "Loan" means the advance of funds from the State to the Borrower described in Section 2.0!. (i) "Loan Offer" means the Offer and Acceptance for the State Clean Water Bond Loan between the State and the Borrower. G) "Net Revenues" means, for any particular period, the amount of Revenues in excess of Current Expenses. (k) "Note" means the promissory note of the Borrower payable to the order of the State substantially in the form of Exhibit A hereto and evidencing the obligation of the Borrower to repay the Loan pursuant to the terms of this Agreement. . (1) "Project" means the undertaking by the Borrower for the acquisition, reconstruction, improvement, enlargement, betterment or extension of the System to be financed pursuant to this Agreement as described in the Schedule of Terms. (m) "Resolution" means the resolution adopted by the governing body of the Borrower authorizing the proposed borrowing under the terms of this Agreement and the execution and delivery of this Agreement and the Note. (n) "Revenues" means all income, rents, rates, fees, charges, receipts, profits and other moneys received by the Borrower in any period directly or indirectly resulting from the ownership and operation of, use of, or services or facilities furnished or to be furnished by, the System, including, without limiting the generality of the foregoing, all rights to receive the same, whether in the form of accounts receivable, contract rights or other rights, and the proceeds of such rights whether now owned or hereafter coming into existence, but shall not include customers' deposits or any other deposits subject to refund until such deposits have become the property of the Borrower. (0) "Schedule of Terms" means the schedule of terms attached to this Agreement and made a part hereof setting forth certain terms and provisions relating to the Loan as more fully provided herein. (P) "State Clean Water Bond Loan Program" means the loan program established by the State pursuant to the Act whereby the State makes loans to local government units form the proceeds of its Clean Water Bonds to finance all or a portion of eligible clean water projects. (q) "State Treasurer" means the Treasurer of the State of North Carolina, any Deputy Treasurer and any assistant duly designated by the Treasurer or any . Deputy Treasurer to perform the duties of the State Treasurer under this Agreement. (r) "System" means all ofthe Borrower's water and sewer system facilities and equipment now or hereafter existing, including all renewals, replacements, additions, extensions, expansions and improvements relating thereto. Section 1.02. Rl,1les of Construction. Words of the masculine gender shall be deemed and construed to include the correlative words of the feminine and neuter genders. Unless otherwise indicated, words used herein shall include the plural as well as the singular number. References herein to particular articles or sections are references to the articles and sections of this Agreement unless some other reference is indicated. References herein to particular sections or chapters of the General Statutes of North Carolina or to specific legislative acts are intended to be references to such sections, chapters or acts as they may have been amended and as they may be amended from time to time by the General Assembly of North Carolina, or any successor statute. ARTICLE II THE LOAN AND SECURITY FOR THE LOAN Section 2.01. Amount and Term of the Loan. Subject to the terms and conditions hereof and the terms of the Note, the State hereby agrees to lend to the Borrower, and the Borrower hereby agrees to borrow from the State, a principal sum not exceeding the principal amount of the Loan set forth in the Schedule of Terms, and the Borrower shall deliver the Note to the State -as evidence of its . obligations hereunder. This Agreement shall terminate immediately at such time as the outstanding principal sum, together with all accrued interest thereon is repaid ~~ ' The principal amount of the Note shall be paid (subject to the right of prepayment as described in Section 2.05) in twenty (20) annual installments on May 1 in each year, beginning May 1, 1997. all as more fully set forth in the Note. In the event that the Borrower requisitions Loan proceeds from the State in an amount less than the principal amount of the Loan set forth in the Schedule of Terms, the principal installments will be reduced in a corresponding amount in the inverse order of maturity of such principal installments unless otherwise approved in writing by the State Treasurer. Section 2.02. Interest Rate. The Note shall bear interest on the unpaid principal amount disbursed from time to time under this Agreement until paid in full, such interest payable at the times specified in the Note at the rate per annum set forth in the Schedule of Terms. Interest shall be computed on the basis of a 360- day year consisting of twelve (12) 30-day months. -______.~_____.. _~_~________ "~~"___~~~_______~~"__.___.~.__?_____..._..~__~___c____..__,_ .-~-- , ..,,--- 210 Section 2.03. Disbursement and Use of Proceeds. The proceeds of the Loan shall be disbursed by the State to the Borrower from time to time based upon requisitions submitted by the Borrower to the State in the manner and pursuant to rules established by the State for the State Clean Water Bond Loan Program. The proceeds of the Loan shall be used only for payment of the Costs of the Project ~r to reimburse the Borrower for moneys heretofore expended to pay Costs of the ProJect, provided that no reimbursement shall be made for any Costs of the Project paid by the Borrower prior to July 24, 1993 (the date ofratification of the Act). Section 2.04. Pavment and Endorsement. The Note shall be issued in a form payable to the State. and the State shall be deemed and regarded as the absolute owner thereof for all p~oses and payment of or on account of the principal of and interest on the Note sha be made only to or upon the order of the State, whether or . not any transfer thereof shall be made, until the Borrower shall have received from the transferor written notice of such transfer, including the name and address of the transferee. All such payments shall be valid and effectual to satisfy and discharge the liability upon the Note to the extent of the sums so paid whether or not any transfer thereof shall be made, until the Borrower shall have received written notice of such transfer, including the name and address of the transferee. Each transferor shall give, within ten (10) days after any disposition of the Note, written notice to the Borrower of such disposition. Thereafter, the transferee shall be deemed the Holder of the Note and shall succeed to the rights and be bound by the obligations of the Holder of the Note hereunder. All payments and prepayments made under this Agreement, including payments on the Note, so long as the State is the Holder, shall be made to the State on the date of payment at the office of the Department of Environment, Health, and Natural Resources, Division of Environmental Management, Construction Grants and Loans Section, Post Office Box 29535, Raleigh, North Carolina, 27626-0535 or at such other address as the State may designate. The State shall endorse on the Note an appropriate notation evidencing any prepayment on account of principal thereof and interest thereon; provided, however, that failure of the State to make such notation shall not relieve the Borrower of its obligations hereunder and under the Note. Payments to any registered assignee of the Note shall be payable at the place specified by such assignee. At such time as the Note shall have been paid in full, together with accrued interest thereon, the Holder shall cancel the Note and return it to the Borrower. Section 2.05. Ontional Prenavment. At all times that the State is the Holder of the Note, with the prior written consent of the State Treasurer, the Borrower shall have the right, at any time prior to the maturity date of the Note, to prepay the Note in whole or in part, together with an prepayment premium required by the State Treasurer in accordance with this Section, plus accrued interest to the date of prepayment on the principal amount to be prepaid. Any partial prepayment shall be . applied to unpaid installments of principal in the inverse order of maturity of such installments. Upon prepayment of all or any portion of the principal amount of the Note and interest accrued thereon to the date of prepayment, interest with respect to such principal amount prepaid shall cease to accrue. In connection with any such prepayment, the Borrower shall be required to pay to the State an amount substantially equal to the interest and redemption premium due on bonds issued by the State for the purpose of providing funds for the Loan (including a pro rata portion of any bonds issued to fund capitalized interest or costs of issuance with respect to such bonds) through the date of payment or redemption and any other costs that may be associated with the payment or redemption of such bonds, such prepayment premium to be conclusively determined by the State Treasurer. Section 2.06. Securitv for Revavment of Loan. Payment of the Note, together with interest thereon, shall be secured by the Net Revenues, and the Borrower hereby pledges the Net Revenues for the payment of the principal of and interest on the Note; provided, however, that Net Revenues not required for the payment of the principal of or interest on the Note, may, if no Event of Default shall have occurred and be continuing, be used for any lawful purpose as the Borrower may from time to time direct, free and clear of the lien created by this Section. Payment of the Note, together with interest thereon, shall also be secured by the Designated Non- Tax Revenues, if and to the extent set forth on the Schedule of Terms, and the Borrower hereby pledges and agrees to apply any such Designated Non-Tax Revenues for the payment of the principal of and interest on the Note; provided, however, that any Designated Non- Tax Revenues not required for the payment of the principal of or interest on the Note, may, if no Event of Default shall have occurred and be continuing, be used for any lawful purpose as the Borrower . may from time to time direct, free and clear of the lien created by this Section. The Net Revenues, the Designated Non-Tax Revenues and any other moneys or securities pledged by the Borrower for payment of the Note shall be subject to the lien of this pledge upon execution and delivery of the Note without any physical delivery thereof or further act, and the lien of the pledge shall be valid and binding as against all parties having claims of any kind in tort, contract or otherwise against the Borrower irrespective of whether such parties have notice thereof. The lien of the pledge shall have priority over all other liens and charges against such Net Revenues and Designated Non-Tax Revenues, except as otherwise provided in this Section and in Section 2.08. The principal of and interest on the Note shall not be secured by the general funds of .the Borrower nor shall the Note constitute a legal or equitable pledge, char,ge, hen or encumbrance upon any of the property or upon any of the income, receIpts or revenues of the Borrower, except the Net Revenues, the Designated Non- -- --- ?11 .='II.._-~ Tax Revenues and any other moneys and securities pledged under this Agreement, the Note or the Resolution, including any income, receipt or revenues subject to the provisions of Section 2.07. Neither the credit nor the taxing power of the Borrower are pledged for the payment of the principal of or interest on the Note, and the State shall not have the right to compel the exercise of the taxing power by the State of North Carolina or the Borrower of the forfeiture of any of their property in connection with any default with respect to the Note or this Agreement. In addition to the Net Revenues and the Designated Non-Tax Revenues, the Loan may be payable from any Discretionary Funds set forth in the Schedule of Terms or any other available funds as provided in Section 2.09. Section 2.07. Intercent. Upon failure of the Borrower to make any scheduled payment on the Note, the State may withhold from the Borrower any State shared revenues that would otherwise have been distributed to the Borrower in accordance . with North Carolina law in amount sufficient to cure any deficiency in such payments due and payable under the Note and apply such funds to pay all sums then due and payable on the Note; provided, however, that such funds shall not be withheld if (a) prior to the execution of this Agreement and the Note, such funds have been pledged to secure special obligation bonds or other obligations of the Borrower or (b) after execution of this Agreement and the Note, such funds are legally pledged to secure special obligation bonds or other obligations of the Borrower. At any time after the execution and delivery of this Agreement and the Note until such time as the Note, together with interest thereon, is paid in full, the Borrower shall not tedge any State funds to secure special obligation bonds or any other obligations 0 the Borrower without the prior written consent of the State Treasurer as provided in Section 10(1) of the Act. Section 2.08. Other Oblie-ations. Subject to the conditions hereinafter provided in this Section, the Borrower may issue additional bonds, notes or other obligations secured by and payable on a parity with the Note with respect to the pledge of Net Revenues or with respect to the pledge of Designated Non-Tax Revenues; provided, however, that, if an Event of Default specified in Section 6.01(a), (c) or (d) shall have occurred and be continuing, the Borrower shall not issue additional notes or other obligations payable on a parity basis with the Note and secured on a parity basis with the Note until such time as the Event of Default is no longer continuing. In addition, the Note is payable on a parity with any bonds, notes or other obligations heretofore issued or incurred by the Borrower and secured by or payable from the Net Revenues or the Designated Non-Tax Revenues. The Net Revenues and Designated Non-Tax Revenues shall be applied to the payment of the principal of and interest on the Note in any manner consistent with the provisions of this Section and the applicable provisions of North Carolina law and in accordance with the provisions of any existing order, resolution, indenture or other agreement authorizing and securing such bonds, notes or other obligations. . The Borrower shall not incur or permit to exist any indebtedness for borrowed money secured by the net Revenues or the Designated Non-Tax Revenues except as authorized pursuant to this Section. Section 2.09. ADnlication of Available Funds. In addition to Section 2.06, the Note is payable from the Discretionary Revenues, if and to the extent set forth in the Schedule of Terms, appropriated by the Borrower on an annual basis and any other available funds of the Borrower not otherwise restricted as to use by law; provided, however, that no provision of this Agreement or the Note shall be construed or interpreted as creating a pledge of the faith and credit or the taxing power of the Borrower within the meaning of any constitutional debt limitation. Except as provided in Section 2.06 and Section 2.07, the Borrower shall not directly, indirectly or contingently be obligated to make any payments beyond those appropriated in the sole discretion of the Borrower for any fiscal year of the Borrower, and the taxing power of the Borrower is not and may not be pledged directly, indirectly or contingently to make any payments due or to become due under this Agreement or the Note. ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE BORROWER . Section 3.01. Renresentations and Warranties of the Borrower. In order to mduce the State to enter into this Agreement and to make the. Loan to the Borrower, the Borrower represents and warrants to the State as follows: (a) . The Borrower is duly organized and validly existing as a municipal corporatIon or a body corporate and politic and political subdivision of the State under the Consti~ution ~nd laws of the State and has full power and authority to . execute and deliver thIS Agreement and the Note, to perform its obligations hereunder and thereunder. . (b) This Agreement and the Note have been duly authorized, executed and delivered by the Bor~ower and are .legal, .valid an~ binding obligations of the Borrower enforceabl~ ~ accordance WIth thell" re~pectIve terms; provided, however, that t~e ~nforceability. thereof may b~ .subJect to bankruptcy, insolvency, reorgamzatIon, morat~rlum. a~d. ot~er sl.mil~r laws affecting creditors' rights generally and the exerCIse of JudICIal discretIOn m appropriate cases. (c) The execution and delivery of this Agreement and the Note and the perfor~ance by t~e Borrower of its obligations hereunder and thereunder does not and will not conflict with, or result in the violation or breach of or default under (i) any p~ovision of Nor~h Carolina la~, including any charter of the Borrower or the provlsl~ns of any ordinance, resolution or rule of the Borrower, (ii) any order, rule or regulatIon of any court or other governmental agency having jurisdiction over the ~orrower, or (iii~ any indenture,. note, loan agree~ent or other agreement or mstrume~t to whIch the Borrower IS a party or by which the Borrower or any of its property 18 bound. -- ~-~-----~'~--------~-------.-----~._.~'~'--.~--'~-'-"~ - _....._...--~.-,--..- ._~- ')1 ? L ...c... ~ (d) The execution and delivery of this Agreement and the Note does not and will not require registration with, or the consent or approval of, or any other action by, any federal, state or other governmental authority or regulatory body, except for such approvals and may have already been obtained by the Borrower. (e) There is no litigation, investigation or proceeding of any nature pending or, to the knowledge of the Borrower, threatened (i) which might result in any material adverse change in the financial condition or operations the System, (ii) challenging or questioning the validity of this Agreement or the Note or any proceedings taken by the Borrower in connection with the adoption of the Resolution and the execution and delivery of this Agreement and the Note, or (iii) wherein an unfavorable decision, ruling or finding would in any way materially and adversely affect the validity or enforceability of the Resolution, this Agreement or the Note (or of any other instrument required or anticipated for use in consummating the transactions . contemplated thereby). (f) Except for the Note, the Borrower has no outstanding bonds, notes or other obligations secured by the Net Revenues or the Designated Non-Tax Revenues and has not authorized the issuance of any bonds, notes or other obligations to be secured by the Net Revenues or the Designated Non-Tax Revenues, except for such bonds, notes or other obligations which are payable on a parity with or subordinate to the Note with respect to the pledge of Net Revenues or Designated Non-Tax Revenues. (g) Prior to the execution and delivery of this Agreement and the Note, the Borrower has complied with the provisions of any existing order, resolution, indenture or other agreement authorizing and securing bonds, notes or other obligations of the Borrower relating to the issuance or incurrence of additional indebtedness thereunder. (h) The Project will be owned and operated by the Borrower solely for governmental purposes of the Borrower and will be used solely for the purpose of serving the public in general, except to the extent otherwise approved by the State Treasurer in writing. ARTICLE IV COVENANTS OF THE BORROWER Section 4.01. Use of Loan Proceeds. The Borrower shall use the proceeds of the Loan only in accordance with the provisions of Section 2.03 to pay the Costs of the Project. Section 4.02. Rate Covenant. The Borrower shall fix, charge and collect rates, . fees, rentals and charges for the use of and for the services furnished by the System, and shall from time to time and as often as it shall appear necessary, revise such rates, fees, rentals and charges, in order that the Revenues shall be sufficient, together with (1) any Designated Non-Tax Revenues, (2) any Discretionary Revenues and (3) any other available funds, at all times (a) to pay the Current Expenses, (b) to meet its obligations under this Agreement and the Note and (c) to pay any and all other amounts payable from or constituting a charge and lien upon the Revenues or Net Revenues or the Designated Non-Tax Revenues on a parity basis with amounts due and payable under this Agreement and the Note. Section 4.03. Maintenance of S~stem. The Borrower shall, in accordance with regular utilities practice, operate the System in an efficient and business like manner and at reasonable cost, and maintain the System in good repair, working order and condition, making all necessary and proper repairs, renewals, replacements, additions, betterments, equippings and furnishings to the System. Section 4.04. Access to Records. At all reasonable times, and as often as the Holder may reasonably request, permit any authorized representative designated by the Holder to have access to the financial records of the Borrower and other records relating to the operation of the System. Section 4.05. Insurance. To the extent available at reasonable cost with reasonable insurers, the Borrower shall keep, or cause to be kept, the System and the operation thereof insured, with policies payable to the Borrower against risks of direct physical loss, damage to or destruction of such properties or any part thereof, and against accidents, casualties, or negligence including liability insurance and employer's liability insurance at least to the extent that similar insurance is usually carried by municipalities operating like properties. Section 4.06. Protection of Securitv. The Borrower shall at all times to the . extent permitted by law, defend, preserve and protect the pledge of the Net Revenues and Designated Non-Tax Revenues under this Agreement, the Note and the Resolution and all the rights of the Holders of the Note under this Agreement, the Note and Resolution against all claims and demands of all persons whomsoever. Section 4.07 Takin~ Anv Further Action Necessarv. At any and all times, insofar as it may be authorized so to do by law, the Borrower shall adopt, pass, make, do. execute, acknowledge and deliver all and every such further resolutions, acts, deeds, conveyances, assignments, recordings. filings, transfers and assurances as may be necessary or desirable for the better assuring, conveying, granting, assigning and confirming all and singular the rights to the Net Revenues and the Designated Non-Tax Revenues pledged under this Agreement, the Note or the Resolution or assigned to payment of the Note, or intended so to be, or which the Borrower may hereafter become bound to pledge or assign. -- - -- - ?13 Section 4.08. Comnliance with Loan Offer. To the extent not otherwise provided for in this Agreement, the Borrower shall comply with the conditions and assurances set forth in the Loan Offer. Section 4.09. Sale and Encumbrance of Assets of System. The Borrower shall not sell, transfer, conveyor lease (whether in a single transaction or a series of transactions) or encumber all or any substantial portion of the properties or assets comprising the System without the prior written consent of the State Treasurer, such consent to be based upon the effect or possible effect of the such sale, transfer, conveyance, lease or encumbrance on the ability of the Borrower to meet its obligations under this Agreement and on such other factors as the State Treasurer deems appropriate. Section 4.10. Exnenditure of Loan Proceeds. The Borrower will expend all requisitioned proceeds of the Loan to pay eligible costs of the Project within three . (3) banking days after the receipt of such proceeds of the Loan from the State. ARTICLE V CONDITIONS PRECEDENT TO ADVANCEMENT OF LOAN PROCEEDS Section 5.01. Conditions. The obligation of the State to disburse the proceeds of the Loan to the Borrower as contemplated hereunder is subject to the condition precedent that the State Treasurer shall have received on or before such disbursement all of the following in form and substance satisfactory to the State Treasurer: (a) the executed Note from the Borrower payable to the order of the State, substantially in the form of Exhibit A hereto; (b) a certified copy of the Resolution of the Borrower au~horizing t~e proposed borrowing under the terms of this Agreement and the executIOn and delivery of the Loan Offer, this Agreement and the Note; (c) a certified copy of the Commission's resolution authorizing the borrowing contemplated by this Agreement and the Note; and (d) such other documents and opinions as the State Treasurer may reasonably request. ARTICLE VI DEFAULT AND REMEDIES . Section 6.01. Events and Default. The occurrence of any of the following events shall constitute an Event of Default under this Agreement: (a) failure by the Borrower to pay the principal of or interest on the Note when due and payable; (b) failure by the Borrower to perform any other term, covenant or agreement contained in this Agreement, the Note or the Resolution and the continuance of such default for sixty (60) days after written notice thereof shall have been given to the Borrower by the State; (c) a court having jurisdiction in the premises shall enter a decree or order for relief in respect of the Borrower in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Borrower or for any substantial part of its property, or ordering the winding- up or liquidation of its affairs and such decree or order shall remain unstayed and in effect for a period of sixty (60) days; and (d) The Borrower shall commence a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, shall consent to the entry of an order for relief in an involuntary case under any such law, or shall consent to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Borrower or for any substantial part of its property, or shall make any general assignment for the benefit of creditors, or shall fail generally to pay its debts as they become due, or shall take any action in furtherance of any of the foregoing. . Section 6.02. Remedies Dnon Default. If any Event of Default shall occur and be continuing, the Holder may, by written notice to the Borrower, declare this Agreement and the Note in default and, thereafter, exercise any and all remedies available at law or in equity to enforce its rights under this Agreement and the Note, including the acceleration of the principal amount of the Note in accordance with terms thereof; provided, however, that written notice declaring this Agreement in default shall not be required in the case of the occurrence of any event described in clauses (c) and (d) above. ARTICLE VII MISCELLANEOUS Section 7.01. Other Costs. Exnenses and Taxes. To the extent permitted by law, the Borrower agrees to pay on demand the reasonable costs and expenses, including reasonable attorney's fees and expenses, if any, incurred by the State or any other Holder in connection with the enforcement of this Agreement or the Note. The payment of any such costs by the Borrower pursuant to this Section are payable solely from Net Revenues. - ------- .~----,--_._----_._- ----. .---_....-.._--.,~."- - ~--...-.---.----~._~-"-- .-.- ,--......----.- 214 Section 7.02 Severability. The invalidity of anyone or more covenants, phrases, clauses, sentences or paragraphs of this Agreement shall not affect the remaining portions of this Agreement, or any part thereof, and in case of any such invalidity, this Agreement shall be construed as if such invalid covenants, phrases, clauses, sentences or paragraphs had not been inserted. Section 7.03 Headines. Article and Section headings used in this Agreement are for convenience only and shall not affect the construction of this Agreement. Section 7.04 Waivers. No delay or omission of the Holder to exercise any right or power hereunder or under the Note or otherwise shall impair such right or power or be construed to be a waiver of any default or any acquiescence therein, and any single or partial exercise of any such right or power shall not preclude other or further exercise thereof or the exercise of any other right. No waiver whatsoever with respect to any provision of this Agreement or the Note shall be valid unless in . writing signed by the Holder and in each case only to the extent in such writing specifically set forth. All remedies herein or by law afforded shall be cumulative and shall be available to the Holder until the Holder has been paid in full in lawful money. Section 7.05 No Personal Liabilitv. No member of the governing body of the Borrower shall be individually or personally liable for the payment of the principal of or interest on the Note. Section 7.06. Modification of A/!l"eement or Note. This Agreement and the Note shall not be modified or amended except in writing signed by the Borrower and the Holder. Section 7.07. Governing Law. All terms, obligations and provisions of this Agreement and of the Note are to be determined and governed by the laws of the State of North Carolina. Section 7.08. Notice. Any notice herein required or permitted to be given shall be deemed given (except as otherwise required by this Agreement), when given in writing and deposited in the United States mail, postage prepaid, or by overnight delivery, charges prepaid, addressed as follows: To the State: State Treasurer's Office c/o Local Government Commission 325 N. Salisbury Street Raleigh, North Carolina 27603-1385 Attention: Secretary . To the Borrower: To the person and at the address set forth in the Schedule of Terms. Section 7.09. Counternarts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts all of which together shall constitute one agreement. Section 7.10. Successors. This Agreement shall be binding upon and inure to the benefit of the Borrower, the State, and their respective successors and assigns, including any successors, whether direct or indirect, by purchase, merger, consolidation, or otherwise, to all or substantially all of the business and/or assets of the Borrower or the State, and including a successor to the State.resulting from the sale of the deposits or assets of the branch of the State which originated the Loan. IN WITNESS WHEREOF, the parties hereto by authority duly given have by their duly authorized representatives executed this Agreement as of the date first above written. COUNTY OF HARNETT Borrower ~Seal] By: #j:-/~ i / . ~ L . H. L. Sorre , Jr. Title: Chairman, Board of Conunissioners ATTEST: ~Cl.{1 i 13io..)ltNV7. d Ka SQ Blanchard Title: Clerk to the Board STATE OF NORTH CAROLINA By: Harlan E. Boyles State Treasurer [SEAL] 1=\v' ------- 21_5 EXHIBIT A PROMISSORY NOTE County of Harnett (the "Borrower"), for value received hereby promises to p.ay, but solely from the sources hereinafter referred to, to the State of North Carolina (the "State"), or registered assigns, the principal amount of Three Million :qollars ($3.000.000), or so much as shall have been disbursed to the Borrower from tIme to time, together with interest on the unpaid principal balance at the interest rate set forth below until paid in full. The principal of this Note shall be payable on May 1 in the years and amounts set forth on Schedule 1 attached hereto and made a part hereof; provided, however, that no principal installment shall at any time exceed . the principal amount outstanding and unpaid. In the event the amount of the funds disbursed by the State to the Borrower is less than the principal amount of this Note set forth above, the principal installments set forth on Schedule 1 will be reduced in corresponding amount in the inverse order of maturity of such principal installments unless otherwise approved in writing by the State Treasurer. Interest on the unpaid principal amount balance shall accrue and be payable semiannually on each May 1 and November 1, beginning May 1, 1995, at the rate of 5.85% per annum, computed on the basis of a 360-day year consisting of twelve 30- thirty day months. All payments shall be applied first to interest accrued to the date of payment and then to principal. Principal and interest on this Note shall be pa~able to the ~tate,. or upon assignment of this Note, to the person or entity appearmg on the regIstratIon books of the Borrower as the Holder of this Note at the location specified by the Holder for the payment hereof. Initially, principal and interest shall be payable to the State at the Office of the Department of Environment, Health, and Natural Resour~es, Division of Environmental Management, Construction Grants and Loans SectIOn, Post Office Box 29535, Raleigh, North Carolina, 27626-0535. Pr~cipal of and interest on this Note shall be payable in any lawful money of the Umted States of America. This Note may be sold, transferred or otherwise disposed of, or a participation herein may be granted without the consent of the Borrower, but the Borrower may treat the State as the Holder hereof, for all purposes, until notice of transfer shall have been filed with the Borrower signed by the State and in form satisfactory to the Borrower. At the principal office of the Finance Officer of .the Borrower, the Holder hereof may register the transfer and assi~ment of t~is Note. The S~ate, B;nd upon assignment of this Note, the person or entIty appearmg on the regxstratlOn . books of the Borrower shall be recognized as the absolute and sole owner hereof. This Note constitutes a special obligation of the Borrower secured solely by the Net Revenues and any Designated Non-Tax Revenues set forth in the Agreement (hereinafter mentioned) which are hereby pledged for the payment thereof, all as more fully described and to the extent provided in the Resolution (hereinafter mentioned) and the Agreement. The pledge of the Net Revenues and the Designated Non-Tax Revenues for the payment of this Note constitutes a charge and lien upon the Net Revenues and Designated Non-Tax Revenues. The principal of and interest on this Note shall not be secured by the general funds of the Borrower nor shall this Note constitute a legal or equitable pledge, charge, lien or encumbrance upon any of the property or upon any of the income, receipt, or revenues of the Borrower, except the Net Revenues, the Designated Non-Tax Revenues and any other moneys and securities pledged under the Agreement and the Resolution. Neither the credit nor the taxing power of the State of North Carolina or of the Borrower are pledged for the payment of the principal of or interest on this Note, and no Holder of this Note shall have the right to compel the exercise of the taxing power of the State of North Carolina or of the Borrower or the forfeiture of any of their property in connection with any default with respect to this Note. Upon failure of the Borrower to make any scheduled payment on the Note, the State may withhold from the Borrower any State shared revenues that would otherwise have been distributed to the Borrower in accordance with North Carolina law in amount sufficient to cure any deficiency in such payments due and payable under this Note and apply such funds to pay all sums then due and payable on this Note; provided, however, that such funds shall not be withheld if (a) prior to the execution of the Agreement and this note, such funds have beeI\ pledged to secure special obligation bonds or other obligations of the Borrower or (b) after execution of the Agreement and this Note, such funds are legally pledged to secure special obligation bonds or other obligations of the Borrower. . This Note is executed and delivered under the authority of and in full compliance with the Constitution and laws of the State of North Carolina, including particularly Section 10 of Chapter 542 of the 1993 Sessions Laws, as amended. and under and pursuant to a resolution adopted by the Borrower (the "Resolution") and a Loan Agreement, dated 10/16 , 1992. (the "Agreement"), by and between the Borrower and the State, for the purpose of financing the Costs of the Project. All terms capitalized herein and not otherwise defined shall have the meanings given such terms in the Agreement. If any Event of Default specified in the Agreement shall occur and be continuing, the registered Holder of this Note may be written notice to the Borrower declare this Note (together with accrued interest thereon) to be, and this Note shall thereupon become, immediately due and payable; provided, however, that in the case of the occurrence of any event described in clauses (c) or (d) of Section 6.01 of the Agreement, this Note shall become due and payable forthwith without the requirement of any such written notice. .---~-~~-~- ~~-_._,-~~_._~ ..~- ~.._-----~-- ?16 If the Holder hereof is required to undertake legal action to enforce its rights hereunder as a result of an Event of Default by the Borrower, the Borrower, to the extent permitted by law, shall be obligated to pay the actual and reasonable attorneys' fees of the registered holder hereof associated therewith, but not in excess of fifteen percent (15%) of the outstanding principal balance of this Note as of the date of the Event of Default. The payments of such fees are secured solely by the Net Revenues and the Designated Non-Tax Revenues. At all times that the State is the Holder of this Note, with the prior written consent of the State Treasurer, the Borrower shall have the right, at any time prior to the maturity date of the Note, to prepay the Note in whole or in part, together with any prepayment premium required by the State Treasurer as provided below, plus accrued interest to the date of prepayment on the principal amount to be . prepaid. Any partial prepayment shall be applied to unpaid installments of principal in the inverse order of maturity of such installments. In connection with any such prepayment, the Borrower shall be required to pay any interest and redemption premium due on bonds issued by the State for the purpose of providing funds for the Loan (including a pro rata portion of any bonds issued to fund capitalized interest or costs of issuance with respect to such bonds) through the date of payment or redemption and any other costs that may be associated with the payment or redemption of such bonds, such prepayment premiu~ to be conclusively determined by the State Treasurer. The Resolution and the Agreement contain, among other things, provisions for the issuance or incurrence of additional bonds, notes or other obligations of the Borrower secured by the Net Revenues or the Designated Non-Tax Revenues on a parity both with this Note and with any bonds, notes or other obligations of the Borrower which may have heretofore been issued or incurred by the Borrower and secured by Net Revenues or the Designated Non-Tax Revenues, and reference is hereby made to the Resolution and the Agreement, copies of which are on file with the Borrower, for the foregoing and the other provisions thereof which pertain to this Note and to which the Holder hereof, by its acceptance hereof, hereby assents. It is hereby certified and recited that all conditions, acts and things required by law to exist, to have happened and to have been performed precedent to and in the issuance of this Note exist, have happened and have been performed in regular and due time, form and manner and that the issuance of this Note does not exceed any debt or other limit prescribed by the Constitution and laws of the State of North Carolina. IN WITNESS WHEREOF, the Borrower has caused this Note to be executed in its name by its duly authorized representatives as of this 16th day of October . 1992.. . COUNTY OF HARNETT Borrower [SEAL] By: 7f/ hr/~I /, ;, ~ H. L. Sorrel' Jr. Title: Chairman, Board of Commissioners ATTEST: K,a11 l D\(Hv1tCl~ Kay 5;.\ Blanchard Title: Clerk to the Board Schedule 1 Maturitv Schedule Due Principal (Mav 1\ Amount 1997 150,000.00 1998 150,000.00 . 1999 150,000.00 2000 150,000.00 2001 150,000.00 2002 150,000.00 2003 150,000.00 2004 150,000.00 2005 150,000.00 2006 150,000.00 2007 150,000.00 2008 150,000.00 2009 150,000.00 2010 150,000.00 2011 150,000.00 2012 150,000.00 2013 150,000.00 2014 150,000.00 2015 150,000.00 2016 150,000.00 ?17 >!...."' _J:._ . September 29. 1995 County of Harnett Preliminary Schedule For State Bond Loan Prepared by the Local Government Commission For Planning Purposes Only . Amount: $3,000,000 Tenn: 20 YEARS Interest Rate: 5.850% Project Number: DEH-0208 Fiscal Outstanding Interest I Nov. I Interest I May I Interest May I Principal Total Annual Year I Balance I Rate Payment Payment I Payment I Payment I 1994-95 $ 3,000,000.00 5.850% $ 0.00 $ ~~7;750~OO! $ 0.00 $ 87.750.00 1995-96 $ 3,000,000.00 5.850% : ~:~i~~~~i!!~: ~~:~E ~ 0.00 $ 175,500.00 1996-97 $ 3,000,000.00 5.850% 150,000.00 $ 325,500.00 1997-98 $ 2,850,000.00 5.850% $ 83,362.50 $ 83,362.50 $ 150,000.00 $ 316,725.00 1998-99 $ 2,700,000.00 5.850% $ 78,975.00 $ 78,975.00 $ 150,000.00 $ 307,950.00 1999-00 S 2,550,000.00 5.850% $ 74,587.50 S 74,587.50 S 150,000.00 $ 299,175.00 2000-0 I $ 2,400,000.00 5.850% $ 70,200.00 $ 70,200.00 S 150,000.00 $ 290,400.00 2001-02 $ 2,250,000.00 5.850% $ 65,812.50 $ 65,812.50 $ 150,000.00 $ 281,625.00 2002-03 $ 2,100,000.00 5.850% $ 61,425.00 $ 61,425.00 $ 150,000.00 $ 272,850.00 2003-04 $ 1.950,000.00 5.850% $ 57,037.50 $ 57,037.50 $ 150,000.00 $ 264,075.00 2004-05 $ 1,800,000.00 5.850% $ 52,650.00 $ 52,650.00 $ 150,000.00 $ 255,300.00 2005-06 $ 1,650,000.00 5.850% $ 48,262.50 $ 48,262.50 $ 150.000.00 $ 246,525.00 2006-07 $ 1,500,000.00 5.850% $ 43,875.00 $ 43,875.00 $ 150,000.00 $ 237,750.00 2007-08 $ 1,350,000.00 5.850% $ 39,487.50 $ 39,487.50 $ 150,000.00 $ 228,975.00 2008-09 $ 1,200,000.00 5.850% $ 35,100.00 $ 35,100.00 $ 150,000.00 $ 220,200.00 2009-10 $ 1,050,000.00 5.850% $ 30,712.50 $ 30,712.50 $ 150,000.00 $ 211 ,425 .00 2010-11 $ 900,000.00 5.850% $ 26,325.00 $ 26,325.00 $ 150,000.00 $ 202,650.00 . 2011-12 $ 750,000.00 5.850% $ 21,937.50 $ 21,937.50 $ 150,000.00 $ 193,875.00 2012-13 $ 600,000.00 5.850% $ 17,550.00 $ 17,550.00 $ 150,000.00 $ 185,100.00 2013-14 S 450,000.00 5.850% $ 13,162.50 $ 13,162.50 S 150,000.00 $ 176,325.00 2014-15 $ 300,000.00 5.850% $ 8,775.00 $ 8,775.00 $ 150,000.00 $ 167,550.00 2015-16 $ 150,000.00 5.850% $ 4,387.50 $ 4,387.50 $ 150,000.00 $ 158,775.00 TOTALS $ 1,009,125.00 $ 1,096,875.00 $ 3,000,000.00 $ 5.106,000.00 - ..,." .. -'.,-~. ..._~. - - - NOTE: The interest figures that are highlighted above are calculated assuming that all funds have been drawn down as of May I, 1995. Until our office receives actual draw down figures from the Division ofEnvironmentaJ Management, we must make this assumption. Until such time as you begin to draw down funds, however, no interest payments will be due. When you begin to draw down funds, the Division of Environmental Management will bill you for the correct interest payment. Our schedule is meant to be for planning purposes only as it reflects the maximum amount that you would have to pay. BOND LOAN SCHEI)ULE OF TERMS Name of Borrower: County of Harnett Address of Borrower: P. o. Box 759 Lillington, North Carolina 27546 . Attention: Mr. Neil Emory, County Manager Description of Project: Water Treatment Expansion Principal Amount of Loan: $ 3,000,000 Interest Rate: 5.85 % per annum Designated Non-Tax Revenues (if any):