030708ss 687
HARNETT COUNTY BOARD OF COMISSIONERS
Minutes of Special Meeting
March 7, 2008
The Harnett County Board of Commissioners met in special session on Friday, March 7,
2008, in the Commissioners Conference Room, County Administration Building, 102
East Front Street, Lillington,North Carolina.
• Members present: Beatrice B. Hill,Vice Chairman
Dan B. Andrews
Tim McNeill
Gary House
Teddy J. Byrd, Chairman was absent.
Staff present: Neil Emory, County Manager
Wm. A. (Tony)Wilder, Assistant County Manager
Kay S. Blanchard, Clerk to the Board
Guest: Steve Reed, The Daily Record
Vice Chairman Hill called the meeting to order and Steve Reed led the invocation.
Mr. Emory presented for the Board's consideration a resolution titled "Resolution of the
Board of Commissioners of the County of Harnett,North Carolina, Sitting as the
Governing Body of the South Central Water and Sewer District of Harnett County,
Providing fro the Issuance of$6,753,000 General Obligation Water and Sewer Bond
Anticipation Notes of the South Central Water and Sewer District of Harnett County".
Commissioner McNeill moved to adopt the resolution. Commissioner House seconded
the motion and it passed unanimously. (Attachment 1)
• Mr. Emory led a discussion of the following items:
- Request from developer for assistance in getting a turn lane on the Dunn-Erwin Road in
Erwin.
- Need for lights on practice fields at high schools.
There being no further business, the Harnett County Board of Commissioners special
meeting, March 7, 2008 adjourned at 12:10 p.m.
eatrice B. Hill, Vice C airmen of the Board
illiaA\_Ght1-46(
Kay�anchard, Clerk to the Board
•
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Attachment 1
RESOLUTION OF Till:BOARD OF COt 1MISStONERs OF THE.
COUNTY OF HARNETT.NORTH CAROLINA,SITTING AS THE GOVERNING BODY OF THE SOUTH
CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY.PROVIDING FOR THE ISSUANCE OF
S6,753,000 GENERAL OBLIGATION WATER AND SEWER BOND ANTICIPATION NOTES
OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OP HARNETT COUNTY
WHEREAS, the Bond Order hereinafter-described has taken effect approving the issuance of
$42,000.000 General Obligation Water and Sewer Bonds (the "Bowls")of the South Central Water and
Sewer District of Harnett County(the "District""):
WHEREAS,the Board of Commissioners(the "Beard")of the County of Harnett.North Carolina
(the -County").sitting as the governing body of the District,has determined that it is in the District's best
interest to issue$6,753.000 General Obligation Water and Sewer Bond Anticipation Notes(the "Notes")
authorized under the Bond Order to finance renovation. expansion and improvement to the wastewater •
collection system of the District for which the Bonds were approved as permitted by Section [59-l61 of
the General Statutes of North Carolina,as amended:
1VO1V, THEREFORE. BE IT RESOLVED by the Board, sitting as the governing body of the
District,as follows:
1. For purposes of this Resolution-the following words will have the meanings ascribed to
them below: -
"Bid,for Notes" means the Bid for Notes submitted to the Local Government Commission of
North Carolina by the winnine bidder selected to purchase the Notes
"Bond Order"means the Bond Order authorizing the Bonds adopted by the Board.sitting as the
governing body of the District,on December 2.2002 and effective on approval by a majority of the voters
who voted thereon at a special referendum duly called and held on February 4,2003.•
"Notes"means the District's S6,753,000 General Obligation Water and Sewer Bond Anticipation
Notes to be issued on March 25.2008.
2. The.District shall issue not to exceed S6.753.000 in total aggregate principal amount of
its Notes.
3_ The Notes are being issued to provide funds to pay the capital costs of certain wastewater
collection system improvements in the District(the "Project") pursuant to and in accordance with the
• Bond Order.
4_ The Notes shall be dated March 25,2008.mature on December 1 7,2008 and bear interest
payable at maturity of the Notes in accordance with the Bid for Notes.
5. The Notes shall he numbered"R-I"and upward_ The Notes shall bear interest from their
date at a rate or rates which shall be hereafter determined upon the sale thereof computed on the basis of a
360-day year of twelve 30-day months.
6. The Notes shall be registered as to principal and interest and the District is directed to
maintain the registration records with respect thereto. The Notes shall bear the original or facsimile
signatures of the Chairman of the Board of the County and the Clerk to the Board. An original or
facsimile of the seal of the County shall be imprinted on each Note.
7. The determination of the rate of interest on the Notes,the place of payment for the Notes
and the denominations of the Notes will be made in accordance with the Bid for Notes. •
8. The Notes will be issued in registered form to the owner thereof or will be issued by
means of a book-entry system, in accordance with the Bid for Notes. If issued in book-entry system,one
note certificate will be issued to The Depository Trust Company, New York, New York ("DTC"), and
immobilized in its custody. A book-entry system will be employed,evidencing ownership of the Notes in
principal amounts of$5,000 or integral multiples thereof, with transfers of beneficial ownership effected
on the records of DTC and its participants pursuant to rules and procedures established by DTC.
Principal of and interest on the Notes will be payable to DTC in immediately available funds on the
maturity date. The District will not.be responsible or liable for maintaining,supervising or reviewing the
records maintained by DTC, its participants or persons acting through such participants. If not issued by
means of a hook-entry system,the principal of and interest on the Notes will be payable to the owners of
the Notes upon presentation and surrender of the Notes to the paying agent for the Notes at the offices of
the paying agent indicated on the Bid for Notes on the maturity date of the Notes.
If(a) DTC determines not to continue to act as securities depository for the Notes or (b)the
District Representative determines that the continuation of the book-entry system of evidence and transfer
of ownership of the Notes would adversely affect the interests of the beneficial owners of the Notes,the
District will discontinue the book-entry system with DTC. If the District fails to identify another
qualified securities depository to replace DTC,the District will authenticate and deliver replacement notes
in the form of fully registered certificates_
9. The Notes are not subject to payment prior to maturity.
10. The Notes and the provisions for the registration of the Notes and for the approval of the
Notes by the Secretary of the Local Government Commission of North Carolina shall be in substantially
the form set forth in Appendix A.
l I. The District covenants to take such action as may be required in the opinion of nationally
recognized bond counsel to cause the Notes and all actions of the District with respect to the proceeds
thereof to comply with Internal Revenue Code of 1986, as amended (the "Code"). in particular, the
District covenants as follows:
(a) At least one of the following two conditions will be satisfied: (i)less 1111
than 10%of the proceeds of the Notes reduced by costs of issuance will be used directly
or indirectly in the business ofa person other than a state or local governmental unit or
(ii)less than 10%of the principal or interest on the Notes will be(under the terms of such
issue or any underlying arrangement) directly or indirectly(A)secured by an interest in
property used or to be used in a private business or by any interest in payments tnade
689
with respect to such property or (B)derived from' payments made with respect to
property,or borrowed money_used or to be used in a private business;
(b) Less than 5%of the proceeds of the Notes reduced by costs of issuance
will be used by nongovernmental persons for a use unrelated to the purposes for which
the Notes were issued:
(cl It will not loan directly or indirectly more than 5./of the Notes proceeds
to nongovernmental persons;
(d) It has not and will not enter into any management contract with respect
to the facilities financed with the proceeds of the Notes unless it obtains an opinion of
nationally recognized bond counsel that such management contract will not impair the
exclusion from a recipient's gross income for federal income tax purposes of the interest
on the Notes:
(e) The District acknowledges that the continued exclusion of interest on the
Notes from a recipient's gross income for federal income tax purposes depends, in part_
upon compliance with the arbitrage limitations imposed by Section 148 of the Code. The
• District covenants to comply with all the requirements of Section 148 of the Code.
including the rebate requirements,and it shall not permit at any time any of the proceeds
of the Notes or other funds of the District to be rued_directly or indirectly,to acquire any
asset or obligation. the acquisition of which would cause die Notes to be "orhinvage
bondr"for purposes of Section 148 of the Code;
(I) The Notes are not and shall not be .ederntly gorrarcmreed"as defined in
Section 149(b)of the Code;
(g) The District covenants to file or cause to be filed Form 8038G in
accordance with Section 149(e)of the Code.
12. Actions taken by officials.of the County to select on behalf of the District paying and
transfer agents.and a bond registrar. or alternate or successor agents and registrars pursuant to Section
I59F-8 of the Registered Public Obligations Act.Chapter 159E of the General Statutes of North Carolina_
are hereby authorized and approved.
13_ The Local Government Commission of North Carolina is hereby requested to sell the
Notes through a competitive sale to the bidder whose bid results in the lowest interest cost to the District.
determined by the Local Government Commission of North Carolina_
14, The form and content of the Bid for Notes and the Note Circular with respect to the Notes
are in all respects authorized,approved and ratified.
15_ The Chairman of the Board, the County Manager, the Finance Officer. the District
Representative, the County Attorney and the Clerk to the Board are hereby authorized and directed to
cause the Notes to be prepared and, wlxn it shall have been duly sold by the Local Government
Commission, to execute the Notes and to turn the Notes over to the registrar and transfer agent of the
County for delivery to the purchaser or purchasers to whom they may be sold by the Local Government .
Commission of North Carolina.
16. The Chairman of the Board, the County Manager. the Finance Officer, the County
Attorney and the Clerk to the Board arc authorized and directed to execute and deliver for and on behalf
of the County any and all additional certificates, documents, opinions or other papers and perform all
other acts as may be required by the documents contemplated hereinabove or as may be deemed
necessary or appropriate in order to implement and early out the intent and purposes of this Resolution.
17. The Public Utilities Director of the County and the Assistant Public Utilities Director of
(he County are each designated a"District Representative"and are authorized and directed to execute and
deliver for and on behalf of the District any and all additional certificates,documents,opinions or other
papers and perform all other acts as may be required by the documents contemplated hereinabove or as
may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of
• this Resolution.
18. This Resolution may be amended or supplemented, from time to time, without the
consent of the holder of the Notes if in the opinion of nationally recognized bond counsel, such
amendment or supplement would not adversely affect the interests of the holder of the Notes and would
not cause the interest on the Notes to be included in the gross income of a recipient thereof for federal
income tax purposes. This Resolution may be amended or supplemented with the consent of the holders
of a majority in aggregate principal amount of the outstanding Notes,exclusive of Notes.if any, owned
by the District,but a modification or amendment may nor, without the express consent of any holder of
Notes affected,reduce the principal amount of any Notes,reduce the interest rate payable on it,extend its
maturity or the times for paying interest, change the monetary medium in which principal and interest is
payable.or reduce the percentage of consent required for amendment or modification.
Any act done pursuant to a modification or amendment consented to by the holder of the Notes is
binding on all holders of the Notes and will not be deemed an infringement of any of the provisions of
this Resolution, whatever the character of the act may be, and may be done and performed as fully and
freely as if expressly permitted by the terms of this Resolution, and after consent has been given, no
holder of a Note has any right or interest to object to the action,to question its propriety or to enjoin or
restrain the District from taking any action pursuant to a modification or amendment.
If the District proposes an amendment or supplemental resolution to this Resolution requiring the
consent of the holder of the Notes,the District shall cause notice of the proposed amendment to be sent to
the holder of flue Notes by first-class mail,postage prepaid.to the address of such holder as it appears on
the registration books; but the failure to receive such notice by mail by any holder,or any defect in the
mailing thereof,will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly
set forth the nature of the proposed amendment and shall state that copies thereof are on file in the office
of the Clerk to the Board for inspection by the holder of the Notes. It; within 60 days or such longer
period as shall be prescribed by the District following the giving of such notice.the holder has consented
to the proposed amendment,the amendment will be effective as of the date stated in the notice.
19. The proceeds of the Notes received by the District shall be deposited in a separate
account of"the District held by the Finance Officer of the County and applied to pay the costs of issuance
of the Notes and the costs of the Project
READ.APPROVED AND ADOPTED this day of March,2008.
Beatrice B.Hill
Vice Chairman of the Board of Commissioners
• ATTEST:
Kay S.Blanchard
Clerk to time Board of Commissioners
•
(SEAL)
APPROVED AS To.Fort_tit:
Dwight Snow,E_sq_
County Attorney
690
CERTIFICATE
I, Kay S. Blanchard, Clerk to the Board of Commissioners of the County of Harnett, North
Carolina. do hereby certify that the foregoing is a true and accurate copy of the Resolution entitled
"RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE Cot1NTY OF LIIARNETT, NORTH
CAROLINA. SITTING AS THE GOVERNING BODY OF' THE SOUTH CENTRAL WATER AND SEWER
DISTRICT OF HARNETT COUNTY, PROVIDING FOR THE ISSUANCE OF S6,753.000 GENERAL
OBLIGATION WATER AND SEWER BOND ANTICIPATION NOTES OF THE SOUTH CENTRAL WATER
AND SEW-ER DISTRICT OF'HARNETT T COUNTY"which was adopted by the Board of Commissioners at its
special meeting held on the Tr'day of March.2008.to become effective on the 7''day of March.200S_
Kay S.Blanchard
Clerk to the Board of Commissioners
County of Harnett,North Carolina •
Extract of Minutes of a special meeting of the Board of Commissioners
of the County of Harnett. North Carolina. held in the Commissioners
Meeting Room. County Administration Building, 102 East Front Street.
Lillington.North Carolina.at 1 t 30 a.m.on March 7.2008. •
The following members were present:
Beatrice 13.Hill.Vice Chairman
Dan B.Andrews
Tim McNeill
Gary House
The following members were absent:
Teddy J.Byrd.Chairman
•
•
Commissioner Tim McNeill moved that the following resolution, copies of which having been
made available to the Board,be adopted:
RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH
CAROLINA. SITTING AS THE GOVERNING BODY OF THE SOUTH CENTRAL WATER AND SEWER
DISTRICT OF HARNETT COUNTY. PROVIDING FOR THE ISSUANCE OF S6,753,000 GENERAL
OBLIGATION WATER ANO SEWER BOND ANTICIPATION NOTES OF THE SOUTH CENTRAL WATER
AND SEWER DISTRICT OF HARNETT COUNTY"
The motion to adopt the aforementioned resolution was seconded by Commissioner Gary House
and was adopted by the Board of Commissioners on the following vote;
AYES: Commissioners Hill.Andrews.McNeill and House
NAYS: None
APPENDLX A
(Form of Note)No. 41)
R-1 $6.753.000
UNITED STATES OF AMERICA
STATE OF NORTH CAROLINA
SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY,NORTH CAROLINA
GENERAL OBLIGATION WATER AND SEWER BOND ANTICIPATION NOTE
INTEREST
RATE MATURITY DATE DATED DATE CUSIP
[RATE]% DECEMBER 17,2008 MARCH 25,2008 ICUSI 'l
REGISTERED OWNER: CEDE&Co.
PRINCIPAL SUM: SIN MILLION SEVEN HUNDRED FIFTY-THREE.THOUSAND DOLLARS
THE SOUTH CENTRAL'WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH
CAROLINA(the "District")acknowledges itself indebted and for value received hereby promises to pay
to the Registered Owner named above,on the Maturity Date specified above,upon surrender hereof,the
Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of
this Note until it shall mature at the Interest Rate per annum specified above,payable on the Maturity
Date specified above. Principal of and interest on this Note are payable in immediately available funds to
the Registered Owner and is payable in U.S.dollars on the Maturity Date.
This Note is issued in accordance with the Registered Public Obligations Act,Chapter 159E of
the General Statutes of North Carolina, and pursuant to The Local Government Bond Act and a bond
order adopted by the Board of Commissioners of the County on December 2. 2.002 and effective on
approval by a majority of the voters who voted thereon at u special referendum duly called and held on
February 4, 2003. The Note is issued to provide funds to pay certain wastewater collection system
improvements in the District.
Thc Note is not subject to payment prior to maturity.
It is hereby certified and recited that all conditions,acts and things required by the Constitution or 1111
statutes of the State of North Carolina to exist.be performed or happen precedent to or in the issuance of
this Note,exist,have been performed and have happened,and that the amount of this Note,together with
all other indebtedness of the District,is within every debt and other limit prescribed by said Constitution
or statutes. The faith and credit of the District are hereby pledged to the punctual payment of the
principal of and interest on this Note in accordance with its terms.
This Note shall not be valid or become obligatory for any purpose until the certification hereon
shall have been signed by an authorized representative of the Local Government Commission of North
Carolina.
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IN WITNESS WHEREOF,the District has caused this Note to bear the original or facsimile of the .
signatures of the Chairman of the Board of Commissioners of the County and the Clerk to the Board of
Commissioners of the County,each acting on behalf of the District, and an original or facsimile of the
seal of the District to be imprinted hereon and this Note to be dated as of the dated date set forth above.
(SILL)
Kay S.Blanchard Beatrice B.Hill
• Clerk to the Board Vice Chairman ofthe Board
Date of Execution;March 25,2008
The issue hereof has been approved under Ilie
provisions of The Local Government Bond Act.
T.Vi NCE HOLLOMAN
Secretary of the Local Government Commission
FORM OF ASSIGNMENT
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells,assigns and transfers unto
(Please print or typewrite Name and Address.
including Zip Code,and Federal Taxpayer Identification or
Social Security Number of Assignee)
the within Note and all rights thereunder,and hereby irrevocably constitutes and appoints
Attorney to register the transfer of the within Note on the books kept for registration thereof,
• with full power of substitution in the premises.
Dated:
Signature guaranteed by:
NOTICE: Signature must be guaranteed by a NOTICE: The signature to tins assignment must
Participant in the Securities Transfer Agent correspond with the name as it appears on the
Medallion Program ("STAMP") or similar face of the within Note in every particular,
program. without alteration. enlargement or any change
whatever.
•
•