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Home My WebLink About030413a Agenda PackageHARNETT COUNTY BOARD OF COMMISSIONERS County Administration Building 102 East Front Street Lillington, North Carolina Regular Meeting March 4, 2013 9:00am 1. Call to order-Chairman Jim Burgin 2. Pledge of Allegiance-Laura Douglass, Membership Director of Harnett & Moore Counties, Girl Scouts-North Carolina Coastal Pines 3. Invocation-Commissioner C. Gordon Springle 4. Consider additions and deletions to the published agenda 5. Consent Agenda A. Minutes B. Budget Amendments C. Tax refunds, rebates and releases D. Emergency Services requests award of the EMS vehicles bid for ambulances for Harnett County EMS to Northwestern emergency Vehicles for a new ambulance the amount in the amount of$119,839 and to Southeastern Specialty Vehicles for three remount ambulances in the amount of$224,910. E. County Engineer requests approval of a professional services agreement amendment with ECS Carolinas, LLP, to include construction testing services for the Dunn Erwin Corrective Action Projects. F. Proclamation -Girl Scouts Week March 11 -17, 2013 G. Public Utilities requests approval of write-offs in the amount of $12,206.19 for fourth quarter 2012 H. Public Utilities requests consideration of a water line extension request to serve two citizens along Flowers Drive in Harnett County. The proposed water line extension of 1,500 feet will cost approximately $8,946 and will be installed by HCDPU personnel. This extension will be funded from a combination of tap fees from the customers and budgeted funds from HCDPU for other capital improvements. I. Cooperative Extension requests permission to receive full allocation for Parents As Teachers grant for fiscal year 2012-2013 from the Harnett County Partnership for Children 6. Period of up to 30 minutes for informal comments allowing 3 minutes for each Presentation 7. Appointments Page 1 8. Public Hearing to obtain citizen input into the identification of community needs and desired Community Development Block Grant (CDBG) activities, Phyllis Owens, Director of Economic Development 9. Public hearing concerning (l) an installment financing contract in an amount not to exceed $43,000,000 (a) to finance the purchase of general obligation refunding bonds (collectively, the "Bonds") issued by certain water and sewer districts created by the County in order to assist such districts to achieve debt service savings with respect to the Bonds and (b) to refinance certain existing installment payment obligations of the County (collectively, the "Prior Obligations") in order to achieve debt service savings for the County with respect to the Prior Obligations and (2) a related deed of trust, Michael Juby, Bond Counsel, Parker Poe 10. Harnett County Board of Commissioners, sitting as the governing body of South Central Water & Sewer District, consider: a. Adoption of findings resolution relating to the District's general obligation water and sewer refunding bond; b. Introduction and adoption of bond order authorizing District's general obligation water and sewer refunding bond; and c. Adoption ofbond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. 11. Harnett County Board of Commissioners, sitting as the governing body of East Central Water & Sewer District, consider: a. Adoption of findings resolution relating to the District's general obligation water and sewer refunding bond; b. Introduction and adoption of bond order authorizing District's general obligation water and sewer refunding bond; and c. Adoption of bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. 12. Harnett County Board of Commissioners, sitting as the governing body ofNorthwest Water & Sewer District, consider: a. Adoption of findings resolution relating to the District's general obligation water and sewer refunding bond; b. Introduction and adoption of bond order authorizing District's general obligation water and sewer refunding bond; and c. Adoption of bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. 13. Harnett County Board of Commissioners, sitting as the governing body ofRiverside Water & Sewer District, consider: a. Adoption offmdings resolution relating to the District's general obligation water and sewer refunding bond; b. Introduction and adoption of bond order authorizing District's general obligation water and sewer refunding bond; and c. Adoption of bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. Page2 14. Harnett County Harnett County Board of Commissioners, sitting as the governing body of Southeast Water & Sewer District, consider: a. Adoption of findings resolution relating to the District's general obligation water and sewer refunding bond; b. Introduction and adoption of bond order authorizing District's general obligation water and sewer refunding bond; and c. Adoption of bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. 15. Harnett County Board of Commissioners, sitting as the governing body ofWest Central Water & Sewer District, consider: a. Adoption of findings resolution relating to the District's general obligation water and sewer refunding bond; b. Introduction and adoption of bond order authorizing District's general obligation water and sewer refunding bond; and c. Adoption of bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond 16. Harnett County Board of Commissioners, sitting as the governing body of Southwest Water & Sewer District, consider: a. Adoption of findings resolution relating to the District's general obligation water and sewer refunding bond; b. Introduction and adoption of bond order authorizing District's general obligation water and sewer refunding bond; and c. Adoption of bond resolution setting the terms of the District's general obligation water and sewer refunding bond and approving certain financing documents to be executed and delivered in connection with the issuance of the bond. 17. Good Hope Hospital Update, Pat Cameron 18. County Manager's report-Joseph Jeffries, Interim County Manager 19. New Business January 2013 Harnett County Department of Public Health Activities Summary $2,490,593.38 Total Unpaid 2012-13 Property Taxes 20. Closed Session 21. Adjourn Page 3 HARNETT COUNTY BOARD OF COMMISSIONERS Minutes of Regular Meeting February 18,2013 The Harnett County Board of Commissioners met in regular session on Tuesday, February 18, 2013, in the Commissioners Meeting Room, County Administration Building, 102 East Front Street, Lillington, North Carolina. Members present: Staff present: Jim Burgin, Chairman Gary House, Vice Chairman Beatrice B. Hill, Commissioner Joe Miller, Commissioner C. Gordon Springle, Commissioner Joseph Jeffries, Interim County Manager Tony Wilder, Deputy County Manager Dwight Snow, County Attorney Sylvia Blinson, Finance Officer Margaret Regina Wheeler, Clerk to the Board Chairman Burgin called the meeting to order at 7:00pm. Vice Chairman House led the pledge of allegiance along with Harnett County Venom travel league baseball players Tyler House, William Phillips and Josh McMillian. Commissioner House also led the invocation. Chairman Burgin called for additions and deletions to the published agenda. Chairman Burgin requested the addition for consideration the Sheriff's Office requests to accept a grant in the amount of $31,860 and enter into a Memorandum of Understanding with the NC Department of Public Safety/NC Highway Patrol. Mr. Jeffries also requested the addition for consideration the resolution authorizing the negotiation of an installment financing contract and providing for certain other matters. Commissioner Springle moved to approve the agenda as amended. Commissioner Miller seconded the motion which passed unanimously. Commissioner Miller moved to approve the consent agenda as amended. Commissioner Springle seconded the motion which passed unanimously. 1. Minutes: February 4, 2013, Regular Meeting 2. Budget Amendments: 253 Transportation Code 110-4650-410.11-00 110-4650-410.12-00 110-4650-410.21-00 110-4650-410.21-04 110-4650-410.21-05 110-4650-410.22-00 Salaries & Wages Salaries & Wages Part-time Group Insurance Group Insurance H.S.A. 95,885 decrease 30,530 decrease 16,382 decrease 3,000 decrease 97 5 decrease Group Insurance-Employee Clinic FICA 9,672 decrease February 18, 2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 1 of9 253 Transportation continued Code 110-4650-410.23-00 Retirement 110-4650-410.26-08 Workers Compensation 110-4650-410.32-92 Pre-employment Screening 110-4650-410.33-45 Cont Serv-Repair Comm Equip (2700) Cleaning Serv (1235) IT (8400) 110-4650-410.41-11 Communications 110-4650-410.41-22 Utilities 110-4650-410.43-16 Maintenance & Repair (Comm Equip) 110-4650-410.52-54 Insurance 110-4650-410.54-26 Advertising 110-4650-410.55-12 Printing & Binding 110-4650-410.58-01 Training & Meetings 110-4650-410.58-14 Travel Administration 110-4650-410.60-31 Gas, Oil & Auto Supplies 110-4650-410.60-33 Materials & Supplies 110-4650-410.60-36 Uniforms 110-4650-410.60-53 Dues & Subscriptions 110-4651-410.11-00 Salaries & Wages 110-4651-410.21-00 Group Insurance 110-4651-410.21-04 Group Insurance H.S.A. 110-4651-410.21-05 Group Insurance-Employee Clinic 110-4651-410.22-00 FICA 110-4651-410.23-00 Retirement 110-4651-410.26-08 Workers Compensation 110-4651-410.30-22 Indirect Cost 110-4651-410.32-92 Pre-employment Screening 110-4651-410.33-45 Cont Serv-Repair Comm Equip (2700) Cleaning Serv (1235) IT (8400) 110-4651-410.41-09 Telephone 110-4650-410.41-11 Postage 110-4651-410.41-50 Electricity 110-4651-410.41-51 Natural Gas 110-4651-410.41-52 Water 110-4651-410.41-53 Sewer 110-4651-410.41-54 Trash 110-4651-410.43-16 M/R Equip (Comm Equip) 110-4651-410.52-54 Insurance 110-4651-410.54-26 Advertising 110-4651-410.54-27 Advertising-Legal 110-4651-410.54-28 Advertising-Promotional Items 110-4651-410.55-12 Printing & Binding 110-4651-410.58-01 Training & Meetings 110-4651-410.58-14 Travel Admin Travel Subsistence 6,674 decrease 5,657 decrease 700 decrease 12,335 decrease 3,750 decrease 8,600 decrease 900 decrease 13,500 decrease 3, 779 decrease 600 decrease 1 ,200 decrease 1 ,500 decrease 27,635 decrease 800 decrease 7, 000 decrease 900 decrease 95,885 increase 16,382 increase 3,000 increase 97 5 increase 7,336 increase 6,674 increase 5,657 increase 20,331 increase 700 increase 12,335 increase 3,500 increase 250 increase 5,000 increase 2,500 increase 500 increase 300 increase 300 increase 900 increase 18,000 increase 3,936 increase 600 increase 997 increase 600 increase 1 ,250 increase 1 ,500 increase 1,000 increase February 18, 2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 2 of9 253 Transportation continued Code 110-4651-410.60-33 Materials & Supplies 110-4651-410.60-36 Uniforms 110-4651-410.60-53 Dues & Subscriptions 110-0000-334.55-01 NC Dept ofTransp Adm Grant 258 Library Code 110-8100-450.11-00 Salaries & Wages 110-8100-450.21-01 Group Insurance Expense I Retiree 110-0000-348.20-00 Fines 110-0000-348.10-00 Copy Fees 110-0000-353.07-00 Contributions/Donations 260 Revenues Code 110-0000-312.10-00 Municipal Collection Fee 110-0000-322.45-01 Ad Valorem-Dunn 110-0000-322.45-02 Ad Valorem-Lillington 110-0000-322.45-03 Ad Valorem-Erwin 261 Airport-CP1206 Code 330-8300-406.45-46 Engineering 330-0000-389.10-00 Interfund Transfer-OF 330-0000-334.30-59 Airport 36237.25.12.2 262 Highland Elementary Gym -CP0908 Code 322-8300-480.90-10 General Fund 322-8300-480.55-12 Printing & Binding 322-8300-480.45-80 Contingency 322-8300-480.46-01 Residual Equity 322-0000-361.50-00 First Citizen 3 22-0000-3 61.1 0-00 Interest 322-0000-314.50-00 Sales Tax 264 General Fund Code 110-8701-490.90-27 Interfund Transfer-Emergency Service Renovation Project 110-0000-399.00-00 Fund Balance Appropriated 265 Emergency Services -CP 1 001 Code 396-8300-420.45-01 Construction 396-0000-314.50-00 Sales Tax 396-0000-361.10-00 Interest 396-0000-389.10-00 Interfund Transfer-GF 800 increase 7,000 increase 900 increase 32,866 decrease 1 0,900 decrease 3,400 increase 3,000 decrease 3,000 decrease 1,500 decrease 54,950 increase 30,000 decrease 14,000 decrease 10,950 decrease 29,250 increase 2,925 increase 26,325 increase 597 decrease 5,747 decrease 51 decrease 33,360 increase 5,653 increase 55 increase 21,257 increase 7,070 increase 7,070 increase 5,460 increase 1 ,848 decrease 23 8 increase 7,070 increase February 18, 2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 3 of9 267 Cooperative Extension Code 110-0000-334.73-24 4-H Teen Court & At Risk 110-0000-334.58-05 4-H Teen Court & At Risk 268 Sheriffs Department Code 110-5120-420.60-33 Materials & Supplies 110-0000-356.50-00 Inmates Confined-SSA 269 Sheriffs Department Code 110-5120-420.32-48 Safe Keepers 110-0000-356.51-09 Inmates Misdemeanants 272 Health Department Code 11 0-7 600-441.11-00 Salary & Wages 110-7600-441.21-00 Group Insurance 11 0-7 600-441.22-00 FICA 110-7600-441.23-00 Retirement 110-7600-441.32-26 Incentives 110-7600-441.41-11 Telephone & Postage II 0-7600-441.60-45 Drugs 110-7600-441.60-46 Medical Supplies 110-0000-331.76-11 Immunization Action Plan 273 Emergency Medical Services Code 110-5400-420.35-73 ASPR/SMAT (Wake-Med) 110-0000-353.54-04 Contributions-SPR/SMAT (Wake-Med) 3. Tax refunds, rebates and releases (Attachment 1) 4. Resolution to add roads to state system (Attachment 2) 1,575 decrease 1,575 increase 2,800 increase 2,800 increase 1 7, 184 increase 17,184 increase 3,215 decrease 1 ,500 decrease 245 decrease 207 decrease 1 ,000 decrease 1,1 03 decrease 3,000 decrease 4,034 decrease 14,304 decrease 1 0,500 increase 10,500 increase 5. Lomax Aviation, who operates out ofthe Harnett Regional Jetport as a full-service aircraft maintenance organization, requested waiver of the $900 annual SASO fee for one (1) year. 6. Emergency Services requested authorization to submit an application and receive funds for the FY2012 ASPR Assistant Secretary for Preparedness and Response) SMAT III (State Medical Assistance Team) Grant administered through the WakeMed Health and Hospitals CAPRAC (Capital Regional Advisory Committee) in the amount of$10,500. These funds will be used for the purchase of replacement of expired medications and decon mask filters for our SMAT III Team. 7. General Release-Resolution of Claim by previous County Manager, Scott T. Sauer, which details the terms of a settlement agreement between the Harnett County Board of Commissioners and previous the County Manager. February 18,2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 4 of9 8. IT Department (E-911 Division) requested to use the sole source purchasing option to purchase an additional Computer Aided Dispatch Software License from TriTech at a cost of$26,778.98. TriTech provides software maintenance and support to our Computer Aided Dispatch System (CAD). This purchase will increase our license to nine (9) and the cost is a 911 eligible expense. 9. Resolution honoring Eagle Scout William Rhodes Kelly (Attachment 3) 10. Resolution honoring Eagle Scout Benjamin Alexander Ellmers (Attachment 4) 11. Leadership Harnett Board of Directors requested waiver of room rental fees for the Commons Area Meeting Room for their annual graduation dinner in October. 12. Sheriffs Office requested permission to accept a grant in the amount of $3 1 ,860 and enter into a Memorandum ofUnderstanding with the NC Department of Public Safety/NC Highway Patrol. The purpose of the grant and MOA is to allow the NC Highway Patrol to make improvements on the Cokesbury Radio Transmission Tower. Chairman Burgin opened the floor for informal comments by the public, allowing up to 3 minutes for each presentation up to 30 minutes. Ben Slaughter of Chalybeate Springs pleaded with commissioners to let the investigation of the lawsuit go forward and said he believes that any matters affecting the lawsuit and its investigation should be handled in public forum. Mr. Slaughter mentioned a lawsuit by Randy Rogers, Ricky Temple and the US Government, that he said had recently been unsealed and removed because of lack of evidence against the allegations. Mr. Slaughter read portions of the Harnett County Board of Commissioner's Code of Ethics and also quoted what he said were portions ofhundreds ofhours of recordings made by Randy Rogers. Randy D. Rogers, a past Harnett County employee, said he has been demonized by some, even to the point ofbeing called a thief, and Board members have been mislead about him in an attempt to conceal the transgressions of a select few. Mr. Rogers said no person is above the law. Mr. Rogers said the saddest part concerning the waste, abuse and/or misappropriation of county funds is that some of the most impoverished areas of this county have been used to obtain funding to benefit some of the wealthiest among us. Mr. Rogers said the statement recently released concerning the so-called investigation into Public Utilities and his whistle-blower suit, according to all information and statements made to him by the Justice Department, the County's statement is false. He said was informed on two different occasions the whistle-blower suit did have validity and was not prosecuted for the reasons stated. Mr. Rogers continued to comment about the investigation and the "security review" performed. He also asked about the status of the public release of public records pertaining to the Country Walk Subdivision Report and asked commissioners to release the information. February 18,2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 5 of9 Tonya Gray, Director ofS.A.F.E. of Harnett County in Lillington, explained that S.A.F.E. is a private non-profit organization in Harnett County who provides services to domestic violence and sexually assaulted victims. Mrs. Gray presented, on behalf of the 632 victims that walked into their office in 2012 and 73 women and children, S.A.F.E.'s Purple Ribbon Awards to Chairman Burgin who was one of three recipients awarded in October of2012. Mrs. Gray thanked Chairman Burgin for his commitment in helping stand up for S.A.F.E. and making sure these services remain in existence in Harnett County. Chairman Burgin accepted the award on behalf of the whole Board who voted to fund their appropriation. Paul Long of 6455 Old Buies Creek Road in Lillington spoke about trash being dumped around the county and asked why the County doesn't have convenient centers available to citizens throughout the county. Mr. Long said Harnett County government is not filled with a culture of corruption. He said commissioners need to stop bickering and focus on the budget, lack of money to build schools, the Sheriffs Department, the Health Department, etc. Mr. Jeffries named the four convenient centers currently available of which three take household trash in addition to the two landfills. Mr. Jeffries also mentioned recent discussions regarding convenient centers with proposed options forthcoming. Commissioner Miller said the rules need to be enforced and people need to be fined for littering. He said no matter how many convenient centers are available you will still have people dumping on road sides. David Songs of 959 Ruffin Road in Dunn asked why he can't get county water at his home on Ruffin Road. Mr. Songs said he had spent $7000 to drill a well that was condemned by county. He said there are nine people on Ruffin Road that wants county water and he has been told it cost too much to run a line. Mr. Songs said he is half a mile from the Cumberland County side where there is a 6" line. Commissioners asked Mr. Jeffries to check on this and see if we could work with Cumberland County to get water to those people. Charles Arrington, 809 Young Road in Angier, said his home owners insurance has increased because he is not within 5 miles of a Harnett County fire department since the districts were realigned. Mr. Arrington said there are fire hydrants within 125 feet and less than 1000 feet ofhis home. He has been talking with the Fire Marshal's Office and is asking the commissioners for some relief as this hardship of his family. Mr. Arrington said people need to start standing up for their rights and taking this country back. Chairman Burgin said staff is researching this but they believe it will have to go through the legislature to change the districts. Joe Langley, 298 Kirk Adams Road in Angier, restated his previous requests: 1) A written time line of factual events starting with the initial allegations of wrong- doing on the part of Harnett County Public Utilities Department and continuing with the subsequent reports that found no wrong-doing on the part of Public Utilities as well as the lawsuits that were initiated following the reports. 2) An itemized summary accounting of all monies that have been paid to date by Harnett County Public Utilities to defend themselves against the allegations that were brought against them and also an itemized summary accounting of all monies that have been spent on all lawsuits that have been brought against other parties in this matter. February 18,2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 6 of9 Mr. Langley said Mr. Jeffries has staff working to develop the timeline as well as the summary accounting of all funds. Mr. Langley formally requested that the Board of Commissioners allocate additional resources to complete this project as soon as possible due to recent events. Vice Chairman House moved to approve the appointments listed below. Commissioner Hill seconded the motion which passed unanimously. BOARD OF ADJUSTMENT Kenneth Shaw (nominated by Commissioner Hill) was reappointed to serve as an alternate on this committee for a term of 3 years expiring March 31, 2016. TOWN OF LILLINGTON ZONING BOARD OF ADJUSTMENT-ETJ Judy Bethune and Fred Sexton (nominated by Commissioner Hill) were reappointed to serve at ETJ members on this board. TRANSPORTATION ADVISORY BOARD Barry Blevins and Patrick Fitzgerald (nominated by Commissioner Hill) were appointed to serve on this board for a term of one year. Mr. Ted Cole, Davenport and Company, presented for consideration a resolution prepared by bond counsel authorizing the negotiation of an installment financing contract and providing for certain other matters. Mr. Cole explained approval of the resolution would be the first step toward the refinancing of 12 different existing debt obligation of the County recently identified as previously discussed. The resolution would also call for a public hearing on the refinancing on March 4, 2013. Mr. Cole said they have talked this with the Local Government Commission about the plans for the refinancing and they understand the proposed transaction and said they are happy to receive an application. Mr. Cole said the estimate savings of the refinancing, where they would be taking advantage oflower fixed rates, is in excess of $5.5 million and would not introduce any variability in the County's debt. He reported the refinancing totaled approximately $36 Million of debt outstanding. The resolution states not to exceed $43 Million which Mr. Cole explained if any one individual identified loan doesn't make economic sense to refinance it would drop out and the County is not at this point committed to anything; only providing the up- front flexibility to move forward in establishing that upper limit amount. Mr. Cole noted the majority of the savings produced by this transaction would be for the Public Utilities Fund with the estimated savings to the General Fund being $50,000 a year. Commissioner Springle moved to approve the resolution as presented. Commissioner Miller seconded the motion which passed unanimously. Mark Locklear, Interim Planning Director, petitioned the Board of a public hearing on the proposed zoning change: Landowner/ Applicant: Anderson Creek Vol. Fire Dept., From RA- 20M to Commercial zoning; 1.04 acres; SR 1121 Ray Rd.; Anderson Creek Township. Mr. Locklear reported the Planning Board considered the proposed zoning change at their February 4, 2013, meeting. The site is not contiguous to existing commercial zoining therefore was analyzed for small scale rezoning. The Planning Board voted unanimously to recommend February 18, 2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 7 of9 approval of the request based on favorable findings of facts. The site contains a vacant building which was the home of the Anderson Creek Volunteer Fire Department and a vacant storage building. Surrounding land uses consist of vacant land, single family dwellings, apartments, Cooper's Creek Subdivision, Overbills Elementary, Middle and High Schools. Anderson Creek Plaza as well as other small businesses is in close proximity to the subject property. Mr. Locklear reported staff evaluation as: The IMP ACT to the adjacent property owners and the surrounding community is reasonable, and the benefits of the rezoning outweigh any potential inconvenience or harm to the community. REASONING: The requested zoning district is compatible with surrounding land uses and should have no unreasonable impact on the adjacent property owners or the surrounding community. The requested zoning district is COMPATIBLE with the existing Land Use Classification. REASONING: The existing Land Use Classification for this site is a Rural Development Node. This use is intended to promote the development of business and institutional uses with a neighborhood setting and also may include small lot residential and multi-family development. The proposed Commercial Zoning is compatible with the existing land use classification. The proposal does ENHANCE or maintain the public health, safety and general welfare. REASONING: The requested zoning to commercial would maintain the public health and general welfare due to other commercial uses in the area. This request is for a SMALL SCALE REZONING and should be evaluated for reasonableness. REASONING: This site is not adjacent to any existing commercial zoning and therefore, it should be evaluated for a small scale rezoning request. Suggested Statement-of-Consistency: Staff concludes that the requested rezoning to Commercial is compatible with Harnett County regulatory documents and would not have an unreasonable impact on the surrounding community and will enhance the public health, safety, and general welfare for the reasons stated in the evaluation. It is recommended that this rezoning request be approved. Chairman Burgin called to order a public hearing on the matter and opened the meeting for comments from the public. Seeing no one move, Chairman Burgin closed the public hearing. Vice Chairman House moved to approve the proposed zoning change as presented. Commissioner Miller seconded the motion which passed unanimously. Mr. Jeffries presented the following report: • January 2013 Veteran Affairs Activities Report Mr. Jeffries also shared a request from Superintendent Tom Frye inviting the county manager and one to two commissioners to serve on the Harnett County Schools Strategic Planning Team where they will work to formulate the school district's vision, mission, core beliefs and priorities. It was the consensus of the Board that Commissioner Miller, Commissioner Springle and Mr. Jeffries serve on this team. February 18,2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 8 of9 Chairman Burgin called for any new business. Commissioner Miller reference a letter from Benjamin N. Thompson with Wyrick Robbins Attorneys at Law representing Harnett Health System Inc., regarding transforming healthcare in Harnett County. Commissioner Miller questioned why the Board sent out a resolution supporting a project if they knew it was a "dead deal from the start". Chairman Burgin said comments in Mr. Thompson's letter are not accurate because he is talking about an ambulatory surgery center which was changed and what Good Hope is doing is a scaled back hospital with limited beds and not a surgery center. Commissioner Miller asked numerous questions regarding Good Hope and Chairman Burgin, who serves on the Good Hope Board, responded. Mrs. Blinson reported that the County had given Good Hope approximately $90,000 for operating funds of the psychiatric hospital in the last fiscal year and $100,000 of the county appropriated $400,000 this fiscal year. Vice Chairman House noted the Good Hope Psychiatric Hospital had 5 patients the past week. Vice Chairman House said the state was unclear on the rules, given no one has opened mental health beds in the state for years, and told Good Hope wrong regarding involuntary patients. Good Hope must be accredited by a joint commission before they can take involuntary commitments. Commissioner Miller questioned if Good Hope had completed the paperwork for this accreditation. Commissioner Hill moved that the Board go into closed session to discuss matters relating to the location or expansion of industries or other businesses in Harnett County. This motion is made pursuant to N.C. General Statute Section 143-318.ll(a)(4). Commissioner Springle seconded the motion which passed unanimously. Commissioner Hill moved that the Board come out of closed session. Commissioner Miller seconded the motion which passed unanimously. Commissioner Miller moved to adjourn the meeting at 8:20pm. Commissioner Springle seconded the motion which passed unanimously. Jim Burgin, Chairman Margaret Regina Wheeler, Clerk February 18, 2013 Regular Meeting Minutes Harnett County Board of Commissioners Page 9 of9 BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Boord of the County of Harnett, North Carolina, that the following amendment be mode to the annual budget ordinance for :he fiscal year ending June 30, 2013: Section 1. To amend the Detention Center Project CP040 1 Fund 313 appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 31 3-8300-4 1 0-45-30 Engineer $40,618 31 3-8300-4 1 0-45-33 Materials & Supplies $3,483 3 1 3-8300-4 1 0-45-80 Contingency $2,604 31 3-8300-4 1 0-46-0 1 Residual Equity $46,706 31 3-8300-4 1 0-45~ J.o Legal $1 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE EXPLANATION: To budget residual equity transfer for the close of project. APPROVALS: L kuC'J}fJ 1-;<~ -IG- < _Deportment HeoG-(date) nee Officer (date) J /_' :1 ~-~~~C.) Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted ____________________________________ _ Margaret Regina Daniel, Clerk to the Board Timothy B. McNeill, Chairman Harnett County Board of Comm BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Boord of the County of Harnett, North Carolina, that the following amendment be mode to the annual budget ordinance for the fiscal year ending June 30, 2010: Section 1, To amend the Boone Trail Elementary School Project CP0905, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 318-8300-480-45-70 Interest During Construction 400,953 31 8-8300-480-45-7 5 Soil & Environmental 4,136.00 31 8-8300-480-45-25 Sewer 253,699.00 318-8300-480-45-22 Issuance Cost 1,235.00 31 8-8300-480-90-1 0 General Fund 534,623.00 318-8300-480-46-01 Residual Equity 326,095.00 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 318-0000-31 4-50-00 Sales Tax $119,871 318-0000-36 1-50-00 Interest $280 318-0000-36 1-50-00 First Citizen $80,544 EXPlANATION: To to budget revenues and expenditures for the close of the Boone Trail Elementary School Project and residual equity transfer of COPS 2009 remaining funds to the General Fund to pay debt. APPROVAlS: Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted ____________________________________ _ Margaret Regina Daniel, Clerk to the Boord Timothy B. McNeill, Chairman Harnett County Board of Comm BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Boord of the County of Harnett, North Carolina, that the following amendment be made lo the annual budgeT ordinance for the fiscal year ending June 30, 2013: Section 1. To amend the Planning AMPI Unrecoverable Cost Grant, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 246-0000-334-72-02 Planning-NCDENR AMPI 2011 $34,050 246-0000-334-72-04 Planning-NCDENR AMPI2012 $34,050 EXPLANATION: To move budget to correct line for the 2012 AM PI Grant. APPROVALS: Finance Officer (date) Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board. ond to the Budget Officer and the Finance Officer for their direction. Adopted __________________________________ ___ Margaret Regina Daniel. Clerk to the Board Timothy B. McNeill, Chairman Harnett County Board of Comm BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2013: Section 1. To amend the General Fund, Sheriff's Department, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-5100-420-7 4-74 Capital Outlay 1329 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-0000-356-30-00 Insurance claims 1329 EXPLANATION: To transfer$ 1,329.12 received for an accident on 01/25/13 into the Sheriffs Capital Outlay expenditure line. APPROVALS: Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted this day of Margaret Regina Daniel, Interim Clerk to the Board 12012. Timothy B. McNeill, Chairman Harnett County Board of Commissioners BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that I he following amendment be maoe to the annual budget ordinance for the fiscal year ending June 30, 2013: Section 1. To amend the Highland Middle School Project CP1301 Fund 331, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 33 1 -8300-480-45-22 Cost of Issuance $23,229 33 l -8300-480-45-40 Land & Right of Way $166,278 33 1 -8300-480-45-7 4 Capital Outlay Buses $220,000 33 1 -8300-480-45-80 Contingency $30,493 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE EXPLANATION: To budget funds to meet the allocations presented on Davenport & Company schedule. APPROVALS: Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted __________________________________ ___ Margaret Regina Daniel, Clerk to the Board Jim Burgin, Chairman Harnett County Board of Comm BUDGET ORDINANCE AMENDMENT Oc BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2013: Section 1. To amend the General Fund, Parents As Teachers Program, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE. NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-7310-465.11-00 Salaries & Wages 47,944 110-7310-465.21-00 Group Insurance 1,160 110-7 310-465.21-04 Group Insurance H.S.A. 500 110-7310-465.21-05 Group Insurance I Employee Clinic 500 110-7310-465.22-00 FICA Tax Expense 3,342 110-7310-465.23-00 Regular Retirement 2J78 110-7310-465.26-08 Worker's Compensation 275 110-7310-465.41-11 Telecommunications & Postage 690 110-7310-465.44-21 Building & Equipment Rental 180 110-7310-465.58-01 Training & Meetings 100 110-7310-465.58-14 Travel Administration 1A21 110-7310-465.60-33 Materials & Supplies 1,175 110-7310-465.60-47 Food & Provisions 399 110-7310-465.60-53 Dues & Subscriptions 113 TOTALS 59.612 965 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-0000-334.73-10 Parents As Teachers 58,647 EXPLANATION: To reflect 100% Grant Fundmg awarded by the Harnett County Partnership for Children for the Parents as Teachers program FY 2012-2013. Total grant award for FY 2012-2013 at 100% is $234,586, current county budget reflects 75% grant award of $175,939 previously awarded to the Parents as Teachers Program. Total increase from $175,939 to $234,586 is $58,647. New contract for 100% grant funding at $234,586 attached. Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted this day of Margaret Regina Daniel, Interim Clerk to the Board 12013. Timothy B. McNeill, Chairman Harnett County Board of Commissioners CBA_l, 7/24/12, tv BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2013: Section 1. To amend the PU 1003 Brightwater lnf'structure, 575 Accounts Balance, Public Utilities Department, the appropriations are to be changed as follows: GY EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 575-9100-431-45-01 Construction $23,879.00 57 5-9100-431-45-80 Contingency $23,879.00 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE EXPLANATION: To decrease Fred Smith line for Final Change Order 9. APPROVALS: Depart Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted this day of Margaret Regina Wheeler, Clerk to the Board J 2013. Jim Burgin, Chairman Harnett County Board of Commissioners CHANGE ORDER Change Order No.: 9-Final Date: 11.13.12 Agreement Date: August 5, 2011 NAME OF PROJECT: Brightwater Science and Technology Campus Phase 1 Infrastructure OWNER: County of Harnett/Harnett Forward Together Committee CONTRACTOR: FSC II, LLC, dba Fred Smith Company The following changes are hereby made to the CONTRACT DOCUMENTS: Convert 2 sediment basins to BMPs, and adjust final quantities per actual installed amounts. Justification: Final quantity adjustment to contract to balance additions and deletions during the project. Time was adjusted to allow for coordination of the final overlay to occur after the hospital and Health Science Building paving and NCDOT work at tie-in. Two of the sediment basins had to be converted to permanent BMPs to comply with completed work ans NCDENR requirements. CHANGE TO DATE TO CONTRACT PRICE INCLUDING THIS CHANGE ORDER:= $3491967.70. Original CONTRACT PRICE: $2,238,248.45 Current CONTRACT PRICE adjusted by previous CHANGE ORDER: $2,612,095.16 The CONTRACT PRICE due to this CHANGE ORDER will be inereased decreased by -$23,879.01. The new CONTRACT PRICE including this CHANGE ORDER: $2,588,216.15. CHANGE to CONTRACT TIME~ 10 days Original CONTRACT TIME: 210 Consecutive calendar days Current CONTRACT TIME Changed by previous Change Orders: 240 Consecutive calendar days The CONTRACT TIME will be increased (eleeFeased) by _I 0_ calendar days. The NEW CONTRACT TIME including this Change Order. 240 calendar days The date for completion of all work will be: !.:N~o~v~em!.!.U:!:b~er_..J!....-::9:..:..-..:::2~0~1 2!::.----------------- Approvals Required: To be effective this Order must be approved by EDA if it changes the scope or objective of the PROJECT, or as may be otherwise required by tbe SUPPLEMENTAL GENERAL CONDITIONS. Requested by: Harnett County, HFTC & FSC EDA Approval by: IT E M # IT E M DE S C R I P T I O N Qt y . Un J t Un l t P f l c e 10 1 Mo b i l i z a t i o n 1. 0 0 LS 17 , 5 0 0 . 0 0 10 2 Al l o w a n c e En tt y - Mo n u m e n i · B I M : l . 1. 0 0 LS 5, 0 0 0 . 0 0 10 3 Al l o w a n c e En t r y Mo n u m e m Cl 0.0 0 LS 5,0 0 0 . 0 0 10 4 As p h a l t Es c a l a t i o n 1. 0 0 LS 25 . 0 0 0 . 0 0 ~-~ · · · Un d ~ t E X e a v a t i o n 11 . 0 0 0 . 0 0 CY 6. 7 5 1o e St o r m Dr a l l ' l a g e 15 " RC P 62 8 . 0 0 LF 22 . 0 0 10 7 18 " R C P 67 6 . 0 0 LF 23 . 0 0 10 8 24 " RC P 23 8 . 0 0 LF 31 . 0 0 .. . 10 9 15 ' Fl a r e d En d Se c t i o n 3. 0 0 EA 60 0 . 0 0 11 0 18 " Aa r e d En d Se c t j o n 1. 0 0 EA 65 0 . 0 0 11 1 24 " Ra r e < ! 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If! ' (1.00 (5,000.00 " 0.00 . 73 9 . 9 7 0.00 (24,260.03 32 . 0 5 0 . 0 1 (6 , 2 5 1 . 8 5 (42,199.99 16 , 3 2 4 . 0 0 114.00 2,508.00 11 , 3 1 6 . 0 0 (184.00 (4.232.00 4, 5 2 6 . 0 0 _(92.00) _i2,852.00 1,8 0 0 00 0.00 . . _(1.00 (650.00' 1, 6 0 0 . 0 0 (1.00) (BOO.oo: 0.00 34 , 9 2 0 . 0 0 0.00 - 65 , 0 0 0 . 0 0 0.00 - 25 , 0 0 0 . 0 0 1.00 25,000.00 . 11!; 0.00 . 26 , 0 0 0 . 0 0 1.00 26,000.00 . I~ 0.00 - - 69 , 5 1 3 . 0 3 (333.33 (2.999.97) 11 5 , 8 5 5 . 0 5 (333.33 (4,999.95) 70 , 9 0 1 . 6 0 0.00 35 , 2 9 4 . 0 0 0.00 - 20 , 7 1 2 . 0 0 0.00 . 95 , 0 0 0 . 0 0 0.00 . 8, 5 0 0 . 0 0 0.00 - 14 , 8 9 5 . 0 0 0.00 - 7, 1 1 0 . 0 0 (33.00 (1.485.00) 27 , 0 3 4 . 0 0 0.00 - 5, 1 0 0 . 0 0 (2.00) (1.700.00) 6, 4 8 0 . 0 0 0.00 - - 0.00 - . 0.00 - . 0.00 . . 0.00 . . 0.00 . 25 , 0 0 0 . 0 0 0.00 . 0.00 . . 0.00 I - 0.00 -o.oo . 3. 1 2 0 . 0 0 222.00 2,664.00 . 0.00 . ..... ~. ··- Str e e t . • Am b f i r t a a f r~ n Qt y . 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Se e d i n g 13 . 0 0 AC 1, 3 0 0 . 0 0 16 , 9 0 0 . 0 0 13 . 0 0 19 . 3 0 25 , 0 9 0 . 0 0 6.30 8,190.00 30 5 Te m p Se d Ba s i n A 1.0 0 EA 10 . 0 0 0 . 0 0 10 . 0 0 0 . 0 0 1. 0 0 1. 0 0 10 , 0 0 0 . 0 0 0.00 . 30 6 Te m p Se d Ba s i n B 1. 0 0 EA 10 . 0 0 0 . 0 0 10 , 0 0 0 . 0 0 1.0 0 10 0 10 , 0 0 0 . 0 0 0.00 - 30 7 Te m p Se d Ba s i n C 1.0 0 EA 10 , 0 0 0 . 0 0 10 , 0 0 0 . 0 0 1.0 0 1. 0 0 10 , 0 0 0 . 0 0 0.00 . 30 8 Te m p Se d Ba s i n D 1. 0 0 EA 16 , 0 0 0 . 0 0 16 , 0 0 0 . 0 0 1. 0 0 1. 0 0 16 , 0 0 0 . 0 0 0.00 . 30 9 Te m p Sa d Ba s i n E 1.0 0 EA 2. 0 0 0 , 0 0 2, 0 0 0 . 0 0 1.0 0 1. 0 0 2, 0 0 0 , 0 0 0.00 - 31 0 Te m p Se d Ba s i n F 1. 0 0 EA 1. 5 0 0 . 0 0 1. 5 0 0 . 0 0 1.0 0 1. 0 0 1, 5 0 0 . 0 0 0.00 - 31 1 Te m p Di Y e r S i o n DH c h 2. 5 8 8 . 0 0 LF 4. 0 0 10 , 3 5 2 . 0 0 2,5 8 8 . 0 0 3, 1 1 0 . 5 0 12 , 4 4 2 . 0 0 522.50 2,090.00 31 2 Ri p Ra p Ol s s a p a t e r s CL 1 20 0 . 0 0 SY 65 . 0 0 13 . 0 0 0 . 0 0 20 0 . 0 0 20 3 . 5 0 13 , 2 2 7 . 5 0 3.50 227.50 31 3 Ch e c l c Da m s 16 . 0 0 EA 30 0 . 0 0 4, 8 0 0 . 0 0 16 . 0 0 24 . 0 0 7, 2 0 0 . 0 0 a.oo 2,400.00 31 4 Sil t Fe n c e '9 . 9 4 0 . 0 0 LF 2. 0 0 19 , 8 8 0 . 0 0 9, 9 4 0 . 0 0 8, - 4 0 5 . 0 0 16 , 8 1 0 . 0 0 (1 , 5 3 5 . 0 0 ) (3,070.00) 31 5 Tr e e Pr o t e c t i o r l Fe n c e 92 7 . 0 0 LF 2. 0 0 1, 8 5 4 . 0 0 92 7 . 0 0 99 6 . 0 0 1, 9 9 2 . 0 0 69.00 138 00 31 6 Co m b o Fe n c e 1, 4 4 2 . 0 0 LF 2. 5 0 3, 6 0 5 . 0 0 1, 4 4 2 . 0 0 92 8 . 0 0 2, 3 2 0 . 0 0 (514.00) (1,285.00 31 7 In l e t Pr o t e e l l o n 18 . 0 0 EA 25 0 . 0 0 4, 5 0 0 . 0 0 IB . 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Q To t a l $ Aet r~ Qty Dlfl Tlltal $ Dlff 31 9 6" DIP Wa t e r 60 . 0 0 LF 27 . 0 0 1. 8 2 0 . 0 0 60 . 0 0 so . o o 1, 6 2 0 . 0 0 0.00 - 32 ( ) 8" DIP Wa t e r 91 . 0 0 LF 31 00 2. 8 2 1 . 0 0 91 . 0 0 26 . 0 0 60 6 . 0 0 ,_ (65.00) (2,015.00 32 1 12 " DI P Wa t e r 4, 8 9 2 . 0 0 LF 36 . 0 0 17 6 , 1 1 2 . 0 0 4. 8 9 2 . 0 0 4, 8 9 2 . 0 0 17 6 , 1 1 2 . 0 0 o.oo - 32 2 8" Ga t e Va l v e w/ Bo x 5. 0 0 EA 1, 3 0 0 . 0 0 5, 5 0 0 . 0 0 5. 0 0 5. 0 0 6, 5 0 0 . 0 0 0.00 - 32 3 8" Plu g 5.0 0 EA 50 0 . 0 0 2, 5 0 0 . 0 0 5. 0 0 4. 0 0 2,0 0 0 . 0 0 (1.00 (500.00 ,-.. 32 4 12 " Ga t e Va M ! wt Bo x 16 . 0 0 EA 2. 5 0 0 . 0 0 40 , 0 0 0 . 0 0 16 . 0 0 18 . 0 0 40 . 0 0 0 . 0 0 0.00 - 32 5 12 " Pl u g 3. 0 0 EA 50 0 . 0 0 1. 5 0 0 . 0 0 3.0 0 3. 0 0 1, 5 0 0 . 0 0 0.00 - 32 9 12 " x 8 " r ... . 2. 0 0 EA 1, 0 0 0 . 0 0 2, 0 0 0 . 0 0 2. 0 0 3. 0 0 3, 0 0 0 . 0 0 •0\ 1 ' 1.00 1.000.DC 32 7 12 " x l l " Cr o s s 1. 0 0 EA 1, 2 0 0 . 0 0 1,2 0 0 . 0 0 1.0 0 1. 0 0 1, 2 0 0 . 0 0 0.00 - 32 8 12 " x 1 2 " Te e s.o o EA 1, 6 0 0 . 0 0 8,0 0 0 . 0 0 5. 0 0 5. 0 0 8, 0 0 0 . 0 0 l'f; ! J 0.00 - 32 9 12 " · 6 ' ' Re d u c e r 0 00 EA 60 0 . 0 0 0. 0 0 0. 0 0 0. 0 0 - 0.00 - 33 0 11 . 2 5 D e ~ El b o w ( 1 2 1 1. 0 0 EA 70 0 . 0 0 70 0 . 0 0 1. 0 0 2. 0 0 1,4 0 0 . 0 0 1.00 700.00 33 1 22 . 5 De g r e e El b o w (1 2 " ) 3. 0 0 EA 70 0 . 0 0 2. 1 0 0 . 0 0 3. 0 0 6. 0 0 4. 2 0 0 . 0 0 3.00 2.100.00 33 2 45 De g r e e El b o w {1 2 " ) 1. 0 0 EA 80 0 . 0 0 80 0 . 0 0 1. 0 0 2. 0 0 1,6 0 0 . 0 0 1.00 800.00 33 3 12 " Bl o w Of f As s e m b l y 3. 0 0 EA 9, 0 0 0 . 0 0 27 . 0 0 0 . 0 0 3. 0 0 2. 0 0 18 . 0 0 0 . 0 0 {1.00) . (9.000.00' 33 4 Te S I & Cl e a n 8" wa l e l l i n e 91 . 0 0 LF 4. 7 5 43 2 . 2 5 91 . 0 0 26 . 0 0 12 3 . 5 0 (65.00) (308.75' 33 5 Te s t & Cl e a n 12 " wa t e r l i n e 4, 8 9 2 . 0 0 LF 5. 5 0 26 , 9 0 6 . 0 0 4, 8 9 2 . 0 0 4, 8 9 2 . 0 0 26 , 9 0 0 . 0 0 0.00 - 33 6 6" Ta p Sl e e v e & Va l v e 0. 0 0 EA 5, 0 0 0 . 0 0 0. 0 0 0. 0 0 1. 0 0 5, 0 0 0 . 0 0 1.00 s.ooo.oo 33 7 Bo r e un d e r Ma t t h e w s fo r Wa t e r 0. 0 0 EA 6. 0 0 0 . 0 0 0. 0 0 0. 0 0 1. 0 0 6, 0 0 0 . 0 0 1.00 6,000 00 33 8 No n - b o r e 18 " ca s i n g pi p e 0. 0 0 lF 75 . 0 0 0. 0 0 0. 0 0 0.0 0 . 0.00 - 33 9 No n - b o r e a· Ca r r i e r Pi{ l e 12 6 . 0 0 LF 40 . 0 0 5, 0 4 0 . 0 0 12 6 . 0 0 18 9 . 0 0 6, 7 6 0 . 0 0 -43.00 1,720.00 34 0 No n - b o r n :zo · Cl l s i n l l pi p e 0. 0 0 LF 75 . 0 0 0. 0 0 0.0 0 0. 0 0 - 0.00 - 34 1 No n - b o r e 12 " Ca r r i e r Pi p e 19 8 . 0 0 lF 40 . 0 0 7, 9 2 0 . 0 0 19 6 . 0 0 16 0 . 0 0 8, 4 0 0 . 0 0 (38.00) (1.520.00) 34 2 Al r Re l e a s e Va l w In MH 2. 0 0 EA 3,5 0 0 . 0 0 7,0 0 0 . 0 0 2. 0 0 2. 0 0 7,0 0 0 . 0 0 0.00 . 34 3 FH As s e m b l y (6 " va l w & hy d ) .. 10 . 0 0 EA 4. 2 0 0 . 0 0 42 , 0 0 0 . 0 0 10 . 0 0 10 . 0 0 42 , 0 0 0 . 0 0 0.00 . 3~4 Tie lo ex i s t i n g 12 " Wl 1. 0 0 EA 1, 0 0 0 . 0 0 1. 0 0 0 . 0 0 1. 0 0 1. 0 0 1, 0 0 0 . 0 0 0.00 . 34 5 Sta b i i H y St o n e 0. 0 0 LF 2. 5 0 0. 0 0 0. 0 0 0. 0 0 - 0.00 - 34 6 12 " Pr e s s u r e Re d u c i n g Va l v e 1. 0 0 EA 25 , 0 0 0 . 0 0 25 . 0 0 0 . 0 0 1. 0 0 1. 0 0 25 , 0 0 0 . 0 0 0.00 - co m m o n S. n l t a r y Sow e r 37 0 8" PV C Sa n Se w e r (6 - 8 ' ) 14 3 . 0 0 LF 22 . 0 0 3, H 6 . 0 0 14 3 . 0 0 25 6 . 0 0 5, 6 3 2 . 0 0 11300 2.486.00 37 1 8" PV C S1 1 n Se w e r ( B - 1 0 ' ) 51 7 . 0 0 LF 23 . 0 0 11 , 8 9 1 . 0 0 51 7 . 0 0 38 9 . 0 0 s. 1 n . o o (118.00 (2,714.00) 37 2 8" DI P Sa n Se w e r (8 · 1 O'l 10 8 . 0 0 LF 34 . 0 0 3, 6 7 2 . 0 0 10 8 . 0 0 11 0 . 2 6 3,7 4 8 . 8 4 2.28 76.84 37 3 12 " PV C Sa n Se w e r { 6 · 8 ' ) 35 . 0 0 lF 29 . 0 0 1, 0 1 5 . 0 0 35 . 0 0 0. 0 0 - ~(35.00) (1.015.00) 37 4 12 " PV C S11 1 n Se w e r (8 - 1 0') 37 9 . 0 0 LF 30 . 0 0 11 , 3 7 0 . 0 0 37 9 . 0 0 59 0 . 5 0 17 , 7 1 5 . 0 0 211.50 6,345.00 37 5 12 " PV C Sa n Se w e r _ ( 1 Q . 1 2 ' ! 24 3 . 0 0 LF 33 . 0 0 8, 0 1 9 . 0 0 24 3 . 0 0 20 5 . 0 0 6, 7 6 5 . 0 0 (38.00 (1.254.00) 37 6 12 " DI P sa n Se w e r ( 1 Q . 1 2 ' ) 81 . 0 0 LF 49 . 0 0 3. 9 6 9 . 0 0 81 . 0 0 00 0 - (81.00) (3,969.00) ~ 12 ' DI P Sa n Se w e r ( 1 2 - 1 4 ' ) 14 2 . 0 0 lF 51 . 0 0 7, 2 4 2 . 0 0 14 2 . 0 0 51 3 . 5 0 26 . 1 8 8 . 5 0 371.50 18,946.50' 37 8 12 ' PV C Sa n Se w e r (1 2 · 1 4 1 36 . 0 0 LF 36 . 0 0 1, 2 9 6 . 0 0 36 . 0 0 28 4 . 5 0 10 . 2 4 2 . 0 0 248 50 8,946.00 .. 37 9 4' Dil l . Ma n h o l e 6- 8 ' 2. 0 0 EA 2, 0 7 0 . 0 0 4,1 < 1 0 . 0 0 2. 0 0 0. 0 0 . (2.00 (4,140.00) 38 0 4' Dt a . Ma n h o l e 8· 1 0 ' 7. 0 0 EA 2. 6 6 0 . 0 0 18 . 6 2 0 . 0 0 7.0 0 9. 0 0 23 , 9 4 0 . 0 0 2.00 5,320.00 38 1 4' Ola . Ma n h o l e 10 . 1 2 ' 2. 0 0 EA 3.0 7 0 . 0 0 6, 1 4 0 . 0 0 2. 0 0 2. 0 0 6, 1 4 0 . 0 0 0.00 - 38 2 s· 01 8 . M;~ o n h o l e 12 · 1 4 ' 1. 0 0 EA 4, 0 0 0 . 0 0 4, 0 0 0 . 0 0 10 0 3. 0 0 12 , 0 0 0 . 0 0 2.00 8,000.00 38 3 In s i d e Dr o p 1. 0 0 EA 2, 0 1 0 . 0 0 2, 0 1 0 . 0 0 1. 0 0 1.0 0 2, 0 1 0 . 0 0 0.00 - 38 4 20 " St e e l C. . ~ n g Pi p e 40 . 0 0 LF 11 0 . 0 0 3. 6 0 0 . 0 0 40 . 0 0 40 . 0 0 3, 6 0 0 . 0 0 0.00 - 38 5 12 " DI P CS r r i e r w / Fie l d lo k 40 . 0 0 lF 40 . 0 0 1. 6 0 0 . 0 0 40 . 0 0 40 . 0 0 1. 6 0 0 . 0 0 o.oa - 38 6 Co n n e C I !0 ex i s t i n g ma n h O l e 1. 0 0 EA 10 , 2 0 0 . 0 0 10 , 2 0 0 . 0 0 1. 0 0 1.0 0 10 , 2 0 0 . 0 0 0.00 • ~j ~ · I I ... 1 'Ill' Sa n i t a r y Se w e r • Op t i o n B Qt y , Un l t Un i t Pri c e To t a l $ B!d Q Ac t O To t a l $A e t I~ Qly l : l l f l Total* Ollf 30 1 B 8" PV C Sa n Se w e r (6 - 8 ' ) 95 . 0 0 LF 22 . 0 0 2. 0 9 0 . 0 0 95 . 0 0 92 . 0 0 2. 0 2 4 . 0 0 '" " (3.00 (66.00 30 2 8 8" DI P Sa n Se w e r (1 2 · 1 4 ' ) 53 . 0 0 LF 39 . 0 0 2. 0 6 7 . 0 0 53 . 0 0 49 . 0 0 1, 9 1 1 . 0 0 ~ (<1.00) (156.00 30 3 8 12 " PV C Sa n Se w e r (0 - 6 ' ) 36 . 0 0 LF 29 . 0 0 1, 0 4 4 . 0 0 36 . 0 0 0. 0 0 - I! (36.00) (1.044.00 30 4 8 12 " PV C Sa n se w e r (8 - S ' l 15 6 , 0 0 LF 30 . 0 0 4. 6 8 0 . 0 0 15 6 . 0 0 . "> i (156.00 (4,680.00 30 5 B 12 " PV C Sa n Se w e r (8 - 1 0 1 20 0 . 0 0 LF 31 . 0 0 6, 2 0 0 . 0 0 20 0 . 0 0 11 4 . 0 0 3,5 3 4 . 0 0 (68.00 12,006.00 30 6 8 12 " PV C Sa n Se w e r ( 1 0 · 1 2 1 21 2 . 0 0 LF 34 . 0 0 7, 2 0 8 . 0 0 21 2 . 0 0 42 0 . 0 0 14 , 2 8 0 . 0 0 208.00 7,072.00 30 7 8 12 " DI P Sa n Se w e r (O . S 12 3 . 0 0 LF 45 . 0 0 5, 5 3 5 . 0 0 12 3 . 0 0 - (123.00) (5,535.00 ao 8 8 12 " DI P Sa n Se w e r 6- 8 ' ) 13 3 . 0 0 LF 48 . 0 0 6, 1 1 8 . 0 0 13 3 . 0 0 . (133.00 (6,118.00 30 9 8 12 " DI P Sa n Se w e r 8- 1 0 1 45 . 0 0 LF 48 . 0 0 2,1 6 0 . 0 0 45 . 0 0 25 0 . 0 0 12 , 0 0 0 . 0 0 205.00 9,840.00 31 0 8 12 " DI P Sa n SI ! V / e f 10 · 1 2 ' ) 72 . 0 0 LF 50 . 0 0 3,6 0 0 . 0 0 72 . 0 0 0. 0 0 - (72.00) (3,600.00 31 1 8 12 " DI P Sa n Se w e r 12 · 1 4 ' ) 82 0 . 0 0 LF 56 . 0 0 45 , 9 2 0 . 0 0 82 0 . 0 0 0. 0 0 - (820.00) (45.920.00 31 2 8 12 " Dl P Sa n Se w e r 1'1 · 1 6 ' ) 1, 0 4 3 . 0 0 LF 96 . 0 0 10 0 , 1 2 8 . 0 0 1, 0 4 3 . 0 0 1, 2 9 9 . 0 0 12 4 , 7 0 4 . 0 0 256.00 24,576.00 31 3 £ 1 12 " Dl P Sa n Se w e r 16 - 1 8 ' > 39 5 . 0 0 LF 15 0 . 0 0 59 , 2 5 0 . 0 0 39 5 . 0 0 21 9 . 0 0 32 , 8 5 0 . 0 0 (176.00) (26,400.00' 31 4 8 12 " DI P Sa n Se w e r (1 8 - 2 0 1 18 5 . 0 0 LF 70 . 0 0 12 , 9 5 0 . 0 0 18 5 . 0 0 48 5 . 5 0 33 , 9 8 5 , 0 0 300.50 21,035.00 31 5 8 12 " DI P Sa n Se w e r (2 0 - 2 2 ' ) 80 . 0 0 LF 80 . 0 0 6, 4 0 0 . 0 0 eo oo 22 0 . 0 0 17 , 6 0 0 . 0 0 140.00 11,200.00 31 G B 4' Di e , Ma n h o l e 0- 6 ' 1. 0 0 EA 1, 8 0 0 . 0 0 1, 8 0 0 . 0 0 1. 0 0 0.0 0 . (1.00 (1,800.00) 31 7 & 4' Di a . Ma n h o l e 8· 1 0 ' 2. 0 0 EA 2, 7 0 0 . 0 0 5, 4 0 0 . 0 0 2 00 4.0 0 10 , 8 0 0 , 0 0 2.00 5,400.00 31 8 8 4' Di a . Ma n h o l e 10 · 1 2 ' 3. 0 0 EA 3, 1 0 0 . 0 0 9, 3 0 0 . 0 0 3. 0 0 1.0 0 3, 1 0 0 . 0 0 {2.00 {6,200.00) 31 9 8 5' Ol a . Ma n h o l e 12 - 1 4 ' 9.0 0 EA 4, 1 0 0 . 0 0 38 , 9 0 0 . 0 0 9.0 0 5, 0 0 20 , 5 0 0 . 0 0 (4.00) (16,400,00) 32 0 8 S' Dl a . Ma n h o l e 14 · 1 6 ' 3. 0 0 EA 4, 6 0 0 . 0 0 13 , 8 0 0 . 0 0 3. 0 0 5.0 0 23 , 0 0 0 . 0 0 2.00 9,200.00 32 1 8 5' Ola . Ma n h o l e 18 - 1 8' 1. 0 0 EA 5, 1 0 0 . 0 0 5, 1 0 0 . 0 0 1. 0 0 2. 0 0 10 , 2 0 0 . 0 0 1.00 5,100.00 32 2 8 5' Dla . Ma n o o t e 18 - 2 0 ' 2. 0 0 EA 5, 6 0 0 . 0 0 11 , 2 0 0 . 0 0 2. 0 0 2. 0 0 11 , 2 0 0 . 0 0 0.00 - 32 3 B Bo r e & Ja c k un d e r Ma t t h e w s !t d 1.0 0 EA 40 , 0 0 0 . 0 0 40 , 0 0 0 . 0 0 1.0 0 1. 0 0 -1 0 , 0 0 0 . 0 0 0.00 - 32 4 8 Bo r & Ja c k un d e r Ra U r o a d 1. 0 0 EA 90 . 0 0 0 . 0 0 90 , 0 0 0 . 0 0 1. 0 0 1. 0 0 90 , 0 0 0 . 0 0 0.00 - Ch a n 1 1 a Or d e r s 40 0 C 0 1 Ex t r a De p t h 12 " WL Ea s e m e n t 1. 0 0 LS 3,7 8 8 . 0 0 3, 7 8 8 . 0 0 1. 0 0 1. 0 0 3. 7 8 8 . 0 0 0.00 - 40 1 C 0 2 De l e t e Ba s i n 0 ad d se d tr a p 1. 0 0 LS 15 . 2 4 9 . 2 2 15 , 2 4 9 . 2 2 1. 0 0 1, 0 0 15 . 2 4 9 . 2 2 0.00 - 40 2 C 0 3 Ma t t h e w s Rd \o " M e n l n g 1. 0 0 LS 85 , 6 1 8 . 0 0 85 , 6 1 6 . 0 0 1. 0 0 1. 0 0 85 , 6 1 6 . 0 0 0.00 - 40 3 C 0 4 Ma t t h e w s Rd Ad d t 1 bo r e / l a p 1. 0 0 LS 4, 3 5 7 . 0 0 4, 3 5 7 . 0 0 1. 0 0 1. 0 0 4, 3 5 7 . 0 0 0.00 - 40 4 C 0 5 Ou t s l c t e Dr o p 1. 0 0 LS 7, 4 8 4 . 4 9 7, 4 8 4 . 4 9 1. 0 0 1.0 0 7,4 8 4 , 4 9 0.00 - 40 5 C 0 8 Ad d i t i o n a l W! l t e r t i n e on Cr e s t e d Ir i s Or 10 0 LS 46 , 8 5 2 . 5 0 46 , 8 5 2 50 1. 0 0 1.0 0 46 , 8 5 2 . 5 0 0.00 - 40 6 C 0 7 30 " RC P Cr e 4 t e d Ir i s 1, 0 0 L5 3, 9 « . 0 0 3,9 < 1 4 . 0 0 1. 0 0 1.0 0 3, 9 4 4 , 0 0 0.00 - 40 7 C 0 8 Wa l e r Se r v i c e to He a l t h Sc i e n c e P1 1 r k 1.0 0 LS 6, 5 5 6 . 0 0 6, 5 5 8 . 0 0 1. 0 0 1. 0 0 6, 5 5 6 . 0 0 0,00 - 40 8 C 0 9 2. 0 " $9 . 5 8 Cr e s t e d Ir i s 37 3 4 . 0 0 SY 9. 0 0 33 , 6 0 6 . 0 0 3, 7 3 4 . 0 0 3, 8 0 2 . 0 0 34 , 2 1 8 . 0 0 88.00 612.00 40 8 C 0 9 2.5 " 11 9 . 0 Bi n d e r Cr e s t e d Ir i s 37 3 4 . 0 0 SY 11 . 0 0 41 , 0 7 4 . 0 0 3, 7 3 4 . 0 0 3,8 0 2 . 0 0 41 , 8 2 2 . 0 0 68.00 748.00 40 8 0 0 9 8. 0 " CA B C Cr e a t e d Ir i s 37 3 4 . 0 0 SY 8,8 0 32 , 8 5 9 . 2 0 3, 7 3 4 . 0 0 3,8 0 2 . 0 0 33 , 4 5 7 . 6 0 68.00 598.40 40 8 C 0 9 30 " S< a n d a r d Co n c r e t e Cu r b & Gu t t e r Cl 25 8 1 . 0 0 SY 14 . 0 0 36 , 1 3 4 . 0 0 2, 5 8 1 . 0 0 2, 5 8 1 . 0 0 36 , 1 3 4 . 0 0 0.00 o4 0 8 C 0 9 Sir i i ) i n g & S\g n ! l l l e Cr e s t e d hi s 1. 0 0 LS 1, 5 0 0 , 0 0 1, 5 0 0 . 0 0 1.0 0 1. 0 0 1, 5 0 0 . 0 0 0.00 - 40 8 C 0 9 5' Co n e r e t e Si d e w a l k 12 6 1 . 0 0 LF 14 . 0 0 17 , 6 5 4 . 0 0 1, 2 6 1 . 0 0 1, 2 2 5 . 0 0 17 , 1 5 0 . 0 0 (38.00) (504.00 40 8 C 0 9 Vll h e e l Ch a i r Ra m p Cr e s t e d Ir i s 5.0 0 EA 85 0 . 0 0 4, 2 5 0 . 0 0 5. 0 0 3. 0 0 2, 5 5 0 . 0 0 (2.00 (1,700.00 40 B C 0 9 St r e e t Tr e e $ Cr e s t e d Ir i s 11 . 0 0 EA 36 0 . 0 0 3, 9 6 0 . 0 0 11 . 0 0 10 . 0 0 3, 6 0 0 . 0 0 (1.00 (360.00) 40 8 C 0 9 As o h a l t tie - Ma t t h e w s RD RO W 1. 0 0 LS 4, 9 1 5 . 0 0 4,9 1 5 . 0 0 1.0 0 1. 0 0 4, 9 1 5 . 0 0 0.00 - 40 8 C 0 9 Te m ' o 31 4 " bl o w of f Cr e s t e d Ir i s 3.0 0 EA 85 8 . 0 0 1, 9 7 4 . 0 0 3. 0 0 3. 0 0 1, 9 7 4 . 0 0 0.00 - 40 B C 0 9 15 " RC P Cr e s t e d lri . s 32 0 . 0 0 LF 22 . 0 0 7,0 4 0 . 0 0 32 0 . 0 0 32 0 . 0 0 7, 0 4 0 . 0 0 0.00 - 40 8 C 0 9 15 " FE S Cr e a t e d Ir i s 2. 0 0 EA 80 0 . 0 0 1, 6 0 0 . 0 0 2. 0 0 2. 0 0 1, 6 0 0 . 0 0 0.00 - 40 8 C 0 9 Cu r b In l e t s wf FG &H Cr e s t e d lr i $ 6. 0 0 EA 1, 9 4 0 . 0 0 11 , 6 4 D . O O 6. 0 0 6. 0 0 11 , 6 4 0 . 0 0 0.00 . 40 B C 0 9 Cl e a r i n g Cr e t t e d Ir i s 1.0 0 EA 1, 7 9 3 , 8 0 1,7 9 3 . 8 0 1. 0 0 1. 0 0 1.7 9 3 . 8 0 0.00 - Br l g h l w a t e r Dr i v e pa v e m e n t ch a n g e cr e d i t 1. 0 0 LS (1 3 , 6 2 0 . 5 6 ) (1 3 , a z o . s a J I J 0.0 0 1. 0 0 (1 3 , 6 2 0 . 5 6 ) 1.00 (13,620.56 I To t a l Ch a n g e Or d e r a to Da t e : $ 36 0 , 2 2 6 . 8 5 1~ 35 9 , 6 2 1 . 0 5 ~ (14,226.16) I io t a ! : $ 2, 6 4 9 , 4 7 5 . 1 0 !'! $ 2, 5 8 8 , 2 1 6 . 6 5 .'ii i . $ (23,879.01) BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2013: Section 1. To amend the Tax Department, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-4500-410.33-45 Contracted Services 13,545 110-4500-410.74-74 Capital Outlay 12,545 110-4500-410.30-04 Professional Services 1,000 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE EXPLANATION: Transfer of funds needed to purchase and install surveillance cameras for the Tax Department. APPROVALS: uw~b/7-{G Department Head (date) Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted this day of Margaret Regina Wheeler, Clerk to the Board ,2013. Jim Burgin, Chairman Harnett County Board of Commissioners February 22, 2013 Customer's Address: Harnett County MIS Dept 201 W. Front st. Lillington, NC 27646 Attn: Ira Hall Phone: (910) 814~388 Fax: (910) 814-2811 ihall@harnett.org people connecting people INTERNETWORK INEERING since 1996 13777 Ballantyne Corp Place I Suite 305 I Charlotte, NC 28277 IP Phone: 704.540.58001 Fax: 704.541.00591 http://www.ineteng.com QUOTATION #HRC 130222-1 Please reference quote number on PO: Please make purchase ottier to: Internetwork Engineering 13777 Ballantyne Corp. Place Suite306 Charlotte, NC 28277 If you have any quesUons concemlng this quote please contact Client Services Account Manager Patricia Dionne Brlld Tuttle (704) 943-5600 {919) 346-0401 clientservices@ineteng.com btuttle@ineteng.com SUBJECT: Surveillance Cameras & Switch ITEM # PART# Surveillance Cameras 1 CIVS-IPC-3520 2 CON-SNT-CIVSIPC3 3 CIVS-6KA-FLSHMNT 4 CIVS-6KA-FLSHD-S 5 CIVS-6KA-CTMFLSH= 6 CIVS-MS-CPSD-1SCL= Catalyst 3560 7 WS-C3560X-48P-L 8 CON-SNT-3560X4PL 9 CAB-310<-AC 10 S356XVK9T-12255SE 11 C3KX-PWR-715WAC 12 GLC-LH-SMD= DELIVERY: FOB: Shipping Point TERMS: NET 30 PRICE BASED ON: QUOTATION FIRM FOR: 30 DAYS DESCRIPTION Cisco Video Surveillance IP Dome Body Indoor 1MP DN 10 SMARTNET 8X5XNBD CSC Video Srvlnce IP Dome Body lnd Indoor Flush Mount Housing for 3520 and 6020 IP Cameras Indoor Smoked Flush Dome for 3520 and 6020 IP Cameras Ceiling Tile Flush Mount for 3520/6020 IP Cameras CIVS 1 Cisco Device Stream Connect License for Media Server Catalyst 3560X 48 Port PoE LAN Base SMARTNET 8X5XNBD Catalyst 3560X 48 Port PoE LAN Base AC Power Cord for Catalyst 3K·X (North America) CAT 3560X lOS UNIVERSAL WITH WEB BASED DEY MGR Catalyst 3K-X 715W AC Power Supply 1000BASE-LXILH SFP transceiver module MMF/SMF 1310nm Note: By request, this quote does not include !E Professional Services. If you would like assistance in implementing this solution, please contact your IE Account Manager immediately for a services estimate. Priced per City of Jacksonville/NCLGISA Master Cisco Convenience Contract 1 Of 1 t LIST QTY. PRICE UNIT PRICE EXTE.NDED PRICE 8 8 8 8 8 8 1,275.00 89.00 60.00 40.00 55.00 0.00 7,600.00 456.00 0.00 0.00 0.00 995.00 739.50 70.31 34.80 23.20 31.90 0.00 Sub-Total! 4,408.00 360.24 0.00 0.00 0.00 577.10 Sub-Total! 5,916.00 562.48 278.40 185.60 255.20 0.00 7,197.681 4,408.00 360.24 0.00 0.00 0.00 577.10 5,345.341 Totallnvestmentl $12,543.021 Plus Tax and/or Shipping CUSTOMER'S SIGNATURE Please Print Name & Title Below The enclosed material and lnfonnauon Is proprietary to and copyrighted by Internetwork Engineering. Any unauthorized use, reproducUon or retn!nsmllllslon In any form Is strlctly forbidden. Date : 03/04/2013 Approved By : TO : HARNETT COUNTY BOARD OF COMMISSIONERS RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND PENALTIES FOR ALL MUNICIPALITIES CARRINGTON, KRISTINA RACHEL City 0.00 Military 115B PINECREST DR 0001975024-2011-2011-145.42 Refund Exemption SPRING LAKE, NC 283907341 000000 County 145.42 SPRING LAKE, NC, 28390 -7341 2 DAVIS, HATTIE R Refund of 2 Solid PO BOX 1616 Waste Fees; ANGIER NC, 27501 -0000 City 0.00 Decrease in 0000013805-2012-2012-Number of 000000 140.00 Refund Mobile Homes in Park County 140.00 3 JOSEPH, DRELIEN Refund of 2 Solid PO BOX 1158 City 0.00 Waste Fees; COATS NC, 27521 -1158 0000028587-2008-2008-90.00 Refund Only 2 Homes on 000000 Property County 90.00 4 JOSEPH, DRELIEN Refund of 2 Solid PO BOX 1158 City 0.00 Waste Fees; COATS NC, 27521 -1158 0000028587-2009-2009-90.00 Refund Only 2 Homes on 000000 Property County 90.00 5 JOSEPH, DRELIEN Refund of 2 Solid PO BOX 1158 City 0.00 Waste Fees; COATS NC, 27521 -1158 0000028587-2010-2010-90.00 Refund Only 2 Homes on 000000 Property County 90.00 6 JOSEPH, DRELIEN Refund of 2 Solid PO BOX 1158 City 0.00 Waste Fees; COATS NC, 27521 -1158 0000028587-2011-2011-150.99 Refund Only 2 Homes on 000000 Property County 150.99 7 MALENA, TRAVIS B City 0.00 Military MALENA, ANNE M 0002004031-2012-2012-88.76 Refund Exemption 100 PERSON CT 000000 County 88.76 SPRING LAKE, NC, 28390-1685 8 MARTIN, JOHN THOMAS City() 11.15 Situs Correction 1067 COKESBURY RD 0002003670-2012-2012-11.03 Refund FUQUAY VARINA, NC, 27526-000001 County 0.00 6523 9 MARTIN, LIESEL ANNE City() 60.44 Situs Correction 1067 COKESBURY RD 0002008392-2012-2012-59.09 Refund FUQUAY VARINA, NC, 27526-000001 County 0.00 6523 10 NYUMAH, VICTOR City 0.00 Military 32 WOLFPACK LN 0002004053-2012-2012-147.68 Refund Exemption CAMERON, NC, 28326 -6283 000000 County 147.68 11 THORNE, KELLY ELIZABETH City(CIO 6.23 Value Decrease 810 NELLIS AVE 0001413020-2008-2008-5) 16.95 Refund DUNN, NC, 28334 -3206 000000 County 10.72 12 THORNE, KELLY ELIZABETH City(CIO 11.11 Value Decrease 810 NELLIS AVE 0001413020-2009-2009-5) 29.99 Refund DUNN, NC, 28334 -3206 000000 County 18.88 13 THORNE, KELLY ELIZABETH City(CIO 15.86 Value Decrease 810 NELLIS AVE 0001413020-2010-2010-5) 42.78 Refund DUNN, NC, 28334 -3206 000000 County 26.92 14 THORNE, KELLY ELIZABETH 810 NELLIS AVE DUNN, NC, 28334-3206 WM. A. TONY WILDER Revenue Administrator CC: WM. A. TONY WILDER 0001413020-2011-2011- 000000 City(CIO 5) County 3.52 5.98 City Total County Total Total to be Refunded 9.50 Refund 108.31 1,005.35 1,113.66 Value Decrease Date : 03/04/2013 Approved By:. ________ _ TO : HARNETT COUNTY BOARD OF COMMISSIONERS RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND PENALTIES FOR ALL MUNICIPALITIES GODWIN AVIATION LLC 0001395730-2012-2012-City 0.00 Value Decrease P 0 BOX 1147 000000 7,146.24 Refund DUNN NC, 28335 County 6.55 2 SMITH, LYDIA MAYNARD REBATED AND 1205 W PEARSALL REBILLED TO REMOVE STREET 0000048947-2012-2012-City(CI05) 175.34 EXEMPTION FOR 2012; DUNN NC, 28334 -0000 000000 543.06 Refund TPAYER INCOME WAS OVER27,100 County 367.72 WM. A. TONY WILDER City Total 175.34 Revenue Administrator County 374.27 Total Total to be 549.61 Refunded CC: WM. A. TONY WILDER Board Meeting Agenda Item Agenda Item S -D MEETING DATE: March 4, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Award of EMS Vehicles (Ambulances) REQUESTED BY: Gary Pope, Emergency Services Director REQUEST: This is a formal request for the Board to award the EMS Vehicles Bid for ambulances for Harnett County EMS (One New Ambulance and Three Remount Ambulances). Sealed bids were received on February 22, 2013. The following bids were submitted one New Ambulance: 1. Select Custom Apparatus -$122,595 2. Northwestern Emergency Vehicles-$119,839 3. Southeastern Specialty Vehicles-$124,842 The following bids were submitted Three Remount Ambulances: 1. Select Custom Apparatus -N/ A 2. Northwestern Emergency Vehicles -$231,606 ($77 ,202 each) 3. Southeastern Specialty Vehicles-$224,910 ($74,970 each) Bids were received by Renea Warren-Ford, Purchasing Agent, Ricky Denning, EMS Division Chief and Gary Pope, Emergency Services Director. New Ambulance-It is the recommendation that the one new ambulance bid be awarded to Northwestern Emergency Vehicles $119,839. Remount Ambulances -It is the recommendation that the three remount ambulances bid be awarded to Southeastern Specialty Vehicles $224,910. C:\Documents and Settings\gwheeler\Local Settings\ Temporary Internet Files\Content.Outlook\X5535JMM\agendaform2013-Award ofEMS Vehicles (1 New 3 RemountAmbulances).doc Page I of2 0 (I ) :§ 0 (I ) .c £ ~ .c 0 >. (I ) ~ (. ) > ... . c: ~ !.! (I ) "iU CIS ~ Q. (I ) '( j Q. E (I ) <t Q. E w (J ) c: c: 0 .. .. ... . (I ) (I ) 0 ... . ... . ~ 0 0 0 (I ) CIS == (I ) ... . .c (. ) .c ... . (I ) t: : ~ EMS Vehicles (1 New Ambulanc e & 3 Re m o u n t Am b u l a n c e s ) 2- 2 2 - 2 0 1 3 a; 0 0 (J ) z (J ) • 1 New Ambulance $1 2 2 , 5 9 5 . 0 0 $1 1 9 , 8 3 9 . 0 0 $1 2 4 , 8 4 2 . 0 0 3 Remount Ambulances N/ A $2 3 1 , 6 0 6 . 0 0 $2 2 4 , 9 1 0 . 0 0 ($ 7 7 , 2 0 2 ea c h ) ($ 7 4 , 9 7 0 ea c h ) Board Meeting Agenda Item Agenda Item_};-£ MEETING DATE: March 4, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Dunn Erwin Landfill Corrective Action Plan REQUESTED BY: Amanda Bader, County Engineer REQUEST: Request approval of the attached professional services agreement amendment with ECS Carolinas, LLP. These services include construction testing services for the Dunn Erwin Corrective Action Projects. COUNTY MANAGER'S RECOMMENDATION: C:\Users\bblinson\AppData\Local\Microsoft\Windows\Temporary Internet Files\Content. Outlook\ 1 EAS44 IB\agendaform20 13 _testing. doc I of 1 Page AUTHORIZATION FOR PROFESSIONAl SERVICES ECS Carolinas, LLP 726 Ramsey Street, Suite 3 Fayetteville, NC 28301 Phone: Fax: (910) 401-3288 (910) 323-0539 ECS is pleased to provide the professional services outlined in the proposed scope of services below. This contract confirms your authorization for the services requested, and your agreement to the incorporated Terms and Conditions under which the services will be provided. PROJECT INFORMATION Project Name: Dunn Erwin Landfill Corrective Action Plan ECS Project No: Street Address: ECS Proposal No: 33-1349 City, State: Dunn, NC Zip Code: CLIENT INVOICE INFORMATION Firm: Harnett County Attn: Amanda Bader Mailing Address: P.O. Box 759 .. Phone/Fax: City, State: Lillington, NC Zip Code: 27546 PROPOSED SCOPE OF SERVICES AND UNIT RATE SHEET• ECS has been selected to perform construction testing services for the Dunn Erwin Landfill Corrective Action Plan. Billing will be in accordance with the attached unit rate sheet. h . B Work Aut or1zed sv: Signature: Date: Print Name: Title: Firm: Signatory warrants his/her authority to bind the entity represented For ECS Carolinas LLP· .. Signature: Project Manager: Signature: Branch Manager: ECS Proposal No: 33:1349 Mingo Crowley Scott G. Dowell, PE THIS INSTRUMENT HAS BEEN PREAUDITED IN THE MANNER REQUIRED- BY THE LOCAL GOVERNMENT BUDGET Page 1 of3 Date: Date: 18 Feb 13 18 Feb 13 WO Ver. 03-03-06 ECS CAROLINAS, LLP TERMS AND CONDITIONS OF SERVICE These Terms and Conditions of SSIVIce, Including any supplements that may be agreed to, along with the accompanying Scope of SEl<VICeS and Professional Fees constitute the entire Agreement rAGREEMENI] under which Services are to be provided by ECS Md-AUanfic, LLC rECSl (including its employees, officers, successors and assigns) for Client rCLIENT"J (Including Its employaes, officers, successOO! and assigns). 1.0 IN!lEPENOENT CONSULTANT STATUS 1.1 Except as may be othe!Wise ooted herein, ECS shaD SBrllll as an Independent professional consultant to CLIENT and shall have control over, and responsibiUty for, the means and methods for providing the Services under this AGREEMENT, including the retention of Subcontractors snd Subcomultants. Unless expressly stated in ECS' Scope of Services, ECS shall not serve as CLIENT'S agent or representative. 2.0 2.1 SCQPE Of SERVICES N Is understood that the Scope of Services, Professional Fees, and time schedule defined in the Scope of Services are based on lnfonnaUon provided by CLIENT and/or CLIENT'S coo tractors and consultants. CLIENT acknowledges that if this Information Is not current, Is lncomple!e or inaCC<Jrate, or if conditions are discovered !hat could not be foreseen by e reasonable person, the Scope of Services may change, even while the Services are in progress. 3.0 STANDARD OF CARE 3.1 ECS shall strfve to perform lis professional Services In a manner consislent with !hat level of skill and care ordinarily exercised by competent members of the same professloi\ providing similar Services in the same region, under similar conditions during the sems Ume period. No other representation, expressed or Implied, and no warranty or guarantee is Included or Intended In this AGREEMENT, or In any ECS report, opinion, plan or other Document of Service, In connection with ECS' Services. 3.2 CLIENT understands and agr""s that ECS' professional judgment must rely on the facts learned during perlormance Of the Scope of Services. CLIENT acknowledges thai such data collection Is limited to the immediate area that is tested and/or observed. ConsequenHy, CLIENT agrees lhet it shall not bring a claim, based upon facts subsequently learned, regarding condillons between testing points, in areas not evaluated by ECS, or which were not part of the immediate area(s) expllciUy evaluated by ECS. 3.3 ECS' professional Services shaN be provided in a manner consistent with sound engineering and professional practices. ff a sllualion arises that causes ECS to believe compliance with CLIENT'S wishes could result in ECS violating applicable Laws or Regulations, or will expose ECS to claims or other charges, ECS shaD so advise CLIENT. If CLIENTS actions or inaction result In a violation of applicable Laws or RegulaUons, ECS shall have the right to terminate Its Services In accordance with the TERMINATION provisions of this AGREEMENT. ff CLIENT decides to disregl!fd ECS' recommendations with respect to complying with applicable Laws or Regulations, ECS shall determine If ECS Is required to noU(y the appropriate public ofllclals. CLIENT -agrees that such determinations are ECS' sole right to make. CLIENT also agr""s that ECS shall not bear llabinty for faiflng to report conditions thai are CLIENT'S responsibility to report. 4.0 4.1 CLIENT DISCLOSURES CLIENT shaN notify ECS of any known, assumed, or suspected regulated, contaminated, or Hazardous Materials that may exist at the Site prior to ECS mobilizing to the Site. Such Hazardous Materials shall Include but not be limited to any substance which poses or may pose a present or potential hazard to human health or the environment whether contained In a product, material, by-product, waste, or sample, and whether ll exists In a solid, Uquld, semi-solid or gaseous form rHazardous Materials'l 5.0 INFORMATION PROVIQEQ BY OTHERS 5.1 CLIENT waives any claim ofliablfity against ECS regarding any claim for Injury or loss allegedly arising from errors, omissions, or inaccuracies In documents and other lnformaUon tn any form provided to ECS, Including such Information that becomes incorporated into ECS Documents of Service. 6.0 6.1 6.2 7.0 7.1 8.0 8.1 9.0 9.1 9.2 CONCEAI.EO RISKS CLIENT acknowledges that special risks are associated wllh the Identification of concealed oondiUons [I.e., conditions behind a wall, eto., thai are hidden from view, are not readily apparent. or cannot be accessed for testing). Conditions that ECS Infers to exist between testing locations may differ significantly from the conditions !hal exist at the testing points. CLIENT recognizes tha~ because of natural occurrences or human Intervention at or near the Site. actual conditions dlscoVBfed through tesung may be subject to change. ECS will make reasonable efforts to anticipate and identify potential concealed condi6ons for exploration, or testing. However, CLIENT understands !hal such risks cannot be eliminated and agrees that the Scope of Services Is that which CLIENT agrees suits CLIENT'S own risk tolerances. CLIENT may request ECS to evaluale the risks and provide a higher level of exploration to reduce such risks, If desired or appropriate. RIGHI OF ENTRY CLIENT warran!llthat It possesses the autholity to provide right of entry permission for the pertormance of ECS' Services. CLIENT hereby grants ECS and ils subcontractors and/or agents, the right to enter from time to time onto the property owned by CLIENT and/or olher($) in order for ECS to perform the Scope of Services. EN'IlRONMENIAL RISKS CUENT understsnds that a Phase I Errvlronmental Site Assessment (ESA) Is conducted ao!ely to permit ECS to render a professional opinion about the likelihood of the site having 8 Recognized Environmental Condition on, in, beneath, or near the Site at the time the Services are conducted. No rnauer how thorolJ9h a Phase I ESA study may be, findings derived from Ita conduct are highly Umited and ECS cannot know or state for an absolute fact that the Site Is unaffected by ona or more Rt7rognized Environmental CondJUons. Given !he foregoing, CLIENT'S acceptance of this AGREEMENT shall signify thai CLIENT understands the !Imitations associated with Phase I ESAs. OWNERSHIP Of DOCUMENTS With the exception of the oopies of the ECS Documents of Service provided to the CLIENT, all documents, technical repo11s. letters, photos. fleld data, field notes, laboratory last data, calculations, designs, plans, speclflceUons, reports, or similar documents end estimates of any kind furnished by ECS rPooumenls of Service'] maintained in any form deemed appropriate by ECS, are and remain, the property of ECS. Any reconnaissance, data review, observations. testing, surveys or similar Services, analyses and recommendations associated with the Services shall be provided by ECS (including subcontracted Services) for the CLIENT'S sole use. CLIENT understands and agrees that any use of the Documents of Service by anyone other than the CLIENT Is not permitted. 9.3 CLIENT agrees to not use ECS' Pocumants of Service for the Project which has changed in scope, or extenSions of the Project. from the details contemplated in ECS' Documents of Servlca. Any reuse without ECS' writlen consent shaH be at CLIENT'S SOle risk end without liability to ECS or to ECS' subccntractor(s). 9.4 CLIENT agrees that ECS' Documents of Service may not under any circumstances be altered by any party except ECS. CLIENT warrants that ECS' Documents of ServiOa shall be used only and exactly as submitted by ECS. 9.5 Except for dally ftald reports and concrete test reports sent e!eclronically by ECS to CLIENT and CLIENT'S dealgnees, the follOwing shall apply to all electronic files: files In electronic media format of text, data, graphics, or other types !hal are furnished by ECS are furnished only tor convenience, not reliance by the receivlnjJ party. Any conclusion or lnfonnation obtained or derived from such eledronic files will be al tha user's sole risk. ff there Is a discrepancy between the electronic files and the hard copies, the hard copies shall govern. 10.0 ~ 10.1 CLIENT agrees that ECS Is responsible solely for the basic safety of ECS' 911"4'10yees on the Project Site. These responsibilities shall not be Inferred by any party to mean that ECS has responsibility for any portion of sHe safety for any reason. Unless otherwise expressly agreed to In writing, ECS' Scope of Services excludes resporslbillty for any aspect of site safety other than for ECS' own employees, and nothing herein shaW be construed to relieve CLIENT and/or Its other contractors, consultants, or other parties from their responsibility for the safety of their own employees. For active construction sltas, CLIENT also agrees that the General Contractor Is solely responsible for Project Site safety, and that ECS personnel rely on the safety measures proVided by the General Contractor. 11.0 CONSTRUCTION TESTING AND REMEQIATION SERVICES 11.1 CLIENT understands that construction testing and observation Services are conducted to reduce, not eliminate, the lisk of problems arising during or aHer construction or remediation, and that provision of such Services does not create a warranty or guanmtee or any type. 11.2 Monitoring and/or testing Services provided by ECS shall not in any way relieve !he CLIENT'S con!rac:tor(s) from their r .. ponsibiliUes and obligations tor the quality or completeness of construction, nor for complying with applicable Laws and codes. 11.3 The professional actlllitles of ECS, or the presence of ECS employees and subcontractors, shall not be construed to imply ECS has any nasponsibiUty For the means, methods, techniques, sequencing of construction, or procedures of construction selected, for safety precaullons end programs Incidental to the Contractor's Work. Furthermore, ECS doea not end shell no! have or accept authority to supervise, dirac~ control, or stop Contractor's Work. 11.4 ECS strongly recommends !hat CLIENT retain ECS to provide Its Services on a full lime basis to lower the risk of defective or incomplete Work being installed by CLIENT'S contractor(s). IF CLIENT elects to retain ECS on a part time basis for any aspect of construction monitoring and/or testing, CLIENT accepts the increased risks that a signlficanUy lower level of construction quality mey occur and that such defects may not be undetected by ECS' part time observations. Therefore CLIENT waives any end all claims against ECS related to unsatisFactory quality or performance of elemenls observed or tested by ECS on a part time basis. 12.0 CERTIFICATIONS 12.1 CLIENT may request, or governing jurisdictions may require, ECS to provide a 'cerUficaHon" regarding Services provided by ECS. Any 'certification" required ot ECS by the CLIENT, or jurtsdicllon(s) having authorHy over some or all aspects of the Project, shall consist of ECS' inferences and professional opinions based on llmi!ed observations, tests, and/or analyses performed by ECS or. discrete locations end times. ECS' "certification• shall consist of ECS' professional opinion of e condition's existence, but ECS does not guarantee that such condltlon exists, nor does It relieve other parties of responsibUiUes or obligations such parties have. CLIENT agrees nolle make resolution of any dispute with ECS or payment Of any amount due to ECS In any way conUngent upon ECS signing any such "certification' documents. 13.0 BILLINGS AND PAYMENTS 13.1 Billings will be based on 1he unit rates, travel costs, and other reimbursable expenses stated In the Professional Fees. Any Estimate of Professional Fees stated in this AGREEMENT shall not be considered as a not-to-exceed or Jump sum amount unless otherwise explicitly stated In this AGREEMENT. 13.2 Should ECS identify a Changed Condition, ECS shall no!ify the CLIENT of the Changed Cond~ion{s) thai In ECS' professional judgment require an amendment of the Professional fees, time schedule, and/or Scope of Services. ECS and CLIENT shall promptly and in good faith negoUate an amendment to this AGREEMENT. 13.3 CLIENT necognizes that time is of !he essence with respect of payment of ECS' invoices, and that timely payment Is a malenal pan of the consideration of this AGREEMENT. Payment shall be In U.S. funds drawn upon U.S. banks and in accordance with the rates and charges set forth in the Professional fees. Invoices shall be due and payable upon receipt. 13.4 If CLIENT disputes all or pari of an invoice, CLIENT shall provide ECS with written notice stating In detail the facts Of the dispute within twenty-one (21) calendar days of the Invoice date and agrees to pay the undisputed amount of such invoice prornpHy. 13.5 ECS reserves the right to charge CUENT an additional charge of one-and-one-half (1.5) percent (or the maximum percentage allowed by Law, whichever is lower) of the invoiced amount per month for any payment received by ECS more than thirty (30) calendar days rrom tne date or the InvOice, excepting any pornon or the lnvolceo amount 1n atspute ana resolved in favor of CLIENT. Payment will flr!ilt be applied to accrued Interest and then to the unpaid principal amount. Payment of invoices shall not be subject !o unilateral discounting or set-offs by CLIENT. 13.6 CLIENT agrees that Its obligation to pay for the Services Is not contingent upon CLIENT'S ability to obtain finanCing, zoning, approval Of govemmental or regulatory agendas, permits, final adjudication of a lawsuit in which ECS is not involved, upon CLIENT'S successful completion of the Projecl, satllement of a real estate transaction, receipt of payment from CLIENT'S client, or any other event. Retainage shall not be withheld from any payrrenl, nor shall any deductior. be made from any Invoice on account of penalty, liquida!ed damages, or other sums incurred by CLIENT. It Is agreed that all costs and lagal fees Including allomey's fees, and expenses incurred by ECS In enforcing any provision of the AGREEMENT, in perfecting or obtaining a ien, recovery under a bond, collecting any delinquent amounts due, or executing j.Jdgments, shall be reimbul"$ed by CLIENT. ECS Proposal No: 33:1349 Page2 of 3 WO Ver. 03-03-06 13.7 Paymeot of any lniiOice by the CLIENT sl)all be tal<en to mean !hat the CLIENT agrees to the provisions of the AGREEMENT an<! Is satisfied with ECS' Service• an<! Is not awara of any defects In those Services, unless CLIENT has provided notice to ECS In accordance with the DEFECTS IN SERVICE provisions of this AGREEMENT. 14.0 DEFECTS IN SERVICE 14.1 CLIENT and CLIENTS personnel and a:mtractors shall promptly inform ECS of any aclual or suspected defects in ECS' SBIVices, to help ECS take those p!"ompt, effective measures lhat in ECS' opinion will help reduce or eliminate the consequences of any such dl>fect Corrections of defects attributable to ECS' Services shell be provided at no cost to CLIENT, except In the case that the deficiency is directiy attributable to CLIENT-flKnished information, CLIENT shall compensate ECS for the costs of correcting such defects. 14.2 ModillcaUons to reports, documents and plans required as a result of jurtsdlctional reviews or CLIENT requests shall not be considered to be defects in Services. CLIENT shan compensate ECS for Additional Services required as a result of jurisdictional review requirements. 15.0 INSURANCE 15.1 ECS represents that It and Its subcontractors and subconsullants are protected by Worlcers Compensation Insurance, and that ECS is covered by general llab!Dty, automobile and professional liability insurance pollc:les which H deems reasonable and adequate. 15.2 ECS shall furnish certificates of Insurance upon request. The CLIENT is responsible for requesting specific inclusions or limits of coverage, the cost of such Inclusions or coverage increases, if available, will be at the expense of the CLIENT. 16.0 UMITAT!ON OF LIABILITY 16.1 CLIENT AGREES TO ALLOCATE CERTAIN OF THE RISKS ASSOCIATED WITH 1'H!; PROJECT BY LIMITJNe ECS' TOTAL LIABILITY TO CLIENT, SUBJECT TO AVAIJ.ABl.E INSUf!ANCE PROCEEDS, ARJsJNe FROII ECS' PROFESSIONAL ACTS, ERRORS, OR OMISSIONS AND FOR ANY AND ALL CAUSES INCLUDINO tiEOUeENCE, STRICT LIABIUTY, BREACH OF CONTRACT, OR BREACH OF WARR.ANTY, INJURIES, DAMAGES, CLAIMS, LOSSES, EXPENSES~ OR CLAJM EXPENSES (INCLUOINO Rl!ASONASL.E AlTORNEY'S FEES) UNDER THIS AGREEMENT TO THE FULLEST EXTENT PERIIJTTED BY LAW, TO $5,000, OR THE TOTAL FEE FOR THE SERVICES RENDERED, WHICHEVER IS GREATER, 16.2 CLIENT agrees that ECS shall not be responsible for bodily InJury and property damage or losses artslng dlrectiy or Jndlrectiy, In whole or In part, from acts or omissions by the CLIENT, Its employees, agents, staff, consultants or subcontractors or by any other person or combination of persons to the extent Such Injury, damage, or loss is caused by acts or omissions of CLIENT, fts employees, agents, staff, consultants or subcontractors. 17.0 INDEMNIFICATION 17.1 ECS agrees, §Ubject to the limlla!lon of liablllly provisions of this AGREEMENT, to hold harmless an<! Indemnify CliENT from and against damages arising from ECS' negligent perfonnance of Its Services to the extent that such injury is found to be caused by ECS' negligent acts, errors or omissions, spec:lficany excluding any damages caused by any third Party or by the CLIENT. 17.2 To the fullest extent permitted by applicable Law, CUENT agrees to indemnify, defend, and hold ECS harmless from and against any and aflllab!Uty, claims, damages, demands, fines, penalties, costs and expenditul'<ls (including reasonable attorneys' fees and costs ol litigation defense andfor settlement) ["Damages"] caused In whole or in part by the neglig<!lrlt acls, errors, or omissions of the CLIENT and CLIENTS employees, agents, staff, contractors, subcontractors, consultants, and clients, provided such Damages are attributable to: (a) the bodily injury, personal Injury, sickness, disease andlor death of any person; (b)lnjury to or loss of value to tangible personal property; or (c) a breach of this AGREEMENT, except to the extent such Damage Is caused by the sole negligence or willful misconduct of ECS. 17.3 Ills specffically understood and agreed that In no case shall ECS be required to pay an amount of Damages dlsproporUonal to ECS' culpabUtty, or any •here of any amount levied lo recognize more than actual economic damages, sub!ec\ to any fimltatlons of llabiiTt\1 ang INDEMNIFICATION orovlsjons conlaioed jn !hi:! AGREEMENT. 17.4 IF CUENT IS A HOIIEOWNER, HOMEOWNERS' ASSOCIATION, CONDOMINIUM OWNER, CONDOMINIUII OWNER'S ASSOCIATION, OR SIMILAR RE8JOEHTIAL OWNER, ECS RECOIIMENOS THAT LEGAL COUNSEL BE RETAINED BY CLIENT BEFORE ENTERINO INTO THIS AGREEMENT TO EXPJ..AlN CLIENT'S. RIGHTS, AND THE LIIIITATIONS, AND RESTRICTlONS ltoiPOSED BY THlS AGREEMENT. CUENT AGREES THAT FAIWR~ OF CLIENT TO RETAIN SUCfl COUNSEL 5HAI.l BE A I(NOWINCl WAIVER OF LEOAL COUNSS. AND SHAI.l Ncrr BE All.OWEO ON GROUNDS OF AVOIDING ANY PROVISION OF THlS AGREEMENT. 17.5 If CLIENT Is a residential builder or residential developer, CLIENT shell in<femnify, defend and hold harmless ECS against any and all c:lalms or demands due to Injury or loss initiated by one or more homeowners. unlt..awners, or their homeowners• association, cooperative board, or similar entity against CLIENT Which results in ECS being brought Into the dispute. 18.0 CONSEQUENTIAL DAMAGES 18.1 CUENT shall not be liable to ECS and ECS shall not be liable to CLIENT for any consequential damages Incurred by either due to the fault of the other, regard! ass of the nature of the fault, or wherever committed by the CUENT or ECS, their employees, consuttants, agents, contractors or subcontractors, or whether such liability arises In breach of contract or warranty, tort (Including negligence), Statute, or any other cause of action. Consequential damages include, but are not limited to, loss of use and loss of profiL 18.2 ECS shall not be liable to CLIENT, or any entity engaged dlrectiy or lndlrectiy by CLIENT, for any Jiquldated damages due to any fault. or failure to ac~ in part or in total by ECS, Its employees, agents, or subcontractors. 19.0 SOURCES OF RECOVERY 19.1 All claims for damages related to the Services provided under this AGREEMENT shall be made against the ECS entity contracting with the CLIENT for the Services, and no other person or entity. CLIENT agrees thai it sheD not name any affdiated entity including parenL peer, or subsidiary entity or any individual officer, director, or employee of ECS, unless such ctalms are based on actS unrelated to tne proVISion Of SBIVJces unaer tnls AGREEMENT. 19.2 CUENT agrees that It will not seek Damages from any Individual assoc:lated with ECS as an officer, prtnclpal, partner, employee, or owner, from any and all claims or liability for Injury or Joss thai would require such Individual to relinquish personal assets to satisfy such claim. 20.0 THIRD PARTY CLAIMS EXCLUSION 20.1 This AGREEMENT shall not create any rights or benefits to parties olher than CLIENT and ECS. No third-party shall have the right to rely on ECS' opinions rendered in connection with ECS' Services without both CLIENTS and ECS' written consent and the thirdiX'rty's agreement to be bound to the same terms and conditions contained In this AGREEMENT as CLIENT, an<! third-party's agreement that ECS' Scope of Services performed is adequate. 21.0 DISPUTE RESOLUTION 21.1 All c:laims, dispules Of controversies rDisputes'] arising out of, or in relation to the interpretation, application or enforcement of !h;s AGREEMENT shall be decided as follows: 21.1.1 CLIENT and ECS agree to attend a dispute resoJutlon meeting within fourteen (14) days of lden11flcaUor of a Dispute by either party. CLIENT and ECS sgree to negotiate In good faith to resolve the Dispute. 21.1.2 Should negotiation fall to resolve the dispute, CLIENT and ECS agree to mediate !hair dispute via a mediator selected by either party. and acceplable to both parUes. 21.1.3 Should medlaUon fall to result In resolution of the Dispute, CLIENT and ECS agree that litigation may be brought by either party. 21.2 Should third-party dispute resolution be required, through mediation or IJUgatlon, the non- prevailing party shall reimburse the pnovamng party for the prevailing party's documented legal costs, In addition to whatever other Judgments or se!!lement sums may be due. Such legal costs include. but are not be limited to, reasonable attorney's fees, oourt costs, forensic consultants and expert witness fees, and other documented expenses. 21.3 Where legal action is brought by Bither party to resolve a dispute. the claim shall be brought and tried in the jucflcial jurisdiction of the county in which ECS' office contracting with the CLIENT is located. CLIENT waives the right to remove any litigation action to anY other jurisdiction, unless mutually agreed !o by both parties_ 21.4 This AGREEMENT Including all matters related to performance and remedlatlon shall be interpreted according to the substantive Laws of the slate of Virginia (but not including its· choice of Jaw rules). 22.0 CURING A BREACH 22.1 A party that believes the other has materially breached this AGREEMENT shall Issue a written tennlnation notice to the oJher, Identifying the cause for termination Within five (5) business days of Identifying such cause. Both parties shall then bargain promptly and In good faith to cure such cause. If an acceptable cure can be achieved within fourteen (14) e&lendar days from the date of the terminetfon noUce, the parUes shall commit their understandings to writing and termination shall not occur. 22.2 Either party may waive any rtgh! pro;ided by this AGREEMENT in curing an actual or alleged breach; however, such waiver shall not affect future application of such provision or any other provision. 23.0 TERMINATION 23.1 CLIENT or ECS may terminate this AGREEMENT for breach of this AGREEMENT, or for any other reasons Which may anse. In the event of termination, the party effecting terrmnatlon shall so notify the other party in writing, and terminalion shall become effective fourteen (14) calendar days after receipt of the termination notice. 23.2 Irrespective of which party shall effect terrnlnallon, or the cause therefore, ECS shall prompUy render to CLIENT a final Invoice an<! CLIENT shall Immediately compensate ECS for Services rendered and cos is Incurred, in accordance with ECS' prevailing Fee Schedule and expanse reimbursement policy. &rvices shall include those rendered up to the ~me of termlnatlon, as well as those associated with termination itself, Including without limitation, demoblfizlng, modlfylng schedules, and reassigning personnel. 24.0 TIME BAR TO LEGAL ACTION 24.1 Unless prohibited by Law, and notwithstanding any Statute that may provide addJUonal proteclion, CLIENT and ECS agree that claims by either party artslng out of lhls AGREEMENT or the Services provided hereunder shaD not be Initiated more than two (2) years from the time the party knew, or should have known, of the condition giving rise lo its claim, and shell under no circumstances be Initiated more than three (3) years from the date of substantial cornpleUor of ECS' SB!Vices. 25.0 ASSIGNMENT 25.1 Except for Services normally or customarily subcontracted by ECS in the performance of its Services Including, bu1 not limited to surveyors, specialized consultants, drilling and excavallng subcontractors, and testing laboratories, neither the CLIENT nor ECS may delegate, assign, sublet or transfer its duties. responsibilities or interests In this AGREEMENT Without the written consent of the other party. 26.0 SEVERABILITY 26.1 Any provision of this AGREEMENT later held to violate a Law, Statute, or Regulation, shall be deemed VOid, end all remaining provisions shell continue In full force and effect. CLIENT an<! ECS shall endeavor to qulcl<ly replace a voided provision With a valid substltute that expresses the Intent of, or at least addresses, the Issues covered by the original provision. 27.0 TITLES 27.1 The tlUes used In this AGREEMENT are for general reference only and are not part of the AGREEMENT. 28.0 SURVIVAl, 28.1 All obligations arising prior to the termination of this AGREEMENT and all provisions of this AGREEMENT allocating responsibility or liability between the CLIENT and ECS shall survive the substantiel completion of Services an<! the tenmlnallon of this AGREEMENT. 29.0 ENTIRE AGREEMENT 29.1 This AGREEMENT including the Scope ol Services and Professional Fees and all exhibits, appen<fixes, and other documents appended to it constitute the entire AGREEMENT between CLIENT and ECS-CLIENT acknawiedges that an prior understandings an<! negotialions are superseded by 1his AGREEMENT. CLIENT acknowledges acceptance of lhesR IRrmll by submitting a GLIENT Work AUihorl:zallon to ECS. 29.2 CLIENT and ECS agree that subsequent modifications to this AGREEMENT shall nol be binding unless made in writing and signed by authorized representatives ofbolh parties. 29.3 All preprinted Terms and Concfrtions or CLIENTS purchase order or Work Authorization, or other service acknowledgement forms, are Inapplicable and superseded by this AGREEMENT. 29.4 If CLIENT fails to provide ECS With a signed copy of 1his AGREEMENT or a Work Aulhorlzalion, by the act of aulhori2ing and accapling the services of ECS, CLIENT agrees to be fully bound by the terms of this AGREEMENT as if signed by CLIENT. < END OF TERMS AND CONDITIONS OF SERVICE > ECS Proposal No: 33-1349 Page 3 of3 WO Ver. 03-03-06 2013 ECS CAROLINAS, LLP FAYETTEVILLE NC FEE SCHEDULE Chief Engineer ............................................................................................................................ $125.00/hour Principal Engineer ....................................................................................................................... $115.00/hour Senior Engineer .......................................................................................................................... $ 90.00/hour Construction Servict;ls Manager .................................................................................................. $ 90.00/hour Project Engineer/Manager .......................................................................................................... $ 65.00/hour Staff Engineer .............................................................................................................................. $ 65.00/hour QMS Certified NCDOT Technician(**) ....................................................................................... $ 45.00/hour Masonry Inspector(**) ................................................................................................................ $ 45.00/hour Senior Foundation Technician(**) .............................................................................................. $ 38.00/hour Senior Soil or Materials Technician(**) ...................................................................................... $ 36.00/hour Soil or Materials Field or Lab Technician .................................................................................. $ 32.00/hour Welding Technician, Shop or Field Inspection: AWS CWI ...................................................................................................................... $ 70.00/hour Levell ........................................................................................................................... $ 70.00/hour Level II .......................................................................................................................... $ 75.00/hour Secretary ..................................................................................................................................... $ 38.00/hour Transportation via company or private vehicle ........................................................................... $ .65/mile Note: Charges for engineering and technical personnel will be made for time spent in the field, in engineering analysis, in preparation of reports, and in travel portal to portal from our office. There will be no minimum time fee assessed. (**) = Overtime = Standard Rate x 1.50 for over 8 hours per day and outside normal business hours of 7:00am to 5:00pm, holiday, Saturday, or Sunday EQUIPMENT and LABORATORY R-Meter ........................................................................................................................................... $ 50.00/day Core machine .................................................................................................................................. $100.00/day Moisture Emission Test Kit ............................................................................................................. $ 35.00/kit Nuclear Density and Moisture Measuring Equipment. ................................................................... $ 20.00/day Thin Lift Nuclear Gauge .................................................................................................................. $ 20.00/day Ultrasonic Equipment. ..................................................................................................................... $ 50.00/day Dipstick ........................................................................................................................................... $ No Charge Floor Flatness/Levelness Meter ...................................................................................................... $ No Charge Windsor Probe Equipment .............................................................................................................. $ 100.00/day Standard Proctor (ASTM 0-698) 4 inch mold ......................................................... : ....................... $125.00 each 6 inch mold ................................................................................ $135.00 each Modified Proctor (ASTM D-1557) 4 inch mold ................................................................................ $165.00 each 6 inch mold ................................................................................ $175.00 each Testing of Cylinders, Prisms and Core Specimens: Compressive Strength of grout prisms (3.5"x3.5"x7") ....................................................... $ 12.00 each Compressive strength of mortar cubes ............................................................................. $ 10.00 each Compressive strength of concrete cylinders, {ASTM C-39)(4"x8") .................................. $ 9.00 each Compressive strength of concrete cylinders, {ASTM C-39)(6"x12") ................................ $ 11.00 each Core Specimen (including sample preparation) ............................................................... $ 25.00/test Extra Molds-cylinder molds included in compressive strength rate (per case of 30) $ 50.00/case Note: The above charges will be made for tests and equipment operated by ECS CAROLINAS, LLP personnel in addition to personnel charges already listed. Soil Samples requiring a turnaround time of less than 5 days will be billed at 1.5 times the test unit rate. Page 1 ofl COUNTY OF HARNETT CAPITAL PROJECT ORDINANCE DUNN-ERWIN CORRECTIVE ACTION PROJECT BE IT ORDAINED by the Board ofCommissioners ofthe County ofHarnett, North Carolina, sitting as the governing board for Harnett County, that, pursuant to Section 13.2 of Chapter 159 ofthe General Statutes ofNorth Carolina, the following capital project ordinance is hereby adopted: Section 1. The project authorized is the construction of the Dunn-Erwin Corrective Action Project. The work includes a system for the collection of groundwater and leachate, a pump station and force main to convey groundwater and leachate to the Harnett County sewer system, convenience center improvements, and transfer station rehabilitation. Section 2. The officers of this unit are hereby directed to proceed with the capital project within the terms of the grant documents, loan documents, and the budget contained herein. Section 3. $1,750,000.00 has been appropriated for the project: For internal reporting the following breakdown is proposed: Construction Cost Estimate Construction Contingency Engineering Geotechnical Services Capital Outlay Materials and Supplies Legal & Administration Survey Issuance Cost Total $1,306,030 $130,600 $130,000 $20,000 $30,000 $30,000 $20,000 $3,370 $80 000 $1,750,000 In accordance with section 4 of the County Budget Ordinance, the Finance Officer and County Manager is hereby authorized to approve the transfer of appropriations between expenditure line items in the project with the exceptions that change orders affecting engineering and construction may not exceed 5% (cumulative) of the project total without prior approval of the Board. Change orders within the 5% limitation will be presented to the Board at the next regular meeting of the Board of Commissioners as in accordance with G.S. 159-15. Section 4. The following revenues are anticipated to be available to complete this project: Special Obligation Bonds Grant-DENR Total Page 1 of2 $1,720,000 30 000 $1,750,000 Section 5. The Finance Officer is hereby directed to maintain within the Capital Project Fund sufficient specific detailed accounting records to satisfy the requirements of the grantor agency, the grant agreements, and federal regulations. Section 6. Funds may be advanced from the General Fund for the purpose of making payments as due. Reimbursement requests should be made to the grantor agency in an orderly and timely manner. Section 7. The Finance Officer is directed to report, on a quarterly basis, on the financial status of each project element in Section 3 and on the total grant revenues received or claimed. Section 8. The Budget Officer is directed to include a detailed analysis of past and future costs and revenues on this capital project in every budget submission made to this Board. Section 9. Copies of this capital project ordinance shall be furnished to the Clerk to the Board of Commissioners, and to the Budget Officer and the Finance Officer for direction in carrying out this project. Adopted this L/i+l day of te:br-v.o..l'l y , 2013 ATTEST (SEAL) Page 2 of2 Addendum One These additional terms are incorporated by reference into the foregoing agreement between ECS (hereinafter "ECS") and the County of Harnett (hereinafter "Client") By initial or signature below, the parties agree that these additional terms are fully binding upon the parties just as if it were fully set forth in the body of the Agreement. Term of Contract: The term ofthis contract is from March 5, 2013 to December 1, 2013. Cost of Contract: The total cost of the contract per Paragraph 13 and the Fee Schedule will not exceed $20,000.00 Controlling Law: This contract shall be govemed by and construed in accordance with the laws ofthe State ofNorth Carolina. Force Majeure: ECS and Client agree that they shall not be responsible to one another for any delays, damages, costs, expenses, liabilities or other problems that may arise as a result of force majeure. A "force majeure" is defined as any event arising from causes beyond the reasonable control of consultant and/or county, including but not limited to fire, flood, unusual inclement weather, acts of God, civil strikes or labor disputes, riots, acts or failures of government. Conformance with Law: ECS shall at all times during the tenn of this contract strictly adhere to all applicable local, federal and state laws and implementing regulations as tl1ey currently exist and may hereafter be amended. ECS shall also require compliance with these statutes and regulations in subcontract agreements, if any, permitted under this contract. ECS also shall comply with any and all laws and regulations prohibiting discrimination in the specific programs(s) which is/are the subject of this contract. In consideration of and for the purpose of obtaining any and all federal and/or state financial assistance, ECS makes the following assurances and certification, upon which Client relies. a. ECS will not discriminate against any person on the basis of race, color, national origin, age, sex, religion, and/or handicap, in performance of work under this contract. b. At all times during the performance of this contract, no qualified individual with a disability shall, by reason of such disability, be excluded from participation in, or denied benefits of the service, programs, or activities performed by ECS, or be subjected to any discrimination byECS. c. ECS certifies that, at the time of this certification, it does not knowingly employ or contract with an illegal alien. Hamett County is an equal employment opportunity employer. Harnett County is a federal contractor, and therefore the provisions and affirmative action obligations of 41 CFR § 60-1.4( a), 41 CFR 60-741.5(a), and 41 CFR 60-250.4 are incorporated herein by reference, where applicable. 1 Use of County Name prohibited: ECS may not use the name or other identifying characteristic of Client or its employees in any advertisements or promotions. Non-appropriation Clause: ECS acknowledges that Client is a governmental entity and the contract validity is based upon the availability of public funding under the authority of its statutory mandate. In the event that public funds are unavailable and not appropriated for the performance of Client's obligations under this contract, then this contract shall automatically expire without penalty to Client thirty (30) days after written notice to ECS of the non- appropriation of public funds. This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal ~trol A~ . By: ta_.. r!V){)'\._ ,1 , Name: s;aJ3Iins ~ -~t~) Title: County Finance Officer County of Harnett By: Joseph Jeffries Interim County Manager Date: __ _ ECS Sct>tr G Dc:.~ou t.""-L-l- l)J?-Ai>JC.:tt M~ rt../ VP 2 Agenda Item 5 -F Harnett COUNTY Proclamation Girl Scout Week WHEREAS, March 12, marks the 101st anniversary of Girl Scouts ofthe USA, founded by Juliette Gordon Low in 1912 in Savannah, Georgia; and, vvvvw.uarnett.org WHEREAS, throughout its distinguished history, Girl Scouting has inspired millions of girls and women with the highest ideals of courage, confidence, and character; and, WHEREAS, through the Girl Scout leadership experience girls develop the skills and lessons that will serve them a lifetime so that they may contribute to their communities; and, WHEREAS, Girl Scouting takes an active role in increasing girls' awareness of the opportunities available to them today in math, science, sports, technology and other fields that can expand their horizons; and, WHEREAS, Girl Scouts has shaped the lives of 53 percent of female senior executives and business owners, 60 percent of women in Congress, and virtually every female astronaut; WHEREAS, more than 3 million current Girl Scout members nationwide will be celebrating 101 years of this American tradition, with nearly 50 million women who are former Girl Scouts and living proof of the impact of this amazing Movement; WHEREAS, in partnership with more than 10,000 adult volunteers, Girl Scouts-North Carolina Coastal Pines serves more than 35,000 girl members in 41 central and eastern North Carolina counties, including more than 1,300 adult and girl members in Harnett County. NOW, THEREFORE, we, the commissioners of the County of Harnett do hereby applaud the commitment Girl Scouting has made to support the leadership development of girls and proudly proclaim the week ofMarch 11, 2013, as "Girl Scout Week in the County ofHarnett." Adopted this 4th day of March 2013. HARNETT COUNTY BOARD OF COMMISSIONERS Jim Burgin, Chairman Gary House, Vice Chairman Beatrice B. Hill Joe Miller C. Gordon Springle strong roots • new growth Gina Wheeler From: Sent: To: Cc: Subject: Attachments: Chairman Jim Burgin Laura Douglass [ldouglass@nccoastalpines.org] Friday, February 15, 2013 12:24 PM jimburgin@charter.net; Jim Burgin; commissioners Gina Wheeler Girl Scout Week Proclamation Request 2013 Girl Scout Week Local Proclamation.docx Harnett County Board of Commissioners Dear Chairman Burgin: Girl Scouting has been inspiring and teaching girls in North Carolina for more than 93 years. Our first troop was organized in 1918,just a scant six years after Juliette Gordon Low founded Girl Scouts of the USA on March 12, 1912. More than 1,300 girls and adults are Girl Scout members in Harnett County, and more than 90,000 throughout North Carolina. Throughout its history, Girl Scouting has welcomed girls and women from every background to join the movement. Our mission is to build girls of courage, confidence, and character who make the world a better place. The Girl Scout Leadership Experience helps girls develop skills that will serve them throughout their lives so that we may contribute to our community, our county and our great state. I and my sister Girl Scouts are asking that you proclaim March 10-16, 2013, as Girl Scout Week in Harnett County. I am attaching a sample proclamation to help you and your fellow County Commissioners as you make your decision to honor an organization that has brought much to our community and its citizens. Thank you for your consideration. Sincerely, Laura Douglass girl scouts north carolina coastal pines Laura Douglass Membership Director-Harnett & Moore Counties Scouts-Pines 482 E. Connecticut Avenue Southern Pines, NC 28387 Moore 910-692-6156 I Harnett 910-897-4263 Cell# 919-915-0634 1 Board Meeting Agenda Item Agenda Item .S-G MEETING DATE: March 4, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Public Utilities Writeoffs for 4th Qtr 2012 REQUESTED BY: Steve Ward, HCDPU REQUEST: Enclosed are the delinquent accounts determined to be at write-off status for the fourth quarter of2012. All of these accounts have been delinquent for more than three years and total $12,206.19. The facilitation of these write-offs is an important step in a continuing effort to effectively manage our collections and bad debt. HCDPU is currently using the Local Government Debt Setoff Program and On-Line Collections, Inc. to help collect our delinquent accounts. We are happy to report that we have recovered over $407,000 in bad debt previously written off through the Debt Setoff Program. Please place this request on the consent agenda at the next available meeting. COUNTY MANAGER'S RECOMMENDATION: \\hcfilel \Puusers\sward\My Documents\collections\writeoffs 4th-qtr 2012.doc I of! Page HARNETT COUNTY DEPT OF PUBLIC UTILITIES QUARTERLY DELINQUENT WRITE OFFS DEC 2009 BALANCE TO NAME ACCOUNT# NOTES WRITE-OFF ALLEN, JAMES E 139291-65123 RET BILL $65.09 ALSTON, BRYANT L 144555-51 045 $135.40 ANDYS CHEESESTEAKS 132901-79644 $384.16 ANGLE, AMANDA 137587-81609 RET BILL $23.03 ARELLANO, ESTEBAN D 136559-28879 RET BILL $55.53 ARIAS, MELISSA N 140025-4235 $16.95 AYALA, JOANN 1 03863-19053 $35.57 BATES, VIRGINIA 1 00965-21144 $52.47 BLACK JR, RICHARD H 79895-45506 $177.24 BONILLA, ANGELA 1 07605-35895 RET BILL $203.07 BRADLEY JR, LUCIOUS 85479-5029 $26.11 BRIDGES, RANDI 142665-5127 4 RET BILL $22.65 BROWN, JAMES 109741-35547 $129.30 CABRERA, JELVIN 1 08085-38867 RET BILL $40.40 CASTILLO, MICHAEL 144595-77374 $192.50 CHAMBERS, REBECCA 1 04353-45435 RET BILL $33.37 COX, JEREMY 71821-43018 $58.27 CUFFlE, JOYCE 142413-69621 $22.38 DAVILA, LEOBARDO R 98963-8094 7 RET BILL $65.66 DENNING, ANN 145053-38784 RET BILL $132.41 DEVANE, KRISTEN 132601-3391 $52.03 DRUCKEMILLER, DESERE 115643-51534 $19.33 DUNN, L YNNZEE R 138497-2334 RET BILL $182.27 ELLIS JR, STEPHEN 1 09323-3957 4 $33.19 FLORES, HEATHER 140077-84820 $53.98 FRYE, SHAVONNE 128007-25560 $84.97 GADSDEN-HURT, TIFFANEE 1 09889-67096 $147.96 GASTER EST, MARGARET 1 08717-35856 RET BILL $1,413.31 GERMAN, MICHAEL PHILLIP 81811-58254 $70.95 GLOVER, DEANNA 137785-42106 $36.89 GRANT, ALEXIS 135629-56613 $140.53 GRIFFITH, HELEN 40727-51006 DEC'D/RETBILL $231.50 GUERRA, LUIS FELIPE R 142833-204 77 $28.92 HART, JEFFREY 11 0263-37778 $226.10 HART, TODD 1 06043-49130 $63.91 HAWKES, HEATH C 138143-33 769 $65.21 HOBSON JR, HARVEY 84773-23430 RET BILL $202.25 HODGES, LATISHA L 143707-36542 $42.00 HOLDER, JONATHAN C 25871-1550 BANKRUPT $224.44 HOOKS, DAVID S 95345-81833 $7.50 HOWARD, BRANDl 139691-20515 RET BILL $100.82 JACKSON, ADAM 140535-45642 $37.23 JACKSON, THEODORE 139823-75141 RET BILL $50.40 JOHNSON, CRYSTAL 81977-65755 $28.70 KELLY, GINA 114555-46780 $15.46 LONGMIRE, JOANN 139219-43349 $280.20 MACE, JESSICA 13 783 7-8284 $7.38 MASON, PAUL 98907-48183 $52.40 MCCULLER, JACQUELINE P 49337-6462 $421.14 Page 1 HARNETT COUNTY DEPT OF PUBLIC UTILITIES QUARTERLY DELINQUENT WRITE OFFS DEC 2009 BALANCE TO NAME ACCOUNT# NOTES WRITE-OFF MCDOUGALD,RADSHAD 145687-75889 RET BILL $43.15 MCLEAN, PORTIA 133931-65482 $38.52 MCNEILL, CHERELLE T 141541-78004 $84.57 METZ, SHAWN A 140299-5003 RET BILL $68.88 MILLER, KRYST AL 138217-4545 RET BILL $110.89 MOORE, ASHLEY 118517-23876 LEAKS $413.07 MOORE, DANNY ROSS 143313-7667 $84.84 MOORE, KIMBERLY 19079-6886 $62.80 MULLINS, STEPHANIE 140875-55980 $22.91 NASH EST, BILLY GERALD 144 717-33864 $210.00 NEAL, MILLARD 125561-1197 $58.51 OCHOA, CLAUDIA M 1 07323-37870 $103.86 OVERTON, KATHY 203-42974 $77.50 PARSONS, CHRISTOPHER L 137557-4477 $137.95 PITTMAN, WILLIAM 140903-65586 RET BILL $19.09 PITTS, ANTHONY 11389-4494 RET BILL $108.20 POTTER, KATHERINE 138705-74947 RET BILL $29.37 PULLEN CUSTOM HOMES 80855-83437 $17.50 QUICK, GLORIA ANN 125579-43535 $62.71 RAGLAND, STEPHANIE 2159-24740 $31.86 RANDOLPH, CELIA 132355-87894 $85.82 REID II, JAMES 140213-23559 RET BILL $46.84 RICE, TRACY 85949-77591 RET BILL $430.77 ROBERTSON, TAMARA B 144 769-4885 $21.96 ROLLER, DAVID 138083-25591 $61.01 ROLLINS, CRYSTAL 145511-60763 $117.65 ROYAL, CANDY L 128863-6795 $95.43 SECHRIST, AMOS 134139-62953 $20.00 SMILEY, JAMES 144329-7902 $210.00 SMITH, NICOLE 82921-4684 SEWER ONLY $592.00 STEPHENS, HENRY 55005-4534 7 RET BILL $354.55 SUMMIT CREST HOMES 55223-53805 BANKRUPT $373.20 TART, CHARLES E 111167-84700 $87.14 THACKER, DOROTHY P 16057-38330 RET BILL $87.50 THOMAS, KIMBERLY S 139791-62756 RET BILL $20.50 TITAN HOMES 53443-76860 BANKRUPT $498.20 TIVIS, KEAGAN 133755-2751 $71.36 TORRENCE, FREEDOM S 95367-23438 $16.97 TRIVETTE, JENNY 104677-72838 RET BILL $9.57 TYNDALL JR, JOEY 117681-17539 $34.35 TYNER, GARY 91315-50683 $115.38 UNRUH, PAMELA 145209-3621 $13.48 URBANO, NOE 85391-1795 RET BILL $50.88 VELAZQUEZ, MARIO 0 122723-73834 $24.59 VITT, AMBER 138337-23413 $40.22 WARD, TERRENCE PAUL 13153-71216 $105.19 WATERS, JONATHAN 107607-36494 $46.87 WHITE, MICHAEL 137255-3429 $113.57 WILSON, JULIUS E 1 07973-34 796 DECEASED $86.20 WOJCIK, JOSEPH 143087-51173 $35.78 Page 2 NAME WOOD, TAMMY A HARNETT COUNTY DEPT OF PUBLIC UTILITIES QUARTERLY DELINQUENT WRITE OFFS DEC 2009 ACCOUNT# 35683-60985 Page 3 NOTES TOTALS: BALANCE TO WRITE-OFF $360.50 . $12,206.19 Board Meeting Agenda Item Agenda Item S-H MEETING DATE: March 4, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Water Line Extension Request REQUESTED BY: Steve Ward, HCDPU REQUEST: This is a formal request for the Board to consider a water line extension request to serve two citizens along Flowers Drive in Harnett County. The proposed water line extension of 1,500 feet will cost approximately $8,946 and will be installed by HCDPU personnel. One of the citizens has a dry well and HCf5PU currently has an existing water line that serves the majority of residents along the street. This extension will be funded from a combination of tap fees from the customers and budgeted funds from HCDPU for other capital improvements. This extension request meets the 50 point threshold for Board consideration as outlined in the HCDPU ordinance. Please place this item on the consent agenda at the next available meeting. COUNTY MANAGER'S RECOMMENDATION: \\hcfilel \Puusers\sward\My Documents\Old Harddrive\Line Extensions\Flowers Drive Line Extension Agenda Request 2- I8-13.doc Page 1 of I Line Extension Worksheet Applicant: Mary Warner Location: 564 Flowers Drive .~~~~~==~------------------------(919) 478-3292 Justification: This customer requested a water line extension be installed to serve his property since their well is going dry per the home owner. The proposed water line extension of 1 ,500 linear feet will cost approximately $8,946 to serve two households. Craig Albert at 612 Flowers Drive contacted HCDPU and informed staff that he currently has to wash cloths at a separate location to avoid water demand issues. Mr. Albert informed HCDPU that he would tap onto the new water main if made available. 1. Public Health (up to 40 pts maximum) A. Dry Well = 20 pts per residence score 20 B. Contaminated Well = 30 pts per residence score 2. Cost Feasibility (up to 40 pts maximum) A. Total Cost per connection = $500 or less = 40 pts score B. Total Cost per connection= $501 -$1000 = 30 pts score C. Total Cost per connection= $1001-$3000 = 25 pts score D. Total Cost per connection= $3001 -$5000 = 20 pts score 20 -E. Total Cost per connection= $5001 -$8000 = 10 pts score --F. Total Cost per connection= $8001 or greater= 0 pts score 3. Contributed Capital (up to 20 pts maximum) A. % of total cost contributed = 7 5% -100% = 20 pts score B. %of total cost contributed= 50%-74% = 15 pts score c. % of total cost contributed = 25% -49% = 10 pts score 10 D. %of total cost contributed= 24% or any amount score greater than the prevailing tap fee = 5 pts This line extension request does _X_ or does not __ meet the 50 point threshold for Board consideration. Steve Ward, HCDPU Director HCDPU Flowers Drive Water Main CONSTRUCTION COST ESTIMATE 1/3/2012 # Item description Quantity Unit 1 4" PVC SDR-21 Water main 500 LF 2 2" PVC SDR-21 Water main 1,000 LF 3 4" Gate valve 1 EA 4 2" Gate valve 2 EA 10 4" Grip Rings 2 EA 11 4" Cap w/ 2" MIP threaded port 1 EA 12 2" Galv. 90 degree Elbow 1 EA 13 2" x 24" Galv Nipple 1 EA 14 2" x 36" Galv Nipple 1 EA 15 2" Brass Male Adapters 1 EA 16 Concrete for Blocking 2 CY 17 Gravel Roadway/Driveway Repair 5 TN 18 Valve Collar 3 EA 19 Valve Box 3 EA 20 Concrete Valve Marker 4 EA Water Main-Cleanup and Testing-Including all 21 pressure testing erosion control measures, seeding 1,500 LF and miscellaneous cleanup necessary for completion of the project. 22 Meter Setter 3/4" x 5/8" 3 EA 23 Meter Boxes 3 EA 24 Meter Box Lid 3 EA 25 2" x 3/4" Saddle 3 EA 26 3/4" Corp Stop 3 EA 27 3/4" PEX Pipe 300 FT MATERIAL TOTAL: 28 Backhoe 8 HR 29 Trencher 8 HR 30 Dump Truck 8 HR 31 Service Truck 8 HR 32 3 Man Crew 8 HR 33 1 Supervisor 8 HR LABOR TOTAL: Engineering I Administrative Services: ITOTAL PROJECT COST: Unit Cost Extended Cost $1.91 $955.00 $0.68 $680.00 $365.00 $365.00 $174.75 $349.50 $38.85 $77.70 $53.00 $53.00 $4.95 $4.95 $21.95 $21.95 $32.75 $32.75 $9.35 $9.35 $110.00 $220.00 $22.00 $110.00 $13.50 $40.50 $45.00 $135.00 $19.75 $79.00 $1.00 $1,500.00 $112.00 $336.00 $28.85 $86.55 $12.75 $38.25 $18.75 $56.25 $22.85 $68.55 $0.38 $114.00 $5,333.30 $60.00 $480.00 $60.00 $480.00 $60.00 $480.00 $60.00 $480.00 $55.00 $440.00 $55.00 $440.00 $2,800.00 $813.33 $8,946.631 Board Meeting Agenda Item Agenda Item S-I. MEETING DATE: March 4, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Request permission to receive full allocation of grant funds REQUESTED BY: Tyrone L Fisher, County Extension Director REQUEST: Harnett County Cooperative Extension request permission to receive full allocation for Parents As Teachers grant for fiscal year 2012-2013 from the Harnett County Partnership for Children. COUNTY MANAGER'S RECOMMENDATION: C:\Users\bblinson\AppData\Local\Microsoft\ Windows\ Temporary Internet Files\Content.Outlook\ 1 EAS44 IB\agendaform20 12-2013 .doc I of I Page Harnett County Partnership frChildren January 15, 2013 Tyrone Fisher, County Extension Director County of Harnett PO Box 1089 Lillington, NC 27546 Dear Mr. Fisher: 1901-G N Main Street, PO Box 70, Lillington, NC 27546 Phone (91 0) 893-2344 Fax (910) 893-2387 www. harnettsmartstart. org Enclosed are two (2) copies of your Smart Start Amendment I for Parents As Teachers, "Full Allocation". Please review the document sign both, and return to me. I will keep one original and return one to you. If you have any questions, please call me at 910-893-2344. Thank you for expediting this matter. Enclosures The mission of the Harnett County Partnership for Children is to improve the quality of life for young children and families in Harnett County through community-based programs focusing on health, education, and family support AMENDMENT I CONTRACT # 12-13-202 This agreement amends the Contract between the Harnett County Partnership for Children, Inc., hereinafter referred to as the "Local Partnership", and the County of Harnett, Parents As Teachers, hereinafter referred to as the "Contractor." This Amendment is hereby effective on December 31,2012. As provided for under the terms of this Contract, the Local Partnership and the Contractor agree to amend the following provisions: 1. Reference Part 18. "Amount of Reimbursement": The not-to-exceed amount IS being increased by $58,647.00 from $175,939.00 to $234,586.00. All other terms and conditions as set forth in the original Contract document shall remain in effect for the duration ofthis Contract. In Witness Whereof: The Local Partnership and the Contractor have executed this Amendment in duplicate originals, with one original being retained by each Party. Harnett County Partnership for Children, Inc. By: _______________ _ Date: __________ _ Lisa Familo, Executive Director By: ________________ _ Date: __________ _ Joseph Jeffries, County Manager By:-J6&4.~~<2-~..:J:::::I.~:e.J...J..,C.Ji::J4,!!:::!-L~--Date: __ d._oL_I_,_-r___..,_f ___ _ . Blinson, of Harnett Finance Officer THIS INSTRUMENT HI\S BEEN PREAUDITED IN THE MANNER REQUIRED SY THE LOCAL GOVERI'.MENT BUDGET- AND FiSCAL_CONTRO~ TI COtW'"'' ·-·· ---··-~ Smart JIJ jj rJil ii North Carolina Partnership for Children Attachment II Local Partnership Name: Harnett County Partnership for Children, Inc. Fiscal Year: ...:FY,-:......:1.;:2:_-1.:.:3::_-=-------------------------------~ Activity Title: Parents as Teachers Purpose/Service Code: ...:5:.:5:.:0:.:9=-------------------------------::==~,..,.---_.l APPROVED BUDGET BUDGET NARRATIVE Agenda Item 7 March 4, 2013 APPOINTMENTS NEEDED BOARDS ON WHICH COMMISSIONERS SERVE Jim Burgin-CCCC Board of Trustees Joe Miller-CCCC Harnett County Campus Advisory Board BOARD OF ADJUSTMENT As of March 31, 2013, we will have a vacancy for an alternate member from District 5 on this Board. Mr. George Brice is not interested in being reappointed. BOARD OF EQUALIZATION AND REVIEW Robert Doberstein (District 5-has served 5 years) Joe Miriello (District 2 -has served 4 years) Howard Penny, Jr. (District 3-has served 5 years) Carnell Robinson (District 1 -has served 16 years) These Board members have expressed interest in being reappointed to serve on this Board. Their terms expire February 28,2013. Opening date for appeal hearings is April 25, 2013. Staff suggested four year terms with a maximum of 8 consecutive years served, appointments taking place during election years. We also have a vacancy on this Board for District 4. DANGEROUS DOG COMMITTEE We have a vacancy on this committee that will need to be filled by an attorney in the county. This vacancy was posted in the Dunn Daily Record on February 24,2012. HARNETT COUNTY PUBLIC LIBRARY BOARD OF TRUSTEES We have a vacancy for an at-large member on this board. HARNETT NURSING HOME COMMUNITY ADVISORY COMMITTEE We need members on this committee. Members receive mileage reimbursement as claimed. Page 1 -Appointments IDSTORIC PROPERTIES COMMISSION We currently have a vacancy for a regular member in District 5. MID-CAROLINA AGING ADVISORY COMMITTEE We have three vacancies on this committee. Members receive mileage reimbursement as claimed. JUVENILE CRIME PREVENTION COUNCIL (JCPC) The Council recommends appointment of: Kayla Daughtry, (young person-under 18-THS) Mikal Robinson (young person -under 18 -HCHS) David Hodges, United Way Director (non-profit) These appointments meet state requirements for this council Page 2 -Appointments Board Meeting Agenda Item Agenda Item 8 --""--- MEETING DATE: March 4, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Public Hearing for Potential CDBG Grant Application REQUESTED BY: Economic Development REQUEST: A public hearing is a requirement of the Small Cities Community Development Black Grant (CDBG) program. This first public hearing will be valid for all potential CDBG applications during the 2013 program year. If the County should decide to pursue a specific CDBG project during 2013, a second public hearing specific to the proposed project will be required .. COUNTY MANAGER'S RECOMMENDATION: C:\Documents and Settings\gwheeler\Local Settings\ Temporary Internet Files\Content. Outlook\X553 5JMM\agendaform20 13-CDBG.doc I of I Page NOTICE OF PUBLIC HEARING HARNETT COUNTY FY 2013 COMMUNITY DEVELOPMENT PROGRAM Harnett County is interested in seeking !funds from the North Carolina Department of Commerce Small Cities Community Development Block Grant (CDBG) Program. The CDBG -Economic Development Program is administered by the Commerce Finance Center. NC Community Assistance administers all other CDBG programs. The CDBG Program permits a wide range of economic and community development activities including: acquisition; public facilities construction; loans to private businesses; housing rehabilitation; code enforcement; clearance; project planning and administration; etc. Applications for Economic Development must show that in excess of 60% of CDBG funds will benefit low or moderate-income persons through job creation or retention. Applications for other CDBG programs must show that funded activities will: (1) provide 51% or greater benefit to low or moderate income persons; (2) benefit identified special need populations; or (3) address health and safety needs. Harnett County will conduct a Public Hearing on March 4, 2013 at 9:00 am, Board of Commissioners Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina. The purpose of this Hearing is to obtain citizen input into the identification of community needs and desired CDBG activities. Written comments received prior to the opening of the Public Hearing will be considered. Written comments may be sent to Joseph Jeffries, Interim County Manager, 102 East Front Street, Lillington, NC 27546. This information is available in Spanish or any other language upon request. Please contact Joseph Jeffries, Interim County Manager, at (910) 893-7558 or at County Manager's Office, Harnett County Administration Building, 102 East Front Street, Lillington 27546 for accommodations for this request. Esta informacion esta disponible en espariol o en cualquier otro idioma bajo petici6n. Por favor, p6ngase en contacto con Joseph Jeffries, Interim County Manager, a1 (91 0) 893-7558 o en County Manager's Office, Harnett County Administration Building, 102 East Front Street, Lillington, NC 27546 de para esta solicitud. Jim Burgin, Chairman Harnett County Board of Commissioners 2/21/13 Agenda Item [ 0 South Central Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2053564v3 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A 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, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OFF ACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board'') of the County of Harnett (the "County"), sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina (the "District"), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $13,000,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities (1) $1 ,320,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015, (2) $6,677,000 aggregate principal amount of the District's General Obligation Water and Sewer Bond, Series 2009A maturing on and after June 1, 2013 and (3) $2,966,000 aggregate principal amount of the District's General Obligation Water and Sewer Bond, Series 2009B maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 41h day of March, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. PPAB 2053564v3 B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner , the foregoing order titled: "A 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, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PP AB 2053564v3 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the resolutions titled "A 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, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by 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, North Carolina, in a regular meeting duly held on the 41h day of March, 2013. WITNESS my hand and the seal of said District, this the _ day of March, 2013. (DISTRICT SEAL) PP AB 2053564v3 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner ______ introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the South Central Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its (1) $2,795,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds"), (2) $6,753,000 General Obligation Water and Sewer Bond, Series 2009A (the "2009A Bond''), and (3) $3,000,000 General Obligation Water and Sewer Bond, Series 2009B (the "2009B Bond''); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $1,320,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015, (2) $6,677,000 in aggregate principal amount of the 2009A Bond maturing on and after June 1, 2013 and (3) $2,966,000 in aggregate principal amount of the 2009B Bond maturing on and after June 1, 2013 (collectively, the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by 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, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the South Central Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the PPAB 2053564v3 Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $13,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL 0BLIGA TION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner , the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 41h day of March, 2013. 2 PP AB 2053564v3 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by 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, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the _ day of March, 2013. (DISTRICT SEAL) PPAB 2053564v3 Clerk to the Board of Commissioners County of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the South Central Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its (1) $2,795,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds"), (2) $6,753,000 General Obligation Water and Sewer Bond, Series 2009A (the "2009A Bond''), and (3) $3,000,000 General Obligation Water and Sewer Bond, Series 2009B (the "2009B Bond''); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $1,320,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015, (2) $6,677,000 in aggregate principal amount of the 2009A Bond maturing on and after June 1, 2013 and (3) $2,966,000 in aggregate principal amount of the 2009B Bond maturing on and after June 1, 2013 (collectively, the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by 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, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the South Central Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $13,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 41h day of March, 2013 and is hereby published this_ day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PPAB 2053564v3 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina SWORN STATEMENT OF DEBT Made pursuant to the Local Government Bond Act, as Amended, For the South Central Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County"), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina (the "District"), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, Do HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statement. (Notary Public) My commission expires the _day of _____ , __ . PPAB 2053564v3 Kimberly Honeycutt, Deputy Finance Officer County of Harnett, North Carolina 1 STATEMENT OF DEBT OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159-55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4m DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $ Gross Debt". (B) Deductions to be made from Gross Debt as listed in $ the attached "Schedule ofDeductions". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $ (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. 2 PPAB 2053564v3 South Central Water and Sewer District of Harnett County, North Carolina SCHEDULE OF GROSS DEBT (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (I) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $13,000,000 Sewer Bonds TOTAL $13,000,000 (2) Unissued bonds authorized by adopted orders: PURPOSE AMOUNT $ TOTAL $ (3) Outstanding debt not evidenced by bonds: PURPOSE AMOUNT $ TOTAL $ (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT $ TOTAL $ TOTAL GROSS DEBT $ 3 PPAB 2053564v3 South Central Water and Sewer District of Harnett County, North Carolina SCHEDULE OF DEDUCTIONS (A) Funding and refunding bonds authorized by orders $13,000,000 introduced but not yet adopted. (B) Funding and refunding bonds authorized but not issued. $ (C) Amount held in sinking funds or otherwise for the payment $ of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). (D) Bonded debt included in gross debt and incurred or to be $ incurred for water, gas or electric light or power purposes. (E) Bonded debt included in gross debt and incurred or to be $ incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). (F) Uncollected special assessments levied or to be levied for $ local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. (G) Estimate of special assessments to be levied for local $ improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL $ 4 PP AB 2053564v3 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2053564v3 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "'Board"), sitting as the governing body of the South Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A 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, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the South Central Water and Sewer District of Harnett County, North Carolina (the "District"), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond") and desires to request that the Local Government Commission (the "Commission") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. to them below: For purposes of this Resolution, the following words have the meanings ascribed "Bond'' means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. PPAB 2053564v3 "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association and its successors or assigns, as escrow agent under the Escrow Agreement. "Escrow Agreement" means an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book-entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means, collectively, (1) $1,320,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015, (2) $6,677,000 in aggregate principal amount of the 2009A Bond maturing on and after June 1, 2013 and (3) $2,966,000 in aggregate principal amount of the 2009B Bond maturing on and after June 1, 2013. "2004 Bonds" means the District's $2,795,000 General Obligation Refunding Bonds, Series 2004. "2009A Bond'' means the District's $6,753,000 General Obligation Water and Sewer Bond, Series 2009A. 2 PPAB 2053564v3 "2009B Bond" means the District's $3,000,000 General Obligation Water and Sewer Bond, Series 2009B. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. $13,000,000. The District shall issue its Bond in an aggregate principal amount not to exceed Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R-1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360-day year of twelve 30-day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. 3 PPAB 2053564v3 Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause (a) the portion of the proceeds of the Bond necessary to redeem the 2009A Bond and the 2009B Bond to be delivered to the United States Department of Agriculture in accordance with the terms of the 2009A Bond and the 2009B Bond, respectively, and (b) the portion of the proceeds of the Bond necessary to defease and redeem the 2004 Bonds maturing on and after June 1, 2015 to be deposited with the Escrow Agent to be applied as set forth in the Escrow Agreement. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00%. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to tum the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, 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 carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's 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. 4 PPAB 2053564v3 Any act done pursuant to a modification or amendment consented to by the owner of the Bond is binding on the owner of the Bond 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, the owner of the Bond shall have no 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 owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first-class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, 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 at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions 5 PP AB 2053564v3 and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PP AB 2053564v3 On motion of Commissioner , the foregoing resolution entitled "A 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, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: Nays: 7 PPAB 2053564v3 STATE OF NORTH CAROLINA ) ) ss: COUNTY OF HARNETT ) I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A 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, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $13,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of South Central Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 41h day of March, 2013. WITNESS my hand and the corporate seal of said District, this the _day of March, 2013. (DISTRICT SEAL) PPAB 2053564v3 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina No. R-1 APPENDIX A FORMOFBOND UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT $ __ _ SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April_, 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: -----DOLLARS GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 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, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360-day year of twelve 30-day months) as follows: JUNEl PRINCIPAL RATE JUNE1 PRINCIPAL RATE A-1 PP AB 2053564v3 The portions of this Bond maturing on or after June 1, 20 _ may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20 _. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs") are prepaid pursuant to an Indenture of Trust dated as of April 1, 2013 relating to the LOBs. This Bond 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 of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities (1) $6,677,000 aggregate principal amount of the District's General Obligation Water and Sewer Bond, Series 2009A maturing on and after June 1, 2013, (2) $2,966,000 aggregate principal amount of the District's General Obligation Water and Sewer Bond, Series 2009B maturing on and after June 1, 2013 and (3) $1,320,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State ofNorth Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, 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 BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A-2 PPAB 2053564v3 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Clerk to the Board of Commissioners Date of Execution: April_, 2013 Jim Burgin, Chairman Board of Commissioners The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A-3 PP AB 2053564v3 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 Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Attorney to register the transfer of the within Bond 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 Participant in the Securities Transfer Agent Medallion Program ("Stamp") or similar program. NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED PPAB 2053564v3 DRAFT FOR BOARD APPROVAL-NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County") hereby offers to purchase the bond set forth below (the "Bond'') from the Local Government Commission of the State of North Carolina (the "Commission") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the$ General Obligation Refunding Water and Sewer Bond, Series 2013 of the South Central Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the South Central Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of$ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April 1, 2013 (the "Indenture") between Harnett County Public Facilities Corporation (the "Corporation") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $[USDA Amount] shall be delivered directly to the United States Department of Agriculture; (2) $[2004 Amount] shall be delivered to U.S. Bank National Association, as escrow agent (in such capacity, the "Escrow Agent") under an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent; and (3) $[COl Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt of the amount set forth in paragraph (3) above. The Escrow Agent hereby acknowledges receipt of the amount set forth in paragraph (2) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April_, 2013 PPAB 2053564v3 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. [SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina [DISTRICT SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina PPAB 2053564v3 COUNTY OF HARNETT, NORTH CAROLINA By: Interim County Manager [SIGNATURES FOLLOW] LOCAL GOVERNMENT COMMISSION By: Secretary SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee and Escrow Agent By: Vice President 2 Exhibit A $ SOUTH CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNEl PRINCIPAL RATE JUNE! PRINCIPAL RATE PPAB 2053564v3 Agenda Itern // -----=--- East Central Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2057613v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board'') of the County of Harnett (the "County"), sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina (the "District"), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $3,500,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities (1) $2,823,000 aggregate principal amount of the District's Water Bonds, Series 1995A maturing on and after June 1, 2013 and (2) $137,000 aggregate principal amount of the District's Water Bonds, Series 1995B maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 41h day ofMarch, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. PPAB 2057613v2 C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner , the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 41h day of March, 2013. 2 PPAB 2057613v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 41h day of March, 2013. WITNESS my hand and the seal of said District, this the_ day of March, 2013. (DISTRICT SEAL) PPAB 2057613v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner ______ introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the East Central Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its (1) $3,608,000 Water Bonds, Series 1995A (the "1995A Bonds") and (2) $172,000 Water Bonds, Series 1995B (the "1995B Bonds"); WHEREAS, the Board of Commissioners (the "Board'') of the County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (I) $2,823,000 in aggregate principal amount of the 1995A Bonds maturing on and after June I, 2013 and (2) $137,000 in aggregate principal amount of the 1995B Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the East Central Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $3,500,000. PPAB 2057613v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the _ day of March, 2013. (DISTRICT SEAL) PPAB 2057613v2 Clerk to the Board of Commissioners County of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the East Central Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its (1) $3,608,000 Water Bonds, Series 1995A (the "1995A Bonds") and (2) $172,000 Water Bonds, Series 1995B (the "1995B Bonds"); WHEREAS, the Board of Commissioners (the "Board") ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $2,823,000 in aggregate principal amount of the 1995A Bonds maturing on and after June 1, 2013 and (2) $13 7,000 in aggregate principal amount of the 1995B Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the East Central Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $3,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 41h day of March, 2013 and is hereby published this_ day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PPAB 2057613v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina SWORN STATEMENT OF DEBT Made pursuant to the Local Government Bond Act, as Amended, For the East Central Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County"), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina (the "District"), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, Do HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statement. (Notary Public) My commission expires the _day of ____ _ PPAB 2057613v2 Kimberly Honeycutt, Deputy Finance Officer County of Harnett, North Carolina STATEMENT OF DEBT OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159-55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $ Gross Debt". (B) Deductions to be made from Gross Debt as listed in $ the attached "Schedule of Deductions". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $ (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. 2 PPAB 2057613v2 East Central Water and Sewer District of Harnett County, North Carolina SCHEDULE OF GROSS DEBT (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $3,500,000 Sewer Bonds TOTAL $3,500,000 (2) Unissued bonds authorized by adopted orders: PURPOSE AMOUNT $ TOTAL $ (3) Outstanding debt not evidenced by bonds: PURPOSE AMOUNT $ TOTAL $ (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT $ TOTAL $ TOTAL GROSS DEBT $ 3 PPAB 2057613v2 (A) (B) (C) (D) (E) (F) (G) East Central Water and Sewer District of Harnett County, North Carolina SCHEDULE OF DEDUCTIONS Funding and refunding bonds authorized by orders introduced but not yet adopted. Funding and refunding bonds authorized but not issued. Amount held in sinking funds or otherwise for the payment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL 4 $3,500,000 $ $ $ $ $ $ $ PPAB 2057613v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) PPAB 2057613v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the East Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the East Central Water and Sewer District of Harnett County, North Carolina (the "District"), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond'') and desires to request that the Local Government Commission (the "Commission") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. to them below: For purposes of this Resolution, the following words have the meanings ascribed "Bond'' means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. PPAB 2057613v2 "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book-entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April I, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "1995A Bonds" means the District's $3,608,000 Water Bonds, Series 1995A. "1995B Bonds" means the District's $172,000 Water Bonds, Series 1995B. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means, collectively, (1) $2,823,000 in aggregate principal amount of the 1995A Bonds maturing on and after June 1, 2013 and (2) $137,000 in aggregate principal amount of the 1995B Bonds maturing on and after June 1, 2013. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. $3,500,000. The District shall issue its Bond in an aggregate principal amount not to exceed Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June I, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. 2 PPAB 2057613v2 Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R-1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360-day year of twelve 30-day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to redeem the Refunded Bonds to be delivered to the United States Department of Agriculture in accordance with the terms of such Refunded Bonds. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00%. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each 3 PPAB 2057613v2 acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to tum the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, 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 carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's 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 owner of the Bond is binding on the owner of the Bond 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, the owner of the Bond shall have no 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 owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first-class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, 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 at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by 4 PPAB 2057613v2 the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 5 PPAB 2057613v2 On motion of Commissioner , the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: Nays: 6 PPAB 2057613v2 STATE OF NORTH CAROLINA ) ) ss: COUNTY OF HARNETT ) I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of East Central Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the corporate seal of said District, this the _day of March, 2013. (DISTRICT SEAL) PPAB 2057613v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina No. R-1 APPENDIX A FORMOFBOND UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT $ __ _ EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April_, 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: DOLLARS ----- GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 THE EAST 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, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360-day year oftwelve 30-day months) as follows: JUNE1 PRINCIPAL RATE JUNE1 PRINCIPAL RATE A-1 PPAB 2057613v2 The portions of this Bond maturing on or after June 1, 20 _ may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20 _. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs") are prepaid pursuant to an Indenture of Trust dated as of April1, 2013 relating to the LOBs. This Bond 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 of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities (1) $2,823,000 aggregate principal amount of the District's Water Bonds, Series 1995A maturing on and after June 1, 2013 and (2) $137,000 aggregate principal amount ofthe District's Water Bonds, Series 1995B maturing on and after June I, 2013. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, 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 BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A-2 PPAB 2057613v2 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Clerk to the Board of Commissioners Date of Execution: April_, 2013 Jim Burgin, Chairman Board of Commissioners The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A-3 PPAB 2057613v2 Dated: 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 Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Attorney to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Signature guaranteed by: NOTICE: Signature must be guaranteed by a Participant in the Securities Transfer Agent Medallion Program ("Stamp") or similar program. NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED PPAB 2057613v2 DRAFT FOR BOARD APPROVAL-NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County") hereby offers to purchase the bond set forth below (the "Bond") from the Local Government Commission of the State of North Carolina (the "Commission") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the$ General Obligation Refunding Water and Sewer Bond, Series 2013 of the East Central Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the East Central Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of $ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April 1, 2013 (the "Indenture") between Harnett County Public Facilities Corporation (the "Corporation") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $[USDA Amount] shall be delivered directly to the United States Department of Agriculture; and (2) $[COl Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt of the amount set forth in paragraph (2) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April _, 2013 PPAB 2057613v2 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. [SEAL) ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina [DISTRICT SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina PPAB 2057613v2 COUNTY OF HARNETT, NORTH CAROLINA By: Interim County Manager [SIGNATURES FOLLOW) LOCAL GOVERNMENT COMMISSION By: Secretary EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee By: Vice President 2 Exhibit A $ EAST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNEl PRINCIPAL RATE JUNEl PRINCIPAL RATE PPAB 2057613v2 Agenda Item_/ cl Northwest Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PP AB 2057524v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OFF ACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board'') of the County of Harnett (the "County"), sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina (the "District"), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $1,500,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities (1) $885,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015 and (2) $315,000 aggregate principal amount of the District's Water Bonds, Series 1997 maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 4th day ofMarch, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. PP AB 2057524v2 C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner , the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OFF ACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: NAYS: PASSED,ADOPTEDANDAPPROVEDthis 41h day ofMarch, 2013. 2 PPAB 2057524v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4111 day of March, 2013. WITNESS my hand and the seal of said District, this the_ day of March, 2013. (DISTRICT SEAL) PPAB 2057524v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner ______ introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Northwest Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its (1) $2,795,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds") and (2) $995,000 Water Bonds, Series 1997 (the "1997 Bonds"); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $885,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 and (2) $315,000 in aggregate principal amount of the 1997 Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Northwest Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. PPAB 2057524v2 Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner , the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 41h day of March, 2013. 2 PP AB 2057524v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the _ day of March, 2013. (DISTRICT SEAL) PPAB 2057524v2 Clerk to the Board of Commissioners County of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Northwest Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its (1) $2,795,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds") and (2) $995,000 Water Bonds, Series 1997 (the "1997 Bonds"); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $885,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 and (2) $315,000 in aggregate principal amount of the 1997 Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Northwest Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 41h day of March, 2013 and is hereby published this_ day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PP AB 2057524v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina SWORN STATEMENT OF DEBT Made pursuant to the Local Government Bond Act, as Amended, For the Northwest Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County"), having been designated by the Board of Commissioners (the "Board'') for the County, sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina (the "District"), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, Do HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statement. (Notary Public) My commission expires the _day of ____ _ PPAB 2057524v2 Kimberly Honeycutt, Deputy Finance Officer County of Harnett, North Carolina 1 STATEMENT OF DEBT OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159-55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $ Gross Debt". (B) Deductions to be made from Gross Debt as listed in $ the attached "Schedule of Deductions". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $ (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. 2 PPAB 2057524v2 Northwest Water and Sewer District of Harnett County, North Carolina SCHEDULE OF GROSS DEBT (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE General Obligation Refunding Water and Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE TOTAL (3) Outstanding debt not evidenced by bonds: PURPOSE TOTAL ( 4) Outstanding debt evidenced by bonds: PURPOSE TOTAL AMOUNT $1,500,000 AMOUNT $ AMOUNT $ AMOUNT $ TOTAL GROSS DEBT 3 PPAB 2057524v2 $1,500,000 $ $ $ $ (A) (B) (C) (D) (E) (F) (G) Northwest Water and Sewer District of Harnett County, North Carolina SCHEDULE OF DEDUCTIONS Funding and refunding bonds authorized by orders introduced but not yet adopted. Funding and refunding bonds authorized but not issued. Amount held in sinking funds or otherwise for the payment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL 4 PPAB 2057524v2 $1,500,000 $ $ $ $ $ $ $ STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 41h day of March, 2013. (DISTRICT SEAL) PP AB 2057524v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Northwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the Northwest Water and Sewer District of Harnett County, North Carolina (the "District"), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond") and desires to request that the Local Government Commission (the "Commission") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. to them below: For purposes of this Resolution, the following words have the meanings ascribed "Bond'' means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. PPAB 2057524v2 "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association and its successors or assigns, as escrow agent under the Escrow Agreement. "Escrow Agreement" means an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April I, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "1997 Bonds" means the District's $995,000 Water Bonds, Series 1997. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means, collectively, (1) $885,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 and (2) $315,000 in aggregate principal amount of the 1997 Bonds maturing on and after June 1, 2013. "2004 Bonds" means the District's $2,795,000 General Obligation Refunding Bonds, Series 2004. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. 2 PPAB 2057524v2 Section 3. $1,500,000. The District shall issue its Bond in an aggregate principal amount not to exceed Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R -1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360-day year of twelve 30-day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause (a) the portion of the proceeds of the Bond necessary to redeem the 1997 Bonds to be applied to redeem the 1997 Bonds maturing on and after June 1, 2013 and (b) the portion of the proceeds of the Bond necessary to defease and redeem the 2004 Bonds maturing on and after June 1, 2015 to be deposited with the Escrow Agent to be applied as set forth in the Escrow Agreement. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. 3 PPAB 2057524v2 Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00%. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to tum the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, 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 carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's 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 owner of the Bond is binding on the owner of the Bond 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, the owner of the Bond shall have no 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. 4 PPAB 2057524v2 If the District proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first-class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, 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 at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. 5 PPAB 2057524v2 The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PP AB 2057524v2 On motion of Commissioner , the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: Nays: 7 PPAB 2057524v2 STATE OF NORTH CAROLINA ) ) ss: COUNTY OF HARNETT ) I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of Northwest Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 41h day of March, 2013. WITNESS my hand and the corporate seal of said District, this the_ day of March, 2013. (DISTRICT SEAL) PPAB 2057524v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina No. R-1 APPENDIX A FORMOFBOND UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT $ __ _ NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April_, 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: -----DOLLARS GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 THE NORTHWEST 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, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360-day year oftwelve 30-day months) as follows: JUNE 1 PRINCIPAL RATE JUNE1 PRINCIPAL RATE A-1 PPAB 2057524v2 The portions of this Bond maturing on or after June 1, 20 _ may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20 _. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs") are prepaid pursuant to an Indenture of Trust dated as of April 1, 2013 relating to the LOBs. This Bond 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 of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities (1) $315,000 aggregate principal amount of the District's Water Bonds, Series 1997 maturing on and after June 1, 2013 and (2) $885,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State ofNorth Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, 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 BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A-2 PPAB 2057524v2 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Clerk to the Board of Commissioners Date of Execution: April _, 2013 Jim Burgin, Chairman Board of Commissioners The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A-3 PPAB 2057524v2 Dated: 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 Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Attorney to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. ----- Signature guaranteed by: NOTICE: Signature must be guaranteed by a Participant in the Securities Transfer Agent Medallion Program ("Stamp") or similar program. NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED PP AB 2057524v2 DRAFT FOR BOARD APPROVAL-NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County") hereby offers to purchase the bond set forth below (the "Bond") from the Local Government Commission of the State of North Carolina (the "Commission") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the $ General Obligation Refunding Water and Sewer Bond, Series 2013 of the Northwest Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the Northwest Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of $ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April I, 2013 (the "Indenture") between Harnett County Public Facilities Corporation (the "Corporation") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $ [ 1997 Amount] shall be delivered to the District to be applied in accordance with the bond resolution adopted by the Board of Commissioners of the County, sitting as the governing body of the District, on March 4, 2013 (the "Resolution") to redeem the 1997 Bonds (as defined in the Resolution); (2) $[2004 Amount] shall be delivered to U.S. Bank National Association, as escrow agent (in such capacity, the "Escrow Agent") under an Escrow Agreement dated as of April I, 2013 between the County and the Escrow Agent; and (3) $[COl Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt of the amount set forth in paragraph (3) above. The Escrow Agent hereby acknowledges receipt of the amount set forth in paragraph (2) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April _, 2013 PPAB 2057524v2 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. [SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina [DISTRICT SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina PPAB 2057524v2 COUNTY OF HARNETT, NORTH CAROLINA By: Interim County Manager [SIGNATURES FOLLOW] LOCAL GOVERNMENT COMMISSION By: Secretary NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee and Escrow Agent By: Vice President 2 Exhibit A $ NORTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNEl PRINCIPAL RATE JUNEl PRINCIPAL RATE PPAB 2057524v2 Agenda Item {] Riverside Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PP AB 2057606v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OFF ACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett (the "County"), sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina (the "District"), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $1,500,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities (1) $823,000 aggregate principal amount of the District's Water Bonds, Series 2001 A maturing on and after June 1, 2013 and (2) $225,000 aggregate principal amount of the District's Water Bonds, Series 2001B maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 41h day ofMarch, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. PPAB 2057606v2 D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner , the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: NAYS: PASSED,ADOPTEDANDAPPROVEDthis 4111 day ofMarch, 2013. 2 PPAB 2057606v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the_ day of March, 2013. (DISTRICT SEAL) PP AB 2057606v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner ______ introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Riverside Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its (1) $940,000 Water Bonds, Series 2001A (the "2001A Bonds") and (2) $254,000 Water Bonds, Series 2001B (the "2001B Bonds"); WHEREAS, the Board of Commissioners (the "Board'') of the County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $823,000 in aggregate principal amount of the 2001A Bonds maturing on and after June 1, 2013 and (2) $225,000 in aggregate principal amount of the 2001B Bonds maturing on and after June 1, 2013 (collectively, the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Riverside Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. PP AB 2057606v2 Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner , the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 4111 day of March, 2013. 2 PP AB 2057606v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4111 day of March, 2013. WITNESS my hand and the seal of said District, this the_ day of March, 2013. (DISTRICT SEAL) PP AB 2057606v2 Clerk to the Board of Commissioners County of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Riverside Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its (I) $940,000 Water Bonds, Series 2001A (the "2001A Bonds") and (2) $254,000 Water Bonds, Series 2001B (the "2001B Bonds"); WHEREAS, the Board of Commissioners (the "Board") ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities (1) $823,000 in aggregate principal amount of the 2001A Bonds maturing on and after June 1, 2013 and (2) $225,000 in aggregate principal amount of the 2001 B Bonds maturing on and after June 1, 2013 (collectively, the "Refimded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act ofNorth Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Riverside Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 41h day of March, 2013 and is hereby published this day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PP AB 2057606v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina SWORN STATEMENT OF DEBT Made pursuant to the Local Government Bond Act, as Amended, For the Riverside Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County"), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina (the "District"), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, Do HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statement. (Notary Public) My commission expires the _day of _____ , __ . PP AB 2057606v2 Kimberly Honeycutt, Deputy Finance Officer County of Harnett, North Carolina 1 STATEMENT OF DEBT OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159-55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $ Gross Debt". (B) Deductions to be made from Gross Debt as listed in $ the attached "Schedule of Deductions". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $ (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. 2 PP AB 2057606v2 Riverside Water and Sewer District of Harnett County, North Carolina SCHEDULE OF GROSS DEBT (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $1,500,000 Sewer Bonds TOTAL $1,500,000 (2) Unissued bonds authorized by adopted orders: PURPOSE AMOUNT $ TOTAL $ (3) Outstanding debt not evidenced by bonds: PURPOSE AMOUNT $ TOTAL $ (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT $ TOTAL $ TOTAL GROSS DEBT $ 3 PP AB 2057606v2 Riverside Water and Sewer District of Harnett County, North Carolina SCHEDULE OF DEDUCTIONS (A) Funding and refunding bonds authorized by orders $1,500,000 introduced but not yet adopted. (B) Funding and refunding bonds authorized but not issued. $ (C) Amount held in sinking funds or otherwise for the payment $ of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). (D) Bonded debt included in gross debt and incurred or to be $ incurred for water, gas or electric light or power purposes. (E) Bonded debt included in gross debt and incurred or to be $ incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). (F) Uncollected special assessments levied or to be levied for $ local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. (G) Estimate of special assessments to be levied for local $ improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL $ 4 PP AB 2057606v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 41h day ofMarch, 2013. (DISTRICT SEAL) PP AB 2057606v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Riverside Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the Riverside Water and Sewer District of Harnett County, North Carolina (the "District"), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond'') and desires to request that the Local Government Commission (the "Commission") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section I. to them below: For purposes of this Resolution, the following words have the meanings ascribed "Bond'' means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. PPAB 2057606v2 "Bond Order'' the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code'' means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book -entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means, collectively, (1) $823,000 in aggregate principal amount of the 2001A Bonds maturing on and after June 1, 2013 and (2) $225,000 in aggregate principal amount of the 2001B Bonds maturing on and after June 1, 2013. "200JA Bonds" means the District's $940,000 Water Bonds, Series 2001A. "200IB Bonds" means the District's $254,000 Water Bonds, Series 2001B. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. $1,500,000. The District shall issue its Bond in an aggregate principal amount not to exceed Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. 2 PP AB 2057606v2 Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R-1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360-day year of twelve 30-day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to redeem the Refunded Bonds to be delivered to the United States Department of Agriculture in accordance with the terms of such Refunded Bonds. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00%. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each 3 PP AB 2057606v2 acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to tum the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, 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 carry out the intent and purposes of this Resolution. Section IS. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's 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 owner of the Bond is binding on the owner of the Bond 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, the owner of the Bond shall have no 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 owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first-class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, 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 at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by 4 PP AB 2057606v2 the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 5 PPAB 2057606v2 On motion of Commissioner , the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: Nays: 6 PP AB 2057606v2 STATE OF NORTH CAROLINA ) ) ss: COUNTY OF HARNETT ) I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of Riverside Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 41h day ofMarch, 2013. WITNESS my hand and the corporate seal of said District, this the _day of March, 2013. (DISTRICT SEAL) PP AB 2057606v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina No. R-1 APPENDIX A FORMOFBOND UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT $ __ _ RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April_, 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: DOLLARS ------ GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 THE RIVERSIDE 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, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360-day year of twelve 30-day months) as follows: JUNE1 PRINCIPAL RATE JUNE1 PRINCIPAL RATE A-1 PPAB 2057606v2 The portions of this Bond maturing on or after June 1, 20 _ may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20_. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs") are prepaid pursuant to an Indenture of Trust dated as of April 1, 2013 relating to the LOBs. This Bond 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 of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities (1) $823,000 aggregate principal amount of the District's Water Bonds, Series 200IA maturing on and after June 1, 2013 and (2) $225,000 aggregate principal amount ofthe District's Water Bonds, Series 2001B maturing on and after June 1, 2013. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, 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 BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A-2 PP AB 2057606v2 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Clerk to the Board of Commissioners Date of Execution: April _, 2013 Jim Burgin, Chairman Board of Commissioners The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A-3 PP AB 2057606v2 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 Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Attorney to register the transfer of the within Bond 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 Participant in the Securities Transfer Agent Medallion Program ("Stamp") or similar program. NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED PPAB 2057606v2 DRAFT FOR BOARD APPROVAL-NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County") hereby offers to purchase the bond set forth below (the "Bond") from the Local Government Commission of the State of North Carolina (the "Commission") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the $ General Obligation Refunding Water and Sewer Bond, Series 2013 of the Riverside Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the Riverside Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of $ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April 1, 2013 (the "Indenture") between Harnett County Public Facilities Corporation (the "Corporation") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $[USDA Amount] shall be delivered directly to the United States Department of Agriculture; and (2) $[COl Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt of the amount set forth in paragraph (2) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April _, 2013 PP AB 2057606v2 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. [SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina [DISTRICT SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina PP AB 2057606v2 COUNTY OF HARNETT, NORTH CAROLINA By: Interim County Manager [SIGNATURES FOLLOW] LOCAL GOVERNMENT COMMISSION By: Secretary RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee By: Vice President 2 Exhibit A $ RIVERSIDE WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNEl PRINCIPAL RATE JUNEl PRINCIPAL RATE PPAB 2057606v2 Agenda Item [ Lf Southeast Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2057583v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board'') of the County of Harnett (the "County"), sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina (the "District"), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $1,500,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities $1,090,000 aggregate principal amount of the District's Water Bonds, Series 1993 maturing on and after June 1, 2013. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission") to make certain determinations as set forth in Article 4 of Chapter 159 ofthe General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 41" day of March, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. D. No Default. The District is not in default on any of its debt obligations. PPAB 2057583v2 E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner , the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 4111 day of March, 2013. 2 PPAB 2057583v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the _ day of March, 2013. (DISTRICT SEAL) PPAB 2057583v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner ______ introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Southeast Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its $1,482,000 Water Bonds, Series 1993 (the "1993 Bonds"); WHEREAS, the Board of Commissioners (the "Board'') ofthe County ofHarnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $1,090,000 in aggregate principal amount of the 1993 Bonds maturing on and after June I, 2013 (the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act ofNorth Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Southeast Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. PPAB 2057583v2 Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner , the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 4th day of March, 2013. 2 PP AB 2057583v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the _ day of March, 2013. (DISTRICT SEAL) PP AB 2057583v2 Clerk to the Board of Commissioners County of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Southeast Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its $1,482,000 Water Bonds, Series 1993 (the "1993 Bonds"); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $1,090,000 in aggregate principal amount of the 1993 Bonds maturing on and after June I, 2013 (the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Southeast Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $1,500,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 41h day of March, 2013 and is hereby published this day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PPAB 2057583v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina SWORN STATEMENT OF DEBT Made pursuant to the Local Government Bond Act, as Amended, For the Southeast Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County"), having been designated by the Board of Commissioners (the "Board'') for the County, sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina (the "District"), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, Do HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statement. (Notary Public) My commission expires the _day of _____ , __ . PPAB 2057583v2 Kimberly Honeycutt, Deputy Finance Officer County of Harnett, North Carolina 1 STATEMENT OF DEBT OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159-55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $ Gross Debt". (B) Deductions to be made from Gross Debt as listed in $ the attached "Schedule of Deductions". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $ (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. 2 PPAB 2057583v2 Southeast Water and Sewer District of Harnett County, North Carolina SCHEDULE OF GROSS DEBT (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE General Obligation Refunding Water and Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE TOTAL (3) Outstanding debt not evidenced by bonds: PURPOSE TOTAL (4) Outstanding debt evidenced by bonds: PURPOSE TOTAL AMOUNT $1,500,000 AMOUNT $ AMOUNT $ AMOUNT $ TOTAL GROSS DEBT 3 PPAB 2057583v2 $1,500,000 $ $ $ $ (A) (B) (C) (D) (E) (F) (G) Southeast Water and Sewer District of Harnett County, North Carolina SCHEDULE OF DEDUCTIONS Funding and refunding bonds authorized by orders introduced but not yet adopted. Funding and refunding bonds authorized but not issued. Amount held in sinking funds or otherwise for the payment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL 4 PPAB 2057583v2 $1,500,000 $ $ $ $ $ $ $ STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4111 day of March, 2013. (DISTRICT SEAL) PPAB 2057583v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board"), sitting as the governing body of the Southeast Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the Southeast Water and Sewer District of Harnett County, North Carolina (the "District"), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond") and desires to request that the Local Government Commission (the "Commission") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Boarcf'), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. to them below: For purposes of this Resolution, the following words have the meanings ascribed "Bone!' means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. PP AB 2057583v2 "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book-entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "1993 Bonds" means the District's $1,482,000 Water Bonds, Series 1993. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means $1,090,000 in aggregate principal amount of the 1993 Bonds maturing on and after June 1, 2013. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. $1,500,000. The District shall issue its Bond in an aggregate principal amount not to exceed Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. 2 PP AB 2057583v2 Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R-1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360-day year of twelve 30-day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to redeem the Refunded Bonds to be delivered to the United States Department of Agriculture in accordance with the terms thereof. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00%. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and 3 PP AB 2057583v2 collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to tum the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, 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 carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's 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 owner of the Bond is binding on the owner of the Bond 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, the owner of the Bond shall have no 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 owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first-class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, 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 at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. 4 PPAB 2057583v2 Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment ofthe Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 5 PPAB 2057583v2 On motion of Commissioner , the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: Nays: 6 PP AB 2057583v2 STATE OF NORTH CAROLINA ) ) ss: COUNTY OF HARNETT ) I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $1,500,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of Southeast Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the corporate seal of said District, this the _day of March, 2013. (DISTRICT SEAL) PP AB 2057583v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina No. R-1 APPENDIX A FORMOFBOND UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT $ __ _ SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April_, 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: DOLLARS ------ GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 THE SOUTHEAST 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, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360-day year of twelve 30-day months) as follows: JUNE 1 PRINCIPAL RATE JUNE1 PRINCIPAL RATE A-1 PPAB 2057583v2 The portions of this Bond maturing on or after June 1, 20 _ may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20 _. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs") are prepaid pursuant to an Indenture of Trust dated as of April 1, 2013 relating to the LOBs. This Bond 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 of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities $1,090,000 aggregate principal amount of the District's Water Bonds, Series 1993 maturing on and after June 1, 2013. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, 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 BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A-2 PPAB 2057583v2 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Clerk to the Board of Commissioners Date of Execution: April_, 2013 Jim Burgin, Chairman Board of Commissioners The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A-3 PP AB 2057583v2 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 Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Attorney to register the transfer of the within Bond 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 Participant in the Securities Transfer Agent Medallion Program ("Stamp") or similar program. NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED PP AB 2057583v2 DRAFT FOR BOARD APPROVAL-NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County") hereby offers to purchase the bond set forth below (the "Bond'') from the Local Government Commission of the State of North Carolina (the "Commission") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the $ General Obligation Refunding Water and Sewer Bond, Series 2013 of the Southeast Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the Southeast Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of $ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April 1, 2013 (the "Indenture") between Harnett County Public Facilities Corporation (the "Corporation") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $[USDA Amount] shall be delivered directly to the United States Department of Agriculture; and (2) $[COl Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt ofthe amount set forth in paragraph (2) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April_, 2013 PP AB 2057583v2 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. [SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina [DISTRICT SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina PP AB 2057583v2 COUNTY OF HARNETT, NORTH CAROLINA By: Interim County Manager [SIGNATURES FOLLOW] LOCAL GOVERNMENT COMMISSION By: Secretary SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee By: Vice President 2 Exhibit A $ SOUTHEAST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNEl PRINCIPAL RATE JUNEl PRINCIPAL RATE PPAB 2057583v2 Agenda Item / S West Central Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2057285v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OFF ACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board'') of the County of Harnett (the "County"), sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina (the "District"), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $2,000,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities $1,540,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 41h day of March, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. PPAB 2057285v2 D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner , the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OFF ACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 4111 day of March, 2013. 2 PP AB 2057285v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 41h day of March, 2013. WITNESS my hand and the seal of said District, this the _ day of March, 2013. (DISTRICT SEAL) PP AB 2057285v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner _______ introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the West Central Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its $2,305,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds"); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $1,540,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 (the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act ofNorth Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund in advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the West Central Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $2,000,000. PP AB 2057285v2 Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner , the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: NAYS: PASSED,ADOPTEDANDAPPROVED this 4th day of March, 2013. 2 PPAB 2057285v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL 0BLIGA TION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the_ day of March, 2013. (DISTRICT SEAL) PPAB 2057285v2 Clerk to the Board of Commissioners County of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the West Central Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its $2,305,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds"); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $1,540,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 (the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the West Central Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $2,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 41h day of March, 2013 and is hereby published this day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PPAB 2057285v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina SWORN STATEMENT OF DEBT Made pursuant to the Local Government Bond Act, as Amended, For the West Central Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County"), having been designated by the Board of Commissioners (the "Board") for the County, sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina (the "District"), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, Do HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statement. (Notary Public) My commission expires the _day of _____ ,, __ . PP AB 2057285v2 Kimberly Honeycutt, Deputy Finance Officer County of Harnett, North Carolina STATEMENT OF DEBT OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159-55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $ Gross Debt". (B) Deductions to be made from Gross Debt as listed in $ the attached "Schedule of Deductions". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $ (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. 2 PP AB 2057285v2 West Central Water and Sewer District of Harnett County, North Carolina SCHEDULE OF GROSS DEBT (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE General Obligation Refunding Water and Sewer Bonds TOTAL (2) Unissued bonds authorized by adopted orders: PURPOSE TOTAL (3) Outstanding debt not evidenced by bonds: PURPOSE TOTAL (4) Outstanding debt evidenced by bonds: PURPOSE TOTAL AMOUNT $2,000,000 AMOUNT $ AMOUNT $ AMOUNT $ TOTAL GROSS DEBT 3 PP AB 2057285v2 $2,000,000 $ $ $ $ West Central Water and Sewer District of Harnett County, North Carolina (A) (B) (C) (D) (E) (F) (G) SCHEDULE OF DEDUCTIONS Funding and refunding bonds authorized by orders introduced but not yet adopted. Funding and refunding bonds authorized but not issued. Amount held in sinking funds or otherwise for the payment of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). Bonded debt included in gross debt and incurred or to be incurred for water, gas or electric light or power purposes. Bonded debt included in gross debt and incurred or to be incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). Uncollected special assessments levied or to be levied for local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. .. Estimate of special assessments to be levied for local improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL 4 PPAB 2057285v2 $2,000,000 $ $ $ $ $ $ $ STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4th day of March, 2013. (DISTRICT SEAL) PP AB 2057285v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the West Central Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the West Central Water and Sewer District of Harnett County, North Carolina (the "District"), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond'') and desires to request that the Local Government Commission (the "Commission") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. to them below: For purposes of this Resolution, the following words have the meanings ascribed "Bond'' means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. PPAB 2057285v2 "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association and its successors or assigns, as escrow agent under the Escrow Agreement. "Escrow Agreement" means an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book-entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means $1,540,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015. "2004 Bonds" means the District's $2,305,000 General Obligation Refunding Bonds, Series 2004. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. $2,000,000. PP AB 2057285v2 The District shall issue its Bond in an aggregate principal amount not to exceed 2 Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R-1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360-day year of twelve 30-day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to defease and redeem the Refunded Bonds to be deposited with the Escrow Agent to be applied as set forth in the Escrow Agreement. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. 3 PP AB 2057285v2 Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00%. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to tum the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, 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 carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's 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 owner of the Bond is binding on the owner of the Bond 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, the owner of the Bond shall have no 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 owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first-class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of 4 PP AB 2057285v2 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 at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. 5 PPAB 2057285v2 Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PPAB 2057285v2 On motion of Commissioner , the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $2,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: Nays: 7 PP AB 2057285v2 STATE OF NORTH CAROLINA ) ) ss: COUNTY OF HARNETT ) I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $2,000,000 GENERAL 0BLIGA TION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of West Central Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the corporate seal of said District, this the _day of March, 2013. (DISTRICT SEAL) PPAB 2057285v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina No. R-1 APPENDIX A FORMOFBOND UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT $ __ _ WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April_, 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: DOLLARS ------ GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 THE WEST 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, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360-day year of twelve 30-day months) as follows: JUNE1 PRINCIPAL RATE JUNE1 PRINCIPAL RATE A-1 PPAB 2057285v2 The portions of this Bond maturing on or after June 1, 20 _ may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20_. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs") are prepaid pursuant to an Indenture of Trust dated as of Aprill, 2013 relating to the LOBs. This Bond 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 of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board"), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities $1,540,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State ofNorth Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, 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 BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A-2 PP AB 2057285v2 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Clerk to the Board of Commissioners Date of Execution: April _, 2013 Jim Burgin, Chairman Board of Commissioners The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A-3 PPAB 2057285v2 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 Bond and all rights thereunder, and hereby irrevocably constitutes and appoints ------~----------------------------~--------------------------- Attorney to register the transfer of the within Bond 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 Participant in the Securities Transfer Agent Medallion Program ("Stamp") or similar program. NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED PPAB 2057285v2 DRAFT FOR BOARD APPROVAL-NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County") hereby offers to purchase the bond set forth below (the "Bond'') from the Local Government Commission of the State of North Carolina (the "Commission") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the $ General Obligation Refunding Water and Sewer Bond, Series 2013 of the West Central Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the West Central Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of $ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April 1, 2013 (the "Indenture") between Harnett County Public Facilities Corporation (the "Corporation") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $[2004 Amount] shall be delivered to U.S. Bank National Association, as escrow agent (in such capacity, the "Escrow Agent") under an Escrow Agreement dated as of Aprill, 2013 between the County and the Escrow Agent; and (2) $[COl Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt of the amount set forth in paragraph (2) above. The Escrow Agent hereby acknowledges receipt of the amount set forth in paragraph (1) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April _, 2013 PPAB 2057285v2 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. [SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina [DISTRICT SEAL) ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina PPAB 2057285v2 COUNTY OF HARNETT, NORTH CAROLINA By: Interim County Manager (SIGNATURES FOLLOW] LOCAL GOVERNMENT COMMISSION By: Secretary WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee and Escrow Agent By: Vice President 2 Exhibit A $ WEST CENTRAL WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNEl PRINCIPAL RATE JUNEl PRINCIPAL RATE PPAB 2057285v2 Agenda Item /6 Southwest Water and Sewer District of Harnett County, North Carolina General Obligation Refunding Water and Sewer Bonds Bond Documentation PPAB 2056676v2 EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners (the "Board'') of the County of Harnett (the "County"), sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina (the "District"), is considering the issuance of bonds of the District which shall be for the following purposes and in the following maximum amount: Not to exceed $3,000,000 of General Obligation Refunding Water and Sewer Bonds to pay the costs of refunding in advance of their maturities $2,400,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. WHEREAS, certain findings of fact by the Board must be presented to enable the Local Government Commission of the State of North Carolina (the "Commission") to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board meeting in open session on the 41h day of March, 2013, has made the following factual findings in regard to this matter: A. Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the District. B. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. C. Past Debt Management Polices. The District's debt management policies and procedures are in compliance with the law. PP AB 2056676v2 D. No Default. The District is not in default on any of its debt obligations. E. Issuance of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in fiscal year ending June 30, 2013, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. F. Financing Team, Application to Local Government Commission, Other Actions. The County Manager, the Finance Officer and the Deputy Finance Officer, on behalf of the District, are hereby authorized and directed (1) to retain Parker Poe Adams & Bernstein LLP, as bond counsel, and (2) to apply for approval of the proposed bonds with the Commission and to take all other actions necessary to accomplish the refunding transactions as set forth herein. The Deputy Finance Officer is hereby authorized and directed to complete and file with the Clerk to the Board a sworn statement of the District's debt. All actions of the County Manager, the Finance Officer and the Deputy Finance Officer, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution are in all respects ratified, approved and confirmed. Upon motion of Commissioner , the foregoing order titled: "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OFF ACT CONCERNING PROPOSED BOND ISSUE" was adopted by the following vote: AYES: NAYS: PASSED, ADOPTED AND APPROVED this 41h day of March, 2013. 2 PP AB 2056676v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, in a regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the_ day of March, 2013. (DISTRICT SEAL) PP AB 2056676v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, 102 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner ______ introduced the following bond order by reading the title thereof: BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Southwest Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its $3,790,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds"); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $2,400,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 (the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Southwest Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act ofNorth Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $3,000,000. PPAB 2056676v2 Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA", which was introduced at the meeting of the Board held on March 4, 2013. On motion of Commissioner , the foregoing order titled: "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was adopted by the following vote: AYES: NAYS: PASSED,ADOPTEDANDAPPROVEDthis 41h day ofMarch, 2013. 2 PPAB 2056676v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, Do HEREBY CERTIFY that the foregoing is a true and exact copy of the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA," which was adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, in regular meeting duly held on the 4th day of March, 2013. WITNESS my hand and the seal of said District, this the_ day of March, 2013. (DISTRICT SEAL) PP AB 2056676v2 Clerk to the Board of Commissioners County of Harnett, North Carolina BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the Southwest Water and Sewer District of Harnett County, North Carolina (the "District") has previously issued its $3,790,000 General Obligation Refunding Bonds, Series 2004 (the "2004 Bonds''); WHEREAS, the Board of Commissioners (the "Board'') ofthe County of Harnett, North Carolina (the "County"), sitting as the governing body of the District, deems it advisable to refund in advance of their maturities $2,400,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015 (the "Refunded Bonds"); WHEREAS, an application has been filed with the Secretary (the "Secretary") of the Local Government Commission of North Carolina (the "Commission") requesting the Commission's approval of the bonds described below as required by the Local Government Bond Act of North Carolina, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, as follows: Section 1. The Board deems it advisable to refund m advance of their maturities the Refunded Bonds. Section 2. To raise the money required to pay the costs of refunding the Refunded Bonds, General Obligation Refunding Water and Sewer Bonds of the Southwest Water and Sewer District of Harnett County, North Carolina (the "Bonds") are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of the Bonds authorized by this bond order shall be and not exceed $3,000,000. Section 3. An ad valorem tax shall be levied to pay the principal of and interest on the Bonds when due, which shall be annually levied and collected. Section 4. A sworn statement of the District's debt has been filed with the Clerk to the Board and is open to public inspection. Section 5. This bond order shall take effect on its adoption The foregoing order was adopted on the 4th day of March, 2013 and is hereby published this day of March, 2013. Any action or proceeding questioning the validity of the order must be begun within 30 days after the date of publication of this notice. (DISTRICT SEAL) PP AB 2056676v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina SWORN STATEMENT OF DEBT Made pursuant to the Local Government Bond Act, as Amended, For the Southwest Water and Sewer District of Harnett County, North Carolina I, Kimberly Honeycutt, Deputy Finance Officer of the County of Harnett, North Carolina (the "County"), having been designated by the Board of Commissioners (the "Board'') for the County, sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina (the "District"), to make and to file in the office of the Clerk to the Board a statement of debt of the District pursuant to the Local Government Bond Act, as amended, Do HEREBY CERTIFY that the following is a true statement as shown by the books in my office relating to the District, not taking into consideration any debt incurred or to be incurred in anticipation of bonds other than funding and refunding bonds. Sworn to and subscribed before me on the day of the date of said statement. (Notary Public) My commission expires the _day of _____ , __ . PP AB 2056676v2 Kimberly Honeycutt, Deputy Finance Officer County of Harnett, North Carolina 1 STATEMENT OF DEBT OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, MADE AND FILED PURSUANT TO SECTION 159-55 OF THE LOCAL GOVERNMENT BOND ACT, AFTER THE INTRODUCTION OF THE BOND ORDER AUTHORIZING THE ISSUANCE OF $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BONDS INTRODUCED AT A MEETING OF THE GOVERNING BODY OF SAID DISTRICT, HELD ON THE 4TH DAY OF MARCH, 2013. (A) Gross debt as listed in the attached "Schedule of $ Gross Debt". (B) Deductions to be made from Gross Debt as listed in $ the attached "Schedule of Deductions". (C) Net Debt being the difference between the Gross $0 Debt (A) and Deductions (B). (D) Appraised Value of property subject to taxation. $ (E) Percentage that net debt bears to the appraised value 0% of property subject to taxation. 2 PP AB 2056676v2 Southwest Water and Sewer District of Harnett County, North Carolina SCHEDULE OF GROSS DEBT (The debt described below should not include debt incurred or to be incurred in anticipation of the collection of taxes or other revenues or in anticipation of the sale of bonds other than funding and refunding bonds. The debt described below should not include revenue bonds.) (1) Bonds authorized by orders introduced but not yet adopted: PURPOSE AMOUNT General Obligation Refunding Water and $3,000,000 Sewer Bonds TOTAL $3,000,000 (2) Unissued bonds authorized by adopted orders: PURPOSE AMOUNT $ TOTAL $ (3) Outstanding debt not evidenced by bonds: PURPOSE AMOUNT $ TOTAL $ (4) Outstanding debt evidenced by bonds: PURPOSE AMOUNT $ TOTAL $ TOTAL GROSS DEBT $ 3 PPAB 2056676v2 Southwest Water and Sewer District of Harnett County, North Carolina SCHEDULE OF DEDUCTIONS (A) Funding and refunding bonds authorized by orders $3,000,000 introduced but not yet adopted. (B) Funding and refunding bonds authorized but not issued. $ (C) Amount held in sinking funds or otherwise for the payment $ of gross debt other than debt incurred for water, gas, electric light or power purposes or sanitary sewer purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). (D) Bonded debt included in gross debt and incurred or to be $ incurred for water, gas or electric light or power purposes. (E) Bonded debt included in gross debt and incurred or to be $ incurred for sanitary sewer system purposes (to the extent deductible by subsection (b) of Section 159-55 of the Local Government Bond Act). (F) Uncollected special assessments levied or to be levied for $ local improvements for which gross debt was or is to be incurred, to the extent to be applied to the payment of such gross debt. (G) Estimate of special assessments to be levied for local $ improvements for which any part of gross debt (that is not otherwise deducted) was or is to be incurred, to the extent that the special assessments, when collected, will be applied to the payment of any part of debt. TOTAL $ 4 PPAB 2056676v2 STATE OF NORTH CAROLINA COUNTY OF HARNETT ) ) ) SS: I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, in its capacity as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, a political subdivision validly organized and existing under the Constitution and laws of the State of North Carolina, hereby certify that the foregoing statement and accompanying affidavit were filed in my office on the 4111 day of March, 2013. (DISTRICT SEAL) PP AB 2056676v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A regular meeting of the Board of Commissioners of the County of Harnett, North Carolina (the "Board''), sitting as the governing body of the Southwest Water and Sewer District of Harnett County, North Carolina, was duly held on Monday, March 4, 2013, at 9:00 a.m. in the County Commissioners' Meeting Room, Harnett County Administration Building, I 02 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board, presiding and the following Commissioners present: Commissioners Absent: Also Present: * * * * * * * * * Commissioner introduced the following resolution, a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA WHEREAS, the bond order described below (the "Bond Order") has been adopted, and it is desirable to make provision for the issuance of the Bond authorized by the Bond Order; and WHEREAS, the Southwest Water and Sewer District of Harnett County, North Carolina (the "District"), desires to issue its General Obligation Refunding Water and Sewer Bond, Series 2013 (the "Bond'') and desires to request that the Local Government Commission (the "Commission") sell the Bond through a negotiated sale to the County of Harnett, North Carolina (the "County") in accordance with the terms and conditions set forth in a District Bond Purchase Agreement to be dated on or about April 24, 2013 (the "District Bond Purchase Agreement") among the District, the Commission and the County, a copy of which has been filed with the County and made available to the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District; WHEREAS, LOBs (as defined below) will be simultaneously executed and delivered to facilitate the County's purchase of the Bond, among other purposes. NOW, THEREFORE, BE IT RESOLVED by the Board as follows: Section 1. to them below: For purposes of this Resolution, the following words have the meanings ascribed "Bond'' means the District's General Obligation Refunding Water and Sewer Bond, Series 2013, authorized under the Bond Order. PP AB 2056676v2 "Bond Order" the Bond Order authorizing the General Obligation Refunding Water and Sewer Bond adopted by the Board on March 4, 2013, effective on its adoption. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association and its successors or assigns, as escrow agent under the Escrow Agreement. "Escrow Agreement" means an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent. "Federal Securities" means (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in clause (a) or (b) hereof issued or held in the name of a trustee in book-entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; or (c) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) hereof held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in clause (a) hereof, and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "Indenture" means an Indenture of Trust dated as of April 1, 2013 between Harnett County Public Facilities Corporation and U.S. Bank National Association, as trustee. "LOBs" means Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013, executed and delivered under the Indenture. "Pricing Certificate" means the certificate of the County's Finance Officer delivered in connection with the issuance of the Bond which establishes with respect to the Bond the final maturity amounts, the interest payment dates, the interest rates, the provisions for redemption and the provisions for the application of proceeds, all as agreed on in the District Bond Purchase Agreement. "Refunded Bonds" means $2,400,000 in aggregate principal amount of the 2004 Bonds maturing on and after June 1, 2015. "2004 Bonds" means the District's $3,790,000 General Obligation Refunding Bonds, Series 2004. Section 2. The County Manager, the Clerk to the Board, the Finance Officer and the Deputy Finance Officer shall act as set forth herein as officers of the District. Section 3. $3,000,000. PPAB 2056676v2 The District shall issue its Bond in an aggregate principal amount not to exceed 2 Section 4. The Bond shall be dated its date of issuance. The Bond shall pay interest semiannually on December 1 and June 1, beginning June 1, 2013, unless the County's Finance Officer establishes different dates in her Pricing Certificate. The Bond is being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section 5. The Bond is payable in annual installments on June 1 in each year, unless the Finance Officer establishes a different date in her Pricing Certificate. The annual installments of principal and corresponding interest rates of the Bond will be as set forth in the Pricing Certificate. Section 6. The Bond is to be numbered "R-1" and shall bear interest from its date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360-day year of twelve 30-day months. Section 7. The Bond is to be registered as to principal and interest, and the Finance Officer is directed to maintain the registration records with respect thereto. The Bond shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board, each acting on behalf of the District. An original or facsimile of the seal of the District is to be imprinted on the Bond. Section 8. If the Pricing Certificate designates a date for the Bond on and after which the Bond is subject to redemption, then such Bond is subject to redemption before maturity, at the option of the District, from any money that may be made available for such purpose, either in whole on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bond to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bond in the Pricing Certificate. The redemption provisions relating to the Bond shall correspond to the redemption provisions of the LOBs. If the Bond is subject to optional redemption, when the District elects to redeem the Bond, notice of such redemption of such Bond, stating the redemption date and redemption price and further stating that on such redemption date there are due and payable on the Bond the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to the registered owner of such Bond, by prepaid certified or registered United States mail, at the address provided to the District by the registered owner, but any failure or defect in respect of such mailing will not affect the validity of the redemption. The District will also mail or transmit by facsimile a copy of the notice of redemption within the time set forth above to the Commission. Section 9. The Bond and the provisions for the registration of the Bond and for the approval of the Bond by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. Unless the Pricing Certificate provides otherwise, the District shall cause the portion of the proceeds of the Bond necessary to defease and redeem the Refunded Bonds to be deposited with the Escrow Agent to be applied as set forth in the Escrow Agreement. Any remaining portion of the proceeds of the Bond shall be deposited as set forth in the District Bond Purchase Agreement. Section 11. Actions taken by officials of the District to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E-8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. 3 PP AB 2056676v2 Section 12. The Commission is hereby requested to sell the Bond through a negotiated sale to the County pursuant to the terms of the District Bond Purchase Agreement at a true interest cost not to exceed 4.00%. The form and content of the District Bond Purchase Agreement are in all respects approved and confirmed. The Chairman of the Board, the County Manager or the Finance Officer, each acting on behalf of the District, is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the District Bond Purchase Agreement for and on behalf of the District, including necessary counterparts, in substantially the form and content presented to the District, but with such changes, modifications, additions or deletions therein as he or she may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the District Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Finance Officer, each acting on behalf of the District, are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the District Bond Purchase Agreement as executed. Section 13 The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are hereby authorized and directed, individually and collectively, to cause the Bond to be prepared and, when the Bond has been duly sold by the Commission, to execute the Bond and to tum the Bond over to the registrar and transfer agent of the District for delivery to the County or its assignee. Section 14. The Chairman of the Board, the County Manager, the Finance Officer and the Clerk to the Board, each acting on behalf of the District, are authorized and directed, individually and collectively, 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 carry out the intent and purposes of this Resolution. Section 15. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bond if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bond and would not cause the interest on the Bond to be included in the gross income of a recipient thereof for federal income tax purposes. Without the express consent of the owner of the Bond, no modification or amendment to the Bond may reduce the principal amount of the Bond, reduce the interest rate payable on the Bond, extend the Bond's 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 owner of the Bond is binding on the owner of the Bond 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, the owner of the Bond shall have no 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 owner of the Bond, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first-class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of 4 PP AB 2056676v2 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 at the principal office of the Registrar for inspection by the owner of the Bond. If, within 60 days or such longer period as shall be prescribed by the District following the giving of such notice, the owner of the Bond has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 16. Nothing in this Resolution precludes (a) the payment of the Bond from the proceeds of refunding bonds or (b) the payment of the Bond from any legally available funds. If the District causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owner of the Bond the principal of the Bond (including interest to become due thereon) and, premium, if any, on the Bond, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, and the principal of the Bond (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the District receives an opinion of a nationally recognized accounting firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the District shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the District, for the mailing of a notice to the owners of the Bond that such moneys are so available for such payment. Section 17. All acts and doings of the Chairman of the Board, the County Manager, the Finance Officer, the Deputy Finance Officer and the Clerk to the Board, each acting on behalf of the District, that are in conformity with the purposes and intent of this Resolution and in the furtherance of the issuance of the Bond and the execution, delivery and performance of the District Bond Purchase Agreement are in all respects approved and confirmed. Section 18. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bond authorized hereunder. Section 19. The District agrees to provide the County whatever information that may be necessary for the County to comply with its undertaking with respect with Rule 15c2-12 (the "Rule") promulgated by the Securities and Exchange Commission (the "SEC') and for the benefit of the Registered Owners and beneficial owners of the LOBs. The provisions of this Section shall terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest with respect to the LOBs. 5 PP AB 2056676v2 Section 20. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 21. This Bond Resolution is effective on its adoption. 6 PP AB 2056676v2 On motion of Commissioner , the foregoing resolution entitled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,000,000 GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" was duly adopted by the following vote: Ayes: Nays: 7 PPAB 2056676v2 STATE OF NORTH CAROLINA ) ) ss: COUNTY OF HARNETT ) I, Margaret Regina Wheeler, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, SITTING AS THE GOVERNING BODY OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA, PROVIDING FOR THE ISSUANCE OF A NOT TO EXCEED $3,000,000 GENERAL 0BLIGA TION REFUNDING WATER AND SEWER BOND, SERIES 2013 OF THE SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA" adopted by the Board of Commissioners of the County of Harnett, North Carolina, sitting as the governing body of Southwest Water and Sewer District of Harnett County, North Carolina, at a regular meeting duly held on the 41h day of March, 2013. WITNESS my hand and the corporate seal of said District, this the _day of March, 2013. (DISTRICT SEAL) PPAB 2056676v2 Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina No. R-1 APPENDIX A FORMOFBOND UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF HARNETT $ __ _ SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA MATURITY DATE DATED DATE June 1, 20_ April_, 2013 REGISTERED OWNER: COUNTY OF HARNETT, NORTH CAROLINA PRINCIPAL SUM: -----DOLLARS GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 THE SOUTHWEST 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, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the interest rates per annum specified below, payable on June 1, 2013 and semiannually thereafter on December 1 and June 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to the County of Harnett, North Carolina (the "County") or its nominee as registered owner of the Bond. Principal installments are due annually on June 1 of the years and in the amounts set forth below and will bear interest (computed on the basis of a 360-day year oftwelve 30-day months) as follows: JUNE1 PRINCIPAL RATE JUNE1 PRINCIPAL RATE A-1 PP AB 2056676v2 The portions of this Bond maturing on or after June 1, 20 _ may be redeemed prior to their installment payment dates at the option of the District, from any funds that may be available for such purpose, in whole or in part on any date on or after June 1, 20 _. The portions of this Bond so called for redemption will be redeemed at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the date fixed for redemption. Notwithstanding the foregoing, this Bond may be redeemed only if the Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 (the "LOBs") are prepaid pursuant to an Indenture of Trust dated as of April 1, 2013 relating to the LOBs. This Bond 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 of North Carolina, a bond order adopted by the Board of Commissioners of the County (the "Board''), sitting as the governing body of the District, on March 4, 2013 and effective on the date of its adoption. This Bond is being issued to refund in advance of their maturities $2,400,000 aggregate principal amount of the District's General Obligation Refunding Bonds, Series 2004 maturing on and after June 1, 2015. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, 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 BOND IN ACCORDANCE WITH ITS TERMS. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. A-2 PPAB 2056676v2 IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board and the Clerk to the Board, each acting on behalf of the District, and an original or facsimile of the seal of the District to be imprinted hereon and this Bond to be dated as of the Dated Date above. (DISTRICT SEAL) Margaret Regina Wheeler, Clerk to the Board of Commissioners Date of Execution: April_, 2013 Jim Burgin, Chairman Board of Commissioners The issue hereof has been approved under the provisions of The Local Government Bond Act. T. VANCE HOLLOMAN Secretary of the Local Government Commission A-3 PPAB 2056676v2 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 Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Attorney to register the transfer of the within Bond 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 Participant in the Securities Transfer Agent Medallion Program ("Stamp") or similar program. NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED PPAB 2056676v2 DRAFT FOR BOARD APPROVAL-NOT FINAL DOCUMENT DISTRICT BOND PURCHASE AGREEMENT AND RECEIPT The County of Harnett, North Carolina (the "County") hereby offers to purchase the bond set forth below (the "Bond") from the Local Government Commission of the State of North Carolina (the "Commission") at a purchase price equal to the par amount of such Bond, there being no discount nor premium therefor. The Bond subject to this District Bond Purchase Agreement and Receipt is the $ General Obligation Refunding Water and Sewer Bond, Series 2013 of the Southwest Water and Sewer District of Harnett County, North Carolina. The schedule of annual principal installments and associated interest rates with respect to the Bond are set forth in Exhibit A hereto. The Commission, subject to the approval of the Southwest Water and Sewer District of Harnett County, North Carolina as evidenced below, hereby sells the Bond to the County at a sale price equal to the purchase price of the Bond in the amount of $ . Such funds represent a portion of the proceeds of $ Limited Obligation Bonds (County of Harnett, North Carolina), Series 2013 executed and delivered under an Indenture of Trust dated as of April 1, 2013 (the "Indenture") between Harnett County Public Facilities Corporation (the "Corporation") and U.S. Bank National Association, as trustee (in such capacity, the "Trustee") for the purpose, among others, of allowing the County to purchase the Bond. The purchase price of the Bond shall be delivered as follows: (1) $[2004 Amount] shall be delivered to U.S. Bank National Association, as escrow agent (in such capacity, the "Escrow Agent") under an Escrow Agreement dated as of April 1, 2013 between the County and the Escrow Agent; and (2) $[COl Amount] shall be delivered to the Trustee for deposit in the Costs of Issuance Fund. The Commission hereby accepts and acknowledges payment of the purchase price by such method on the date hereof. The County hereby acknowledges the physical delivery of the Bond on the date hereof and, simultaneously on receipt of the Bond, has assigned the Bond to the Corporation pursuant to a separate instrument. The Trustee shall hold the Bond as part of the Trust Estate created pursuant to the Indenture. The Trustee hereby acknowledges (a) the physical delivery of the Bond to be held by it as part of the Trust Estate and (b) receipt of the amount set forth in paragraph (2) above. The Escrow Agent hereby acknowledges receipt of the amount set forth in paragraph (1) above. Each capitalized term used but not defined herein has the meaning given to such term in the Indenture. Dated: April _, 2013 PPAB 2056676v2 This District Bond Purchase Agreement and Receipt may be executed in several counterparts, all being deemed one and the same document. [SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina (DISTRICT SEAL] ATTEST: Clerk to the Board of Commissioners County of Harnett, North Carolina PP AB 2056676v2 COUNTY OF HARNETT, NORTH CAROLINA By: Interim County Manager [SIGNATURES FOLLOW] LOCAL GOVERNMENT COMMISSION By: Secretary SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA By: Sylvia S. Blinson Finance Officer of the County of Harnett, North Carolina ACKNOWLEDGEMENT U.S. BANK NATIONAL ASSOCIATION, as Trustee and Escrow Agent By: Vice President 2 Exhibit A $ SOUTHWEST WATER AND SEWER DISTRICT OF HARNETT COUNTY, NORTH CAROLINA GENERAL OBLIGATION REFUNDING WATER AND SEWER BOND, SERIES 2013 The schedule of annual principal installments and associated interest rates with respect to the Bond are as follows: JUNEl PRINCIPAL RATE JUNEl PRINCIPAL RATE PPAB 2056676v2 updated 2/15/2013 Agenda Item /8 Harnett County Department of Public Health Activities Summary Harnett COUNTY 02/25/13 Mr. Joseph Jeffries, Interim Harnett County Manager Harnett County Board of Commissioners 102 E. Front Street P. 0. Box 759 Lillington, NC 27546 Re: Total Unpaid 2012-13 Property Taxes Mr. Jeffries and Board of Commissioners: Agenda Item _.....l/'-"S ___ _ Tax Department www.harnett.org Harnett County Government Complex 305 West Cornelius Harnett Boulevard Suite 101 Lillington, NC 27546 ph: 910-893-7520 fax: 910-814-4017 In accordance with General Statute 105-369(a), this is to report the total unpaid 2012-13 taxes that are liens on real property is $2,490,593.38. Please find attached, the report generated by the software. Sincerely, ~A r :1; l u/JL- wm. A. (Tony) Wilder Tax Administrator/Deputy County Manager Enclosure strong roots • new growth Harnett County Tax Collections ACCOUNT .RJU~.lUVABLE RE P O R T FROM 12/01/2011 TO 02/22 / 2 0 1 3 TAX YEAR: 2012 AB S T R A C T TY P E : RE P P Charge Opening Levy Re g u l a r Le v y De f L e v y Re b a t e s Re l e a s e s Co l l e c t e d In t e r e s t To t a l Cl o s i n g Le v y %L e v y Codes Due Bi l l e d Bi l l e d Le v y Co l l e c t i o n s Du e Co l l e c t e d CTY 0.00 48 , 8 4 9 , 1 0 6 . 8 9 29 , 6 6 9 . 6 5 53 3 , 4 8 8 . 6 7 1, 7 4 2 . 6 4 45 , 8 7 9 , 2 9 4 . 0 5 53 , 6 3 0 . 8 3 45 , 9 3 2 , 9 2 4 . 8 8 2, 4 8 1 , 0 2 5 . 9 2 94 . 9 6 % CTYLL 0.00 86 , 1 2 7 . 3 5 0. 0 0 8, 6 1 5 . 4 2 34 . 1 1 67 , 9 1 0 . 3 6 92 . 2 0 68 , 0 0 2 . 5 6 9, 5 6 7 . 4 6 88 . 8 9 % ADV 0.00 15 . 0 0 0. 0 0 0. 0 0 0. 0 0 10 . 0 0 0. 0 0 10 . 0 0 5. 0 0 66 . 6 7 % COST 0.00 17 , 4 9 5 . 4 0 0. 0 0 0. 0 0 0. 0 0 8, 3 3 2 . 9 2 0. 0 0 8, 3 3 2 . 9 2 7, 5 8 1 . 2 8 47 . 6 3 % RECYCLE 0.00 3, 3 2 4 , 0 8 5 . 0 0 0. 0 0 79 , 3 6 5 . 0 0 0. 0 0 2, 9 9 5 , 0 1 3 . 4 6 0. 0 0 2, 9 9 5 , 0 1 3 . 4 6 24 9 , 7 0 6 . 5 4 92 . 4 9 % Totals 0.00 52 , 1 9 0 , 7 0 2 . 2 9 29 , 6 6 9 . 6 5 61 2 , 8 5 3 . 6 7 1, 7 4 2 . 6 4 48 , 8 8 2 , 6 5 0 . 4 3 53 , 6 3 0 . 8 3 48 , 9 3 6 , 2 8 1 . 2 6 2, 7 3 8 , 3 1 8 . 7 4 94 . 7 9 % 0.00 86 , 1 2 7 . 3 5 0. 0 0 8, 6 1 5 . 4 2 34 . 1 1 67 , 9 1 0 . 3 6 92 . 2 0 68 , 0 0 2 . 5 6 9, 5 6 7 . 4 6 88 . 8 9 %