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HomeMy WebLinkAbout090313a Agenda PackageHARNETT COUNTY BOARD OF COMMISSIONERS County Administration Building 102 East Front Street Lillington, North Carolina Regular Meeting September 3, 2013 9:00am 1. Call to order-Chairman Jim Burgin 2. Pledge of Allegiance and Invocation-Vice Chairman Gary House 3. Consider additions and deletions to the published agenda 4. Consent Agenda A. Minutes B. Budget Amendments C. Tax refunds, rebates and releases D. Public Utilities requests approval of an increasing final adjusting change order for Sanford Contractors/Fort Bragg Wastewater Project in the amount of$506,246.80. The majority of the additional funding required for this change order resulted from an aerial crossing of Jumping Run Creek along Hwy 210 at the Cumberland and Harnett County line. E. Sheriff's Office would like to establish a fee of $150 to offer polygraph services to local law enforcement agencies. F. Cooperative Extension requests permission to apply for a grant from North Carolina State University Family & Consumer Science Foundation in the amount of$1,000 to support kindergarten readiness program through the Parents As Teachers Program in Cooperative Extension G. County Engineer requests approval of easement to allow Duke Energy Progress to install power for the pump stations for the Dunn Erwin Corrective Action Project located at the Dunn Erwin Landfill. H. County Engineer requests permission to decommission the fuel tank and pump at the County garage. County vehicles will be fueled at service stations using the Wright Express fuel cards. Fuel purchases will be in accordance with the NC State Contract Purchasing Program. I. County Engineer requests adoption of the fuel card usage policy. Fuel purchases will be in accordance with the NC State Contract Purchasing Program. J. County Engineer requests approval of contract with Clark Nexen for preliminary feasibility study to address the reuse of Shawtown and Boone Trail schools. K. Relay for Life of Harnett County requests waiver of room rental fees for the use of the Commons Area Meeting Room for their Planning Committee meetings. L. The Harnett County Fair Board requests a fee waiver for the county landfill for 2 to 3 loads of demolition, estimated $100 -$150 in cost, to prepare for the upcoming livestock show. The Fair Board will hold a livestock show at Chandler's Way Ranch located at 305 Creekside Drive in Angier. Owner Dave Chandler has waived the Page 1 rental fee for the covered arena for the livestock show however some cleaning is needed to host the show. Volunteers and Fair Board members will work to prepare the site for the livestock show. M. Finance Officer requests approval of new fees for Emergency Management for the 2013/2014 budget year for ABC Form Inspection of$35 and Foster Home Inspection of$20. N. Administration requests approval of Resolution Supporting NC DOT's US 401 Improvement Project 0. Cooperative Extension requests approval of Proclamation Celebrating the Centennial Anniversary of Extension and Community Association 5. Period of up to 30 minutes for informal comments allowing 3 minutes for each presentation 6. Appointments 7. County Manager's report-Tommy Bums, County Manager 8. New Business 9. Closed Session 10. Adjourn Page2 Agenda Item '/-C. Date : 09/03/2013 Approved By : TO : HARNETI COUNTY BOARD OF COMMISSIONERS RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND PENALTIES FOR ALL MUNICIPALITIES BURGOYNE, FELIX CHARLES Ill City 0.00 Military 100 WATERS WAY 0002000836-2012-2012-000000 8.96 Refund Exemption LILLINGTON, NC, 27546 County 8.96 2 STRITIMAN, MATTHEW City 0.00 Military SAMUEL 0002005574-2012-2012-000000 91.00 Refund Exemption 86 SNOWDEN LN CAMERON, NC, 28326-6063 County 91.00 3 WHITEHURST, ALLEN KYLE City() 43.16 Situs 278 GOLD CT 0001887343-2013-2011-000000 44.75 Refund Correction BROADWAY NC, 27505-8192 County 1.59 4 WHITEHURST, ALLEN KYLE City() 42.54 Situs 278 GOLD CT 0001887343-2013-2012-000000 43.31 Refund Correction BROADWAY NC, 27505-8192 County 0.77 5 WIENKE, DAVID JOHN City 0.00 Military WIENKE, SAMANTHA RACHEL 0002084127-2012-2012-000000 166.49 Refund Exemption 33 WOLFPACK LN County 166.49 CAMERON, NC, 28326 -6284 6 WILLIAMS, IMANI DANIELLE City 0.00 Military 12 BUCKEYE PL 0002078328-2012-2012-000000 113.77 Refund Exemption CAMERON, NC 283266167 County 113.77 CAMERON, NC, 28326-6167 7 WOLF, !SOBEL T City 0.00 Value 2386 NC 55 E 0000060512-2009-2009-000000 69.16 Refund Decrease DUNN NC, 28334-0000 County 69.16 8 WOLF, !SOBEL T City 0.00 Value 2386 NC 55 E 0000060512-2010-2010-000000 69.16 Refund Decrease DUNN NC, 28334-0000 County 69.16 9 WOLF, !SOBEL T City 0.00 Value 2386 NC 55 E 0000060512-2011-2011-000000 70.03 Refund Decrease DUNN NC, 28334-0000 County 70.03 10 WOLF, !SOBEL T City 0.00 Value 2386 NC 55 E 0000060512-2012-2012-000000 70.03 Refund Decrease DUNN NC, 28334-0000 County 70.03 WM. A. TONY WILDER City Total 85.70 Revenue Administrator County 660.96 Total Total to be 746.66 Refunded CC: WM. A. TONY WILDER Board Report Date : 09/03/2013 Approved By: ________ _ TO : HARNETI COUNTY BOARD OF COMMISSIONERS RE: CONSIDERATION OF REFUND FOR TAXES, INTEREST AND PENAL TIES FOR ALL MUNICIPALITIES FAIRWAY POINT LLC City 125 WHISPERING PINES DR 0001169223-2011-2011-000000 SPRING LAKE NC, 28390- 0000 County 2 FAIRWAY POINT LLC City 125 WHISPERING PINES DR SPRING LAKE NC 283900000 0001264684-2012-2012-000000 SPRING LAKE NC, 28390-County 0000 WM. A. TONY WILDER Revenue Administrator CC: WM. A. TONY WILDER 0.00 1,640.42 0.00 600.00 City Total County Total Total to be Refunded 1 ,640.42 Refund 600.00 Refund 0.00 2,240.42 2,240.42 Value Decrease Double Billed Agenda Item L.f-Q Board Meeting Agenda Item .Se-pfeh1 be r 3, Q C(3 MEETING DATE: A-ugust 19, 2613 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Final Adjusting Change Order for Sanford Contractors/Fort Bragg Wastewater Project REQUESTED BY: Steve Ward, HCDPU REQUEST: This is a formal request for the Board to approve an increasing final adjusting change order in the amount of $506,246.80. The majority of additional funding required for this change order resulted from an aerial crossing of Jumping Run Creek along Hwy 210 at the Cumberland and Harnett County line. The crossing was necessitated by the inability of the contractor to bore under the bridge/culvert at the creek due to steel pylons located beneath the culvert. Additional final quantities and an added pump station bypass along Shady Grove Rd were the other cost items that contributed to the change order. A summary of the change order is included for your review. This change order and others in this project are funded entirely by Fort Bragg through a project contingency fund negotiated prior to project construction. Please place this item on the consent agenda at the next available meeting. COUNTY MANAGER'S RECOMMENDATION: C:\Users\sward\Desktop\Fort Bragg\CLIN 0003 Construction\Sanford Contractors, Inc. Final Adjusting CO Agenda Request 7-30-13.doc Page I of I USDA-FmHA FORM APPROVED OMB NO. 0575-0042 Form FMHA 1924-7 (Rev. 2/87) CONTRACT CHANGE ORDER 1-=0;.:.:R::::.:DE:::.R.:...:.N.:.::O;.;... --'"""':::"~~2 ~,...--.. DATE 7/12/2013 STATE North Carolina CONTRACTOR FOR Harnett County Wastewater Service to Fort Bragg -Contract 2 Section 2 COUNTY I Harnett OWNER Harnett County Department of Public Utilities --------------~~-"!?!~_<?.?.~~~~~C?_~S..!_I~':;-------------- Contractor You are hereby requested to comply with the followinj! changes from the contracr plans and specifications: Description of Changes DECREASE INCREASE (Supplemental Plans and Specifications Attached) in Contract Price in Contract Price 1. Shady Grove Pump Station Bypass $110,662.05 2. Shady Grove Bore at Pump Station-Right otWay Issue $7,936.20 3. Cross Under Culvert at Station 1 68+00 per NCDOT Requirement $30,516.91 4. Highway 210 Station 121+00 to 137+00 R&R Exsting Catch Basins $17,352.14 5. Additional Labor and Expense at Ray Road due to Required Extra Depth Excavation $8,379.50 6. Aerial Crossing of Arch Culvert $95,510.00 7. Adjusted quantities $96,550.00 a. HOPE installed In Casing and Cut and Cover $53,640.00 9. Failed Pilot Hole $85,678.00 TOTALS $506,246.80 I NET CHANGE IN CONTRACT PRICE $506,246.80 I JUSTIFICATION See Attached summary. Total change Is approximately 10.7% of bid price. The Contract amount, $4,740,753.02 will be Increased by the sum of: Dollars $506,246.80 The Contract Total Including this and previous Change Orders Will Be: Dollars $5,246,999.82 The Contract Period Provided for Completion Will Be Unchanged: Days The document will become a supplement to the c all provisions will apply hereto. Requested / Date Recommende::d~::::-.::.._ ______ ..:.....:;._...:.......;...,...:..;~....J1~.-t\-.!....tt.......;~......;_ __ ...;.\>_:f._· _· ~......;_\_":;!,_«1_4_-\-• _!_> __ ~-- Date Accepted 0 Date Jim Burgin, Chairman Harnett County Board of Commissioners H a r n e t t Co u n t y Wa s t e w a t e r Se r v i c e to Fo r t Br a g g - Co n t r a c t 2 Fo r c e Ma i n H a r n e t t C o u n t y D e p a n m e n t o f Pu b l i c Ut i l i t i e s F i n a l Co n t r a c t Co s t - - - - - OR I G I N A L CO N T R A C T CO S T CH A N G E OR D E R NO . I CH A N G E OR D E R N O . 2 I. Sh a d y Gr o v e P u m p St a t i o n By p a s s 2. Sh a d y Gr o v e Bo r e R O W is s u e s 3. Cu l v e r t @ 18 8 • 0 0 4. Ca t c h Ba s i n s o n 2! 0 5. Ad d i t i o n a l L! b o r an d Eq u i p m e n t at Ra y Ro a d 6. Ae r i a l Cr o s s i n g of Ar c h Cu l v e r t 7. Ad j u s t e d Qu a n t i t i e s 8. HD P E in s t a l l e d in Ca s i n g an d C u t an d Co v e r I 9. Fa i l e d Pi l o t Ho 1 e FI N A L C O N T R A C f PR I C E ! __ _ _ _ _ _ _ --~ - - - - - · - · · · - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - · - · · · · · · - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - · - · · - - - - - - - 6 0 0 j L F j $8 9 4 C J l BI D QU A N T I T I E S VE R S U S FI N A L QU A N T I I I E S (C H A N G E RE F L E C T E D IN IT E M N O . 7 AB O V E ) Bi d Q u a n t i t Y Bi d Co s t lt e m De s c r i p t i o n Q u a n t i t y U n i t U n i t Pr i c e TO t : a l Se c t i o n 2: 36 - In c h F o r c e M a i n 1 36 ' DR 2 1 C9 0 5 PV C Fo r c e Ma i n 19 , 8 4 7 LF $1 5 6 . 0 0 $3 , 0 9 6 , ] 3 2 0 C 2. 3 0 DR l l HD P E (I n s t a l l e d by Di r e c t i o n a l Bo r e Un d e r Cr e e k Cr o s s i n g s ) 1, 4 5 0 LF 47 0 . 0 0 68 1 , 5 0 0 . 0 ( 3. <f- 8 ' St e e l Ca s i n g In s t a l l e d by Bo r e an d Ja c k (0 . 6 2 5 ' Wa l l Th i c k n e s s ) 77 0 LF $5 5 0 . 0 0 $4 2 3 , 5 0 0 . 0 C 4. 2' Ai r Re l e a s e Va l v e an d Va u l t 7 EA $4 , 0 0 0 . 0 0 $2 8 , 0 0 0 . 0 C 5. 36 ' Re s t r a i n e d Me c h a n i c a l jo i n t Pl u g Va l v e , Va l v e Bo x , an d Ma r k e r 5 EA $3 0 , 0 0 0 . 0 0 $1 5 0 , 0 0 0 . 0 0 6. 36 ' 90 De g r e e Re s t r a i n e d Me c h a n i c a l Jo i n t Be n d 8 EA $l l , 6 0 0 . 0 0 $9 2 , 8 0 0 . 0 0 7. 36 ' 45 De g r e e Re s t r a i n e d Me c h a n i c a l Jo i n t Be n d 3 EA 58 , 4 0 0 . 0 0 $2 5 , 2 0 0 . 0 0 8. 36 ' 22 1 / 2 De g r e e Re s t r a i n e d Me c h a n i c a l J o i n t Be n d 1 EA $8 , 0 0 0 . 0 0 $8 , 0 0 0 . 0 C 9. 36 ' ll 1 1 4 De g r e e Re s t r a i n e d Me c h a n i c a l Jo i n t Be n d 1 EA $8 , 0 0 0 . 0 0 SB , O O O . O C 10 . Cu t an d Pa t c h As p h a l t / C o n c r e t e 38 0 LF $4 4 . 0 0 $I6 , n o . o o ll . Cu t an d Pa t c h Di r t / G r a v e l 42 5 LF $7 . 0 0 S2 , 9 7 5 . 0 C 12 . Co n n e c t to Ex i s t i n g Te r m i n a l Ma n h o l e In c l u d i n g Tw o Re s t r a i n e d 1 l S $2 6 , 5 2 5 . 0 0 $2 6 , 5 2 5 . 0 ( Me c b a n i c a l Jo i n t 90 De g r e e Be n d s an d Se g m e n t of Pi p e To t a l Se c t i o n 2 $4 , 5 5 9 , 3 5 2 0 C Sa n f o r d Sa c t i o n 2 Fo r c e Ma i n Ch a n g e Or d e r Qu a n t i t i e s 28 ma r 13 r 7 ma y 13 Ch a n g e Or d e r Su n - m a r y 12 Ju l 1 3 4,559,35200 $18l,40l.02 $506,246.80 $l l 0 , 6 8 2 . 0 5 $7 , 9 3 6 . 2 0 $3 0 , 5 1 8 . 9 1 $1 7 , 3 5 2 1 4 58 , 3 7 9 . 5 0 $9 5 , . 5 1 0 . 0 0 $9 6 , 5 5 0 . 0 0 55 3 , 6 4 0 . 0 0 $8 5 , 6 7 8 . 0 0 $5,246,999.82 Fi n a l Q u a n t i t y Fi n a l Ar l ' u s t e d Quantities Fi n a l U . I Q u a n t i t y ru t U n i t Pr i c e Total 19 , 8 9 7 LF $1 5 6 . 0 0 $3)03,93200 1, 4 0 0 LF 47 0 . 0 0 $658,000.00 70 5 LF $5 5 0 . 0 0 $387,750.00 6 EA $4 , 0 0 0 . 0 0 $24,000.00 5 EA $3 0 , 0 0 0 . 0 0 $150,000.00 9 EA 51 1 , 6 0 0 . 0 0 $104,400.00 14 EA $8 , 4 0 0 . 0 0 Sll7,600.00 3 EA $8 , 0 0 0 . 0 0 $24,000.00 5 EA $8 , 0 0 0 . 0 0 $40,000.0C 38 0 LF $4 - 4 - . 0 0 $I6.no.oo 42 5 LF $7 . 0 C $2,975.00 1 l S $2 6 , 5 2 5 . 0 0 $26,525.001 $4,655,902.001 711312013 Agenda Item L/-E Board Meeting Agenda Item YIEETING DATE: September 3, 2013 TO: HARNETT COU~TY BOARD OF COMYIISSIONERS SCBJECT: New Fee REQCESTED BY: SheriffRollins REQUEST: The Harnett County Sheriffs office would like to offer polygraph services to local law enforcement agencies for an established fee of$ 150.00. COUNTY MANAGER'S RECOMMENDATION: C:\Users\MHAIRR\Desktop\20 13 2014\13 14 Agenda\:--.Jew SRO position.doc I of I Page Board Meeting Agenda Item Agenda Item !:1_£ MEETING DATE: September 3, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Permission to Apply for Grant REQUESTED BY: Tyrone L Fisher, County Extension Directo~ REQUEST: Harnett County Cooperative Extension request permission to apply for a grant from North Carolina State University Family & Consumer Science Foundation in the amount of$1,000 to support kindergarten readiness program through the Parents As Teachers Program in Cooperative Extension. COUNTY MANAGER'S RECOMMENDATION: C:\Users\swilliam~ \Desktop\County forms\agendaform20 12-2013 .doc I of 1 Page FOUNDATION NC State University Innovative Programming Grant funded through the North Carolina Family and Consumer Sciences Foundation The Innovative Programming Grant is designed to support initiatives and programs that enhance Family and Consumer Sciences educational programs at the county, district, and/or state levels. Funding Level: $1000 Guidelines for funds received: • Funds will be used within a year of their receipt. • Funds can supplement new or existing programming efforts. • Programs receiving funding must provide impact data and success stories to the NC Family and Consumer Sciences Foundation. • Funds will be handled according to county, district or state grant policies Who is eligible? Any active FCS staff member employed through North Carolina Cooperative Extension. Applicant can be a county, district or state staff member. Applications should be electronically sent to Dr. Wilma Hammett. Please send applications to wilma hammett@ncsu.edu. NCFCSF Innovative Programming Grant May, 2013 Board Meeting Agenda Item Agenda Item _4.f-{;. MEETING DATE: September 3, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Easement for power for Dunn Erwin Corrective Action Project REQUESTED BY: Amanda Bader, County Engineer REQUEST: Request approval of attached easement to allow Duke Energy Progress to install power for the pump stations for the Dunn Erwin Corrective Action Project located at the Dunn Erwin Landfill. COUNTY MANAGER'S RECOMMENDATION: http://hamett.org/boc/downloads/agendafonn2013.doc Page 1 of 1 EASEMENT NORTH CAROLINA HARNETT COUNTY THIS EASEMENT made this ___ day of----------· 20 __ , from COUNTY OF HARNETT, hereinafter referred to as GRANTOR {whether one or more), to CAROLINA POWER & LIGHT COMPANY, a North Carolina public service corporation, d/b/a PROGRESS ENERGY CAROLINAS, INC., hereinafter referred to as PEC; W I T N E S S E T H: THAT GRANTOR, for and in consideration of the sum of ONE DOLLAR {$1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby grant unto PEC, its successors and assigns, the right, privilege, and easement to go in and upon the land of GRANTOR situated in Grove Township of said County and State, described as follows: containing 174.945 acres. more or less, and being the land described in deeds to County of Harnett from: (1)Thelma Lucas Parrish, et vir. dated March 30, 1995, recorded in Book 1091 page 456; (2) P. J. Johnson. et ux. dated April 26, 2004, recorded in Book 1922 Page 633: (3)Jeanette Daniel Johnson. et vir. dated March 3, 2005. recorded in Deed Book 2049 page 178; (4)Lynda Daniel Butler. et vir, dated March 3, 2005, recorded in Deed Book 2049 Page 182: and (5) Richard Wayne Daniel, et ux. dated March 3. 2005. recorded in Deed Book 2049 Page 186, all of Harnett County Registrv. LESS AND EXCEPT any prior out-conveyances, and to construct, maintain, and operate electric and/or communication facilities thereon consisting of poles, cables, wires, guys, anchors, underground conduits, enclosures, and other pertinent facilities within an easement area thirty {30) feet wide for the overhead portion of said facilities and ten (1 0) feet wide for the underground portion of said facilities together with an area ten (10) feet wide on all sides of the foundation of any PEC enclosure, with the right to do all things necessary, including, but not being limited to, the right: (a) to enter said easement area at all times over the adjacent land to inspect, repair, maintain, and alter said facilities; (b) to keep said easement area cleared of trees, shrubs, undergrowth, buildings, structures, and obstructions; (c) to trim or cut any tree adjacent to said easement area that may, in the opinion of PEC, endanger the overhead facilities or hinder the maintenance, operation, and use of the same; and {d) to install, at angle points of the overhead facilities, guy wires and anchors outside of said easement area. The center line of the facilities shall be the center line of said easement area. PEC shall not install facilities outside of said easement area without obtaining another EASEIIIIENT, except for those facilities that may be Installed as set forth in item (d) above. It is understood and agreed that said overhead facilities shall be approximately located as shown on the attached copy of map entitled "Dunn-Erwin Landfill Power Line Easement for Harnett County", dated August 14, 2013, prepared by Streamline Land Surveying, Inc., RLS, License No.C-1898, Project No. 130814HC. TO HAVE AND TO HOLD said rights, privilege, and easement unto PEC, its successors and assigns, forever. IN WITNESS WHEREOF, GRANTOR has caused this EASEMENT to be signed by its duly authorized officials and its official seal to be hereunto affixed, pursuant to a resolution of its governing body, as of the date first above written. ATTEST: ___ Clerk HARNETT COUNTY By:------------- , Chairman, --------=soa-rd-:-o-::f-::C:-o-mmissioners {Affix Official Seal) NORTH CAROLINA,----------COUNTY I, --------------------··a Notary Public of------------ County, North Carolina, certify that personally appeared before me this day and acknowledged that he(she) is Clerk of HARNETT COUNTY, and that by authority duly given and as the act of said COUNTY, the foregoing EASEMENT was signed in its name by its Chairman, sealed with its official seal, and attested by self as its Clerk. c Witness my hand and notarial seal, this ___ day of _____________ , 20 __ . -----------------~~-~~ . . . -. . Notary Public My commission expires:-------- The foregoing certificate of is certified to be correct. This EASEMENT and this certificate are duly registered at the date and time and in the book and page shown on the first page hereof. 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S u t. l o p Board Meeting Agenda Item Agenda Item lf -H MEETING DATE: September 3, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Fuel Usage REQUESTED BY: Amanda Bader, PE, County Engineer REQUEST: Requests permission from the Board to decommission fuel tank and pump at garage. County vehicles will be fueled at service stations using the Wright Express fuel cards. Fuel purchases will be in accordance with the North Carolina State Contract Purchasing Program COUNTY MANAGER'S RECOMMENDATION: http://www .hamett.org/boc/downl oads/agendaform20 13.doc I of I Page Board Meeting Agenda Item Agenda Item Y-I MEETING DATE: September 3, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Fuel Card Usage Policy REQUESTED BY: Amanda Bader, PE, County Engineer REQUEST: Requests adoption of the fuel card usage policy. County vehicles will be fueled at service stations using the Wright Express fuel cards. Fuel purchases will be in accordance with the North Carolina State Contract Purchasing Program COUNTY MANAGER'S RECOMMENDATION: http://www .harnett.org/boc/downloads/agendaforrn20 13 .doc I of I Page I. Purpose Fuel Card Usage Policy Engineering and Fleet Maintenance This policy establishes the requirements for managing and using fuel cards for County- owned and leased vehicles. II. Background The County will use cards issued in accordance with the North Carolina State Contract purchasing program for the purpose of purchasing fuel for County owned or leased vehicles. Ill. Procedures/Requirements/Responsibilities A. Engineering and Facilities Management 1. Establish policies and assign responsibilities to manage fuel card usage. Procedures and responsibilities must include the following: a. Collect monthly vehicle odometer readings to the vehicle's monthly fuel transactions to ensure fuel consumption is appropriate for the vehicle. b. Retain monthly statements. c. Resolve billing disputes. 2. Internal controls will be used for using fuel cards. Controls include: a. Limit on the number of transactions during a certain time period (day, month, week) b. Limit dollar amount per transaction. c. Require odometer reading at the point of sale. Fuel card usage may be suspended for incorrect odometer readings input. d. Prohibit non-fuel purchases. e. Prohibit fuel purchases to unleaded fuel or diesel only. No purchases of super unleaded or premium unleaded or equivalent will be allowed. 3. Fuel Cards will be assigned to a vehicle and shall not be used for other equipment or vehicles. 4. Odometer readings will be used to track mileage between oil changes. If the mileage exceeds 5500 miles between oil changes, fuel card usage will be suspended. B. Department Head Responsibilities 1. Request assignment of cards as needed to vehicle. 2. Review and approve monthly fuel card transactions for each authorized employee under his or her supervision and ensure fuel card usage is consistent with the employees' Work assignments. 3. Review monthly fuel reports to ensure calculated gas mileage is consistent and appropriate for the vehicle. C. Authorized Employee Responsibilities 1. Read the Fuel Card Policy. 2. Understand that in all instances, the driver is responsible for entering his/her own assigned ID number. Immediately report a lost or stolen cards. 3. Fueling of unauthorized vehicles or equipment is strictly prohibited. 4. Odometer readings shall be accurately entered by the user. 5. Only regular unleaded fuel or diesel fuel purchases are allowed. IV. Violations Any violations to this policy will result in appropriate disciplinary action in accordance with the Harnett Count Personnel Ordinance. Harnett County Fuel Card Use Employee Agreement 1. I have read, understand, and will comply with the Fuel Card Policy. 2. I understand that I am prohibited from using premium grade fuel. 3. I agree to use the card for all fuel purchases. 4. I will immediately notify my supervisor if a card is lost or stolen. 5. I understand that I am required to comply with internal control procedures. 6. I agree not to share my FueiiD with any other person. 7. I understand that I can only use the card for fuel for the authorized vehicle the card is assigned to. 8. If I misuse the card for personal purchases, I authorize the County to deduct from my salary or from other monies owed me, and amount equal to the total of the personal purchases, 1 agree to allow the County to collect any amounts owed by me even if the County no longer employs me. 9. I understand improper use of this card may result in disciplinary actions, including termination of employment and criminal action. 10. I understand that the County may terminate my card use privileges at any time for any reason. Employee Signature Issuer's Signature Employee Printed Name Issuer's Printed Name Employee Department Date Date Board Meeting Agenda Item Agenda Item 4-0' MEETING DATE: September 3, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Preliminary Feasibility Study for Shawtown and Boone Trail Reuse REQUESTED BY: Amanda Bader, County Engineer REQUEST: Request approval of contract with Clark Nexen for preliminary feasibility study to address the reuse of Shawtown and Boone Trail schools. COUNTY MANAGER'S RECOMMENDATION: http:/ /hamett.org/boc/ downloads/agendaform20 13 .doc Page 1 ofl Architecture & Engineering July 31, 2013 County of Harnett P.O. Box 759 Lillington, North Carolina 27546 Attn: Tommy Burns County Manager Re: Shawtown School, Boone Trail School, and the Old Lillington School Reuse Preliminary Feasibility Studies, CN Comm. No 4987 Dear Amanda, This letter is in follow up to our discussion relative to the scope of a preliminary feasibility study to assess the potential of reusing of Shawtown School, Boone Trail School, and the Old Lillington School for current educational facility needs. As we discussed, we will be drawing off of experience from having recently completed two similar projects for the Wake County Public School System where we renovated the former Thompson School to become the Men's Leadership Academy and two buildings on the Governor Morehead School property for the Women's Leadership Academy. We outlined a two-step process starting with completing a preliminary walk through and analysis of the condition of the existing buildings. Specific areas to be examined include the current requirements of the building code for educational facilities, the ADA, visual review of the existing building systems, and identification of other visible elements to be addressed to meet the requirements for reusing the building. The fee for the initial evaluation of each school will be $1,500.00. Once an on-site review is completed and it appears that a school can be updated to meet current code and operational requirements, then the process will move to a second step. We will review the standard educational program requirements for the school type, for example a middle school, in the Harnett County Schools and see what modifications or additions would be required to meet the educational specification for the school. We will then put an order of magnitude estimate on the cost of renovations and additions required and provide a summary of our analysis to the county. The fee for the program evaluation of each school selected for step two will be $1,000.00. We will proceed to schedule the site visit upon written acceptance of this proposal and move to complete the preliminary feasibility studies as quick as possible. If you find this proposal consistent with our discussion, please sign and return two copies. Archiucture & Engineering July 31, 2013 Page 2 of 2 We look forward to proceeding with this project. Feel free to call with any questions you may have. Sincerely, Clark Nexsen Architecture & Engineering ~ HCC/bas cc: Amanda Bader, PE, LEED AP File Date: _____________ _ Independent Contractor: Clark Nexen shall perform duties hereunder as an independent contractor and not as an employee. Neither Clark Nexen nor any agent or employee of Clark Nexen shall be or shall be deemed to be an agent or employee ofthe County of Harnett. Conformance with Law: Clark Nexen shall at all times during the term of this contract strictly adhere to all applicable local, federal and state laws and implementing regulations as they currently exist and may hereafter be amended. Clark Nexen shall also require compliance with these statutes and regulations in subcontract agreements, if any, permitted under this contract. Clark Nexen also shaH 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, Clark Nexen makes the following assurances and certification, upon which the County relies. a. Clark Nexen 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 Clark Nexen, or be subjected to any discrimination by Clark Nexen. c. Clark Nexen certifies that, at the time ofthis certification, it does not knowingly employ or contract with an illegal alien. Harnett County is an equal employment opportunity employer. The County is a federal contractor, and therefore the provisions and affim1ative 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. Assignment/Delegations/Subcontracting: Except as herein specifically provided othenvise, the duties and obligations of Clark Nexen arising herew1der cannot be assigned, delegated, nor subcontracted except with the express prior written consent of the County ofHarnett. Integration of Understandings: This contract is intended as the complete integration of all understandings between the parties. No prior or contemporaneous additions, deletions, subsequent renewal, deletion, or other amendment hereto shall have any force or affect unless embodied herein in writing signed by both parties. Controlling Law: This contract shall be governed by and construed in accordance Vv'ith the laws of the State ofNorth Carolina. Indemnification/limit of liability paragraph: To the extent permitted by law, Clark Nexen will indemnify and hold harmless the County of Harnett, its officers, agents and employees from and against all loss, cost, damage, expense and liability caused by accident or other occurrence resulting in bodily injury, including death and disease to any person or damage or destruction to property, real or personal arising directly or indirectly from operations, products, or services rendered or purchased under this Contract. Mediation: Any claim, dispute or other matter in question arising out of or related to this Contract sha11 be subject to mediation and may be considered prior to the institution of legal or equitable proceedings by either party. The Parties agree that the mediation will be conducted and governed by the North Carolina Rules Implementing Statewide Mediated Settlement Conferences in Superior Court Civil Actions and the North Carolina General Statutes. The parties shall share the mediator's fee and any filing fees equally. The mediation shall be held in Harnett County, unless another location is mutually agreed upon. Agreements reached in mediation shall be enforceable as settlement agreements in any court having jurisdiction thereof. Use of County Name prohibited: Clark Nexen may not use the name or other identifying characteristic of the County or its employees in any advertisements or promotions. Severance Clause: in the event any provision of this Agreement is adjudged to be unenforceable or found invalid, such provision shall be stricken and the remaining provisions shall be valid and enforceable. Force Majeure: Clark Nexen and County 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. Non-appropriation Clause: Clark Nexen acknowledges that County of Harnett 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 County of Harnett's obligations under this contract, then this contract shall automatically expire without penalty to County of Harnett thirty (30) days after written notice to Clark Nexen ofthe non-appropriation of public funds. Termination: Failure to satisfactorily perform the services required by this contract will be grounds for County of Harnett to declare Clark Nexen in default. Upon default by Clark Nexen, County of Harnett shall provide thirty (30) days written notice to Clark Nexen of its default, if said default is not corrected by Clark Nexen within this thirty (30) day period, this contract may be canceled or annulled in whole or in part by the County of Harnett for nonperformance or violation o this contract's terms. Upon canceliation ofthe services of Clark Nexen by the County of Harnett an award may be made to another vendor who submitted a proposal to the County of Harnett for this contract for goods or services, or they may be purchased on the open market and Clark and Nexen shall be liable to County of Harnett for costs to the County of Harnett in excess of the defaulted contract prices. This instrument has been preaudited in the manner required by the Local Government Budget and Fiscal Control Act. Agenda Item 4-K RELAY FOR LIFE Relay for Life of Harnett County Relay for Life of Harnett County Tammy Erickson -Planning Committee Chair 749 Circle Drive Angier NC, 27501 To: Harnett County Manager Tommy Bums I 02 E. Front Street Lillington NC, 27546 Mr. Bums, Relay for Life is the American Cancer Society's signature event that celebrates cancer survivorship and raises much needed funds for patient and family services, research and education. The Harnett County Planning Committee has been working on getting meeting dates and locations scheduled. We would like to use the commons room at the Governmental Complex to hold our team captains meetings and our planning committee meetings. Relay meetings have been held in the commons room for many years. The governmental complex is centrally located, easy to find and has adequate space for our meetings. Our team captains meetings are currently scheduled for September 19, October 17, November 21,2013, January 16, February 20, March 20, AprillO, April28, May 15,and June 5, 2014. The planning committee meeting are scheduled for September 12, October 3, November 7, December 5, 2013, January 2, February 6, March 6, April 3, April24, and May 22, 2014. It is with great hope that you will consider donating the facility for us to use. As you know we are trying to raise money for the American Cancer Society and we have a very small budget to work with. If you are so generous as to donate the facility for us to use we will most definitely make you an in-kind sponsor for Harnett County Relay for Life. Sponsors and in-kind sponsors are listed on the Harnett County Relay website, listed in all programs and printed on the back of the Relay t-shirts. Just so you are aware, Donda Blake is my co-chair for Relay and she is a county employee and works at the Department of Social Services. She will be at every meeting with me. Donda and I would both take responsibility for the use of the room. Thank you so much for your time and consideration in this matter. Thanks, Tammy Erickson 919-639-7042 I 919-630-7145 CETE87 @aol.com American Cancer Society South Atlantic Division, Inc. 2202 Wnghts•:1i!e ;',enue, Su1te: 111 Wilm1ngton, NC 28403 p) 910.254.4870 I 866.620.6781 f) 910.254.4820 Cancer Information 1.800.227.2345 Rela;Forlife.org ® Board Meeting Agenda Item Agenda Item_!./-.J_ MEETING DATE: September 3, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Landfill Fee Wavier for County Fair Board ,/~ REQUESTED BY: Tyrone Fisher, Cooperative Extensi-M REQUEST: The County Fair Board is requesting a fee wavier for the County Landfill for 2 -3 loads of demolition, estimated $100-$150, for the County Livestock Show. We will be having the County Livestock Show at Chandler's Way Ranch, 305 Creekside Drive, Angier, NC 27501. Mr. Dave Chandler, owner, has waved his rental fee for our show. The covered arena needs some cleaning up to host our Livestock Show. Volunteers and fair board members have set- up workdays at the arena to prepare the site for the show. First workday was Friday, August 16t11 , one load was taken the Erwin Landfill, Mr. Chandler paid $43.20 (receipt attached). Estimated at least one more load, but no more than three loads total. Requesting to reimburse Mr. Chandler $43.20 and waive the landfill fee for the next two loads. COUNTY MANAGER'S RECOMMENDATION: \\hcfile2\Coopusers\tfisher\M y Documents\Administration\AgendaF orm20 13F airBoardLandfiiiWavi er.doc Page I of I HARNED COUNTY LANDFILL P 0 BOX 760 -1 02 EAST FRONT LILLINGTON, NC 27546 000000 CASH CUSTOMER 1.08 Scale 1 Gross Wt. Scale 1 Tare Wt. Net Weight 19880 17720 2160 any Harnett County Landfill, Transfer Station, or Convience Center must be secure. Failure to do so will result in citation under G.S. 20-116G enforced by HC Sheriff's Office WW6Tl LB LB LB Inbound -Cash ticket Carolyn Brown 1.80 August 12, 2013 To: Harnett County Commissioners Re: Fee Waiver The Harnett County Fair Board requests a fee waiver at the county landfill for the County Fair Livestock Show. Sincerely, Orwra R{fb',1 Donna Rigby Fair Board Chair Board Meeting Agenda Item Agenda Item LJ.-/VJ MEETING DATE: September 3, 2013 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Fees for Emergency Management REQUESTED BY: Kimberly Honeycutt, Interim Finance Officer REQUEST: Request that the following fees for the 2013 -2014 budget year be approved. The department had requested these fees but they were omitted from the budget package. ABC Form Inspection-new fee $35 Foster Home Inspection -new fee $20 COUNTY MANAGER'S RECOMMENDATION: Harnett Agenda Item 1../.-h/ COUNTY RESOLUTION SUPPORTING NCDOT'S US 401 IMPROVEMENT PROJECT WHEREAS, the North Carolina Department of Transportation (NCDOT) has a plan to enhance US 401 from Cumberland County, thru Harnett County, to Wake County; and WHEREAS, US 401 is identified by the NCDOT as a Strategic Highway Corridor; and WHEREAS, the 39 mile US 401 project is included in the NCDOT 2012-2018 State Transportation Improvement Program as Project# R-2609; and WHEREAS, Harnett County, as well as the Research Triangle Region and Fort Bragg, continue to experience an enormous amount of growth; and WHEREAS, a transportation system drives economic growth and competitiveness, supports rural and urban connectivity, and sustains jobs and the quality of life for our citizens; and WHEREAS, Harnett County and its municipalities have an established Comprehensive Transportation Plan in which this project has be identified as a need for Harnett County; and WHEREAS, Harnett County has participated in several regional initiatives to plan for long term growth; and NOW, THEREFORE BE IT RESOLVED that the Harnett County Board of Commissioners do hereby support the research and construction of the US 401 improvement project as proposed by the North Carolina Department of Transportation. Furthermore, Harnett County advocates for the State to fund right of way acquisition and construction following the completion of the Environmental and Planning Phase which will be complete within the next two years. Adopted this the __ day of ____ , 2013. Jim Burgin, Chairman ATTEST: Margaret Regina Wheeler, Clerk to the Board strong roots • new growth www.harnett.org Harnett COUNTY Proclamation Celebrating the Centennial Anniversary of Extension and Community Association WHEREAS, Two-thousand thirteen is a historic year, the centennial of the North Carolina Extension and Community Association; and WHEREAS, the organization was formally organized in 1913 as Home Demonstration Clubs, and in the 1960's became known as Extension Homemakers Clubs, and then in 1995 became the Extension and Community Association and is referred to as ECA; and www.harnett.org WHEREAS, the Extension throughout history has helped rural and urban families through the dark depression era; turbulent years of war; to learn about food preservation, clothing construction, home beautification; health issues of the day, nutritional needs of children; social issues; economic well-being of the family; energy conservation; environment issues; recycling; making and selling of crafts; family resource management; eldercare; just to name a few; and WHEREAS, Extension has reached out our military and their families; supported and promoted education and continuing education; promoted the welfare and good nutrition of our children; addressed the needs of poor families; and worked with the county 4-H clubs; and WHEREAS, through the leadership skills they gained in ECA, many ladies have become community advocates and leaders; and WHEREAS, ECA is the volunteer arm of Family and Consumer Sciences ofthe North Carolina Cooperative Extension Service; and WHEREAS, through the educational guidance and researched-based information provided by Cooperative Extension Family and Consumer Sciences Agents from North Carolina State University and North Carolina A&T University, ECA is a grass root institution that still actively addresses the needs of families. THEREFORE, BE IT RESOLVED, THAT 2013 be designated as the Centennial Anniversary ofECA. NOW, THEREFORE, we, the Harnett County Board of Commissioners, do hereby proclaim 2013 the Centennial of ECA, and recognize the work of the Harnett County ECA Clubs, and urge the people of this county to become more aware of the programs, projects, and goals of this county's ECA Clubs. HARNETT COUNTY BOARD OF COMMISSIONERS Jim Burgin, Chairman Gary House, Vice Chairman Beatrice B. Hill Joe Miller C. Gordon Springle strong roots • new growth Agenda Item 6 SEPTEMBER 3, 2013 APPOINTMENTS NEEDED ADULT CARE HOME COMMUNITY ADVISORY COMMITTEE We need members on this committee. Members receive mileage reimbursement as claimed. BOARD OF ADJUSTMENT Mr. Robert Doberstein is interested in being reappointed to serve as an alternate on this board. We have two vacancies for alternate members on this board for District 1 and District 4 DANGEROUS DOG COMMITTEE We have a vacancy on this committee that needs to be filled by an attorney in the County. 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. HISTORIC PROPERTIES COMMISSION We currently have a vacancy for a regular member in District 3. Bryan Avery recently resigned recently. We currently have a vacancy for a regular member in District 5. JURY COMMISSION Edith Cox is interested in being reappointed to serve on this Commission. MID-CAROLINA AGING ADVISORY COMMITTEE We need members on this committee. Members receive mileage reimbursement as claimed. Page 1 -Appointments Board Meeting Agenda Item MEETING DATE: TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Approval of Lease Purchase Agreement with US Bank REQUESTED BY: Kimberly Honeycutt, Interim Finance Officer REQUEST: That the Harnett County Board of Commissioners approve a lease purchase agreement with US Bank in the amount of $739,763 for the purchase of a wheel loader and compactor for the Landfill. The interest rate for the transaction is 1.60%. The Board previously approved this agreement on June 28, 2013 but due time constraints, the interest rate expired. FINANCE OFFICER'S RECOMMENDATION: Yes COUNTY MANAGER'S RECOMMENDATION: DOCUMENT CHECKLIST PLEASE EXECUTE TWO (2) ORIGINALS OF ALL DOCUMENTS RETURN ALL ORIGINALS TO: U.S. BANCORP GOVERNMENT LEASING AND FINANCE, INC. MYRA AKSAMIT 950 17TH STREET, 7TH FLOOR DENVER, CO 80202 303-585-4054 ).-Master Tax-Exempt Lease Purchase Agreement -This document must be executed in the presence of a witness/attestor. The attesting witness does not have to be a notary, just present at the time of execution. ).-Addendum/Amendment to Master Tax-Exempt Lease Purchase Agreement -This document must be executed in the presence of a witness/attestor. The attesting witness does not have to be a notary, just present at the time of execution. ).-Property Schedule No. 1 -This document must be executed in the presence of a witness/attestor. The attesting witness does not have to be a notary, just present at the time of execution. ::.> Property Description and Payment Schedule -Exhibit 1 ).-Lessee's Counsel's Opinion -Exhibit 2. This exhibit will need to be executed by your attorney, dated and placed on their letterhead. Your attorney will likely want to review the agreement prior to executing this opinion. ).-Lessee's Certificate -Exhibit 3. 1) Please fill in the person's title who will be executing the certificate in the first paragraph (note: the person who signs this exhibit cannot be the same person as the executing official(s) for all other documents); 2) Please fill in the date that the governing body met in Line 1; 3) In the middle set of boxes, please print the name of the executing official(s) in the far left box, print their title(s) in the middle box and have the executing official(s) sign the line in the far right hand box; 4) Include in your return package a copy of the board minutes or resolution for our files; and 5) The exhibit should be executed by someone other than the executing official(s) named in the center box. ).-Payment of Proceeds Instructions -Exhibit 4. This is for the vendor payment information. If more than one vendor is being paid please make copies of this exhibit and fill out as many as are needed. ).-Acceptance Certificate -Exhibit 5. The date that all equipment is delivered, installed and accepted is the date that should be placed on the "DATE" line. If moneys are being deposited into escrow this exhibit should be held and returned with the final disbursement from the escrow account. ).-Bank Qualification and Arbitrage Rebate-Exhibit 6. ).-Insurance Authorization and Verification-To be filled out by the Lessee and sent to your insurance carrier. A valid insurance certificate, or self-insurance letter if the Lessee self-insures, is required prior to funding. ::.> Notification of Tax Treatment-Please provide your State of Sales/Use tax Exemption Certificate, if applicable. ).-Form 8038-G-Blank form provided to Lessee. Please consult your local legal/bond counsel to fill out. ,. Escrow Agreement -This document needs to be executed by the Executing Official defined in the Lessee's Certificate-Exhibit 3. o Investment Direction Letter-Exhibit 1. This document needs to be executed by the Executing Official. o Schedule of Fees -Exhibit 2. o Requisition Request -Exhibit 3. This document should be retained by Lessee and utilized to request disbursements from the escrow account. Please make copies and fill out as many as are needed. o Acceptance Certificate -Exhibit 4. This document should be retained by Lessee and provided to Lessor once all the proceeds have been disbursed from the escrow account. o Class Action Negative Consent Letter-Exhibit 6. o IRS Form W-9. This document should be retained by Lessee and submitted with the Requisition Request(s) for each vendor being paid. Please make copies and fill out as many as are needed. ,. First Payment Invoice -Invoice included for your convenience. Master Tax-Exempt Lease/Purchase Agreement Between: U.S. Bancorp Government Leasing and Finance, Inc. (the "Lessor") 13010 SW 68th Parkway, Suite 100 And: Dated: Portland, OR 97223 County of Harnett (the "Lessee") P.O. Box 760 Lillington, NC 27546 Attention: Kimberly A. Honeycutt Telephone: 910-814-6093 September 3, 2013 ARTICLE I DEFINITIONS The following terms will have the meanings indicated below unless the context clearly requires otherwise: "Agreement" means this Master Tax-Exempt Lease/Purchase Agreement, including all exhibits and schedules attached hereto. "Code" is defined in Section 3.01 (f). "Commencement Date" is the date when the tenn of a Property Schedule and Lessee's obligation to pay rent thereunder commences, which date shall be set forth in such Property Schedule. "Event of Default" is defined in Section 13.01. "Lease Payments" means the Lease Payments payable by Lessee under Article VI of this Agreement and each Property Schedule, as set forth in each Property Schedule. "Lease Payment Dates" means the Lease Payment dates for the Lease Payments as set forth in each Property Schedule. "Lease Term" means, with respect to a Property Schedule, the Original Term and all Renewal Terms. The Lease Term for each Property Schedule executed hereunder shall be set forth in such Property Schedule, as provided in Section 4.02. "Lessee" means the entity identified as such in the first paragraph hereof, and its pennitted successors and assigns. "Lessor" means the entity identified as such in the first paragraph hereof, and its successors and assigns. "Nonappropriation Event" is defined in Section 6.06. "Original Term" means, with respect to a Property Schedule, the period from the Commencement Date until the end of the budget year of Lessee in effect at the Commencement Date. "Property" means, collectively, the property lease/purchased pursuant to this Agreement, and with respect to each Property Schedule, the property described in such Property Schedule, and all replacements, repairs, restorations, modifications and improvements thereof or thereto made pursuant to Section 8.01 or Article IX. "Property Schedule" means a Property Schedule in the form attached hereto for Property Schedule 1. Subsequent Property Schedules pursuant to this Agreement shall be numbered consecutively, beginning with Property Schedule 2. "Purchase Price" means the amount that Lessee may, in its discretion, pay to Lessor to purchase the Property under a Property Schedule, as provided in Section 11.01 and as set forth in the Property Schedule. "Renewal Terms" means the renewal terms of a Property Schedule, each having a duration of one year and a term coextensive with Lessee's budget year. "State" means the state where Lessee is located. "Vendor" means the manufacturer or contractor of the Property as well as the agents or dealers of the manufacturer or contractor from whom Lessor or Lessee purchased or is purchasing all or any portion of the Property. ARTICLE II 2.01 Property Schedules Separate Financings. Each Property Schedule executed and delivered under this Agreement shall be a separate financing, distinct from other Property Schedules. Without limiting the foregoing, upon the occurrence of an Event of Default or a Nonappropriation Event with respect to a Property Schedule, Lessor shall have the rights and remedies specified herein with respect to the Property financed and the Lease Payments payable under such Property Schedule, and except as expressly provided in Section 12.02 below, Lessor shall have no rights or remedies with respect to Property financed or Lease Payments payable under any other Property Schedules unless an Event of Default or Nonappropriation Event has also occurred under such other Property Schedules. ARTICLE Ill 3.01 Covenants of Lessee. As of the Commencement Date for each Property Schedule executed and delivered hereunder, Lessee shall be deemed to represent, covenant and warrant for the benefit of Lessor as follows: (a) Lessee is a public body corporate and politic duly organized and existing under the constitution and laws of the State with full power and authority to enter into this Agreement and the Property Schedule and the transactions contemplated thereby and to perfonn all of its obligations thereunder. (b) Lessee will do or cause to be done all things necessary to preserve and keep in full force and effect its existence as a body corporate and politic. To the extent Lessee should merge with another entity under the laws of the Stale, Lessee agrees that as a condition to such merger it will require that the remaining or resulting entity shall be assigned Lessee's rights and shall assume Lessee's obligations hereunder. (c) Lessee has been duly authorized to execute and deliver this Agreement and the Property Schedule by proper action by its governing body, or by other appropriate official approval, and all requirements have been met and procedures have occurred in order to ensure the validity and enforceability of this Agreement and the Property Schedule, and Lessee has complied with such public bidding requirements as may be applicable to this Agreement and the Properly Schedule and the acquisition by Lessee of the Property thereunder. On or before the Commencement Date for the Property Schedule, Lessee shall cause to be delivered an opinion of counsel in substantially the form atlached to the form of the Property Schedule as Exhibit 2. (d) During the Lease Term for the Properly Schedule, the Properly thereunder will perform and will be used by Lessee only for the purpose of performing essential governmental uses and public functions within the permissible scope of Lessee's authority. (e) Lessee will provide Lessor with current financial statements, budgets and proof of appropriation for the ensuing budget year and other financial information relating to the ability of Lessee to continue this Agreement and the Property Schedule in such form and containing such information as may be requested by Lessor. (f) Lessee will comply with all applicable provisions of the Internal Revenue Code of 1986, as amended (the "Code"), including Sections 103 and 148 thereof, and the regulations of the Treasury Department thereunder, from time to time proposed or in effect, in order to maintain the excludability from gross income for federal income tax purposes of the interest component of Lease Payments under the Property Schedule and will not use or permit the use of the Property in such a manner as to cause a Property Schedule to be a "private activity bond" under Section 141 (a) of the Code. Lessee covenants and agrees that it will use the proceeds of the Property Schedule as soon as practicable and with all reasonable dispatch for the purpose for which the Property Schedule has been entered into, and that no part of the proceeds of the Property Schedule shall be invested in any securities, obligations or other investments except for the temporary period pending such use nor used, at any lime, directly or indirectly, in a manner which, if such use had been reasonably anticipated on the date of issuance of the Agreement, would have caused any portion of the Property Schedule to be or become "arbitrage bonds" within the meaning of Section 103(b)(2) or Section 148 of the Code and the regulations of the Treasury Department thereunder proposed or in effect at the time of such use and applicable to obligations issued on the dale of issuance of the Property Schedule. (g) The execution, delivery and performance of this Agreement and the Property Schedule and compliance with the provisions hereof and thereof by Lessee does not conflict with or result in a violation or breach or constitute a default under, any resolution, bond, agreement, indenture, mortgage, note, lease or other instrument to which Lessee is a party or by which it is bound by any law or any rule, regulation, order or decree of any court, governmental agency or body having jurisdiction over Lessee or any of its activities or properties resulting in the creation or imposition of any lien, charge or other security interest or encumbrance of any nature whatsoever upon any property or assets of Lessee or to which it is subject. (h) Lessee's exact legal name is as set forth on the first page of this Agreement. Lessee will not change its legal name in any respect without giving thirty (30) days prior notice to Lessor. ARTICLE IV 4.01 Lease of Propertv. On the Commencement Date of each Property Schedule executed hereunder, Lessor will be deemed to demise, lease and let to Lessee, and Lessee will be deemed to rent, lease and hire from Lessor, the Property described in such Property Schedule, in accordance with this Agreement and such Property Schedule, for the Lease Term set forth in such Property Schedule. 4.02 Lease Term. The term of each Property Schedule shall commence on the Commencement Date set forth therein and shall term ina le upon payment of the final Lease Payment set forth in such Property Schedule and the exercise of the Purchase Option described in Section 11.01, unless terminated sooner pursuant to this Agreement or the Property Schedule. 4.03 Oeliverv. Installation and Acceptance of Property. Lessee shall order the Property, shall cause the Property to be delivered and installed at the locations spec~ied in the applicable Property Schedule and shall pay all taxes, delivery costs and installation costs, if any, in connection therewith. To the extent funds are deposited under an escrow agreement or trust agreement for the acquisilion of the Property, such funds shall be disbursed as provided therein. When the Property described in such Property Schedule is delivered, installed and accepted as to Lessee's specifications, Lessee shall immediately accept the Property and evidence said acceptance by executing and delivering to Lessor the Acceptance Certificate substantially in the form attached to the Property Schedule. ARTICLE V 5.01 Enjoyment of Propertv. Lessee shall during the Lease Term peaceably and quietly have, hold and enjoy the Property, without suit, trouble or hindrance from Lessor, except as expressly set forth in this Agreement. Lessor shall not interfere with such quiet use and enjoyment during the Lease Term so long as Lessee is not in default under the subject Property Schedule. 5.02 Location: Inspection. The Property will be initially located or based at the location specified in the applicable Property Schedule. Lessor shall have the right at all reasonable limes during business hours to enter into and upon the property of Lessee for the purpose of inspecting the Property. ARTICLE VI 6.01 Lease Payments to Constitute a Current Expense of Lessee. Lessor and Lessee understand and intend that the obligation of Lessee to pay Lease Payments hereunder shall constitute a current expense of Lessee and shall not in any way be construed to be a debt of Lessee in contravention of any applicable constitutional, statutory or charter limitation or requirement concerning the creation of indebtedness by Lessee, nor shall anything contained herein constitute a pledge of the faith and credit or taxing power of Lessee. Upon the appropriation of Lease Payments for a fiscal year, the Lease Payments for said fiscal year, and only the Lease Payments for said current fiscal year, shall be a binding obligation of Lessee; provided that such obligation shall not include a pledge of the taxing power of Lessee. 6.02 Payment of Lease Payments. Lessee shall promptly pay Lease Payments under each Property Schedule, exclusively from legally available funds, in lawful money of the United States of America, to Lessor in such amounts and on such dates as described in the applicable Property Schedule, at Lessor's address set forth on the first page of this Agreement, unless Lessor instructs Lessee otherwise. Lessee shall pay Lessor a charge on any delinquent Lease Payments under a Property Schedule in an amount sufficient to cover all additional costs and expenses incurred by Lessor from such delinquent Lease Payment. In addition, Lessee shall pay a late charge of five cents per dollar or the highest amount permitted by applicable law, whichever is lower, on all delinquent Lease Payments and interest on said delinquent amounts from the date such amounts were due until paid at the rate of 12% per annum or the maximum amount permitted by law, whichever is less .. 6.03 Interest Component. A portion of each Lease Payment due under each Property Schedule is paid as, and represents payment of, interest, and each Property Schedule hereunder shall set forth the interest component (or method of computation thereof) of each Lease Payment thereunder during the Lease Term. 6.04 Lease Payments to be Unconditional. SUBJECT TO SECTION 6.06, THE OBLIGATIONS OF LESSEE TO PAY THE LEASE PAYMENTS DUE UNDER THE PROPERTY SCHEDULES AND TO PERFORM AND OBSERVE THE OTHER COVENANTS AND AGREEMENTS CONTAINED HEREIN SHALL BE ABSOLUTE AND UNCONDITIONAL IN ALL EVENTS WITHOUT ABATEMENT, DIMINUTION, DEDUCTION, SET-OFF OR DEFENSE, FOR ANY REASON, INCLUDING WITHOUT LIMITATION, ANY DEFECTS, MALFUNCTIONS, BREAKDOWNS OR INFIRMITIES IN THE PROPERTY OR ANY ACCIDENT, CONDEMNATION OR UNFORESEEN CIRCUMSTANCES. THIS PROVISION SHALL NOT LIMIT LESSEE'S RIGHTS OR ACTIONS AGAINST ANY VENDOR AS PROVIDED IN SECTION 10.02. 6.05 Continuation of Lease by Lessee. Lessee intends to continue all Properly Schedules entered into pursuant to this Agreement and to pay the Lease Payments thereunder. Lessee reasonably believes that legally available funds in an amount sufficient to make all Lease Payments during the term of all Property Schedules can be obtained. Lessee agrees that its staff will provide during the budgeting process for each budget year to the governing body of Lessee notification of any Lease Payments due under the Property Schedules during the following budget year. Notwithstanding this covenant, if Lessee fails to appropriate the Lease Payments for a Property Schedule pursuant to Section 6.06, such Property Schedule shall terminate at the end of the then current Original Term or Renewal Term. Although Lessee has made this covenant, in the event that it fails to provide such notice, no remedy is provided and Lessee shall not be liable for any damages for its failure to so comply. 6.06 Nonappropriation. If during the then current Original Term or Renewal Term, sufficient funds are not appropriated to make Lease Payments required under a Property Schedule for the following fiscal year, Lessee shall be deemed to not have renewed such Property Schedule for the following fiscal year and the Property Schedule shall terminate at the end of the then current Original Term or Renewal Term and Lessee shall not be obligated to make Lease Payments under said Property Schedule beyond the then current fiscal year for which funds have been appropriated. Upon the occurrence of such nonappropriation (a "Nonapproprialion Event") Lessee shall, no later than the end of the fiscal year for which Lease Payments have been appropriated, deliver possession of the Property under said Property Schedule to Lessor. If Lessee fails to deliver possession of the Property to Lessor upon termination of said Property Schedule by reason of a Nonapproprialion Event, the termination shall nevertheless be effective but Lessee shall be responsible for the payment of damages in an amount equal to the portion of Lease Payments thereafter coming due that is attributable to the number of days after the termination during which the Lessee fails to deliver possession and for any other loss suffered by Lessor as a result of Lessee's failure to deliver possession as required. In addition, Lessor may, by wrillen instructions to any escrow agent who is holding proceeds of the Property Schedule, instruct such escrow agent to release all such proceeds and any earnings thereon lo Lessor, such sums to be credited lo Lessee's obligations under the Property Schedule and this Agreement. Lessee shall notify Lessor in writing within seven (7) days after the failure of the Lessee to appropriate funds sufficient for the payment of the Lease Payments, but failure to provide such notice shall not operate to extend the Lease Term or result in any liability to Lessee. 6.07 Defeasance of Lease Payments. Lessee may at any lime irrevocably deposit in escrow with a defeasance escrow agent for the purpose of paying all of the principal component and interest component accruing under a Property Schedule, a sum of cash and non-callable securities consisting of direct obligations of, or obligations the principal of an interest on which are unconditionally guaranteed by, the United Stales of America or any agency or instrumentality thereof, in such aggregate amount, bearing interest al such rates and maturing on such dales as shall be required lo provide funds sufficient for this purpose. Upon such defeasance, all right, lille and interest of Lessor in the Property under said Property Schedule shall terminate. Lessee shall cause such investment to comply with the requirements of federal tax law so that the exclusion from gross income of the interest component of Lease Payments on said Property Schedule is not adversely affected. ARTICLE VII 7.01 Title to the Property. Upon acceptance of the Property by Lessee and unless otherwise required by the laws of the State, title to the Property shall vest in Lessee, subject to Lessor's interests under the applicable Property Schedule and this Agreement. 7.02 Personal Property. The Property is and will remain personal property and will not be deemed to be affixed lo or a part of the real estate on which il may be situated, notwithstanding that the Property or any part thereof may be or hereafter become in any manner physically affixed or attached to real estate or any building thereon. If requested by Lessor, Lessee will, at Lessee's expense, furnish a waiver of any interest in the Property from any party having an interest in any such real estate or building. 7.03 Security Interest. To the extent permitted by law and to secure the performance of all of Lessee's obligations under this Agreement with respect to a Property Schedule, including without limitation all Property Schedules now existing are hereafter executed, Lessee grants lo Lessor, for the benefit of Lessor and its successors and assigns, a security interest constituting a first lien on Lessee's interest in all of the Property under the Property Schedule, whether now owned or hereafter acquired, all additions, attachments, alterations and accessions to the Property, all substitutions and replacements for the Property, and on any proceeds of any of the foregoing, including insurance proceeds. Lessee shall execute any additional documents, including financing statements, affidavits, notices and similar instruments, in form and substance satisfactory to Lessor, which Lessor deems necessary or appropriate to establish, maintain and perfect a security interest in the Property in favor of Lessor and its successors and assigns. Lessee hereby authorizes Lessor to file all financing statements which Lessor deems necessary or appropriate to establish, maintain and perfect such security interest. ARTICLE VIII 8.01 Maintenance of Property by Lessee. Lessee shall keep and maintain Lhe Property in good condition and working order and in compliance with the manufacturer's spec~ications, shall use, operate and maintain the Property in conformity with all laws and regulations concerning the Property's ownership, possession, use and maintenance, and shall keep the Property free and clear of all liens and claims, other than those created by this Agreement. Lessee shall have sole responsibility to maintain and repair the Property. Should Lessee fail to maintain, preserve and keep the Property in good repair and working order and in accordance with manufacturer's specifications, and if requested by Lessor, Lessee will enter into maintenance contracts for the Property in form approved by Lessor and with approved providers. 8.02 Liens, Taxes, Other Governmental Charges and Utility Charges. Lessee shall keep the Property free of all levies, liens and encumbrances, except for the interest of Lessor under this Agreement. The parties to this Agreement contemplate that the Property will be used for a governmental or proprietary purpose of Lessee and, therefore, that the Property will be exempt from all property taxes. The Lease Payments payable by Lessee under this Agreement and the Property Schedules hereunder have been established to reflect the savings resulting from this exemption from Laxation. Lessee will lake such actions necessary under applicable law to obtain said exemption. Nevertheless, if the use, possession or acquisition of Lhe Property is determined to be subject to taxation or later becomes subject to such taxes, Lessee shall pay when due all taxes and governmental charges lawfully assessed or levied against or with respect to the Property. Lessee shall pay all gas, water, steam, electricity, heat, power, telephone, utility and other charges incurred in the operation, maintenance, use, occupancy and upkeep of the Property. Lessee shall pay such taxes or charges as the same may become due; provided that, with respect to any such taxes or charges that may lawfully be paid in installments over a period of years, Lessee shall be obligated to pay only such installments as accrue during the then current fiscal year of Lhe Lease Term for such Property. 8.03 ~-At its own expense, Lessee shall maintain (a) casualty insurance insuring the Properly against loss or damage by fire and all other risks covered by the standard extended coverage endorsement then in use in the State and any other risks reasonably required by Lessor in an amount equal to at least the outstanding principal component of Lease Payments, and (b) liability insurance that protects Lessor from liability in all events in an amount reasonably acceptable to Lessor, and (c) worker's compensation insurance covering all employees working on, in, near or about the Property; provided that Lessee may self-insure against all such risks. All insurance proceeds from casualty losses shall be payable as hereinafter provided in this Agreement. All such insurance shall be with insurers that are authorized to issue such insurance in the State. All such liability insurance shall name Lessor as an additional insured. All such casualty insurance shall contain a provision making any losses payable to Lessor and Lessee as their respective interests may appear. All such insurance shall contain a provision to the effect that such insurance shall not be canceled or modified without first giving written notice thereof to Lessor and Lessee at least thirty (30) days in advance of such cancellation or modfiication. Such changes shall not become effective without Lessor's prior written consent. Lessee shall furnish to Lessor, on or before the Commencement Date for each Property Schedule, and thereafter at Lessor's request, certificates evidencing such coverage, or, if Lessee self-insures, a written description of its self-insurance program together with a certification from Lessee's risk manager or insurance agent or consultant to the effect that Lessee's self-insurance program provides adequate coverage against the risks listed above. 8.04 Advances. In the event Lessee shall fail to either maintain the insurance required by this Agreement or keep the Property in good repair and working order, Lessor may, but shall be under no obligation to, purchase the required insurance and pay the cost of the premiums thereof or maintain and repair the Property and pay the cost thereof. All amounts so advanced by Lessor shall constitute additional rent for the Lease Term for the applicable Property Schedule and shall be due and payable on the next Lease Payment Date and Lessee covenants and agrees to pay such amounts so advanced by Lessor with interest thereon from the date such amounts are advanced until paid at the rate of 12% per annum or the maximum amount permilted by law, whichever is less. ARTICLE IX 9.01 Damage or Destruction. If (a) the Property under a Properly Schedule or any portion thereof is destroyed, in whole or in part, or is damaged by fire or other casually, or (b) title to, or the temporary use of, the Property under a Property Schedule or any part thereof shall be taken under the exercise or threat of the power of eminent domain by any governmental body or by any person, firm or corporation acting pursuant to governmental authority, Lessor and Lessee will cause the Net Proceeds (as hereinafter defined) of any insurance claim, condemnation award or sale under threat of condemnation to be applied to Lhe prompt replacement, repair, restoration, modification or improvement of the Property, unless Lessee shall have exercised its right to defease the Property Schedule as provided herein, or unless Lessee shall have exercised its option to purchase Lessor's interest in the Property if the Property Schedule so provides. Any balance of the Net Proceeds remaining after such work has been completed shall be paid to Lessee. For purposes of Section 8.03 and this Article IX, the term "Net Proceeds" shall mean the amount remaining from the gross proceeds of any insurance claim, condemnation award or sale under threat of condemnation after deducting all expenses, including attorneys' fees, incurred in the collection thereof. 9.02 Insufficiency of Net Proceeds. If the Net Proceeds are insufficient to pay in full the cost of any repair, restoration, modification or improvement referred La in Section 9.01, Lessee shall (a) complete such replacement, repair, restoration, modification or improvement and pay any costs thereof in excess of the amount of the Net Proceeds and, if Lessee shall make any payments pursuant to this Section, Lessee shall not be entitled to any reimbursement therefor from Lessor nor shall Lessee be entitled to any diminution of the amounts payable under Section 6.02, or (b) defease the Property Schedule pursuant to Section 6.07, or (c) exercise its option to purchase Lessor's interest in the Property pursuant to the optional purchase provisions of the Property Schedule, if any. The amount of the Net Proceeds, if any, remaining after completing such repair, restoration, modification or improvement or after such defeasance or purchase may be retained by Lessee. ARTICLE X 10.01 Disclaimer of Warranties. LESSOR MAKES NO (AND SHALL NOT BE DEEMED TO HAVE MADE ANY) WARRANTIES. EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING, WITHOUT LIMITATION, THE DESIGN, OPERATION OR CONDITION OF, OR THE QUALITY OF THE MATERIAL, EQUIPMENT OR WORKMANSHIP IN, THE PROPERTY, ITS MERCHANTABILITY OR ITS FITNESS FOR ANY PARTICULAR PURPOSE, THE STATE OF TITLE THERETO OR ANY COMPONENT THEREOF, THE ABSENCE OF LATENT OR OTHER DEFECTS (WHETHER OR NOT DISCOVERABLE), AND LESSOR HEREBY DISCLAIMS THE SAME; IT BEING UNDERSTOOD THAT THE PROPERTY IS LEASED TO LESSEE "AS IS" ON THE DATE OF THIS AGREEMENT OR THE DATE OF DELIVERY, WHICHEVER IS LATER, AND ALL SUCH RISKS, IF ANY, ARE TO BE BORNE BY LESSEE. Lessee acknowledges that it has made (or will make) the selection of the Property from the Vendor based on its own judgment and expressly disclaims any reliance upon any statements or representations made by Lessor. Lessee understands and agrees that (a) neither the Vendor nor any sales representative or other agent of Vendor, is (i) an agent of Lessor, or (ii) authorized to make or alter any tenn or condition of this Agreement, and (b) no such waiver or alteration shall vary the terms of this Agreement unless expressly set forth herein. In no event shall Lessor be liable for any incidental, indirect, special or consequential damage in connection wilh or arising out of this Agreement, the Property Schedules, or the existence, furnishing, functioning or use of any item, product or service provided for in this Agreement or the Property Schedules. 10.02 Vendor's Warranties. Lessor hereby irrevocably assigns to Lessee all rights \hat Lessor may have to assert from lime lo time whatever claims and rights (including wilhoul limitation warranties) related to the Property against the Vendor. Lessee's sole remedy for the breach of such warranty, indemnification or representation shall be againsl the Vendor of the Property, and not against Lessor, nor shall such matter have any effect whatsoever on \he rights and obligations of Lessor with respect to this Agreement, including \he right to receive full and timely payments hereunder. Lessee expressly acknowledges \hal Lessor makes, and has made, no representations or warranties whatsoever as to the exislence or the availability of such warranties of the Vendor of !he Property. 10.03 Use of the Property. Lessee will not install, use, operate or maintain the Property improperly, carelessly, in violation of any applicable law or in a manner contrary to !hal contemplaled by this Agreement and the applicable Property Schedule. Lessee shall provide all permits and licenses, if any, necessary for the installation and operation of lhe Property. In addition, Lessee agrees to comply in all respects wilh all laws of the jurisdiction in which its operations involving any item of Property may exlend and any legislative, executive, administrative or judicial body exercising any power or jurisdiction over the ilems of !he Property; provided that Lessee may contest in good faith the validity or application of any such law or rule in any reasonable manner !hal does not, in the opinion of Lessor, adversely affect the interest of Lessor in and to the Property or its interest or rights under this Agreement. Lessee shall promplly notify Lessor in writing of any pending or threatened investigation, inquiry, claim or action by any governmental authority which could adversely affect this Agreement, any Property Schedule or the Property thereunder. 10.04 Modifications. Subject to the provisions of this Section, Lessee shall have the right, at ils own expense, to make alterations, additions, modifications or improvements to the Property. All such alterations, additions, modifications and improvements shall thereafter comprise part of \he Property and shall be subject to the provisions of this Agreement. Such alterations, additions, modifications and improvements shall not in any way damage the Property, substantially alter its nature or cause it to be used for purposes other than those authorized under the provisions of stale and federal law; and the Property, on completion of any alterations, addilions, modifications or improvements made pursuant to this Section, shall be of a value which is equal to or greater than the value of \he Property immediately prior to the making of such alterations, additions, modifications and improvements. Lessee shall, at its own expense, make such alterations, additions, modifications and improvements to the Property as may be required from time to time by applicable law or by any governmental authority. ARTtCLEXI 11.01 Option to Purchase. Lessee shall have the option to purchase Lesso~s entire interest in all of the Property subject to a Property Schedule and to terminate any restrictions herein on the Property under such Property Schedule on the last day of the Lease Term for a Property Schedule, if the Property Schedule is still in effect on such day, upon payment in full of the Lease Payments due thereunder plus payment of One (1) Dollar to Lessor. Lessee shall give written notice to Lessor of its intent to purchase Lesso~s interest in the Property at least sixty (60) days prior to the last day of the Lease Term for applicable Property Schedule. Upon exercise of the purchase option as set forth in this Section 11.01 and payment of the purchase price under the applicable Property Schedule, and performance by Lessee of all other terms, conditions and provisions hereof, Lessor shall deliver to Lessee all such documents and instruments as Lessee may reasonably require to evidence the transfer, without warranty by or recourse to Lessor, of all of Lessor's right, title and interest in and to the Property subject to such Property Schedule to Lessee. 11.02 Option to Prepay. Lessee shall have the option to prepay in whole the Lease Payments due under a Property Schedule, but only if the Property Schedule so provides, and on the terms set forth in the Property Schedule. ARTICLE XII 12.01 Assignment by Lessor. Lessor's right, title and interest in, to and under each Property Schedule and the Property under such Property Schedule may be assigned and reassigned in whole or in part to one or more assignees or subassignees by Lessor without the necessity of obtaining the consent of Lessee; provided that any assignment shall not be effective unfil Lessee has received written notice, signed by the assignor, of the name, address and tax identification number of the assignee. Lessee shall retain all such notices as a register of all assignees and shall make all payments to the assignee or assignees designated in such register. Lessee agrees to execute all documents, including notices of assignment and chattel mortgages or financing statements that may be reasonably requested by Lessor or any assignee to protect its interests in this Agreement and the Property Schedules. 12.02 Property Schedules Separate Financings. Assignees of lhe Lessor's rights in one Property Schedule shall have no rights in any other Property Schedule unless such rights have been separately assigned .. 12.03 Assignment and Subleasing by Lessee. NONE OF LESSEE'S RIGHT, TITLE AND INTEREST IN, TO AND UNDER THIS AGREEMENT AND IN THE PROPERTY MAY BE ASSIGNED, SUBLEASED OR ENCUMBERED BY LESSEE FOR ANY REASON, WITHOUT THE PRIOR WRITTEN CONSENT OF LESSOR. 12.04 Release and Indemnification Covenants. To the extent permitted by applicable law, Lessee shall indemnify, protect, hold harmless, save and keep harmless Lessor from and against any and all liability, obligation, loss, claim and damage whatsoever, regardless of cause thereof, and all expenses in connection therewilh, including, without limilation, counsel fees and expenses, penalties and interest (collectively, "Losses") arising out of or resulting from the entering inlo this Agreement, any Property Schedules hereunder, the ownership of any ilem of the Property, the loss of federal lax exemption of lhe interest on any of the Property Schedules, the ordering, acquisilion, use, operation, condition, purchase, delivery, rejection, storage or relurn of any ilem of !he Property or any accident in connection wilh the operation, use, condilion, possession, storage or relum of any item of the Property resulting in damage to property or injury to or death to any person; provided, however, that Lessee shall no\ be required to indemnify Lessor for Losses arising out of or resulting from Lessor's own willful or negligent conduct, or for Losses arising oul of or resulting from Lesso~ preparation of disclosure material relating to certificates of participation in !his Agreement and any Property Schedule (other than disclosure material provided to Lessor by Lessee). The indemnification arising under this Section shall continue in full force and effect notwithstanding the full payment of all obligations under this Agreement, or the applicable Property Schedule, or the termination of the Lease Term for such Property Schedule for any reason. ARTICLE XIII 13.01 Events of Default Defined. Any of the following shall constitute an "Event of Default" under a Property Schedule: (a) Failure by Lessee to pay any Lease Payment under the Property Schedule or other payment required to be paid with respect thereto at \he lime specified therein; (b) Failure by Lessee to observe and perform any covenant, condition or agreement on its partie be observed or performed with respect to the Property Schedule, other than as referred to in subparagraph (a) above, for a period of thirty (30) days after written notice specifying such failure and requesting that it be remedied is given to Lessee by Lessor, unless Lessor shall agree in writing to an extension of such time prior to its expiration; provided that, if the failure stated in the notice cannot be corrected within the applicable period, Lessor will not unreasonably withhold its consent to an extension of such time if corrective action is instituted by Lessee within the applicable period and diligently pursued until the default is corrected; (c) Any statement, representation or warranty made by Lessee in or pursuant to the Property Schedule or its execution, delivery or performance shall prove to have been false, incorrect, misleading or breached in any material respect on the date when made; (d) Lessee shall (i) apply for or consent to lhe appointmenl of a receiver, truslee, custodian or liquidator of Lessee, or of all or a substantial part of the assets of Lessee, (ii) be unable, fail or admit in writing ils inability generally to pay its debts as they become due, (iii) make a general assignment for the benefit of creditors, (iv) have an order for relief entered against it under applicable federal bankruptcy law, or (v) file a voluntary petition in bankruptcy or a petition or an answer seeking reorganization or an arrangement with creditors or taking advantage of any insolvency law or any answer admitting the material allegations of a petition filed against Lessee in any bankruptcy, reorganization or insolvency proceeding; or (e) An order, judgment or decree shall be enlered by any court of competent jurisdiction, approving a petition or appointing a receiver, truslee, custodian or liquidator of Lessee or of all or a substantial part of the assets of Lessee, in each case without its application, approval or consent, and such order, judgment or decree shall continue unstayed and in effect for any period of 60 consecutive days. The foregoing provisions of Section 13.01 are subject to the following limitation: if by reason of force majeure Lessee is unable in whole or in part to perform its agreements under this Agreement and the Property Schedule (other than the obligations on the part of Lessee contained in Article VI hereof) Lessee shall not be in default during the continuance of such inability. The term "force majeure" as used herein shall mean the following: acts of God; strikes, lockouts or other industrial disturbances; acts of public enemies; orders or restraints of any kind of the government of the United States or of the State or any of their departments, agencies or officials, or any civil or military aulhority; insurrections, riots, landslides, earthquakes, fires, storms, droughts, fioods, explosions, breakage or accident to machinery, transmission pipes or canals; or any other cause or event not reasonably wilhin the control of Lessee. A Nonappropriation Event is not an Event of Defaull. 13.02 Remedies on Default Whenever any Event of Defaull exists wilh respect to a Property Schedule, Lessor shall have the right, at its sole option without any further demand or notice, Jo take one or any combination of the following remedial steps: (a) Without terminating the Property Schedule, and by written notice to Lessee, Lessor may declare all Lease Payments and other amounts payable by Lessee thereunder to the end of the then-current budget year of Lessee to be due, including without limitation delinquent Lease Paymenls under the Property Schedule from prior budge! years, and such amounts shalllhereafter bear interest at the rate of 12% per annum or the maximum rate permitted by applicable law, whichever is less; (b) Lessor may terminate the Property Schedule, may enler the premises where the Property subject to the Property Schedule is located and retake possession of the Property, or require Lessee, at Lessee's expense, to promptly return any or all of the Property to the possession of Lessor at such place within the United States as Lessor shall specify, and Lessor may thereafter dispose of the Property in accordance with Article 9 of the Uniform Commercial Code in effect in the State; provided, however, that any proceeds from the disposition of the property in excess of the sum required to (i) pay off any outstanding principal component of Lease Payments, (ii) pay any other amounts !hen due under the Property Schedule, and (iii) pay Lesso~s costs and expenses associated with the disposition of the Property (including attorneys fees), shall be paid to Lessee or such other creditor of Lessee as may be enlitled therelo, and further provided that no deficiency shall be allowed against Lessee except with respect to unpaid costs and expenses incurred by Lessor in connection wilh the disposition of the Property; (c) By written notice to any escrow agent who is holding proceeds of the Property Schedule, Lessor may instruct such escrow agent to release all such proceeds and any earnings thereon to Lessor, such sums Jo be credited to payment of Lessee's obligations under the Property Schedule; (d) Lessor may take any action, at law or in equity, that is permitted by applicable law and that may appear necessary or desirable to enforce or to proJect any of its rights under the Property Schedule and this Agreemenl. Notwithstanding the foregoing, if the proceeds are insufficient to pay items (i) to (iii) in Section 13.02(b) in whole, Lessee shall remain obligated after application of proceeds to items (i) and (ii), to pay in whole the amounts for item (iii). 13.03 No Remedy Exclusive. No remedy herein conferred upon or reserved to Lessor is intended to be exclusive and every such remedy shall be cumulative and shall be in add ilion to every other remedy given under this Agreement now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any defaull shall impair any such right or power or shall be construed to be a waiver thereof, but any such right or power may be exercised from time to lime and as often as may be deemed expedient. In order to entitle Lessor to exercise any remedy reserved to it in this Article it shall not be necessary to give any notice, other than such notice as may be required in this Article. 13.04 Costs and Attorney Fees. Upon the occurrence of an Event of Default by Lessee in the performance of any term of this Agreement, Lessee agrees to pay to Lessor or reimburse Lessor for, in addition to all other amounts due hereunder, all of Lessor's costs of collection, including reasonable attorney fees, whether or not suit or action is filed thereon. Any such costs shall be immediately due and payable upon written notice and demand given to Lessee, shall be secured by this Agreement until paid and shall bear interesl at the rate of 12% per annum or the maximum amount permitted by law, whichever is less. In the event suit or action is instituted to enforce any of the terms of this Agreement, the prevailing party shall be entitled to recover from the other party such sum as the court may adjudge reasonable as attorneys' fees at trial or on appeal of such suit or action or in any bankruptcy proceeding, in addition to all other sums provided by law. ARTtCLEXIV 14.01 Notices. All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when delivered or mailed by certified mail, postage prepaid, to the parties hereto at the addresses as specified on the first page of this Agreement (or at such other address as either party hereto shall designate in writing to the olher for notices to such party), to any assignee at its address as it appears on the registration books maintained by Lessee. 14.02 Arbitrage Certificates. Unless a separate Arbitrage Certificate is delivered on the Commencement Date, Lessee shall be deemed to make the following representations and covenants as of the Commencement Date for each Property Schedule: (a) The estimaled total costs, including taxes, freight, installation, cost of issuance, of the Property under the Property Schedule will no! be Jess than the total principal amount of the Lease Payments. (b) The Property under the Property Schedule has been ordered or is expected to be ordered within six months after the Commencement Date and the Property is expected to be delivered and installed, and the Vendor fully paid, within eighteen months from the Commencement Date. Lessee will pursue the completion of the Property and the expenditure of the net proceeds of the Property Schedule with due diligence. (c) Lessee has not created or established, and does not expect to create or establish, any sinking fund or other similar fund (i) that is reasonably expected to be used to pay the Lease Payments under the Property Schedule, or (ii) that may be used solely to prevent a default in the payment of the Lease Payments under the Property Schedule. (d) The Property under the Property Schedule has not been and is not expected to be sold or otherwise disposed of by Lessee, either in whole or in major part, prior to the last maturity of the Lease Payments under the Property Schedule. (e) There are no other obligations of Lessee which (i) are being sold within 15 days of !he Commencement Dale of the Property Schedule; (ii) are being sold pursuant to the same plan of financing as the Property Schedule; and (iii) are expected to be paid from substantially the same source of funds. (f) The officer or official who has executed the Property Schedule on Lessee's behalf is familiar with Lessee's expectations regarding the use and expenditure of the proceeds of the Property Schedule. To the besJ of Lessee's knowledge, information and belief, the facts and estimates set forth in herein are accurate and the expectations of Lessee set forth herein are reasonable. 14.03 Further Assurances. Lessee agrees to execute such other and further documenls, including, without limitation, confirmatory financing slatements, continuation statements, certificates of Iitie and the like, and to take all such aclion as may be necessary or appropriate, from lime to time, in the reasonable opinion of Lessor, to perfecl, confirm, establish, reestablish, continue, or complete the interests of Lessor in this Agreement and the Property Schedules, to consummate the transactions contemplated hereby and thereby, and to carry out the purposes and intentions of !his Agreement and the Property Schedules. 14.04 Binding Effect. This Agreement shall inure to the benefit of and shall be binding upon Lessor and Lessee and their respective successors and assigns. 14.05 Severability. In the event any provision of this Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 14.06 Waiver of Jurv Trials. Lessee and lessor hereby irrevocably waive all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or the actions of Lessor or Lessee in the negotiation, administralion, performance or enforcement hereof. 14.07 Amendments. Changes and Modifications. This Agreement may be amended in writing by Lessor and Lessee to the extent the amendment or modification does not apply to outstanding Property Schedules at the time of such amendment or modification. The consent of all assignees shall be required to any amendment or modification before such amendment or modification shall be applicable to any outstanding Property Schedule. 14.08 Execution in Counterparts. This Agreement and the Property Schedules hereunder may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall consOlute but one and the same instrument. 14.09 Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State. 14.10 Captions. The captions or headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. IN WITNESS WHEREOF, lessor and Lessee have caused this Agreement to be executed in their names by their duly authorized representatives as of the date first above written. Lessor: u.s. Ban corp Government Lessee: County of Harnett Leasing and Finance, Inc. By: By: Name: Name: Title: Title: Attest: By: Name: Title: ADDENDUM (NORTH CAROLINA) Master Tax-Exempt Lease/Purchase Agreement THIS ADDENDUM, which is entered into as of September 3, 2013 between U.S. Bancorp Government Leasing and Finance, Inc. ("Lessor") and County of Harnett ("Lessee"), is intended to modify and supplement Property Schedule No. 1 (the "Property Schedule") to the Master Tax-Exempt Lease/Purchase Agreement between Lessor and Lessee dated as of September 3, 2013 (the "Master Agreement"). Capitalized terms not otherwise defined herein shall have the meanings set forth in the Master Agreement. In addition to the representations, warranties and covenants set forth in the Master Agreement, Lessee represents, warrants and covenants for the benefit of Lessor that (i) Lessee has reviewed the Property Schedule with legal counsel regarding the need to obtain approval of the Local Government Commission, and if determined that such approval is needed, has so obtained such approval, and (ii) if Lessee is a school district, Lessee has reviewed Section 115C-528 of the General Statutes of North Carolina with its legal counsel for compliance with all of the terms and conditions set forth therein for lease-purchase contracts, and has complied with all said terms and conditions with respect to the Property Schedule. IN WITNESS WHEREOF, Lessor and Lessee have caused this Addendum to be executed in their names by their duly authorized representatives as of the date first above written. Lessor: U.S. Bancorp Government Leasing and Lessee: County of Harnett Finance, Inc. By: By: Name: Name: Title: Title: Attest: B_y Name: Title: !Property Schedule No. 11 Master Tax-Exempt Lease/Purchase Agreement This Property Schedule No. 1 is entered into as of the Commencement Date set forth below, pursuant to that certain Master Tax- Exempt Lease/Purchase Agreement (the "Master Agreement"), dated as of September 3, 2013, between U.S. Bancorp Government Leasing and Finance, Inc., and County of Harnett. 1. Interpretation. The terms and conditions of the Master Agreement are incorporated herein by reference as if fully set forth herein. Reference is made to the Master Agreement for all representations, covenants and warranties made by Lessee in the execution of this Property Schedule, unless specifically set forth herein. In the event of a conflict between the provisions of the Master Agreement and the provisions of this Property Schedule, the provisions of this Property Schedule shall control. All capitalized terms not otherwise defined herein shall have the meanings provided in the Master Agreement. 2. Commencement Date. The Commencement Date for this Property Schedule is September 3, 2013. 3. Property Description and Payment Schedule. The Property subject to this Property Schedule is described in Exhibit 1 hereto. Lessee shall not remove such property from the locations set forth therein without giving prior written notice to Lessor. The Lease Payment Schedule for this Property Schedule is set forth in Exhibit 1. 4. Opinion. The Opinion of Lessee's Counsel is attached as Exhibit 2. 5. Lessee's Certificate. The Lessee's Certificate is attached as Exhibit 3. 6. Proceeds. Lessor shall disburse the proceeds of this Property Schedule in accordance with the instructions attached hereto as Exhibit 4. 7. Acceptance Certificate. The form of Acceptance Certificate is attached as Exhibit 5. 8. Additional Purchase Option Provisions. In addition to the Purchase Option provisions set forth in the Master Agreement, Lease Payments payable under this Property Schedule shall be subject to prepayment in whole at any time by payment of the applicable Termination Amount set forth in Exhibit 1 (Payment Schedule) and payment of all accrued and unpaid interest through the date of prepayment. 9. Bank Qualification and Arbitrage Rebate. Attached as Exhibit 6. 10. Expiration. Lessor, at its sole determination, may choose not to accept this Property Schedule if the fully executed, original Master Agreement (including this Property Schedule and all ancillary documents) is not received by Lessor at its place of business by October 13, 2013. IN WITNESS WHEREOF, Lessor and Lessee have caused this Property Schedule to be executed in their names by their duly authorized representatives as of the Commencement Date above. Lessor: U.S. Bancorp Government Leasing and Lessee: County of Harnett Finance, Inc. By: By: Name: Name: Title: Title: Attest: By Name: Title: \EXHIBIT 1\ !Property Description and Payment Schedule! Re: Property Schedule No.1 to Master Tax-Exempt Lease/Purchase Agreement U.S. Bancorp Government Leasing and Finance, Inc. and County of Harnett. THE PROPERTY IS AS FOLLOWS: The Property as more fully described in Exhibit A incorporated herein by reference and attached hereto. It includes all replacements, parts, repairs, additions, accessions and accessories incorporated therein or affixed or attached thereto and any and all proceeds of the foregoing, including, without limitation, insurance recoveries. PROPERTY LOCATION: Address City, State Zip Code USE: Wheel Loader and Compactor-This use is essential to the proper, efficient and economic functioning of Lessee or to the services that Lessee provides; and Lessee has immediate need for and expects to rnake immediate use of substantially all of the Property, which need is not temporary or expected to diminish in the foreseeable future. Lease Payment Schedule Total Principal Amount: $739,763.00 Termination Payment No. Due Date Lease Principal Interest Amount Payment Portion Portion (After Making Payment for said Due Date) 1 3-0ct-2013 13,046.35 12,060.00 986.35 749,534.09 2 3-Nov-2013 13,046.35 12,076.08 970.27 737,095.73 3 3-Dec-2013 13,046.35 12,092.18 954.17 724,640.79 4 3-Jan-2014 13,046.35 12,108.30 938.05 712,169.23 5 3-Feb-2014 13,046.35 12,124.45 921.90 699,681.05 6 3-Mar-2014 13,046.35 12,140.61 905.74 687,176.22 7 3-Apr-2014 13,046.35 12,156.80 889.55 674,654.72 8 3-May-2014 13,046.35 12,173.01 873.34 662,116.52 9 3-Jun-2014 13,046.35 12,189.24 857.11 649,561.60 10 3-Jul-2014 13,046.35 12,205.49 840.86 636,989.94 11 3-Aug-2014 13,046.35 12,221.77 824.58 624,401.52 12 3-Sep-2014 13,046.35 12,238.06 808.29 611,796.32 13 3-0ct-2014 13,046.35 12,254.38 791.97 599,174.31 14 3-Nov-2014 13,046.35 12,270.72 775.63 586,535.47 15 3-Dec-2014 13,046.35 12,287.08 759.27 573,879.78 16 3-Jan-2015 13,046.35 12,303.46 742.89 561,207.21 17 3-Feb-2015 13,046.35 12,319.87 726.48 548,517.75 18 3-Mar-2015 13,046.35 12,336.29 710.06 535,811.36 19 3-Apr-2015 13,046.35 12,352.74 693.61 523,088.04 20 3-Mav-2015 13,046.35 12,369.21 677.14 510,347.75 21 3-Jun-2015 13,046.35 12,385.70 660.65 497,590.47 22 3-Jul-2015 13,046.35 12,402.22 644.13 484,816.19 23 3-Aug-2015 13,046.35 12,418.76 627.59 472,024.87 24 3-Sep-2015 13,046.35 12,435.31 611.04 459,216.50 25 3-0ct-2015 13,046.35 12,451.89 594.46 446,391.05 26 3-Nov-2015 13,046.35 12,468.50 577.85 433,548.49 27 3-Dec-2015 13,046.35 12,485.12 561.23 420,688.82 28 3-Jan-2016 13,046.35 12,501.77 544.58 407,812.00 29 3-Feb-2016 13,046.35 12,518.44 527.91 394,918.01 30 3-Mar-2016 13,046.35 12,535.13 511.22 382,006.82 31 3-Apr-2016 13,046.35 12,551.84 494.51 369,078.43 32 3-May-2016 13,046.35 12,568.58 477.77 356,132.79 33 3-Jun-2016 13,046.35 12,585.34 461.01 343,169.89 34 3-Jul-2016 13,046.35 12,602.12 444.23 330,189.71 35 3-Aug-2016 13,046.35 12,618.92 427.43 317,192.23 36 3-Sep-2016 13,046.35 12,635.74 410.61 304,177.41 37 3-0ct-2016 13,046.35 12,652.59 393.76 291,145.24 38 3-Nov-2016 13,046.35 12,669.46 376.89 278,095.69 39 3-Dec-2016 13,046.35 12,686.36 359.99 265,028.75 40 3-Jan-2017 13,046.35 12,703.27 343.08 251,944.38 41 3-Feb-2017 13,046.35 12,720.21 326.14 238,842.57 42 3-Mar-2017 13,046.35 12,737.17 309.18 225,723.28 43 3-Apr-2017 13,046.35 12,754.15 292.20 212,586.51 44 3-May-2017 13,046.35 12,771.16 275.19 199,432.21 45 3-Jun-2017 13,046.35 12,788.19 258.16 186,260.38 46 3-Jul-2017 13,046.35 12,805.24 241.11 173,070.99 47 3-Auq-2017 13,046.35 12,822.31 224.04 159,864.01 48 3-Sep-2017 13,046.35 12,839.41 206.94 146,639.42 49 3-0ct-2017 13,046.35 12,856.53 189.82 133,397.20 50 3-Nov-2017 13,046.35 12,873.67 172.68 120,137.33 51 3-Dec-2017 13,046.35 12,890.83 155.52 106,859.77 52 3-Jan-2018 13,046.35 12,908.02 138.33 93,564.51 53 3-Feb-2018 13,046.35 12,925.23 121.12 80,251.52 54 3-Mar-2018 13,046.35 12,942.46 103.89 66,920.78 55 3-Apr-2018 13,046.35 12,959.72 86.63 53,572.27 56 3-May-2018 13,046.35 12,977.00 69.35 40,205.96 57 3-Jun-2018 13,046.35 12,994.30 52.05 26,821.83 58 3-Jul-2018 13,046.35 13,011.63 34.72 13,419.85 59 3-Aug-2018 13 046.35 13 028.98 17.37 0.00 TOTALS: 769,734.65 739,763.00 29,971.65 Interest Rate: 1.60% Lessee: County of Harnett By: Name: Title: \EXHIBIT Aj !Property Description! One (1) new CAT Wheel Loader One (1) new CAT Compactor \EXHIBIT 2\ \Lessee's Counsel's Opinion! [To be provided on letterhead of Lessee's counsel.] September 3, 2013 U.S. Bancorp Government Leasing and Finance, Inc. 13010 SW 68th Parkway, Suite 100 Portland, OR 97223 County of Harnett P.O. Box 760 Lillington, NC 27546 Attention: Kimberly A. Honeycutt RE: Property Schedule No. 1 to Master Tax-Exempt Lease/Purchase Agreement between U.S. Bancorp Government Leasing and Finance, Inc. and County of Harnett. Ladies and Gentlemen: We have acted as special counsel to County of Harnett ("Lessee"), in connection with the Master Tax-Exempt Lease/Purchase Agreement, dated as of September 3, 2013 (the "Master Agreement"), between County of Harnett, as lessee, and U.S. Bancorp Government Leasing and Finance, Inc. as lessor ("Lessor"), and the execution of Property Schedule No. 1 (the "Property Schedule") pursuant to the Master Agreement. We have examined the law and such certified proceedings and other papers as we deem necessary to render this opinion. All capitalized terms not otherwise defined herein shall have the meanings provided in the Master Agreement and Property Schedule. As to questions of fact material to our opinion, we have relied upon the representations of Lessee in the Master Agreement and the Property Schedule and in the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon the foregoing, we are of the opinion that, under existing law: 1. Lessee is a public body corporate and politic, duly organized and existing under the laws of the State, and has a substantial amount of one or more of the following sovereign powers: (a) the power to tax, (b) the power of eminent domain, and (c) the police power. 2. Lessee has all requisite power and authority to enter into the Master Agreement and the Property Schedule and to perform its obligations thereunder. 3. The execution, delivery and performance of the Master Agreement and the Property Schedule by Lessee has been duly authorized by all necessary action on the part of Lessee. 4. All proceedings of Lessee and its governing body relating to the authorization and approval of the Master Agreement and the Property Schedule, the execution thereof and the transactions contemplated thereby have been conducted in accordance with all applicable open meeting laws and all other applicable state and federal laws. 5. Lessee has acquired or has arranged for the acquisition of the Property subject to the Property Schedule, and has entered into the Master Agreement and the Property Schedule, in compliance with all applicable public bidding laws. 6. Lessee has obtained all consents and approvals of other governmental authorities or agencies which may be required for the execution, delivery and performance by Lessee of the Master Agreement and the Property Schedule. 7. The Master Agreement and the Property Schedule have been duly executed and delivered by Lessee and constitute legal, valid and binding obligations of Lessee, enforceable against Lessee in accordance with the terms thereof, except insofar as the enforcement thereof may be limited by any applicable bankruptcy, insolvency, moratorium, reorganization or other laws of equitable principles of general application, or of application to municipalities or political subdivisions such as the Lessee, affecting remedies or creditors' rights generally, and to the exercise of judicial discretion in appropriate cases. 8. As of the date hereof, based on such inquiry and investigation as we have deemed sufficient, no litigation is pending, (or, to our knowledge, threatened) against Lessee in any court (a) seeking to restrain or enjoin the delivery of the Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the authority of Lessee to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule; or (d) affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule. This opinion may be relied upon by Lessor, its successors and assigns, and any other legal counsel who provides an opinion with respect to the Property Schedule. Very truly yours, By:-------------- Dated:------------ \EXHIBIT 31 !Lessee's Certificate! Re: Property Schedule No. 1 to Master Tax-Exempt Lease/Purchase Agreement U.S. Bancorp Government Leasing and Finance, Inc. and County of Harnett. The undersigned, being the duly elected, qualified and acting _________ of the County of Harnett ("Lessee") do hereby certify, as of September 3, 2013, as follows: 1. Lessee did, at a meeting of the governing body of the Lessee held by resolution or ordinance duly enacted, in accordance with all requirements of law, approve and authorize the execution and delivery of the above-referenced Property Schedule (the "Property Schedule") and the Master Tax-Exempt Lease/Purchase Agreement (the "Master Agreement") by the following named representative of Lessee, to wit: NAME TITLE SIGNATURE OF EXECUTING OFFICIAL OF EXECUTING OFFICIAL OF EXECUTING OFFICIAL And/Or 2. The above-named representative of the Lessee held at the time of such authorization and holds at the present time the office set forth above. 3. The meeting(s) of the governing body of the Lessee at which the Master Agreement and the Property Schedule were approved and authorized to be executed was duly called, regularly convened and attended throughout by the requisite quorum of the members thereof, and the enactment approving the Master Agreement and the Property Schedule and authorizing the execution thereof has not been altered or rescinded. All meetings of the governing body of Lessee relating to the authorization and delivery of Master Agreement and the Property Schedule have been: (a) held within the geographic boundaries of the Lessee; (b) open to the public, allowing all people to attend; (c) conducted in accordance with internal procedures of the governing body; and (d) conducted in accordance with the charter of the Lessee, if any, and the laws of the State. 4. No event or condition that constitutes, or with the giving of notice or the lapse of time or both would constitute, an Event of Default or a Nonappropriation Event (as such terms are defined in the Master Agreement) exists at the date hereof with respect to this Property Schedule or any other Property Schedules under the Master Agreement. 5. The acquisition of all of the Property under the Property Schedule has been duly authorized by the governing body of Lessee. 6. Lessee has, in accordance with the requirements of law, fully budgeted and appropriated sufficient funds for the current budget year to make the Lease Payments scheduled to come due during the current budget year under the Property Schedule and to meet its other obligations for the current budget year and such funds have not been expended for other purposes. 7. As of the date hereof, no litigation is pending, (or, to my knowledge, threatened) against Lessee in any court (a) seeking to restrain or enjoin the delivery of the Master Agreement or the Property Schedule or of other agreements similar to the Master Agreement; (b) questioning the authority of Lessee to execute the Master Agreement or the Property Schedule, or the validity of the Master Agreement or the Property Schedule, or the payment of principal of or interest on, the Property Schedule; (c) questioning the constitutionality of any statute, or the validity of any proceedings, authorizing the execution of the Master Agreement and the Property Schedule; or (d) affecting the provisions made for the payment of or security for the Master Agreement and the Property Schedule. County of Harnett By: Title: SIGNER MUST NOT BE THE SAME AS THE EXECUTING OFFICIAL(S) SHOWN ABOVE. jEXHIBIT 4j !Payment of Proceeds Instructions! U.S. Bancorp Government Leasing and Finance, Inc. 13010 SW 68th Parkway, Suite 100 Portland, OR 97223 Re: Property Schedule No. 1 (the "Property Schedule") to Master Tax-Exempt Lease/Purchase Agreement between U.S. Bancorp Government Leasing and Finance, Inc. ("Lessor") and County of Harnett ("Lessee"). Ladies and Gentlemen: The undersigned, an Authorized Representative of the Lessee hereby requests and authorizes Lessor to disburse the net proceeds of the Property Schedule as follows: NameofPayee: -------------------------------- By check ___ __ By wire transfer ___ _ If by check, Payee's address: If by wire transfer, instructions as follows: Pay to Bank Name: Bank Address: Bank Phone #: For Account of: Account No.: ABA No.: Lessee: County of Harnett Bv: Name: Title: !EXHIBIT 5j !Acceptance Certificate! U.S. Bancorp Government Leasing and Finance, Inc. 13010 SW 68th Parkway, Suite 100 Portland, OR 97223 Re: Property Schedule No.1 to Master Tax-Exempt Lease/Purchase Agreement between U.S. Bancorp Government Leasing and Finance, Inc. and County of Harnett Ladies and Gentlemen: In accordance with the above-referenced Master Tax-Exempt Lease/Purchase Agreement (the "Master Agreement"), the undersigned ("Lessee") hereby certifies and represents to, and agrees with, U.S. Bancorp Government Leasing and Finance, Inc. ("Lessor"), as follows: (1) The Property, as such terms are defined in the above-referenced Property Schedule, has been acquired, made, delivered, installed and accepted on the date indicated below. (2) Lessee has conducted such inspection and/or testing of the Property as it deems necessary and appropriate and hereby acknowledges that it accepts the Property for all purposes. (3) No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default or a Nonappropriation Event (as such terms are defined in the Master Agreement) exists at the date hereof. Acceptance Date: -------------- Lessee: County of Harnett By: Name: Title: !EXHIBIT 6j !Bank Qualification And Arbitrage Rebate! U.S. Bancorp Government Leasing and Finance, Inc. 13010 SW 68th Parkway, Suite 100 Portland, OR 97223 Re: Property Schedule No. 1 to Master Tax-Exempt Lease/Purchase Agreement U.S. Bancorp Government Leasing and Finance, Inc. and County of Harnett Bank Qualified Tax-Exempt Obligation under Section 265 Not applicable. Arbitrage Rebate Eighteen Month Exception: Pursuant to Treasury Regulations Section 1.148-?(d), the gross proceeds of this Property Schedule will be expended for the governmental purposes for which this Property Schedule was entered into, as follows: at least 15% within six months after the Commencement Date, at least 60% within 12 months after the Commencement Date, and 100% within 18 months after the Commencement Date. If Lessee is unable to comply with Section 1.148-7(d) of the Treasury Regulations, Lessee shall compute rebatable arbitrage on this Agreement and pay rebatable arbitrage to the United States at least once every five years, and within 60 days after payment of the final Lease Payment due under this Agreement. Lessee: County of Harnett By: Name: Title: Language for UCC Financing Statements Schedule 1 SECURED PARTY: U.S. Bancorp Government Leasing and Finance, Inc. DEBTOR: County of Harnett This financing statement covers all of Debtor's right, title and interest, whether now owned or hereafter acquired, in and to the equipment leased to Debtor under Property Schedule No. 1 dated September 3, 2013 to that certain Master Tax- Exempt Lease Purchase Agreement dated as of September 3, 2013, in each case between Debtor, as Lessee, and Secured Party, as Lessor, together with all accessions, substitutions and replacements thereto and therefore, and proceeds (cash and non-cash), including, without limitation, insurance proceeds, thereof, including without limiting, all equipment described on Exhibit A attached hereto and made a part hereof. Debtor has no right to dispose of the equipment. INSURANCE AUTHORIZATION AND VERIFICATION Date: September 3, 2013 Property Schedule No: To: County of Harnett (the "Lessee") From: U.S. Bancorp Government Leasing and Finance, Inc. (the "Lessor") 13010 SW 68th Parkway, Suite 100 Portland, OR 97223 Attn: Myra Aksamit TO THE LESSEE: In connection with the above-referenced Property Schedule, Lessor requires proof in the form of this document, executed by both Lessee* and Lessee's agent, that Lessee's insurable interest in the financed property (the "Property") meets Lessor's requirements as follows, with coverage including, but not limited to, fire, extended coverage, vandalism, and theft: Lessor, AND ITS SUCCESSORS AND ASSIGNS, shall be covered as both ADDITIONAL INSURED and LENDER'S LOSS PAYEE with regard to all equipment financed or leased by policy holder through or from Lessor. All such insurance shall contain a provision to the effect that such insurance shall not be canceled or modified without first giving written notice thereof to Lessor and Lessee at least thirty (30) days in advance of such cancellation or modification. Lessee must carry GENERAL LIABILITY (and/or, for vehicles, Automobile Liability) in the amount of no less than $1,000,000.00 (one million dollars). Lessee must carry PROPERTY Insurance (or, for vehicles, Physical Damage Insurance) in an amount no less than the 'Insurable Value' $739,763.00, with deductibles no more than $10,000.00. *Lessee: Please execute this form and return with your document package. Lessor will fax this form to your insurance agency for endorsement. In lieu of agent endorsement, Lessee's agency may submit insurance certificates demonstrating compliance with all requirements. If fully executed form (or Lessee-executed form plus certificates) is not provided within 15 days, we have the right to purchase such insurance at your expense. Should you have any questions, please contact Myra Aksamit at 303-585-4054. By signing, Lessee authorizes the Agent named below: 1) to complete and return this form as indicated; and 2) to endorse the policy and subsequent renewals to reflect the required coverage as outlined above. Agency/Agent: I Address: Phone/Fax: I Email: Lessee: County of Harnett By: Name: Title: TO THE AGENT: In lieu of providing a certificate, please execute this form in the space below and promptly fax it to Lessor at 303-585-4732. This fully endorsed form shall serve as proof that Lessee's insurance meets the above requirements. Agent hereby verifies that the above requirements have been met in regard to the Property listed below. Print Name of Agency: X. ________________ _ By: x __________________________ _ (Agent's Signature) Print Name: X. _____________ _ Date: X. _________________ __ Insurable Value: $739,763.00 ATTACHED: PROPERTY DESCRIPTION FOR PROPERTY SCHEDULE NO.: 1 Notification of Tax Treatment to Tax-Exempt Lease/Purchase Agreement This Notification of Tax Treatment is pursuant to the Master Tax-Exempt Lease/Purchase Agreement dated as of September 3, 2013 and the related Property Schedule No. 1 dated September 3, 2013, between Lessor and Lessee (the "Agreement"). X Lessee agrees that this Property Schedule SHOULD be subject to sales/use taxes Lessee agrees that this Property Schedule should NOT be subject to sales/use taxes and Lessee has included our tax-exemption certificate with this document package Lessee agrees that this Property Schedule should NOT be subject to sales/use taxes and no tax-exemption certificate is issued to us by the State Lessee agrees that this Property Schedule is a taxable transaction and subject to any/all taxes Lessee agrees that this Property Schedule is subject to sales/use taxes and will pay those taxes directly to the State or Vendor IN WITNESS WHEREOF, Lessee has caused this Notification of Tax Treatment to be executed by their duly authorized representative. Lessee: County of Harnett By: Name: Title: Instructions for Form 8038-G (Rev. September 2011) ~<fa\ Department of the Treasury ~Jitl/1 Internal Revenue Service Information Return for Tax-Exempt Governmental Obligations Section references are to the Internal Revenue Code unless otherwise noted. General Instructions Purpose of Form Form 8038-G is used by issuers of tax-exempt governmental obligations to provide the IRS with the information required by section 149(e) and to monitor the requirements of sections 141 through 150. Who Must File IF the issue price THEN, for tax-exempt (line 21, column (b)) governmental is... obligations issued after December 31, 1986, issuers must file ... $100,000 or more A separate Form 8038-G for each issue Less than $100,000 Form 8038-GC, Information Return for Small Tax-Exempt Governmental Bond Issues, Leases, and Installment Sales m For all build America bonds and recovery zone economic development bonds use Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds. For tax credit bonds and specified tax credit bonds use Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds. When To File File Form 8038-G on or before the 15th day of the 2nd calendar month after the close of the calendar quarter in which the bond is issued. Form 8038-G may not be filed before the issue date and must be completed based on the facts as of the issue date. Late filing. An issuer may be granted an extension of time to file Form 8038-G under Section 3 of Rev. Proc. 2002-48, 2002-37 I.R.S. 531, if it is determined that the failure to file timely is not due to willful neglect. Type or print at the top of the form "Request for Relief under section 3 of Rev. Proc. 2002-48" and attach a letter explaining why Form 8038-G was not submitted to the IRS on time. Also indicate whether the bond issue in question is under examination by the IRS. Do not submit copies of the trust Sep 20,2011 indenture or other bond documents. See Where To File next. Where To File File Form 8038-G, and any attachments, with the Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201. Private delivery services. You can use certain private delivery services designated by the IRS to meet the "timely mailing as timely filing/paying" rule for tax returns and payments. These private delivery services include only the following: • DHL Express (DHL): DHL Same Day Service. • Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First. • United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express. The private delivery service can tell you how to get written proof of the mailing date. Other Forms That May Be Required For rebating arbitrage (or paying a penalty in lieu of arbitrage rebate) to the Federal government, use Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate. For private activity bonds, use Form 8038, Information Return for Tax-Exempt Private Activity Bond Issues. For build America bonds (Direct Pay), build America bonds (Tax Credit), and recovery zone economic development bonds, complete Form 8038-B, Information Return for Build America Bonds and Recovery Zone Economic Development Bonds. For qualified forestry conservation bonds, new clean renewable energy bonds, qualified energy conservation bonds, qualified zone academy bonds, qualified school construction bonds, clean renewable energy bonds, Midwestern tax credit bonds, and all other qualified tax credit bonds (except build America bonds), file Form 8038-TC, Information Return for Tax Credit Bonds and Specified Tax Credit Bonds. Cat. No. 637740 Rounding to Whole Dollars You may show amounts on this return as whole dollars. To do so, drop amounts less than 50 cents and increase amounts from 50 cents through 99 cents to the next higher dollar. Questions on Filing Form 8038-G For specific questions on how to file Form 8038-G send an email to the IRS at TaxExemptBondQuestions@irs.gov and put "Form 8038-G Question" in the subject line. In the email include a description of your question, a return email address, the name of a contact person, and a telephone number. Definitions Tax-exempt obligation. This is any obligation, including a bond, installment purchase agreement, or financial lease, on which the interest is excluded from income under section 103. Tax-exempt governmental obligation. A tax-exempt obligation that is not a private activity bond (see below) is a tax-exempt governmental obligation. This includes a bond issued by a qualified volunteer fire department under section 150(e). Private activity bond. This includes an obligation issued as part of an issue in which: • More than 10% of the proceeds are to be used for any private activity business use, and • More than 1 0% of the payment of principal or interest of the issue is either (a) secured by an interest in property to be used for a private business use (or payments for such property) or (b) to be derived from payments for property (or borrowed money) used for a private business use. It also includes a bond, the proceeds of which (a) are to be used directly or indirectly to make or finance loans (other than loans described in section 141(c)(2)) to persons other than governmental units and (b) exceeds the lesser of 5% of the proceeds or $5 million. Issue price. The issue price of obligations is generally determined under Regulations section 1.148-1(b). Thus, when issued for cash, the issue price is the first price at which a substantial amount of the obligations are sold to the public. To determine the issue price of an obligation issued for property, see sections 1273 and 127 4 and the related regulations. Issue. Generally, obligations are treated as part of the same issue if they are issued by the same issuer, on the same date, and in a single transaction, or a series of related transactions. However, obligations issued during the same calendar year (a) under a loan agreement under which amounts are to be advanced periodically (a "draw-down loan") or (b) with a term not exceeding 270 days, may be treated as part of the same issue if the obligations are equally and ratably secured under a single indenture or loan agreement and are issued under a common financing arrangement (for example, under the same official statement periodically updated to reflect changing factual circumstances). Also, for obligations issued under a draw-down loan that meet the requirements of the preceding sentence, obligations issued during different calendar years may be treated as part of the same issue if all of the amounts to be advanced under the draw-down loan are reasonably expected to be advanced within 3 years of the date of issue of the first obligation. Likewise, obligations (other than private activity bonds) issued under a single agreement that is in the form of a lease or installment sale may be treated as part of the same issue if all of the property covered by that agreement is reasonably expected to be delivered within 3 years of the date of issue of the first obligation. Arbitrage rebate. Generally, interest on a state or local bond is not tax-exempt unless the issuer of the bond rebates to the United States arbitrage profits earned from investing proceeds of the bond in higher yielding nonpurpose investments. See section 148(f). Construction issue. This is an issue of tax-exempt bonds that meets both of the following conditions: 1 . At least 75% of the available construction proceeds are to be used for construction expenditures with respect to property to be owned by a governmental unit or a section 501 (c)(3) organization, and 2. All the bonds that are part of the issue are qualified 501 (c)(3) bonds, bonds that are not private activity bonds, or private activity bonds issued to finance property to be owned by a governmental unit or a section 501 (c)(3) organization. In lieu of rebating any arbitrage that may be owed to the United States, the issuer of a construction issue may make an irrevocable election to pay a penalty. The penalty is equal to 11/2% of the amount of construction proceeds that do not meet certain spending requirements. See section 148(f)(4)(C) and the Instructions for Form 8038-T. Specific Instructions Part !-Reporting Authority Amended return. An issuer may file an amended return to change or add to the information reported on a previously filed return for the same date of issue. If you are filing to correct errors or change a previously filed return, check the Amended Return box in the heading of the form. The amended return must provide all the information reported on the original return, in addition to the new or corrected information. Attach an explanation of the reason for the amended return and write across the top, "Amended Return Explanation." Failure to attach an explanation may result in a delay in processing the form. Line 1. The issuer's name is the name of the entity issuing the obligations, not the name of the entity receiving the benefit of the financing. For a lease or installment sale, the issuer is the lessee or the purchaser. Line 2. An issuer that does not have an employer identification number (EIN) should apply for one on Form SS-4, Application for Employer Identification Number. You can get this form on the IRS website at IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676). You may receive an EIN by telephone by following the instructions for Form SS-4. Line 3a. If the issuer wishes to authorize a person other than an officer or other employee of the issuer (including a legal representative or paid preparer) to communicate with the IRS and whom the IRS may contact about this return (including in writing or by telephone), enter the name of such person here. The person listed in line 3a must be an individual. Do not enter the name and title of an officer or other employee of the issuer here (use line 1 Oa for that purpose). Note. By authorizing a person other than an authorized officer or other employee of the issuer to communicate with the IRS and whom the IRS may contact about this return, the issuer authorizes the IRS to communicate directly with the individual entered on line 3a and consents to disclose the issuer's return information to that individual, as necessary, to process this return. Lines 4 and 6. If you listed an individual on line 3a to communicate with the IRS and whom the IRS may contact about this return, enter the number and street (or P.O. box if mail is not delivered to street address), city, town, or post office, state, and ZIP code of that person. Otherwise, enter the issuer's number and street (or P .0. box if mail is not delivered to street address), city, town, or post office, state, and ZIP code. Note. The address entered on lines 4 and 6 is the address the IRS will use for all written communications regarding the processing of this return, including any notices. Line 5. This line is for IRS use only. Do not make any entries in this box. Line 7. The date of issue is generally the date on which the issuer physically -2- exchanges the bonds that are part of the issue for the underwriter's (or other purchaser's) funds. For a lease or installment sale, enter the date interest starts to accrue in a MM/DDNYYY format. Line 8. If there is no name of the issue please provide other identification of the' issue. Line 9. Enter the CUSIP (Committee on Uniform Securities Identification Procedures) number of the bond with the latest maturity. If the issue does not have a CUSIP number, write "None." Line 10a. Enter the name and title of the officer or other employee of the issuer whom the IRS may call for more information. If the issuer wishes to designate a person other than an officer or other employee of the issuer (including a legal representative or paid preparer) whom the IRS may call for more information about the return, enter the name, title, and telephone number of such person on lines 3a and 3b. ... Complete lines 1 Oa and 1 Db even ~ if you complete lines 3a and 3b. Part II-Type of Issue m Elections referred to in Part II are made on the original bond documents, not on this form. Identify the type of obligations issued by entering the corresponding issue price (see Issue price under Definitions earlier). Attach a schedule listing names and EINs of organizations that are to use proceeds of these obligations, if different from those of the issuer, include a brief summary of the use and indicate whether or not such user is a governmental or nongovernmental entity. Line 18. Enter a description of the issue in the space provided. Line 19. If the obligations are short-term tax anticipation notes or warrants (TANs) or short-term revenue anticipation notes or warrants (RANs), check box 19a. If the obligations are short-term bond anticipation notes (BANs), issued with the expectation that they will be refunded with the proceeds of long-term bonds at some future date, check box 19b. Do not check both boxes. Line 20. Check this box if property other than cash is exchanged for the obligation, for example, acquiring a police car, a fire truck, or telephone equipment through a series of monthly payments. (This type of obligation is sometimes referred to as a "municipal lease.") Also check this box if real property is directly acquired in exchange for an obligation to make periodic payments of interest and principal. Do not check this box if the proceeds of the obligation are received in the form of cash, even if the term "lease" is used in the title of the issue. Part Ill-Description of Obligations Line 21. For column (a), the final maturity date is the last date the issuer must redeem the entire issue. For column (b), see Issue price under Definitions earlier. For column (c), the stated redemption price at maturity of the entire issue is the sum of the stated redemption prices at maturity of each bond issued as part of the issue. For a lease or installment sale, write "N/A" in column (c). For column (d), the weighted average maturity is the sum of the products of the issue price of each maturity and the number of years to maturity (determined separately for each maturity and by taking into account mandatory redemptions), divided by the issue price of the entire issue (from line 21, column (b)). For a lease or installment sale, enter instead the total number of years the lease or installment sale will be outstanding. For column (e), the yield, as defined in section 148(h), is the discount rate that, when used to compute the present value of all payments of principal and interest to be paid on the obligation, produces an amount equal to the purchase price, including accrued interest. See Regulations section 1 .148-4 for specific rules to compute the yield on an issue. If the issue is a variable rate issue, write "VR" as the yield of the issue. For other than variable rate issues, carry the yield out to four decimal places (for example, 5.3125%). If the issue is a lease or installment sale, enter the effective rate of interest being paid. Part IV-Uses of Proceeds of Bond Issue For a lease or installment sale, write "N/A" in the space to the right of the title for Part IV. Line 22. Enter the amount of proceeds that will be used to pay interest from the date the bonds are dated to the date of issue. Line 24. Enter the amount of the proceeds that will be used to pay bond issuance costs, including fees for trustees and bond counsel. If no bond proceeds will be used to pay bond issuance costs, enter zero. Do not leave this line blank. Line 25. Enter the amount of the proceeds that will be used to pay fees for credit enhancement that are taken into account in determining the yield on the issue for purposes of section 148(h) (for example, bond insurance premiums and certain fees for letters of credit). Line 26. Enter the amount of proceeds that will be allocated to such a fund. Line 27. Enter the amount of the proceeds that will be used to pay principal, interest, or call premium on any other issue of bonds within 90 days of the date of issue. Line 28. Enter the amount of the proceeds that will be used to pay principal, interest, or call premium on any other issue of bonds after 90 days of the date of issue, including proceeds that will be used to fund an escrow account for this purpose. Part V-Description of Refunded Bonds Complete this part only if the bonds are to be used to refund a prior issue of tax-exempt bonds. For a lease or installment sale, write "N/A" in the space to the right of the title for Part V. Lines 31 and 32. The remaining weighted average maturity is determined without regard to the refunding. The weighted average maturity is determined in the same manner as on line 21, column (d). line 34. If more than a single issue of bonds will be refunded, enter the date of issue of each issue. Enter the date in an MM/DD/YYYY format. Part VI-Miscellaneous Line 35. An allocation of volume cap is required if the nonqualified amount for the issue is more than $15 million but is not more than the amount that would cause the issue to be private activity bonds. Line 36. If any portion of the gross proceeds of the issue is or will be invested in a guaranteed investment contract (GIG), as defined in Regulations section 1.148-1 (b), enter the amount of the gross proceeds so invested, as well as the final maturity date of the GIG and the name of the provider of such contract. Line 37. Enter the amount of the proceeds of this issue used to make a loan to another governmental unit, the interest of which is tax-exempt. Line 38. If the issue is a loan of proceeds from another tax-exempt issue, check the box and enter the date of issue, EIN, and name of issuer of the master pool obligation. line 40. Check this box if the issue is a construction issue and an irrevocable election to pay a penalty in lieu of arbitrage rebate has been made on or before the date the bonds were issued. The penalty is payable with a Form 8038-T for each 6-month period after the date the bonds are issued. Do not make any payment of penalty in lieu of arbitrage rebate with this form. See Rev. Proc. 92-22, 1992-1 G.B. 736 for rules regarding the "election document." line 41a. Check this box if the issuer has identified a hedge on its books and records according to Regulations sections 1.148-4(h)(2)(viii) and 1.148-4(h)(5) that permit an issuer of tax-exempt bonds to identify a hedge for it to be included in yield calculations for computing arbitrage. line 42. In determining if the issuer has super-integrated a hedge, apply the rules of Regulations section 1.148-4(h)(4). If the hedge is super-integrated, check the box. Line 43. If the issuer takes a "deliberate action" after the issue date that causes -3- the conditions of the private business tests or the private loan financing test to be met, then such issue is also an issue of private activity bonds. Regulations section 1.141-2( d)(3) defines a deliberate action as any action taken by the issuer that is within its control regardless of whether there is intent to violate such tests. Regulations section 1.141-12 explains the conditions to taking remedial action that prevent an action that causes an issue to meet the private business tests or private loan financing test from being treated as a deliberate action. Check the box if the issuer has established written procedures to ensure timely remedial action for all nonqualified bonds according to Regulations section 1.141-12 or other remedial actions authorized by the Commissioner under Regulations section 1.141-12(h). line 44. Check the box if the issuer has established written procedures to monitor compliance with the arbitrage, yield restriction, and rebate requirements of section 148. Line 45a. Check the box if some part of the proceeds was used to reimburse expenditures. Figure and then enter the amount of proceeds that are used to reimburse the issuer for amounts paid for a qualified purpose prior to the issuance of the bonds. See Regulations section 1.150-2. Line 45b. An issuer must adopt an official intent to reimburse itself for preissuance expenditures within 60 days after payment of the original expenditure unless excepted by Regulations section 1.150-2(f). Enter the date the official intent was adopted. See Regulations section 1.150-2(e) for more information about official intent. Signature and Consent An authorized representative of the issuer must sign Form 8038-G and any applicable certification. Also print the name and title of the person signing Form 8038-G. The authorized representative of the issuer signing this form must have the authority to consent to the disclosure of the issuer's return information, as necessary to process this return, to the person(s) that have been designated in Form 8038-G. Note. If the issuer in Part 1 , lines 3a and 3b authorizes the IRS to communicate (including in writing and by telephone) with a person other than an officer or other employee of the issuer, by signing this form, the issuer's authorized representative consents to the disclosure of the issuer's return information, as necessary to process this return, to such person. Paid Preparer If an authorized officer of the issuer filled in this return, the paid preparer's space should remain blank. Anyone who prepares the return but does not charge the organization should not sign the return. Certain others who prepare the return should not sign. For example, a regular, full-time employee of the issuer, such as a clerk, secretary, etc., should not sign. Generally, anyone who is paid to prepare a return rnust sign it and fill in the other blanks in the Paid Preparer Use Only area of the return. The paid preparer must: • Sign the return in the space provided for the preparer's signature (a facsimile signature is acceptable), • Enter the preparer information, and • Give a copy of the return to the issuer. Paperwork Reduction Act Notice. We ask for the information on this form to carry out the Internal Revenue laws of the United States. You are required to give us the information. We need it to ensure that you are complying with these laws. You are not required to provide the information requested on a form that is subject to the Paperwork Reduction Act unless the form displays a valid OMB control number. Books or records relating to a form or its instructions must be retained as long as their contents may become material in the administration of any Internal Revenue law. Generally, tax returns and return information are confidential, as required by section 6103. The time needed to complete and file this form varies depending on individual circumstances. The estimated average time is: -4- Learning about the law or the form ............ . Preparing, copying, assembling, and sending the form to the IRS ..... . 2 hr., 41 min. 3 hr., 3 min. If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we would be happy to hear from you. You can write to the Internal Revenue Service, Tax Products Coordinating Committee, SE:W:CAR:MP:T:M:S, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Do not send the form to this office. Instead, see Where To File. Form8038•G Information Return for Tax-Exempt Governmental Obligations (Rev. September 2011) .,. Under Internal Revenue Code section 149(e) .,. See separate instructions. OMB No. 1545-0720 Caution: If the issue price is under$100,000, use Form 8038-GC. 3a Name of person (other than issuer) with whom the IRS may communicate about this return (see instructions) 3b Telephone number of other person shown on 3a 4 Number and street (or P.O. box if mail is not delivered to street address) Room/suite 5 Report number (For IRS Use 6 City, town, or post office, state, and ZIP code 7 Date of issue 8 Name of issue 9 CUSIP number 10a Name and title of officer or other employee of the issuer whom the IRS may call for more information (see instructions) 10b Telephone number of officer or other employee shown on 1 Oa 12 13 Transportation . 14 Public safety . 15 Environment (including sewage bonds) 16 Housing 17 Utilities 18 Other. Describe ,.._ ----------------------------= If obligations are TANs or RANs, check only box 19a ,.._ 19 If obligations are BANs, check only box 19b ,.._ 20 If obligations are in the form of a lease or installment sale, check box ,.._ 23 Issue price of entire issue (enter amount from line 21, column (b)) 24 Proceeds used for bond issuance costs (including underwriters' discount) . 25 Proceeds used for credit enhancement . 26 Proceeds allocated to reasonably required reserve or replacement fund 27 Proceeds used to currently refund prior issues 28 31 32 33 34 Enter the remaining weighted average maturity of the bonds to be currently refunded . Enter the remaining weighted average maturity of the bonds to be advance refunded Enter the last date on which the refunded bonds will be called (MM/DDIYYYY) Enter the date(s) the refunded bonds were issued ,.._ (MM/DDIYYYY) (e) Yield years years For Paperwork Reduction Act Notice, see separate instructions. Cat. No. 637738 Form 8038-G (Rev. 9-2011) Form 8038-G (Rev. 9-2011) 35 Enter the amount of the state volume cap allocated to the issue under section 141 (b}(5} 36a Enter the amount of gross proceeds invested or to be invested in a guaranteed investment contract (GIC} (see instructions) b Enter the final maturity date of the GIC..,.. -------------- c Enter the name of the GIC provider..,.. --------------- 37 Pooled financings: Enter the amount of the proceeds of this issue that are to be used to make loans to other governmental units . Page2 38a If this issue is a loan made from the proceeds of another tax-exempt issue, check box ..,.. D and enter the following information: b Enter the date of the master pool obligation..,.. --------------------- c Enter the EIN of the issuer of the master pool obligation..,.. ----------------- d Enter the name of the issuer of the master pool obligation..,.. ---------------- 39 If the issuer has designated the issue under section 265(b)(3)(B)(i}(lll} (small issuer exception), check box ..,.. D 40 If the issuer has elected to pay a penalty in lieu of arbitrage rebate, check box . ..,.. D 41a If the issuer has identified a hedge, check here..,.. D and enter the following information: b Name of hedge provider..,.. c Type of hedge..,.. ------------------ d Term of hedge..,.. ------------------ 42 If the issuer has superintegrated the hedge, check box ..,.. D 43 If the issuer has established written procedures to ensure that all nonqualified bonds of this issue are remediated according to the requirements under the Code and Regulations (see instructions), check box . ..,.. 0 44 If the issuer has established written procedures to monitor the requirements of section 148, check box . ..,.. D 45a If some portion of the proceeds was used to reimburse expenditures, check here..,.. D and enter the amount of reimbursement . . ..,.. b Enter the date the official intent was adopted ..,.. Signature and Consent Paid Preparer Use Only Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. I further declare that I consent to the IRS's disclosure of the issuer's return information, as necessary to process this return, to the person that I have authorized above. ~ Signature of issuer's authorized representative Date ~ Type or print name and title Print/Type preparer's name I Preparer's signature I Date I Check D if I PTIN self-employed I Firm's name I> I Firm's EIN I> Firm's address I> I Phone no. Form 8038-G (Rev. 9-2011) ESCROW AGREEMENT THIS EscRow AGREEMENT ("Escrow Agreement') is made as of September 3, 2013 by and among U.S. Bancorp Government Leasing and Finance, Inc. ("Lessor'), County of Harnett ("Lessee') and U.S. BANK NATIONAL ASSOCIATION, as escrow agent ("Escrow Agent'). Lessor and Lessee have heretofore entered into that certain Master Tax-Exempt Lease/Purchase Agreement dated as of September 3, 2013 (the "Master Agreement') and a Property Schedule No. 1 thereto dated September 3, 2013 (the "Schedule" and, together with the terms and conditions of the Agreement incorporated therein, the "Agreement'). The Schedule contemplates that certain personal property described therein (the "Equipment') is to be acquired from the vendor(s) or manufacturer(s) thereof (the "Vendor'). After acceptance of the Equipment by Lessee, the Equipment is to be financed by Lessor to Lessee pursuant to the terms of the Agreement. The Master Agreement further contemplates that Lessor will deposit an amount equal to the anticipated aggregate acquisition cost of the Equipment (the "Purchase Price'), being $739,763.00, with Escrow Agent to be held in escrow and applied on the express terms set forth herein. Such deposit, together with all interest and other additions received with respect thereto (hereinafter the "Escrow Fund'/ is to be applied to pay the Vendor its invoice cost (a portion of which may, if required, be paid prior to final acceptance of the Equipment by Lessee); and, if applicable, to reimburse Lessee for progress payments already made by it to the Vendor of the Equipment. The parties desire to set forth the terms on which the Escrow Fund is to be created and to establish the rights and responsibilities of the parties hereto. Now, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) in hand paid, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1 . Escrow Agent hereby agrees to serve as escrow agent upon the terms and conditions set forth herein. The moneys and investments held in the Escrow Fund are irrevocably held in trust for the benefit of Lessee and Lessor, and such moneys, together with any income or interest earned thereon, shall be expended only as provided in this Escrow Agreement, and shall not be subject to levy or attachment or lien by or for the benefit of any creditor of either Lessee or Lessor. Lessor, Lessee and Escrow Agent intend that the Escrow Fund constitute an escrow account in which Lessee has no legal or equitable right, title or interest until satisfaction in full of all conditions contained herein for the disbursement of funds by the Escrow Agent therefrom. However, if the parties' intention that Lessee shall have no legal or equitable right, title or interest until all conditions for disbursement are satisfied in full is not respected in any legal proceeding, the parties hereto intend that Lessor have a security interest in the Escrow Fund, and such security interest is hereby granted by Lessee to secure payment of all sums due to Lessor under the Master Agreement. For such purpose, Escrow Agent hereby agrees to act as agent for Lessor in connection with the perfection of such security interest and agrees to note, or cause to be noted, on all books and records relating to the Escrow Fund, the Lessor's interest therein. 2. On such day as is determined to the mutual satisfaction of the parties (the "Closing Date'), Lessor shall deposit with Escrow Agent cash in the amount of the Purchase Price, to be held in escrow by Escrow Agent on the express terms and conditions set forth herein. On the Closing Date, Escrow Agent agrees to accept the deposit of the Purchase Price by Lessor, and further agrees to hold the amount so deposited together with all interest and other additions received with respect thereto, as the Escrow Fund hereunder, in escrow on the express terms and conditions set forth herein. 3. Escrow Agent shall at all times segregate the Escrow Fund into an account maintained for that express purpose, which shall be clearly identified on the books and records of Escrow Agent as being held in its capacity as Escrow Agent. Securities and other negotiable instruments comprising the Escrow Fund from time to time shall be held or registered in the name of Escrow Agent (or its nominee). The Escrow Fund shall not, to the extent permitted by applicable law, be subject to levy or attachment or lien by or for the benefit of any creditor of any of the parties hereto (except with respect to the security interest therein held by Lessor). 4. The cash comprising the Escrow Fund from time to time shall be invested and reinvested by Escrow Agent in one or more investments as directed by Lessee. Absent written direction from Lessee, the cash will be invested in the U.S. Bank National Association Money Market Deposit Fund. See Exhibit 1 Investment Direction Letter. Lessee represents and warrants to Escrow Agent and Lessor that the investments selected by Lessee for investment of the Escrow Fund are permitted investments for Lessee under all applicable laws. Escrow Agent will use due diligence to collect amounts payable under a check or other instrument for the payment of money comprising the Escrow Fund and shall promptly notify Lessee and Lessor in the event of dishonor of payment under any such check or other instruments. Interest or other amounts earned and received by Escrow Agent with respect to the Escrow Fund shall be deposited in and comprise a part of the Escrow Fund. Escrow Agent shall maintain accounting records sufficient to permit calculation of the income on investments and interest earned on deposit of amounts held in the Escrow Fund. The parties acknowledge that to the extent regulations of the Comptroller of Currency or other applicable regulatory entity grant a right to receive brokerage confirmations of security transactions of the escrow, the parties waive receipt of such confirmations, to the extent permitted by law. The Escrow Agent shall furnish a statement of security transactions on its regular monthly reports. Attached as Exhibit 6 is the Class Action Negative Consent Letter to be reviewed by Lessee. 5. Upon request by Lessee and Lessor, Escrow Agent shall send monthly statements of account to Lessee and Lessor, which statements shall set forth all withdrawals from and interest earnings on the Escrow Fund as well as the investments in which the Escrow Fund is invested. 6. Escrow Agent shall take the following actions with respect to the Escrow Fund: (a) Upon Escrow Agent's acceptance of the deposit of the Purchase Price, an amount equal to Escrow Agent's set-up fee, as set forth on Exhibit 2 hereto, shall be disbursed from the Escrow Fund to Escrow Agent in payment of such fee. (b) Escrow Agent shall pay costs of the Equipment upon receipt of a duly executed Requisition Request (substantially in the format of Exhibit 3) signed by Lessor and Lessee. Lessor's authorized signatures are provided in Exhibit 5. Lessee's authorized signatures will be provided in Exhibit 3 of Master Lease Purchase Agreement. Escrow Agent will use best efforts to process requests for payment within one (1) business day of receipt of requisitions received prior to 2:00 p.m. Central Time. The final Requisition shall be accompanied by a duly executed Acceptance Certificate form attached as Exhibit 4 hereto. (c) Upon receipt by Escrow Agent of written notice from Lessor that an Event of Default or an Event of Nonappropriation (if provided for under the Master Agreement) has occurred under the Agreement, all funds then on deposit in the Escrow Fund shall be paid to Lessor for application in accordance with the Master Agreement, and this Escrow Agreement shall terminate. (d) Upon receipt by Escrow Agent of written notice from Lessor that the purchase price of the Equipment has been paid in full, Escrow Agent shall pay the funds then on deposit in the Escrow Fund to Lessor to be applied first to the next Lease Payment due under the Master Agreement, and second, to prepayment of the principal component of Lease Payments in inverse order of maturity without premium. To the extent the Agreement is not subject to prepayment, Lessor consents to such prepayment to the extent of such prepayment amount from the Escrow Fund. Upon disbursement of all amounts in the Escrow Fund, this Escrow Agreement shall terminate. (e) This Escrow Agreement shall terminate eighteen (18) months from the date of this Escrow Agreement. It may, however, be extended by mutual consent of Lessee and Lessor in writing to Escrow Agent. All funds on deposit in the Escrow Fund at the time of termination under this paragraph, unless otherwise directed by Lessee in writing (electronic means acceptable), shall be transferred to Lessor. 7. The fees and expenses, including any legal fees, of Escrow Agent incurred in connection herewith shall be the responsibility of Lessee. The basic fees and expenses of Escrow Agent shall be as set forth on Exhibit 2 and Escrow Agent is hereby authorized to deduct such fees and expenses from the Escrow Fund as and when the same are incurred without any further authorization from Lessee or Lessor. Escrow Agent may employ legal counsel and other experts as it deems necessary for advice in connection with its obligations hereunder. Escrow Agent waives any claim against Lessor with respect to compensation hereunder. 8. Escrow Agent shall have no liability for acting upon any written instruction presented by Lessor in connection with this Escrow Agreement, which Escrow Agent in good faith believes to be genuine. Furthermore, Escrow Agent shall not be liable for any act or omission in connection with this Escrow Agreement except for its own negligence, willful misconduct or bad faith. Escrow Agent shall not be liable for any loss or diminution in value of the Escrow Fund as a result of the investments made by Escrow Agent. 9. Escrow Agent may resign at any time by giving thirty (30) days' prior written notice to Lessor and Lessee. Lessor may at any time remove Escrow Agent as Escrow Agent under this Escrow Agreement upon written notice. Such removal or resignation shall be effective on the date set forth in the applicable notice. Upon the effective date of resignation or removal, Escrow Agent will transfer the Escrow Fund to the successor Escrow Agent selected by Lessor. 10. Lessee hereby represents, covenants and warrants that pursuant to Treasury Regulations Section 1.148-?(d), the gross proceeds of the Agreement will be expended for the governmental purposes for which the Agreement was entered into, as follows: at least 15% within six months after the Commencement Date, such date being the date of deposit of funds into the Escrow Fund, at least 60% within 12 months after the Commencement Date, and 100% within 18 months after the Commencement Date. If Lessee is unable to comply with Section 1.148-?(d) of the Treasury Regulations, Lessee shall, at its sole expense and cost, compute rebatable arbitrage on the Agreement and pay rebatable arbitrage to the United States at least once every five years, and within 60 days after payment of the final rental or Lease Payment due under the Agreement. 11. In the event of any disagreement between the undersigned or any of them, and/or any other person, resulting in adverse claims and demands being made in connection with or for any moneys involved herein or affected hereby, Escrow Agent shall be entitled at its option to refuse to comply with any such claim or demand, so long as such disagreement shall continue, and in so refusing Escrow Agent may refrain from making any delivery or other disposition of any moneys involved herein or affected hereby and in so doing Escrow Agent shall not be or become liable to the undersigned or any of them or to any person or party for its failure or refusal to comply with such conflicting or adverse demands, and Escrow Agent shall be entitled to continue so to refrain and refuse so to act until: (a) the rights of the adverse claimants have been finally adjudicated in a court assuming and having jurisdiction of the parties and the moneys involved herein or affected hereby; or (b) all differences shall have been adjusted by Master Agreement and Escrow Agent shall have been notified thereof in writing signed by all of the persons interested. 12. All notices (excluding billings and communications in the ordinary course of business) hereunder shall be in writing, and shall be sufficiently given and served upon the other party if delivered (a) personally, (b) by United States registered or certified mail, return receipt requested, postage prepaid, (c) by an overnight delivery by a service such as Federal Express or Express Mail from which written confirmation of overnight delivery is available, or (d) by facsimile with a confirmation copy by regular United States mail, postage prepaid, addressed to the other party at its respective address stated below the signature of such party or at such other address as such party shall from time to time designate in writing to the other party, and shall be effective from the date of mailing. 13. This Escrow Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective successors and assigns. No rights or obligations of Escrow Agent under this Escrow Agreement may be assigned without the prior written consent of Lessor. 14. This Escrow Agreement shall be governed by and construed in accordance with the laws in the state of the Escrow Agent's location. This Escrow Agreement constitutes the entire Agreement between the parties hereto with respect to the subject matter hereof, and no waiver, consent, modification or change of terms hereof shall bind any party unless in writing signed by all parties. 15. This Escrow Agreement and any written direction may be executed in two or more counterparts, which when so executed shall constitute one and the same agreement or direction. IN WITNESS WHEREOF, the parties hereto have caused this Escrow Agreement to be duly executed as of the day and year first above set forth. U.S. Bancorp Government Leasing and Finance, Inc., as Lessor By: Name: Title: Address: 13010 SW 68"' Parkway, Suite 100 Portland, OR 97223 County of Harnett, as Lessee By: Name: Title: Address: P.O. Box 760 Lillinoton, NC 27546 U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent By: Name: Title: Address: U.S. Bank National Association 5540 Center View Dr., Ste 200 Raleigh, NC 27606-3386 EXHIBIT 1 TO ESCROW AGREEMENT INVESTMENT DISCLOSURE AND AUTHORIZATION LETTER U.S. Bancorp and U.S. Bank TRADE SERVICES Proprietary and Non-Proprietary Products U.S. Bancorp offers investment trading services to Corporate Trust customers ("Accounts") through its fixed income trading unit (U.S. Bank, NA) or an affiliated broker dealer (collectively the "Money Center"). Such trades may include: fixed income U.S. Government securities; U.S. Government Agency securities; negotiable or non-negotiable certificates of deposit; unsecured commercial paper; bank notes; medium term notes; municipal bonds; corporate bonds; and variable rate demand notes where U.S. Bancorp, its affiliates or an associated party is the issuer or product provider, e.g., U.S. Bank Notes and U.S. Bancorp Medium Term Notes (collectively "Proprietary Assets"). Descriptions of Proprietary Assets are set forth in Exhibit A attached hereto. Additional specific information on assets available through the Money Center, including credit ratings, may be obtained upon request to your Account Manager. Corporate Trust Services Customers using the Money Center receive competitive market pricing on directed asset transactions as follows: Non-Proprietary Assets. Purchasers are charged a spread or "mark" which is the difference between the Money Center's purchase price for the asset and the sale price to an Account. The mark on non-proprietary assets is typically less than .50% of the securities' par value, and in no case will it exceed 2% of the securities' par value, calculated on an annualized basis. Proprietary Assets. US Bank receives a financial benefit from the sale of Proprietary Assets. The yield for Proprietary Assets is set as a spread below U.S. Bank's wholesale funding cost, i.e., the cost of raising funds from other, non-retail sources. Generally, the resulting financial benefit to U.S. Bank will be equivalent to .25% to .75% of the product's par value calculated on an annualized basis. By signing this form and providing investment directions to U.S. Bank, you acknowledge that you have reviewed investment alternatives and you approve asset purchases using the Money Center, including purchases of Proprietary Assets, and U.S. Bank's or an affiliate's receipt of compensation (as described above) resulting from such directed trades. Unless specifically waived by written agreement, you will receive written confirmation notices of all Money Center Account trades from U.S. Bank. You will be provided prior written notice of any changes in the Money Center pricing structure described above. As a directing Account party you control the initiation and terms of investments selected for your Account. At any time, you may direct that the purchase of an asset be executed through an independent broker. Further, you may revoke this Investment Disclosure and Authorization Letter at any time upon written notice to U.S. Bank. If you desire to engage U.S. Bank to provide trading services to your Account, including the purchase of Proprietary Assets for your Account, and you approve of U.S. Bank's or its affiliates' compensation in connection with such transactions, all as described herein, please sign below and return this Letter. Authorization will continue to be required directing U.S. Bank to buy or sell securities as required by the Account's governing documents. In the absence of specific written direction to the contrary regarding any future directed investments for your Account, U.S. Bank will utilize the Money Center for placing and executing directed investments for your Account. ACKNOWLEDGED AND APPROVED: County of Harnett Company Name Trust Account Number-includes existing and future sub-accounts unless otherwise designated. Signature of Authorized Directing Party Title Date EXHIBIT A U.S. BANK PROPRIETARY PRODUCTS Certificates of Deposit. Certificates of deposit may be negotiable or non-negotiable, i.e., required to be held by the account until their deposit maturity date. Certificates evidence the general deposit liability of U.S. Bank to hold for a fixed period the funds deposited with it for, and pay interest to, the deposit owner at a rate as in effect for the deposit period on the date the certificate of deposit is issued. Interest rates paid on such certificates of deposit are set at the time they are issued at levels equal to current rates for comparable deposits established by U.S. Bank from time to time. Certificates of deposit are FDIC insured per depositor, as determined under FDIC regulations, up to applicable FDIC limits. Eurodollar Deposits. Eurodollar deposits evidence the general liability of U.S. Bank to hold for a fixed period the funds deposited with it for, and pay interest to, the deposit owner at a rate as in effect for the deposit period on the date the certificate of deposit is made. Such deposits are established and maintained at the Cayman Island foreign branch of U.S. Bank. Interest rates paid on such Eurodollar deposits are set at the time they are issued at levels equal to current rates for comparable deposits established by U.S. Bank from time to time. As deposits maintained outside the United States, the Eurodollar deposits could be subject to law changes or other actions by the government of the country where the deposits are maintained. Eurodollar deposits are not FDIC insured or guaranteed by any governmental agency or authority, or by U.S. Bank. - Repurchase Agreements. Repurchase agreements are contracts with U.S. Bank for the purchase of U.S. government or other debt securities at a specified price and U.S. Bank's obligation to repurchase those securities back at a higher price after a specified period, or at the demand of the investing party. The differences in the purchase and repurchase price provides earnings to the trust account and both prices are established at market competitive levels at the commencement of the transaction at the earning rate for non-collateralized U.S. Bank obligations less the collateral value costs based on market levels for the type and amount of collateral. The repurchase price paid on such repurchase agreements are set at the time they are issued at levels equal to current rates for comparable repurchase agreements established by U.S. Bank from time to time. The repurchase agreements are not FDIC insured or guaranteed by any governmental agency or authority, or by U.S. Bank. Bankers' Acceptances. Bankers' Acceptances are a method of financing that a bank may provide to its customers to support the import, export or domestic shipment of goods or to finance the storage of properly titled goods. A bankers' acceptance is often issued in conjunction with a Letter of Credit. A U.S. Bank bankers' acceptance is purchased at a discount to its face value and redeemed on the maturity date at the face value. The bankers' acceptances are not FDIC insured or guaranteed by any governmental agency or authority. U.S. Bank or U.S. Bancorp Term or Daily Liquid Commercial Paper. Interest rates paid on fixed-income unsecured term commercial paper securities issued by U.S. Bank, or its parent corporation, U.S. Bancorp, are set at the time they are issued at levels comparable to current rates for commercial paper securities of similar terms, security and market demand as indicated by Bloomberg on-line quotations of such rates. Interest rates paid on the daily liquid (open-ended) unsecured commercial paper issued by U.S. Bank is calculated on the daily balance method (actual/360), accrued daily and paid monthly. Daily liquid commercial paper interest rates are determined at U.S. Bank's discretion as a daily variable rate priced based on nationally recognized indexes including the Target Fed Funds (TFF) index less a funding spread or 1 month LIBOR less a funding spread. Reset and payment date of LIBOR priced products will be the first of each month. Commercial paper securities are not FDIC insured or guaranteed by any governmental agency or authority, or by U.S. Bank. If you determine to discontinue investment of your trust account funds in an investment described above, you can direct U.S. Bank as account trustee to sell such investment and purchase different securities. U.S. Bank does not have a duty nor will it undertake any duty to provide investment advice to you. Investment advice, if needed, should be obtained from your financial advisor. 1 1 Revised 2/15/11 U.S. BANK NATIONAL ASSOCIATION DAILY LIQUID COMMERCIAL PAPER AUTHORIZATION FORM The daily liquid (open-ended) U.S. Bank commercial paper investment is an unsecured promissory note issued by U.S. Bank National Association which meets the liquidity needs of U.S. Bank's Corporate Trust Services customers. U.S. Bank uses the daily balance method to calculate interest on this product (actual/360). Interest is accrued daily and credited monthly to the trust account. The owner of the accounts is U.S. Bank as agent for its trust customers. Interest rates are determined at U.S. Bank's discretion as a daily variable rate priced based on nationally recognized indexes including the Target Fed Funds (TFF) index less a funding spread or 1 month LIBOR less a funding spread. Reset and payment date of LIBOR priced products will be the first of each month. U.S. Bank daily liquid (open-ended) commercial paper is not FDIC insured or guaranteed by any government agency or authority, or by U.S. Bank. US Bank does not have a duty nor will it undertake any duty to provide investment advice to you. Investment advice, if needed, should be obtained from your financial advisor. For current interest rate information, please contact your account manager. AUTOMATIC AUTHORIZATION Based upon your prior review of investment alternatives, in the absence of specific written direction to the contrary, U.S. Bank is hereby directed to invest and reinvest proceeds and other available moneys on your behalf in a U.S. Bank Open-Ended Commercial Paper. The U.S. Bank Commercial Paper is a permitted investment under the operative documents and this authorization is the permanent direction for investment of the moneys until notified in writing of alternate instructions. The Account Number listed is intended to include any and all existing and future sub-accounts, unless specific written instructions are given excluding such accounts. COUNTY OF HARNETT Company Name Trust Account Number-includes existing and future sub-accounts unless otherwise designated. Revised effective 9/15/10 Signature of Authorized Directing Party Title Date EXHIBIT 2 Schedule of Fees for Services as Escrow Agent For County of Harnett Equipment Lease Purchase Escrow CTS01010A Acceptance Fee The acceptance fee includes the administrative review of WAIVED documents, initial set-up of the account, and other reasonably required services up to and including the closing. This is a one-time, non-refundable fee, payable at closing. CTS04460 Escrow Agent Annual fee for the standard escrow agent services WAIVED associated with the administration of the account. Administration fees are payable in advance. Direct Out of Pocket Expenses Reimbursement of expenses associated with the performance of our duties, including but not limited to publications, legal counsel after the initial close, travel expenses and filing fees. Extraordinary Services Extraordinary Services are duties or responsibilities of an unusual nature, including termination, but not provided for in the governing documents or otherwise set forth in this schedule. A reasonable charge will be assessed based on the nature of the services and the responsibility involved. At our option, these charges will be billed at a flat fee or at our hourly rate then in effect. At Cost Account approval is subject to review and qualification. Fees are subject to change at our discretion and upon written notice. Fees paid in advance will not be prorated. The fees set forth above and any subsequent modifications thereof are part of your agreement. Finalization of the transaction constitutes agreement to the above fee schedule, including agreement to any subsequent changes upon proper written notice. In the event your transaction is not finalized, any related out-of-pocket expenses will be billed to you directly. Absent your written instructions to sweep or otherwise invest, all sums in your account will remain uninvested and no accrued interest or other compensation will be credited to the account. Payment of fees constitutes acceptance of the terms and conditions set forth. IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT: To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account. For a non-individual person such as a business entity, a charity, a Trust or other legal entity we will ask for documentation to verify its formation and existence as a legal entity. We may also ask to see financial statements, licenses, identification and authorization documents from individuals claiming authority to represent the entity or other relevant documentation. EXHIBIT 3 REQUISITION REQUEST The Escrow Agent is hereby requested to pay from the Escrow Fund established and maintained under that certain Escrow Agreement dated as of September 3, 2013 (the "Escrow Agreement") by and among U.S. Bancorp Government Leasing and Finance, Inc. (the "Lessor"), County of Harnett (the "Lessee'), and U.S. Bank National Association (the "Escrow Agent"), the amount set forth below to the named payee(s). The amount shown is due and payable under a purchase order or contract (or has been paid by and not previously reimbursed to Lessee) with respect to equipment being financed under that certain Master Tax-Exempt Lease Purchase Agreement dated as of September 3, 2013 (the "Master Agreement') and Property Schedule No. 1 thereto dated September 3, 2013 (the "Schedule" and, together with the terms and conditions of the Master Agreement incorporated therein, the "Master Agreement'), by and between the Lessor and the Lessee, and has not formed the basis of any prior requisition request. PAYEE AMOUNT INVOICE No. EQUIPMENT Total requisition amount$ _____ _ The undersigned, as Lessee under the Master Agreement, hereby certifies: 1. The items of the Equipment being acquired with the proceeds of this disbursement have been delivered and installed at the location(s) contemplated by the Master Agreement. The Lessee has conducted such inspection and/or testing of the Equipment being acquired with the proceeds of this disbursement as it deems necessary and appropriate, and such Equipment has been accepted by Lessee. 2. The costs of the Equipment to be paid from the proceeds of this disbursement have been properly incurred, are a proper charge against the Escrow Fund and have not been the basis of any previous disbursement. 3. No part of the disbursement requested hereby will be used to pay for materials not yet incorporated into the Equipment or for services not yet performed in connection therewith. 4. The Equipment is covered by insurance in the types and amounts required by the Agreement. 5. No Event of Default or Event of Nonappropriation (if applicable), as each such term is defined in the Master Agreement, and no event which with the giving of notice or lapse of time, or both, would become such an Event of Default or Event of Nonappropriation has occurred and is continuing on the date hereof. 6. If Lessee paid an invoice prior to the commencement date of the Master Agreement, and is requesting reimbursement for such payment, Lessee has satisfied the requirements for reimbursement set forth in Treas. Reg. §1.150-2. Request Date: Lessor: U.S. Bancorp Government Leasing and Finance, Inc. By: Name: Title: Lessee: County of Harnett By: Name: Title: Exhibit 4 Acceptance Certificate U.S. Bancorp Government Leasing and Finance, Inc. 13010 SW 68th Parkway, Suite 100 Portland, OR 97223 Re: Property Schedule No.1 to Master Tax-Exempt Lease/Purchase Agreement between U.S. Bancorp Government Leasing and Finance, Inc. and County of Harnett Ladies and Gentlemen: In accordance with the above-referenced Master Tax-Exempt Lease/Purchase Agreement (the "Master Agreement"), the undersigned ("Lessee") hereby certifies and represents to, and agrees with, U.S. Bancorp Government Leasing and Finance, Inc. ("Lessor"), as follows: (1) The Property, as such terms are defined in the above-referenced Property Schedule, has been acquired, made, delivered, installed and accepted on the date indicated below. (2) Lessee has conducted such inspection and/or testing of the Property as it deems necessary and appropriate and hereby acknowledges that it accepts the Property for all purposes. (3) No event or condition that constitutes, or with notice or lapse of time, or both, would constitute, an Event of Default or a Nonappropriation Event (as such terms are defined in the Master Agreement) exists at the date hereof. Acceptance Date: -------------- Lessee: County of Harnett By: Name: Title: September 3, 2013 County of Harnett P.O. Box 760 Lillington, NC 27546 Exhibit 6 Class Action Negative Consent Letter RE: USBGLF/County of Harnett--Class Action Litigation Claims Dear Kimberly A. Honeycutt: U.S. Bank National Association ("U.S. Bank") has established its policies and procedures relative to class action litigation claims filed on behalf of its clients' accounts. This policy may impact future claims filed by U.S. Bank on behalf of the above-referenced account. Listed below are the policies regarding class action litigation claims: 1. U.S. Bank will file class action litigation claims, at no charge, on behalf of open, eligible agency or custody accounts upon receipt of proper documented authorization. This notice, with your ability to opt out as further described below, constitutes such documented authorization. 2. U.S. Bank will not file claims for agency or custody accounts that were open during the class action period but were closed prior to receipt of any notice of the class action litigation. 3. Assuming requisite information is provided by the payor to identify the applicable account, settlement proceeds of the class action litigation will be posted within a reasonable time following receipt of such proceeds to the entitled accounts that are open at such time. If entitled accounts are closed prior to distribution and receipt of settlement proceeds, they will be remitted to entitled beneficiaries or successors of the account net of any research and filing fees. Proceeds, less any research and filing fees, will be escheated if the entitled beneficiaries or successors of the account cannot be identified /located. If you wish U.S. Bank to continue to file class action litigation proofs of claim on behalf of your account, you do not need to take any further action. However, if you do not wish U.S. Bank to file class action proofs of claim on behalf of your account, you may notify us of this election by returning this letter with your signature and date provided below within 30 days or by filing a separate authorization letter with your Account Manager by the same date. The authorization and understanding contained in this communication constitutes an amendment of any applicable provisions of the account document for the above-referenced account. If you have any questions, please contact me at the below number. Sincerely, Shawna Hale Vice President 919-424-3944 0 No, U.S. Bank is not authorized to file class action litigation proofs of claim on behalf of the above-referenced account(s). By making this election, I acknowledge that U.S. Bank is not responsible for forwarding notices received on class action or litigation claims. Authorized Signer Date Form W-9 Request for Taxpayer Give Form to the requester. Do not (Rev. December 2011) Identification Number and Certification Department of the Treasury send to the IRS. Internal Revenue Service Name (as shown on your income tax return) C\i Business name/disregarded entity name, if different from above (J) 0> ro a. Check appropriate box for federal tax classification: c: 0 0 Individual/sole proprietor D C Corporation D S Corporation D Partnership D Trust/estate Q) IJI c.§ D Exempt payee ~:;:: 0 Limited liability company. Enter the tax classification (C=C corporation, S=S corporation, P=partnership) ~ "" 0 0 2 --------------------------------........ c: Ul ·-c: 0 ""-Other (see instructions) ~ c. 0 <;:: Address (number, street, and apt. or suite no.) Requester's name and address (optional) ·c:; Q) c. (/) City, state, and ZIP code (J) Q) en List account number(s) here (optional) Ill :F. iilllll Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. The TIN provided must match the name given on the "Name" line I Social security number I . . . . . . . . . . to avoid backup Withholding. For mdJVJduals, th1s 1s your soc1al secunty number (SSN). However, for a resident alien, sole proprietor, or disregarded entity, see the Part I instructions on page 3. For other entities, it is your employer identification number (EIN). If you do not have a number, see How to get a TIN on page 3. ITlJ -[0 -1 I I I I Note. If the account is in more than one name, see the chart on page 4 for guidelines on whose number to enter. I Employer identification number I [0-1 1111111 1@111 Certification Under penalties of perjury, I certify that: 1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me), and 2. 1 am not subject to backup withholding because: (a) I am exempt from backup withholding, or (b) I have not been notified by the Internal Revenue Service (IRS) that I am subject to backup withholding as a result of a failure to report all interest or dividends, or (c) the IRS has notified me that 1 am no longer subject to backup withholding, and 3. 1 am a U.S. citizen or other U.S. person (defined below). Certification instructions. You must cross out item 2 above if you have been notified by the IRS that you are currently subject to backup withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions, item 2 does not apply. For mortgage interest paid, acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement (IRA), and generally, payments other than interest and dividends, you are not required to sign the certification, but you must provide your correct TIN. See the instructions on page 4. Sign Signature of Here u.s. person ~ Date~ General Instructions Section references are to the Internal Revenue Code unless otherwise noted. Purpose of Form A person who is required to file an information return with the IRS must obtain your correct taxpayer identification number (TIN) to report, for example, income paid to you, real estate transactions, mortgage interest you paid, acquisition or abandonment of secured property, cancellation of debt, or contributions you made to an IRA. Use Form W-9 only if you are a U.S. person (including a resident alien), to provide your correct TIN to the person requesting it (the requester) and, when applicable, to: 1. Certify that the TIN you are giving is correct (or you are waiting for a number to be issued), 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. If applicable, you are also certifying that as a U.S. person, your allocable share of any partnership income from a U.S. trade or business is not subject to the withholding tax on foreign partners' share of effectively connected income. Note. If a requester gives you a form other than Form W-9 to request your TIN, you must use the requester's form if it is substantially similar to this Form W-9. Definition of a U.S. person. For federal tax purposes, you are considered a U.S. person if you are: • An individual who is a U.S. citizen or U.S. resident alien, • A partnership, corporation, company, or association created or organized in the United States or under the laws of the United States, • An estate (other than a foreign estate), or • A domestic trust (as defined in Regulations section 301. 7701-7). Special rules for partnerships. Partnerships that conduct a trade or business in the United States are generally required to pay a withholding tax on any foreign partners' share of income from such business. Further, in certain cases where a Form W-9 has not been received, a partnership is required to presume that a partner is a foreign person, and pay the withholding tax. Therefore, if you are a U.S. person that is a partner in a partnership conducting a trade or business in the United States, provide Form W-9 to the partnership to establish your U.S. status and avoid withholding on your share of partnership income. Cat. No. 10231X Form W-9 (Rev. 12-2011) Form W-9 (Rev. 12-2011) The person who gives Form W-9 to the partnership for purposes of establishing its U.S. status and avoiding withholding on its allocable share of net income from the partnership conducting a trade or business in the United States is in the following cases: • The U.S. owner of a disregarded entity and not the entity, • The U.S. grantor or other owner of a grantor trust and not the trust, and • The U.S. trust (other than a grantor trust) and not the beneficiaries of the trust. Foreign person. If you are a foreign person, do not use Form W-9. Instead, use the appropriate Form W-8 (see Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Entities). Nonresident alien who becomes a resident alien. Generally, only a nonresident alien individual may use the terms of a tax treaty to reduce or eliminate U.S. tax on certain types of income. However, most tax treaties contain a provision known as a "saving clause." Exceptions specified in the saving clause may permit an exemption from tax to continue for certain types of income even after the payee has otherwise become a U.S. resident alien for tax purposes. If you are a U.S. resident alien who is relying on an exception contained in the saving clause of a tax treaty to claim an exemption from U.S. tax on certain types of income, you must attach a statement to Form W-9 that specifies the following five items: 1. The treaty country. Generally, this must be the same treaty under which you claimed exemption from tax as a nonresident alien. 2. The treaty article addressing the income. 3. The article number (or location) in the tax treaty that contains the saving clause and its exceptions. 4. The type and amount of income that qualifies for the exemption from tax. 5. Sufficient facts to justify the exemption from tax under the terms of the treaty article. Example. Article 20 of the U.S.-China income tax treaty allows an exemption from tax for scholarship income received by a Chinese student temporarily present in the United States. Under U.S. law, this student will become a resident alien for tax purposes if his or her stay in the United States exceeds 5 calendar years. However, paragraph 2 of the first Protocol to the U.S.-China treaty (dated April 3D, 1984) allows the provisions of Article 20 to continue to apply even after the Chinese student becomes a resident alien of the United States. A Chinese student who qualifies for this exception (under paragraph 2 of the first protocol) and is relying on this exception to claim an exemption from tax on his or her scholarship or fellowship income would attach to Form W-9 a statement that includes the information described above to support that exemption. If you are a nonresident alien or a foreign entity not subject to backup withholding, give the requester the appropriate completed Form W-8. What is backup withholding? Persons making certain payments to you must under certain conditions withhold and pay to the IRS a percentage of such payments. This is called "backup withholding." Payments that may be subject to backup withholding include interest, tax-exempt interest, dividends, broker and barter exchange transactions, rents, royalties, nonemployee pay, and certain payments from fishing boat operators. Real estate transactions are not subject to backup withholding. You will not be subject to backup withholding on payments you receive if you give the requester your correct TIN, make the proper certifications, and report all your taxable interest and dividends on your tax return. Payments you receive will be subject to backup withholding if: 1. You do not furnish your TIN to the requester, 2. You do not certify your TIN when required (see the Part II instructions on page 3 for details), 3. The IRS tells the requester that you furnished an incorrect TIN, 4. The IRS tells you that you are subject to backup withholding because you did not report all your interest and dividends on your tax return (for reportable interest and dividends only), or 5. You do not certify to the requester that you are not subject to backup withholding under 4 above (for reportable interest and dividend accounts opened after 1983 only). Page2 Certain payees and payments are exempt from backup withholding. See the instructions below and the separate Instructions for the Requester of Form W-9. Also see Special rules for partnerships on page 1. Updating Your Information You must provide updated information to any person to whom you claimed to be an exempt payee if you are no longer an exempt payee and anticipate receiving reportable payments in the future from this person. For example, you may need to provide updated information if you are a C corporation that elects to be an S corporation, or if you no longer are tax exempt. In addition, you must furnish a new Form W-9 if the name or TIN changes for the account, for example, if the grantor of a grantor trust dies. Penalties Failure to furnish TIN. If you fail to furnish your correct TIN to a requester, you are subject to a penalty of $50 for each such failure unless your failure is due to reasonable cause and not to willful neglect. Civil penalty for false information with respect to withholding. If you make a false statement with no reasonable basis that results in no backup withholding, you are subject to a $500 penalty. Criminal penalty for falsifying information. Willfully falsifying certifications or affirmations may subject you to criminal penalties including fines and/or imprisonment. Misuse of TINs. If the requester discloses or uses TINs in violation of federal law, the requester may be subject to civil and criminal penalties. Specific Instructions Name If you are an individual, you must generally enter the name shown on your income tax return. However, if you have changed your last name, for instance, due to marriage without informing the Social Security Administration of the name change, enter your first name, the last name shown on your social security card, and your new last name. If the account is in joint names, list first, and then circle, the name of the person or entity whose number you entered in Part I of the form. Sole proprietor. Enter your individual name as shown on your income tax return on the "Name" line. You may enter your business, trade, or "doing business as (DBA)" name on the "Business name/disregarded entity name" line. Partnership, C Corporation, or S Corporation. Enter the entity's name on the "Name" line and any business, trade, or "doing business as (DBA) name" on the "Business name/disregarded entity name" line. Disregarded entity. Enter the owner's name on the "Name" line. The name of the entity entered on the "Name" line should never be a disregarded entity. The name on the "Name" line must be the name shown on the income tax return on which the income will be reported. For example, if a foreign LLC that is treated as a disregarded entity for U.S. federal tax purposes has a domestic owner, the domestic owner's name is required to be provided on the "Name" line. If the direct owner of the entity is also a disregarded entity, enter the first owner that is not disregarded for federal tax purposes. Enter the disregarded entity's name on the "Business name/disregarded entity name" line. If the owner of the disregarded entity is a foreign person, you must complete an appropriate Form W-8. Note. Check the appropriate box for the federal tax classification of the person whose name is entered on the "Name" line (Individual/sole proprietor, Partnership, C Corporation, S Corporation, TrusVestate). Limited Liability Company (LLC). If the person identified on the "Name" line is an LLC, check the "Limited liability company" box only and enter the appropriate code for the tax classification in the space provided. If you are an LLC that is treated as a partnership for federal tax purposes, enter "P" for partnership. If you are an LLC that has filed a Form 8832 or a Form 2553 to be taxed as a corporation, enter "C" for C corporation or "S" for S corporation. If you are an LLC that is disregarded as an entity separate from its owner under Regulation section 301.7701-3 (except for employment and excise tax), do not check the LLC box unless the owner of the LLC (required to be identified on the "Name" line) is another LLC that is not disregarded for federal tax purposes. If the LLC is disregarded as an entity separate from its owner, enter the appropriate tax classification of the owner identified on the "Name" line. Form W-9 (Rev. 12-2011) Other entities. Enter your business name as shown on required federal tax documents on the "Name" line. This name should match the name shown on the charter or other legal document creating the entity. You may enter any business, trade, or DBA name on the "Business name/ disregarded entity name" line. Exempt Payee If you are exempt from backup withholding, enter your name as described above and check the appropriate box for your status, then check the "Exempt payee" box in the line following the "Business name/ disregarded entity name," sign and date the form. Generally, individuals (including sole proprietors) are not exempt from backup withholding. Corporations are exempt from backup withholding for certain payments, such as interest and dividends. Note. If you are exempt from backup withholding, you should still complete this form to avoid possible erroneous backup withholding. The following payees are exempt from backup withholding: 1. An organization exempt from tax under section 501 (a), any IRA, or a custodial account under section 403(b)(7) if the account satisfies the requirements of section 401 (f)(2), 2. The United States or any of its agencies or instrumentalities, 3. A state, the District of Columbia, a possession of the United States, or any of their political subdivisions or instrumentalities, 4. A foreign government or any of its political subdivisions, agencies, or instrumentalities, or 5. An international organization or any of its agencies or instrumentalities. Other payees that may be exempt from backup withholding include: 6. A corporation, 7. A foreign central bank of issue, 8. A dealer in securities or commodities required to register in the United States, the District of Columbia, or a possession of the United States, 9. A futures commission merchant registered with the Commodity Futures Trading Commission, 1 0. A real estate investment trust, 11. An entity registered at all times during the tax year under the Investment Company Act of 1940, 12. A common trust fund operated by a bank under section 584(a), 13. A financial institution, 14. A middleman known in the investment community as a nominee or custodian, or 15. A trust exempt from tax under section 664 or described in section 4947. The following chart shows types of payments that may be exempt from backup withholding. The chart applies to the exempt payees listed above, 1 through 15. IF the payment is for ... Interest and dividend payments Broker transactions Barter exchange transactions and patronage dividends THEN the payment is exempt for ... All exempt payees except for 9 Exempt payees 1 through 5 and 7 through 13. Also, C corporations. Exempt payees 1 through 5 Payments over $600 required to be Generally, exempt payees reported and direct sales over 1 through 7 2 $5,000 1 1 See Form 1099-MISC, Miscellaneous Income, and its instructions. 2 However, the following payments made to a corporation and reportable on Form 1 099-MISC are not exempt from backup withholding: medical and health care payments, attorneys' fees, gross proceeds paid to an attorney, and payments for services paid by a federal executive agency. Page3 Part I. Taxpayer Identification Number (TIN) Enter your TIN in the appropriate box. If you are a resident alien and you do not have and are not eligible to get an SSN, your TIN is your IRS individual taxpayer identification number (ITIN). Enter it in the social security number box. If you do not have an ITIN, see How to get a TIN below. If you are a sole proprietor and you have an EIN, you may enter either your SSN or EIN. However, the IRS prefers that you use your SSN. If you are a single-member LLC that is disregarded as an entity separate from its owner (see Limited Liability Company (LLC) on page 2), enter the owner's SSN (or EIN, if the owner has one). Do not enter the disregarded entity's EIN. If the LLC is classified as a corporation or partnership, enter the entity's EIN. Note. See the chart on page 4 for further clarification of name and TIN combinations. How to get a TIN. If you do not have a TIN, apply for one immediately. To apply for an SSN, get Form SS-5, Application for a Social Security Card, from your local Social Security Administration office or get this form online at www.ssa.gov. You may also get this form by calling 1-800-772-1213. Use Form W-7, Application for IRS Individual Taxpayer Identification Number, to apply for an ITIN, or Form SS-4, Application for Employer Identification Number, to apply for an EIN. You can apply for an EIN online by accessing the IRS website at www.irs.gov/businesses and clicking on Employer Identification Number (EIN) under Starting a Business. You can get Forms W-7 and SS-4 from the IRS by visiting IRS.gov or by calling 1-800-TAX-FORM (1-800-829-3676). If you are asked to complete Form W-9 but do not have a TIN, write "Applied For" in the space for the TIN, sign and date the form, and give it to the requester. For interest and dividend payments, and certain payments made with respect to readily tradable instruments, generally you will have 60 days to get a TIN and give it to the requester before you are subject to backup withholding on payments. The 60-day rule does not apply to other types of payments. You will be subject to backup withholding on all such payments until you provide your TIN to the requester. Note. Entering "Applied For" means that you have already applied for a TIN or that you intend to apply for one soon. Caution: A disregarded domestic entity that has a foreign owner must use the appropriate Form W-8. Part II. Certification To establish to the withholding agent that you are a U.S. person, or resident alien, sign Form W-9. You may be requested to sign by the withholding agent even if item 1, below, and items 4 and 5 on page 4 indicate otherwise. For a joint account, only the person whose TIN is shown in Part I should sign (when required). In the case of a disregarded entity, the person identified on the "Name" line must sign. Exempt payees, see Exempt Payee on page 3. Signature requirements. Complete the certification as indicated in items 1 through 3, below, and items 4 and 5 on page 4. 1. Interest, dividend, and barter exchange accounts opened before 1984 and broker accounts considered active during 1983. You must give your correct TIN, but you do not have to sign the certification. 2.1nterest, dividend, broker, and barter exchange accounts opened after 1983 and broker accounts considered inactive during 1983. You must sign the certification or backup withholding will apply. If you are subject to backup withholding and you are merely providing your correct TIN to the requester, you must cross out item 2 in the certification before signing the form. 3. Real estate transactions. You must sign the certification. You may cross out item 2 of the certification. Form W-9 (Rev. 12-2011) 4. Other payments. You must give your correct TIN, but you do not have to sign the certification unless you have been notified that you have previously given an incorrect TIN. "Other payments" include payments made in the course of the requester's trade or business for rents, royalties, goods (other than bills for merchandise), medical and health care services (including payments to corporations), payments to a nonemployee for services, payments to certain fishing boat crew members and fishermen, and gross proceeds paid to attorneys (including payments to corporations). 5. Mortgage interest paid by you, acquisition or abandonment of secured property, cancellation of debt, qualified tuition program payments (under section 529), IRA, Coverdell ESA, Archer MSA or HSA contributions or distributions, and pension distributions. You must give your correct TIN, but you do not have to sign the certification. What Name and Number To Give the Requester For this type of account: 1. Individual 2. Two or more individuals Ooint account) 3. Custodian account of a minor (Uniform Gift to Minors Act) 4. a. The usual revocable savings trust (grantor is also trustee) b. So-called trust account that is not a legal or valid trust under state law 5. Sole proprietorship or disregarded entity owned by an individual 6. Grantor trust filing under Optional Form 1 099 Filing Method 1 (see Regulation section 1.671-4(b)(2)(i)(A)) For this type of account: 7. Disregarded entity not owned by an individual 8. A valid trust, estate, or pension trust 9. Corporation or LLC electing corporate status on Form 8832 or Form 2553 10. Association, club, religious, charitable, educational, or other tax-exempt organization 11. Partnership or multi-member LLC 12. A broker or registered nominee 13. Account with the Department of Agriculture in the name of a public entity (such as a state or local government, school district, or prison) that receives agricultural program payments 14. Grantor trust filing under the Form 1 041 Filing Method or the Optional Form 1099 Filing Method 2 (see Regulation section 1.671-4(b)(2)(i)(B)) Give name and SSN of: The individual The actual owner of the account or, if combined funds, the first individual on the account The minor' The grantor-trustee ' The actual owner ' The owner' The grantor• Give name and EIN of: The owner Legal entity' The corporation The organization The partnership The broker or nominee The public entity The trust 1 List first and circle the name of the person whose number you furnish. If only one person on a joint account has an SSN, that person's number must be furnished. 2 Circle the minor's name and furnish the minor's SSN. 3 You must show your individual name and you may also enter your business or "DBA" name on the "Business name/disregarded entity" name line. You may use either your SSN or EIN (if you have one), but the IRS encourages you to use your SSN. " List first and circle the name of the trust, estate, or pension trust. (Do not furnish the TIN of the personal representative or trustee unless the legal entity itself is not designated in the account title.) Also see Special rules for partnerships on page 1. *Note. Grantor also must provide a Form W-9 to trustee of trust. Privacy Act Notice Page4 Note. If no name is circled when more than one name is listed, the number will be considered to be that of the first name listed. Secure Your Tax Records from Identity Theft Identity theft occurs when someone uses your personal information such as your name, social security number (SSN), or other identifying information, without your permission, to commit fraud or other crimes. An identity thief may use your SSN to get a job or may file a tax return using your SSN to receive a refund. To reduce your risk: • Protect your SSN, • Ensure your employer is protecting your SSN, and • Be careful when choosing a tax preparer. If your tax records are affected by identity theft and you receive a notice from the IRS, respond right away to the name and phone number printed on the IRS notice or letter. If your tax records are not currently affected by identity theft but you think you are at risk due to a lost or stolen purse or wallet, questionable credit card activity or credit report, contact the IRS Identity Theft Hotline at 1-800-908-4490 or submit Form 14039. For more information, see Publication 4535, Identity Theft Prevention and Victim Assistance. Victims of identity theft who are experiencing economic harm or a system problem, or are seeking help in resolving tax problems that have not been resolved through normal channels, may be eligible for Taxpayer Advocate Service (TAS) assistance. You can reach TAS by calling theTAS toll-free case intake line at 1-877-777-4778 or TIY!TDD 1-800-829-4059. Protect yourself from suspicious emails or phishing schemes. Phishing is the creation and use of email and websites designed to mimic legitimate business emails and websites. The most common act is sending an email to a user falsely claiming to be an established legitimate enterprise in an attempt to scam the user into surrendering private information that will be used for identity theft. The IRS does not initiate contacts with taxpayers via emails. Also, the IRS does not request personal detailed information through email or ask taxpayers for the PIN numbers, passwords, or similar secret access information for their credit card, bank, or other financial accounts. If you receive an unsolicited email claiming to be from the IRS, forward this message to phishing@irs.gov. You may also report misuse of the IRS name, logo, or other IRS property to the Treasury Inspector General for Tax Administration at 1-800-366-4484. You can forward suspicious emails to the Federal Trade Commission at: spam@uce.gov or contact them at www.ftc.gov/idtheft or 1-877-IDTHEFT (1-877 -438-4338). Visit IRS.gov to learn more about identity theft and how to reduce your risk. Section 6109 of the Internal Revenue Code requires you to provide your correct TIN to persons (including federal agencies) who are required to file information returns with the IRS to report interest, dividends, or certain other income paid to you; mortgage interest you paid; the acquisition or abandonment of secured property; the cancellation of debt; or contributions you made to an IRA, Archer MSA, or HSA. The person collecting this form uses the information on the fomn to file infomnation returns with the IRS, reporting the above information. Routine uses of this information include giving it to the Department of Justice for civil and criminal litigation and to cities, states, the District of Columbia, and U.S. possessions for use in administering their laws. The information also may be disclosed to other countries under a treaty, to federal and state agencies to enforce civil and criminal laws, or to federal law enforcement and intelligence agencies to combat terrorism. You must provide your TIN whether or not you are required to file a tax return. Under section 3406, payers must generally withhold a percentage of taxable interest, dividend, and certain other payments to a payee who does not give a TIN to the payer. Certain penalties may also apply for providing false or fraudulent information. bancorp. FIRST PAYMENT INVOICE Government Leasing and Finance, Inc. PLEASE RETURN THIS PORTION WITH YOUR PAYMENT SCHEDULE NUMBER: 077-0019215-001 DUE DATE: October 3, 2013 CREATE DATE: August 15, 2013 AMOUNT DUE: $13,046.35 County of Harnett P.O. Box 760 Lillington, NC 27546 U.S. Bancorp Government Leasing and Finance, Inc. ATTN: Myra Aksamit 950 1 ih Street, 7frl Floor Attention: Accounts Payable Dept. Customer Phone Number: 910-814-6093 Denver, CO 80202 >»>»» PLEASE RETAIN THIS PORTION FOR YOUR RECORDS ««<<<< All payments MUST be sent to this address: U.S. Bancorp Government Leasing and Finance, Inc. PO BOX 959067 ST. LOUIS, MO 63179-9067 U.S. Bancorp Government Leasing and Finance, Inc. ATTN: Myra Aksamit 950 1ih Street, 7frl Floor ACCOUNT: 077-0019215-001 AMOUNT DUE: $13,046.35 Denver, CO 80202 DUE DATE: October 3, 2013 CREATE DATE: August 15,2013 QUESTIONS? PLEASE CALL (303-585-4054) INVOICE SUMMARY Current Charges [Payment #1] Total Due TOTAL AMOUNT DUE THIS INVOICE MUST BE PAID WITHIN TEN (10) DAYS OF DUE DATE TO AVOID LATE CHARGES $13,046.35 $13,046.35