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HomeMy WebLinkAbout121223 ws packet WORK SESSION AGENDA REVISED Date: Tuesday, December 12, 2023 Time: 9:00 a.m. Location: Commissioners Meeting Room Harnett County Resource Center & Library 455 McKinney Parkway, Lillington Harnett County Board of Commissioners Page | 1 1. Call to order – Chairman William Morris 2. Pledge of Allegiance and Invocation – Commissioner Lewis W. Weatherspoon 3. Discuss suspending the issuance of building permits in the Rawls Church Road area until certain safety concerns are addressed; William Morris, Chairman 4. Discuss a request for approval of the selection of The Greer Group as part-time temporary staffing agency to provide payroll services for part-time seasonal election workers for the County; Janice Lane, Human Resources Director and Claire Jones, Elections Director 5. Discuss the acceptance of the Grassroots Grant; Desiree Patrick; Community Relations Director 6. Discuss a request for permission to accept award of $500,000 from the NC Agricultural Development and Farmland Preservation Trust Fund for use in securing a conservation easement on 330 acres of working forest land in NW Harnett County protecting water quality along both Hectors Creek and the Cape Fear River; Lynn Lambert, Natural Resources Director 7. Discuss a request for approval to enter into the GREAT Grant 2023 3-way agreement between NCDIT Broadband Infrastructure Office, Connect Holding II, LLC dba Brightspeed, and the County of Harnett; Ira Hall, Chief Information Officer 8. Discuss a request for approval to accept NCEM Hazardous Materials Emergency Preparedness Grant funding award in the amount of $10,000; Larry Smith, Emergency Services Director 9. Discuss a request for approval to move forward with HVAC control software update; Kenneth Snipes, Facility Maintenance Manager 10. Discuss a request to update the Bank Signature Card; Kimberly Honeycutt; Finance Officer 11. Discuss Reimbursement Policy; Kimberly Honeycutt, Finance Officer 12. Discuss a request to approve School Resource Officer Agreements with the following local governments: Town of Angier, Town of Coats, City of Dunn and the Town of Erwin; Brent Trout, County Manager 13. Discuss a request to accept two tracts of land located in the southwest side of County close to Highway 87; Brent Trout, County Manager 14. Review applications to serve on Boards and Committees. HCBOC 121223 ws revised Pg. 1 Harnett County Board of Commissioners Page | 2 15. County Manager’s Report – Brent Trout, County Manager • December 18, 2023, Regular Meeting Agenda Review • Upcoming meetings and invitations 16. Closed Session 17. Adjourn CONDUCT OF THE DECEMBER 12, 2023 MEETING A livestream of the meeting will be on the Harnett County Government’s YouTube Channel at https://www.youtube.com/channel/UCU7mTF6HTD65x_98EhAMeMg/featured. HCBOC 121223 ws revised Pg. 2 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISIONERS SUBJECT: Selection of BOE Temporary Staffing Agency for Election Workers REQUESTED BY: Janice Lane, HR Director REQUEST: The Human Resources Department is recommending the Board of Commissioners select The Greer Group as a part-time temporary staffing agency to provide payroll services for part time seasonal election workers for the County. The staffing agency would assume the responsibility for onboarding and payroll. This would also minimize the County’s exposure as it relates to workers’ compensation claims and other employment related claims. An RFP was placed out for bid and four (4) bids were received. The Human Resources Department selected The Greer Group and their markup is 23.6%. The staffing agency selected currently works with another County Board of Elections so they have experience in this area. This new process would not affect the appointment process for the judges, the recruitment process for election workers nor would it affect the assigned location for each election worker. Item 4 HCBOC 121223 ws revised Pg. 3 FINANCE OFFICERS RECOMENDATION: Recommended COUNTY MANAGERS RECOMMENDATION: The use of an outside staffing agency for election worker activity would provide many benefits to the County. Two significant benefits would be the reduced impact on the Human Resources staff for onboarding activities and the liability and internal control issues associated with the payment of election workers by the Finance Department. Insert text here. HCBOC 121223 ws revised Pg. 4 GENERAL TERMS & CONDITIONS This agreement, between County of Harnett, a political subdivision of the State of North Carolina (Hereinafter referred to as Customer) located at 455 McKinney Parkway, Lillington, North Carolina 27546 and The Greer Group, Inc. (Hereinafter referred to as Greer) located in Raleigh, North Carolina. Term and Termination The initial term of this agreement shall run from the date of full execution and shall continue for a period of one year. Thereafter, the agreement will thereafter renew annually for successive one year terms, provided that Greer is continuing to provide services to Customer. Notwithstanding the foregoing, either party may terminate the agreement, without cause, with ninety (90) days advance written notice. The effective date of any such termination shall be the last day of the month which is ninety (90) days after the date that notice of termination is given. Until the effective date of termination, the parties will continue to meet the obligations set forth in this agreement. Termination of this agreement in no way relieves Customer of any monetary obligation to Greer or of any provision in this agreement which would by its operation trigger a monetary obligation to Greer. In addition, all representations, guarantees and indemnification provisions survive the termination of this agreement. Price changes The Payroll burden is subject to change due to the government mandating taxes (including Affordable Care Health Tax), Unemployment Insurance and the cost of Workers' Compensation Insurance. Greer will notify you of any changes as they occur. This is subject to change annually. Greer reserves the right to increase the mark up to cover any mandated changes. Identification of part-time temporary staff: Customer is responsible for identifying candidates, screening candidates to the extent allowed by law, and recruiting candidates from Harnett County for hire by Greer to work as election workers. Furthermore, Customer is responsible for referring the recruiting candidates that it has identified to Greer for onboarding. Greer shall be responsible for onboarding candidates identified and referred by Customer for prospective employment. Furthermore, Greer shall be responsible for processing the payroll of all temporary staff hired for this project. Employment Relationship All Greer Associates that are assigned to Customer sites and are paid on Greer's payroll are employees of Greer and shall not be deemed to be Customer employees by this agreement. Greer assumes total responsibility to pay all applicable Federal, State, and Local withholding taxes, as well as Social Security, State and Federal Unemployment Insurance and all other payroll charges. Greer Contract Associates have no authority to make representations on behalf of Greer or to otherwise bind Greer. Customer will be responsible for the day-to-day supervision and control of Associates on assignment with Customer. If Customer desires the provision of on-site supervision services of its Associates, Greer will provide and schedule such supervision for an additional charge, all as mutually agreed by Greer and Customer. Except for Customer's responsibility for day-to-day supervision and control of an Associate, Greer reserves and HCBOC 121223 ws revised Pg. 5 retains authority and rights of direction and control over its Associates, including rights to hire, fire, discipline, determine compensation, and pay said employees. This provision in no manner affects Customer's rights reasonably to refuse the assignment of any employee provided hereunder, or to request reassignment of any employee provided. Customer has the right to request Greer to reassign an Associate for any or no reason as long as the request is not discriminatory or otherwise unlawful. Customer is obligated to make any evaluation, verification or assessment of an Associate in order to determine if the Associate possesses the necessary education, experience and skills to satisfactorily perform for Customer. Hours worked verification The Customer agrees to accurately report and verify that Greer Associates' hours are correct on time sheets, time reports generated from our time clock system and the web portal time entry. The Customer remains solely responsible for the accuracy of these records Greer invoices are generated from said time reports. Once approved, the Customer is obligated to pay accordingly. Greer will invoice the Customer weekly based on the Customer approved time sheets submitted by Greer Associates. All invoices will indicate the pay period, the hours billed and the bill rate for each Associate. The Customer agrees to maintain records of actual time worked and verifies the accuracy of wages reported to and paid by Greer, and to make all such records available to Greer for its inspection and audit upon Greer's written request. The Customer will allow access to Greer installed time clocks on an as needed basis. Guarantees All guarantees stated above are the sole and exclusive remedy for Customer. Late Fees Invoices are due upon receipt. For invoices that are over 30 days past due, a late fee of 1.5% of the balance due will be charged for each month or any part thereof that the balance is not paid in full. The charge begins to apply from the original date of the invoice. This late fee will be calculated on a monthly basis and printed on a monthly statement. All payments made are first applied to late fees. If the invoice and service charges are not paid by the next monthly billing cycle, late fees will continue to accumulate. Collection Costs This agreement requires the payment of debt for services rendered by Greer. Customer agrees to pay reasonable attorney's fees (15% of outstanding amount owed) if attorneys are required to collect any amount past due under this Agreement. Safe Work Environment The Customer warrants that it will comply at its expense with all federal, state and local safety, health, and work laws, regulations and rules. Customer warrants and represents that it is in full compliance with the Occupational Safety and Health Act of 1970 (OSHA), as originally enacted and as may be amended from time to time, and with all regulations promulgated there under. Customer shall ensure compliance with safe work practices and that protective equipment requirements required by controlling federal, state and local government and provided and used. All accidents or incidents involving Greer Associates shall be reported immediately to Greer. Customer agrees to fully cooperate with Greer's workers' compensation and liability insurance agents if any claim is filed or claim investigation is commenced. Motorized Vehicles If Greer should provide Associates to the Customer to operate the Customer's fork-lifts or motor vehicles owned or leased and used by the Customer in its business, Customer shall indemnify and hold Greer harmless from any and all claims, suits, damages, including reasonable attorney's fees and costs and any such other legal expenses, whether litigated or not, for bodily injury, death or property damages asserted by the Customer, its employees, agents, employees of Greer or by members of the general public, or by any other person arising out of the operation or use of said fork-lifts or motor vehicles by a Greer employee. Customer should not allow Greer Associates to operate any authorized vehicle without notification and approval of Greer. HCBOC 121223 ws revised Pg. 6 Customer's Insurance Responsibility The Customer agrees to maintain at all times during this Agreement, Comprehensive General Liability Insurance in the minimum amount of five hundred thousand dollars ($500,000), insuring the Customer against bodily injury and property damage including coverage for premises-operations, completed operations, and/or products. Such policies shall also include blanket contractual liability and personal injury liability. If any Greer Associate is to drive a vehicle of any kind for the Customer (including but not limited to a forklift), the Customer shall furnish liability insurance covering such Associate, which shall insure against public liability for bodily injury or property damage with a minimum combined single limit of one hundred thousand dollars ($100,000). The Customer will cause such policies to cover and apply to Associates applied to Customer while acting in the scope of their duties while engaged by Greer, and to be issued naming Greer as an additional insured. Greer reserves the right to not provide Associates to Customer until copies of such insurance certificates are provided to Greer. Greer's Insurance Responsibility Greer warrants that its Associates are adequately covered by workers' compensation insurance. Greer also maintains liability insurance and other forms of insurance coverage. A certificate of insurance will be forwarded to Customer upon Customer's written request and is updated on an annual basis. Greer's Indemnification of Customer Greer agrees to indemnify and hold harmless Customer and its officers, directors and employees from and against any and all damages, liability, fines or penalties, including costs, expenses and reasonable attorney's fees, resulting from any claims or demands (1) for workers' compensation for a workplace injury or other accident of a Greer Associate for which Greer would be liable under workers' compensation laws; (2) for unemployment compensation benefits for a Greer Associates for which Greer would be liable; (3) with respect to taxes required by law to be withheld by Greer in connection with a Greer Associate; (4) arising from the violation by a Greer Associate of any safety, health, employment or workplace related law, rule or regulation; (5) arising from the violation by Greer or by a Greer Associate of any immigration laws; (6) for personal injury, sexual harassment or discrimination resulting from or caused by the negligence, willful misconduct or illegal acts of Greer or a Greer Associate; and (7) for any loss or damage to property owned or leased by Customer caused by the gross negligence, willful misconduct or illegal acts of a Greer Associate. Customer's Indemnification of Greer Customer agrees to indemnify and hold harmless Greer and its officers, directors and employees from and against any and all damages, liability, fines or penalties including costs, expenses and reasonable attorney's fees resulting from any claims or demands (1) for workers' compensation for a workplace injury or other accident of a Customer employee for which the Customer would be liable under workers' compensation laws; (2) for unemployment compensation benefits for a Customer's employee for which the Customer would be liable; (3) with respect to taxes required by law to be withheld by the Customer in connection with a Customer's employee; (4) arising from the violation by a Customer's employee of any safety, health, employment or workplace related law, rule or regulation; (5) arising from the violation by the Customer or by a Customer's employee of any immigration laws; (6) for personal injury, sexual harassment or discrimination resulting from or caused by the negligence, willful misconduct or illegal acts of Customer or its employee; (7) for any loss or damage to property owned or leased by Greer caused by the gross negligence, willful misconduct or illegal acts of a Customer's employee; (8) arising out Customer's provision or failure to provide the day-to-day supervision and control of Associates on assignment with Customer;; and (9) arising out of any investigation of any violation, charge of violation or violation of the Occupational Safety and Health Act of 1970 (OSHA), and any amendment to that Act, including fines, penalties, and costs of investigation, and from any related third party claims. Confidentiality (a) Greer agrees to maintain in confidence, and not to disclose to any third party, include in any publication, or use for its benefit or the benefit of any third party, without the prior written consent of Customer, any information including, without limitation, salary information, staffing needs, staff or prospective staff identities, HCBOC 121223 ws revised Pg. 7 data, know-how, materials, compounds or devices, disclosed to Greer by or on behalf of Customer, or obtained or developed by Greer for Customer in connection with this Agreement ("Customer’s Confidential Information"). (b) Customer agrees to maintain in confidence, and not to disclose to any third party, include in any publication, or use for its benefit or the benefit of any third party, without the prior written consent of Greer, any information including without limitation, salary information, staffing needs, staff or prospective staff identities, data, know-how, materials, compounds or devices, disclosed to Customer by or on behalf of Greer ("Greer Confidential Information"). (c) The restrictions in subsections (a) and (b) above shall not apply to Confidential Information of the disclosing party that (i) was known to the receiving party prior to receipt hereunder as demonstrated in written records; or (ii) at the time of disclosure to the receiving party was generally available to the public, or which after disclosure hereunder, becomes generally available to the public, through no fault of the receiving party; or (iii) is hereafter made available to the receiving party from any third-party having a right to do so on a non-confidential basis; or (iv) is required by law, regulation, subpoena, government order or judicial order to be disclosed, provided the receiving party shall promptly notify the disclosing party upon such request for disclosure and prior to such disclosure to permit the disclosing party to oppose same by appropriate legal action. (d) Each party shall use Confidential Information of the other party only as is necessary to fulfill their respective obligations pursuant to this Agreement, and shall limit such disclosure to any of their respective officers, employees or agents on a need-to-know basis for purposes of fulfilling its obligations under this Agreement. (e) The parties each understand and agree that the disclosing party may be irrevocably injured by any breach of the confidentiality provisions of this Agreement, that money damages would not be a sufficient remedy for any such breach, and that the injured party shall be entitled to seek injunctive relief as a remedy for any such breach. (f) Each party's obligation to maintain the confidentiality of Confidential Information of another party shall survive for a period of seven (7) years following termination of this Agreement. Execution of Confidentiality Agreements by Greer Employees Upon request by Customer, Greer shall require each of Greer's employees assigned to perform services under this agreement to execute a confidentiality agreement, in a form to be provided by Customer, before providing the services. Use of County of Harnett Trade Name Greer shall not, without the prior written consent of Customer, use Customer's or any of its affiliates' names, trade names, service marks, trademarks or logos for publicity or advertising purposes. Notices All notices, requests and demands, other than routine communications under the agreement, will be in writing and will be deemed to have been duly given when delivered by an overnight courier with a reliable system for tracking delivery, and addressed as set forth above. Notices to Customer shall be forwarded to the attention of the appropriate parties. Notices to Greer shall be forwarded to the attention of Deborah Greer, President. Either party may from time to time change the individual(s) to receive notices under this section and/or its address for notification purposes by giving the other prior written notice of the new individual(s) and/or address and the date upon which the change will become effective. Assignment Neither this agreement nor any of the services to be provided hereunder can be assigned or transferred by Greer without the prior written consent of an authorized Customer representative. HCBOC 121223 ws revised Pg. 8 Dispute Resolution The parties agree that it is in their mutual interest to resolve disputes informally. A claim by Greer shall be submitted in writing to the County for decision. A claim by the County shall be submitted in writing to the Greer for decision. The Parties shall negotiate in good faith and use all reasonable efforts to resolve such dispute(s). During the time the Parties are attempting to resolve any dispute, each shall proceed diligently to perform their respective duties and responsibilities under the Agreement. If a dispute cannot be resolved between the Parties within thirty (30) days after delivery of notice, either Party may elect to exercise any other remedies available under the Agreement, or at law. This term shall not constitute an agreement by either party to mediate or arbitrate any dispute. Miscellaneous This agreement shall be construed in accordance with the laws of the State of North Carolina. This agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. The foregoing agreement constitutes the entire agreement between the parties and there are no oral understandings or agreements relating to this agreement. This agreement may be amended or modified only by a writing signed by both parties hereto, which makes specific reference to this agreement. All provisions of this agreement are severable. If any of the clauses or provisions hereof are deemed to be illegal or unenforceable, the remainder of this agreement shall remain fully enforceable and its remaining provisions shall be given full force and effect. The captions set forth herein are for the reader's convenience only and shall not have any legal effect. References to the masculine gender shall include the feminine and the neuter genders and references to the plural tense shall include the singular, unless the context requires otherwise. This agreement may be executed with, and attested to by, facsimile signatures. Execution This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement may be executed by facsimile signatures, or alternatively, by electronic transmission through emails showing the signatures of the parties. This Agreement may also be accepted by Customer through email correspondence acknowledging the Agreement and accepting its terms and conditions. By signing below, the Customer acknowledges that it has read and understands the terms and conditions contained herein and agrees to such terms. This agreement shall be binding upon Greer only when signed by an authorized representative of Greer. Agreed and Accepted By: The Greer Group, Inc. County of Harnett Deborah Greer, President By: Brent Trout, County Manager Signature___________________ Signature_________________ Date____________________ Date____________________ HCBOC 121223 ws revised Pg. 9 \\lecfile\department\Admin\Clerk to the Board docs\AGENDAS\2023\121223 ws\5.1Grassroots agendaform2023.docx Page 1 of 2 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Administration requests approval to accept $157,241.00 in grant funding from the North Carolina Arts Council for the Fiscal Year 2024 Grassroots Arts Program. REQUESTED BY: Desiree Patrick, Community Relations Director REQUEST: Administration requests the Board of Commissioners approval to accept $157,241.00 in grant funding from the North Carolina Arts Council for the Fiscal Year 2024 Grassroots Arts Program Grant. Harnett County has recevied $90,966.00 in State funding which $38,315.00 must be used towards the multicultural requirement, and $66,275.00 in Grassroots ARPA Federal funding which $27,915.00 must be used towards the multicultural requirement. Harnett County Manager's Office has been designated the provisional parter by North Carolina Arts Council to administer the Grassroots Arts Program to support arts organizations and arts programming through Harnett County. The County plans to subgrant majority of the grant to local Harnett County arts organizations and non- profit organizations to support local artists and arts programming for the community. Harnett County recevied ten applications for State funding and seven applications for ARPA funding. State Grassroots Arts Program funds may be used for expenditures to conduct quality arts programs or to operate an arts organization. The state funds do require each subgrant receipient to match the subgrant dollar for dollar with cash from local sources during the applical fiscal year. ARPA Federal Grassroots Arts Program funds may be used to build sustanability of the arts ecosystem (beyond projects, investing in operations, and staff), develop new relationships with arts organizations that have not been previously engaged, and invest in capacity building for arts organizations (shared trainings, specific capacity-building tailored for individual organizations, strategic planning, board training, etc.). The ARPA Federal funds do not require a macth. Item 5 HCBOC 121223 ws revised Pg. 10 Page 1 of 2 STATE OF NORTH CAROLINA AMENDMENT #1 CONTRACT FY 2023-2024 This Agreement amends the contract bearing the effective date of July 1, 2023 between the North Carolina Arts Council, hereinafter referred to as the "Agency" and ______________________________, hereinafter referred to as the "Grantee." This Amendment is hereby effective upon final signatures of all parties. As provided for under the terms of this contract, the Agency and the Grantee agree to amend the following contract provisions: FY 2023-2024 – Grant number __________ - The original amount awarded ($_______) is increased by $________ to accommodate additional Grassroots funds. The new grant award amount is $_________. - Grantee must spend at least $_________ on multicultural programs. All other terms and conditions as set forth in the original contract document shall remain in effect for the duration of this Agreement. - Remainder of Page Left Intentionally Blank - DocuSign Envelope ID: 70BC25F0-5889-4C4E-B886-3ECFA6221AB5 47942 43024 38315 Harnett County Government 94345 90966 HCBOC 121223 ws revised Pg. 11 Page 2 of 2 In Witness Whereof, the Grantee and the Agency have executed this Contract in duplicate originals, with one original being retained by each party. Grantee: ____________________________________________________________________________________ Signature ____________________________________________________________________________________ Printed Name Title North Carolina Arts Council ____________________________________________________________________________________ Victoria Vitiello, Director of Operations DocuSign Envelope ID: 70BC25F0-5889-4C4E-B886-3ECFA6221AB5 County ManagerBrent Trout HCBOC 121223 ws revised Pg. 12 \\lecfile\department\Admin\Clerk to the Board docs\AGENDAS\2023\121223 ws\6.1agendaform2023 - to accept ADFP Funds.docx Page 1 of 1 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: ADFP Funding for Conservation Easement REQUESTED BY: Lynn Lambert REQUEST: Harnett Soil and Water Conservation requests permission to accept award of $500,000 from the NC Agricultural Development and Farmland Preservation Trust Fund for use in securing a conservation easement on 330 acres of working forest land in NW Harnett County protecting water quality along both Hectors Creek and the Cape Fear River. FINANCE OFFICER’S RECOMMENDATION: COUNTY MANAGER’S RECOMMENDATION: Item 6 HCBOC 121223 ws revised Pg. 13 HCBOC 121223 ws revised Pg. 14 HCBOC 121223 ws revised Pg. 15 HCBOC 121223 ws revised Pg. 16 HCBOC 121223 ws revised Pg. 17 HCBOC 121223 ws revised Pg. 18 HCBOC 121223 ws revised Pg. 19 HCBOC 121223 ws revised Pg. 20 HCBOC 121223 ws revised Pg. 21 \\lecfile\department\Admin\Clerk to the Board docs\AGENDAS\2023\121223 ws\7.1 agendaform2023 Bright Speed GREAT grant 2023 1130.docx Page 1 of 1 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: GREAT Grant 2023 Brightspeed agreement REQUESTED BY: Ira Hall, Chief Information Officer REQUEST: Requesting approval to enter into the GREAT Grant 2023 3-way agreement between NCDIT Broadband Infrastructure Office, Connect Holding II, LLC dba Brightspeed, and the County of Harnett. FINANCE OFFICER’S RECOMMENDATION: COUNTY MANAGER’S RECOMMENDATION: Item 7 HCBOC 121223 ws revised Pg. 22 Roy Cooper Governor James A. Weaver Secretary and State Chi ef Information Officer November 15, 2023 Pamela Sherwood Connect Holding II, LLC dba Brightspeed 1120 South Tryon Street, Suite 700 Charlotte, NC 28203 Brent Trout, County Manager 455 McKinney Parkway Lillington, NC 27546 Re: Grant Agreement for Application # 1000013882 (Grant Agreement #2000072237) Your Signature and Reply is Requested Project Title: Harnett Unique Entity Identifier in SAM.gov: JWYXBY1U3ML3 Dear Ms. Sherwood: Thank you again for your participation in the GREAT American Rescue Plan Act Round and congratulations on your award. Attached for your review and signature is the contract document required to establish the agreement for the GREAT award with the North Carolina Department of Information Technology. NCDIT funding will be provided on a reimbursement basis. NCDIT’s portion of this project is funded with a federal award from the U.S. Department of the Treasury to the State of North Carolina dated March 3, 2021 (Assistance Listing Number 21.027, Coronavirus State and Local Fiscal Recovery Funds). Below is a description of the documents enclosed along with an explanation of the signatures required for each document. The authorized representative from your company and county should execute this agreement via AdobeSign no later than November 27, 2023. Document: Document Description: Signed By: Agreement Contract: Outlines the terms of the Agreement between NCDIT and the Grantee. Authorized Representative for the Grantee Exhibit A NCDIT and County disclosures required by 2 C.F.R. 200.332 and 09 NCAC 03M. No Signature Required Exhibit B Scope of Services: Outlines the scope of the construction project, including the Project Budget No Signature Required HCBOC 121223 ws revised Pg. 23 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program ii Exhibit C Project Milestones: Outlines the schedule and contents of reports that are due from the Grantee to NCDIT. No Signature Required Exhibit D Reporting Schedule for Progress Reports No Signature Required Exhibit E Progress Report Template: Provides a template document for the Grantee to submit progress reports, including spending to date No Signature Required Exhibit F Payment Process: Outlines the process for the Grantee to request reimbursements from NCDIT. No Signature Required Exhibit G Byrd Anti-Lobbying Certification Authorized Representative for the Grantee Exhibit H Key Personnel of the Grantee No Signature Required Exhibit I: Mapping Files Data file (cvs) and map that identifies eligible locations for the grant project. No Signature Required Exhibit J: County Match (Financial) Process for payment of County matching funds Signed by Authorized Representative for County and Grantee Exhibit K: County Match (Infrastructure) Description of County’s contribution of infrastructure Signed by Authorized Representative for County and Grantee If you have any questions regarding the enclosed documents, please contact me at (919) 909-9063 or greatgrant@nc.gov. Sincerely, George T. Collier, Deputy Director Broadband Infrastructure Office NC Department of Information Technology Enclosures HCBOC 121223 ws revised Pg. 24 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program iii Table of Contents Article 1. Overview .........................................................................................................................1 Section 1.1. Parties ...............................................................................................................1 Section 1.2 Roles .................................................................................................................1 Section 1.3 Purpose ..............................................................................................................1 Section 1.4 Source of Funding .............................................................................................1 Section 1.5 Compliance .......................................................................................................1 Section 1.6 Disclosures ........................................................................................................2 Section 1.7 Term of Agreement ...........................................................................................2 Section 1.8 Construction Period ..........................................................................................2 Section 1.9 Maintenance Period ..........................................................................................2 Article 2. Scope of Funded Activities .............................................................................................2 Section 2.1 Scope of Project ................................................................................................2 a. Reliance by NCDIT ...........................................................................................2 b. GREAT Program Guidelines .............................................................................2 Section 2.2 NCDIT Funding and Administrative Expenses ................................................3 a. GREAT Award ..................................................................................................3 b. Total Funding .....................................................................................................3 c. Eligible Expenditures .........................................................................................3 d. Expenditure Reimbursement ..............................................................................3 e. Materials Reimbursement ..................................................................................3 f. Non-Eligible Expenditures.................................................................................4 Section 2.3 County Partnership............................................................................................4 a. Financial Match .................................................................................................4 b. Infrastructure Contribution ................................................................................4 Section 2.4 Grantee Duties ..................................................................................................5 a. Broadband Access and Speeds...........................................................................5 b. Records ..............................................................................................................5 c. Project Milestones and Progress Reports ...........................................................6 d. Reporting Requirements ....................................................................................6 e. Funding ..............................................................................................................8 Section 2.5 Material Changes and Project Changes ............................................................9 a. Material Changes ...............................................................................................9 b. Project Changes .................................................................................................9 c. Reduction in Scope ..........................................................................................10 d. Changes that Affect Performance ....................................................................10 e. Extensions of Time ..........................................................................................10 f. Budget Changes ...............................................................................................10 g. Cost Overrun or Underrun ...............................................................................10 HCBOC 121223 ws revised Pg. 25 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program iv Article 3. Compensation ................................................................................................................10 Section 3.1 Payment of Funds by NCDIT .........................................................................10 Section 3.2 County Contribution .......................................................................................10 Section 3.3 Availability of Funds ......................................................................................11 Section 3.4 Repayment Requirements and Remedies ........................................................11 a. Repayment or Clawbacks ................................................................................11 b. Non-Exclusive Remedy ...................................................................................12 c. Improper or Ineligible Payments .....................................................................12 Article 4. Financial Accountability and Grant Administration ......................................................12 Section 4.1 Financial Management ....................................................................................12 Section 4.2 Limitations on Expenditures ...........................................................................12 Section 4.3 Financial and Other Reports ...........................................................................13 Section 4.4 Cost Principles ................................................................................................13 Section 4.5 Audits ..............................................................................................................13 Section 4.6 Closeout ..........................................................................................................13 Section 4.7 Recovery of Award Funding ...........................................................................14 Article 5. Cooperation in Monitoring and Evaluation ...................................................................14 Section 5.1 NCDIT’s Responsibilities ...............................................................................14 a. Project Monitoring ...........................................................................................14 b. Risk Assessment ..............................................................................................15 c. Compliance Audits...........................................................................................15 Section 5.2 Grantee’s Responsibilities ..............................................................................15 a. Compliance with 09 N.C.A.C. 03M ................................................................15 b. Use of Funds ....................................................................................................15 c. Cooperation in Monitoring ..............................................................................15 d. Reporting Compliance .....................................................................................15 Section 5.3 N.C. Administrative Code Reporting and Audit Requirements .....................16 a. Required Reporting ..........................................................................................16 b. Filing of Reports ..............................................................................................16 c. Copies Acceptable ...........................................................................................17 d. Other Reports ...................................................................................................17 Section 5.4 Interventions ...................................................................................................17 Section 5.5 Access to Persons and Records .......................................................................17 Section 5.6 Personnel .........................................................................................................17 Article 6. Compliance with Agreement and Applicable Laws ......................................................18 Section 6.1 General Compliance........................................................................................18 Section 6.2 Expenditure Authority ....................................................................................18 Section 6.3 Federal Grant Administration Requirements ..................................................18 Section 6.4 Property ...........................................................................................................19 HCBOC 121223 ws revised Pg. 26 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program v Section 6.5 Universal Identifier and System for Award Management (SAM) ..................19 Section 6.6 Federal Funding Accountability and Transparency Act of 2006 ....................19 Section 6.7 Licenses, Certification, Permits, Accreditation ..............................................19 Section 6.8 Clean Air Act ..................................................................................................19 Section 6.9 Federal Water Pollution Control Act ..............................................................19 Section 6.10 Debarment and Suspension ...........................................................................20 a. Non-Exclusion Certification ............................................................................20 b. Compliance with 2 C.F.R. Part 180, Subpart C and 31 C.F.R. Part 19 ...........20 c. Remedies for Non-Compliance........................................................................20 d. Subcontractor Certification ..............................................................................20 Section 6.11 Byrd Anti-Lobbying Amendment .................................................................21 Section 6.12 Wages and Labor Standards for Projects over $10 Million ..........................21 a. Prevailing Wages Certification ........................................................................21 b. Project Labor Certification ..............................................................................22 c. Local Hire Prioritization ..................................................................................22 d. Community Benefit Agreement .......................................................................22 Section 6.13 Copeland Anti-Kickback Act ........................................................................22 Section 6.14 Contract Work Hours and Safety Standards Act ..........................................23 Section 6.15 Prohibition on Contracting for Covered Telecommunications Equipment or Services ..............................................................................................................................23 Section 6.16 Program Fraud and False or Fraudulent Statements or Related Acts ...........23 Section 6.17 Protections for Whistleblowers .....................................................................23 Section 6.18 Equal Opportunity & Other Requirements ...................................................23 a. Assurances of Compliance with Title VI of the Civil Rights Act of 1964 ......24 b. Disability Protections .......................................................................................24 c. Age Discrimination ..........................................................................................24 d. Americans with Disabilities .............................................................................24 e. Fair Housing Laws ...........................................................................................24 Section 6.19 Affordable Connectivity Program.................................................................24 Section 6.20 Use of Name .................................................................................................24 Section 6.21 Solicitation of Small Businesses and Historically Underutilized Businesses ..........................................................................................................................25 Section 6.22 Conflicts of Interest; Gifts and Favors ..........................................................25 a. Disclosure of Potential Conflicts .....................................................................25 b. Conflict Certification .......................................................................................25 c. Value Certification ...........................................................................................26 d. Conflict of Interest Policy ................................................................................26 Section 6.23 Miscellaneous Provisions and Conditions ....................................................26 a. Increasing Seat Belt Use in the United States ..................................................26 HCBOC 121223 ws revised Pg. 27 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program vi b. Reducing Text Messaging While Driving .......................................................26 c. Energy Efficiency ............................................................................................26 d. Publications ......................................................................................................26 e. Federal Seals, Logos, and Flags .......................................................................26 Article 7. Termination and Remedies ............................................................................................27 Section 7.1 Termination by Grantors for Default ..............................................................27 Section 7.2 Immediate Termination by Grantors ...............................................................27 Section 7.3 Termination by Mutual Consent .....................................................................27 Section 7.4 Termination Procedures ..................................................................................27 Section 7.5 Sanctions for Noncompliance .........................................................................27 a. Grantee Noncompliance...................................................................................28 b. Misuse of Funds ...............................................................................................28 c. Notice Period ...................................................................................................28 Section 7.6 Termination due to Unavailability of Funds ...................................................28 Article 8. General Conditions ........................................................................................................28 Section 8.1 Representations and Warranties ......................................................................28 a. The Parties’ Representations and Warranties ..................................................28 b. Grantee’s Representations and Warranties ......................................................29 Section 8.2 Indemnification ...............................................................................................30 Section 8.3 Insurance .........................................................................................................30 a. Small Purchases Requirements ........................................................................30 b. Requirements for Contracts Between Small Purchases and $1,000,000.00 ....30 c. Requirements for Contracts in Excess of $1,000,000.00 .................................31 Section 8.4 Cessation, Bankruptcy, Dissolution, or Insolvency ........................................32 a. Merger, Consolidation, or Sale ........................................................................32 b. Notice of Cessation, Bankruptcy, Dissolution, or Insolvency .........................32 c. Remedies on Failure to Provide Notice ...........................................................32 Section 8.5 Binding Effect .................................................................................................33 Section 8.6 Entire Agreement ............................................................................................33 Section 8.7 Titles and Headings.........................................................................................33 Section 8.8 Severability .....................................................................................................33 Section 8.9 Independent Status of the State, the County, the Grantee, and Any Third Parties ................................................................................................................................33 a. Independent Entities.........................................................................................33 b. Grantees Responsibility for Expense and Insurance ........................................34 Section 8.10 Non-Assignability .........................................................................................34 Section 8.11 Subcontracting ..............................................................................................34 Section 8.12 No Waiver by the State or the County ..........................................................35 Section 8.13 Notices ..........................................................................................................35 HCBOC 121223 ws revised Pg. 28 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program vii Section 8.14 Public Records Act Compliance and Confidentiality ...................................36 Section 8.15 Dispute Resolution ........................................................................................36 Section 8.16 Waiver of Objections to Timeliness of Legal Action ...................................36 Section 8.17 Force Majeure ...............................................................................................37 Section 8.18 Construction, Jurisdiction and Venue ...........................................................37 Section 8.19 Execution ......................................................................................................37 Section 8.20 Acceptance ....................................................................................................37 HCBOC 121223 ws revised Pg. 29 TATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 1 Article 1. Overview. Section 1.1. Parties. The North Carolina Department of Information Technology (“NCDIT”), an agency of the State of North Carolina (“State”) and Harnett County (the “County”) (NCDIT and the County are hereinafter collectively referred to as “Grantors”) enter into this Growing Rural Economies with Access to Technology (“GREAT”) Program Agreement (“Agreement” or “Contract”) with the Connect Holding II, LLC, dba Brightspeed (the “Grantee”). Together, Grantors and Grantee are hereinafter collectively referred to as the “Parties” or each individually as a “Party”. Section 1.2. Roles. For the purposes of this Agreement, NCDIT is a recipient and a pass-through entity for the U.S. Department of the Treasury, and the Grantee is a subrecipient, as defined by 2 C.F.R. 200.1. If the County is using federal funds for the project described herein, then pursuant to 2 C.F.R. 200.1 it is also a recipient and a pass-through entity for the purposes of this Agreement, unless those funds are categorized as revenue replacement funds, in which case the County is a recipient. Section 1.3. Purpose. The purpose of this Agreement is to establish the terms and conditions for the use funds that Grantors have awarded to the Grantee to carry out the State’s GREAT Program. Grantors awarded this funding: (1) based on the application filed by the Grantee and any subsequent materials supporting the application; (2) based on GREAT Program guidelines and other requirements and guidelines; and (3) for the deployment of broadband infrastructure to provide the locations identified in this Agreement with at least 100 megabits per second download and 100 megabits per second upload speeds by December 31, 2026, as described in the application (the “Project”). Section 1.4. Source of Funding. The State received State Fiscal Recovery Funds (“SFRF”) pursuant to Section 602 of the Social Security Act, as added by Section 9901 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2, as amended (“ARPA”). Broadband infrastructure projects are an eligible use of SFRF funds (87 Fed. Reg., 4339 Jan. 27, 2022), and NCDIT intends to pay for the cost of this Project using a portion of the $350,000,000 in SFRF funds appropriated to NCDIT by the North Carolina General Assembly for the GREAT grant program (Federal Award Identification Number SLFRP0129, Assistance Listing Number 21.027). In accordance with N.C. Gen. Stat., § 143B-1373(g)(1) (as amended by S.L. 2021-180, Section 38.4(a)(8)), the County will contribute matching funds for the cost of this Project in the form of a financial match using either ARPA funds or the County’s unrestricted general funds, or it will contribute existing infrastructure that has been installed for its enterprise, non-consumer broadband purposes, or any other property, buildings, or structures owned by the County. Section 1.5. Compliance. The Parties to this Agreement are subject to state and federal statutes, rules, and regulations applicable to this Agreement, including but not limited to: Section 602 of the Social Security Act; the Uniform Guidance of the Office of Management and Budget (2 C.F.R. HCBOC 121223 ws revised Pg. 30 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 2 Part 200); the SFRF and ARPA rules and regulations issued by the U.S. Department of the Treasury, (including the SFRF Final Rule at 87 Fed. Reg. 4338, Jan. 27, 2022, to be codified at 31 C.F.R. Part 35); N.C.G.S. §143B-1373 and any relevant amendments, including but not limited to S.L. 2021-180, Section 38.4 and its subsequent amendments and technical changes (the “GREAT statutes”); the Uniform Administration of State Awards of Financial Assistance (09 NCAC 03M); and the award agreement between the State of North Carolina and the U.S. Department of the Treasury. Neither NCDIT nor the County shall make any distributions of funds absent the Grantee’s agreement and adherence to each term and condition contained herein. To the extent that the North Carolina General Assembly, after the Effective Date of this Agreement, enacts legislation that retroactively impacts the Project, the Parties shall have the right to amend this Agreement in accordance with those laws. Grantee also agrees to abide by additional guidance from the U.S. Department of the Treasury regarding the applicability of certain provisions of 2.C.F.R. Part 200. Nothing in this Agreement waives, excuses, or amends requirements imposed by State or Federal law for the administration of these funds. Section 1.6. Disclosures. Federal regulations, specifically 2 C.F.R. 332 require Grantors to provide the Grantee with specific information about this award. All required information, along with state disclosures required by 09 N.C.A.C. 03M, is listed in Exhibit A, “NCDIT Disclosures”. Section 1.7. Term of Agreement. The effective period of this Agreement shall commence on November __, 2023 (“Effective Date”) and shall terminate on November __, 2028, unless terminated on an earlier date by any of the Parties in accordance with the terms of this Agreement (either one of which dates shall constitute the “Termination Date”). Section 1.8. Construction Period. The Construction Period is the time from the execution of this Agreement to the time that service is available to locations identified in Exhibit B “Scope of Services” and shall not extend beyond two years, subject to the provisions of Section 2.4. Section 1.9. Maintenance Period. The Maintenance Period begins on the expiration date of the Construction Period and shall continue until the Termination Date. Broadband service at or above the minimum speeds must be continually made available to the locations specified in Exhibit B through the Maintenance Period until the Termination Date of this Agreement. Article 2. Scope of Funded Activities. Section 2.1. Scope of Project. The scope of the Project covered by this Agreement is set out in the Scope of Services, attached hereto as Exhibit B, which includes the project budget (“Project Budget”). The Grantee shall perform all services described in Exhibit B (“Covered Services”). a. Reliance by NCDIT. The Application filed by the Grantee and any subsequent materials submitted to NCDIT supporting the Application, which have been relied upon by NCDIT in awarding this funding, are incorporated by reference into this Agreement. b. GREAT Program Guidelines. NCDIT policy related to the performance of this HCBOC 121223 ws revised Pg. 31 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 3 Project is set out in the GREAT Program guidelines, which may be amended, modified, or supplemented and applied accordingly to this Agreement by NCDIT in its sole discretion. Guidelines and other documentation are available at https://www.ncbroadband.gov/funding-programs/great-grant-federal/great-grant- 2021-2022/great-grant-management-documents-federal Section 2.2. NCDIT Funding and Administrative Expenses. a. GREAT Award. NCDIT awards to the Grantee an amount not to exceed $4,000,000.00 for infrastructure costs directly relating to the Project (“GREAT Award”). If NCDIT determines that the actual costs of the Project are less than the Project budget amount, NCDIT, in its discretion, may reduce the amount of the GREAT Award funding accordingly. b. Total Funding. The total GREAT Award funding for the Project, including the sources of the funds and the percentages of each source are set forth in Exhibit B. c. Eligible Expenditures. Pursuant to N.C.G.S. § 143B-1373(b), eligible expenditures for the Project are limited to infrastructure costs as defined in N.C.G.S. § 143B- 1373(a)(9), which are costs directly related to the construction of broadband infrastructure for the extension of broadband service for an eligible project, including (“Eligible Expenditures”): 1. Installation; 2. Acquiring or updating easements; 3. Equipment; 4. Fiber; 5. Construction; 6. Backhaul infrastructure directed at broadband service to the end user; 7. Testing costs; 8. Engineering costs; and 9. Costs associated with securing a lease to locate or collocate infrastructure on public or private property or structures, but not including the actual monthly lease payment. d. Expenditure Reimbursement. Eligible Expenditures incurred since the date of the award in anticipation of this Project may be reimbursed, subject to the Grantee’s submission to NCDIT of documentation sufficient to support such request for reimbursement and NCDIT’s approval of such request. e. Materials Reimbursement. Eligible Expenditures for materials incurred since March 3, 2021 in anticipation of this Project may be reimbursed, subject to the Grantee’s submission to NCDIT of documentation sufficient to support such request for HCBOC 121223 ws revised Pg. 32 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 4 reimbursement and NCDIT’s approval of such request. f. Non-Eligible Expenditures. Without limitation and as determined by NCDIT in its sole discretion, the following expenditures are not eligible for GREAT Award funding and should not be submitted to NCDIT for reimbursement or credited by the Grantee toward its Cash Match requirement under Section 2.4.e.1 below: 1. Middle mile, backhaul, and other similar projects not directed at broadband service for end users; 2. Overhead expenses; 3. Administrative costs; 4. Lease payments; or 5. Expenditures related to areas where the Grantee has been designated to receive funds through other State or federally funded programs designed specifically for broadband deployment, if such funding is intended to result in construction of broadband in the area with eighteen (18) months or for the duration of the federal funding program for that area, or if the Grantee is otherwise in good standing with the funding agency’s regulations governing the funding program. Section 2.3. County Partnership. The County has the authority to provide a grant to the Grantee for the purpose of this Project pursuant to N.C.G.S. § 153A-459. The County is also authorized to enter into a partnership the Grantee pursuant to N.C.G.S. §143B-1373(11a)(b) and §143B- 1373(g)(1)(as amended by S.L. 2021-180, Section 38.4(a)(8)). The terms and conditions of the County’s partnership agreement with Provider are set out in this Agreement. The County contribution to the partnership shall be in the form of either a financial match or an infrastructure contribution as described in this Section (“County Partnership”). By signing this Agreement, the County and the Grantee each certify that a partnership exists between them for the purpose of the Project. a. Financial Match. The County will provide a matching financial contribution for the Project in an amount up to fifty percent of the amount contributed by the Grantee as set forth in Section 2.4.e.1 of this Agreement. Any county providing a financial match may use unrestricted general funds or federal ARPA funds allocated to it for the purpose of improving broadband infrastructure. If the County uses federal ARPA funds, it will comply with all relevant reporting requirements governing the use of ARPA funds. The County and the Grantee shall comply with the process and requirements set forth in Exhibit J, “Process for Payment of County matching funds”. b. Infrastructure Contribution. If the County provides a contribution in the form of infrastructure for the Project, it shall comply with the requirements set forth in Exhibit K, “Description of County’s contribution of infrastructure”. The Grantee shall be required to execute Exhibit K prior to the disbursement or use of any infrastructure. HCBOC 121223 ws revised Pg. 33 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 5 2.4. Grantee Duties. a. Broadband Access and Speeds. 1. The Grantee shall deploy infrastructure to the approved locations required by the Grant Agreement and, upon completion of construction, shall offer to those Locations the minimum download and upload speeds identified in the Grantee’s application as the base speed multiplier. The base speed multiplier chosen by the Grantee is the minimum speed made available to all Locations in the grant project and must be scalable to 100 Mbps symmetrical by December 31, 2026. 2. The Grantee shall provide to Grantors evidence consistent with the Federal Communications Commission attestation that the Grantee is providing access and making available the proposed speed, or a faster speed, to the targeted address points (“Locations”) as described in Exhibit B to this Agreement. For the purposes of this Agreement, broadband access is considered available if the Internet carrier can provide broadband service to a Location immediately or within ten (10) business days upon request and without cost to the customer other than standard connection fees. 3. If applicable, the Grantee shall disclose to Grantors any changes to data caps for the Project that differ from the data caps listed in the Application. For the purposes of this Agreement, “data caps” are the limits imposed by broadband service providers on the total amount of data a user can download or upload during a specified period. b. Records. 1. The Grantee shall maintain full, accurate, and verifiable financial records, supporting documents and all other pertinent data for the Project in such a manner as to clearly identify and document the expenditure of the funds provided under this Agreement separate from accounts for other awards, monetary contributions, or other revenue sources for this Project. 2. The Grantee shall retain all financial records, supporting documents, and all other pertinent records related to this Agreement and the Project for a period of five (5) years from the Termination Date, but in the event such records are audited, all such records shall be retained beyond the five-year period until the audit is concluded and any and all audit findings have been resolved. HCBOC 121223 ws revised Pg. 34 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 6 c. Project Milestones and Progress Reports. 1. Project Milestones are set forth in Exhibit C, “Project Milestones”, to this Agreement. The Grantee must submit Project progress reports as required in Section 2.4.d. and in Exhibit D, Reporting Schedule for Progress Reports, including any other requested documentation, demonstrating the achievement of the milestones set forth in Exhibit C. 2. If the Grantee does not complete the milestone as agreed upon within the period of time described in this section, NCDIT may impose additional monitoring and reporting requirements or terminate this Agreement pursuant to the termination provisions set forth herein. Failure to complete a milestone and meet reporting requirements may constitute a material breach of this Agreement, and Grantors may exercise the authority under N.C.G.S. § 143B-1373, 2 C.F.R. § 200.339, and this Agreement to seek termination of this Agreement and retrieval of funds expended. d. Reporting Requirements. NCDIT will perform monitoring of the Project, including on behalf of the County, as set forth in Section 5.1.a. NCDIT will require Project progress reports as set forth herein and in accordance with 2 C.F.R. § 200.329, and will provide copies of all reports to the County within 10 business days. 1. The Grantee agrees to generate reports regarding the Project as described herein and as may be requested by the State (including, without limitation, NCDIT) or by a relevant federal agency. The Grantee further grants the State (including any of its agencies, commissions or departments such as NCDIT, the North Carolina State Auditor and the North Carolina Office of State Budget and Management) and any relevant federal agency, and their authorized representatives, at all reasonable times and as often as necessary (including after the Termination Date), access to and the right to inspect, copy, monitor, and examine all of the books, papers, records, and other documents relating to this Agreement and the Project. In addition, the Grantee agrees to comply at any time, including after the Termination Date, with any requests by the State (including, without limitation, NCDIT) or relevant federal agency for other financial and organizational materials needed to comply with their fiscal monitoring responsibilities or to evaluate the short- and long-range impact of their programs. 2. The Grantee shall furnish NCDIT detailed written progress reports using Exhibit E, “Progress Report Template” provided by NCDIT according to the time periods specified in Exhibit D or as otherwise requested by NCDIT. NCDIT shall conduct risk assessments of the Grantee as set out in Section 5.1. For Projects determined to be Low Risk or Medium Risk, progress reports will be required on a quarterly basis during the Construction Period. For Projects determined to be High Risk, progress reports will be required on a monthly basis during the Construction Period. HCBOC 121223 ws revised Pg. 35 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 7 Progress reports for projects at any risk level shall be required annually during the Maintenance Period. Progress reports should describe the progress made by the Grantee toward achieving the purpose(s) of the Project, including but not limited to: (a) A description of accomplishments achieved during the reporting period towards the relevant milestones; (b) A description of any problems or delays encountered during the reporting period, including an explanation for why established goals were not met, if applicable; (c) Expenditures during the reporting period and any other financial information requested, including an analysis of cost overruns if applicable; (d) During the Maintenance Period, speed levels, data allowances, and pricing options for all services levels offered to end consumers; (e) During the Maintenance Period, confirmation of participation in the Affordable Connectivity Program (“ACP”) or program that provides benefits to households commensurate with those provided under the ACP; and (f) Any additional pertinent information. 3. Failure to submit a required report by the scheduled submission date may result in the withholding of any forthcoming payment until NCDIT is in receipt of the delinquent report and the report meets with NCDIT’s approval, in NCDIT’s sole discretion. Failure to submit required reports, upon request by NCDIT, may result in the Project being subject to the repayment provision in Section 3.4 and may negatively impact the Grantee’s eligibility for future funding. 4. Within sixty (60) days after the Termination Date, the Grantee shall submit a final report using the format designated by NCDIT describing the activities and accomplishments of the Project. The final report shall include a review of performance and activities over the entire Project period. In the final report, the Grantee shall include the following: (a) A description of the Project and how it was implemented; (b) To what degree the established objectives were met; (c) The difficulties encountered; (d) The number of Locations served and whether those Locations are households or businesses; (e) Mapping data sufficient to identify all Locations served and infrastructure built; (f) Total final cost of the Project; (g) Cost per location served; (h) Speed levels, data allowances, and pricing options for all service levels HCBOC 121223 ws revised Pg. 36 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 8 offered to end consumers; (i) Certification of participation in the Affordable Connectivity Program or other affordability program for low-income consumers within the service area; (j) Evidence consistent with the Federal Communications Commission attestation that the proposed minimum upstream and minimum downstream broadband speeds identified in the Application are available throughout the Project area to any end user connections; and (k) Any other information requested by NCDIT. e. Funding. 1. As a condition of receiving GREAT Award funds, the Grantee must contribute a cash match of $6,266,707.00, pursuant to N.C.G.S. §143B-1373(j), as amended by S.L. 2021-180, Section 38.4(13). Up to 50% of the Cash Match may be comprised of third-party funding and other grant programs, to the extent applicable rules permit, including the County financial match as described in Section 2.3. Expenditures that NCDIT, in its sole discretion, determines are not eligible for funding may not be counted toward the Cash Match. All Cash Match funds shall be used for Eligible Expenditures pursuant to the Payment Schedule as specified in Exhibit F, “Payment Schedule”. At all times during the term of this Agreement, Grantee is required to deposit and maintain its portion of the Cash Match, minus any authorized expenditures for progress made on the Project, in a separate and distinct financial account that cannot be utilized for any other purposes, including other GREAT projects awarded to the Grantee. The Grantee must produce documentation verifying account and fund segregation within five (5) business days of request by NCDIT. 2. If the Grantee determines that the actual costs of the Project are less than the Project budget amount, it shall report this determination to Grantors and shall return any surplus funds it has received. 3. The Grantee hereby represents and warrants that all GREAT Award funds shall be utilized exclusively for the purpose of the Project and consistent with all applicable laws, rules, regulations and requirements, and that the Grantee shall not make or approve of any improper expenditure of funds. 4. The Grantee shall not obligate GREAT Award Project funds subsequent to the Termination Date of this Agreement. HCBOC 121223 ws revised Pg. 37 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 9 Section 2.5. Material Changes and Project Changes. a. Material Changes. A material change is any material alteration in, change to, or reduction of the Project, including without limitation, a change in technology type, reduction in the number of Locations to be served by the Project, reduction in the Project area, change in total Project cost by 10% or more withdrawal of partnership agreements for which the Grantee qualified for partnership points, or the extension of the Construction Period (“Material Change”). An amendment to this Agreement is required for a Material Change, and such Material Change shall not take effect unless and until such amendment is executed pursuant to the terms of this Agreement. Prior to implementing a proposed Material Change, the Grantee shall submit the proposal to NCDIT for review and approval. Grantors must review and approve in writing prior to the amendment taking effect. Amendments to this Agreement requested by the Grantee shall only take effect if agreed to in writing by all Parties to this Agreement. b. Project Changes. A project change is any non-material alteration in, change to, or reduction of the Project, including without limitation, change in Key Personnel, project milestones, a change in total Project cost by less than 10%, or transfer costs between Project expense line items detailed in Exhibit B and the EBS (“Project Change”). For a request to transfer costs between line items, all of following criteria must be met: (a) the Grantee provides justification to the satisfaction of NCDIT for the proposed revision; (b) the requested revision adhered to the eligible activities and cost limitations of this Agreement; (c) the GREAT Award funds, Project funding amount, match amount, and the total Project cost are not modified; and (d) the requested revision is less than 10% of the total Project cost. 1. There shall be no Project Changes unless expressly approved by NCDIT. Prior to implementing a proposed Project Change, the Grantee shall submit the proposal to NCDIT for review and approval and provide such detail and documentation necessary for NCDIT to evaluate the proposed project change. Any NCDIT- approved Project Change shall be made in writing by an authorized representative of NCDIT. NCDIT in its sole discretion may deny the requested Project Change, in which case the following alternatives would apply: (1) the Project may be completed without changes; (2) the GREAT Award Project funding may be rescinded by NCDIT if the Project cannot be completed; (3) the GREAT Award funding to the current Grantee may be rescinded by NCDIT and awarded to an alternate Grantee pursuant to the GREAT Statutes; or (4) the Grantee may withdraw from the Project and return any Project funds received to date, among other remedies as described herein. If the Grantee implements any Project Change without requesting the approval for HCBOC 121223 ws revised Pg. 38 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 10 the Project Change in writing from NCDIT, it will be subject to the clawbacks and remedies set forth in Section 3.4, Article 7 (Termination and Remedies) and Section 8.4 of this Agreement, unless NCDIT (in its sole discretion) expressly waives this requirement of Project Change review in writing. c. Reduction in Scope. In the event the Grantee requests to reduce the scope of the Project, including without limitation, a reduction of the number of locations and reduction in the eligible project area, NCDIT may cancel this Agreement pursuant to Article 7 (Termination and Remedies) of this Agreement and N.C.G.S. § 143B-1373(l). d. Changes that Affect Performance. The Grantee shall immediately notify NCDIT of any change in conditions or local law, or any other event, which may significantly affect its ability to oversee, administer or perform this Agreement or the Project. In its sole discretion, NCDIT may deem such a change in conditions, local law, or other event to constitute a Material Change or a Project Change. e. Extensions of Time. Any requests for extensions of time may either be deemed a Material Change or a Project Change in the sole discretion of NCDIT. f. Budget Changes. If a Project or Material Change to the Grantee’s budget has been requested, all Reimbursement Requests may be delayed pending the approval of the Project or Material Change. If changes to the Grantee’s budget have been made without the prior approval of NCDIT, no Reimbursement shall be made until the process outlined in Section 2.5 has been completed. g. Cost Overrun or Underrun. In the event of a cost overrun or an increase in the total Project cost, the amount of NCDIT’s GREAT Award to the Grantee shall not change. The Grantee shall bear sole responsibility for any and all increased costs related to the Project. In the event of a change in the total Project Budget that is 10% or more or a cost underrun, the Grantee must notify NCDIT, in writing, and submit a revised budget and narrative explaining the Project Budget change or reduction of costs. Article 3. Compensation. Section 3.1. Payment of Funds by NCDIT. NCDIT shall reimburse the Grantee for approved GREAT Award funds in accordance with the Payment Schedule attached hereto as Exhibit F, after receipt of (a) written requests for payment from the Grantee utilizing NCDIT’s request form and certification that the conditions for such payment under this Agreement have been met and that the Grantee is entitled to receive the amount requested, and (b) any other documentation that may be required by NCDIT. Section 3.2. County Contribution. If the County is providing a financial match, the County shall provide the Grantee matching funds for approved Eligible Expenditures in accordance with Exhibit HCBOC 121223 ws revised Pg. 39 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 11 J, which shall be signed by the County and the Grantee. If the County is providing infrastructure, the County shall provide it in accordance with Exhibit K, which shall be signed by the County and the Grantee. Section 3.3. Availability of Funds. The obligations of Grantors to pay any amounts under this Agreement to the Grantee are contingent upon: the availability and receipt of funds by Grantors, the continued appropriation of such funds for the purpose set forth in this Agreement, and the Grantee’s continued eligibility to receive such funds. If the amount of funds that Grantors receive is reduced or funds for the Project become unavailable, the Grantee agrees that Grantors have the right to reduce the amount of GREAT Award funds awarded to the Grantee under this Agreement or to terminate this Agreement pursuant to Section 7.6 of this Agreement. Grantors may deny payment for the Grantee’s Eligible Expenditures where invoices or other reports are not submitted by the deadlines specified in this Agreement or for failure of the Grantee to comply with the terms and conditions of this Agreement. Section 3.4. Repayment Requirements and Remedies. a. Repayment or Clawbacks. The Grantee acknowledges that the GREAT Award funding by Grantors is predicated upon the deployment of broadband infrastructure during the Construction Period and fulfilling the obligations of the Maintenance Period. The Grantee further agrees that during the Maintenance Period, if it fails to meet its obligations, then it is responsible for the following repayment or “clawback” payments: 1. If the Grantee fails to make service available to the number of Locations identified in Exhibit B after the completion of the Construction Period, then the Grantee shall repay to Grantors, as directed, an amount equal to the product of (i) $ 838.05 (the amount of funds divided by the number of Locations) and (ii) the number of Locations, minus the number of Locations actually created. If the County contributed a financial match, a pro rata amount per location not served shall be repaid to the County. Interest will be added in accordance with Section 3.4.a.3. 2. Additionally, in the event that the Grantee fails to maintain its Locations as required under the Maintenance Period, it shall lose credit for any qualifying Location under this Agreement by the same number of Locations that is short. For example, if the Grantee fails to maintain service by three (3) Locations, the number of Locations shall be reduced by three (3). The amount the Grantee must repay shall then be calculated in accordance with Section 3.4.a.1. 3. NCDIT shall notify the Grantee in writing of the amount to be repaid and direct the Grantee to repay such amount directly to NCDIT and/or the County according to each Grantors’ contribution. All such amounts shall be due immediately upon demand by NCDIT. If not paid within thirty (30) days following demand, the unpaid amount due shall continue to bear interest at the rate set out by N.C.G.S. HCBOC 121223 ws revised Pg. 40 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 12 §24-1 for the period beginning upon the demand until paid. Upon default in such payment, Grantors may employ an attorney to enforce its rights and remedies, and the Grantee hereby agrees to pay the legal costs and reasonable attorneys’ fees of Grantors plus all other reasonable expenses incurred by Grantors in exercising any of its rights and remedies upon such default. b. Non-Exclusive Remedy. The repayment requirements and remedies addressed in this Section are in addition to those repayment requirements and other remedies set forth elsewhere in this Agreement, including the requirements to repay all funds received, and in 2 C.F.R. § 200.339. No remedy conferred or reserved by or to the State in this Agreement is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy existing at law, in equity, or by statute, and any such right or power may be exercised from time to time and as often as may be deemed expedient. c. Improper or Ineligible Payments. Any item of expenditure by the Grantee under the terms of this Agreement which is found by auditors, investigators, and other authorized representatives of NCDIT, the County, the US Department of the Treasury, the NC Department of State Treasurer, or other federal or state instrumentality to be improper, ineligible, in violation of federal or state law, or the terms of this Agreement, or involving any fraudulent, deceptive, or misleading representations or activities of the Grantee, shall become the Grantee’s liability, and shall be paid solely by the Grantee, immediately upon notification of such, from funds other than those provided by Grantors under this Agreement. This provision shall survive the expiration or termination of this Agreement. Article 4. Financial Accountability and Grant Administration. Section 4.1. Financial Management. The Grantee shall adopt such financial management procedures as will permit the preparation of reports required by the Federal Funding Accountability and Transparency Act (https://www.congress.gov/109/plaws/publ282/PLAW- 109publ282.pdf) and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the relevant statutes, regulations, and terms and conditions herein. The Grantee’s financial management procedures shall allow it to comply with the requirements of 2 C.F.R. 200.302. Section 4.2. Limitations on Expenditures. Grantors shall only reimburse the Grantee for documented expenditures incurred during the Agreement Term that are: (i) reasonable and necessary to carry out the scope of Covered Services described in Exhibit B; (ii) documented by contracts or other evidence of liability consistent with the established Parties’ procedures; and (iii) incurred in accordance with all applicable requirements for the expenditure of funds payable under this Agreement. Grantors may not reimburse or otherwise compensate the Grantee for any HCBOC 121223 ws revised Pg. 41 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 13 expenditures incurred or services provided prior to the Effective Date except as provided in Section 2.2.e of this Agreement or following the earlier of the expiration or termination of this Agreement. Section 4.3. Financial and Other Reports. The Grantee shall maintain detailed, itemized documentation and other necessary records of all expenses incurred pursuant to this Agreement. The Grantee shall submit to Grantors such reports and back-up data as may be required by the federal government or Grantors, including such reports which enable NCDIT and the County, respectively, to submit their own reports to the U.S. Department of the Treasury, in accordance with the schedule set forth in Exhibit F. This provision shall survive the expiration or termination of this Agreement with respect to any reports which the Grantee is required to submit to Grantors following the expiration or termination of this Agreement. Section 4.4. Cost Principles. Pursuant to 09 N.C.A.C. 03M .0201, all expenditures by the Grantee of funds awarded under this Agreement shall be in accordance with the cost principles outlined in the Code of Federal Regulations, 2 CFR Part 200, Subpart E (2 C.F.R. §§ 200.400- 200.476). It is the Grantee’s responsibility to ensure adherence to the cost principles established in the Code of Federal Regulations, 2 CFR Part 200, Subpart E. Section 4.5. Audits. The Grantee certifies compliance with the provisions of 2 CFR 200.501- 200.521, if applicable, and continued compliance with these provisions during the Term of this Agreement. Pursuant to 09 N.C.A.C. 03M .0205, a Grantee that receives, holds, uses, or expends GREAT Award funds in an amount equal to or greater than five hundred thousand dollars ($500,000) within its fiscal year shall have a single or program-specific audit prepared and completed in accordance with Generally Accepted Government Auditing Standards, also known as the Yellow Book. If the Grantee is not required to have a single audit as defined by 2 CFR 200.501, U.S. Department of the Treasury requirements, or the Single Audit Act, or a single audit as defined by 09 N.C.A.C. 03M .0102, then the Grantee shall have a financial audit performed at least annually by an independent Certified Public Accountant. The Grantee shall provide notice of the completion of any required audits and will provide access to such audits and other financial information related to this Agreement upon request. The Grantee certifies that it will provide Grantors with notice of any adverse findings which impact this Agreement. This obligation extends for one (1) year beyond the expiration or termination of this Agreement. The costs of audits shall not be allowable charges under this Agreement. Section 4.6. Closeout. Grantors will close out this award when it determines that all applicable administrative actions and all required work has been completed by the Grantee. Grantors will implement close out processes in accordance with 2 CFR 200.344. The Grantee’s obligations to Grantors under this Agreement shall not terminate until all closeout requirements are completed to the satisfaction of Grantors. Such requirements shall include submitting final reports to NCDIT pursuant to Section 2.4.d and providing any closeout-related information requested by NCDIT by the deadlines specified by NCDIT. This provision shall survive the expiration or termination of this Agreement. NCDIT shall provide all closeout documentation and reports to the County. HCBOC 121223 ws revised Pg. 42 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 14 Section 4.7. Recovery of Award Funding. In accordance with 09 N.C.A.C. 03M .0802, NCDIT shall take appropriate administrative action to recover from the Grantee all GREAT Award funds disbursed in connection with this Agreement in the event that the Grantee: (1) is unable to fulfill the obligations of this Agreement; (2) is unable to accomplish the purposes of the award; (3) is noncompliant with the reporting requirements set forth in this Agreement and in 09 N.C.A.C. 03M; or (4) has inappropriately used GREAT Award funds disbursed in connection with this Agreement. NCDIT must seek the assistance of the Attorney General in the recovery and return of GREAT Award funds disbursed in connection with this Agreement if legal action is required. NCDIT is required to report to the Office of State Budget and Management, the Attorney General, and the State Bureau of Investigation any apparent violations of a criminal law or malfeasance, misfeasance, or nonfeasance in connection with the Grantee’s use of GREAT Award funds disbursed in connection with this Agreement. The remedies set forth in this Section are in addition to the repayment requirements and other remedies set forth elsewhere in this Agreement. Article 5. Cooperation in Monitoring and Evaluation. Section 5.1. NCDIT’s Responsibilities. a. Project Monitoring. NCDIT will have responsibility for the monitoring of this Project, both on behalf of itself and the County, either directly or through contractors. NCDIT will monitor this Project in accordance with 2 C.F.R. § 200.208 and 2 C.F.R. § 200.332 and the provisions of 09 N.C.A.C. 03M .0401 to ensure that adequate progress is being made towards achieving the Project milestones described in Section 2.4.c, and that funds are expended (1) for eligible uses only consistent with the purpose for which the funds were awarded, (2) according to the approved Project Budget, (3) in compliance with all relevant laws, regulatory requirements, cost principles, and provisions of this Agreement. NCDIT will also monitor whether the Grantee has met all reporting requirements of this Agreement and the Grantee’s compliance with all terms of this Agreement. Monitoring will include, at NCDIT’s discretion, progress reports, site visits, financial reviews, and audits. Should the County desire to participate in site visits, it should notify NCDIT and NCDIT will notify the County of any site visits to be performed as part of its monitoring of the Project. The frequency and type of monitoring will depend on the Grantee’s risk level as determined by the risk assessment. NCDIT will provide all progress reports, financial reports, audits, technical reports, and reports from site visits to the County within 10 business days of their completion, including supporting documentation. NCDIT will provide its monitoring protocol to the County upon request. NCDIT does not assume any responsibility for the County’s local, state, or federal reporting requirements. HCBOC 121223 ws revised Pg. 43 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 15 b. Risk Assessment. NCDIT shall conduct risk assessments in accordance with 2 C.F.R. § 200.332(b) to determine the appropriate monitoring needs of the Project. NCDIT may reassess this risk at any time during this Agreement in accordance with NCDIT’s risk assessment process and federal regulations, including but not limited to 2 C.F.R. § 200.332, 2 C.F.R. § 200.206, and 2 C.F.R. § 200.208. Upon completion of the initial risk assessment or any reassessment during the performance period, NCDIT shall determine, at its sole discretion, whether a Project is Low Risk, Medium Risk, or High Risk and implement or change monitoring and reporting requirements accordingly. NCDIT will share the results of each risk assessment of the Grantee with the County within 10 business days of its completion, and, upon request by the County, any supporting documents related to the risk assessment. The County is not required to conduct a separate risk assessment of the Grantee or Project. c. Compliance Audits. In connection with disbursing funds to the Grantee, NCDIT will be subject to periodic audits by the Office of State Budget and Management, the Office of the State Auditor, or NCDIT’s internal auditor to ensure compliance with the provisions of 09 N.C.A.C. 03M and may be required to provide documentation in connection with that audit. NCDIT shall develop a compliance supplement report that describes the standards of compliance and audit procedures to give direction to independent auditors, which NCDIT will provide to the State and Local Government Finance Division in the North Carolina Department of State Treasurer for inclusion in the North Carolina State Compliance Supplement. Section 5.2. Grantee’s Responsibilities. a. Compliance with 09 N.C.A.C. 03M. The Grantee acknowledges and agrees that as a condition of receiving the award pursuant to this Agreement, the Grantee will comply with the provisions of 09 N.C.A.C. 03M. b. Use of Funds. In accordance with 09 N.C.A.C. 03M .0202, the Grantee will ensure that any funds received under this Agreement are utilized for their intended purpose and shall expend those funds in compliance with requirements established by 09 N.C.A.C. 03M and this Agreement. c. Cooperation in Monitoring. The Grantee hereby agrees to cooperate fully and in a timely fashion with NCDIT’s monitoring of the Project and waives any objection to NCDIT’s determination of the Project’s risk level or monitoring needs. d. Reporting Compliance. The Grantee further agrees that it will: (1) provide the information required by NCDIT for NCDIT to comply with the procedures for disbursement of funds; (2) maintain reports and accounting records that support the allowable expenditure of GREAT Award funds and make available all reports and records for inspection by NCDIT, the Office of State Budget and Management, and the HCBOC 121223 ws revised Pg. 44 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 16 Office of the State Auditor for oversight, monitoring, and evaluation purposes; and (3) ensure that any subrecipients (a) comply with all reporting requirements established by 09 N.C.A.C. 03M and this Agreement and (b) report to NCDIT. Section 5.3. N.C. Administrative Code Reporting and Audit Requirements. Per 09 N.C.A.C. 03M .0205, the following three reporting levels are established for Grantees who have received an award from NCDIT pursuant to this Agreement: Level I – A Grantee that receives, holds, uses, or expends GREAT Award funds in an amount less than twenty-five thousand dollars ($25,000) within its fiscal year. Level II - A Grantee that receives, holds, uses, or expends GREAT Award funds in an amount of at least twenty-five thousand ($25,000) or greater, but less than five hundred thousand dollars ($500,000) within its fiscal year. Level III – A Grantee that receives, holds, uses, or expends GREAT Award funds in an amount equal to or greater than five hundred thousand dollars ($500,000) within its fiscal year. a. Required Reporting. In addition to the Project progress reports set out in Section 2.4, the Grantee shall provide the following reporting on an annual basis during the term of this Agreement: 1. All Grantees shall provide: (a) A certification that GREAT Award funds received or, held was used for the purposes for which it was awarded; and (b) An accounting of all GREAT Award funds received, held, used, or expended. 2. Grantees that fall into Levels II and III in Section 5.3 shall report on activities and accomplishments undertaken by the Grantee, including reporting on any performance measures established in this Agreement. 3. As set out in Section 4.5, Grantees that fall into Level III in Section 5.3 shall have a single or program-specific audit prepared and completed in accordance with Generally Accepted Government Auditing Standards, also known as the Yellow Book. b. Filing of Reports. Grantees shall file all reports with NCDIT in the format and method provided by NCDIT no later than three (3) months after the end of the Grantee’s fiscal year, unless the same information is already required through more frequent reporting. Audits must be provided to NCDIT no later than nine (9) months after the end of the HCBOC 121223 ws revised Pg. 45 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 17 Grantee’s fiscal year. c. Copies Acceptable. Notwithstanding the foregoing provisions, a Grantee may satisfy the reporting requirements of Section 5.3.b. by submitting a copy of the report required under federal law with respect to the same funds. d. Other Reports. The Grantee shall provide NCDIT with any other reports as required by State or federal law. Section 5.4. Interventions. If NCDIT determines the Grantee is not maintaining adequate progress towards Project milestones or is not engaging in the appropriate expenditure of funds, NCDIT may impose additional reporting requirements and/or award conditions. These additional requirements and/or conditions may include: withholding authority to proceed to the next phase until receipt of evidence of acceptable performance and/or progress within a given period; requiring additional, more detailed financial reports; requiring additional Project monitoring; requiring the Grantee to obtain technical or management assistance; and establishing prior approvals. NCDIT will notify the Grantee of these additional requirements and/or conditions in accordance with 2 C.F.R. § 200.208(d). Section 5.5. Access to Persons and Records. Pursuant to N.C.G.S. § 147-64.7, Grantors, the Office of State Budget and Management, the State Auditor, the U.S. Department of the Treasury, the Treasury Office of Inspector General, the U.S. Government Accountability Office, the Comptroller General of the United States, and any other appropriate state or federal agency, or any authorized representatives of these entities, are authorized to examine all books, records, papers, and accounts of the Grantee insofar as they relate to transactions with any department, board, officer, commission, institution, or other agency of the State of North Carolina pursuant to the performance of this Agreement or to funds disbursed pursuant to this Agreement. The Grantee shall maintain and hereby agrees to retain all records, books, papers, and other documents covered by this Section through December 31, 2031, or such longer period as is necessary for the resolution of any litigation, claim, negotiation, audit, or other inquiry involving this Agreement. The Grantee shall make all records, books, papers and other documents that relate to this Agreement available at all reasonable times for inspection, review and audit by the authorized representatives of Grantors, the North Carolina State Auditor, the U.S. Department of the Treasury, the U.S. Government Accountability Office, and any other authorized state or federal oversight office. Additional audit or reporting requirements may be required by Grantors if such requirement is imposed by federal or state law or regulation. Section 5.6. Personnel. The Grantee represents that it has, or will secure at its own expense, all personnel required to monitor, carry out, and perform the scope of services of this Agreement. Such employees shall not be employees of NCDIT or the County. The Grantee shall identify all personnel who will be involved in performing the scope of services of this Agreement and otherwise administering this Agreement, including at least one project manager and one fiscal officer (“Key Personnel”). Such Key Personnel shall be fully qualified and shall be authorized HCBOC 121223 ws revised Pg. 46 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 18 under state and local law to perform such services. Changes to Key Personnel do not constitute a Material Change under Section 2.5.a of this Agreement; however, the Grantee shall notify NCDIT of any changes to Key Personnel within thirty (30) days of the change in accordance with Section 8.13. Article 6. Compliance with Agreement and Applicable Laws. Section 6.1. General Compliance. The Grantee shall perform all Covered Services funded by this Agreement in accordance with this Agreement, the award agreement between the State of North Carolina and the U.S. Department of the Treasury, the award agreement between the County and the U.S. Department of the Treasury, and all applicable federal, state and local requirements, including all applicable statutes, rules, regulations, executive orders, directives or other requirements. Such requirements may be different from the Grantee’s current policies and practices. While Grantors may assist the Grantee in complying with all applicable requirements, the Grantee remains responsible for ensuring its compliance with all applicable requirements. Section 6.2. Expenditure Authority. This Agreement is subject to the laws, regulations, and guidance documents authorizing and implementing the GREAT grant, including, but not limited to, the following: Authorizing Statute. Section 602 of the Social Security Act, as added by Section 9901 of the American Rescue Plan Act of 2021, Pub. L. No. 117-2. Implementing Regulations. Subpart A of 31 CFR Part 35 (Coronavirus State and Local Fiscal Recovery Funds), as adopted in the Coronavirus State and Local Fiscal Recovery Funds Interim Final Rule (86 FR 26786, applicable May 17, 2021 through March 31, 2022) and final rule (87 FR 4338, applicable January 27, 2022 through the end of the ARPA/SFRF award term), and other subsequent regulations implementing Section 603 of the Social Security Act (42 U.S.C. 803). Guidance Documents. Applicable guidance documents issued from time-to-time by the U.S. Department of the Treasury, including the currently applicable version of the Compliance and Reporting Guidance: State and Local Fiscal Recovery Funds.1 Other Regulations, Statutes and Rules. Applicable provisions of the Uniform Guidance (2 C.F.R. Part 200); the GREAT Statutes at N.C.G.S. 143B-1373, and as amended by S.L. 2021- 180, Section 38.4, and any subsequent amendments and technical changes; 09 N.C. Admin. Code. 03M; and all applicable laws of the State of North Carolina. Section 6.3. Federal Grant Administration Requirements. The Grantee shall comply with any applicable provisions of the Uniform Administrative Requirements, Cost Principles, and Audit 1 SLFRF-Compliance-and-Reporting-Guidance.pdf (treasury.gov) HCBOC 121223 ws revised Pg. 47 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 19 Requirements for Federal Awards, 2 CFR Part 200 (UG), as adopted by the U.S. Department of the Treasury at 2 CFR Part 1000 and as set forth in the Assistance Listing for ARP/CSLFRF (21.027). These requirements dictate how the Grantee must administer the award and how NCDIT must oversee the Grantee. Section 6.4. Property. Grantee shall retain ownership interests and rights in the network and in any property, materials, equipment, supplies, and facilities it constructs or purchases for the Project pursuant to this Agreement. Grantee agrees to abide by the property requirements set forth in 2 C.F.R. 200.311-316, as amended in applicable guidance or regulations issued by the U.S. Department of the Treasury or other federal agency after the Effective Date of this Agreement. Section 6.5. Universal Identifier and System for Award Management (SAM). The Grantee shall provide and/or obtain and provide to NCDIT, a unique entity identifier assigned by the System for Award Management (SAM), which is accessible at www.sam.gov. Section 6.6. Federal Funding Accountability and Transparency Act of 2006. The Grantee shall provide Grantors with all information requested by Grantors to enable Grantors to comply with the reporting requirements of the Federal Funding Accountability and Transparency Act of 2006 (31 U.S.C. 6101 note). Section 6.7. Licenses, Certifications, Permits, Accreditation. The Grantee shall obtain and keep current any license, certification, permit, or accreditation required by federal, state, or local law and shall submit to Grantors proof of any licensure, certification, permit or accreditation upon request. Section 6.8. Clean Air Act. The Grantee agrees to comply with all applicable standards, orders, and regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. §§ 7401 et seq. The Grantee agrees to report each violation to NCDIT and understands and agrees that Grantors will, in turn, report each violation as required to the federal awarding agency and the appropriate Environmental Protection Agency Regional Office. The Grantee agrees to include these requirements in any subcontract exceeding $150,000 funded, in whole or in part, with funds provided by Grantors pursuant to this Agreement. Section 6.9. Federal Water Pollution Control Act. The Grantee agrees to comply with all applicable standards, orders, and regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. §§ 1251 et seq. The Grantee agrees to report each violation to Grantors and understands and agrees that Grantors will, in turn, report each violation as required to assure notification to the federal awarding agency and the appropriate Environmental Protection Agency Regional Office. The Grantee agrees to include these requirements in any subcontract exceeding $150,000 funded, in whole or in part, with funds provided by Grantors pursuant to this Agreement. HCBOC 121223 ws revised Pg. 48 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 20 Section 6.10. Debarment and Suspension. Due to its receipt of ARPA funds, Grantors are participants in a non-procurement transaction (defined at 2 C.F.R. § 180.970) that is a covered transaction pursuant to 2 C.F.R. § 180.210 and 31 C.F.R. § 19.210. Therefore, this Agreement is a lower-Tier covered transaction for purposes of 2 C.F.R. Part 180 and 31 C.F.R. Part 19 if the amount of this Agreement is greater than or equal to $25,000. a. Non-Exclusion Certification. The Grantee hereby certifies as of the date hereof, that the Grantee, the Grantee’s principals (defined at 2 C.F.R. § 180.995), and the affiliates (defined at 2 C.F.R. § 180.905) of both the Grantee and the Grantee’s principals are not excluded individuals (defined at 2 C.F.R. § 180.935) and are not disqualified (defined at 2 C.F.R. § 180.935), or otherwise determined ineligible to participate in federal assistance awards or contracts. If any of the foregoing persons are excluded or disqualified and the federal awarding agency has not granted an exception pursuant to 31 C.F.R. § 19.120(a), then: (1) this Agreement shall be void, (2) Grantors shall not make any payments of federal financial assistance to the Grantee, and (3) Grantors shall have no obligations to the Grantee under this Agreement. b. Compliance with 2. C.F.R. Part 180, Subpart C and 31 C.F.R. Part 19. The Grantee must comply with the Office of Management and Budget (OMB) Guidelines to Agencies on Governmentwide Debarment and Suspension (Nonprocurement) in 2 C.F.R. Part 180, Subpart C, and as adopted by the U.S. Department of the Treasury at 31 C.F.R. Part 19, and must include a requirement to comply with these regulations in any lower-Tier 2 covered transaction into which it enters. The Grantee hereby certifies that it will comply with 2 C.F.R. Part 180, Subpart C and 31 C.F.R. Part 19. This certification is a material representation of fact relied upon by Grantors, and all liability arising from an erroneous representation shall be borne solely by the Grantee. c. Remedies for Non-Compliance. If it is later determined that the Grantee did not comply with 2 C.F.R. Part 180, Subpart C and 31 C.F.R. Part 19, in addition to remedies available to Grantors, the federal government may pursue available remedies, including but not limited to, suspension and/or debarment. d. Subcontractor Certification. The Grantee hereby certifies that none of the subcontractors it has proposed to perform work under this Agreement are listed under the State Debarred Vendors listing (https://ncadmin.nc.gov/documents/nc-debarred- vendors), or in the past five (5) years have been suspended or debarred from doing business with the federal or any state government. The Grantee agrees that it will notify Grantors immediately if it or any of its principals is placed on the list of parties excluded from federal procurement or nonprocurement programs available at www.sam.gov. 2 “Tier” shall have the meaning indicated in 2 C.F.R. Part 180 and illustrated in 2 C.F.R. Part 180, Appendix II. HCBOC 121223 ws revised Pg. 49 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 21 Section 6.11. Byrd Anti-Lobbying Amendment. The Grantee shall comply with the restrictions on lobbying in 31 CFR Part 21. The Grantee certifies to Grantors, and the Grantee shall cause each Tier below it to certify to the Tier directly above such Tier, that it has not used and will not use federally appropriated funds to pay any person or organization to influence or attempt to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. The Grantee shall, and shall cause each Tier below it, to disclose any lobbying with non–federally appropriated funds that takes place in connection with obtaining any federal award. Such disclosures (to be set forth on Standard Form-LLL, contained in 31 C.F.R. Part 21, Appendix B) shall be forwarded from Tier to Tier up to Grantors, which will, in turn, forward the certification(s) to the federal awarding agency. The Grantee shall cause the language of this Section to be included in all subcontracts. This certification is a material representation of fact upon which Grantors have relied when entering into this Agreement, and all liability arising from an erroneous representation shall be borne solely by the Grantee. If this Agreement exceeds $100,000, the Grantee also must file with Grantors the certification in Exhibit G, “Byrd Anti-Lobbying Certification”, which is attached hereto and incorporated herein. Any subcontractor with a subcontract (at any Tier) exceeding $100,000 must also file with the Tier above it the certification in Exhibit G. Section 6.12. Wages and Labor Standards for Projects over $10 Million. In its reporting guidance, the U.S. Department of Treasury has indicated that recipients will need to provide documentation of wages and labor standards for capital expenditure projects and infrastructure projects over $10 million, and that these requirements can be met with certifications that the project is in compliance with the Davis-Bacon Act (or related state laws, commonly known as “baby Davis-Bacon Acts”) and subject to a project labor agreement. In accordance with the SLFRF Reporting and Compliance Guidance, for Projects with a total cost of over ten million dollars ($10,000,000) (based on expected total cost): a. Prevailing Wages Certification. A recipient may provide a certification that, for the relevant project, all laborers and mechanics employed by contractors and subcontractors in the performance of such project are paid wages at rates not less than those prevailing, as determined by the U.S. Secretary of Labor in accordance with subchapter IV of chapter 31 of title 40, United States Code (commonly known as the “Davis-Bacon Act”), for the corresponding classes of laborers and mechanics employed on projects of a character similar to the contract work in the civil subdivision of the State (or the District of Columbia) in which the work is to be performed, or by the appropriate State entity pursuant to a corollary State prevailing-wage-in- construction law (commonly known as “baby Davis-Bacon Acts”). If such certification is not provided, a recipient must provide a project employment and local impact report detailing: HCBOC 121223 ws revised Pg. 50 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 22 • The number of employees of contractors and sub-contractors working on the project; • The number of employees on the project hired directly and hired through a third party; • The wages and benefits of workers on the project by classification; and • Whether those wages are at rates less than those prevailing. 19 Recipients must maintain sufficient records to substantiate this information upon request. b. Project Labor Certification. A recipient may provide a certification that a project includes a project labor agreement, meaning a pre-hire collective bargaining agreement consistent with section 8(f) of the National Labor Relations Act (29 U.S.C. 158(f)). If the recipient does not provide such certification, the recipient must provide a project workforce continuity plan, detailing: • How the recipient will ensure the project has ready access to a sufficient supply of appropriately skilled and unskilled labor to ensure high-quality construction throughout the life of the project, including a description of any required professional certifications and/or in-house training; • How the recipient will minimize risks of labor disputes and disruptions that would jeopardize timeliness and cost-effectiveness of the project; • How the recipient will provide a safe and healthy workplace that avoids delays and costs associated with workplace illnesses, injuries, and fatalities, including descriptions of safety training, certification, and/or licensure requirements for all relevant workers (e.g., OSHA 10, OSHA 30); • Whether workers on the project will receive wages and benefits that will secure an appropriately skilled workforce in the context of the local or regional labor market; and • Whether the project has completed a project labor agreement. c. Local Hire Prioritization. Whether the project prioritizes local hires. d. Community Benefit Agreement. Whether the project has a Community Benefit Agreement, with a description of any such agreement. Section 6.13. Copeland Anti-Kickback Act. In accordance with the Copeland Anti-Kickback Act, as supplemented by the Department of Labor regulations at 29 CFR Part 3, the Grantee understands and agrees that it is prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. Grantors shall report any and all suspected or reported violations of this Section to the Federal awarding Agency. HCBOC 121223 ws revised Pg. 51 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 23 Section 6.14. Contract Work Hours and Safety Standard Act. Contracts awarded by Grantors in excess of one-hundred thousand dollars ($100,000.00) that involve the employment of mechanics or laborers are required to comply with 40 U.S.C. 3702 and 3704, as supplemented by Department of Labor Regulations at 29 CFR Part 5. The Grantee understands and agrees that it will compute the wages of every mechanic and laborer on the basis of a standard work week of forty (40) hours, and that work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The Grantee further understands and agrees that no mechanic or laborer is required to work in surroundings or under working conditions that are unsanitary, hazardous, or dangerous. Section 6.15. Prohibition on Contracting for Covered Telecommunications Equipment or Services. Pursuant to 2 C.F.R. § 200.216, the Grantee agrees not to expend funds it receives pursuant to this Agreement to procure or obtain, or to enter into, extend, or renew a contract to procure or obtain equipment, services, or systems that use covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. Covered telecommunications equipment is defined in 2 C.F.R. § 200.216. Section 6.16. Program Fraud and False or Fraudulent Statements or Related Acts. The Grantee acknowledges that 31 U.S.C. Chapter 38 (Administrative Remedies for False Claims and Statements) applies to its actions pertaining to this Agreement. Making false statements or claims in connection with this award is a violation of federal law and may result in criminal, civil, or administrative sanctions, including fines, imprisonment, civil damages and penalties, debarment from participating in state or federal awards or contracts, and/or any other remedy available by law. Section 6.17. Protections for Whistleblowers. In accordance with 41 U.S.C. § 4712, the Grantee may not discharge, demote, or otherwise discriminate against an employee in reprisal for disclosing, to any of the list of persons in 41 U.S.C. § 4712(a)(2), information that the employee reasonably believes is evidence of gross mismanagement of a federal contract or grant, a gross waste of federal funds, an abuse of authority relating to a federal contract or grant, a substantial and specific danger to public health or safety, or a violation of law, rule, or regulation related to a federal contract (including the competition for or negotiation of a contract) or grant. The Grantee is hereby notified that it is required to: (a) inform its employees that they are subject to the whistleblower rights and remedies of the program; (b) inform its employees in writing of employee whistleblower protections under 41 U.S.C §4712 in the predominant native language of the workforce; and (c) include such requirements in any agreement made with a subcontractor or subgrantee. Section 6.18. Equal Opportunity & Other Requirements. The Grantee shall adopt and enact a nondiscrimination policy consistent with the requirements in this Section. The Grantee acknowledges that Grantors are bound by and agrees, to the extent applicable to the Grantee, to HCBOC 121223 ws revised Pg. 52 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 24 abide by the provisions contained in the federal statutes enumerated below and any other federal statutes and regulations that may be applicable to the expenditure of ARPA funds: a. Assurances of Compliance with Title VI of the Civil Rights Act of 1964. The Grantee and any subcontractor, or the successor, transferee, or assignee of the Grantee or any subcontractor, shall comply with Title VI of the Civil Rights Act of 1964, which prohibits recipients of federal financial assistance from excluding from a program or activity, denying benefits of, or otherwise discriminating against a person on the basis of race, color, or national origin (42 U.S.C. §§ 2000d et seq.), as implemented by the U.S. Department of the Treasury’s Title VI regulations, 31 C.F.R. Part 22, which are herein incorporated by reference and made a part of this Agreement. Title VI also provides protection to persons with “Limited English Proficiency” in any program or activity receiving federal financial assistance, 42 U.S.C. §§ 2000d et seq., as implemented by Treasury’s Title VI regulations, 31 C.F.R. Part 22, and herein incorporated by reference and made a part of this Agreement. b. Disability Protections. Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C. § 794), which prohibits discrimination on the basis of disability under any program or activity receiving federal financial assistance. c. Age Discrimination. The Age Discrimination Act of 1975, as amended (42 U.S.C. §§ 6101 et seq.), and Treasury’s implementing regulations at 31 C.F.R. Part 23, which prohibit discrimination on the basis of age in programs or activities receiving federal financial assistance. d. Americans with Disabilities. Title II of the Americans with Disabilities Act of 1990, as amended (42 U.S.C. §§ 12101 et seq.), which prohibits discrimination on the basis of disability in programs, activities, and services provided or made available by state and local governments or instrumentalities or agencies thereto. e. Fair Housing Laws. The Grantee shall comply with the Fair Housing Act, Title VIII of the Civil Rights Act of 1968 (42 U.S.C. §§ 3601 et seq.), which prohibits discrimination in housing on the basis of race, color, religion, national origin, sex, familial status, or disability. Section 6.19. Affordable Connectivity Program. The Grantee must participate in the Federal Communications Commission Affordable Connectivity Program (“ACP”), or otherwise provide access to a broad-based affordability program to low-income consumers in the proposed service area of the broadband infrastructure that provides benefits to households commensurate with those provided under the ACP. Section 6.20. Use of Name. Neither party to this Agreement shall use the other Party’s name, trademarks, or other logos in any publicity, advertising, or news release without the prior written HCBOC 121223 ws revised Pg. 53 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 25 approval of an authorized representative of that Party. The Parties agree that each party may use factual information regarding the existence and purpose of the relationship that is the subject of this Agreement for legitimate business purposes, to satisfy any reporting and funding obligations, or as required by applicable law or regulation without written permission from the other Party. In any such statement, the relationship of the Parties shall be accurately and appropriately described. Section 6.21. Solicitation of Small Businesses and Historically Underutilized Businesses. If the Grantee intends to let any subcontracts, it shall encourage and promote the use of small businesses and historically underutilized businesses, such as (1) assuring that small and historically underutilized businesses are solicited whenever they are potential sources; (2) dividing total requirements, when economically feasible, into smaller tasks or quantities to permit maximum participation by small and historically underutilized businesses; (3) establishing delivery schedules, where the requirement permits, which encourage participation by small and historically underutilized businesses; and (4) using the services and assistance, as appropriate, of the Small Business Administration, the Minority Business Development Agency of the Department of Commerce, and the North Carolina Office for Historically Underutilized Businesses. For the purposes of this Agreement, an entity shall qualify (1) as an “historically underutilized business” if it is currently certified as such under Chapter 143, Section 128.4 of the N.C. General Statutes, and (2) as a “small business” if it is independently owned and operated and is qualified under the Small Business Administration criteria and size standards at 13 C.F.R. Part 21. Section 6.22. Conflicts of Interest; Gifts and Favors a. Disclosure of Potential Conflicts. The Grantee understands that (1) NCDIT will use ARPA funds to pay for the cost of this Contract; (2) the County may use ARPA funds to contribute to the payment of this Contract; and (3) the expenditure of ARPA funds is governed by the Conflict of Interest Policies of NCDIT, and if applicable, the County, the federal requirements (including, without limitation, 2 C.F.R. § 200.318(c)(1)), and North Carolina law (including, without limitation, N.C.G.S. §§ 14-234(a)(1) and - 234.3(a)). The Grantee must disclose in writing to Grantors any potential conflict of interest affecting the awarded funds in accordance with 2 C.F.R. § 200.112. b. Conflict Certification. The Grantee certifies to Grantors that as of the date hereof, to the best of its knowledge after reasonable inquiry, no employee, officer, or agent of Grantors involved in the selection, award, or administration of this Agreement (each a “Covered Individual”); no member of a Covered Individual’s immediate family; no partner of a Covered Individual; and no organization (including the Grantee) which employs or is about to employ a Covered Individual; has a financial or other interest in, or has received a tangible personal benefit from, the Grantee. Should the Grantee obtain knowledge of any such interest or any tangible personal benefit described in the preceding sentence after the date hereof, it shall promptly disclose the same to Grantors in writing. HCBOC 121223 ws revised Pg. 54 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 26 c. Value Certification. The Grantee certifies to Grantors that it has not provided, nor offered to provide, any gratuities, favors, or anything of value to an officer, employee, or agent of Grantors. Should the Grantee obtain knowledge of the provision, or offer of any provision, of any gratuity, favor, or anything of value to an officer, employee, or agent described in the preceding sentence after the date hereof, it shall promptly disclose the same to Grantors in writing. d. Conflict of Interest Policy. – Pursuant to N.C. Gen. Stat. § 143C-6-23(b), every Grantee shall file with NCDIT a copy of Grantee's policy addressing conflicts of interest that may arise involving the Grantee's management employees and the members of its board of directors or other governing body. The policy shall address situations in which any of these individuals may directly or indirectly benefit, except as the Grantee's employees or members of its board or other governing body, from the Grantee's disbursing of State funds, and shall include actions to be taken by the Grantee or the individual, or both, to avoid conflicts of interest and the appearance of impropriety. The policy shall be filed before the disbursing State agency may disburse the grant funds. Section 6.23. Miscellaneous Provisions and Conditions. a. Increasing Seat Belt Use in the United States. Pursuant to Executive Order 13043, 62 Fed. Reg. 19,216 (Apr. 18, 1997), Grantors encourage the Grantee to adopt and enforce on-the-job seat belt policies and programs for its employees when operating company-owned, rented, or personally owned vehicles. b. Reducing Text Messaging While Driving. Pursuant to Executive Order 13513, 74 Fed. Reg. 51,225 (Oct. 6, 2009), Grantors encourage the Grantee to adopt and enforce policies that ban text messaging while driving. c. Energy Efficiency. All participants in the projects funded hereby shall recognize mandatory standards and policies relating to energy efficiency, which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (PL 94-163). d. Publications. Any publications related to the Project must be paid for independently by the Grantee (i.e., not with GREAT Award funds) and must display the following language: “This project [is being][was] supported, in whole or in part, by funds awarded to the State of North Carolina by the U.S. Department of the Treasury.” e. Federal Seals, Logos, and Flags. The Grantee shall not use the seal(s), logos, crests, or reproductions of flags of the federal funding agency or likenesses of any federal agency officials without specific pre-approval of the relevant federal agency. HCBOC 121223 ws revised Pg. 55 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 27 Article 7. Termination and Remedies. Section 7.1. Termination by Grantors for Default. If the Grantee fails to fulfill in a timely and proper manner its obligations required under this Agreement or violates or fails to comply with any of the covenants or stipulations under this Agreement or any applicable laws, rules, and regulations, and such default is not cured within sixty (60) calendar days of the receipt of written notice of such default, then NCDIT and/or the County shall have the right to terminate this Agreement on any future date after giving the Grantee written notice of termination of this Agreement at least ten (10) calendar days in advance of the Termination Date. Any termination notice under this Section shall specify the Termination Date and this Agreement shall terminate automatically upon such Termination Date. Upon termination of this Agreement under this Section, (1) Grantors shall have no responsibility to make additional payments to the Grantee; and (2) the Grantee shall not expend any additional funds for which it will seek reimbursement without NCDIT’s prior and express written authorization and shall return all funds received to NCDIT upon demand. 2 C.F.R. § 200, app. II(B). Section 7.2. Immediate Termination by Grantors. NCDIT and/or the County may terminate this Agreement immediately upon discovery of the Grantee’s commission of fraud of GREAT Award funds. Section 7.3. Termination by Mutual Consent. In accordance with 09 N.C.A.C. 3M.0703(11), this Agreement may be terminated at any time upon the mutual consent of the Parties upon sixty (60) days prior written notice to the other Parties. Section 7.4. Termination Procedures. All notices of termination shall be given in accordance with the notice provisions in Section 8.13 of this Agreement. If this Agreement is terminated under this Article 7, the Grantee may not incur new obligations for the terminated portion of this Agreement after the Grantee has received the notification of termination. The Grantee must cancel as many outstanding obligations as possible. Costs incurred after receipt of the termination notice will be disallowed. The Grantee shall not be relieved of liability to Grantors because of any breach of Agreement by the Grantee. The Grantors may, to the extent authorized by law, withhold payments to the Grantee for the purpose of set-off until the exact amount of damages due NCDIT and/or the County from the Grantee is determined. Neither the County nor NCDIT shall commence termination procedures or legal action against the Grantee for violations related to the performance of this Agreement without providing notice to the other. Section 7.5. Sanctions for Noncompliance. As the entity responsible for handling monitoring of the Project and this Agreement, NCDIT is required to ensure that the Grantee complies with the applicable provisions of 09 N.C.A.C. 03M. Pursuant to 09 N.C.A.C. 03M .0401, upon NCDIT’s determination that the Grantee is noncompliant with 09 N.C.A.C. 03M and/or the terms of this Agreement, NCDIT shall take all appropriate action in accordance with 09 N.C.A.C. 03M .0800 HCBOC 121223 ws revised Pg. 56 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 28 as follows: a. Grantee Noncompliance. When the Grantee does not comply with the requirements of 09 N.C.A.C. 03M, NCDIT shall: (1) communicate the requirements to the Grantee; (2) require a response from the Grantee upon a determination of noncompliance; (3) suspend payments to the Grantee until the Grantee comes in compliance. b. Misuse of Funds. When NCDIT discovers evidence of management deficiencies or criminal activity leading to the misuse of funds, NCDIT shall notify the Office of State Budget and Management and take the appropriate action or actions, including without limitation: (1) suspending payments until the matter has been fully investigated and corrective action has been taken; (2) terminating this Agreement and taking action to retrieve unexpended funds or unauthorized expenditures; and/or (3) reporting possible violations of criminal statutes involving misuse of State property to the State Bureau of Investigation, in accordance with N.C.G.S. § 143B-920. c. Notice Period. Upon determination of noncompliance with requirements of this Agreement that are not indicative of management deficiencies or criminal activity, NCDIT shall give the Grantee sixty (60) days written notice to take corrective action. If the Grantee has not taken the appropriate corrective action after the 60-day period, NCDIT shall notify the Office of State Budget and Management and take the appropriate action or actions, including without limitation: (1) suspending payments pending negotiation of a plan of corrective action; (2) terminating the contract and taking action to retrieve unexpended funds or unauthorized expenditures; and/or (3) offsetting future payments with any amounts improperly spent. Section 7.6. Termination due to Unavailability of Funds. If funds for the Project become unavailable for any reason, including without limitation, a change in the State or federal laws, NCDIT and/or the County shall have the right to terminate this Agreement after giving the Grantee written notice of termination of this Agreement at least twenty (20) calendar days in advance of the Termination Date. The notice of termination shall contain the effective Termination Date of this Agreement. Upon notice, the Grantee shall not expend any GREAT Award funds without NCDIT’s express written authorization. Upon termination of this Agreement, neither NCDIT nor the County shall have any responsibility to make additional payments to the Grantee. Article 8. General Conditions. Section 8.1. Representations and Warranties. a. The Parties’ Representations and Warranties. The Parties acknowledge that each has been represented in negotiations for, and the preparation of, this Agreement by counsel of its own choosing (or has had the opportunity to retain counsel for those purposes), that each has read this Agreement or has had it read to them and explained HCBOC 121223 ws revised Pg. 57 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 29 by counsel, that each understands and is fully aware of its contents and of its legal effect, that each is knowingly and voluntarily entering into this Agreement. The execution and performance of this Agreement have been duly authorized by all necessary laws, resolutions and entity action, and this Agreement constitutes the valid and enforceable obligations of the Parties in accordance with its terms. Each Party and its respective signatory hereto avers that its signatory is authorized, empowered, and directed on behalf of the Party to execute this Agreement and thereby bind the Party and others as set forth in Section 8.5 of this Agreement. b. Grantee’s Representations and Warranties. The Grantee hereby represents and warrants that: i. There is no action, suit proceeding, or investigation at law or in equity or before any court, public board or body pending, or to the knowledge of the Grantee, threatened against or affecting it that could or might adversely affect the Project or any of the transactions contemplated by this Agreement the validity or enforceability of this Agreement, or the abilities of the Grantee to discharge their obligations under this Agreement. If it is subsequently found that an action, suit, proceeding, or investigation did or could threaten or affect the development of the Project, Grantors may require repayment from the Grantee based on Section 3.4, Article 7, and Section 8.4 of this Agreement and this Agreement may be terminated by Grantors effective upon notice. ii. No consent or approval is necessary from any governmental authority as a condition to the execution and delivery of this Agreement by the Grantee or the performance of any of its obligations hereunder, or all such requisite governmental consents or approvals have been obtained. The Grantee shall provide NCDIT with evidence of the existence of any such necessary consents or approvals at the time of the execution of this Agreement. iii. The Grantee is solvent, is financially capable of performing the Project responsibilities, is a going concern, is duly authorized to do business under North Carolina law, and is not delinquent on any federal, state, or local taxes, licenses, or fees. If it is subsequently found that the Grantee was not solvent, was not financially capable of performing its Project responsibilities, was delinquent on its federal, state or local taxes, licenses or fees or, if applicable, was not a going concern or was not duly authorized to do business under North Carolina law, Grantors may require repayment from the Grantee based on Section 3.4, Article 7, and Section 8.4 of this Agreement. Section 8.2. Indemnification. The Grantee hereby agrees to release, indemnify and hold harmless the State (including, without limitation, NCDIT) and the County, and their respective members, HCBOC 121223 ws revised Pg. 58 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 30 officers, directors, employees, agents and attorneys (together, the “Indemnified Parties”), from any claims of third parties arising out of any act or omission of the Grantee or any third party in connection with the performance of this Agreement or the Project, and for all losses arising from their implementation. Without limiting the foregoing, the Grantee hereby releases the Indemnified Parties from, and agrees that such Indemnified Parties are not liable for, and agrees to indemnify and hold harmless the Indemnified Parties against, any and all liability or loss, cost or expense, including, without limitation, reasonable attorneys’ fees, fines, penalties and civil judgments, resulting from or arising out of or in connection with or pertaining to, any loss or damage to property or any injury to or death of any person occurring in connection with the Project, or resulting from any defect in the fixtures, machinery, equipment or other property used in connection with the Project or arising out of, pertaining to, or having any connection with, the Project or the financing thereof (whether arising out of acts, omissions, or negligence of the Grantee or of any third party or of any of their agents, Grantees, servants, employees, licensees, lessees, or assignees), including any claims and losses accruing to or resulting from any and all subgrantees, subcontractors, material men, laborers and any other person, firm or corporation furnishing or supplying work, services, materials or supplies in connection with the Project. Section 8.3. Insurance. The Grantee must provide the equivalent insurance coverage for real property and equipment acquired or improved with this award as provided to property owned by the Grantee. In addition, the Grantee, must, at a minimum, provide and maintain during the term of this Agreement insurance coverage that meets the following coverage and limit requirements: a. Small Purchases Requirements. For Small Purchases as defined under 01 N.C.A.C. 05A .0112(35) and 05B .0301(1), the minimum applicable insurance requirements for Worker’s Compensation and Automobile Liability will apply as required by North Carolina law. The Purchasing Agency may require Commercial General Liability coverage consistent with the assessed risks involved in the procurement. b. Requirements for Contracts Between Small Purchase and $1,000,000.00. For Contracts valued in excess of the Small Purchase threshold, but up to $1,000,000.00 the following limits shall apply: 1. Worker’s Compensation - The Grantee shall provide and maintain Worker’s Compensation Insurance, as may be required by the laws of North Carolina, as well as employer’s liability coverage, with minimum limits of $250,000.00, covering all of Grantee’s employees who are engaged in any work under the Contract in North Carolina. If any work is sub-Contracted, the Grantee shall require the sub- contractor to provide the same coverage for any of its employees engaged in any work under the Contract within the State. HCBOC 121223 ws revised Pg. 59 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 31 2. Commercial General Liability - General Liability Coverage on a Comprehensive Broad Form on an occurrence basis in the minimum amount of $500,000.00 Combined Single Limit. Defense costs shall be in excess of the limit of liability. 3. Automobile - Automobile Liability Insurance, to include liability coverage covering all owned, hired, and non-owned vehicles, used within North Carolina in connection with the Contract. The minimum combined single limit shall be $250,000.00 bodily injury and property damage; $250,000.00 uninsured/under insured motorist; and $2,500.00 medical payment. c. Requirements for Contracts in Excess of $1,000,000.00. For Contracts valued in excess of $1,000,000.00 the following limits shall apply: 1. Worker’s Compensation - The Grantee shall provide and maintain Worker’s Compensation Insurance, as may be required by the laws of North Carolina, as well as employer’s liability coverage, with minimum limits of $500,000.00, covering all of Grantee’s employees who are engaged in any work under the Contract in North Carolina. If any work is sub-Contracted, the Grantee shall require the sub- contractor to provide the same coverage for any of its employees engaged in any work under the Contract within the State. 2. Commercial General Liability - General Liability Coverage on a Comprehensive Broad Form on an occurrence basis in the minimum amount of $1,000,000.00 Combined Single Limit. Defense costs shall be in excess of the limit of liability. 3. Automobile - Automobile Liability Insurance, to include liability coverage covering all owned, hired and non-owned vehicles, used within North Carolina in connection with the Contract. The minimum combined single limit shall be $500,000.00 bodily injury and property damage; $500,000.00 uninsured/under insured motorist; and $5,000.00 medical payment. The Grantee’s insurance coverage shall meet all laws of the State of North Carolina. Such insurance coverage shall be obtained from companies that are authorized to provide such coverage and that are authorized by the NC Commissioner of Insurance to do business in North Carolina. The Grantee shall at all times comply with the terms of such insurance policies, and all requirements of the insurer under any such insurance policies, except as they may conflict with existing North Carolina laws or this Agreement. If the Grantee fails at any time to maintain and keep in force the required insurance, and such default is not cured within ten (10) calendar days of the receipt of written notice of such default, then Grantors may cancel and terminate this Agreement on any future date after giving the Grantee written notice of termination of this Agreement. The limits of coverage under each insurance policy maintained by the Grantee shall not be interpreted as limiting the Grantee’s liability and obligations or the indemnification requirements under this Agreement. HCBOC 121223 ws revised Pg. 60 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 32 The insurer must provide NCDIT with a Certificate of Insurance reflecting the coverages required in this Section. All Certificates of Insurance shall reflect thirty (30) days written notice by the insurer in the event of cancellation, reduction, or other modification of coverage. In addition to this notice requirement, the Grantee must provide NCDIT prompt written notice of cancellation, reduction, or material modification of coverage of insurance. If the Grantee fails to provide such notice, the Grantee assumes sole responsibility for all losses incurred by Grantors for which insurance would have provided coverage. Section 8.4. Cessation, Bankruptcy, Dissolution, or Insolvency. a. Merger, Consolidation, or Sale. The Grantee agrees at all times to preserve its legal existence, except that it may merge or consolidate with or into, or sell all or substantially all of its assets to, any entity that expressly undertakes, assumes for itself and agrees in writing to be bound by all of the obligations and undertakings of the Grantee contained in this Agreement, subject to the prior written consent of Grantors if such action constitutes an assignment of the Grantee’s obligations under this Agreement. If the Grantee so merges, consolidates, or sells its assets without such an undertaking being provided, it agrees under Section 3.4, Article 7, and this Section of this Agreement to make that payment due under this Agreement to Grantors, upon request and as directed. Further, a merger, consolidation or sale without such an undertaking shall constitute a material default under this Agreement, and Grantors may terminate this Agreement upon written notice to the Grantee and hold the Grantee liable for any such payment provided for under Section 3.4, Article 7, and this Section of this Agreement. b. Notice of Cessation, Bankruptcy, Dissolution, or Insolvency. Other than as provided for in this Section, if the Grantee ceases to do business or becomes the subject of any bankruptcy, dissolution or insolvency proceeding prior to the Termination Date, the Grantee shall give Grantors immediate notice of the event, and shall pay the amount provided under Section 3.4, Article 7, and this Section of this Agreement to Grantors, upon request, as directed and without regard to whether the effective period in Section 3.1 has yet to expire, but only if to make such payment is permissible under applicable bankruptcy, dissolution or insolvency law. c. Remedies on Failure to Provide Notice. If the Grantee fails to provide Grantors notice of ceasing to do business or becoming the subject of any bankruptcy, dissolution or insolvency proceeding prior to the Termination Date, it shall constitute a material breach under this Agreement. If there is such a cessation or such a proceeding, Grantors may terminate this Agreement upon written notice to the Grantee pursuant to Section 7.1. Upon such termination, the Grantee shall pay the applicable clawback amount to Grantors upon request, as directed and without regard to whether the effective period in Section 3.1 has yet to expire, but only if to make such payment is permissible under HCBOC 121223 ws revised Pg. 61 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 33 applicable bankruptcy, dissolution or insolvency law and, if the matter is under the jurisdiction of a Bankruptcy Court, with approval of the Bankruptcy Court. Section 8.5. Binding Effect. The Terms of this Agreement are and shall be binding upon each of the Parties hereto, their heirs, executives, representatives, agents, attorneys, partners, successors, predecessors-in-interest, members, managers, member-managers, and assigns, and upon all other persons claiming any interest in the subject matter hereto through any of the Parties. The Grantee must disclose this Agreement to any such person or entity described in this Section. Section 8.6. Entire Agreement. This Agreement contains the entire agreement between the Parties pertaining to the subject matter of this Agreement. This Agreement supersedes all prior agreements between or among the Parties with regard to the Project and expresses the Parties’ entire understanding with respect to the transactions contemplated herein, and shall not be amended, modified or altered except pursuant to the provisions set forth in Section 2.5. Section 8.7. Titles and Headings. Titles and Headings in this Contract are used for convenience only and do not define, limit, or proscribe the language of terms identified by such Titles and Headings. Section 8.8. Severability. Each provision of this Agreement is intended to be severable and, if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect or impair any other provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had not been contained herein and the remainder of this Agreement shall remain in full force and effect to the extent permitted by law. Section 8.9. Independent Status of the State, the County, the Grantee, and Any Third Parties. a. Independent Entities. The State (including, without limitation, NCDIT), the County, and the Grantee are independent entities from one another and from any third party. This Agreement, the Project, and any actions taken pursuant to them shall not be deemed to create a partnership or joint venture between the State, the County and the Grantee or between or among either of them or any third party. Nor shall this Agreement or the Project be construed to make any employees, agents or members of the Grantee or any third party into employees, agents, members or officials of the State or the County or to make employees, agents, members or officials of the Grantee into employees, agents, members or officials of the State or the County. Neither the Grantee nor any third party shall have the ability to bind the State or the County to any agreement for payment of goods or services or represent to any person that they have such ability. Nor shall the Grantee have the ability to bind the State or the County to any agreement for payment of goods or services or represent to any person that it has such ability. HCBOC 121223 ws revised Pg. 62 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 34 b. Grantees Responsibility for Expense and Insurance. The Grantee and any third party shall be responsible for payment of all their expenses, including rent, office expenses and all forms of compensation to their employees. The Grantee and any third parties shall provide worker's compensation insurance to the extent required for their operations and shall accept full responsibility for payments of unemployment tax or compensation, social security, income taxes, and any other charges, taxes or payroll deductions required by law in connection with their operations, for themselves and their employees who are performing work pursuant to this Project. All expenses incurred by the Grantee, or any third party are their sole responsibilities, and neither the State (including, without limitation, NCDIT) nor the County shall be liable for the payment of any obligations incurred in the performance of the Project. Section 8.10. Non-Assignability. The Grantee shall not assign or transfer any interest in this Agreement without the prior written consent of Grantors. Claims for money due to the Grantee from Grantors under this Agreement may be assigned to any commercial bank or other financial institution with Grantors’ prior written approval. To the extent that Grantors provide written approval to the Grantee to assign or transfer any interest in this Agreement, the Grantee is not relieved of any of the duties and responsibilities of this Agreement and shall obtain agreement from the assignee to abide by the standards contained in 09 N.C.A.C. 03M. Unless Grantors otherwise agree in writing, the Grantee and all assigns are subject to all Grantors’ defenses and are liable for all the Grantee’s duties that arise from this Agreement and all Grantors’ claims that arise from this Agreement. Section 8.11. Subcontracting. The Grantee shall provide, upon request by Grantors, copies of any agreements made by and between the Grantee and any subcontractors for the purpose of performing services to fulfill the Grantee’s obligations under this Agreement. The Grantee remains responsible for and is not relieved of any of the duties and responsibilities of this Agreement. The Grantee remains solely responsible for the performance of its subcontractors. Subcontractors, if any, shall adhere to the same standards required of the selected Grantee, including those in 09 N.C.A.C. 03M, and shall provide information in their possession that is needed by the Grantee to comply with these standards. NCDIT is indemnified by the Grantee for any claim presented by a subcontractor, and any contracts made by the Grantee with a subcontractor after the Effective Date of this Agreement for performance of work under this Agreement shall include an affirmative statement that the State and the County are intended third- party beneficiaries of the contract; that the subcontractor has no agreement with the State or the County; and that the State and the County shall be indemnified by the Grantee for any claim presented by the subcontractor. Notwithstanding any other term herein, the Grantee shall timely exercise its contractual remedies against any non-performing subcontractor and, when appropriate, substitute another subcontractor. HCBOC 121223 ws revised Pg. 63 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 35 Section 8.12. No Waiver by the State or the County. Failure of the State (including, without limitation, NCDIT) and/or the County at any time to require performance of any term or provision of this Agreement shall in no manner affect the rights of the State at a later date to enforce the same or to enforce any future compliance with or performance of any of the terms or provisions hereof. No waiver of the State or the County of any condition or the breach of any term, provision or representation contained in this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be or construed as a further or continuing waiver of any such condition or of the breach of that or any other term, provision or representation. No action or failure to act by the State or the County constitutes a waiver of any of its rights or remedies that arise out of this Agreement, nor shall such action or failure to act constitute approval of or acquiescence in a breach of this Agreement, except as specifically agreed in writing. Section 8.13. Notices. All notices required or permitted by this Agreement shall be in writing and shall be deemed given when (i) sent via electronic mail with delivery confirmation requested; or (ii) when deposited in the United States mail, certified, return receipt requested, first class, postage prepaid. Notices shall be addressed as follows: If to NCDIT via US mail: Attn: Cc: If to NCDIT via Email If to the County via US mail: Attn: Director, Broadband Infrastructure Office North Carolina Department of Information Technology NC Broadband Infrastructure Office P.O. Box 17209 Raleigh, North Carolina 27619-7209 Creecy Johnson, Legal Counsel North Carolina Department of Information Technology NC Broadband Infrastructure Office P.O. Box 17209 Raleigh, North Carolina 27619-7209 greatgrant@nc.gov creecy.johnson@nc.gov Brent Trout, County Manager Harnett County P.O. Box 759 Lillington, NC 27546 HCBOC 121223 ws revised Pg. 64 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 36 If to County via Email btrout@harnett.org If to the Grantee via US Mail Pamela Sherwood Connect Holding II, LLC dba Brightspeed 1120 South Tryon Street, Suite 700 Charlotte, NC 28203 If to the Grantee via Email: Pamela.sherwood@brightspeed.com If, at any time during the term of this Agreement, the Grantee’s Authorized Representative changes from the individual identified in this Agreement, the Grantee must provide written notice of such change to Grantors pursuant to this Section within ten (10) calendar days of any such change. Section 8.14. Public Records Act Compliance and Confidentiality. The Grantee may designate appropriate portions of documents or information provided to NCDIT as confidential, consistent with and only to the extent permitted under N.C. Gen. Stat. § 132-1, et seq. or other applicable law, by marking the top and bottom of each page containing confidential information with the following legend in boldface type: “CONFIDENTIAL”. By so marking any page, the Grantee warrants that it has formed a good faith belief that the portions marked “CONFIDENTIAL” meet the requirements of the applicable law. NCDIT may serve as custodian of Grantee’s confidential information and not as arbiter of claims against its assertion of confidentiality. In the event that NCDIT is served with a subpoena, discovery request, or public record request for information that has been designated by the Grantee as confidential information, NCDIT shall forward written notification thereof to the Grantee, along with the subpoena or other request. NCDIT shall not, pursuant to the subpoena or other request, produce documents or information designated by the Grantee as confidential information without Grantee’s written consent or unless ordered to do so by a court of competent jurisdiction. Section 8.15. Dispute Resolution. The Parties agree that it is in their mutual interest to resolve disputes informally. The Parties shall negotiate in good faith and use all reasonable efforts to resolve such dispute(s). During the time the Parties are attempting to resolve any dispute, each shall proceed diligently to perform their respective duties and responsibilities under this Contract. If a dispute cannot be resolved between the Parties after a reasonable period, either Party may elect to exercise any other remedies available under this Contract, or at law. This term shall not constitute an agreement by either party to mediate or arbitrate any dispute. Section 8.16. Waiver of Objections to Timeliness of Legal Action. The Grantee knowingly HCBOC 121223 ws revised Pg. 65 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 37 waives any objections it has or may have to timeliness of any legal action (including any administrative petition or civil action) by the State (including, without limitation, NCDIT) and/or the County to enforce its rights under this Agreement. This waiver includes any objections the Grantee may possess based on the statutes of limitations or repose and the doctrines of estoppel or laches. Section 8.17. Force Majeure. Except as provided for herein, no Party shall be deemed to be in default of its obligations hereunder if and so long as it is prevented from performing such obligations as a result of events beyond its reasonable control, including without limitation, fire, power failures, any act of war, hostile foreign action, nuclear explosion, riot, strikes or failures or refusals to perform under subcontracts, civil insurrection, flood, earthquake, hurricane, tornado, epidemic, pandemic, or other catastrophic natural event or act of God. Section 8.18. Construction, Jurisdiction and Venue. This Agreement shall be construed and governed by the laws of the State of North Carolina. The Parties agree and submit, solely for matters concerning this Agreement, to the exclusive jurisdiction of the courts of North Carolina and agree, solely for such purposes, that the only venue for any legal proceedings shall be Wake County, North Carolina. The place of this Agreement, and all transactions and agreements relating to it, and their situs and forum, shall be Wake County, North Carolina, where all matters, whether sounding in contract, tort, or otherwise, relating to its validity, construction, interpretation, and enforcement, shall be determined. Section 8.19. Execution. This Agreement may be executed in one or more counterparts, each of which, when executed, shall be deemed an original, and such counterparts, together, shall constitute one and the same Grant Agreement which shall be sufficiently evidenced by one of such original counterparts. Section 8.20. Agreement Overturned by Tribunal, Judge or Court. In the event of a final decision or other ruling entered by a tribunal, judge or court against NCDIT that sets this Agreement aside or otherwise requires that this Agreement be withdrawn, terminated, canceled, and/or awarded to another entity, the Parties hereby mutually agree as follows: a. Immediate Termination of Agreement. This Agreement shall terminate immediately upon the entry of a final decision or other ruling against NCDIT by a tribunal, judge or court, that substantially impairs the Parties’ abilities to perform the terms of this Agreement, notwithstanding the termination provisions in Article 7 of this Agreement. Such termination shall not eliminate or otherwise impact the Grantee’s reporting obligations as set forth in this Agreement, including without limitation the post- termination reporting requirements in Section 2.4.d of this Agreement. b. NCDIT Reimbursement Obligations. NCDIT shall reimburse the Grantee only for Eligible Expenditures, in accordance with the terms of this Agreement, that the Grantee has incurred up to, but not including, the date a final decision or other ruling is entered HCBOC 121223 ws revised Pg. 66 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 38 by a tribunal, judge or court against NCDIT. Under no circumstances shall NCDIT reimburse the Grantee for any Eligible Expenditures that the Grantee incurs on or after the date a final decision or other ruling is entered by a tribunal, judge, or court against NCDIT. c. County Matching Funds Obligations. If this Agreement is terminated pursuant to this Section 8.20 before the end of the Construction Period, the County shall have no obligation to pay any matching funds to the Grantee. d. Performance Enjoined. If, during the course of a proceeding challenging the Department’s decision to contract with the Grantee for its Project, a tribunal, judge or court enjoins the performance of any Party to the Agreement, the Parties’ respective obligations under the Agreement and the performance thereof shall immediately be suspended and shall remain suspended until such injunction is lifted or otherwise dissolved by a tribunal, judge, or court or the Agreement is immediately terminated in accordance with Section 8.20.a. e. Resumption of Performance. In the event that a tribunal, judge or court enjoins the performance of any Party to the Agreement, and at such later date the injunction is lifted or otherwise dissolved, the Parties recognize that some reasonable timeframe may be required to return furloughed workers to the jobsite to continue performance under the Agreement. Therefore, in such a situation, the Parties will agree to a reasonable timeframe to resume performance under this Agreement, from the date the injunction is lifted, without incurring any time-delay penalties otherwise applicable outside of Section 8.20. f. Mutual Release and Covenant Not to Sue. Each Party releases and forever discharges each other Party from, and shall never institute any lawsuit or other action against any other Party based upon any claim or cause of action that arises out of a final decision or other ruling entered by tribunal, judge or court against NCDIT that sets this Agreement aside or otherwise requires that this Agreement be withdrawn, terminated, canceled, and/or awarded to another entity. This mutual release and covenant not to sue in no way waives any claims arising from any Party’s breach of this Agreement itself. g. Conflicts Resolved. In the event of a conflict between any provisions of this Agreement and this Section 8.20, the provisions in Section 8.20 of this Agreement shall control where a tribunal, judge or court enjoins the performance of any Party to this Agreement and/or enters a final decision or other ruling against NCDIT that sets this Agreement aside or otherwise requires that this Agreement be withdrawn, terminated, canceled, and/or awarded to another entity. Section 8.21. Acceptance. If the Grantee and the County agree to the conditions as stated, please execute this Agreement via AdobeSign. This Agreement may be withdrawn if NCDIT has not HCBOC 121223 ws revised Pg. 67 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 39 received the executed Agreement within thirty (30) days from the date of the cover letter from NCDIT to the Grantee and the County accompanying this Agreement and Grantee Exhibits. IN WITNESSETH WHEREOF, the Parties, intending to be legally bound hereby, have read, signed, and caused this Agreement to be executed. Connect Holding II, LLC dba Brightspeed Signature: Printed Name: Title: Date: Harnett County Signature: Printed Name: Title: Date: HCBOC 121223 ws revised Pg. 68 STATE OF NORTH CAROLINA Agreement #2000072237 COUNTY OF WAKE Growing Rural Economies with Access to Technology Agreement NCDIT Broadband Infrastructure Office Program 40 NC Department of Information Technology Signature: Printed Name: Nathaniel Denny Title: Deputy Secretary for the Division of Broadband and Digital Equity NC Department of Information Technology Date: HCBOC 121223 ws revised Pg. 69 Exhibit A NCDIT Disclosures A-1 2 C.F.R. 200.332 Required Disclosures Disclosure Contract Location (1) Federal award identification. Subrecipient name Section 1.1 Subrecipient's unique entity identifier; Cover letter; Exhibit B Federal Award Identification Number (FAIN); Section 1.4 Federal Award Date of award to the recipient by the Federal agency; Cover letter; Subaward Period of Performance Start and End Date; Sections 1.7 – 1.9 Subaward Budget Period Start and End Date; Section 2.1; Exhibit B Amount of Federal Funds Obligated by this action by the pass- through entity to the subrecipient; Section 2.2.a.; Exhibit B Total Amount of Federal Funds Obligated to the subrecipient by the pass-through entity including the current financial obligation; Section 1.4; Exhibit B Total Amount of the Federal Award committed to the subrecipient by the pass-through entity; Section 1.4; Exhibit B Federal award project description, as required to be responsive to the Federal Funding Accountability and Transparency Act (FFATA); Section 1.3 Name of Federal awarding agency, pass-through entity, and contact information for awarding official of the Pass-through entity; Sections 1.1; 8.13 Assistance Listings number and Title; the pass-through entity must identify the dollar amount made available under each Federal award and the Assistance Listings Number at time of disbursement; Section 1.4 Identification of whether the award is R&D; and No Indirect cost rate for the Federal award per § 200.414. Not Applicable (2) All requirements imposed by the pass-through entity on the subrecipient so that the Federal award is used in accordance with Federal statutes, regulations and the terms and conditions of the Federal award; Section 1.3 (3) Any additional requirements that the pass-through entity imposes on the subrecipient in order for the pass-through entity to meet its own responsibility to the Federal awarding agency including identification of any required financial and performance reports; Sections 2.3/2.4; 5.5; 6.6 (4) An approved federally recognized indirect cost rate negotiated between the subrecipient and the Federal Government. If no approved rate exists, the pass-through entity must determine the appropriate rate in collaboration with the subrecipient; N/A (5) A requirement that the subrecipient permit the pass-through entity and auditors to have access to the subrecipient's records and financial statements as necessary for the pass-through entity to meet the requirements of this part; and Section 5.5 HCBOC 121223 ws revised Pg. 70 Exhibit A NCDIT Disclosures A-2 (6) Appropriate terms and conditions concerning closeout of the subaward. Sections 4.6; 7.4 09 NCAC 03M .0703 Required Contract Provisions Provision Contract Location (1) A specification of the purpose of the award, services to be provided, objectives to be achieved, and expected results; Section 1.3 (2) The source of funds (such as federal or state) must be identified, including the CFDA number and percentages of each source where applicable. Section 1.4 (3) Account coding information sufficient to provide for tracking of the disbursement through the disbursing agency's accounting system. Cover Letter; Agreement Header (4) Agreement to maintain all pertinent records for a period of five years or until all audit exceptions have been resolved, whichever is longer. Section 2.3/2.4 (5) Names of all parties to the terms of the contract. For the recipient or subrecipient, each contract shall contain the employer/tax identification number, address, contact information, and the recipient's or subrecipient's fiscal year end date. Sections 1.1; 8.13 (6) Signatures binding all parties to the terms of the contract. Section 8.19 (7) Duration of the contract, including the effective and termination dates. Section 1.7 (8) Amount of the contract and schedule of payment(s). Section 2.2; Exhibit F (9) Particular duties of the recipient. Section 2.3/2.4 (10) Required reports and reporting deadlines. Exhibit D (11) Provisions for termination by mutual consent with 60 days written notice to the other party, or as otherwise provided by law. Section 7.3 (12) A provision that the awarding of State financial assistance is subject to allocation and appropriation of funds to the agency for the purposes set forth in the contract. Sections 2.2; 2.4 (13) Provision that requires reversion of unexpended State financial assistance to the agency upon termination of the contract. Sections 2.3/2.4; 2.5; 3.4 (14) A provision that requires compliance with the requirements set forth in this Subchapter, including audit oversight by the Office of the State Auditor, access to the accounting records by both the funding entity and the Office of the State Auditor, and availability of audit work papers in the possession of any auditor of any recipient of State funding. Sections 2.3/2.4; 4.5; 5.1; 5.2; 5.3; 5.5 (15) A clause addressing assignability and subcontracting, including the following: HCBOC 121223 ws revised Pg. 71 Exhibit A NCDIT Disclosures A-3 (a) The recipient or subrecipient is not relieved of any of the duties and responsibilities of the original contract. Section 8.11 (b) The subrecipient agrees to abide by the standards contained in this Subchapter and to provide information in its possession that is needed by the recipient to comply with these standards. Article 6; Section 8.11 Public Records Statement Pursuant to N.C. General Statutes, Chapter 132, public records and public information compiled by the agencies of North Carolina government or its subdivisions are the property of the people. Therefore, it is the policy of this State that the people may obtain copies of their public records and public information free or at minimal cost unless otherwise specifically provided by law. Except as otherwise designated under N.C.G.S. 132-1.2 (Confidential Information), public records shall mean all documents, papers, letters, maps, books, photographs, films, sound recordings, magnetic or other tapes, electronic data-processing records, artifacts, or other documentary material, regardless of physical form or characteristics, made or received pursuant to law or ordinance in connection with the transaction of public business by any agency of North Carolina government or its subdivisions. Policies All policies of NCDIT will be made available upon request. HCBOC 121223 ws revised Pg. 72 Exhibit B Scope of Services B-1 Grantee, Connect Holding II, LLC d/b/a Brightspeed, Application # 1000013882 (Harnett County), will carry out the terms of this contract as follows: 1. Scope of the Project The Grantee shall deploy infrastructure to the approved Locations required by this Agreement and, upon completion of construction, shall offer to those Locations the minimum download and upload speeds identified in the Grantee’s application as the base speed multiplier. The base speed multiplier chosen by the applicant is the minimum speed made available to all Locations in the Project and must be scalable to 100 Mbps symmetrical by December 31, 2026. 2. Project Budget The proposed budget attached as page 2 to this Exhibit and the budget information submitted in EBS by the Grantee is incorporated herein by reference and approved by NCDIT. Any changes to the project budget must be made in compliance with Section 2.5 of this Agreement. A change of 10% or more constitutes a Material Change and an Amendment to this Agreement is required. A change of less than 10% constitutes a Project Change and the criteria of Section 2.5.b. must be met, approved, and attached as a supplement to this Exhibit. Project Expenses GREAT Award (ARPA) Matching Amount (ISP Fund) Total Easements $9,740.00 $15,260.00 $25,000.00 Materials $994,256.00 $1,557,678.00 $2,551,934.00 Construction/Installation $2,913,873.00 $4,565,098.00 $7,478,971.00 Testing $1,948.00 $3,052.00 $5,000.00 Engineering Lease/Collocation Fees (one- time fees) Other – Permitting/Right of Way $80,183.00 $125,619.00 $205,802.00 Other Other Total $4,000,000.00 $6,266,707.00 $10,266,707.00 Match Percentage 85% 15% 100% 3. GREAT Award and Matching Funds The GREAT Award amount in paragraph 2 above and as stated in Section 2.2 of this Agreement is incorporated herein. Any third-party match shall not exceed 50% of the Grantee’s Match Amount. Such amount shall be set out in Exhibit J or a separate two-party agreement. HCBOC 121223 ws revised Pg. 73 Exhibit B Scope of Services B-2 4. Locations The Grantee must make broadband service available to all households and businesses approved for this Project. The household and business locations represent address-level locations submitted in the GREAT Grant Program Application and any adjustments due to the protest process or ineligible locations, as required by NCDIT. A data file of locations approved by NCDIT for this Project is reflected within Exhibit I. Broadband deployments must make broadband service available to the total number of locations outlined in the table below. Households: 4612 Businesses: 161 Total Locations: 4773 HCBOC 121223 ws revised Pg. 74 Exhibit C Project Milestones C-1 Documentation for deliverables should accompany the relevant progress report and other requested documentation, demonstrating the achievement of the milestones for the following Periods: Milestone Description • Initial status of the engineering and design of the project • Initial list of agreements, permits, or contractual arrangements that must be acquired or executed in order to construct or deploy infrastructure/equipment Reported in Q1 Progress Report • Status of the engineering and design of the project • List and status of agreements, permits, or contractual arrangements that must be acquired or executed in order to construct or deploy infrastructure/equipment Reported in Q2 Progress Report • Minimum of at least one Reimbursement Request has been submitted Submission of Reimbursement Request by June 30, 2024 • Evidence of the start of construction • Status of the engineering and design of the project • List and status of agreements, permits, or contractual arrangements that must be acquired or executed in order to construct or deploy infrastructure/equipment Reported in Q4 Progress Report • Minimum of two cumulative Reimbursement Requests have been submitted Submission of Reimbursement Request by December 31, 2024 • Status of the engineering and design of the project • List and status of agreements, permits, or contractual arrangements that must be acquired or executed in order to construct or deploy infrastructure/equipment • Access is available to 10% of the locations with submission of addresses in the format designated by the Office Reported in Q6 Progress Report • Status of the engineering and design of the project • List and status of agreements, permits, or contractual arrangements that must be acquired or executed in order to construct or deploy infrastructure/equipment Reported in Q7 Progress Report • Completion of the Construction Period • Access is available to 100% of the locations with submission of addresses in the format designated by the Office. • Beginning of Maintenance Period Reported in Q8 Final Report for End of Construction Period • All reimbursement requests have been submitted Final submission of Reimbursement Request by October 15, 2025 • Submittal of an attestation specified in Sections 2.3.a and 2.3.d (2 party) or 2.4.a. and 2.4.d. (3 party) Reported in Y1 Annual Report • Submittal of an attestation specified in Sections 2.3.a and 2.3.d (2 party) or 2.4.a. and 2.4.d. (3 party) Reported in Y2 Annual Report • Submittal of an attestation specified in Sections 2.3.a and 2.3.d (2 party) or 2.4.a. and 2.4.d. (3 party) Reported in Y3 Annual Report HCBOC 121223 ws revised Pg. 75 Exhibit D Reporting Schedule for Progress Reports D-1 The Grantee is required to submit progress reports based on the following schedule: Reporting Period Due Date Report Type Effective date to December 31, 2023 1/15/24 Q1 Progress Report January 1, 2024 to March 31, 2024 4/15/24 Q2 Progress Report April 1, 2024 to June 30, 2024 7/15/24 Q3 Progress Report July 1, 2024 to September 30, 2024 10/15/24 Q4 Progress Report October 1, 2024 to December 31, 2024 1/15/25 Q5 Progress Report January 1, 2025 to March 31, 2025 4/15/25 Q6 Progress Report April 1, 2025 to June 30, 2025 7/15/25 Q7 Progress Report July 1, 2025 to September 30, 2025 10/15/25 Q8 Final Report Form for End of Construction Period October 1, 2025 to September 30, 2026 10/15/26 Y1 Annual Progress Report (Maintenance Period) October 1, 2026 to September 30, 2027 10/15/27 Y2 Annual Progress Report (Maintenance Period) October 1, 2027 to September 30, 2028 10/15/28 Y3 Annual Progress Report (Maintenance Period) The Grantee shall submit at minimum a quarterly report during the Construction Period, and at minimum an annual report during the Maintenance Period. The schedule above assumes a full two-year construction period. Grantee may move from a quarterly to an annual reporting period prior to the date above, if the construction period of the project is completed early. The final report is due at the time of Project completion or no later than 30 days after the grant end-date, whichever is sooner. The reporting schedule remains in effect for the duration of the grant. The Grantee shall submit its Conflict of Interest Policy to NCDIT prior to disbursement of the first payment. At any time during these reporting cycles, the Grantee may be required to submit additional information as outlined in Section 2.3.a./2.4.a. (Broadband Access and Speeds), and Section 2.3.c./2.4.a. (Project Milestones and Progress Reports) of this Agreement. The final quarterly progress report documentation is due at the time of the end of the Construction Period or no later than 30 days after the Construction Period end-date, whichever is sooner. The reporting schedule remains in effect for the duration of the grant. Should this Agreement terminate in accordance with Section 8.20 of the Agreement, the Grantee’s final progress report is due no later than 30 days after a final decision or other ruling is entered by a tribunal, judge or court. HCBOC 121223 ws revised Pg. 76 Exhibit D Reporting Schedule for Progress Reports D-2 No Overdue Tax Certification Reporting Period and Due Date The Grantee shall submit, on an annual basis in accordance with the table below, an updated No Overdue Tax Certification for all funds received by NCDIT. A copy of this certification will be kept along with this Grant Agreement by NCDIT and made available for review pursuant to Section 5.5 of this Grant Agreement. Reporting Period Due Date January 1, 2023 to December 31, 2023 1/31/24 January 1, 2024 to December 31, 2024 1/31/25 January 1, 2025 to December 31, 2025 1/31/26 January 1, 2026 to December 31, 2026 1/31/27 January 1, 2027 to December 31, 2027 1/31/28 Failure to submit progress reports and No Overdue Tax Certification as required may result in one more of the following actions: 1. non-payment of payment requests; 2. termination of the grant; 3. immediate repayment of any funds paid pursuant to this Grant Agreement; and 4. negatively impact Grantee’s eligibility for future NC Department of Information Technology grants. HCBOC 121223 ws revised Pg. 77 Exhibit E Progress Report Template (Template may be revised based on program needs or risk assessment - For current version see GREAT Grant Management Documents (Federal) | ncbroadband.gov) E-1 GREAT GRANT PROGRAM Progress Report Form for the Construction Period PROJECT UPDATES Please provide progress a description of accomplishments achieved and problems or delay encountered during this reporting period on the categories below. Design/Engineering: Provide a rough estimate of how much of the design/engineering work has been completed for the total project (including all project areas). (Please check one.) Provide any updates or challenges with the design/engineering work for this project. • ____ Less than 25% complete • ____ 25-75% complete • ____ 75-99.9% complete • ____ 100% complete Securing Assets: Provide any updates on securing the following relevant items: rights-of-way; easements; other land; access to poles and completion of make-ready work; access to towers. Provide any challenges that may significantly impact your project design. For WISPs, please list the actual macro towers being utilized and whether leases have been secured. GRANTEE INFORMATION (to be completed by Grantee) Grantee Name: Project Contact Completing this Form: Title: Primary Telephone: Email: Reporting Period Contract Information From: Grant Agreement#: (date) Project Title: To: (date) Project County: UPLOAD PROGRESS REPORTS TO EBS.NC.GOV Technology Type: DOWNLOAD - HOW TO SUBMIT PROGRESS REPORTS HCBOC 121223 ws revised Pg. 78 Exhibit E Progress Report Template (Template may be revised based on program needs or risk assessment - For current version see GREAT Grant Management Documents (Federal) | ncbroadband.gov) E-2 Materials/Supplies: Provide any updates on materials/supplies being purchased for the project. Provide any anticipated significant challenges or delays these purchases will have on the project. Staffing/Contractors: Provide any updates with staffing/labor for the project. Provide any challenges or changes to staffing/labor since the previous reporting period. Provide whether design/engineering and construction labor is primarily in-house or contractors. Design/Engineering: • ____ In-House Staff • ____ Contractors • ____ Both Please list names of primary contractors. Construction/Installation: • ____ In-House Staff • ____ Contractors • ____ Both Please list names of primary contractors. Milestones: Provide the status of any remaining milestone requirements listed in Exhibit C of the Grant Agreement for this reporting period. HCBOC 121223 ws revised Pg. 79 Exhibit E Progress Report Template (Template may be revised based on program needs or risk assessment - For current version see GREAT Grant Management Documents (Federal) | ncbroadband.gov) E-3 Project Expenditures Provide the total expenditures for all eligible expenditures as defined in Section 2.2.c. of the Grant Agreement for the reporting period and cumulative to date. Provide any justifications for expenditures or cost overruns, as applicable. Attach financial documentation as needed to this report. Project Expenses Total Expenditures (Reporting Period) Total Expenditures (Cumulative – To Date) Easements Materials Construction/Installation Testing Engineering Lease/Collocation Fees (one-time fees) Other (Specify) Justification: Provision of Service: Is service available yet to any GREAT locations (potential subscribers) within this project? • ____ Yes • ____ No If yes, please provide estimated numbers below: Estimated number of locations GREAT Households with broadband available: GREAT Businesses with broadband available: GREAT Ag Operations with broadband available: GREAT Community Anchor Institutions with access GRANTEES ARE REQUIRED TO REPORT ONLY ON GREAT GRANT LOCATIONS. DO NOT SUBMIT ADDITIONAL LOCATIONS OUTSIDE OF THE CONTRACTED GREAT GRANT AGREEMENT. IF ADDITIONAL LOCATIONS ARE INCLUDED THE REPORT WILL BE RETURNED TO THE GRANTEE. _________________________________________________________________________________________ Completion of Construction Period of project: Broadband access is considered available if service can be provided to the GREAT location(s) immediately or within ten (10) business days upon request and without cost to the customer other than standard connection fees. Grantees who have completed the Construction Period of the project will be provided the Final Report Form for completion. Upon verification of the Final Report by NCDIT, Grantees will move to the Maintenance Period of the GREAT Grant. If you have completed the entire Construction Period of this GREAT grant, and made service available to all required GREAT locations, please indicate below: • ____ Yes (all construction has been completed and service availability to all locations is complete.) HCBOC 121223 ws revised Pg. 80 Exhibit E Progress Report Template (Template may be revised based on program needs or risk assessment - For current version see GREAT Grant Management Documents (Federal) | ncbroadband.gov) E-4 Broadband Provider (ISP) Certification and Attestation The undersigned representative of the Grantee certifies that the information in this progress report is true, correct, and complete to the best of the signatory’s knowledge and belief. The signatory further certifies: 1. as Authorized Representative, the signatory has been authorized to file this progress report; 2. that the Grantee has substantially complied with or will comply with all federal, state, and local laws, rules, regulations, and ordinances as applicable to this project; 3. that the Grantee certifies the financial and organizational strength regarding the ability to successfully meet the terms of the grant requirements and the ability to meet the potential for repayment of grant funds; and 4. attests that the project area described in Exhibit B of the Grant Agreement is eligible. SIGNATURE OF AUTHORIZED REPRESENTATIVE Date TYPED NAME AND TITLE HCBOC 121223 ws revised Pg. 81 Exhibit F Payment Process F-1 NCDIT requires regular reimbursement requests to ensure review of eligible expenditures and verify progress of the project. Reimbursement requests may be submitted on an as-needed basis, but no more than one time per month during the Construction Period, and at minimum must be submitted in accordance with the respective Project Milestone for Reimbursement Requests, as specified in Exhibit C. If Reimbursement Request submissions do not coincide with a Progress Report deadline, NCDIT may request an additional Progress Report (within the quarter), to accompany the Payment Request. With exception to those eligible expenditures incurred in accordance with Section 2.2.e., eligible expenditures may only be incurred during the Construction Period. Prior to disbursement of the first Reimbursement Request, the Grantee shall submit a copy of its Conflict of Interest Policy. In order to receive reimbursement funds, the Grantee must submit the following documentation: 1. Payment Request through the NCDIT EBS portal, in accordance with the process outlined in 2.3.e/2.4.e; 2. Copies of eligible expenditure invoices, all invoices shall include: • date of invoice, • invoice #, • description of service or item, and • the name of the vendor; 3. Evidence showing invoices have been paid in full. Evidence may include but not limited to a copy of cleared checks or wire transfer receipts issued toward Project expenses; 4. Proof progress reports are in good standing; 5. Any additional documentation requested by NC DIT related to the Project, including but not limited to the following: • mapping information, • verification of broadband service to the committed locations, and • verification that milestones, as defined in Section 2.3.c./2.4.c., have been met. 6. A request for budget changes must be approved prior to submitting a reimbursement request. If a grantee’s budget has changed and does not match the Grant Agreement and the budget in the EBS Portal, the reimbursement request will be rejected in the NCDIT. One final claim may be submitted for reimbursement within 90 days from the end date of the Construction Period. This Payment Request is subject to NCDIT receiving and approving the following documentation: 1. All final invoices and proof of payment for each invoice. All invoices must be for work incurred prior to the end of the Construction Period; 2. The “Final Report Form for the End of Construction Period,” detailed in Exhibit C and D; and HCBOC 121223 ws revised Pg. 82 Exhibit F Payment Process F-2 3. Mapping files, in the NCDIT approved format, that identifies all contracted locations having broadband access. Should this Agreement terminate in accordance with Section 8.20 of the Agreement, the Grantee may, within 30 days after a final decision or other ruling is entered by a tribunal, judge or court, submit to NCDIT a final claim for reimbursement seeking payment for Eligible Expenditures in accordance with the terms of this Agreement that the Grantee incurred up to, but not including, the date such final decision or other ruling is entered by a tribunal, judge or court against NCDIT. This Payment Request is subject to NCDIT receiving and approving the following documentation: 1. All final invoices and proof of payment for each invoice. All invoices must be for Eligible Expenditures incurred prior to the entry of a final decision or other ruling by a tribunal, judge or court against NCDIT; 2. The “Final Report Form for the End of Construction Period,” detailed in Exhibit C and D; 3. Mapping files, in the NCDIT approved format, that identifies all contracted locations having broadband access. Payments are subject to the availability of funds. NCDIT will use best efforts to issue the funds due to the Grantee within thirty (30) days of approval of the documentation submitted by the Grantee. HCBOC 121223 ws revised Pg. 83 Exhibit G 31 C.F.R. PART 21 – Certification Regarding Lobbying G-1 Grantee certifies to the best of their knowledge and belief, that: 1. No federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with the awarding of any federal contract, the making of any federal grant, the making of any federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any federal contract, grant, loan, or cooperative agreement. 2. If any funds other than federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a member of Congress, an officer or employee of Congress, or an employee of a member of Congress in connection with this federal contract, grant, loan, or cooperative agreement, the Undersigned shall complete and submit Standard Form- LLL, “Disclosure form to Report Lobbying,” in accordance with its instructions. A copy of this form is contained in 31 C.F.R. Pt. 21, App. B. 3. Grantee shall require that the language of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. This certification is a material representation of fact upon which reliance was placed when this transaction was made and entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by Section 1352, Title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure. The Grantee certifies and affirms the truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, the Grantee understands and agrees that the provisions of 31 U.S.C. Chapter 38, Administrative Remedies for False Claims and Statements, apply to this certification and disclosure, if any. Signature of Authorized Representative Print Name Date HCBOC 121223 ws revised Pg. 84 Exhibit H Key Personnel of the Grantee H-1 GREAT GRANT PROGRAM (FEDERAL) Growing Rural Economies with Access to Technology Program Purpose: The purpose of this document is for the awardee to identify and determine the responsibilities of a representative from the company with regards to administering the GREAT Grant Project. This document will establish the appropriate contacts from the awardee, assign responsibility and delegate authority to appropriate staff to ensure compliance with the executed grant agreement. The Grantee’s Project Contacts table can be edited, and additional rows may be added, as needed, by the user. Please include a copy of a letter on company letterhead by the principal or legal counsel certifying the roles of the representatives listed in the table. Definitions Awardee Name: Legal name of the awardee as indicated in the submitted application Application #: The application number assigned by the Enterprise Business Service (EBS) online application portal at the time of application submission. You may also reference the application # in the award letter. Unique Entity Identifier (UEI): Awardees must have an active Unique Entity Identifier. This is required due to the use of federal funds per 2 CFR 200.206 (link). At the time of application, the identifier was referred to as the System Award Management (SAM) ID and used the DUNS number as part of the registration process. The SAM.gov transitioned from using DUNS numbers to the UEI on April 4, 2022. If your organization does not have a UEI, please register or update your information at this link: SAM.gov | Home. Principal: The person that has the authority to enter a legally binding contract with the State of North Carolina. Legal Counsel: The person that serves as legal counsel on behalf of the company and will review the grant agreement from the NC Department of Information Technology. Fiscal Representative: The person that will submit claims for reimbursement. Authorized Representative: The person that is responsible for certifying and submitting progress report documentation. Construction Manager and/or Engineer: The person that is responsible for questions about the construction of broadband infrastructure. Authorized User(s) for the EBS on-line portal: The person that has access to the Enterprise Business Services (EBS) on-line portal. Please ensure that the authorized user has a valid HCBOC 121223 ws revised Pg. 85 Exhibit H Key Personnel of the Grantee H-2 NCID username and password (register here). In addition, ensure that the user has received authorization to access the EBS (register here). Awardee Name: Connect Holding LLC II dba Brightspeed Application #: 1000013975 Unique Identify Identifier (as registered with SAM.gov) JWYXB1U3ML3 Tax Identification #: 87-3811759 Awardee Fiscal Year End Date: December 31 Responsibility Full Name, Title Contact Information Business Name Mailing Address Email Address and Phone Principal Pamela Sherwood, Senior Broadband Counsel Connect Holding II LLC d/b/a Brightspeed PO Box 1330 Fayetteville NC 28302-1330 Pamela.sherwood@brightspeed.com Broadband@brightspeed.com 704-314-2249 office 317-703-0882 mobile Legal Counsel Pamela Sherwood, Senior Broadband Counsel Pamela.sherwood@brightspeed.com 704-314-2249 Fiscal Representative Pamela Sherwood, Senior Broadband Counsel Pamela.sherwood@brightspeed.com 704-314-2249 Authorized Representative Pamela Sherwood, Senior Broadband Counsel Pamela.sherwood@brightspeed.com 704-314-2249 Construction Manager and/or Engineer Oren Keller Sr Mgr, Local Network Implementation Oren.Keller@brightspeed.com 908-376-1372 office 318-340-5263 mobile HCBOC 121223 ws revised Pg. 86 Exhibit H Key Personnel of the Grantee H-3 Authorized User(s) for the Enterprise Business Services (EBS) on-line portal Tucker Hickey, Sr Manager Broadband Grants Office tucker.hickey@brightspeed.com broadband@brightspeed.com Office : 704-314-2374 Reserved for other representatives Steve Brewer, Director State and Local Government Affairs Steven.k.brewer@brightspeed.com 704-314-2361 office 919-554-7239 mobile Reserved for other representatives Tucker Hickey, Sr Manager Broadband Grants Office Tucker.hickey@brightspeed.com broadband@brightspeed.com 704-314-2374 HCBOC 121223 ws revised Pg. 87 Exhibit I Mapping Files I-1 The Grantee must make broadband service available to all households and businesses approved for this project. The household and business locations represent address-level locations submitted in the GREAT Grant Program Application and any adjustments due to the protest process or ineligible locations as required by NCDIT. The data file listing the locations submitted by Grantee and approved by NCDIT for this Project is considered a part of this Grant Agreement and is incorporated into the Agreement by reference. A copy of this data file listing these final locations, as previously agreed upon by the Parties, is being provided to the Grantee as a csv file in a separate email with the following naming structure: (Application number_AWARD_LOCATIONS.csv). The approved and required locations are outlined in the data file, which includes addresses and coordinates from the AddressNC statewide address dataset. The full address field contains the complete address provided by the local county addressing authority. Also provided for each location are decimal degrees coordinates, state plane latitude and longitude, US National Grid Coordinates, and Google Plus Codes that can be used to map the locations in a variety of mapping platforms. A map of the locations is also included in this Exhibit. HCBOC 121223 ws revised Pg. 88 Monc u r e Pit t s bo ro R d 87 Johnsonville B EverettJordanLake Shearon Harris Reservoir 42 NC210NHollySpringsRdTen-Ten Rd P enny Rd LowerMoncure Rd O l dUS-1PeaRidgeRdUS401 N C laude E Po p e M e mo rial HwyCoharie Sdtsa Raven Rock State Park Brickhaven New Hill Moncure Holland Feltonville Holly Springs Fuquay-Varina 210 Vas s Rd DocsRdBuffalo LakeRdN C -2 7 W Lillington HwyRamsey StUS4 0 1SNC 2 4-87Coharie Sdtsa Harnett Lillington Broadway Twin Lakes Spout Springs Shawtown Anderson Creek Slocomb Mamers Hairtown Bunnlevel Luart 295 295Mc Art hur Rd Mu r c hi s o n R d DunnRdSkiboRdSpring Lake Bonnie Doone Hillendale Fort Liberty 210 42 Raleigh RdN C 5 5 W OldStageRdNC 4 2Hw y RockQuarryR d FayettevilleRdLake Benson Angier Willow Springs Willow Spring Auburn Edmondson Garner 82 301 NC-50 NNC55WNC- 2 4 2 S Dunn R d NC-27 E Coharie Sdtsa Benson Plain View Dunn Buies Creek Coats Averasboro Spiveys CornerFalcon Erwin Ma xw ell R d G oldsboroR d Coharie Sdtsa Wade Halls Store Clement Rebel City WAKECHATHAM JOHNSTONLEE HARNETT MOORE SAMPSON CUMBERLAND HOKE ² Esri, HERE, Garmin, SafeGraph, METI/NASA, USGS, EPA, NPS, USDA 0 5.5 11 Miles Awarded Locations (4,773) APPLICANT: Connect Holding II LLC / Brightspeed APPLICATION: 1000013882 AWARD COUNTY: HARNETT Exhibit I I-2 HCBOC 121223 ws revised Pg. 89 Monc u r e Pi tt s bo ro R d 87 Johnsonville B EverettJordanLake Shearon Harris Reservoir 42 NC210NHollySpringsRdTen-Ten Rd P enny Rd LowerMoncure Rd O l dUS-1PeaRidgeRdUS401 N C laude E Po p e M e m o ria lHwyCoharie Sdtsa Raven Rock State Park Brickhaven New Hill Moncure Holland Feltonville Holly Springs Fuquay-Varina 210 Vas s Rd DocsRdBuffalo LakeRdN C -2 7 W Lillington HwyRamsey StUS4 0 1SNC 2 4-87Coharie Sdtsa Harnett Lillington Broadway Twin Lakes Spout Springs Shawtown Anderson Creek Slocomb Mamers Hairtown Bunnlevel Luart 295 295Mc Art hur Rd Mu r c hi s o n R d DunnRdSkiboRdSpring Lake Bonnie Doone Hillendale Fort Liberty 210 42 Raleigh RdN C 5 5 W OldStageRdNC 42Hw y RockQuarryR d FayettevilleRdLake Benson Angier Willow Springs Willow Spring Auburn Edmondson Garner 82 301 NC-50 NNC55WNC- 2 4 2 S Dunn R d NC-27 E Coharie Sdtsa Benson Plain View Dunn Buies Creek Coats Averasboro Spiveys CornerFalcon Erwin Ma xw e ll R d G oldsboroR d Coharie Sdtsa Wade Halls Store Clement Rebel City WAKECHATHAM JOHNSTONLEE HARNETT MOORE SAMPSON CUMBERLAND HOKE ² Esri, HERE, Garmin, SafeGraph, METI/NASA, USGS, EPA, NPS, USDA 0 5.5 11 Miles Awarded Locations (4,773) APPLICANT: Connect Holding II LLC / Brightspeed APPLICATION: 1000013882 AWARD COUNTY: HARNETT HCBOC 121223 ws revised Pg. 90 EXHIBIT J COUNTY MATCHING FUNDS County of Harnett hereinafter referred to as (“County”) is contributing $375,000.00 in matching funds to Connect Holding II, LLC d/b/a Brightspeed hereinafter referred to as (“Brightspeed”) as part of this Project. County is using ARPA INFRASTRUCTURE funds for this match. The funds will be wired to Brightspeed in full within 30 days in a manner satisfactory to Brightspeed after the County receives the final progress report for the Construction Period from the North Carolina Department of Information Technology. Grantee hereby agrees that if it is unable to complete construction or the contract is terminated prior to the end of the construction period, the County will not be obligated to pay this amount to Grantee. The County and the Grantee will notify NCDIT of any changes to this Exhibit within 30 days of such change(s). COUNTY OF HARNETT CONNECT HOLDING II, d/b/a BRIGHTSPEED Name: ___Brent Trout__________________ Name: ______________________________ Signature: ___________________________ Signature: ___________________________ Title: ___County Manger_______________ Title: _______________________________ Date: _______________________________ Date: _______________________________ HCBOC 121223 ws revised Pg. 91 \\lecfile\department\Admin\Clerk to the Board docs\AGENDAS\2023\121223 ws\8.1 HMEP Grant Funding Acceptance 23.docx Page 1 of 1 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Hazardous Materials Emergency Preparedness Grant Funding Acceptance REQUESTED BY: Larry Smith, Emergency Services REQUEST: Emergency Services is requesting Board approval to accept NCEM Hazardous Materials Emergency Preparedness Grant funding award in the amount of $10,000. This grant funding is utilized to conduct county wide hazardous materials response and recovery exercises. These exercises are critical to our response preparedness across the county. FINANCE OFFICER’S RECOMMENDATION: COUNTY MANAGER’S RECOMMENDATION: Item 8 HCBOC 121223 ws revised Pg. 92 November 27, 2023 Hazardous Material Emergency Preparedness Grant Program (HMEP) Fiscal Year 2023 SUBAWARD NOTIFICATION Zach Shean Period of Performance: October 1, 2023 to October 31, 2024 Harnett County Project Title: 2023 HMEP Harnett County 1005 Edwards Brothers Drive Total Amount of Award: $10,000.00 Lillington , NC 27546- MOA #: 2360011 North Carolina Emergency Management (NCEM) is pleased to inform you that the federal Fiscal Year (FY) 2023 Hazardous Material Emergency Preparedness Grant Program (HMEP) has been approved for funding. In accordance with the provisions of FY 2023 HMEP award, NCEM hereby awards to the foregoing subrecipient a grant in the amount shown above. Payment of funds: The grant shall be effective upon final approval by NCEM of the grant budget and program narrative and the execution of the forthcoming Memorandum of Agreement (MOA). Grant funds will be disbursed (according to the approved project budget) upon receipt of evidence that funds have been invoiced and products received and/or that funds have been expended (i.e., invoices, contracts, itemized expenses, etc.). Conditions: The subrecipient agrees that funds will only be expended to complete the approved project(s) not to exceed the funding amount for the project(s) during the designated period of performance. The subrecipient also agrees to comply with all terms, conditions and responsibilities specified in the MOA, and to comply with all applicable federal, state, and local laws, and r ules and regulations in the performance of this grant. Supplanting: The subrecipient confirms that grant funds will not be used to supplant or replace local or state funds or other resources that would otherwise have been available for homeland security activities. Required Documents/Forms: The subrecipient must submit the following documents to (ncemgrants1@ncdps.gov) upon execution of the MOA:  W-9 (09 NCAC 03M .0202)  Electronic Payment / Vendor Verification Form (09 NCAC 03M .0202)  Sworn (Notarized) No Overdue Tax Debt Certification (G.S. 143C-6-23.(c))  Conflict of Interest Policy (G.S. 143C-6-23.(b))  Copy of SUBRECIPIENT’s procurement policy In the box below, list the names & emails authorized as subrecipient signatories for the above -referenced MOA in the preferred order of signature & receipt, and return within 10 days. Denote which signatory represents Finance. Append “cc” to designate copy-only. Example: John Smith (john.smith@yahoo.com) Finance Mary Jones (mary.jones@hotmail.com) Sam Brown (s.brown@gmail.com) cc DocuSign Envelope ID: 0B726D2E-DBBF-44DB-84E5-828C3550E4AD Larry Smith (ltsmith@harnett.org) Kimberly Honeycutt (khoneycutt@harnett.org) Brent Trout (btrout@harnett.org) Zach Shean (zshean@harnett.org)cc HCBOC 121223 ws revised Pg. 93 Item 9 HCBOC 121223 ws revised Pg. 94 HCBOC 121223 ws revised Pg. 95 HCBOC 121223 ws revised Pg. 96 HCBOC 121223 ws revised Pg. 97 HCBOC 121223 ws revised Pg. 98 HCBOC 121223 ws revised Pg. 99 HCBOC 121223 ws revised Pg. 100 HCBOC 121223 ws revised Pg. 101 HCBOC 121223 ws revised Pg. 102 HCBOC 121223 ws revised Pg. 103 HCBOC 121223 ws revised Pg. 104 HCBOC 121223 ws revised Pg. 105 HCBOC 121223 ws revised Pg. 106 HCBOC 121223 ws revised Pg. 107 HCBOC 121223 ws revised Pg. 108 HCBOC 121223 ws revised Pg. 109 HCBOC 121223 ws revised Pg. 110 HCBOC 121223 ws revised Pg. 111 HCBOC 121223 ws revised Pg. 112 HCBOC 121223 ws revised Pg. 113 HCBOC 121223 ws revised Pg. 114 HCBOC 121223 ws revised Pg. 115 HCBOC 121223 ws revised Pg. 116 HCBOC 121223 ws revised Pg. 117 HCBOC 121223 ws revised Pg. 118 HCBOC 121223 ws revised Pg. 119 HCBOC 121223 ws revised Pg. 120 HCBOC 121223 ws revised Pg. 121 HCBOC 121223 ws revised Pg. 122 HCBOC 121223 ws revised Pg. 123 HCBOC 121223 ws revised Pg. 124 HCBOC 121223 ws revised Pg. 125 HCBOC 121223 ws revised Pg. 126 HCBOC 121223 ws revised Pg. 127 HCBOC 121223 ws revised Pg. 128 HCBOC 121223 ws revised Pg. 129 HCBOC 121223 ws revised Pg. 130 HCBOC 121223 ws revised Pg. 131 HCBOC 121223 ws revised Pg. 132 HCBOC 121223 ws revised Pg. 133 HCBOC 121223 ws revised Pg. 134 HCBOC 121223 ws revised Pg. 135 HCBOC 121223 ws revised Pg. 136 HCBOC 121223 ws revised Pg. 137 HCBOC 121223 ws revised Pg. 138 HCBOC 121223 ws revised Pg. 139 HCBOC 121223 ws revised Pg. 140 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISIONERS SUBJECT: Bank Signature Card REQUESTED BY: Kimberly Honeycutt, Finance Officer REQUEST: FINANCE OFFICERS RECOMMENDATION: COUNTY MANAGERS RECOMMENDATION: The County of Harnet requires that each check writen has two signatures. The two primary individuals that sign are the Finance Officer and the Chair of the Board of Commissioners. With the results of the Board's most recent reorganiza�on, the finance department request that the Board of Commissioners approve removing commissioner Mathew Nicol as a signature on the County's bank account and adding newly elected Chair, William Morris as a signature on the County's bank accounts. Adoption of the attached resolution. Item 10 HCBOC 121223 ws revised Pg. 141 HCBOC 121223 ws revised Pg. 142 \\lecfile\department\Admin\Clerk to the Board docs\AGENDAS\2023\121223 ws\11.1Fee Reimbursement agenda form.docx Page 1 of 2 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Fee Reimbursement Policy REQUESTED BY: Kimberly Honeycutt, CLGFO Finance Officer REQUEST: Discuss a proposed Fee Reimbursement Policy. Currently, the county does not have a documented framework by which requests for reimbursements are processed. FINANCE OFFICER’S RECOMMENDATION: COUNTY MANAGER’S RECOMMENDATION: Item 11 HCBOC 121223 ws revised Pg. 143 FEE REIMBURSEMENT POLICY HCBOC 121223 ws revised Pg. 144 ADMINISTRATIVE & FINANCIAL POLICIES SUBJECT: REIMBURSEMENT POLICY NUMBER 1 REVISIONS 0 FINANCE OFFICER APPROVAL DATE SUPERSEDES EFFECTIVE DATE PAGE PAGE 2 OF 6 Table of Contents Purpose ...........................................................................................................................4 Authority ..........................................................................................................................5 Procedure .......................................................................................................................5 HCBOC 121223 ws revised Pg. 145 ADMINISTRATIVE & FINANCIAL POLICIES SUBJECT: REIMBURSEMENT POLICY NUMBER 1 REVISIONS 0 FINANCE OFFICER APPROVAL DATE SUPERSEDES EFFECTIVE DATE PAGE PAGE 3 OF 6 HCBOC 121223 ws revised Pg. 146 ADMINISTRATIVE & FINANCIAL POLICIES SUBJECT: REIMBURSEMENT POLICY NUMBER 1 REVISIONS 0 FINANCE OFFICER APPROVAL DATE SUPERSEDES EFFECTIVE DATE PAGE PAGE 4 OF 6 Purpose The purpose of this policy is to establish guidelines to be used to evaluate requests for fee reimbursements and to implement a structure and process through which consistent information for fee reimbursement requests will be collected and evaluated. The Harnett County Board of Commissioners (the “Board”) annually approves the fee schedule as part of the County’s Budget Ordinance; therefore, only the Harnett County Board of Commissioners can modify or reimburse a fee. Fees are established to pay for the cost of a service provided by a county department. Citizens, businesses, organizations, or community groups (the “Applicant”) may request a reimbursement of certain County fees charged to the applicant in accordance with the County’s fee schedule. The County’s fee schedule is outlined in detail within the County’s budget located on the County website at www.harnett.org. This policy is applicable to all County fee schedules. Unless specifically addressed elsewhere in this policy, these guidelines will apply to the following departments: • Animal Services • Board of Elections • Cooperative Extension • Development Services • Emergency Services • GIS/911 • Harnett Regional Water (including System Development Fees) • Health • IT • Library • Parks and Recreation • Regional Jetport • Register of Deeds • Restitution • Sheriff • Social Services • Solid Waste • Transportation HCBOC 121223 ws revised Pg. 147 ADMINISTRATIVE & FINANCIAL POLICIES SUBJECT: REIMBURSEMENT POLICY NUMBER 1 REVISIONS 0 FINANCE OFFICER APPROVAL DATE SUPERSEDES EFFECTIVE DATE PAGE PAGE 5 OF 6 Authority The Board, at its discretion, may approve or disapprove the reimbursement of all or a portion of any fee imposed within the county fee schedule. This Reimbursement Policy does not apply to the refund of property tax collections. The Machinery Act (NCGS §105) sets forth procedures for the assessment and collection of property taxes. Property taxes are the largest source of general fund revenue for local governments and for this reason, “The governing body of a taxing unit is prohibited from releasing, refunding, or compromising all or any portion of the taxes levied against any property within its jurisdiction except as expressly provided.” Procedure To ensure the consistent application of this policy, as well as the proper accounting of activities and costs of operations within the departments, the following procedures should be followed. 1. The fee will be collected by the appropriate department from the applicant in accordance with the County’s fee schedule at the time of the application or request for services. 2. To be considered, the applicant must submit, no later than 30 days from the date the fee is paid, a Fee Reimbursement Request to the Harnett County Clerk to the Board, along with proof of payment and any documentation that supports the request. The form must be completed, signed, and accompanied by supporting documentation to clearly demonstrate the reason for the request. A demonstrated reason does not guarantee approval. 3. Reimbursement Requests will be presented to the Board for consideration at the next available Board work session. The Board will consider the disposition of the request, and a vote will be made at the next Board meeting. If necessary, the applicant may be requested to be present at the work session. If the reimbursement request is approved, the refund will be made to the applicant from an expenditure line in the Governing Body’s budget. If the request is not approved, the applicant will be notified. HCBOC 121223 ws revised Pg. 148 Fee Reimbursement Request Individual/Entity Name: Mailing Address: Physical Address: (if different) Phone Number: Home: Office: Cell: Email: Type of Fee(s): Date of Fee(s): Amount of Fee(s): Attach proof of payment, and any other applicable supporting documentation. This is to request the reimbursement of the above listed fee for the following reasons: Signature: Date: OFFICIAL USE ONLY Approved: ☐ Denied: ☐ Board of Commissioners Approval/Denial Date: HCBOC 121223 ws revised Pg. 149 \\lecfile\department\Admin\Clerk to the Board docs\AGENDAS\2023\121223 ws\12.1 SRO Agreements agendaform.docx Page 1 of 2 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: School Resource Officer (SRO) Reimbursement Agreements with the Town of Angier, Town of Coats, City of Dunn and the Town of Erwin REQUESTED BY: Brent Trout, County Manager REQUEST: Administration requests the Board of Commissioners approve the School Resource Officer (SRO) Reimbursement Agreements with the Town of Angier, Town of Coats, City of Dunn and the Town of Erwin. FINANCE OFFICER’S RECOMMENDATION: COUNTY MANAGER’S RECOMMENDATION: Item 12 HCBOC 121223 ws revised Pg. 150 1 SCHOOL RESOURCE OFFICER PROGRAM REIMBURSEMENT AGREEMENT FOR ELEMENTARY AND PRIMARY SCHOOLS This Reimbursement Agreement (hereinafter “Agreement”) effective July 1, 2023 is made and entered into by and between the Harnett County Board of Education (hereinafter “Board”), the governing body of the Harnett County Schools (hereinafter “HCS”), the County of Harnett (hereinafter “County”), and the Town of Angier (hereinafter referred to as the “Town”). WITNESSETH: WHEREAS, the Board and the Town entered into a School Resource Officer Program Memorandum of Understanding (hereinafter referred to as the “MOU”) effective October 1, 2018 attached hereto as Exhibit A; WHEREAS, Article V of the MOU states that the Board and governing body of the Town agree to enter into a separate contract to address the assignment of School Resource Officers (hereinafter referred to as “SRO” or collectively “SROs”) to specific HCS schools and payment for SRO services during each fiscal year; WHEREAS, County agrees to provide funding for the SRO’s to the Board for reimbursement of SRO services as described in the MOU. NOW, THEREFORE, in consideration of the promises and covenants of the parties herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Board, County, and the Town do hereby agree as follows: Article I SRO School Assignment The Town shall hire and train law enforcement officers to serve as SROs pursuant to the MOU in each of the following schools within the Town’s limits: 1. Angier Elementary Between school years and during scheduled holidays, the Town shall have the right to utilize the SROs for non-SRO purposes so long as such uses do not conflict with any of the requirements of the MOU. Article II Compensation for SRO Services The County, as part of the Current Expense Funding made to the Board every fiscal year, shall include eleven-twelfths (11/12) of the yearly allocation, identified below, to be used by the HCBOC 121223 ws revised Pg. 151 2 Board to compensate for law enforcement officers performing SRP services during the months that school is in session. The compensation to be paid by County to the Town for reimbursement of the SRO services described in the MOU and for non-SRO purposes during scheduled holidays and between school years shall be set at $85,532.00 per fiscal year, which shall be paid over twelve (12) equal monthly installments over the course of the fiscal year in accordance with Article III. The annual compensation paid by the County shall increase by three percent (3%) at the beginning of each subsequent fiscal year. If the total amount of funds expended on the SROs for the then-current fiscal year of the MOU exceeds the allocated amount for the current fiscal year, the Town shall be solely responsible for the excess expenditures of the SRO’s services, unless the agreed upon in writing by the County. At the conclusion of the academic year, the County will invoice the Board for all expenses incurred for SRO activities. Article III Invoices for SRO Services In order to request payment, the Town shall submit monthly invoices to the Harnett County Sheriff’s Office (hereinafter referred to as “HCSO”) describing the applicable charges, including identification of personnel who performed the services, dates services were performed, the school at which the SRO performed the services, and reimbursable expenses, if any. If the invoice contains expenditures for non-SRO purposes during a scheduled holiday, the invoice shall identify the type of services performed by the SROs. Prior to submission of invoices to the Board, the HCSO shall verify them for accuracy within five business days of receipt. Once verified, County shall process and pay invoices within 30 days of receipt. Article IV Term and Termination of Agreement The term of this Agreement shall begin on July 1, 2023 and end on June 30, 2026 (the “Initial Term”), unless terminated earlier as herein provided. At the expiration of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms upon the renewal of the MOU, unless any of the parties provide at least 30 days’ written notice of its intent to terminate prior to the expiration of the then-current term. This Agreement may be terminated by any party, with or without cause, upon 90 days’ written notice to the other parties. However, this Agreement shall automatically terminate without notice upon the termination of the MOU. If at any time this Agreement is terminated during the Initial Term or any subsequent term of the MOU, the parties shall negotiate and execute a new agreement that is compliant with Article V or any amendment thereof prior to the termination date of this Agreement, unless any amendment of the MOU no longer requires such an agreement. HCBOC 121223 ws revised Pg. 152 3 Article V Notice Any notice, consent, or other communication in connection with this Agreement shall be in writing and may be delivered in person, by mail, or by facsimile transmission (provided sender confirms notice by written copy). If hand-delivered, the notice shall be effective upon delivery. If by facsimile copy, the notice shall be effective when sent. If served by mail, the notice shall be effective three business days after being deposited in the United States Postal Service by certified mail, return receipt requested, addressed appropriately to the address set forth below: To Board: Harnett County Schools Attention: Superintendent 1008 South 11th Street Lillington, North Carolina 27546 To County Brent Trout County Manager Post Office Box 759 Lillington, North Carolina 27546 With copy to: Christopher Appel Senior County Staff Attorney Post Office Box 238 Lillington, North Carolina 27546 To Town Elizabeth Krige Town Manager 55 N. Broad Street W. Angier, NC 27501 With copy to: Dan Hartzog, Jr. Town Attorney PO Box 27808 Raleigh, NC 27611 HCBOC 121223 ws revised Pg. 153 4 Article VI Miscellaneous Provisions 1. Relationship of Parties. The parties to this Agreement shall be independent contractors, and nothing herein shall be construed as creating a partnership or joint venture; nor shall any employee of the parties be construed as employees, agents, or principals of any other party to this Agreement. Each party agrees to assume the liability for its own acts or omissions, or the acts or omissions of their employees or agents, during the term of this Agreement, to the extent permitted under law. 2. Governing Law; Venue. This Agreement shall be governed by the laws of the State of North Carolina. The venue for initiation of any such action shall be Harnett County, North Carolina Superior Court. 3. Amendments and Modifications; Additional Policies and Procedures. This Agreement may be modified or amended by mutual consent of the parties as long as the amendment is executed in the same fashion as this Agreement. 4. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. 5. Severability. In the event that any provision of this Agreement shall be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 6. No Third Party Benefits. There are no third-party beneficiaries to this Agreement. Nothing in this Agreement shall create or give to third parties any claim or right of action against the parties. 7. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together constitute one and the same instrument. 8. E-Verify: All parties shall comply with the requirements of Article 2 of Chapter 64 of the North Carolina General Statutes, “Verification of Work Authorization,” and will provide documentation reasonably requested by any party to this Agreement demonstrating such compliance. IN WITNESS WHEREOF, the parties hereto caused the Agreement to be executed on their behalves. HCBOC 121223 ws revised Pg. 154 5 HARNETT COUNTY BOARD OF EDUCATION _____________________________________ Chair ATTEST: ___________________________ COUNTY OF HARNETT ____________________________________ William Morris, Chairman Harnett County Board of Commissioners ATTEST: __________________________________ Melissa Capps, Clerk TOWN OF ANGIER ________________________________ Robert K. Smith, Mayor ATTEST: ___________________________ Veronic Hardaway, Town Clerk HCBOC 121223 ws revised Pg. 155 1 SCHOOL RESOURCE OFFICER PROGRAM REIMBURSEMENT AGREEMENT FOR ELEMENTARY AND PRIMARY SCHOOLS This Reimbursement Agreement (hereinafter “Agreement”) effective July 1, 2023 is made and entered into by and between the Harnett County Board of Education (hereinafter “Board”), the governing body of the Harnett County Schools (hereinafter “HCS”), the County of Harnett (hereinafter “County”), and the Town of Coats (hereinafter referred to as the “Town”). WITNESSETH: WHEREAS, the Board and the Town entered into a School Resource Officer Program Memorandum of Understanding (hereinafter referred to as the “MOU”) effective October 1, 2018 attached hereto as Exhibit A; WHEREAS, Article V of the MOU states that the Board and governing body of the Town agree to enter into a separate contract to address the assignment of School Resource Officers (hereinafter referred to as “SRO” or collectively “SROs”) to specific HCS schools and payment for SRO services during each fiscal year; WHEREAS, County agrees to provide funding for the SRO’s to the Board for reimbursement of SRO services as described in the MOU. NOW, THEREFORE, in consideration of the promises and covenants of the parties herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Board, County, and the Town do hereby agree as follows: Article I SRO School Assignment The Town shall hire and train law enforcement officers to serve as SROs pursuant to the MOU in each of the following schools within the Town’s limits: 1. Coats Elementary Between school years and during scheduled holidays, the Town shall have the right to utilize the SROs for non-SRO purposes so long as such uses do not conflict with any of the requirements of the MOU. Article II Compensation for SRO Services The County, as part of the Current Expense Funding made to the Board every fiscal year, shall include eleven-twelfths (11/12) of the yearly allocation, identified below, to be used by the HCBOC 121223 ws revised Pg. 156 2 Board to compensate for law enforcement officers performing SRO services during the months that school is in session. The compensation to be paid by County to the Town for reimbursement of the SRO services described in the MOU and for non-SRO purposes during scheduled holidays and between school years shall be set at $66,334.00 per fiscal year, which shall be paid over twelve (12) equal monthly installments over the course of the fiscal year in accordance with Article III. The annual compensation paid by the County shall increase by three percent (3%) at the beginning of each subsequent fiscal year. If the total amount of funds expended on the SROs for the then-current term of the MOU exceeds the allocated amount for the current fiscal year, the Town shall be solely responsible for the excess expenditures of the SRO’s services, unless the agreed upon in writing by the County. At the conclusion of the academic year, the County will invoice the Board for all expenses incurred for SRO activities. Article III Invoices for SRO Services In order to request payment, the Town shall submit monthly invoices to the Harnett County Sheriff’s Office (hereinafter referred to as “HCSO”) describing the applicable charges, including identification of personnel who performed the services, dates services were performed, the school at which the SRO performed the services, and reimbursable expenses, if any. If the invoice contains expenditures for non-SRO purposes during a scheduled holiday, the invoice shall identify the type of services performed by the SROs. Prior to submission of invoices to the Board, the HCSO shall verify them for accuracy within five business days of receipt. Once verified, County shall process and pay invoices within 30 days of receipt. Article IV Term and Termination of Agreement The term of this Agreement shall begin on July 1, 2023 and end on June 30, 2026 (the “Initial Term”), unless terminated earlier as herein provided. At the expiration of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms upon the renewal of the MOU, unless any of the parties provide at least 30 days’ written notice of its intent to terminate prior to the expiration of the then-current term. This Agreement may be terminated by any party, with or without cause, upon 90 days’ written notice to the other parties. However, this Agreement shall automatically terminate without notice upon the termination of the MOU. If at any time this Agreement is terminated during the Initial Term or any subsequent term of the MOU, the parties shall negotiate and execute a new agreement that is compliant with Article V or any amendment thereof prior to the termination date of this Agreement, unless any amendment of the MOU no longer requires such an agreement. HCBOC 121223 ws revised Pg. 157 3 Article V Notice Any notice, consent, or other communication in connection with this Agreement shall be in writing and may be delivered in person, by mail, or by facsimile transmission (provided sender confirms notice by written copy). If hand-delivered, the notice shall be effective upon delivery. If by facsimile copy, the notice shall be effective when sent. If served by mail, the notice shall be effective three business days after being deposited in the United States Postal Service by certified mail, return receipt requested, addressed appropriately to the address set forth below: To Board: Harnett County Schools Attention: Superintendent 1008 South 11th Street Lillington, North Carolina 27546 To County Brent Trout County Manager Post Office Box 759 Lillington, North Carolina 27546 With copy to: Christopher Appel Senior County Staff Attorney Post Office Box 238 Lillington, North Carolina 27546 To Town Nick Holcomb Town Manager Post Office Box 675 Coats, North Carolina, 27521 HCBOC 121223 ws revised Pg. 158 4 Article VI Miscellaneous Provisions 1. Relationship of Parties. The parties to this Agreement shall be independent contractors, and nothing herein shall be construed as creating a partnership or joint venture; nor shall any employee of the parties be construed as employees, agents, or principals of any other party to this Agreement. Each party agrees to assume the liability for its own acts or omissions, or the acts or omissions of their employees or agents, during the term of this Agreement, to the extent permitted under law. 2. Governing Law; Venue. This Agreement shall be governed by the laws of the State of North Carolina. The venue for initiation of any such action shall be Harnett County, North Carolina Superior Court. 3. Amendments and Modifications; Additional Policies and Procedures. This Agreement may be modified or amended by mutual consent of the parties as long as the amendment is executed in the same fashion as this Agreement. 4. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. 5. Severability. In the event that any provision of this Agreement shall be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 6. No Third Party Benefits. There are no third-party beneficiaries to this Agreement. Nothing in this Agreement shall create or give to third parties any claim or right of action against the parties. 7. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together constitute one and the same instrument. 8. E-Verify: All parties shall comply with the requirements of Article 2 of Chapter 64 of the North Carolina General Statutes, “Verification of Work Authorization,” and will provide documentation reasonably requested by any party to this Agreement demonstrating such compliance. IN WITNESS WHEREOF, the parties hereto caused the Agreement to be executed on their behalves. HCBOC 121223 ws revised Pg. 159 5 HARNETT COUNTY BOARD OF EDUCATION _____________________________________ Chair ATTEST: ___________________________ COUNTY OF HARNETT ____________________________________ William Morris, Chairman Harnett County Board of Commissioners ATTEST: __________________________________ Melissa Capps, Clerk TOWN OF COATS ________________________________ Chris Coats, Mayor ATTEST: ___________________________ Connie Lassiter, Town Clerk HCBOC 121223 ws revised Pg. 160 1 SCHOOL RESOURCE OFFICER PROGRAM REIMBURSEMENT AGREEMENT FOR ELEMENTARY AND PRIMARY SCHOOLS This Reimbursement Agreement (hereinafter “Agreement”) effective July 1, 2023 is made and entered into by and between the Harnett County Board of Education (hereinafter “Board”), the governing body of the Harnett County Schools (hereinafter “HCS”), the County of Harnett (hereinafter “County”), and the City of Dunn (hereinafter referred to as “City”). WITNESSETH: WHEREAS, the Board and the City entered into a School Resource Officer Program Memorandum of Understanding (hereinafter referred to as the “MOU”) effective October 1, 2018 attached hereto as Exhibit A; WHEREAS, Article V of the MOU states that the Board and governing body of the City agree to enter into a separate contract to address the assignment of School Resource Officers (hereinafter referred to as “SRO” or collectively “SROs”) to specific HCS schools and payment for SRO services during each fiscal year; WHEREAS, County agrees to provide funding for the SRO’s to the Board for reimbursement of SRO services as described in the MOU. NOW, THEREFORE, in consideration of the promises and covenants of the parties herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Board, County, and the City do hereby agree as follows: Article I SRO School Assignment The City shall hire and train law enforcement officers to serve as SROs pursuant to the MOU in each of the following schools within the city’s limits: 1. Harnett Primary 2. Wayne Avenue Elementary Between school years and during scheduled holidays, the City shall have the right to utilize the SROs for non-SRO purposes so long as such uses do not conflict with any of the requirements of the MOU. HCBOC 121223 ws revised Pg. 161 2 Article II Compensation for SRO Services The County, as part of the Current Expense Funding made to the Board every fiscal year, shall include eleven-twelfths (11/12) of the yearly allocation, identified below, to be used by the Board to compensate for law enforcement officers performing SRO services during the months that school is in session. The compensation to be paid by County to the City for reimbursement of the SRO services described in the MOU and for non-SRO purposes during scheduled holidays and between school years shall be set at $203,238.00 per fiscal year, which shall be paid over twelve (12) equal monthly installments over the course of the fiscal year in accordance with Article III. The annual compensation paid by the County shall increase by three percent (3%) at the beginning of each subsequent fiscal year. If the total amount of funds expended on the SROs for the then-current fiscal year of the MOU exceeds the allocated amount for the current fiscal year, the City shall be solely responsible for the excess expenditures of the SRO’s services, unless the agreed upon in writing by the County. At the conclusion of the academic year, the County will invoice the Board for all expenses incurred for SRO activities. Article III Invoices for SRO Services In order to request payment, the City shall submit monthly invoices to the Harnett County Sheriff’s Office (hereinafter referred to as “HCSO”) describing the applicable charges, including identification of personnel who performed the services, dates services were performed, the school at which the SRO performed the services, and reimbursable expenses, if any. If the invoice contains expenditures for non-SRO purposes during a scheduled holiday, the invoice shall identify the type of services performed by the SROs. Prior to submission of invoices for payment by the County, the HCSO shall verify them for accuracy within five business days of receipt. Once verified, County shall process and pay invoices within 30 days of receipt. Article IV Term and Termination of Agreement The term of this Agreement shall begin on July 1, 2023 and end on June 30, 2026 (the “Initial Term”), unless terminated earlier as herein provided. At the expiration of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms upon the renewal of the MOU, unless any of the parties provide at least 30 days’ written notice of its intent to terminate prior to the expiration of the then-current term. This Agreement may be terminated by any party, with or without cause, upon 90 days’ written notice to the other parties. However, this Agreement shall automatically terminate without notice upon the termination of the MOU. If at any time this Agreement is terminated during the Initial Term or any subsequent term of the MOU, the parties shall negotiate and execute a new agreement that is compliant with Article V or any amendment thereof prior to the termination date of this Agreement, unless any amendment of the MOU no longer requires such an agreement. HCBOC 121223 ws revised Pg. 162 3 Article V Notice Any notice, consent, or other communication in connection with this Agreement shall be in writing and may be delivered in person, by mail, or by facsimile transmission (provided sender confirms notice by written copy). If hand-delivered, the notice shall be effective upon delivery. If by facsimile copy, the notice shall be effective when sent. If served by mail, the notice shall be effective three business days after being deposited in the United States Postal Service by certified mail, return receipt requested, addressed appropriately to the address set forth below: To Board: Harnett County Schools Attention: Superintendent 1008 South 11th Street Lillington, North Carolina 27546 To County Brent Trout County Manager Post Office Box 759 Lillington, North Carolina 27546 With copy to: Christopher W. Appel Senior County Staff Attorney Post Office Box 238 Lillington, North Carolina 27546 To City Steven Neuschafer City Manager Post Office Box 1065 Dunn, NC 28335 HCBOC 121223 ws revised Pg. 163 4 Article VI Miscellaneous Provisions 1. Relationship of Parties. The parties to this Agreement shall be independent contractors, and nothing herein shall be construed as creating a partnership or joint venture; nor shall any employee of the parties be construed as employees, agents, or principals of any other party to this Agreement. Each party agrees to assume the liability for its own acts or omissions, or the acts or omissions of their employees or agents, during the term of this Agreement, to the extent permitted under law. 2. Governing Law; Venue. This Agreement shall be governed by the laws of the State of North Carolina. The venue for initiation of any such action shall be Harnett County, North Carolina Superior Court. 3. Amendments and Modifications; Additional Policies and Procedures. This Agreement may be modified or amended by mutual consent of the parties as long as the amendment is executed in the same fashion as this Agreement. 4. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. 5. Severability. In the event that any provision of this Agreement shall be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 6. No Third Party Benefits. There are no third-party beneficiaries to this Agreement. Nothing in this Agreement shall create or give to third parties any claim or right of action against the parties. 7. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together constitute one and the same instrument. 8. E-Verify: All parties shall comply with the requirements of Article 2 of Chapter 64 of the North Carolina General Statutes, “Verification of Work Authorization,” and will provide documentation reasonably requested by any party to this Agreement demonstrating such compliance. IN WITNESS WHEREOF, the parties hereto caused the Agreement to be executed on their behalves. HCBOC 121223 ws revised Pg. 164 5 HARNETT COUNTY BOARD OF EDUCATION _____________________________________ Chair ATTEST: ___________________________ COUNTY OF HARNETT ____________________________________ William Morris, Chairman Harnett County Board of Commissioners ATTEST: __________________________________ Melissa Capps, Clerk CITY OF DUNN ________________________________ William P. Elmore Jr., Mayor ATTEST: ___________________________ Tammy Williams, City Clerk HCBOC 121223 ws revised Pg. 165 1 SCHOOL RESOURCE OFFICER PROGRAM REIMBURSEMENT AGREEMENT FOR ELEMENTARY AND PRIMARY SCHOOLS This Reimbursement Agreement (hereinafter “Agreement”) effective July 1, 2023 is made and entered into by and between the Harnett County Board of Education (hereinafter “Board”), the governing body of the Harnett County Schools (hereinafter “HCS”), the County of Harnett (hereinafter “County”), and the Town of Erwin (hereinafter referred to as the “Town”). WITNESSETH: WHEREAS, the Board and the Town entered into a School Resource Officer Program Memorandum of Understanding (hereinafter referred to as the “MOU”) effective October 1, 2018, attached hereto as Exhibit A; and WHEREAS, Article V of the MOU states that the Board and governing body of the Town agree to enter into a separate contract to address the assignment of School Resource Officers (hereinafter referred to as “SRO” or collectively “SROs”) to specific HCS schools and payment for SRO services during each fiscal year; and WHEREAS, the Board and the Town entered into a School Resource Officer Program Reimbursement Agreement for Elementary and Primary Schools (hereinafter referred to as the “MOU”) effective October 1, 2018; and WHEREAS, the Board and the Town desire to update the School Resource Officer Program Reimbursement Agreement for Elementary and Primary Schools to reflect the actual costs incurred by the Town. NOW, THEREFORE, in consideration of the promises and covenants of the parties herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Board, County, and the Town do hereby agree as follows: Article I SRO School Assignment The Town shall hire and train law enforcement officers to serve as SROs pursuant to the MOU in each of the following schools within the Town’s limits: 1. Erwin Elementary 2. Gentry Primary HCBOC 121223 ws revised Pg. 166 2 Between school years and during scheduled holidays, the Town shall have the right to utilize the SROs for non-SRO purposes so long as such uses do not conflict with any of the requirements of the MOU. Article II Compensation for SRO Services The County, as part of the Current Expense Funding made to the Board every fiscal year, shall include eleven-twelfths (11/12) of the yearly allocation, identified below, to be used by the Board to compensate for law enforcement officers performing SRO services during the months that school is in session. The compensation to be paid by County to the Town for reimbursement of the SRO services described in the MOU and for non-SRO purposes during scheduled holidays and between school years shall be set at $74,249.00 per fiscal year, which shall be paid over twelve (12) equal monthly installments over the course of the fiscal year in accordance with Article III. The annual compensation paid by the County shall increase by three percent (3%) at the beginning of each subsequent fiscal year. If the total amount of funds expended on the SROs for the then-current term of the MOU exceeds the allocated amount for the current fiscal year, the Town shall be solely responsible for the excess expenditures of the SRO’s services, unless the agreed upon in writing by the County. At the conclusion of the academic year, the County will invoice the Board for all expenses incurred for SRO activities. Article III Invoices for SRO Services In order to request payment, the Town shall submit monthly invoices to the Harnett County Sheriff’s Office (hereinafter referred to as “HCSO”) describing the applicable charges, including identification of personnel who performed the services, the date the services were performed, the school at which the SRO performed the services, and reimbursable expenses, if any. If the invoice contains expenditures for non-SRO purposes during a scheduled holiday, the invoice shall identify the type of services performed by the SROs. Prior to submission of invoices to the Board, the HCSO shall verify them for accuracy within five business days of receipt. Once verified, County shall process and pay invoices within 30 days of receipt. Article IV Term and Termination of Agreement The term of this Agreement shall begin on July 1, 2023 and end on June 30, 2026 (the “Initial Term”), unless terminated earlier as herein provided. At the expiration of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms upon the renewal of the MOU, unless any of the parties provide at least 30 days’ written notice of its intent to terminate prior to the expiration of the then-current term. This Agreement may be terminated by any party, with or without cause, upon 90 days’ written notice to the other parties. However, this Agreement shall automatically terminate without HCBOC 121223 ws revised Pg. 167 3 notice upon the termination of the MOU. If at any time this Agreement is terminated during the Initial Term or any subsequent term of the MOU, the parties shall negotiate and execute a new agreement that is compliant with Article V or any amendment thereof prior to the termination date of this Agreement, unless any amendment of the MOU no longer requires such an agreement. Article V Notice Any notice, consent, or other communication in connection with this Agreement shall be in writing and may be delivered in person, by mail, or by facsimile transmission (provided sender confirms notice by written copy). If hand-delivered, the notice shall be effective upon delivery. If by facsimile copy, the notice shall be effective when sent. If served by mail, the notice shall be effective three business days after being deposited in the United States Postal Service by certified mail, return receipt requested, addressed appropriately to the address set forth below: To Board: Harnett County Schools Attention: Superintendent 1008 South 11th Street Lillington, North Carolina 27546 To County Brent Trout County Manager Post Office Box 759 Lillington, North Carolina 27546 With copy to: Christopher Appel Senior County Staff Attorney Post Office Box 238 Lillington, North Carolina 27546 To Town Snow Bowden Town Manager 100 W F Street Erwin, NC 28339 HCBOC 121223 ws revised Pg. 168 4 Article VI Miscellaneous Provisions 1. Relationship of Parties. The parties to this Agreement shall be independent contractors, and nothing herein shall be construed as creating a partnership or joint venture; nor shall any employee of the parties be construed as employees, agents, or principals of any other party to this Agreement. Each party agrees to assume the liability for its own acts or omissions, or the acts or omissions of their employees or agents, during the term of this Agreement, to the extent permitted under law. 2. Governing Law; Venue. This Agreement shall be governed by the laws of the State of North Carolina. The venue for initiation of any such action shall be Harnett County, North Carolina Superior Court. 3. Amendments and Modifications; Additional Policies and Procedures. This Agreement may be modified or amended by mutual consent of the parties as long as the amendment is executed in the same fashion as this Agreement. 4. Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement. 5. Severability. In the event that any provision of this Agreement shall be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall in no way be affected or impaired thereby. 6. No Third Party Benefits. There are no third-party beneficiaries to this Agreement. Nothing in this Agreement shall create or give to third parties any claim or right of action against the parties. 7. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which taken together constitute one and the same instrument. 8. E-Verify: All parties shall comply with the requirements of Article 2 of Chapter 64 of the North Carolina General Statutes, “Verification of Work Authorization,” and will provide documentation reasonably requested by any party to this Agreement demonstrating such compliance. IN WITNESS WHEREOF, the parties hereto caused the Agreement to be executed on their behalves. HARNETT COUNTY BOARD OF EDUCATION HCBOC 121223 ws revised Pg. 169 5 _____________________________________ Chair ATTEST: ___________________________ COUNTY OF HARNETT ____________________________________ William Morris, Chairman Harnett County Board of Commissioners ATTEST: __________________________________ Melissa Capps, Clerk TOWN OF ERWIN ________________________________ Randy L. Baker Mayor ATTEST: ___________________________ Lauren Evans, Town Clerk HCBOC 121223 ws revised Pg. 170 \\lecfile\department\Admin\Clerk to the Board docs\AGENDAS\2023\121223 ws\13.1 Land Donation agendaform 2023.docx Page 1 of 1 Board Meeting Agenda Item MEETING DATE: December 18, 2023 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Accept Land Donation REQUESTED BY: Brent Trout, County Manager REQUEST: The owners of Lexington Plantation Holdings have offered to donate two tracts of land to Harnett County. The tracts are located in the southwest side of the county close to Highway 87. The property consists of forest land and wetland area. The first tract is approximately 181 acres in size with a pin number of 9595-42-8914.000 and is currently zoned RA20R. The second tract is approximately 260 acres in size with a pin number of 9594-57-4183.000 and is zoned RA20R and Conservation. The pin number represents a larger tract of 686 acres that the 260 acres would be separated from larger parcel with this transaction. The owner will also grant any necessary easements to the County to access the properties from their property. The owner has no stipulations for use of the property and would like to complete the sale prior to December 31, 2023. The first tract has a current value of $481,350 and second tract has an estimated value of $558,850. The future use of the property will be considered once the property is acquired by the County. FINANCE OFFICER’S RECOMMENDATION: COUNTY MANAGER’S RECOMMENDATION: The County Manager recommends acceptance of this land donation. Item 13 HCBOC 121223 ws revised Pg. 171 HCBOC 121223 ws revised Pg. 172 Page 1 DECEMBER 18, 2023 APPOINTMENTS NEEDED DANGEROUS DOG COMMITTEE There is one (1) vacancy for an alternate on this Board. The vacancy is not district sensitive. HOME & COMMUNITY BLOCK GRANT COMMITTEE There is one (1) vacancy for an older consumer on this Board. JUVENILE CRIME PREVENTION COUNCIL There are two (2) vacancies on this Board. The vacancies are not district sensitive but are position specific, as County Commissioner Appointee. HISTORIC PROPERTIES COMMISSION There are two (2) vacancies on this Board. The vacancies are for District 1 and 5. The qualification of members pursuant to Section 2.2 of the Historic Properties Commission Ordinance state, “A majority of the member of the HPC shall have demonstrated special interest, experience or education in history, architecture, archaeology, or related fields.” HARNETT COUNTY COMMISSION FOR WOMEN AND YOUTH There are four (4) vacancies on this Board, District 2, 3, 4, and 5. MID-CAROLINA AGING ADVISORY COMMITTEE Vicky Gilbert Walen would like to be considered for reappointment. Her appointment expires December 31, 2023. Item 14 HCBOC 121223 ws revised Pg. 173 HCBOC 121223 ws revised Pg. 174 HCBOC 121223 ws revised Pg. 175