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040416a Agenda PackageHARNETT COUNTY BOARD OF COMMISSIONERS County Administration Building 102 East Front Street Lillington, North Carolina Regular Meeting April 4, 2016 9:00am I. Call to order -Chairman Jim Burgin 2. Pledge of Allegiance and Invocation -Vice Chairman Gordon Springle 3. Consider additions and deletions to the published agenda 4. Consent Agenda A. Minutes B. Budget Amendments C . Tax rebates, refunds and releases D. Resolution to add roads to state system E. Resolution of the Board of Commissioners of the County of Harnett, North Carolina, Approving an Installment Financing Contract and a Deed of Trust With Respect Thereto and Delivery Thereof and Providing for Certain Other Related Matters including the Escrow Agreement and Lease Agreement relating to the County's refinancing of its 2009 COPs. F. Harnett County Emergency Services requests approval of the EMS Assistant Medical Director contract between County of Harnett and Gregory Michael Christiansen, M.D. as the EMS Medical Director. G. Harnett County Emergency Services, on behalf of Benhaven Emergency Services, requests approval to purchase a fire truck (tanker) not to exceed $250,000. H. Harnett County Human Resources requests approval of the Harnett County Vehicle Use Policy. I. Harnett County Public Utilities requests approval to grant Duke Energy Progress LLC an easement as part of the WTP Upgrade Project. J. Harnett County Sheriff's Office requests approval of resolution to award Sheriff Larry Rollins his service weapon upon his retirement. K . Harnett County Senior Staff Attorney requests approval of order approving Compromise Settlement Agreement in Charlene Bass v. Harnett County matter, I.C. File No .: W93571 L. Proclamation -2016 National Service Recognition Day M. Sheriff's Office requests $30,000 for DNA testing in criminal cases through NMS Labs. 5. Period of up to 30 minutes for informal comments allowing 3 minutes for each presentation Page 1 040416 HC BOC Page 1 6 . Appointments 7. Reappointment ofTax Administrator Keith Faulkner and Oath of Office 8. County Manager's Report -Joseph Jeffries, County Manager -Harnett County Sales Tax Analysis by Article-December 2015 -Harnett County Financial Summary Report-February 2016 -Fuquay-Varina's Water Request 9. New Business 10. Closed Session 11. Recess for 2016/2017 Budget Discussion 12. Adjourn Page 2 040416 HC BOC Page 2 Agenda Item J../ -A HARNETT COUNTY BOARD OF COMMISSIONERS Minutes of Regular Meeting March 21,2016 The Harnett County Board of Commissioners met in regular session on Monday, March 21 , 2016, in the Commissioners Meeting Room, County Administration Building, 102 East Front Street, Lillington, North Carolina. Members present: Staff present: Jim Burgin, Chairman Gordon Springle, Vice Chairman Abe Elmore, Commissioner Barbara McKoy, Commissioner Joe Miller, Commissioner Joseph Jeffries, County Manager Paula Stewart, Deputy County Manager Dwight Snow, County Attorney Kimberly Honeycutt, Finance Officer Margaret Regina Wheeler, Clerk Chairman Jim Burgin called the meeting to order at 7:00pm. Boy Scout Troop 794 of Buies Creek led the pledge of allegiance. Commissioner Abe Elmore led the invocation. Chairman Burgin called for additions and deletions to the published agenda. Mr. Jeffries requested the deletion of Agenda Item 4H Harnett County Emergency Service's request for approval of the EMS Assistant Medical Director contract between County of Harnett and Gregory Michael Christiansen, M .D. as the EMS Medical Director from the agenda. Mr. Jeffries also requested to remove Agenda Item 40 Harnett County Economic Developments' request for approval of listing agreement with A vi son Young through January 31, 201 7, with option to extend. to market certain county-owned properties for commercial development from the consent agenda for discussion purposes. Commissioner Miller requested the deletion of Agenda Item 4L Harnett County Human Resources requests approval of the Harnett County Vehicle Use Policy from the agenda to be discussed at the next work session. At this time Chairman Burgin recognized Sheriff Larry Rollins who announced his resignation as the Harnett County Sheriff as of 5:00 pm today. Sheriff Rollins addressed the group. Chairman Burgin requested the addition of Appointment ofNew Sheriff to the agenda for consideration. Commissioner Elmore moved to approve the agenda as amended. Vice Chairman Springle seconded the motion which passed unanimously. Vice Chairman Springle moved to approve the following items listed on the consent agenda. Commissioner McKoy seconded the motion which passed unanimously. March 21 , 2016, Regular Meeting Minutes Harnett County Board of Commissioners Page I of9 040416 HC BOC Page 3 1. Budget Amendments: 265 Cooperative Extension, CCR&R Block Grant Code 110-7301-465.12-00 Salaries & Wages 110-7301-465.22-00 FICA Tax expense 110-7301-465.25-10 Unemployment Benefits 110-7301-465.26-08 Workman's Comp Benefits 110-7301-465.60-33 Materials & Supplies 110-7301-465.58-14 Travel 110-7301-465.30-22 Indirect Cost 110-7301-465.41-11 Postage 110-0000-334.73-01 CCR&R Block Grant 267 Sheriffs Office Code 110-0000-331.51-05 BulletproofVest Grant 110-0000-399.00-00 Fund Balance 270 Public Utilities Fund Code 531-9000-431.33-50 Contracted Services 531-0000-354.01-00 Sale of Other Assets 272 Harnett County WIOA Youth Program Fund Code 234-7405-465.26-09 Workers Comp Participant 234-7405-465.41-13 Utilities 234-7405-465.58-01 Training & Meetings 234-7405-465 .60-33 Materials & Supplies 234-7405-465.26-08 Workers Comp 234-7405-465.12-00 Salaries & Wages Part time 274 Register of Deeds, Automation Enhancement Fund Code 230-4800-410.30-04 Operating Professional Services 230-0000-399.00-00 Fund Balance Appropriated 278 Education Department Code 110-8600-480.36-19 ecce-DOT 11 0-7100-465.3 2-79 Economic Development 2. Tax rebates, refunds and releases 3. Resolution to add roads to state system (Attachment 1) 2885 increase 440 increase 71 increase 139 decrease 614 increase 1500 increase 356 increase 120 decrease 5607 increase 5224 increase 5224 decrease 700 increase 700 increase 600 decrease 400 decrease 500 decrease 82 decrease 200 increase 1382 increase 121 00 increase 121 00 increase 70000 increase 70000 decrease 4 . Resolution of the Harnett County Board of Commissioners to Accept a Gift of Real Property from Mr. Lester C. Phillips (Attachment 2) March 21 , 2016, Regular Meeting Minutes Harnett County Board of Commissioners Page 2 of9 040416 HC BOC Page 4 5. Harnett County Emergency Services requested approval of the Harnett County Emergency Services Basic Life Support Training Policy. The policy is to establish a uniform procedure for providing Basic Life Support Training courses within Harnett County. Harnett County Emergency Services will provide several types of American Heart Association Basic Life Support Courses. The cost of the Basic Life Support Training will consist of a fee schedule based on the agencies, organizations and individuals. 6. Harnett County Emergency Services requested approval of MOU regarding Assistant Medical Director in charge ofNon-Traditional Practice Setting for Paramedics between County of Harnett and Daniel Christian Minor, M.D. 7. Administration requested approval ofN.C. Department of Transportation Traffic-DOT Construction Agreement to construct a new entrance to the Harnett County Central Carolina Community College on US 421. 8. Harnett County Sheriff's Office requested approval of the Harnett County Detention Center Medical Plan developed by Southern Health Partners. 9. Harnett County Sheriffs Office requested approval to apply for a Governor Highway Safety Grant for four full-time traffic enforcement positions and four fully equipped vehicles requiring a county match of 15% ($74,885) for the 2016/17 budget year, year, 30% of the personnel cost the second year, and 50% of the personnel cost the third year. The County will be responsible for 100% of the costs after the third year. 10. The Western Harnett/Overhills Area PTO Thrift Store requested waiver oftheir mixed trash landfill fees . Harnett County Engineer recommended, if this request is approved, waiving fees up to $1000. 11. Harnett County Public Utilities requested the approval of the contract documents with MBD Consulting Engineers, P.A. for the Odor Control/Lime Feed System at Fort Bragg Wastewater Lift Station. The award of construction contract for Odor Control/Lime Feed System at Fort Bragg, in the amount of$189,000, was awarded to ELJ Incorporated of Jacksonville, NC on February 1, 2016. 12. Harnett County Economic Development requested approval of listing agreement with A vi son Young through January 31 , 2017, with option to extend, to market certain county- owned properties for commercial development. A vison Young will be responsible for marketing the properties for sale and will be paid through a commission on properties sold. 13 . Harnett County Cooperative Extension requested 2% cost of living increase on the Harnett County portion of the split funded Cooperative Extension employees' salaries. This will be a retroactive adjustment effective 111116. March 21 , 2016, Regular Meeting Minutes Harnett County Board of Commissioners Page 3 of9 040416 HC BOC Page 5 14. Harnett County Finance Officer requested approval of contract with Martin Stames & Associates, CPAs, P.A., to audit County's fmancial records. Chairman Burgin presented a framed copy of the Resolution of the Harnett County Board of Commissioners to Accept a Gift of Real Property from Mr. Lester C. Phillips to Mr. Bobby Phillips and expressed the Boards' appreciation for the donation. Chairman Burgin recognized Dunn Area Tourism Authority Director Sharon Stevens and Dunn-Erwin Rail Trail Treasurer Patsy Carson. At this time Chairman Burgin read the following prepared statement: "On Feb. 9, 2016, the Harnett County Board of Commissioners was notified by Harnett County Sheriff Larry Rollins in closed session of his plans to resign the office of sheriff effective March 21, 2016, at 5 p.m. According to Section 162-5 of the North Carolina General Statutes, it is the responsibility of the county board of commissioners to select a replacement to serve the remainder of a sheriff's vacated term at the next board meeting following the sheriff's resignation. We take our responsibility in this matter very seriously and in selecting a new sheriff, we had the following goals in mind: • To select a qualified and capable candidate to serve out the remainder of Sheriff Rollins' term. • To maintain continuity in the Harnett County Sheriff's Office until such a time as the citizens of Harnett County have the opportunity to elect a new sheriff. • To make sure the process for selecting a new sheriff is fair and efficient. With these goals in mind, the Harnett County Board of Commissioners interviewed the three sheriff's majors who currently serve the Harnett County's Sheriff's Office. From these interviews, the board has selected Maj. Wayne Coats to serve out the remainder of Sheriff Rollins' term as Harnett County Sheriff. The next election for Harnett County Sheriff will be held Tuesday, Nov. 6, 2018. In selecting Maj. Coats as sheriff, the board considered his 22 years of law enforcement experien ce with 20 of those years spent with the Harnett County Sheriff's Office, first as a deputy assigned to Campbell University and then as an employee working his way up through the Sheriff's Office, as well as the level of respect that other members of the Sheriff's Office have for him, and his dedication to serving the citizens of Harnett County. We look forward to working with Sheriff Coats, and we thank Sheriff Rollins for his service and wish him well. " Commissioner McKoy moved that: 1) the Board of Commissioners acknowledge the receipt of Larry W. Rollins' resignation as SheriffofHamett County effective March 21,2016 at 5:00p.m.; and March 21, 2016, Regular Meeting Minutes Harnett County Board of Commissioners Page 4 of9 040416 HC BOC Page 6 2) Major Wayne A. Coats of the Harnett County Sheriffs Department be elected by the Harnett County Board of Commissioners as Sheriff of Harnett County for the remainder of Sheriff Larry W. Rollins' term of office. This motion is made pursuant to the provisions ofN.C. G.S . Section 162-3 and 5. Commissioner Elmore seconded the motion which passed unanimously. Sheriff Wayne Coats addressed the group. Vice Chairman Springle thanked Commissioner McKoy for her leadership in selecting the new sheriff. Chairman Burgin recognized Angier Mayor Lewis Weatherspoon. Chairman Burgin opened the floor for informal comments by the public, allowing up to 3 minutes for each presentation up to 30 minutes. -Cris Nystrom of 391 Center Lane in Bunnlevel addressed the group. He said our leadership must have a united vision. Mr. Nystrom asked commissioners to always reach out to the citizens, hear their concerns, formulate plans and let their actions always reflect the will of the people. -Jimmy McCormick of 713 McCormick Road in Sanford said the new Benhaven Elementary School is waiting to be constructed. Mr. McCormick said it's been some months since the land was transferred to the School Board. He urged whatever differences that the commissioners and School Board have that it might be worked out quickly so our children don't have to wait in an old old building that we know has mold and many things that are not healthy for children. Commissioner Miller moved to approve the appointments listed below. Commissioner Elmore seconded the motion which passed unanimously. Harnett Health System Board of Trustees Dr. Terrill Brown, Gene Lewis and Thomas Butler (nominated by Commissioner Miller) were appointed to serve a three year term on this board expiring March 31 , 2019. Home and Community Care Block Grant Committee Deangelo Jackson (nominated by Commissioner Miller) was appointed to serve on this committee. Southeastern Economic Development Commissioner Commissioner Springle was reappointed to serve an additional four year term on this commission expiring December 31, 2020. Harnett County High School Fire Academy Instructor Reggie Hocutt talked about the academy and distributed informational gift bags to commissioners. Mr. Hocutt said we now have the ability to graduate fire fighters right out of high school and noted to date they have graduated 25 fire fighters. He said this program was recently featured by NC NOW. March 21, 2016, Regular Meeting Minutes Harnett County Board of Commissioners Page 5 of9 040416 HC BOC Page 7 Mr. Hocutt introduced Instructor Brian Heath who teaches this program at Western Harnett High School. Past academy students Alex Wilkins and Jake Field addressed the board as to what the program has done for them. Mr. Hocutt, who teaches this program at Harnett Central High School, will again take students to compete in Skills USA this year. Last year Mr. Hocutt took 22 high school students to Skills USA and out of 63 participants Harnett County took the top 15 slots. Mr. Hocutt said their class enrollment is growing and 35 students are currently enrolled in the program. He said other schools want to visit Harnett County to understand their success with the program. He also said if it wasn't for donations from fire departments and local companies they couldn't do all that they do. Mr. Hocutt called upon CT Director Lynn Hartley who presented a thank you plaque to Erwin Fire Department's Chief Wilkins and Chief Pope for their donation of a fire truck and support to the academy. Mark Locklear, Director of Harnett County Development Services, petitioned the Board for a public hearing -Proposed Zoning Change: Case # RZ-16-04; Landowner/ Applicant: Harriet Marshall & Vivian Clark Chance et al/Erwin McNeill, Harold Gilchrist, The Smith Heirs, etc. 12.7 +/-acres out of a 27.17 acre tract; Pin #9594-35-2654; From RA-20R to Commercial; NC Hwy 24/87; Anderson Creek Township. Mr. Locklear noted on February 1, 2016 the Harnett County Planning Board voted unanimously (5-0) to recommend approval of this Rezoning application based on compatibility to the surrounding properties as well as adjacent zoning district. Mr. Locklear reported the site is currently wooded, and located adjacent to the new Wal-Mart shopping area. Surrounding land uses include single family residential homes and residential subdivisions, undeveloped and federally owned land. A variety of commercial development is within close proximity. Harnett County public water and sewer are available. Mr. Locklear noted as required for all zoning changes within a five mile radius of Fort Bragg, the Regional Land Use Advisory Commission was contacted and did not have any comments. Mr. Locklear stated staffs evaluation as: The IMP ACT to the adjacent property owners and the surrounding community is reasonable, and the benefits of the rezoning outweigh any potential inconvenience or harm to the community. REASONING: In the vicinity ofthe subject property, non- residential development has progressed at a stable pace. The requested rezoning change to Commercial will not have a negative impact on the surrounding properties or the community as it is similar in nature to certain existing zoning districts in the area. The requested zoning district is COMPATIBLE with the existing Land Use Classification. REASONING: The requested zoning is compatible with the existing land use classification of Compact Mixed Use. The Compact Mixed activity centers are "growing areas of the county". They encourage a different combination of uses such as: commercial, civic, institutional, as well as single family and multi-family developments. March 21, 2016, Regular Meeting Minutes Harnett County Board of Commissioners Page 6 of9 040416 HC BOC Page 8 The proposal does ENHANCE or maintain the public health, safety and general welfare. REASONING: The proposed commercial zoning is more appropriate for this site due to properties to the North and South zoned commercial as well as the adjacent property . The proposed zoning would enhance the public health and general welfare. This request is NOT for a SMALL SCALE REZONING and should not be evaluated for reasonableness. REASONING: This request does not need to be evaluated for a small scale rezoning due to the property's size as well as it being adjacent to the proposed zoning district. Suggested Statement-of-Consistency: Staff concludes that the requested rezoning to Commercial is compatible with Harnett County regulatory documents and would not have an unreasonable impact on the surrounding community and will enhance the public health, safety, and general welfare for the reasons stated in the evaluation. It is recommended that this rezoning request be approved. Chairman Burgin called to order a public hearing on the matter and opened the meeting for comments from the public. -Applicant Erwin McNeil of 6 Long Leaf Circle in Cameron spoke in favor of the rezoning request. Seeing no one else move, Chairman Burgin closed the public hearing. Commissioner Elmore moved to approve the rezoning as presented. Commissioner McKoy seconded the motion which passed unanimously. Mr. Locklear petitioned the board for a public hearing -UDO Text Amendment to Article V (Use Regulations), Section I .2 (Table of Use Types and Regulations). Mr. Locklear explained the reason for the change is to allow Recycling & Solid Waste Convenient Sites to exist, via a conditional use permit, within the Office & Institutional and RA-40 zoning districts. Mr. Locklear noted after a discussion at thei r March 7, 2016 meeting , the Harnett County Planning Board voted unanimously (5-0) to recommend approval of this proposed text amendment. Suggested Statement-of-Consistency: Staff concludes that the requested text amendment is compatible with Harnett County regulatory documents, and the benefits outweigh any potential inconvenience or harm to the community, particularly s ince a conditional use permit would be required. Therefore, it is recommended that this text amendment be approved. Chairman Burgin called to order a public hearing on the matter and opened the meeting for comments from the public. -An unidentified citizen spoke from the audience. He asked why this change is being made. Mr. Locklear responded Harnett County Solid Waste wants to locate a convenient site in a zoning classification that currently doesn't allow for such. This change would give them the opportunity to apply for a conditional use permit through the Harnett County Board of Adjustment. Seeing no one move, Chairman Burgin closed the public hearing. Vice Chairman Springle moved to approve the U DO text amendment as presented. Commissioner Miller seconded the motion which passed unanimously. (Attachment 3) March 21,2016, Regular Meeting Minutes Harnett County Board of Commissioners Page 7 of9 040416 HC BOC Page 9 Mr. Locklear petitioned the board for a public hearing-UDO Text Amendment to Article IV (Zoning & Overlay Districts), Section 14.1.10 (Building Height, Required), Section 14.3.5 (Compatibility Design Concept Table); Article V (Use Regulations), Section 1.2 (Table of Use Types and Regulations), Section 3.2.1 (Multifamily Residential Development: General Regulations), Section 8.2.3 (Manufacturing, Light), Section 11.8.3 (Planned Unit Development Design Guidelines); Article VII Development Design Guidelines, Section 4.0 (Sidewalk Standards). Mr. Locklear explained the proposed text amendment is to update the U.D.O. with the current Land Use classifications as listed in the new Comprehensive Land Use Plan, He said this is basically a clean-up because once the new Land Use Plan was adopted the language didn't "mesh" with our U.D.O. classifications which were based off of the old land use plan. Chairman Burgin called to order a public hearing on the matter and opened the meeting for comments from the public. Seeing no one move, Chairman Burgin closed the public hearing. Commissioner Elmore moved to approve the UDO text amendments as presented. Commissioner McKoy seconded the motion which passed unanimously. (Attachment 4) Harnett County Finance Officer Kimberly Honeycutt petitioned the board for a public hearing concerning the approval of the execution, delivery and performance of the Contract and the Deed of Trust and the Projects to be financed thereby. The Board of Commissioners of the County of Harnett, North Carolina is considered (1) entering into an installment financing contract in an amount not to exceed $2,200,000 to fmance all or a portion of the projects identified as eligible "Qualified School Construction Bond projects" (2) executing and delivering a deed of trust, security agreement and fixture filing related to all or a portion of the County's fee simple interest in the real property. Chairman Burgin noted this money was left over after we setup the financing for new middle school. Chairman Burgin called to order a public hearing on the matter and opened the meeting for comments from the public. Seeing no one move, Chairman Burgin closed the public hearing. Commissioner Miller moved to approve the execution, delivery and performance of the Contract and the Deed of Trust and the projects to be financed. Vice Chairman Springle seconded the motion which passed unanimously. Mrs. Honeycutt petitioned the board for a public hearing concerning the approval of the execution, delivery and performance of the New Contract and the New Deed of Trust and the projects to be refinanced thereby. The Board of Commissioners of the County of Harnett, North Carolina considered approval to authorize the County to proceed to enter into a deed of trust, security agreement and fixture filing under which the County will grant a lien on the real property. Mrs. Honeycutt also requested award of the refmancing of the 2009 Certificates of Participation (COPS), $29,075,000, to Regions Bank who submitted an interest rate of 2.20%. Mrs. Honeycutt noted this refmancing would result in saving of$1.8 million over the next 13 years. Chairman Burgin called to order a public hearing on the matter and opened the meeting for comments from the public. Seeing no one move , Chairman Burgin closed the public hearing. March 21, 2016 , Regular Meeting Minutes Harnett County Board of Commissioners Page 8 of9 040416 HC BOC Page 10 Commissioner Miller moved to approve the execution, delivery and performance of the new contract, deed of trust, security agreement and fixture filing under which the County will grant a lien on real property as well as awarding the refmancing of the 2009 Certificates of Participation (COPS), $29,075,000, to Regions Bank. Commissioner Elmore seconded the motion which passed unanimously. (Attachment 5) Mr. Jeffries presented Harnett County Economic Development request for approval of listing agreement with Avison Young through January 31, 2017, with option to extend, to market certain county-owned properties for commercial development. A vi son Young will be responsible for marketing the properties for sale and will be paid through a commission on properties sold. Mr. Jeffries noted needed changes to the agreements included the removal of the listing agreement for 220 and 194 Olive Farm Drive also known as the shell building and lot as well as and the property transferred to the Harnett County Board of Education. Vice Chairman Springle moved to approve the listing agreement as amended. Commissioner Elmore seconded the motion which passed unanimously. Mr . Jeffries presented the following reports: -Harnett County Public Health Activities Summary -Feb. 2016 -Harnett County Board of Education Financials Mr. Jeffries also noted the following: -the Employee Health Clinic had a total of 1,155 visits in the first two quarters with a value of $121 ,000; -Davenport & Company will present our debt profile to the Board of Education tomorrow at 1 :00 pm; -Staff is currently planning two community meetings, one in Lillington and Northwest Harnett; -Angela McCauley is the interim Library Director; -Our health insurance broker has said the County is looking at a 7 to 7.5% increase in health insurance cost and a 2% increase in dental cost; and -Reminded everyone of the Harnett Local Government Association meeting on Monday, March 28 at 6:30 at the Brass Lantern in Dunn with a guest speaker from Harnett Health. There was no new business. There was no need for closed session. Commissioner Elmore moved to adjourn the meeting at 8:07pm. Commissioner McKoy seconded the motion which passed unanimously. Jim Burgin, Chairman Margaret Regina Wheeler, Clerk March 21, 2016, Regular Meeting Minutes Harnett County Board of Commissioners Page 9 of9 040416 HC BOC Page 11 ATTACHMENT 1 ,.~Harnett ~,_C_O __ U_N __ T_Y ________________________________________________ __ _ ;, NORTH CAROLINA RESOLUTION BE IT RESOLVED that the Harnett County Board of Commissioners does hereby, by proper execution of this document, request that the North Carolina Department of Transportation add to the State's Secondary Road System the below listed street. Victoria Hills Subdivision Tuscon Court Duly adopted this 21st day of March, 2016. HARNETT COUNTY BOARD OF COMMISSIONERS ATTEST: strong roots ·new growth www.harnen.org 040416 HC BOC Page 12 ATTACHMENT 2 RESOLUTION OF THE HARNETT COUNTY BOARD OF COMMISSIONERS TO ACCEPT A GIFT OF REAL PROPERTY FROM LESTER C. PHILLIPS WHEREAS, the County of Harnett, North Carolina (the "County") is a valid eXIstmg political subdivision of the State of North Carolina, existing as such under and by virtue of the Constitution, statutes and laws of the State ofNorth Carolina; and WHEREAS, under the General Statutes and the common Jaw, counties may acquire real property by gift; and WHEREAS, Lester C. Phillips is the owner of two real property tracts composed of approximately 114 acres which are located in A verasboro Township in Harnett County contiguous to the North Carolina Rail Trail as it extends from the City of Dunn to the Town of Erwin; that Mr. Phillips desires to donate these two real property tracts to the County as a charitable gift, and the County has determined that the acceptance of this gift would be advantageous to the County and a great benefit to the citizens of Harnett County. NOW, THEREFORE, BE IT RESOLVED BY THE HARNETT COUNTY BOARD OF COMMISSIONERS AS FOLLOWS: 1. That the Board of Commissioners does hereby approve the acceptance of that General Warranty Deed charitable gift from Lester C. Phillips as shown on the attached Exhibit "A." 2. That the Board of Commissioners on behalf of all the citizens of Harnett County hereby extends its heartfelt thanks to Lester C. Phillips for this generous and benevolent real property gift. 3. The Harnett County Attorney and County staff are hereby authorized and directed to prepare and record the necessary documents to effectuate the County's acceptance of this real property gift conveyance. Duly adopted this the 21st day of March, 2016. Ji H 040416 HC BOC Page 13 Harnett ATTACHMENT 3 v~:;:::o..w, ( 0 U N T Y ........,.........,_.._ __ NORTH CAROLINA www.harnett.org A RESOLUTION AMENDING THE HARNETT COUNTY UNIFIED DEVELOPMENT ORDINANCE WHEREAS, the Board of Commissioners of Harnett County adopted the UDO on October 17, 201 I for the purpose of promoting the health, safety, and general welfare of the county residents; and WHEREAS , this ordinance was adopted under authority granted by the General Assembly of the State ofNorth Carolina, particularly G.S. 153A-340; and WHEREAS , the UDO contains provisions for amending said ordinance and those provisions have been followed ; and WHEREAS , the Harnett County Planning Board has reviewed the amendments to the anicles of the UDO as listed below and recommends the adoption of the following amendments. NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF HARNETT COUNTY, NORTH CAROLINA that Article V Section 1.2 "Table of Use Types & Regulation s" of the UDO shall be amended to read as indicated in "Attachment". "Attachment" is filed with the Unified Development Ordinance in the Clerk to the Board's Office. Duly adopted this 21 st day of March, 2016 and effective upon adoption. HARNETT COUNTY BOARD OF COMMISSIONERS Jim Burgin, Chairman strong roots • new growth 040416 HC BOC Page 14 ATT ACH MENT 1 ADD the following to Article V "Use Regulatio ns" Harnett County Unified Development Ordinance Use Table 1.2 T able of Use Types & Regulations ----------------------------------------.------r----.-----~----.-----,----.------.----,r-----.-------------------------.---.-----: ~ ~ 0 u (f) z 0 u PARKJNG c.. , u~! 6 ,j z < i cz:~l od l ~~~ ~tlJ ! Vl I ~ 81 ::J J U1 ! I I I I Retail Sales, Outdoo--r~(p-n7·m--a-:ri:l-y __ o_u_ts-:i-:d-e --o-=f -a_n_,_,j P * i P * ! P* j I j ! i I J 1 p-;r_2_cm __ p_loyees-Q-arge-·-st_s_h_ifi)--! ~-~~ enclosed buildinn\ 1 -' l ! i ! I 1 1 ' OR 1 per 500 sq. ft. I ! i ------·------·-:::.:b'. r-----r-----r----r------J-----r---t------:---;----+----------------t-----r---1 --~~PPS Center ---i I P * i P*' l I I l ! i ! I per 200 sq ft. l 3 i i Sexually-Oriented Business (bookstore, motion ! -·c::-r---·-r--r----!---r-T----~--~--~-----; per 300 s~-. ft-.----, ~-·---1 _ __P.icture, nig,...:h.:..tc'-lu:...b-") ______________ _,_ ·-'---'---__L ___ 1 ____ .~____ , Vehicle Services --------------·---------·----·_1 ! i C j !---~ i i ! P* , P * 1 P * i C* ! ! * 1 C* C* C* 1 3 per bay+ 1 per employee j 3 j S ·-----+----1------:----1---+---t--i--------f----1---__j P * P* P * J C* ! i C i C* C* C* 1 per employee + I per 200 sq . ft. ! 3 i Car Wash _j__--~-~-l .____ 1 ...•.. --f------··l P P p ·p ·, · c c ' 3 i 1 __ :::.P.::ar::king=·==Lo=t _____________ --+ P * ' C* ' C* __;___ ' . --l----t---=---+-=--+-------------t--4-!r---1 ___ R_e.._p_o_ss_e_s_si...:o_n_S.;_t...:o_rage_,"-'--_F_acili_·_·t"'y-'('-~-"epLo'-t:...l...:o-"t),___ ______ --+-----+---t--I per200sq:...._ft_.________ -+-----~ I ' 1 per 2 employees Qargest shift) 1 B ! OR 1 per 500 sq. ft. 3 I r----'---L--!-----------·~·-L---.···_j·-·-Vehicle Sa les,_Le~_&_R_en_tal _____ _ I I : I .L ____ ,j_ _____ L __ _,__ __ _,__ __ , C* P * INDUSTRIAL USES E;isting Jnd~stri3.1-Uses App lying fo;Pc rrnitS t o : ----;-·--, -·--r---.---·--:-·-·-! --~-------------·---,.-·-· .. 1 -~~9 _________ _ ! C ! i i J C ! C j C j As required by underlying usc I 4 ! -----'----'------'i_. ___ j ___ ~! ~----j~ ___ j ___ .i_ ___ _l ___ .J_ ____ M J ---j----- Alternative E n e rgy Ethanol Diesel & Biofuel Production C* I C* J j ~----+---t------+---i-----+---1_pe __ r_2_e_m_p_l_oy_ees ___ Oa_r_ge_s_t _sh_i_ft_)_. ___ 4-+--H -~!~-~.ll~.BY Facility:L____ -+-P_*_l_!_~__j __ J__ __ J ____ l~_:j-~_*_j_C_*~I_C_* _j__ I per 2 employees Qargest shift) 4 --~ind En~-~-------------''--P_*_ I P * L__j ! j C* [ C* i C* I C* I ---1 1 per 2 employees Qargest shift) .L~_L ___ j _Manufacturing ----.--~--~. -----,--·--r-------------------. ---··---.----·; C* j ! ! j ! ! j 1 per 2 employees Qargest sh1ft) i 4 1 H l :! '!I i! OR~~.::-l Manufacturing, Fertilizer P* C* · I 1 I ! 1 per 2 employees Qargest shift) j 4 i i __ _,M_,an=u=f=ac'-'tu=rin=g,"--'G'-'e=n=ec:.;ral=------------------t-----f--::-:--!!-----l-----;-! -----+-----t-i ! OR 1 per 500 sq . ft. 1 ' I P* P* P * P* -~ -----~ 1 per 2 employees Qargest shift) ! 4 l -----+-----+ C*_._ __ --l J OR 1 per 500 sq. ft. ! __ _[ ___ __j p p p p j i 1 per 2 employees Qargest shift) i Manufacturing, Light -__ R_es..:.c.:..ar.;__;.ch;.......:La...:...:bo...:...:ra;:.t;;.;oc:ry"-"&.:.....:D:...e:..v...:e..:.lo:..p'-'m-'-"en=t ______ 1____"-----''-----'--__L____L_ OR 1 per 500 sq ft i i --'---1 ~~':~~~~& Fre ~ght Handling::o::~---:-,..-,- Assembling, Processing I ndustries, Wholesale, & ! P* r----J P * C* i P * -~ -----.--1 Pe' 2 ;;pi~yecs Qarges t shi ft) 4 1 ! Warehouse --•----l---~' __ ...,..; __ _j _____ ) OR I per 500 sq. ft. ·--!j __ _. P* C* i C* i ' i i · 1 per 2 employees Qargest sh,ft) : ; S ·-------------i-1 ---..:.:c------1 -J---i---_[ _ _j , i _ OR 1 per 500 ~-·---~:_4 __ ;__~ I i i ! J i P* i P* ! P* ! P* j see Office, if applicabl e i 3 I Distribution Center ----~---~---- ~~orage, Recreational Vehicle & T rnvel Trailer ~r:age, Self Mini-Warehouse --.........1.----~----L---.1.----' ----'--~·-----l.---t---i----~ i P* I P * i P * i ! i i C* ! C* ! C* i see O ffic e if applicable i 3 l S ! Whol esale T rade \Vholcsale Storage of Gaso line or Bulk Terminal Plants Waste Rela te d Recycling Collection Centers (unmanned) Recycling Collection Centers & Solid Waste _ __fontainer Siteumann~------ Recycling Plant ! !_M.:-____j___L_ __ , _____ ; ___ l__ i ! • • --------~-----L__......L_ ___ --i ----r~·----,-----..-------,.----,-------,-----,-----..----------------·--y----~·---·--l C* I I per ~~r:::~~g:~ge~t shift) 4 l 1-1-3 I ·--i I P* ! P* ' P * I P* P * ! P* P* P* 1 per unit I [--~~--~' --i ___ ;__:.._ -+---MM·l ' p 1 p i l C C 1· C ; C C 1 per 2 employees Qargest shift) ! 4 i i i i i I I [ . I I . . ! 1 I I 1 ; ; i ---i-----l--:---:OR 1 per ~5l0 si _~:_ ____ J_ ___ _L ____ j p C C ·r----·r-~---~ -----~ I per 2 employees Qargest shift) J 4 J i f-----!i----i-----+---1----+1 --+ ---i'-----i------+------O::.R:.::..:l_,p'-'e"-r-"5"-00"-"-sq1 . ...:f.~~.t. 1--L--J c I ! I C* C* C* 1 per 2 employees Qargest shift) i 4 I j C* C* C* * 040416 HC BOC Page 15 Harnett ATTACHMENT 4 ~~~'""COUNTY .......,~m::;;;..._........., NORTH CAROLINA I www.harnett.org A RESOLUTION AMENDING THE HARNETT COUNTY UNIFIED DEVELOPMENT ORDINANCE WHEREAS, the Board of Commissioners of Harnett County adopted the UDO on October 17, 2011 for the purpose of promoting the health, safety, and general welfare of the county residents; and WHEREAS , this ordinance was adopted under authority granted by the General Assembly of the State ofNorth Carolina, particularly G.S. 153A-340; and WHEREAS, the UDO contains provisions for amending said ordinance and those provisions have been followed; and WHEREAS, the Harnett County Planning Board has reviewed the amendments to the articles of the UDO as listed below and recommends the adoption of the following amendments. NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF HARNETT COUNTY, NORTH CAROLINA that Article I Section 14.1.10 "Building Height, Required", Section 14.3.5 "Compatibility Design Concept Table"; Article V Section 1.2 "Table of Use Types and Regulations", Section 3.2.1 "Multifamily Residential Development: General Regulations", Section 8.2.3 "Manufacturing, Light", Section 11 .8.3 "Planned Unit Development Design Guidelines"; Article VII Development Design Guidelines Section 4 .0 "Sidewalk Standards" of the UDO shall be amended to read as indicated in "Attachment". "Attachment" is filed with the Unified Development Ordinance in the Clerk to the Board's Office. Duly adopted this 21st day of March, 2016 and effective upon adoption. HARNETT COUNTY BOARD OF COMMISSIONERS Jim Burgin, Chairman strong roots • new growth 040416 HC BOC Page 16 ADD I AMEND the following to .... ARTICLE IV. ZONING & OVERLAY DISTRICTS Section 14.1.1 0 Building Height, Required The maximum heigh t of an y s tructure shall be th e same as required b y the underlying zoning di stri ct unless otherwise s tated herein. Buildings located within the, Rural Center, Employment Mixed Use, or Compact Mixed Use Land Use Cla ssifications are exempt fro m the di strict height requirement if they conform to th e following: A. Highest point of the building s hall not exceed 8 5 feet. B. Fire Code Official shall certify that the building is d es igned and equipped to provid e adequate fire protection. All buildings that exceed maximum building height o f 35 feet shall provide au tomatic s prinkler system in accordance with the North Carolin a State Building Cod e. S ection 14.3.2 Land Use Classes The Land Use Classifications Li sted herein shall coincide with the Harnett County Land Use Plan. Definitions of s aid classifications and further information shall be found in the Harnett County Land Use Plan. A. P A: Protected Area s B . ESA: E nvironmentally Sensitive Areas C. CDT A: Compatibility Development Target Areas D . MCB: Military Corridor Buffer E. ARR: Agricultural and Rural Residential F . LOR: Low Density Residential G. MDR: Medium Density Residential H. RC: Rural Centers I. CMU: Compact Mixed Use J. EMU: Employment Mixed Use S ection 14.3.5 Compatibi/iry Design Concept Table 040416 HC BOC Page 17 S ectio11 14.3.5 Compatibiliry Design f;l Ul l2 ~ c f;l 0 :<: Ul "' < 0 Vi u "" ~ "" f-~ § "" b "" < F-Ul 13 ~ Concept Table >-< < "" ... ~ ~ "" :2 ~ r->->-w en r-~ ::?. u != f--;r: Ul ~ "' 5 G li: z "" ~ f;l ~ ~ ~ Ul ~ :l ~ ~ .. !-0 ~ w w "" !;; .... 0 ct ;: ... .3 tf. 0 0 < ... 0 :::> ::::> != Vlo:~ i2 Ul ::::> Vi u:>-0 v;u 0 ... >-~ :J ~co en Vl Vl . RA-40 Zonin~ I I R, ' RR, A, 2:40,000 sq. ft. minimum lots 2:35,000 sq. ft. minimum lots 1 2:28,000 sq. ft. minimum lots 100' 35' 25' 10' 20' 10% 2:30,000 sq. ft. minimum lots 100' 35' 25' 10' 20' 0% 2:25,000 sq. ft. minimum lots 100' 35' 25' 10' 20' 0% 2:20,000 sq. ft. minimum lots 80' USE CLASS: MDR, RC, CMU, EMU 29' USE CLASS: MDR, RC, CMU, EMU 2:20,000 sq. ft. minimum lots 25' 2:15,000 sq. ft. minimum lo ts 80' 30' 20' 2:12,000 sq. ft. minimum lots 20' 2 70' 20' I S' S' IS' 20% 2 29' 70' 20 ' 15' 5' 1S' 30% 2 29 ' 2:6,000 sq. ft. minimum lo ts -OPTIONAL 1 PUBLIC WATER O R SEWER 2 PUBLIC WATER AND SEWER 040416 HC BOC Page 18 ARTICLE V. USE REGULATIONS 3.1 Multifamily Residential 3.2.1 Multifamily Residential Development: General Regulations The follo wing regulations shall apply to all Apartment Development, Condominium Deve lopment, Duplex Develo pment, Multifamily Development (o ther), and Townhome Development. A. Multifamily resjdential development shall be permjtted m, Rural Center, Employment MDced Use, and Compact Mixed Use Land Use Classifications , and shall require a conrutional use permit m all other Land Use Classifications. 8.1 Manufacturing 8.2.3 Manufacturing, Light Subject to the following requirements: LAND USE MAXIMUM LOT AREA Agricultural & Rural Residential No Greater Than 15 Acres Low Density Residential No Greater Than 15 Acres Medium Density Residential No G n:ater Than 1 5 Acres Employment Mixed Use No G reater Than 15 Acres Protected Areas, Environmentally Sensitive N /A Areas, Compact Mixed Usc, Rural Center, 040416 HC BOC Page 19 ATTACHMENT 5 DAVENPORT & CoMPANY To From Date Subject Background Harnett County , NC Davenport & Company LLC March 21, 2016 2016 Refinancing of 2009 Certificates of Participation RFP Summary Davenport Public Finance Ind epende nc e Cente r 101 N. Tryo n Street Ste. 1220 Charl otte, NC 28246 Davenport & Compan y LLC ("Davenport"), on behalf of Harnett County, NC (the "County"), distributed a Request for Proposals ("RFP ") to secure a Direct Bank Loan to advance refund all or a portion of the County's outstanding Certificates of Participation, Series 2009 (the "2009 COPs ") and fund the associated Costs of Issuance. The RFP was distributed to over 35 National, Regional, and Local Banks. After the initial distribution, Davenport contacted each of the potential bidders to assess their interest in the financing and address any questions they had. The RFP also requested that responding institutions provide interest rate proposals for two different funding scenarios. These scenarios were designed to provide the County with the option to either refund just the callable maturities of the 2009 COPs (6/1/2020 -6/1/2029) or refund all outstanding maturities of the 2009 COPs (6/1/2016 -6/1/2029). A summary of the scenarios requested is outlined below: Option A: Option B: RFP Responses Refund the callable maturities of the 2009 COPs Refund all outstanding maturities of the 2009 COPs Through this process , the County was able to secure four responses to the RFP, including: 1 . Capital One Public Funding ("Capital One"); 2. PNC Public Finance ("PNC "); 3. Raymond James Capital Funding ("Ra ymond James "); and 4. Reg ions Capital Advanta~e ("Regions"). The following pages contain a summary of the key terms and conditions for each of the responses received . Member NYSE I FIN RA I SI PC Page 1 040416 HC BOC Page 20 DAVENPORT & CoMPANY 2016 Refinancing of 2009 Certificates of Participation RFP Summary March 21, 2016 Discussion Points 1. Interest Rate While all four banks submitted proposals consistent with the RFP spec ificat ions, Ra ymond James and Regions offered the lowest interest rates, as shown in Table 1 below. The rates offered by all of the banks are fixed through the final maturity of the loan and will be held firm for a closing by April 22 2016. Table 1: Summary of Interest Rates Interest Rate Bank Final Maturity Rates Held Firm Through Option A Option B Ra ymond James 2.41% 2.28% 6/1/2029 Apri l 22nd ----------------------- Regions Nj A 2.37% 6/1/2029 April 22nd 2.20 %1 PNC 2 .67% 2.48% 6/1/2029 April 22nd ----------------------- Capital One 2.95% 2.65% 6/1/2029 April 22nd 1 Rate a vailable if the County agrees to establ ish commercial ca rd with Regions within 120 days of loan c losing. 2. Prepayment Prov isions Prepayment provisions offered by the four bank proposals are shown in Tabl e 2 below. Table 2: Summary of Prepayment Provisions Bank .Prepayment Provisions Raymond James Prior to June 1, 2026: Non-callablel Thereafter: In whole or in part on any payment date at Par2 Regions In who le or in part at any time at 101% PNC Make-whole cal l3 Capital On e Option A-No call until 06/01/22, then at par on any in terest payment da t e Option B -No ca ll until 06/01/23, then at par on any interest payment date 1 Prior to this date, the loan may not be prepaid in whole or in part without consent of the Lender. 2 Partial prepayment s shall be applied in inve rs e order of maturity and shall be subject to a minimum amount of $500,000. 3 A make-whole call will allow the County to prepay or pay off the loan prior to maturity; however, it effectively eliminates the potent ia l to ach1eve any future debt service savings. Member NYS E I FINRA I SIPC Page 2 040416 HC BOC Page 21 DAVENPORT & CoMPANY 2016 Refinancing of 2009 Certificates of Participation RFP Summary March 21, 2016 3. Collateral The 2009 COPs are curren tly secured by a Deed of Trust and security interest in both Boone Trail Elementary School and Harnett Central High School (t he "Facilities "). Under Option A, the County would continue to secure the loan with both Boone Trai l Elementary School and Harnett Central High School. Option B allows the County to potentially release one of the pledged Facilities . A summary of the proposed collateral requirements for Option B is found in Table 3 below. Table 3: Option B Collateral Requirement -------· Bank Option B Collateral Requirements Raymond James Harnett Central High School Regions Harnett Central High School -.. --· --... PNC Boone Trail Elementary School or Harnett Central High School Cap ital One Not Specified 4. Other Considerations Regions' proposa l included a lower interest rate option, shou ld the County establ is h a commercial card program with Regions. Based on discussions with County Staff, it is Davenport's understanding that t he County was already in the process of pursuing a commercial card program with Regions prior to the distribution of the RFP. As such, the lo wer interest rate option provided by Regions is a viable option for the County to consider. Member NYSE I FINRA I SIPC Page 3 040416 HC BOC Page 22 DAVENPORT & CoMPANY 2016 Refinancing of 2009 Certificates of Participation RFP Summary March 21, 2016 5 . Estimated Savings A pre lim inary indication of the estimated savings structure for the Regions Option 8 2.20% p roposal is shown in Table 4 below. These savings are compared t o current public market estimates and the Raymond James proposals t o provide additional perspective. The preliminary estimated savings shown in Table 4 are "Net Savings" that account for estimated costs of issuance and negative arb itrage. Table 4 : Estimated Debt Service Savings A B c 0 E Public Sale · Regions Ba nk Raymond James Raymond James 5 /26/16 Closing Option B · 2 .20%4 Option B Opt ion A 1 ~um!D~[~ Qf_ 6!10dS Bth.!Q_d!ld 2 Par Amount $21,595,000 $29.075,000 $29,075,000 $21.595,000 -. 3 Coupon 4.000%. 5.000% 3.500%. 5.000% 3.500%. 5.000% 4.000%-5.000% .. 4 Ga ll Date 6/1/2019 6/1/2019 6/1/2019 o/1!2_019 -- 5 Maturities 6/1/20 . 6/1/29 6/1/16 -6/1/29 6/1/16-6/1/29 6/1/20 . 6/1/29 6 . ---- 7 §~!!1.m.~r~ Qf B~:tuodiog 8 F ina~_~atur~y 6/1/2029 6/1/2029 6/1/2029 6/1/2029 9 Interest Rate (TIC) 2.35% 2.20% 2.28% 2 .41% 10 Rate Expiration N/A April22nd April22nd April22nd 11 Bank 1 Legal Fees N/A $6,000 $83,458 $66,263 12 Par Amount $20,180,000 $30,906,000 $30,983,000 $24,105,000 . - 13 Gall Provision 6/1/2026 at 100% Current at 101% 6/1/2026 at 100% 6/1/2026 at 100% 14 15 F iscal Year Estimated Savlngs2 Estimated Savlngs3 '4 Estimated Savings 3 Estimated Savl ngs 3 16 2016 1 $ $ $ $ 17 2017 8.136 142,870 122.447 119,672 18 2018 22,150 143,162 122,518 119,630 19 2019 22,150 142,896 122.238 119.752 20 2020 162,150 142,992 122,343 120.066 21 2021 160.150 142,828 122,210 119,630 22 2022 159.500 143,120 122,536 119,660 23 2023 163.000 143,108 122,578 119,440 24 2024 161,000 142,908 122.435 120,039 25 2025 159,550 143,298 121,884 120.209 26 2026 1 58,350 142,676 122,352 119,391 27 2027 162,000 142.642 122,394 120,185 28 2028 160,000 143,042 122.873 119,397 29 2029 162,750 143,122 122,030 119,309 30 Total $ 1,660,886 $ 1,858,664 $ 1 ,590,837 $ 1 ,556,379 31 Net Present Value Sav1ngs 2 3 $ 1.396,839 $ 1.615,527 $ 1 ,377,333 $ 1.338,015 32 % NPV Savings2 3 6.47% 5.56% 4.74% 6.20% 33 ~~~lill~ ~rllilra~ 34 Arbitrage Yield 2.13% 2.20% 2.28% 2.41% 35 Esc row Yield 1.07% 1 .07% 1.07% 1.09% 36 Negative Arbitrage 2 3 $ 708,505 $ 938,669 $ 1,003.580 $ 906,356 1 Assumes the County makes an eQuity contnbution at closmg ' Prehmmary and subject to change. rates as of 3/9/16 Assumes a closing date of May 26th sa .. ngs shown mclude assum ed Cost of Issuance of $300.000 and Underw!lt er's 01scount of $100.900 'PreH'l"lnary and subject to change Assumes a ctosmg date of April 21st. Sa111ngs shown mclude assumed Cost of Issuance of $130 .000 plu s any Ban k / Legal fees (If necessary). ' Rate avalable 1f the County agrees to establiSh commercial card w•t h Reg,on s Within 120 days of loan closing Member NYSE I FINRA I S IPC Page 4 040416 HC BOC Page 23 DAVENPORT & CoMPANY 2016 Refinancing of 2009 Certificates of Participation RFP Summary March 21, 2016 Recommendation Based upon our review of the proposals, related analyses , and discussions with County Staff and Bond Counsel, Davenport recommends that the County select the Regions Option B proposa l with a 2.20% interest rate. The Regions proposal offers the lowest interest rate and the highest Debt Service Savings compared to the other bank proposals and the estimated current public markets. Additionally, the Regions proposal provides the County the opportunity to prepay the loan , if desired. Next Steps March 21st County Board Meeting -County Board Holds Public Hearing -County Board Selects Winning Bidder April 4th County Board Meeting -County Board Adopts Issuance Resolution April 5th LGC considers approval of the financing. Week of April 11th Subscribe for SLGS and Finalize Numbers. On or about April 21st Close on Financing. Member NYSE I FINRA I SIP C Page 5 040416 HC BOC Page 24 DAVENPORT & CoMPANY 2016 Refinancing of 2009 Certificates of Participation RFP Summary March 2 1 , 2016 The U.S. Securities and Exchange Commisston (the "SEC") has clarified that a broker. dealer or muntcipal secunties dealer engaging in municipal advisory activities outside the scope of underwriting a particular issuance of municipal securities should be subject to muni cipal advisor registration. Davenport & Company LLC ("Davenport") has registered as a municipal advisor with the SEC. As a reg istered municipal advisor Davenport may provide advice to a municipal enttty or obligated person. An obligated person is an entity other than a municipal entity, such as a not for profit corporation, that has commenced an application or negotiation with an entity to issue municipal securities on its behalf and for which it will provide support. If and when an issuer engages Davenport to provide financial advisory or consultant services wtth respect to the issuance of municipal securities, Davenport is obltgated to evidence such a ftnancial advisory relationship with a written agreement. When acting as a regtstered municipal advisor Davenport is a fiduciary required by federal law to act in the best tnterest of a municipal entity without regard to its own ftnancial or other int erests. Davenport ts not a fiduciary when it acts as a registered tnvestment advisor, when advtsing an obligated person. or when acttng as an underwriter, though it is required to deal fairly with such persons. This material was prepared by public finance, or other non-research personnel of Davenport. This material was not produced by a research analyst. although it may refer to a Davenport research analyst or research report. Unless otherwise indicated, these views (if any) are the author's and may differ from those of the Davenport fixed income or research department or others in the firm. Davenport may perform or seek t o perform financial advisory services for the issuers of the securities and instruments mentioned herein. This material has been prepared for information purposes only and is not a solicitation of any offer to buy or sell any security/instrument or to partictpate in any tradtng strategy. Any such offer would be made only after a prospective participant had completed its own independent investigation of the securities. instruments or transactions and recetved all information it required to make i t s own investment decision, including, where applicable, a review of a ny offermg ctrcular or memorandum describing such security or instrument. That information would contain mater ial information not contained herein and to which prospective participants are referred. This material is based on public information as of the specified date. and may be stale thereafter. We have no obligation to tell you when information herein may change. We make no representation or warranty with respect to t he complet eness of this material. Davenport has no obligation to continue to publish information on th e securities/instr uments mentioned herein. Recipients are req uired to comply with any legal o r contractual restrictions on their purchase, hold ing, sale, exercise of rights or performance of obligations under any secuntiesjinstruments transaction. The securities/instruments discussed in th is material may not be suitable for all tnvestors or issuers. Rectptents should seek independent financial advice prior to making any mvestment decision based on this material. This material does not provide tndivtdually tailored investment advtce or offer tax , regulatory, accounttng or legal advice. Pnor to entenng into any proposed transaction, recipients should determine. in consultatton wtth thetr own tnvestment. legal, tax, regulatory and accounting advtsors, the economic nsks and merits. as well as the legal. tax, regulatory and accounting characteristics and consequences. of the transaction. You should consider thts material as only a single fa ctor tn making an investment dectsion. The value of and income from investments and the cost of borrowing may vary because of changes in interest rates, foreign exchange rates , default rates, prepayment rates, securittesjinstruments prices, market indexes. operational or financial conditions or companies or other factors. There may be time limitations on the exercise of options or other rights in securities/instruments transactions. Past performance is not necessarily a gu ide to future performance and estimates of future performance are based on assumptions that may not be realized. Actual events may differ from those assumed and changes to any assumptiOns may have a material impact on any projections or estimates. Other events not taken into account may occur and may stgntficantly affect the projections or estimates. Certatn assumptions may have been made for modeling purposes or to simplify the presentation and/or calculation of any projeCttons or estimates. and Davenport does not represent that any such assumptions will reflect actual future events. Accordingly, there can be no assurance that estimated returns or projections wtll be realized or that actual returns or performance results will not matenally differ from those esttmated herein. This material may not be sold or redtstributed without the prior wntten consent of Davenport. Verston 01.13.14 ICH MB TC Member NYSE I FINRA I S I PC Page 6 040416 HC BOC Page 25 Agenda Item _J.{ ___ -.....;:B~- BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2016. Eltvfrr,n i C.$ f"J\A.n~t-tf\!11 T Section 1. To amend the General Fund, P~:~blie B~:~iiEiiRgs Department, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 250-6600-461-35.56 Special Account/Electronics Management $12,111 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 250-0000-336-25.01 Electronic Management $12,111 EXPLANATION: move monies to cover electronic recycling Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted this day of Margaret Regina Wheeler, Clerk to the Board , 2016. Jim Burgin, Chairman Harnett County Board of Commissioners 040416 HC BOC Page 26 BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the f iscal year ending June 30, 2016; Section 1. To amend the General Fund , Aging Division/Health Department, the appropriations are to be changed as follows: EXPENDITURE CODE NUMBER 110-7501-441.32-11 110-7501-441.60-47 REVENUE CODE NUMBER 110-0000-353.75-01 EXPLANATION: AMOUNT AMOUNT DESCRIPTION OF CODE INCREASE DECREASE Family Care Support $ 50.00 Food & Provisions $ 100.00 AMOUNT AMOUNT DESCRIPTION OF CODE INCREASE DECREASE Donations $ 150.00 Budget Amendment to budget additional donations that have been given to the Family Caregiver Program . ~-=--' 87P-/-/b Co nty M a r (Date) Section 2. Copies of this budget amendment shall be furnished to the Clerk of the Board , and to the Budget Officer and the Finance Officer for their direction. Adopted this Margaret Regina Wheeler, Clerk to the Board day of ,2015 Jim Burgin , Chairman Harnett County Board of Commissioners ~llb 040416 HC BOC Page 27 BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of t he Cou nty of Harnett, North Carolina , that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2016: Section 1. To amend the General Fund, Sheriff's Department, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-5100-420-60-33 Materials and Supplies 716 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-0000-354-11-QO Restitution-Sheriff's 716 EXPLANATION: To transfer Sheriff's restitution funds received into the Materials and Supplies expenditure line For budget year 2015-2016. APPROVALS : ~~ 5t{Jliv ~ :3-:21-/t:_ Department Head (date) (date3 l \ 7uJltY a ~date) Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted this day of , 2016. Margaret Regina Wheeler, Interim Clerk to the Board Jim Burgin, Chairman Harnett Cou nty Board of Comm i ssioners 040416 HC BOC Page 28 BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the followi ng amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2016 : Section 1. To amend the General Fund, Cooperative Extension program , the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-7398-465-32 -31 4-H Expenditure 8,000 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-0000-399-00-00 Fund Balance Appropriated (4-H) 8,000 EXPLANATION: Increasing budget line for 4-H programs, such as the week long 4-H Summer Camp program & youth development activities at Betsy Jeff Penn 4-H Educational Center involving over 20 youth participants @ $420 each; the 4-H Summer Learning programs at the Agriculture Center sponsoring programs like Youth Cooking in the Kitchen, Junior Gardeners, Mad Scientist Learning programs, Outdoor Learning, etc; also the Award Winning Annual Girls Are Great Conference educating over 300 girls and their adult female guardians about the emotional and physical changes experienced by adolescent girls and helping to open the lines of communication between girls 9-16 and their mothers. These programs are on schedule prior to the closing of the fiscal year. ~~ Jfrj~, 0 9J11-3-)'-f-jb ~nt ead ( ate) ~e Office at1l ~~ County Manager (date) ~j.LL Ita Section 2. Cop ies of this budget amendment shall be furn1shed to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction . Adopted this Margaret Regina Wheeler Clerk to the Board day of Jim Burgin, Chairman Harnett County Board of Commissioners 040416 HC BOC Page 29 BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina , that the following amendment be made to the annual budget ordinance for the fisca l year ending June 30, 2016; Section 1. To amend the General Fund, Health Department, the appropriations are to be changed as follows: EXPENDITURE CODE NUMBER 110-7600-441.41-11 REVENUE CODE NUMBER 11 0-0000-441.76-11 EX PLANA TJON: APPROVALS: ~\If 9t ~~vl Department Head (date) AMOUNT AMOUNT DESCRIPTION OF CODE INCREASE DECREASE Telephone and Postage $ 158.00 AMOUNT AMOUNT DESCRIPTION OF CODE INCREASE DECREASE Immunization Action Plan $ 158.00 Budget Amendment to decrease the revenues from the State for the Immunization Action Plan Program . ~~ 6-J/~/J. C nty anager (Date) Section 2. Copies of this budget amendment shall be furnished to th e Clerk of the Board , and to the Budget Officer and the Finance Officer for their direction. Adopted this Margaret Regina Wheeler, Clerk to the Board day of ,2015 Jim Burgin, Chairman Harnett Co unty Board of Commissioners 040416 HC BOC Page 30 BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year e nding June 30, 2016; Section 1. To amend the General Fund , Aging Division/Health Department, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-7510-441.32-13 Special Projects $ 600.00 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-0000-353.15-00 Donations -RSVP $ 600.00 - EXPLANATION: Budget Amendment to bud get additional revenues received for the RS VP Senior Fa i r. APPROVALS : {-3;-/& Section 2. Copies of this budget amendment sha ll be furnished t o the Clerk of the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted this Margaret Regina Wheeler, Clerk t o the Board day of ,2 015 Jim Burgin , Chai rman Harnett County Board of Commissioners 040416 HC BOC Page 31 BUDGET ORDINANCE AMENDMENT BE IT ORDAINED by the Governing Board of the County of Harnett, North Carolina, that the following amendment be made to the annual budget ordinance for the fiscal year ending June 30, 2016: Section l.To amend the Transportation budget, the appropriations are to be changed as follows: EXPENDITURE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-4650-410.55-12 Operating/Printing and Binding 200 110-4650-410.60-33 Operating-Supplies/Materials and Supplies 1800 REVENUE AMOUNT AMOUNT CODE NUMBER DESCRIPTION OF CODE INCREASE DECREASE 110-0000-331.46-01 Federal Grants/Transportation/MID COG-2000 Medical General EXPLANATION: Increase expenditures and revenues to reflect the amount awarded from the Mid-Carolina Council of Governments. APPROVALS: ~c;~ ~.1.1/~/? Dep rtment Head (date} ~~ 3-3/-/6 Count\/ ae'ridate} Section 2. Copies of this budget amendment shall be furnished to the Clerk to the Board, and to the Budget Officer and the Finance Officer for their direction. Adopted this. ______ day of, ______ J ______ _ Margaret Regina Wheeler Clerk to the Board Jim Burgin, Chairman Harnett County Board of Commissioner 040416 HC BOC Page 32 Ag e n d a Item 1../-C Bo a r d Re p o r t Ap p r o v e d __ _ _ _ _ _ _ _ _ _ _ _ _ ________ __ Da t e : 04 / 0 4 / 2 0 1 6 To : Ha r n e t t Co u n t y Bo a r d o f Co m m i s s i o n e r s Re : Co n s i d e r a t i o n o f Re f u n d fo r Ta x e s , In t e r e s t an d Pe n a l i t i e s fo r al l Mu n c i p a l i t i e s Ad j u s t m e n t Re a s o n Bl d g co r r e cti o n MH as re a l pr o p e r t y S. Ke i t h Fa u l k n e r Ta x Ad m ini s t r a t o r Bi l l Ty p e 00 0 2 0 0 9 8 6 2 -20 1 5 -20 1 5 - 0 0 0 0 -00 RE I 00 0 2 1 1 2 8 0 3 -20 1 5 - 2 0 1 5 -00 0 0 -00 RE I Re c e i v e d Am o u n t Re f u n d Am o u n t Na m e 2, 6 0 3 .82 10 9 .39 AR R O Y O , SAUL 55 4 . 7 8 30 7 . 6 0 MC N E I L L , DONNIE LEE 040416 HC BOC Page 33 Agenda Item '-/-D Harnett ,~ .... -C 0 U N T Y NOR TH CAROLINA RESOLUTION BE IT RESOLVED that the Harnett County Board of Commi ssioners does hereby, by proper execution of this document, request that the North Carolina Department of Transportation add to the State's Secondary Road System the below listed street. Tirzah Subdivision Tirzah Drive (SR 1337 Extension) Duly adopted this 4th day of April , 2016. ATTE ST: Margaret Regina Wheeler C lerk to the Board strong roots • new growth HARNETT COUNTY BOARD OF COMMISSIONERS Jim Burgin, Chairman www.harnett.org 040416 HC BOC Page 34 PAT McCRORY Go vernor NICHOLAS J. TENNYSON Transportation March II, 2016 Mrs. Gina Wheeler Clerk Harnett County Board of Commissioners Post Office Box 759 Lillington, North Carolina 27546 Subject: Secondary Road Addition To Whom It May Concern: Secretary This is in reference to a petition submitted to this office requesting street(s) in Harnett County be placed on the State 's Secondary Road System. Please be advised that these street(s) have been investigated and our findings are that the below listed street(s) are eligible for addition to the State System. Tirzah Subdivision • Tirzah Drive (SR 1337 Extens ion) It is our recommendation that the above named street(s) be placed on the State 's Secondary Road System. If you and your Board concur in our recommendation, please submit a resolution to this office. Sincerely, A ~idt- Engineering Technician ~Nothing Compares ~ Sta te of N011h Carolina I Departm ent of T ransportation 1 Div1s1on 6 , Distnct 2 600 Southem Avenue 1 Post Office Box 1 150 I Fayetteville , North Carohna 28302 9 10 486 14 96 T 040416 HC BOC Page 35 -........ __ _ .............. --..... I I I I I I I I I I I I I ' I '-......... I ( 040416 HC BOC Page 36 Agenda Item lf-C EXTRACTS FROM MINUTES OF BOARD OF COMMISSIONERS A Regular Meeting of the Board of Commissioners (the "Board") of the County of Harnett, North Carolina was held on Monday, April 4 , 2016, at 7:00 p .m. in the County Commissioners' Meeting Room, Harnett County Administration Building, I 02 East Front Street, Lillington, North Carolina, Jim Burgin, Chairman of the Board of Commissioners of the County of Harnett, North Carolina, presiding and the following Commissioners present: Commissioners Present: Commissioners Absent: * * * * * * * * * Commissioner introduced the following resolution , a summary of which had been provided to each Commissioner, a copy of which was available with the Clerk to the Board and which was read by title: RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, APPROVING AN INSTALLMENT FINANCING CONTRACT AND A DEED OF TRUST WITH RESPECT THERETO AND DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS WHEREAS, the County of Harnett, North Carolina (the "County") is a validly existing political su bdivision of the State of North Carolina, existing as such under and by virtue of the Constitution, statute s and laws of the State of North Carolina (the "State"); WHEREAS, the County has the power, purs uant to the General Statutes of North Carolina to (I) purchase real and personal property, (2) enter into installment financing contracts in order to finance the purchase of real and personal property used , or to be used, for public purposes, and (3) grant a security interest in some or all of the property purchased to secure repayment of the purchase price; WHEREAS, the County ha s previously executed and delivered an Installment Purchase Contract dated as of February I, 2009 (the "Prior Contract") between the County and Harnett County Public Facilities Corporation (the "Corporation"); WHEREAS, to secure its obligations under the Prior Contract, the County has previously executed and delivered a deed of trust encumbering, among other collateral, the site on which Harnett Central High School is located (the "Site") and the improvements thereon; WHEREAS, the Board of Commissioners ofthe County (the "Board') has previou sly determined that it is in the best intere st of the County to refinance its in stallment payment obligations under the Prior Contract; WHEREAS, the Board hereby determines that it is in the best interest of the County to enter into an in sta llment financing contract dated on or about April 21, 2016 (the "Contract") with Region s Capital Advantage, Inc . (the "Lender") in order to pay the capital costs of refinancing its installment payment obli gations under the Prior Contract; PPAB 3 184673v2 040416 HC BOC Page 37 WHEREAS, the Board hereby further determines that it is in the best interest of the County to enter into a deed oftrust. security agreement and fixture filing in connection with the Contract (the "Deed ofTrust") relating to the County's fee simple interest in the Site and the improvements thereon; WHEREAS. the Board adopted a resolution on March 7 , 2016 making certain findings with respect to the Contract, the Deed of Trust and the projects to be refinanced thereby; WHEREAS, the Board conducted a public hearing on March 21 , 2016 to receive public comments on the Contract, the Deed of Trust and the projects to be refinanced thereby; WHEREAS, the County has filed an application with the LGC for approval of the LGC with respect to the County entering into the Contract in an aggregate principal amount of not to exceed $31 ,900,000 at the interest rate specified in the Contract; WHEREAS, there has been made available to the Board the forms of the: (a) the Contract; (b) the Deed ofTrust; (c) an Escrow Agreement dated as of April21, 2016 (the "Escrow Agreement') between the County and U.S. Bank National Association, as escrow agent, relating to the refinancing of the County 's payment obligations under the Prior Contract; and (d) a Lease Agreement dated as of April 21, 20 I 6 (the "Lease Agreement ") between the County and the Harnett County Board of Education relating to the lease of the Site by the County to the Board of Education; (collectively, the "Instruments"), which the County proposes to approve, enter into and deliver, as applicable, to effectuate the proposed refinancing at an interest rate specified in the Contract; and WHEREAS, it appears that each of the Instruments is in appropriate form and is an appropriate instrument for the purposes intended; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, AS FOLLOWS: Section 1. Ratification of Prior Actions. All actions of the County, the County Manager, the Finance Officer and the Clerk to the Board and their respective designees in effectuating the proposed refinancing are hereby approved, ratified and authorized pursuant to and in accordance with the transactions contemplated by the Instruments. Section 2. Approval, Authorization and Execution of Contract and other Instruments. The County hereby approves the refinancing of the Prior Contract in accordance with the terms of the Contract, which will be a valid, legal and binding obligation of the County in accordance with its terms. The County hereby approves the amount advanced by the Lender to the County purs uant to the Contract in an aggregate principal amount not to exceed $3 I ,900,000 at the interest rate specified in the Contract, s uch amount to be repaid by the County to the Lender as provided in the Contract. The forms , terms and content of the In struments are in all respects authorized, approved and confirmed, and the C hairman, the County Manager, the Finance Officer of the County and the Clerk to the Board or their respective designees are each authorized, empowered and directed, individually and collectively, to execute and 2 PPAB 3 184673v2 040416 HC BOC Page 38 deliver the Instruments for and on behalf of the County, including necessary counterparts, in substantially the forms presented to the Board, but with such changes, modifications, additions or deletions therein as they may deem necessary, desirable or appropriate, their execution thereof to constitute conclusive evidence of their approval of any and all such changes, modifications, additions or deletions, and that from and after the execution and delivery of the Instruments, the Chairman, the County Manager, the Finance Officer of the County and the Clerk to the Board or their respective designees are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Instruments as executed. Section 3. Further Actions. The County Manager, the Chairman of the Board and the Finance Officer of the County are each hereby designated as the County 's representatives to act on behalf of the County in connection with the transactions contemplated by the Instruments, and the County Manager, the Chairman of the Board and the Finance Officer of the County are each authorized and directed, individually and collectively, to proceed with the refinancing of the Prior Contract in accordance with the terms of the Instruments, and to seek opinions on matters of law from the County Attorney, which the County Attorney is authorized to furnish on behalf of the County, and opinions of law from such other attorneys for all documents contemplated hereby as required by law. The Chairman, the County Manager and the Finance Officer of the County are each hereby authorized to designate one or more employees of the County to take all actions which the Chairman, the County Manager and the Finance Officer of the County are each authorized to perform under this Resolution, and the Chairman , the County Manager, the Finance Officer of the County or their designees are each in all respects authorized on behalf of the County, individually and collectively, to supply all information pertaining to the transactions contemplated by the Instruments. The Chairman of the Board, the County Manager, the Finance Officer of the County and the Clerk to the Board are authorized, individually and collectively, to execute and deliver for and on behalf of the County any and all additional certificates, documents, opinion s or other papers and perform all other acts as may be required by the Instruments or as they may deem necessary or appropriate to implement and carry out the intent and purposes of this Resolution. Section 4. Repealer. All motion s, orders, resolutions, ordinances and parts thereof in conflict herewith are hereby repealed. Section 5. Severability. If any section , phrase or provision of this Resolution is for any reason declared to be invalid , such declaration will not affect the validity of the remainder of the sections, phrases or provisions of thi s Resolution. Section 6. Effective Date. Thi s Resolution is effective on the date of its adoption. On motion of Commissioner , seconded by Commissioner ---------' the foregoing re solution entitled "RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, APPROVING AN INSTALLMENT FINANCING CONTRACT AND A DEED OF TRUST WITH RESPECT THERETO AND DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS" was duly adopted by the following vote: AYES : NAYS : 3 PPAB 3 18 4673v2 040416 HC BOC Page 39 STATE OF NOR TH CAROLINA COUNTY OF HARNETT ) ) ) PARKER POE DRAFT 3/28/16 ss: I, MARGARET REGfNA WH EELE R, Clerk to the Board of Commissioners of the County of Harnett, North Carolina, DO HEREBY CERTIFY that the foregoing is a true and exact copy of a resolution entitled "RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF HARNETT, NORTH CAROLINA, APPROVING AN INSTALLMENT FINANCING CONTRACT AND A DEED OF TRUST WITH RESPECT THERETO AND DELIVERY THEREOF AND PROVIDING FOR CERTAIN OTHER RELATED MATTERS" adopted by the Board of Commissioners of the County of Harnett, North Carolina at a meeting held on the 41h day of April , 2016. WITNESS my hand and the corporate seal of the County of Harnett, North Carolina, this the _ day of April, 2016. PPAB 3184673v2 MARGARET REGINA WH EELER Clerk to the Board County of Harnett, North Carolina 040416 HC BOC Page 40 PP AB 3 185228v2 PARKER PO E DRAFT 3/28/16 INSTALLMENT FINANCING CONTRACT BETWEEN REGIONS CAPITAL ADVANTAGE, INC. AND COUNTY OF HARNETT, NORTH CAROLINA DATED AS OF APRIL21 ,20 16 040416 HC BOC Page 41 INSTALLMENT FINANCING CONTRACT TABLE OF CONTENTS (Thi s ta bl e of conte nts is fo r re ference onl y and is not part of the In sta llme nt Finan c in g C ontract.) ARTICLE I DEFINITIONS ••••••••••••••••••••••••••••••••••••••••••••••••••••••.•••••••••••••••••••••••.••••••••••.••••.•••••.•••••••••••••••••••••• 3 Section 1.1 Definitions .............................................................................................................. ) ARTICLE u THE ADVANCE •••..••••••••••••.••••••••••••••••••.••••••••••••.•••.•••••••••••••..•••.••••••••••.•.••••••••••••••••••••••..••••.•••• 6 Sectio n 2 .1 Advance .................................................................................................................. 6 ARTICLE Ill INSTALLMENT PAYMENTS; ADDITIONAL PAYMENTS ....................................................... 7 Section 3 .1 Amounts and Times oflnstallment Payments and Additional Section 3 .2 Section 3 .3 Section 3 .4 Section 3 .5 Payments .......................................................................................................... ? Place o f Paym e nts .................................................................................................. 7 Late C harge s ........................................................................................................... 7 No Abatement ........................................................................................................ 7 Prepayment of the Advance ................................................................................... 7 ARTICLE IV COSTS OF ISSUANCE ACCOUNT ••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 9 Section 4 .1 Section 4.2 Section 4.3 Deposit of Proceeds ................................................................................................ 9 Investment .............................................................................................................. 9 Disbursements ........................................................................................................ 9 ARTICLE v COVENANTS OF THE COUNTY •••••••••••••••••••••••••••••••••••••••••••••••••••••••••.••••.••••••••••••••••••••••.••••••• 10 Section 5.1 Section 5 .2 Section 5 .3 Se cti o n 5.4 Sectio n 5.5 Section 5.6 Sectio n 5 .7 Section 5 .8 Section 5.9 Care and Use ........................................................................................................ 1 0 Inspection ............................................................................................................. 1 0 Utilities ................................................................................................................. IO Taxes .................................................................................................................... IO Title In s urance ...................................................................................................... I 0 Insurance .............................................................................................................. 1 0 Risk of Lo ss .......................................................................................................... I I Performance by the Lender of th e County's Respon s ibilities .............................. 12 Financial Statements ............................................................................................ 12 ARTICLE VI TITLE; LIENS ...................................................................................................................... 13 Se ction 6 .1 Title ...................................................................................................................... 13 Section 6 .2 Liens ..................................................................................................................... 13 ARTICLE VII DAMAGE, DESTRUCTION, AND CONDEMNATION; USE OF NET PROCEEDS ...................................................................................................................................... 14 Section 7 .1 Section 7.2 Section 7.3 Section 7.4 Damage, Des truction or Condemnatio n ............................................................... 14 Obligation of the County to Repair and Replace ................................................. 14 In s ufficien c y ofNet Proceeds; Di scharge of th e Obligation of the County to Re pair the Mortgaged Property ..................................................... 14 Cooperatio n of Lender ......................................................................................... I 5 ARTICLE VIII REPRESENTATIONS AND WARRANTIES OF THE COUNTY ............................................. 16 Se ction 8.1 Repre sentatio ns and Warrantie s of the County .................................................... 16 040416 HC BOC Page 42 ARTICLE IX TAX COVENANTS AND REPRESENT AT IONS •••••••••••.••••••••.••••••••.••••••••.••••.•••••.•••••••••••••••••••• 18 Section 9.1 Tax Covenants and Representations .................................................................... 18 ARTICLE X INDEMNJFICATION ••••••••••••••••••••.•••••••••.•••••.•••••.•••••••••••••••••.••••.•••••••••••••••••.•••••••••••••••••••.••••.•• 19 Section I 0.1 Indemnification .................................................................................................... 19 ARTICLE XI DISCLAIMER OF w ARRANTIES ••••••••••••••••••••••••••••••••••••••••••••••••••••••.••••••••••••••••••••••••••••••••••• 20 Section 11.1 No Representations by the Lender ....................................................................... 20 Section 11 .2 Disclaimer by the Lender ..................................................................................... 20 ARTICLE XII DEFAULT AND REMEDIES •••••••••••••••••••••••••••••••••••••••••.••••.•••••••••••.••••••••••••.••••.••••••••••••••••••• 21 Section 12.1 Definition of Event of Default ............................................................................. 21 Section 12 .2 Remedies on Default ............................................................................................ 21 Section 12.3 Further Remedies ................................................................................................. 22 ARTICLE XIII ASSIGNMENT •••••••••••••••••••••••••••••••••.••••••••••••••••••••••••••••••••••••••••••••••.••••••.•••••••••••••••••••••••..•• 23 Section 13.1 Assignment ........................................................................................................... 23 ARTICLE XIV LIMITED OBLIGATION OF THE COUNTY ••••••••••.•••••••••••.•••••.•••••.••••.•••••.••••••••••••••••••••••••• 24 Section 14.1 Limited Obligation ofthe County ........................................................................ 24 ARTICL'E XV MISCELLANEOUS ••••••••••••••••••••••••.•••••••••••••••••••••••.••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••• 25 Section 15 .1 Notices .................................................................................................................. 25 Section 15.2 Time ..................................................................................................................... 25 Section 15.3 If Payment or Performance Date not a Business Day .......................................... 25 Section 15.4 Waiver .................................................................................................................. 25 Section 15.5 Section Headings .................................................................................................. 25 Section 15.6 Entire Contract ..................................................................................................... 25 Section 15.7 Binding Effect ...................................................................................................... 25 Section 15.8 Covenants of County not Covenants of Officials Individually ............................ 25 Section 15.9 Severability .......................................................................................................... 26 Section 15.10 Governing Law and Jurisdiction .......................................................................... 26 Section 15.11 Execution in Counterparts .................................................................................... 26 Section 15.12 E-VerifY ................................................................................................................ 26 Section 15.13 Iran Divestment Certification ............................................................................... 26 PAYMENT SCHEDULE············································································································································· PS-I II PP AB 3185 228v2 040416 HC BOC Page 43 INSTALLMENT FINANCING CONTRACT THIS INSTALLMENT FINANCING CONTRACT, dated as of April21 , 2016 (this "Contracf'), is between REGIONS CAPITAL ADVANTAGE, INC., a subsidiary of Regions Bank, an Alabama banking corporation (the "Lender"), and its successors and assigns, and the COUNTY OF HARNETT, NORTH CAROLINA, a political subdivision of the State (the "County"), validly existing under and by virtue of the Constitution, statutes and laws of the state ofNorth Carolina (the "State"). PREAMBLES WHEREAS, the County has the power, pursuant to Section 160A-20 of the General Statutes of North Carolina, as amended, to (1) purchase real and personal property, (2) enter into installment financing contracts in order to finance the purchase of real and personal prt>perty used, or to be used , for public purposes, and (3) finance the construction of fixtures or improvements on real property by contracts that create in the fixtures or improvements and in the real property on which such fixtures or improvements are located a security interest to secure repayment of money advanced or made available for such construction; WHEREAS, the County has previously executed and delivered an Installment Purchase Contract dated as of February I, 2009 (the "Prior Contract") between the County and Harnett County Public Facilities Corporation (the "Corporation"), the proceeds of which were used (A) to finance (I) the construction, furnishing and equipping of a new Boone Trail Elementary School and the acquisition of land therefor, (2) the construction, furnishing and equipping of a 24-classroom and auxiliary gymnasium addition to Harnett Central High School, (3) the construction, furnishing and equipping of a 15-classroom addition to Johnsonville Elementary School and ( 4) the construction, furnishing and equipping of a gymnasium at Highland Elementary School (collectively, the "Projects") and (B) to pay interest with respect to the 2009 Certificates (as defined herein) due on June I , 2009; WHEREAS, the Board of Commissioners of the County (the "Board') has previous ly determined that it is in the best interests of the County to refinance its installment payment obligations under the Prior Contract and to place a lien on the real property on which Harnett Central High School is located, as more particularly described in the Deed of Trust (as defined below) (the "Mortgaged Property"); WHEREAS, in order to obtain a portion of the funds to refinance its in stallment payment obligations under the Prior Contract, the Board has determined that it is in the best interests of the County to enter into this Contract with the Lender under which the County will make Installment Payments and Additional Payments in consideration thereof; WHEREAS, pursuant to this Contract, the Lender will advance to the County a principal amount of [$Amount] to be used to refinance the County's installment payment obligations under the Prior Contract and for other purposes as set forth in this Contract (the "Advance"); WHEREAS, the execution, performance and delivery of this Contract have been authorized, approved and directed by the Board by a resolution finally passed and adopted by the Board on April 4, 2016; WHEREAS, the execution, delivery and performance of this Contract by the Lender have been authorized, approved and directed by all necessary and appropriate action of the Lender; WHEREAS, the obligation of the County to make the Installment Payments and Additional Payments shall constitute a limited obligation of the County, payable solely from currently budgeted PP AB 3 185228v2 040416 HC BOC Page 44 appropriations of the County; shall not constitute a general obligation or other indebtedness of the County within the meaning of the Constitution of the State; and shall not constitute a direct or indirect pledge of the faith and credit or taxing power of the County within the meaning of the Constitution of the State; WHEREAS, in order to further secure the County's obligations under this Contract, the County has executed and delivered a Deed of Trust, Security Agreement and Fixture Filing dated as of April 21, 2016 (the "Deed of Trust") to the deed of trust trustee named therein for the benefit of the Lender creating a lien on all of the County's right, title and interest in the Mortgaged Property; and; WHEREAS, the County has leased the Mortgaged Property to the Harnett County Board of Education (the "School Board'') pursuant to a Lease dated as of April 21 , 2016 (the "Lease") between the County and the School Board, pursuant to which the School Board (I) will operate Harnett Central High School for the term of this Contract and (2) has agreed to assume certain obligations of the County under this Contract; WHEREAS, the Lease is subordinate to the lien of the Deed ofTrust; WHEREAS, no deficiency judgment may be rendered against the County in any action for breach of a contractual obligation under this Contract, and the taxing power of the County is not and may not be pledged in any way directly or indirectly or contingently to secure any money due under this Contract; NOW, THEREFORE, for and in consideration of the premises and the mutual covenants in this Contract contained, the parties hereto agree as follows: 2 PP AB 3185228v2 040416 HC BOC Page 45 ARTICLE I DEFINITIONS Section 1.1 Definitions. The following terms have the meanings specified below unless the context clearly requires otherwise: "Additional Payments" means the reasonable and customary expenses and fees of the Lender, any expenses of the Lender in defending an action or proceeding in connection with this Contract and any taxes or any other expenses, including, but not limited to, licenses, permits, state and local income, sales and use or ownership taxes or property taxes which the Lender is expressly required to pay as a result of this Contract (together with interest that may accrue thereon in the event that the County shall fail to pay the same, as set forth in this Contract). "Advance" means the total aggregate amount of [$Amount] advanced by the Lender to enable the County to refinance its installment payment obligations under the Prior Contract and for other purposes as set forth in this Contract. "Boarcf' means the duly elected governing Board of Commissioners of the County, or any successor to its functions. "Business Day" means a day on which the Lender, at its principal corporate office, is not required or authorized by law to remain closed. "Code" means the Internal Revenue Code of 1986, as amended, including regulations promulgated thereunder. "Corporation" means the Harnett County Public Facilities Corporation, a North Carolina nonprofit corporation. "Costs of Issuance" means all items of expense, directly or indirectly payable by or reimbursable to the County, related to the execution and delivery of this Contract, including, without limitation, the Lender's fe.es and expenses incurred in connection with the delivery of the Advance to the County, fees and expenses of the LGC, if any, legal fees and expenses, taxes , inspection costs and recording costs and expenses in connection with the granting of the security interest in the Mortgaged Property. "Costs of Issuance Account" means the account of that name created and held by the County under Section 4.1 of this Contract. "County" means the County of Harnett, a political subdivision of the State, validly existing under and by virtue of the Constitution, statutes and laws of the State, and any successor to its functions. "County Representative" means ( 1) the County Manager and the Finance Officer or such other person or persons at the time designated to act on behalf of the County for the purpose of performing any act under this Contract by a written certificate furnished to the Lender containing the specimen signatures of such person or persons and signed on behalf of the County by the County Manager of the County, or (2) if any or all of the County's rights and obligations are assigned under this Contract, the person or persons at the time designated to act on behalf of the County and the assignee by a written certificate similarly furnished and of the same tenor. "Deed of Trust" means the Deed of Trust, Security Agreement and Fixture Filing dated as of April 21, 2016 from the County to the deed of trust trustee named therein for the benefit of the Lender 3 PP AB 318 5228v2 040416 HC BOC Page 46 and its successor and assignees, creating a lien in and to the Mortgaged Property, and as the same may be amended and s upplemented from time to time as provided in the Deed of Trust, all of the terms, definitions, conditions and covenants of which are incorporated herein by reference and are made a part of this Contract as if fully set forth herein. "Determination of Taxability" means and shall be deemed to have occurred on the date when (a) the County shall receive notice from the Lender that the Internal Revenue Service has assessed as includable in gross income the interest component ofthe Installment Payments made by the County under this Contract due to the occurrence of an Event of Taxability or (b) the County or the Lender shall receive notice from the Commissioner or any District Director of the Internal Revenue Service that the interest component of the Installment Payments made by the County under this County is includable in the gross income of the Lender for federal income tax purposes due to the occurrence of an Event of Taxability. "Escrow Agent" means U .S. Bank National Association and its successors and assigns. "Escrow Agreement" means the Escrow Agreement dated as of April 21, 2016 between the Escrow Agent and the County relating to the defeasance of the 2009 Certificates. "Event of Default'' means any of the events of default as defined in Section 12 .1. "Event of Taxability" means the occurrence or existence of any fact, event or circumstance caused by the failure of the County to comply with any covenants in this Contract or any document or certificate executed by the County in connection with the transactions contemplated by this Contract which has the effect of causing the interest component of the Installment Payments made by the County under this Contract to be includable in the gross income of the Lender for federal income tax purposes. "Fis cal Year" means a twelve-month period commencing on July 1 of any year and ending on June 30 of the immediately succeeding year, or such other twelve-month period which may subsequently be adopted as the Fiscal Year of the County. "Inclusion Date" means the effective date that the interest component of the Installment Payments made by the County under this Contract is includable in the gross income of the Bank as a result of a Determination of Taxability. "Installment Payments" means those payments made by the County to the Lender as described in Article III and in the Payment Schedule attached hereto. "Inter est Rate" means 2.20% per annum, calculated on a 360-day year of twelve 30 day months. "LGC' means the Local Government Commission of North Carolina, and any successor to its functions. "Lease" means the Lease dated as of April 21, 2016 between the County and the School Board with respect to the Mortgaged Property. "Lender" means Regions Capital Advantage, Inc., a subsidiary of Regions Bank, an Alabama banking corporation, and its successors and assigns. "Lender Representative" means any person or persons at the time designated to act on behalf of the Lender for purposes of performing any act on behalf of the Lender under this Contract by a written certificate furnished to the County containing the specimen signatures of such person or persons and signed on behalf of the Lender by any vice president. 4 PP AB 3 185228v2 040416 HC BOC Page 47 "Mortgaged Property" means the real property located within the County on which the Harnett Central High School is located, and all improvements thereon, as more particularly described in the Deed of Trust. "Net Proceeds" means, when used with respect to any proceeds from policies of insurance, proceeds of any condemnation award arising out of the condemnation of all or any portion of the Mortgaged Property, or the proceeds from any sale or lease of the Mortgaged Property pursuant to the Deed of Trust or otherwise, the amount remaining after deducting from the gross proceeds thereof all expenses (including, without limitation, attorneys' fees and costs) incurred in the collection of such proceeds. "Payment Schedule" means the document attached hereto and incorporated herein by reference, which sets forth the County's Installment Payments. "Prior Contract" means the Installment Purchase Contract dated as of February I, 2009 between the County and the Corporation. "Projects" means ( l) the construction, furnishing and equipping of a new Boone Trail Elementary School and the acquisition of land therefor, (2) the construction, furnishing and equipping of a 24- classroom and auxiliary gymnasium addition to Harnett Central High School, (3) the construction, furnishing and equipping of a IS-classroom addition to Johnsonville Elementary School and (4) the construction, furnishing and equipping of a gymnasium at Highland Elementary School, all originally financed with a portion ofthe proceeds of the 2009 Certificates. "Revenues" means (1) all Net Proceeds not applied to the replacement of the Mortgaged Property; (2) all of the Installment Payments and (3) all other revenues derived from this Contract. "State" means the State ofNorth Carolina. "School Board" means the Harnett County Board of Education. "Tax Certificate" means the County 's Arbitrage and Tax Regulatory Certificate dated the date of the execution and delivery of this Contract. "Title Policy" means the policy of title insurance issued by Chicago Title Insurance Company, in connection with the Mortgaged Property and the transactions contemplated by this Contract. "2009 Certificates" means the Corporation's Certificates of Participation, Series 2009, evidencing proportionate undivided interests in rights to receive certain revenues under the Prior Contract. [END OF ARTICLE I) 5 PP AB 3 185228 v2 040416 HC BOC Page 48 ARTICLE II THE ADVANCE Section 2.1 Advance. The Lender hereby makes an advance to the County of the Advance, and the County hereby accepts from the Lender, the Advance to be applied in accordance with the terms and conditions of this Contract. The County will use the proceeds of the Advance, together with other funds available for such purpose, to refinance its installment payment obligations under the Prior Contract and for other purposes as set forth in this Contract. (EN D OF ARTICL E H) 6 PPAB 3 185228 v2 040416 HC BOC Page 49 ARTICLE III INSTALLMENT PAYMENTS; ADDITIONAL PAYMENTS Section 3.1 Amounts and Times oflnstallment Payments and Additional Payments. (a) The County shall repay the Advance in semiannual Installment Payments consisting of an interest component and a principal component as provided in this Contract and the Payment Schedule. The County hereby approves the Advance by the Lender to the County pursuant to this Contract in the aggregate amount of [$Amount] to be repaid by the County in Installment Payments as provided in this Contract at the interest rate per annum equal to the Interest Rate. (b) The Installment Payments are first payable on December 1, 20 16 , and continue on each June 1 and December 1 thereafter until maturity as provided in this Contract and the Payment Schedule. (c) Each Installment Payment shall be paid in the amounts and at the times set forth in the attached Payment Schedule, except as otherwise provided herein. If an Installment Payment is due on any day which is not a Business Day, such Installment Payment shall be due on the next succeeding Business Day and the County shall make such Installment Payment on such Business Day with no additional interest due thereon. Installment Payments shall be sufficient in the aggregate to repay the principal amount of the Advance, together with interest thereon , as the same shall become due and payable. The County shall pay any Additional Payments on a timely basi s directly to the person or entity to which such Additional Payments are owed. All payments shall be made in lawful currency of the United States. Section 3.2 Place of Payments. All payments required to be made to the Lender hereunder shall be made to the Lender as wire transfers to the Lender on the payable date or as may be otherwise directed in writing by the Lender. Section 3.3 Late Charges. An Installment Payment that is not paid within I 0 days of the due date thereof is subject to a late payment charge of 4% of the amount of the past due Installment Payment. Interest shall continue to accrue with respect to any Installment Payment that is not paid when due . Section 3.4 No Abatement. There will be no abatement or reduction of the Installment Payments or Additional Payments by the County for any reason , including but not limited to, any failure by the County to appropriate sufficient funds for the payment of the Installment Payments or Additional Payments, any defense, recoupment, setoff, counterclaims or any claim (real or imaginary) aris ing out of or related to the refinancing of the Projects. The County assumes and shall bear the entire risk ofloss and damage to the Projects from any cause whatsoever, it being the intention of the parties that the Installment Payments shall be made in all events unless the obligation to make such Installment Payments is terminated as otherwise provided herein . Section 3.5 Prepayment of the Advance. (a) The County may prepay, in whole or in part, the principal components of the Installment Payments then outstanding at any time, together with accrued interest thereon to the date of prepayme nt, at a prepayment price of 10 I% of s uch principal amount prepaid. 7 PP AB 3 185228v2 040416 HC BOC Page 50 (b) In the event of loss or condemnation of or damage to the Mortgaged Property, if the County determines not to apply any Net Proceeds to the repair, restoration, modification, improvement or replacement of the Mortgaged Property as permitted by Section 7.3(a), and if the County has otherwise performed all of its obligations under this Contract, the County shall prepay the principal components of the Installment Payments then outstanding at a prepayment price of I 0 I% of such principal amount prepaid in accordance with and subject to the requirements of Section 7.3(b). (c) In the event of a partial prepayment ofthe principal component ofthe Installment Payments then outstanding, the Payment Schedule shall be recalculated as necessary by the Lender in order to reflect such reduction. (END OF ARTICL E lll) 8 PP AB 3185228v2 040416 HC BOC Page 51 ARTICLE IV COSTS OF ISSUANCE ACCOUNT Section 4.1 Deposit of Proceeds. There is hereby created a separate fund to be held by the County designated as the "Harnett County 2016 Installment Financing Costs of Issuance Account." On the date of the execution and delivery of this Contract, the Lender will cause (I)$[ ] to be transferred to the Escrow Agent to be deposited and applied, along with $[ ] from the County's own funds, in accordance with the Escrow Agreement and (2) the balance of the Advance to be transferred to the County for deposit in the Costs of Issuance Account. The County will use the funds in the Costs of Issuance Account solely in accordance with the provisions of this Article IV and the Tax Certificate. Section 4.2 Investment. The County shall invest and reinvest the money held in the Costs of Issuance Account as permitted under Section 159-30 of the General Statutes of North Carolina, as amended. Section 4.3 Disbursements. The County shall use money held in the Costs of Issuance Account for payment of Costs of Issuance. Any funds remaining in the Costs of Issuance Account as of December I, 2016 shall be applied to the interest component of the Installment Payment due on such date. [END OF ARTICLE IV] 9 P P AB 3 18522 8v2 040416 HC BOC Page 52 ARTICLE V COVENANTS OF THE COUNTY Section 5.1 Care and Use. The County shall use, and shall cause the use of, the Mortgaged Property in a careful and proper manner, in compliance with all applicable laws and regulations, and, at its sole cost and expense, shall service , repair and maintain the Mortgaged Property so as to keep the Mortgaged Property in good condition, repair, appearance and working order for the purposes intended , ordinary wear and tear excepted . Any and all additions to or replacements of the Mortgaged Property and all parts thereof shall constitute accessions to the Mortgaged Property and shall be subject to all the terms and conditions of this Contract and included in the term "Mortgaged Prop erty" as used in this Contract. Section 5.2 Inspection . The Lender has the right on reasonable prior notice to the County to enter upon the Mortgaged Property and observe its use during normal business hours. Section 5.3 Utilities. The County shall pay all charges for gas, water, steam, electricity, light, heat or power, telephone or other utility services furnished to or used on or in connection with the Mortgaged Property. There shall be no abatement of the Installment Payments on account of interruption of any such services. Section 5.4 Taxes . The County agrees to pay when due any and all taxes relating to the Mortgaged Property and the County 's obligations under this Contract including, but not limited to, all license or registration fees, gross receipts tax, sales and use tax, if applicable, license fees, documentary stamp taxes, rental taxes, assessments, charges, ad valorem taxes, excise taxes, and all other taxes, licensees and charges imposed on the ownership, possession or use of the Mortgaged Property by any governmental body or agency, together with any interest and penalties. Section 5.5 Title Insurance. The County agrees to obtain, at its own cost and expense, a Title Policy, in an amount equal to the Advance and in form satisfactory to the Lender, payable to the Lender, as it s interest may appear, insuring fee title of the County to the Mortgaged Property, issued by a title insurance company qualified to do business in the State. Section 5.6 Insurance. The County shall maintain, or cause to be maintained, at its own expense, except as hereinafter provided, insurance with respect to its property and business against such casualties and contingencies in amounts not less than is customary in similar activities and similarly situated. Without limiting the foregoing, the County shall maintain, or cause to be maintained, except as hereinafter provided, the following insurance: (a) Insurance against loss and/or damage to the Mortgaged Property under a policy or policies covering such risks as are ordinarily insured against by similar facilities, including without limiting the generality of the foregoing, fire, lightning, windstorm, windblown rain, hail , explosion, riot, riot attending a strike, civil commotion, damage from aircraft, smoke and uniform standard extended coverage and vandalism and malicious mischief endorsements, war risk (to the extent obtainable from an agency of the United States Government). Such insurance policy shall be in an amount not less than the lesser of (I) the full replacement cost of the Mortgaged Property, or (2) the prepayment price of all outstanding Installment Payments; provided, however, that no such insurance policy may have a deductible amount of more than $100,000. No such insurance policy shall be written such that the proceeds thereof will produce less than the minimum coverage required by the preceding sentence, by reason of co-insurance provisions or otherwise, without the prior written consent thereto by the Lender. The term ''full insurable value" shall mean the actual replacement cost of the Mortgaged Property (excluding foundation and excavation costs and costs of underground flue s, pipes, drains and other uninsurable items), 10 PP AB 3185228v2 040416 HC BOC Page 53 without deduction for physical depreciation, and shall be determined once every three years by a insurance consultant, in any case, selected and paid for by the County. Each such policy shall contain a replacement cost endorsement. (b) Comprehensive general liability insurance protecting the County against liability for injuries to persons and/or property in the minimum amount of $100,000 liability to any one person for property damage, $1 ,000,000 liability for personal injury for any one occurrence and an aggregate annual liability limit of not less than $2,000,000, with a deductible amount of not more than $I 00,000. (c) Workers ' compensation insurance respecting all employees of the County working at the Mortgaged Property in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure ; provided, however, that the County may be self-insured with respect to all or any part of its liability for workers' compensation. Each insurance policy obtained pursuant to this Section shall (I) be issued by a generally recognized and responsible insurance company qualified under the laws of the State to assume the risks covered by such policy, (2) name the County as an insured and the Lender as sole loss payee and an additional insured, as their respective interests may appear, and (3) unless unavailable from the insurer, provide that such policy shall not be cancelled or modified in any way adverse to any insured party without at least 30 days ' prior written notice to each insured party named therein. The County shall have the right to receive the proceeds from any insurance maintained pursuant to this Section, subject, however, to the limitations of this Article V and Article VII. All such policies shall be deposited with the Lender, if the Lender so requests, provided that in lieu of such insurance policies there may be deposited with the Lender a certificate or certificates of the County attesting the fact that the insurance required by this Section is in full force and effect. Prior to the expiration of any such policy, the County shall furnish the Lender, if the Lender so requests, evidence satisfactory to the Lender that such insurance policy has been renewed or replaced or is no longer required by this Contract. In lieu of separate insurance policies, the County may maintain blanket or umbrella insurance policies if such policies provide the same coverage required by this Section with protection against each risk not reducible by claims for other risks to amounts less than that specified in this Section and the County deposits with the Lender, if the Lender so requests , a certificate or certificates of the respective insurers evidencing such coverage and stating, as required, the amount of coverage with respect to the Mortgaged Property or any part thereof. In lieu of policies of insurance written by commercial insurance companies meeting the requirements of this Section, the County may maintain a program of self-insurance or participate in group risk financing programs, risk pools, risk retention groups, purchasing groups and captive in surance companies, and in state or federal insurance program s. Section 5. 7 Risk of Loss. The County shall bear all risk of loss or damage to and condemnation of the Mortgaged Property. In the event of loss or damage to or condemnation of the Mortgaged Property resulting in Net Proceeds in excess of one-third of the principal components of Installment Payments outstanding, the County shall at its option either (a) continue to make the Installment Payments due under this Contract and repair or replace the Mortgaged Property, as mutually agreed on by the Lender and the County, or (b) prepay all or a portion of the then outstanding principal component of the Installment Payments with Net Proceeds or any other moneys in accordance with Section 3.5(b); provided that if the County has exercised its option to prepay the then outstanding 11 PPAB 3 185228v2 040416 HC BOC Page 54 principal component of the Installment Payments in part, the County remains liable to make the remaining Installment Payments which are not prepaid, as the same may be adjusted pursuant to Section 3.5(c). Section 5.8 Performance by the Lender of the County's Responsibilities. Any performance required of the County or any payments required to be made by the County may, if not timely performed or paid , be performed or paid by the Lender, and, in such event, the Lender shall be immediately reimbursed by the County for such payments or other performance by the Lender, with interest thereon at a rate equal to the Equipment Interest Rate. Section 5.9 Financial Statements . The County shall furnish to the Lender annually: (a) within 210 days of the end of its fiscal year, current financial statements, (b) within 60 days of adoption , the County's annual budget and capital improvement program as approved by the Board (and any amendments thereto as promptly as reasonably possible within adoption thereof), and (c) such other documents relating to the financial condition of the County as the Lender shall request. The County shall permit the Lender or its agents and representatives to inspect the County books and records and make extracts therefrom. The County represents and warrants to and covenants with the Lender that all financial statements which have been or may be delivered to the Lender fairly and accurately reflect the County's financial condition and there has been and will be no material adverse change in the County's financial condition as reflected in the financial statements si nce the respective dates thereof. (END OF ARTICLE V) 12 PPAB 3185228¥2 040416 HC BOC Page 55 ARTICLE VI TITLE; LIENS Section 6.1 Title. Title to the Mortgaged Property and any and all additions, repairs, replacements or modifications thereto shall be in the County from and after the date of execution and delivery of this Contract so long as the County is not in default hereunder and shall vest permanently in the County on the payment in full of the principal components of the Installment Payments free and clear of any lien or security interest of the Lender therein. On the date of the execution and delivery of this Contract, the Deed of Trust will be in full force and effect and no events of default shall have occurred thereunder. Upon payment or provision for payment in full of all of the County's obligatio ns hereunder, including the principal component of the Installment Payments then outstanding and all other payments due hereunder, the Lender or its assignee, at the County's expense and request, shall cancel the Deed of Trust and this Contract will terminate. Section 6.2 Liens. The County shall not directly or indirectly create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, security interest, encumbrance or claim on or with respect to the Mortgaged Property or any interest therein, except for: (I) the lien and security interest of the Lender in the Mortgaged Property; (2) utility, access and other easements and rights of way, restrictions and exceptions which do not interfere with or impair the intended use of the Mortgaged Property; (3) the Lease; (4) permitted encumbrances as described in Exhibit B to the Deed of Trust; and (5) such minor defects, irregularities, encumbrances and clouds on title as normally exist with respect to property of the general character of the Mortgaged Property and as do not materially impair title thereto or the ability of the County to operate the improvements thereon. The County shall promptly, at its own expense, take such action as may be necessary duly to discharge any such mortgage , pledge, lien, security intere st, charge, encumbrance or claim if the same shall arise at any time. The County shall reimburse the Lender for any expense incurred by the Lender in order to di scharge or remove any such mortgage, pledge, lien , sec urity interest, charge, encumbrance or claim . [E ND OF ARTICLE VI) 13 PP AB 3 185228v2 040416 HC BOC Page 56 ARTICLE VII DAMAGE, DESTRUCTION, AND CONDEMNATION; USE OF NET PROCEEDS Section 7.1 Damage, Destruction or Condemnation . lf, during the term of thi s Contract, (i) the Mortgaged Property or any portion thereof is destroyed, or is damaged by fire or other casualty; (ii) title to or the temporary or permanent use of the Mortgaged Property or any portion thereof or the estate of the County or the Lender or its assignee in the Mortgaged Property or any portion thereof is taken under the power of eminent domain by any governmental authority; or (iii) a material defect in the acquisition and in stallation of the Mortgaged Property becomes apparent, then the County shall continue to be obligated, subject to the provisions of Section 7.2 , to pay the amounts specified in Section 3.1 at the respective times required. Section 7.2 Obligation of the County to Repair and Replace . Subject to the provisions of Section 7.3, the Lender and the County shall cause the Net Proceeds of any in s urance policies or condemnation awards or Net Proceeds made available by reason of any occurrence described in Section 7.1 , to be used for the prompt repair, restoration, modification, improvement or replacement of the Mortgaged Property. Any repair, restoration , modification, improvement or replacement paid for in whole or in part out of such Net Proceeds shall be the property of the County and shall be included as part of the Mortgaged Property under this Contract and shall be subject to the lien of the Deed of Trust. Section 7.3 Insufficiency of Net Proceeds; Discharge of the Obligation of the County to Repair the Mortgaged Property. If the Net Proceeds (plus any amount withheld therefrom by reason of any deductible clause) are insufficient to pay in full the cost of any repair, restoration, modification, improvement or replacement of the Mortgaged Property as required under Section 7.2 , the County may elect to proceed under either of the following options. (a) Complete the work and pay any cost in excess ofthe amo unt of the Net Proceeds, and the County agrees that, if by reason of any such insufficiency of the Net Proceeds, the County shall make any payments pursuant to this Section, the County is not entitled to any reimbursement therefor from the Lender nor is the County entitled to any diminution of the amounts payable under Section 3.1; or (b) The obligation of the County to restore or modify the Mortgaged Property under Section 7.2 may, at the option ofthe County, be discharged by causing the Net Proceeds of such insurance policies or condemnation awards to be applied to the prepayment of all or any part of the then outstanding principal components of the Installment Payments in accordance with Section 5.9 and 3.5(b). Jf the Net Proceeds exceed the amount necessary to prepay the then outstanding principal components of the Installment Payments in accordance with Section 5.9, such excess shall be paid to or retained by the County. Within 120 days of the occurrence of an event specified in Section 7.1, the County shall commence the repair, restoration, modification, improvement or replacement of the Mortgaged Property, or s hall elect, by written notice to the Lender, to proceed under the provision s of paragraph (b) above. For purposes of this Section, "commence" shall include the retention of any professional or service in anticipation of repair, restoration, modification, improvement or replacement of the Mortgaged Property. If the County shall, after commencing the repair, restoration, modification, improvement or replacement of the Mortgaged Property, determine that the Net Proceeds (plus any amount withheld therefrom by reason of any deductible clause) are insufficient for the accomplishment thereof, the County may elect to proceed under Section 7.3(b). 14 PPAB 3185228v2 040416 HC BOC Page 57 Section 7.4 Cooperation of Lender. The Lender shall cooperate fully with the County in filing any proof of loss with respect to any insurance policy covering the events described in Section 7 .1. In no event shall the Lender or the County voluntarily settle, or consent to the settlement of, any proceeding arising out of any insurance claim with respect to the Mortgaged Property without the written consent of the other. [END OF ARTICLE VII] 15 PPAB 3 185228v2 040416 HC BOC Page 58 ARTICLE VIII REPRESENTATIONS AND WARRANTIES OF THE COUNTY Section 8.1 Representations and Warranties of tile County. The County represe nts, warrants and covenants to and with the Lender (all suc h representation s, warranties and covenants to be continuing) that: (a) The County is a political subdivision of the State, validly organized and existing under the laws of the State and has all powers necessary to enter into the transactions contemplated by this Contract and the Deed of Trust and to carry out its obligations hereunder; (b) The County agrees that during the term of this Contract, it will take no action that would adversely affect its existence as a political subdivision in good standing in the State, cause the County to be consolidated with or merge into another political subdivision of the State or penn it one or more other political subdivision of the State to conso lidate with or merge into it, unless the County is the surviving political subdivision or the political subdivision of the State created thereby expressly assumes in writing the County's obligations hereunder; (c) This Contract, the Deed of Trust and all other documents relating hereto and thereto , and the performance of the County's obligations hereunder and thereunder, have been duly and validly authorized, executed and delivered by the County and approved under all laws, regulations and procedures applicable to the County including, but not limited to, compliance with public meeting and bidding requirements, and, assuming the due authorization, execution and delivery hereof and thereof by the other parties hereto and thereto , constitute valid, legal and binding obligations of the County, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency and other laws affecting the enforcement of creditors' rights generally and such principles of equity as a court having proper jurisdiction may impose ; (d) Neither the execution and delivery of this Contract or the Deed of Trust or the consummation of the transactions contemplated hereby or thereby , nor the fulfillment of or compliance with the terms and conditions hereof or thereof conflicts with or results in a breach of the terms, conditions, or provisions of any restriction or any agreement or instrument to which the County is now a party or by which the County is bound or constitutes a default under any of the foregoing, nor conflicts with or results in a violation of any provision of applicable law or regulation governing the County and no representation , covenant and warranty in this Contract is false, misleading or erroneous in any material respect; (e) There is no action , suit, proceeding or investigation at law or in equity before or by any court, public board or body pending or, to the best of the County's knowledge , threatened, against or affecting the County challenging the validity or enforceability of this Contract, the Deed of Trust or any other documents relating hereto and the performance of the County 's obligations hereunder and thereunder, and compliance with the provisions hereof or thereof, under the circumstances contemplated hereby or thereby, does not and will not in any material respect conflict with , constitute on the part of the County a breach of or default under, or result in the creation of a lien or other encumbrance on any property of the County (except as contemplated herein or therein) pursuant to any agreement or other instrument to which the County is a party, or any existing law, regulation , court order or consent decree to which the County is subject; (f) The estimated cost to refinance the County 's installment payment obligations under the Prior Contract is not less than [$Amount] and no approval or consent is required from 16 PP AB 3185228v2 040416 HC BOC Page 59 any governmental authority with respect to the entering into or perfonnance by the County of this Contract, the Deed of Trust and all other documents related hereto and thereto and the transactions contemplated hereby and thereby or if such approval is required, such approval has been duly obtained; (g) The funds in the Costs of Issuance Account and any investment earnings thereon will be used only for the purposes permitted in Article IV and the Tax Certificate; (h) Other than approval of the LGC, which approval has been obtained, no approval or consent is required from any governmental authority with respect to the entering into or performance by the County of this Contract and all other documents related hereto and the transactions contemplated hereby and thereby or if such approval is required, it has been duly obtained; (i) There are no liens or encumbrances on the Mortgaged Property other than the security interest created by the Deed of Trust and the other liens pennitted hereby; U) The resolutions relating to the perfonnance by the County of thi s Contract, the Deed ofTrust and the transactions contemplated hereby and thereby, have been duly adopted, are in full force and effect, and have not been in any respect modified, revoked or rescinded ; (k) The Projects and the refinancing thereof pennit the County to carry out the County's public functions authorized and required by law to perfonn; (I) The County reasonably believes sufficient funds will be available to satisfy all of its obligations hereunder; (m) The County shall (I) cause its County Manager to include the Installment Payments coming due in each Fiscal Year in the corresponding annual budget request and shall require the County Manager to use his best efforts to obtain an appropriation therefor and (2) require that the deletion of such funds from the County's final budget be made only pursuant to an express resolution of the Board which explains the reason for s uch action. This covenant on the part of the County contained in this Section 8 .1 (m) shall be deemed to be and s hall be construed to impose by law ministerial duties and it shall be the duty of each and every public official of the County to take such action and do such things as are required by law in the performance of the official duty of such officials to enable the County to carry out and perform the covenant in this subparagraph and the agreements in this Contract to be carried out and performed by the County; provided, however, that nothing contained in this Section 8.1 (m) shall obligate the County to appropriate funds; (n) Funds appropriated by the County to make Installment Payments due m any Fiscal Year shall be used for no other purpose; (o) The County agrees that during the term of this Contract, it will maintain the appropriate insurance required pursuant to this Contract and the Deed ofTrust; and (p) The County has good and marketable title to the Mortgaged Pro perty. [END OF ARTICLE VIII] 17 PP AB 3 185228v2 040416 HC BOC Page 60 ARTICLE IX TAX COVENANTS ANO REPRESENTATIONS Section 9.1 Tax Covenants and Representations. (a) The County covenants that it will not take any action, or fail to take any action, if any such action or failure to take such action would adversely affect the exclusion from gross income of the interest portion of the obli gations created by this Contract for federal income tax purposes. The County will not directly or indirectly use or permit the use of any proceeds of any fund created under this Contract or any funds of the County, or take or omit to take any action tha t would cause the obligations created by this Contract to be an "arbitrage bond" within the meaning of Section 148(a) of the Code. The County will maintain books on which will be recorded ( l) the Lender or (2) any assignee of the Installment Payments due under this Contract, as the registered owner of such In stallment Payments. To that end, the County has executed and delivered the Tax Certificate and will comply with all of the requirements of Section 148 of the Code to the extent applicable. The County further covenants that this Contract is not a ''private activity bond" as defined in Section 141 of the Code. (b) Without limiting the generality of the foregoing, the County agrees that there shall be paid from time to time all amounts required to be rebated to the United States of America pursuant to Section 148(f) of the Code and any temporary, proposed or final Treasury Regulations as may be applicable to the obligation created under this Contract from time to time. This covenant shall survive the termination of this Contract for any reason. (c) Notwithstanding any provision in this Contract to the contrary, if the County shall provide to the Lender an opinion of nationally recognized bond counsel reasonably acceptable to the Lender to the effect that any action required under this Article IX is no longer required, or to the effect that some further action is required, to maintain tax-exempt status, the County and the Lender may rely conclusively on s uch opinion in complying with the provisions of this Article IX. (d) In the event of a Determination of Taxability, the interest rate payable under this Contract, from and after the Inclusion Date, shall be adjusted to preserve the Lender's after-tax economic yield with respect to the interest components of the Installment Payments, taking into account any interest expense deductions lost by the Lender as a result of the County's actions or failure to act plus an amount equal to any interest, penalties on overdue interest and additions t o tax (as referred to in Subchapter A of Chapter 68 of the Code) owed by the Lender as a result of the occurrence of a Determination of Taxabil ity . In the event of a Determination of Taxability, the Lender shall provide the County with new Payment Schedule which reflects the new interest rate which will replace the Payment Schedule attached hereto. [END OF ART ICLE IX] 18 PPAB 3185228v2 040416 HC BOC Page 61 ARTICLE X INDEMNIFICATION Section 10.1 Indemnification. To the fullest extent permitted by applicable law , the County hereby agrees to indemnity, protect and save the LGC, the Lender and their re s pective officers, employees, directors, members and agents harmless from all liabilities, obligations, lo sses, claims, damages, actions, suits, proceedings, costs and expenses, including reasonable attorneys' fees that (I) arise in tort, in contract, under 42 U.S. Code § 1983 or under the public bidding laws of the State or (2) arise out of, are connected with , or res ult, directly or indirectly, from the Projects or any portion thereof, including, without limitation, the manufacture, selection, acquisition, delivery, possession, condition, construction, improvement, environmental or other condition, lease, use operation or return of the Projects or any portion thereof. The indemnification arising under this Article X shall continue in full force and effect notwithstanding the payment in full of all of the obligations under this Contract or the termination of this Contract for any reason. (END OF ART ICLE X] 19 PPAB 3 185228v2 040416 HC BOC Page 62 ARTICLE XI DISCLAIMER OF WARRANTI ES Section 11.1 No Representations by the Lender. The Cou nty acknowledges and agrees that the Lender (a) is not a manufacturer of, nor a d ealer in , any of the component parts of the Projects or s imilar projects; (b) has not made any recommend atio n, g iv e n a ny advice nor taken any other action with re spect to (i) the choice of any sup pli er, ve ndor or des igne r of the Projects o r any component pa rt thereof o r any prop erty or ri g hts relating th ereto, or (ii) any action taken or to be taken with respect to t he Projects or any component part thereof or any property or rights relatin g thereto at any stage of the acqu isiti on thereof; (c) has not at any time had physical possession of the Projects or any component part t h ereof or made any inspection the reof o r any property or ri ghts relatin g thereto; and (d) has not made any warranty or other representation, ex press o r implied, that th e Projects o r any com ponent part thereof or a ny property o r ri ghts relating thereto (i) will not res ult in o r cause injury o r d amage to persons o r pro perty, (ii ) has been or will be properly designed , or will accomplish the result which th e Co unty intend s therefor, o r (iii) is safe in any manner or re s pect. Section 11.2 Disclaimer by tlze Lender. TH E LENDER MAKES NO EX PRESS OR IMPLIED WARRANTY OR REPRESENTATION OF ANY KIND WHATSOEVER W ITH RESPECT TO THE P ROJECTS OR ANY COM PON ENT PART THEREOF TO THE COUNTY OR IN REGARD TO ANY OTHER C IRCUMSTANCE WHATSOEVER W ITH RESPECT THERETO, INCLUDING BUT NOT LIMITED TO ANY WARRANTY OR RE PRESENTATIONS WITH RESPECT TO: T HE MERCHANTABILITY OR TH E FITNESS OR SU ITABILITY THEREOF FOR ANY PURPOSE; THE DESIGN OR CON DITION THEREOF; T HE SAFETY, WORKMANSHIP O R QUAL ITY THEREOF; COMPLIANCE T HEREOF WITII THE REQUIREMENTS OF ANY LAW, R ULE, SPECI FICATION OR CONTRACT PERTAINING T HERETO; ANY LATENT DEFECT; THE TITLE TO OR INTEREST OF THE LENDER THEREIN; THE ABILITY THEREOF TO PERFORM ANY FUNCTION; THAT THE ADVANCE WILL B E SUFFICIENT (TOGETHER WITH ANY OTHER AVA ILABLE FUNDS OF T HE COUNTY) TO PAY T HE COST REFINANCING THE COUNTY'S INSTALLMENT PAYMENT OBLIGATIONS UNDER THE PRIOR CONTRACT; OR ANY OTHER C HARACTE RI STICS OF THE PROJECTS OR THE REFINANC ING THEREOF, IT BEING AGREED THAT ALL RJSKS RELATING TO T HE PROJECTS, THE REFINANCING THEREOF OR THE TRANSACTIONS CONTEMPLATED H EREBY ARE TO BE BO RNE BY THE COUNTY AND THE BENEFITS OF ANY AND ALL IMPLI E D WARRANTIES AND REPRESENTATIONS OF THE LENDER ARE HEREBY WA IVED BY THE COUNTY. (END OF ARTIC LE XI] 20 PPAB 3 18 5228v2 040416 HC BOC Page 63 ARTICLE XII DEFAULT AND REMEDIES Section 12.1 Definition of Event of Default. The County shall be deemed to be in default hereunder on the happening of any of the following events of default (each, an "Event of Default"): (a) The County fails to pay any Installment Payment or Additional Payment when due ; (b) The County fails to budget and appropriate money sufficient to pay all Installment Payments and the reasonably estimated Additional Payments coming due in the following Fiscal Year of the County; (c) The County deletes from its duly adopted budget any appropriation for the purposes specified in clause (b) above; (d) The County fails to perform or observe any term, condition or covenant of this Contract on its part to be observed or performed, other than as referred to in clauses (a), (b) or (c) above, or of the Deed of Trust on its part to be observed or performed, or breaches any warranty by the County herein or therein contained, for a period of 30 days after written notice specifying such failure and requesting that it be remedied has been given to the County by the Lender, unless the Lender shall agree in writing to an extension of such time prior to its expiration; (e) Any bankruptcy, insolvency or reorganization proceedings or similar litigation, is instituted by the County, or a receiver, custodian or similar officer is appointed for the County or any of its property, and such proceedings or appointments are not vacated or fully stayed within 90 days after the institution or occurrence thereof; (f) Any representation, warranty or statement made by the County herein, in the Deed of Trust or in any other document executed or delivered in connection herewith or therewith is found to be incorrect or misleading in any material respect on the date made; or (g) An attachment, levy or execution is levied on or against any portion of the Mortgaged Property. Section 12.2 Remedies on Default. On the occurrence of any Event of Default, the Lender may exercise any one or more of the following remedies as the Lender, in its sole discretion, shall elect: (a) Declare the unpaid portion of the then outstanding principal components of the Installment Payments immediately due and payable, without notice or demand to the County; (b) Proceed by appropriate court action to enforce the performance by the County of the applicable covenants of this Contract or to recover for any breach thereof; (c) Exercise or direct the trustee under the Deed of Trust to exercise all the rights and remedies of a secured party or creditor under the Uniform Commercial Code of the State and the general laws of the State with respect to the enforcement of the security interest granted or reserved hereunder and under the Deed of Trust including, without limitation, to the extent permitted by law, re-enter and take possession of the Mortgaged Property without any court order or other process of law and without liability for entering the premises and to sell , lease, s ublease or make other disposition of the same in a commercially reasonable manner for the account of the 21 PPAB 3185228v2 040416 HC BOC Page 64 County, and apply the proceeds of any such sale, lease, sublease or other disposition, after deducting all costs and expenses, including court costs and attorneys' fees, incurred with the recovery , repair, storage and other sale, lease, sublease or other dispos ition , toward the balance due under this Contract and , thereafter, to pay any remaining proceeds to the Co un ty; o r (d) Enforce its securi ty interest or direct the trustee under the Deed of Trust to institute foreclosure proceedings under the Deed of Trust and se ll the Mortgaged Property. NOTWITHSTANDING ANY OTHER PROVIS IONS HEREIN, IT IS THE INTENT OF T H E PARTIES H ERETO TO COMPLY WITH SEC TION 160A-20 OF T H E GENERAL STATUTES OF NORTH CAROLINA, AS AMENDED. NO DEFICIENCY JUDGMENT MAY BE ENTERE D AGA INST TH E COUNTY IN FAVOR OF THE L ENDER IN VIOLATION OF S ECTION 160A-20 OF THE GENERAL S TATUTES OF NORTH CAROLINA, AS AMENDED, INC LUDING, WITHOUT LIMITATION, ANY DEFIC IENC Y JUDGMENT FOR AMOUNTS THAT MAY BE OWED HEREUN DE R WH EN THE SALE OF ALL OR ANY PORTIO N OF THE MORTGAGED PROPERTY IS INSUFFICIENT TO PRODUCE ENOUG H MONEY TO PAY IN FULL ALL R EMAINING OBLIGATIONS UNDE R THIS CONTRACT. Section 12.3 Furtlter Remedies. This Contract shal l remain in full force and effect and the County shall be and remain liabl e for the full performance of all its obligations under thi s Contract subject to the limitati ons set forth in Article XIV. All re medies of the Lender are cumulativ e and may be exercised concurrently or separately. The exerc ise of any one remedy shall not be deemed an e lection of s uch remedy or preclude the exercise of any other remedy. (END OF ARTICLE XII) 22 PP AB 3 185228v2 040416 HC BOC Page 65 ARTICLE XIII ASSIGNMENT Section 13.1 Assignment. Except pursuant to the Deed of Trust, the County will not sell, assign , lease, s ublease, pledge or otherwise encumber or suffer a lien or encumbrance on or against any interest in this Contract or the Mortgaged Property (except for any permitted encumbrances under Section 6.2) without the prior written consent of the Lender. The County's interest in this Contract may not be assigned or transferred by operation of law. The Lender may , at any time and from time to time , assign all or any part of its interest in the Mortgaged Property or thi s Contract, including, without limitation, the Lender's rights to receive Installment Payments payable to the Lender hereunder. Any assignment made by the Lender or any subsequent assignee shall not purport to convey any greater interest or rights than those held by the Lender pursuant to this Contract. The County agrees that this Contract may become part of a pool of obligations at the Lender's or its assignee's option. The Lender or its assignees may assign or reassign all or any part of this Contract, including the assignment or reassignment of any partial interest through the use of certificates evidencing participation interests in this Contract without the consent of the LGC , although the Lender or any assignee shall give written notice to the LGC of any such assignment. Any assignment by the Lender may be only to a bank, insurance company, or similar financial institution or any other entity approved by the LGC. Notwithstanding the foregoing, no assignment or reassignment of the Lender's interest in the Deed of Trust or this Contract shall be effective unless and until the County shall receive a duplicate o riginal counterpart of the document by which such assignment or reassignment is made disclosing the name and address of each such assignee. The County further agrees that the Lender's interest in thi s Contract may be assigned in whole or in part upon terms which provide in effect that the assignor or assignee will act as a collection and paying agent for any holders of certificates of participation in this Contract, provided the County receives a copy of such agency contract and such collection and paying agent covenants and agrees to maintain for the full remaining term of this Contract a written record of each a ssignment and reassignment of such certificates of participation. The County agrees to execute any document reasonably required in connection with any assignment. Any assignor mu st provide notice of any assignment to the County and the LGC, and the County shall keep a complete and accurate record of all assignments as required by the Code. After the giving of any such notice, the County shall thereafter make all payments in accordance with the notice to the assignee named therein and shall, if so requested, acknowledge s uch assignment in writing, but such acknowledgment shall in no way be deemed necessary to make the assignment effective. [END OF ARTIC LE Xlll] 23 PP AB 3 185228v2 040416 HC BOC Page 66 ARTICLE XIV LIMITED OBLIGATION OF THE COUNTY Section 14.1 Limited Obligation of tile County. NO PROVISION OF THIS CONTRACT SHALL BE CONSTRUED OR INTERPRETED AS CREATING A PLEDGE OF THE FAITH AND CREDIT OF THE COUNTY WITHIN THE MEANING OF ANY STATE CONSTITUTIONAL DEBT LIMITATION. NO PROVISION OF THIS CONTRACT SHALL BE CONSTRUED OR INTERPRETED AS CREATING A DELEGATION OF GOVERNMENTAL POWERS NOR AS A DONATION BY OR A LENDING OF THE CREDIT OF THE COUNTY WITHIN THE MEANING OF THE CONSTITUTION OF THE STATE. THIS CONTRACT SHALL NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY OBLIGATE THE COUNTY TO MAKE ANY PAYMENTS BEYOND ANY PAYMENTS APPROPRIATED IN THE SOLE DISCRETION OF THE COUNTY FOR ANY FISCAL YEAR IN WHICH THIS CONTRACT IS IN EFFECT; PROVIDED, HOWEVER, THAT ANY FAILURE OR REFUSAL BY THE COUNTY TO APPROPRIATE FUNDS WHICH RESULTS IN ITS FAILURE TO MAKE ANY PAYMENT COMING DUE HEREUNDER WILL IN NO WAY OBVIATE THE OCCURRENCE OF THE EVENT OF DEFAULT RESULTING FROM SUCH NONPAYMENT. NO DEFICIENCY JUDGMENT MAY BE RENDERED AGAINST THE COUNTY IN ANY ACTION FOR BREACH OF A CONTRACTUAL OBLIGATION HEREUNDER, AND THE TAXING POWER OF THE COUNTY IS NOT AND MAY NOT BE PLEDGED DIRECTLY OR INDIRECTLY OR CONTINGENTLY TO SECURE ANY AMOUNTS DUE HEREUNDER. NO PROVISION OF THIS CONTRACT SHALL BE CONSTRUED TO PLEDGE OR TO CREATE A LIEN ON ANY CLASS OR SOURCE OF THE COUNTY 'S FUNDS, NOR SHALL ANY PROVISION OF THIS CONTRACT RESTRICT THE FUTURE ISSUANCE OF ANY OF THE COUNTY'S BONDS OR OBLIGATIONS PAYABLE FROM ANY CLASS OR SOURCE OF TI-lE COUNTY'S FUNDS. TO THE EXTENT OF ANY CONFLICT BETWEEN THIS ARTICLE XIV AND ANY OTHER PROVISION OF THIS CONTRACT, THIS ARTICLE XIV SHALL TAKE PRIORITY. [END OF ARTICLE XJV] 24 PPAB 318522 8v2 040416 HC BOC Page 67 ARTICLE XV MISCELLANEOUS Section 15.1 Notices . Any and all notices, requests, demands, and other communications given under or in connection with this Contract are only effective if made in writing and delivered either personally or mailed by certified or registered mail, postage prepaid, return receipt requested, and addressed as follows: IF TO THE COUNTY: IF TO THE L EN DER: County of Harnett, North Carolina I 02 East Front Street Lillington, North Carolina 27546 Attention : Finance Officer Regions Capital Advantage, Inc. 6805 Morrison Boulevard, Suite 250 Charlotte, North Carolina 28211 Attention: Jeremy E. Fisher The County and the Lender may, by written notice to each other, designate any further or different addresses to which subsequent notices, certificates or other communications shall be sent. Section 15.2 Time. Time is of the essence of this Contract and each and all of its provisions. Section 15.3 If Payment or Performance Date not a Business Day. If the date for making any payment, or the last date for performance of any act or the exercising of any right, as provided in this Contract, is not a Business Day, such payment may be made or act performed or right exercised on the next succeeding Business Day , with the same force and effect as if done on the nominal date provided in this Contract, and no intere st shall accrue for the period after such nominal date. Section 15.4 Waiver. No covenant or condition of this Contract can be waived except by the written consent of the Lender. Any failure of the Lender to require strict performance by the County or any waiver by the Lender of any terms, covenants or contracts in this Contract shall not be construed as a waiver of any other breach of the same or any other term , covenant or contract in this Contract. Section 15.5 Section Headings. All section headings contained in this Contract are for convenience of reference only and are not intended to define or limit the scope of any provision of thi s Contract. Section 15.6 Entire Contract. This Contract and the Deed of Trust, together with the sc hedules attached hereto and thereto, constitute the entire agreement between the parties, and neither the Contract nor the Deed of Trust s hall be modified, amended, altered or changed except as the County and the Lender may s ubsequently agree in writing. Section 15.7 Binding Effect. Subject to the specific provisions of this Contract, this Contract is binding on and inures to the benefit of the parties and their respective successors and assigns (including expressly any successor of the Lender). Section 15.8 Covenants of County not Covenants of Officials Individually. No covenant, stipulation, obligation or agreement contained herein s hall be deemed to be a covenant, stipulation, obligation or agreement of any present or future member, agent or employee of the County in such person 's individual capacity, and neither the members of the Board nor any other officer of the Board or 25 PP AB 3 185228v2 040416 HC BOC Page 68 the County shall be s ubject to any perso nal liability or accountability by reason of the issuance of the Certificates. No member of the Board or any agent or employee of the County s hall incur any perso nal liability in acting or proceeding or if not acting or not proceeding, in good faith, reasonably and in accordance with the te rm s of th is Con tract. Section 15.9 Severability . If any porti o n of this Contract is dete rmin e d to be in val id under any applicable law, such provision shall be deemed void and the remainder of this Contract shall continue in full force and effect. Section 15.10 Governing Law and Jurisdiction . This Contract s hall be construed, inte rpreted and enforced in accordance with , the laws of the State. The exclusive forum and venue for a ll actions arising out of this Contract are with the North Carolina Ge ne ral Court of Justice in Harnett County, North Carolina or the U.S. District Court for the Eastern Di stri ct o f North Carolina. Any attempt to contravene thi s Section shall be an express violation of this Contract. Section 15.11 Execution in Counterparts. This Contract may be executed in any number of counterparts, each of which shall be an original and all of which shall constitute but one and the same in strument. Section 15.12 E-Verify. The Lender understand s that "£-Ve r ify" is a federal program operated by the United States Department of Homeland Security and other federal agencies, or any s uccessor or equivalent prog ram used to verify th e work authorization of newly hired employees pursuant to federal law in accordance with Section 64-25(5) of the General Statutes of North Caro lina, as amended. The Lender use s E-Verify t o verify the work authorization of its employees in accordance with Section 64- 26(a) of the Ge ne ra l Statutes ofNorth Carolina, as amended. The Lender will not use any subco ntractors in connection with thi s Contract. Section 15.13 Iran Divestment Certification . As of the date hereof, the Lender is not li sted on any list created and maintain e d by the North Caro lina De partment of State Treasure r purs uant to the Iran Dive stment Act of20 15 , C hapter 143C-6A-I et seq. of th e General Statutes of North Carolina. [SI GNATU RES B EG IN ON THE FOLLOWING P AGE] 26 PPAB 3 185228v2 040416 HC BOC Page 69 IN WITNESS WHEREOF, the County and the Lender have caused this Installment Financing Contract to be executed by their duly authorized officers as of the day and year first above written. [SEAL] ATTEST: Margaret Regina Wheeler Clerk to the Board of Commissioners County of Harnett, North Carolina COUNTY OF HARNETT, NORTH CAROLINA By: Joseph Jeffries County Manager County of Harnett, North Carolina [COUNTY SIGNATURE PAGE TO THE INSTALLMENT FINANCING CONTRACT, DATED AS OF APRIL 21, 2016, BETWEEN REG IONS CAPITAL ADVANTAGE, INC. AND THE COUNTY OF HARNETT, NORTH CAROLINA) [SIGNATURES CONTINUED ON THE FOLLOWING PAGE] 27 PPAB 3 185228v2 040416 HC BOC Page 70 COUNTERPART SIGNATURE PAGE TO THE INSTALLMENT FINANCING CONTRACT, DATED AS OF APRIL 21,2016, BETWEEN REGIONS CAPITAL ADVANTAGE, INC. PP AB 3 I 85228v2 AND THE COUNTY OF HARNETT, NORTH CAROLINA REGIONS CAPITAL ADVANTAGE, INC., as Lender By: Jeremy E. Fisher Vice President [SIGNATURES CONTINUED ON THE FOLLOWING PAGE] 28 040416 HC BOC Page 71 COUNTERPART SIGNATURE PAGE TO THE INSTALLMENT FINANCING CONTRACT, DATED AS OF APRIL 21,2016, BETWEEN REGIONS CAPITAL ADVANTAGE, INC. AND THE COUNTY OF HARNETT, NORTH CAROLINA This Contract has been approved under the provisions of Section 159-152 of the General Statutes ofNorth Carolina, as amended. By: Greg C. Gaskins Secretary Local Government Commission of North Carolina 29 PPAB 3 185228v2 040416 HC BOC Page 72 PAYMENT DATE 12 /01/2016 06/01/2017 12 /01/2017 06/0112018 12 /0112018 06/01 /2019 12 /01 /2019 06/01 /2020 12 /01 /2020 06/0112021 12 /01 /2021 06/01 /2022 12 /01 /2022 06101 /2023 12 /01 /2023 06/01 /2024 12 /01 /2024 06/01 /2025 12/01 /2025 06/01 /2026 12/01 /2026 06/01 /2027 12 /01 /2027 06 /01 /2028 12 /01 /2028 06/01 /2029 TOTAL PP AB 3 1 85228v2 PAYMENT SCHEDULE INSTALLMENT PAYMENT PRINCrPAL COMPONENT INSTALLMENT PAYMENT INTEREST COMPONENT PS-I TOTAL INSTALLMENT PAYMENT 040416 HC BOC Page 73 Prepared by and Return to: Rebecca B . Joyner, Esq. Parker Poe Adams & Bernstein LLP 30 1 Fayetteville Street, Suite 1400 Raleigh , North Carolina 27601 STATE OF NORTH CAROLINA COUNTY OF HARNETT DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING PARKER POE DRAFT 3/28/16 THIS DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING, dated as of April21, 2016 (the "Deed of Trust"), from the COUNTY OF HARNETT, NORTH CAROLINA, a municipal corporation duly organized and va lidl y existing under the Constitution and laws of the State of North Ca rolina (the "County" or the "Grantor"), to [NAME OF DEED OF TRUST TRUSTEE), as trustee (the "Deed of Trust Trustee"), for the benefit of REGIONS CAPITAL ADVANTAGE, INC., a subsidiary of Regions Bank, an Alabama state banking corporation, and its successors and assigns hereinafter men t io ned (the "B eneficiary"), PREAMBLES WHEREAS, the Grantor and the Beneficiary have entered into an Installment Financing Contract, dated as of April21 , 2016 (the "Installment Financing Contract"), pursuant to which (1) the Beneficiary has agreed to advance certain monies to enable the Grantor to refinance its obligations under a Prior Contract (as defined in the Installme nt Financing Contract), and (2) the Grantor has agreed to make the Installment Payments (as defined in the Installment Financing Contract) to the Beneficiary; WHEREAS, thi s Deed of Trust has been executed and delivered to secure ( 1) the obligations of the Grantor to make the Installment Payments, and (2) the payment and performance of all of the other liabilities and obligations, whether now existing or hereafte r arising, of the Grantor to the Beneficiary under the Installment Financing Contract, all such obligations and liabiliti es described in (1) or (2) above hereinafte r collectively called the <~Indebtedness"; 040416 HC BOC Page 74 WHEREAS, it is intended that this Deed of Trust comply with the provisions of Sections 45-67 , et. seq. of the General Statutes of North Carolina, as amended; and for purposes of complying with such provision s, the Grantor hereby represents as follow s: (a) That this Deed of Trust ha s been executed and delivered by the Grantor to secure present and future Indebtedness which may be incurred from time to time under the Insta llment Financing Contract; (b) That the principal amount of present Indebtedness secured by this Deed of Trust is [$Amount]; (c) That the maximum principal amount, including present and future Indebtedness, which may be secured by this Deed of Trust at any one time is $65,000,000 (exclusive of adva nces that may be made under th e terms of the Installment Financing Contract or this Deed of Trust for the protection of collateral, payment of taxes, imp os itions and assessments, attorneys' fee s and costs and other s um s whi ch the Grantor is required by the terms of sa id instruments to repay), subject to the limitation that any increase mu st be authorized by the Grantor's governing board and at no time shaH the total principal amount of Indebtedness secured hereby exceed said maximum principal sum of$65,000 ,000 plus interest, attorneys' fee s and cost s and other sum s for the protection of collateral, payment of taxes , imposition s and assessment s and similar sums advanced by the Beneficiary which the Grantor is obligated to repay hereunder, under the Installment Financing Contract, or otherwise; provided, however, that the for egoing limitation shall apply only to the lien upon real property located in the State of North Carolina created by this Deed of Trust and shall not in any manner limit, affect or impair any grant of a security interest in or lien on any other rea l property or any personal property in favor of the Beneficiary; (d) That the period within which such future Indebtedness ma y be inc urred shall expire not later than 30 years from the date of this Deed of Tru st, and shall be effective without the recordation of an amendment , modification or supplement to this Deed of Trust; and (e) It shall not be a requirement for any such future Indebtedness to be secured hereby that the Grantor sign an instrument or other notation stipulating that such Indebtedness is secured by this Deed of Trust, as no s uch future Indebtedness is required , under the Insta llment Financing Contract or otherwise, to be evidenced by a written instrument or notation; and WHEREAS, the Grantor des ire s to secure (1) the payment of the Indebtedness and any renewals, modifications or extensions thereof, in whole or in part, and (2) the additional payments hereinafter agreed to be made by or on behalf of the Grantor, by a conveyance of the lands and security interests hereinafter described; NOW, THEREFORE, in con s ideration of the above preambles and for the purposes aforesaid, and in further consideration of the sum of Ten Dollars ($1 0) paid to the Grantor by the T rustee and other valuable consideration, receipt of which is here by acknowledged, the Grantor has given, granted, bargained and so ld, and by these presents does give, grant, bargain, sell and convey unt o the Trustee , its heirs , successors and assigns, the following property (hereinafter collectively refe rred to as the "Mortgaged Property''): 2 PP A B 3 185527v2 040416 HC BOC Page 75 (a) The real property lying and being in the County of Harnett, North Carolina, and described below in the legal description attached as Exhibit A hereto (herei nafter referred to as the "Real Property '~: SEE EXH IBIT A ATTACHED HERETO FOR T HE REAL PROPERTY DESCRIPTION , WHI CH EXHIBIT A IS SPECIFICALLY INCORPORATED HEREI N BY REFERENCE. (b) All buildings, structu re s, additions and improvements of every nature whatsoever now or hereafter situated on or about the Real Property (the "lmprovements'l (c) All gas and electric fixtures, radiators, heaters, engines and machinery, boilers, ranges, elevators and motors, plumbing and heating fixtures , carpeting and other floor coverings, fire extinguishers and any other safety equipment required by governmental regulation or law, washers, dryers, water heaters , mirrors, mantels, air conditioning apparatus, refrigerating plants, refrigerators, cooking apparatus and appurtenances, window screens, awnings and storm sashes and other machinery, equipment or other tangible personal property, which are or shall be so attached to the Improvements, including all extensions, additions, improvements, betterments, renewals, rep lacements and substitutions, or proceeds from a permitted sale of any of the foregoing, as to be deemed to be fixtures under North Carolina law (collectively, the "Fixtures'~ and accessions to the Real Property and a part of the Mortgaged Property as between the parties hereto and all persons claiming by, through or under them, and which shall be deemed to be a portion of the security for the Indebtedness. The location of the collateral described in this paragraph is also the location of the Real Property, and the record owner of the Real Property is the Grantor. (d) All easements, rights-of-way, strips and gores of land, vaults, streets, ways, alleys , passages, sewer rights, waters, water courses, water rights and powers, minerals, flowers, shrubs, crops, trees, timber and other emb lements now or hereafter located on the Real Property or under or above the same or any part or parcel thereof, and all estates, rights, titles, interests, privileges, liberties, tenements, hereditaments and appurtenances, reversion and reversions, remainder and remainders, whatsoever, in any way belonging, relating or appertaining to the Mortgaged Property or any part thereof, or which hereafter shall in any way belong, relate or be appurtenant thereto, whether now owned or hereafter acquired by the Grantor. (e) All leases affecting the Mortgaged Property or any part thereof and all income , rents and issues of the Mortgaged Property and the Improvements now or hereafter located thereon from time to time accruing (including without limitation all payments under leases or tenancies, proceeds of insurance, condemnation payments, tenant security deposits whether he ld by the Grantor or in a trust account, and escrow funds), and all the estate, right, title, interest, property, possession, claim and demand whatsoever at law, as well as in equity, of the Grantor of, in and to the same; reserving only the right to the Grantor to collect and apply the same (other than insurance proceeds and condemnation payments) so long as the Grantor is not in Default hereunder. TO HA VE AND TO HOLD, the Mortgaged Property unto the Trustee, its heirs, successors and assigns , in fee simple forever, upon the trust s, terms and conditions and for the uses and purposes hereinafter set out; 3 PP AB 3 185527v2 040416 HC BOC Page 76 And the Grantor covenants with the Trustee that the Grantor is lawfully seized of the Mortgaged Property in fee simple and has the right to convey the same in fee simple; that, except for Permitted Encumbrances (as defmed in Exhibit B attached hereto and specifically incorporated herein by reference), the same are free and clear of all encumbrances, and that the Grantor will warrant and defend the title to the same against the claims of all persons whomsoever arising by, under or through the Grantor. THIS CONVEYANCE IS MADE UPON THIS SPECIAL TRUST, that if the Grantor shall pay the Indebtedness in accordance with the terms of the Installment Financing Contract, together with interest thereon, and any renewals or extensions thereof in whole or in part, and shall comply with all the covenants, terms and conditions of this Deed of Trust, then this conveyance shall be null and void and may be cancelled of record at the request and at the cost of the Grantor. TO PROTECT THE SECURITY OF THIS DEED OF TRUST, the Grantor hereby further covenants and agrees as follows: ARTICLE I Section 1.1. Payment of Indebtedness. The Grantor will pay the Indebtedness and all other sums now or hereafter secured hereby promptly as the same shall become due. Section 1.2. Taxes, Liens and Other Charges. (a) The Grantor will pay, before the same become delinquent, all taxes, liens, assessments and charges of every character including all utility charges, whether public or private, already levied or assessed or that may hereafter be levied or assessed upon or against the Mortgaged Property; and will furni sh the Beneficiary, on or before the fmal date whereon the same can be paid without penalty, evidence of the due and punctual payment of all such taxes, assessments and other fees and charges. Nothing contained herein shall require the payment or discharge of any such tax, lien, assessment or charge by the Grantor for so long as the Grantor shall in good faith and at its own expense contest the same or the validity thereof by appropriate legal proceedings provided that such proceedings shall prevent (1) the collection thereof or other realization thereof and the sale or forfeiture of the Mortgaged Property or any part thereof to satisfy the same or (2) the enforcement thereof, against the Grantor, the Trustee, the Beneficiary and the Mortgaged Property and so long as the Grantor first deposits with the Beneficiary in escrow such sums or other security as the Beneficiary may reasonably require to assure Beneficiary of the availability of sufficient monies to pay such tax , lien, assessment or charge if and when the same is finally determined to be due. (b) The Grantor will not suffer any mechanic's, materialman's, laborer's , statutory or other lien to be created and to remain outstanding upon all or any part of the Mortgaged Property . The Grantor shall be entitled to discharge such liens by bonds or to contest any such liens pursuant to the same procedure as the Grantor is entitled to contest taxes in the preceding Subsection 1.2(a). Section 1.3 . Insura1tce. (a) The Grantor shall procure for, deliver to and maintain for the benefit of the Beneficiary, during the term of this Deed of Trust, the insurance coverage required by the Installment Financing Contract. Such insurance shall be noncancellable except upon at lea st 4 PPAB 3 185 527v2 040416 HC BOC Page 77 thirty (30) days' prior written notice to the Beneficiary, and shall otherwise comply with the requirements of the Installment Financing Contract. (b) The Beneficiary is hereby authorized and empowered and, at its option, with participation of the Grantor, to adjust or compromise any loss under any insurance policies maintained pursuant to this Section 1.3, and to collect and receive the proceeds from any such policy or policies. Each insurance company is hereby authorized and directed to make payment for all such losses directly to the Grantor and the Beneficiary jointly. The net proceeds from any such policy or policies sha ll be applied as provided in the Installment Financing Contract. The Beneficiary shall not be held responsible for any failure to collect any insurance proceeds due under the terms of any policy regardless of the cause of such failure. (c) For the portion of such insurance which is not self-insurance, at least thirty (30) days prior to the expiration date of each policy maintained pursuant to this Section 1.3, a renewal or replacement thereof satisfactory to the Beneficiary shall be delivered by the Grantor to the Beneficiary, if requested . In the event of the foreclosure of this Deed of Trust or any other transfer of title to the Mortgaged Property in extinguishment of the Indebtedness secured hereby, all right, title and interest of the Grantor in and to all insurance policies then in force shall pass to the purchaser or Beneficiary, as appropriate. Section 1.4. Condem11ation. In the event there hereafter occurs a condemnation (which term when used in this Deed of Trust shall include any damage or taking by any governmental authority or other entity having the powe r of eminent domain, and any transfer by private sale in lieu thereof), resulting in any damage or t aking, either temporarily or permanently, of (1) the entire Mortgaged Property, (2) so much of the Mortgaged Property as causes the remainder of the Mortgaged Property to be in violation of any zoning laws, restrictive covenants or similar law s, regulations or restrictions affecting the Mortgaged Property, and the Grantor fails to cure such violation within thirty (30) days of the condemnation or such violation does not prevent the Grantor's continued use of the Mortgaged Property in the ordinary course of its business or (3) so much of the Mortgaged Property that, in the sole reasonable opinion of the Beneficiary, the value of the Mortgaged Property is materially and adversely affected, then, and in any one of said events, the Grantor shall repay the Indebtedness in accordance with Article VIII of the Installment Financing Contract. To the extent permitted by law, the Beneficiary shall be entitled to receive all compensation, awards and other payments or relief thereof. The Beneficiary is hereby authorized , at it s option , to commence, appear in and prosecute, in its own or in the Grantor's name, any action or proceeding relating to any condemnation, and to settle or compromise any claim in connection therewith. All such compensation, awards, damages , claims, rights of action and proceeds and the right thereto are hereby assigned by the Grantor to the Beneficiary. After deducting from said condemnation proceeds all of it s expenses incurred in the collection and administration of such sums, including reasonable attorneys' fees, the Beneficiary shall apply the net proceeds as provided in the Installment Financing Contract, subject to the terms of Article VIII of the Installment Financing Contract. Any balance of such monies then remaining sha ll be paid to the Grantor. The Grantor hereby agrees to execute such further assignment of any compensation, awards, damages , claims, rights of action and proceeds as the Beneficiary may requ ire. Section 1.5 . Care of Mortgaged Property. (a) T he Grantor will keep the buildings, parking areas, roads and walkways, recreational facilities, landscaping and all other improvements of any kind now or hereafter erected on the Real Property or any part thereof in good condition and repair, will not commit or 5 PPAB 3185527v2 040416 HC BOC Page 78 suffer any waste, and will not do or suffer to be done anything which will increase the risk of fire or other hazard to the Mortgaged Property or any part thereof. (b) Except for structures existing on the date of this Deed of Trust, the Grantor will not remove or demolish nor alter the structural character of a ny improvement located on the Real Property without the prior written consent of the Beneficiary. (c) If the Mortgaged Property or any part thereof is damaged by fire or any other cause, the Grantor will give immediate written notice thereof to the Beneficiary and the Trustee. (d) Upon reasonable notice to the Grantor, the Beneficiary or its representative is hereby authorized to enter upon and inspect the Mortgaged Property at any time during normal business hours. The Beneficiary agrees that any confidential information about the Grantor obtained in the exercise of its rights under this subparagraph (d) shall, except as otherwise requi red by la w or regulation applicable to the Beneficiary, be maintained in a confidential manner and shall be used by the Beneficiary only for the protection of its rights and interests hereunder. (e) The Grantor will promptly comply with all present and future laws, ordinances, rules and regulations of any governmental authority (including, but not limited to, all environmental and ecological laws and regulations) affecting the Mortgaged Property or any part thereof. (f) If all or any part of the Mortgaged Property shall be damaged or destroyed as described in Section 7.1 of the Contract, the Grantor will promptly repair, restore, mo dify, improve or replace the Mortgaged Property or any remaining portions in accordance with Section 7.2 of the Contract or, under certain circumstances described in Section 7.3 of the Contract, apply any Net Proceeds (as defined in the Contract) as provided for in Section 7.3 of the Contract. Section 1.6. Leases and Other Agreements Affecting Property . The Grantor will duly and punctually perform all terms , covenants, conditions and agreements binding upon the Grantor under any lease or any other agreement of any nature whatsoever which involves or affects the Mortgaged Property or any part thereof. The Grantor will furnish the Beneficiary with executed copies of all leases now or hereafter created upon the Mortgaged Property or any part thereof, and all leases now or hereafter entered into wi ll be in form and substance subj ect to the prior written approval of the Beneficiary. The Grantor will not, without the express written approva l of the Beneficiary (which approval will not be unreasonably withheld or delayed), modify, surrender or terminate, either orally or in writing, any lease now existing or hereafter created upon the Mortgaged Property or any part thereof, nor will the Grantor permit an assignment or a subletting by any tenant without the prior express written approval of the Beneficiary. The Grantor will not accept payment of rent more than one (1) month in advance without the prior express written approval of the Beneficiary. Section 1.7. Security Agreement and Fixture Filing. With respect to the Fixtures, this Deed of Trust is hereby made and declared to be a security agreement in favor of the Beneficiary encumbering each and every item of such property included herein as a part of the Mortgaged Property, in compliance with the provisions of the Uniform Commercial Code as enacted in the State of North Carolina, and the Grantor hereby grants a securi ty interest to the Beneficiary in and to all of such Fixtures . This Deed of Trust shall constitute a financing statement filed as a fixture filing in accordance with N .C . Gen. Stat. §25-9-402 (or any amendment thereto). For purposes of complying with the requirements of N.C. Gen. 6 PPAB 31 85527v2 040416 HC BOC Page 79 Stat. §25-9-402, the name of Grantor, as Debtor, and Beneficiary, as Secured Party, and the respective addresses of Grantor, as Debtor, and Beneficiary, as Secured Party, are set forth on the first page of this Deed of Trust. Grantor authorizes Beneficiary to effect any filing or recording of any additional fmancing statements relating to the Fixtures or amendments thereto where appropriate to perfect and continue the security interest in, and to protect and preserve, the Fixtures. The remedies for any violation of the covenants, terms and conditions of the security agreement contained in this Deed of Trust shall be (1) as prescribed herein, or (2) as prescribed by general law , or (3) as prescribed by the specific statutory consequences now or hereafter enacted and specified in said Uniform Commercial Code, all at the Beneficiary 's sole election. The mention in any such financing statement or statements of the rights in and to (l) the proceeds of any fire and/or hazard insurance policy, or (2) any award in eminent domain proceedings for a taking or for lo ss of value, or (3) the Grantor's interest as lessor in any present or future lease or rights to rents , issues or awards growing out of the use and/or occupancy of the Mortgaged Property, whether pursuant to lease or otherwise, shall not in any way alter any of the rights of the Beneficiary as determined by this Deed of Trust or affect the priority of the Beneficiary 's security interest granted hereby or by any other recorded document, it being understood and agreed that such mention in such financing statement or statements is solely for the protection of the Beneficiary in the event any court shall at any time hold with respect to the foregoing clauses (1), (2) or (3) of this sentence, that notice of the Beneficiary 's priority of interest, to be effective against a particular class of persons, must be filed in the Uniform Commercial Code records. Section 1.8. Further Assurances; After Acquired Property. At any time, and from time to time, upon request by the Beneficiary, the Grantor will make, execute and deliver or cause to be made, executed and delivered, to the Beneficiary and/or the Trustee and, where appropriate, cause to be recorded and/or filed and from time to time thereafter to be re-recorded and/or refiled at such time and in such offices and places as shall be deemed desirable by the Beneficiary, any and all such other and further deeds of trust, security agreements, financing statements, continuation statements, instruments of further assurance, certificates and other documents as may, in the opinion of the Beneficiary, be necessary or desirable in order to effectuate, complete, or perfect, or to continue and preserve (1) the obligations of the Grantor under the Installment Financing Contract or this Deed of Trust and (2) the status as first a nd prior lien upon and security title in and to, subject to Permitted Encumbrances, all of the Mortgaged Property, whether now owned or hereafter acquired by the Grantor, created under this Deed of Trust. Section 1.9. Expenses. The Grantor will pay or reimburse the Beneficiary and the Trustee, upon demand therefor, for all reasonable attorneys' fees , costs and expenses actually incurred by the Beneficiary and the Trustee in any suit, action, legal proceeding or di spute of any kind in which the Beneficiary and/or the Trustee is made a party or appears as party plaintiff or defendant, affecting the Indebtedness secured hereby, this Deed of Trust or the interest created herein, or the Mortgaged Property, including, but not limited to, the exercise of the power of sale contained in this Deed of Trust, any condemnation action involving the Mortgaged Property or any action to protect the security hereof, but excepting therefrom any negligence or willful misconduct by the Beneficiary or any breach of thi s Deed of Trust by the Beneficiary; and all such amounts paid by the Beneficiary shall be added to the Indebtedness. Section 1.1 0. Estoppel Affidavits. The Grantor, upon ten (I 0) days' prior written notice, shall furnish the Beneficiary a written statement, duly acknowledged, setting forth the unpaid principal of, a nd interest on, the Indebtedness and whether or not any offsets or defenses exist against such principal and interest. 7 PPAB 3 185527v2 040416 HC BOC Page 80 Section 1.11. Subrogation . The Beneficiary shall be subrogated to the claims and liens of all parties w hose claims or liens are discharged or paid with the proceeds of the Indebtedness . Section 1.12. Books, Records, Accounts and Annual Reports . The Grantor will keep and maintain or will cause to be kept and maintained proper and accurate books, records and accounts relating to the Mortgaged Property. The Beneficiary shall have the right from time to time at all times during normal business hours to examine such books, records and accounts at the office of the Grantor or such other person or entity maintaining such books, records and accounts and to make copies or extracts thereof as the Beneficiary shall desire. Section 1.13. Limit of Validity. If from any circumstances whatsoever fulfillment of any provision of this Deed of Trust or the Installment Financing Contract at the time performance of such provision shall be due, shall involve transcending the limit of validity presently prescribed by any applicable usury statute or any other applicable law, with regard to obligations of like character and amount, then ipso facto the obligation to be fulfilled shall be reduced to the limit of such validity, so that in no event s hall any exaction be possible under this Deed of Trust or the Installment Financing Contract that is in excess of the current limit of such va lidity, but such obligation shall be fulfilled to the limit of such validity. Section 1.14. Changes in Ownership . The Grantor hereby acknowledges to the Beneficiary that (1) the identity and expertise of the Grantor were and continue to be material circumstances upon which the Beneficiary has relied in connection with, and which constitute valuable consideration to the B eneficiary for, the extending to the Grantor of the Indebtedness and (2) any change in such identity or expertise could materially impair or jeopardize the security for the payment of the Indebtedness g ranted to the Beneficiary by this Deed of Trust. The Grantor therefore covenants and agrees with the Beneficiary, as part of the consideration for the extending to the Grantor of the Indebtedness, that the entire Indebtedness shall, at the option of the Beneficiary, become immediately due and payable, should the Grantor further encumber, pledge, convey, transfer or assign any or all of its interest in the Mortgaged Property or any portion thereof without the prior written consent of the Beneficiary or except as otherwise permitted herein. Section 1.15 . Use and Management of the Mortgaged Property . The Grantor shall not alter or change the u se of the Mortgaged Property or abandon the Mortgaged Property without the prior written consent of the Beneficiary. Section 1.16. Acquisition of Collateral. The Grantor shall not acquire any portion of the personal property, if any, covered by this Deed of Trust, subject to any security interest, conditional sales contract, title retention arrangement or other charge or lien taking precedence over the security title and lien of this Deed of Trust without the prior written consent of the Beneficiary. Section 1.17. Hazardous Material. (a) The Grantor represents, warrants and agrees that, except as previously disclosed to the Beneficiary in writing: (1) the Grantor has not used or installed any Hazardous Material (as hereinafter defined) in violation of applicable Environmental Laws on, from or in the Mortgaged Property and to the Grantor's actual knowledge no other person has u sed or installed any Hazardous Material o n, from or in the Mortgaged Property; (2) to the Grantor's knowledge, no other person has v iolated any applicable Environmental Laws (as hereinafter defined) relating to or affecting the Mortgaged Property or any other property owned by the Grantor except as 8 PP AB 3 185527v2 040416 HC BOC Page 81 previously disclosed to the Beneficiary; (3) to the best of the Grantor's knowledge the Mortgaged Property are presently in compliance with all applicable Environmental Laws, and there are no facts or circumstances presently existing upon or under the Mortgaged Property, or relating to the Mortgaged Property, which may violate any applicable Environmental Laws, and there is not now pending or, to the best knowledge of the Grantor, threatened any action, suit, investigation or proceeding against the Grantor or the Mortgaged Property (or against any other party relating to the Mortgaged Property) seeking to enforce any right or remedy against the Grantor or the Mortgaged Property under any of the Environmental Laws; (4) the Mortgaged Property shall be kept free of Hazardous Materials to the extent required by applicable Environmental Laws, and shall not be used to generate, manufacture, refme, transport, treat, store, handle, dispose, transfer, produce, or process Hazardous Materials other than the processing of materials in the ordinary course of the Grantor's business as of the date hereof; (5) the Grantor shall not cause or permit the installation of Hazardous Materials in, on, over or under the Mortgaged Property or a Release (as hereinafter defined) of Hazardous Materials unto or from the Mortgaged Property or suffer the presence of Hazardous Materials in, on, over or under the Mortgaged Property in violation of applicable Environmental Laws ; (6) the Grantor shall comply with Environmental Laws applicable to the Mortgaged Property, all at no cost or expense to the Beneficiary or the Trustee; (7) the Grantor has obtained and will at all times continue to obtain and/or maintain all licenses, permits and/or other governmental or regulatory actions necessary for the Mortgaged Property to comply with applicable Environmental Laws (the "Permits") and the Grantor will be and at all times remain in full compliance with the terms and provisions of the Permits; (8) to the best of the Grantor's knowledge there has been no Release of any Hazardous Materials on or from the Mortgaged Property in violation of applicable Environmental Laws, whether or not such Release emanated from the Mortgaged Property or any contiguous real estate which has not been abated and any resulting violation of applicable Environmental Laws abates; (9) the Grantor shall immediately give the Beneficiary oral and written notice in the event that the Grantor receives any notice from any governmental agency, entity, or any other party with regard to Hazardous Materials on, from or affecting the Mortgaged Property and the Grantor shall conduct and complete all investigations, studies, sampling, and testing, and all remedial, removal , and other actions necessary to clean up and remove all Hazardous Materials on, from or affecting the Mortgaged Property in accordance with all applicable Environmental Laws. (b) The Grantor hereby agrees to indemnify the Beneficiary and the Trustee and hold the Beneficiary and the Trustee harmless from and against any and all liens, demands, defenses, suits, proceedings, disbursements, liabilities, losses, litigation, damages, judgments, obligations, penalties, injuries, costs, expenses (including, without limitation, attorneys' and experts ' fees) and claims of any and every kind whatsoever paid, incurred, suffered by, or asserted against the Beneficiary, the Trustee and/or the Mortgaged Property for, with respect to, or as a direct or indirect result of: (1) the presence of Hazardous Materials in , on or under the Mortgaged Property, or the escape, seepage, leakage, spillage, discharge, emission or Release on or from the Mortgaged Property of any Hazardous Materials regardless of whether or not caused by or within the control of the Grantor; (2) the violation of any Environmental Laws applicable to the Mortgaged Property or the Grantor, whether or not caused by or within the control of the Grantor; (3) the failure by the Grantor to comply fully with the terms and provisions of this Section 1.17 ; ( 4) the violation of any of the Environmental Laws in connection with any other property owned by the Grantor, which violation gives or may give rise to any rights whatsoever in any party with respect to the Mortgaged Property by virtue of any of the Environmental Laws, whether or not such violation is caused by or within the control of the Grantor; or (5) any warranty or 9 PPAB 3 185527v2 040416 HC BOC Page 82 representation made by the Grantor in subparagraph (a) of Section I.I7 being false or untrue in any material respect. (c) In the event the Beneficiary has a reasonable basis to suspect that the Grantor has vio lated any of the covenants, warranties , or representations contained in this Section I .I 7, or that the Mortgaged Property are not in compliance with the applicable Environmental Laws for any reason , the Grantor shall take such steps as the Beneficiary reasonably requires by written notice to the Grantor in order to confirm or deny such occurrences, including, without limitation, the preparation of environmental studies, surveys or reports. In the event that the Grantor fails to take such action, the Beneficiary may take such action as the Beneficiary reasonably believes necessary to protect it s interest, and the cost and expenses of all such actions taken by the Beneficiary, including, without limitation , the Beneficiary's reasonable attorneys ' fees, shall be added to the Indebtedness. (d) For purposes of this Deed of Trust: (1) "Hazardous Material" or "Hazardous Materials" means and includes, without limitation, (A) solid or hazardous waste, as defined in the Resource Conservation and Recovery Act of I980, as amended, or in any applicable state or local law or regulation , (B) hazardous substances, as defined in CERCLA, or in any applicable state or local law or regulation , (C) gasoline, or any other petroleum product or by-product, (D) toxic substances, as defined in the Toxic Substances Control Act of I976, as amended, or in any applicable state or local law or regulation or (E) insecticides, fungicides, or rodenticides, as defmed in the Federal Insecticide , Fungicide, and Rodenticide Act of 1975, as amended, or in any applicable state or local law or regulation, as each such Act, statute or regulation may be amended from tim e to time; (2) "Release" shall ha ve the meaning given such term, in the Environmental Laws, including, without limitation, Section 101 (22) of CERCLA; and (3) "Environmental Law" or "Environmental Laws" sha ll mean any "Super Fund" or "Super Lien " law, or any other federal, state or local statute, law , ordinance or code, regulatin g, relating to or imposing liability or standards of conduct concerning any Hazardous Materials as may now or at any time hereafter be legally in effect , including, without limitation, the following, as same may be amended or replaced from time to time , and all regulations promulgated and officially adopted thereunder or in connection therewith: the Super Fund Amendments and Reauthori zation Act of I986, as amended ("SARA"); the Comprehensive Environmental Response, Compensation and Liability Act of I980, as amended (uCERCLA"); The C lean Air Act, as amended ("CAA"); the Clean Water Act, as amended ("CWA '');The Toxic Substance Control Act, as amended ("TSCA ");the Solid Waste D isposal Act, as amended ("SWDA ''), as amended by the Resource Conservation and Recovery Act, as amended ("RCRA "); the Hazardous Waste Management System; and the Occupational Safety and Health Act of 19 70, as amended (uOSHA "). The obligations and liabilities of the Grantor under this Section 1.1 7 which arise out of events or actions occurring prior to the satisfaction of this Deed of Trust sha ll survive the exercise of the power of sa le under or foreclosure of this Deed of Tru st, the delivery of a deed in lieu of foreclosure of this Deed of Trust, the cancellation or relea se of record of thi s Deed of Trust, and/or the payment in full of the Indebtedness. (e) The parties expressly agree that an event under the provisions of Section I.I7 which may be deemed to be a default under this Deed of Trust shall not be a default until the Grantor ha s received notice of such event. Further, in term s of compliance with future governmental laws, regulations or rulings applicab le to environmental conditions, the Grantor sha ll be permitted to afford itself of any defense or other protection against the application or enforcement of any such law, regulation or ruling. 10 PPAB 3185527v2 040416 HC BOC Page 83 Section 1.18. Release of Mortgaged Property. Notwithstanding any other provisions of this Deed of Trust and at any time so long as there is no Event of Default, the Trustee may release the Mortgaged Property or any part thereof from the lien and security interest of this Deed of Trust only as described in this section. The Trustee must release the Mortgaged Property or any part thereof from the lien and security interest of this Deed ofTrust when and if the following requirements have been fulfilled: (i) In connection with any release of the Mortgaged Property, or any part thereof, there sha ll be filed with the Beneficiary a certified copy of the resolution of the County Council for the Grantor stating the purpose for which the Grantor desires such release of the Mortgaged Property, giving an adequate legal description of the part of the Mortgaged Property to be released, requesting such release and providing for the payment by the Grantor of all expenses in connection with such release. (ii) In connection with the release of any part of the Mortgaged Property constituting less than the entire Mortgaged Property, the aggregate principal components of the Installment Payments then Outstanding are not more than 50% of the insured, appraised or assessed value of the Mortgaged Property remaining after the proposed release; (iii) In connection with the release of any part of the Mortgaged Property constituting less than the entire Mortgaged Property, such release shall not prohibit Grantor's ingress, egress and regress to and from the remainder of the Mortgaged Property not being released, or materially interfere with the use of the remainder of the Mortgaged Property not being released. (iv) In connection with the release of all property constituting the entire Mortgaged Property, there is paid to the Beneficiary an amount sufficient to provide for the payment in full of all Installment Payments due under the Installment Financing Contract. Section 1.19 . Grallt atld Release of Easemellts. Notwithstanding any other provisions of this Deed of Trust, at any time so long as there is no Event of Default, with the consent of the Trustee, the Grantor may at any time or times grant easements, licenses, rights of way and other rights and privileges in the nature of easements with respect to any part of the Mortgaged Property and the Grantor may re lease existing interests, easements, lice nses, rights of way and other rights or privileges with or without consideration. The Beneficiary agrees that it shall execute and deliver and will cause, request or direct the Trustee to execute and deliver any instrume nt reasonably necessary or appropriate to grant or release any such interest, easement, license, right of way or other right or privilege but only upon receipt of (a) a copy of the instrument of grant or release, (b) a written request of the Grantor requesting such instrument and (c) a certificate executed by the Grantor that the grant or release is not detrimental to the proper conduct of the operations of the Grantor at the Mortgaged Property and will not impair the effective use, nor decrease the value, of the Mortgaged Property.Section 1.20. Release of Fixtures. Notwithstanding any other provisions of this Deed of Trust, at any time so long as there is no Event of Default, with the consent of the Trustee, the Grantor may at any time or times release Fixtures to be added to the Mortgaged Property from the security interest created hereby with or without consideration. The Beneficiary agrees that it shall execute and deliver and will cause, request or direct the Trustee to execute and deliver any instrument reasonably necessary or appropriate to release any such Fixture but only upon 11 PPAB 3 1855 27v2 040416 HC BOC Page 84 receipt of (a) a copy of the instrument of release, (b) a written request of the Grantor requesting such instrument and (c) a certificate executed by the Grantor that the release is not detrimental to the proper conduct of the operations of the Grantor at the Mortgaged Property and will not impair the effective use, nor decrease the value , of the Mortgaged Property. ARTICLE II Section 2.1 . Events of Default. The terms "Default", "Event of Default" or "Events of Default", wherever used in this Deed ofTrust, shall mean any one or more of the following events: (a) Failure by the Grantor to pay any principal component or interest component of the Installment Payments when due as required by the Installment Financing Contract or by this Deed of Trust; or (b) Failure by the Grantor to duly observe or perform after notice and lapse of any applicable grace period any other term , covenant, condition or agreement of tills Deed of Trust; or (c) Any warranty of the Grantor contained in this Deed of Trust, proves to be untrue or misleading in any material respect ; or (d) The occurrence of any "Event of Default" under the Installment Financing Contract. Section 2.2. Acceleration upon Default, Additional Remedies. In the event an Event of Default shall have occurred and is continuing, the Beneficiary may declare all Indebtedness to be due and payable and the same shall thereupon become due and payable without any presentment, demand, protest or notice of any kind. Thereafter, the Beneficiary may: (a) Either in person or by agent, with or without bringing an y action or proceeding, or by a receiver appointed by a court and without regard to the adequacy of its security, enter upon and take possession of the Mortgaged Property, or any part thereof, in its own name or in the name of the Trustee, and do any acts willch it deems necessary or desirable to preserve the value, marketability or rentability of the Mortgaged Property, or part thereof or interest therein, increase the income therefrom or protect the security hereof, and, with or without taking possession of the Mortgaged Property, sue for or otherwise collect the rents and issues thereof, including those rents and issues past due and unpaid, and apply the same, less costs and expenses of operation and collection including attorney 's fees , upon any Indebtedness , all in such order as the Beneficiary may determine. The entering upon and taking possession of the Mortgaged Property, the collection of such rents and issues and the appli cation thereof as aforesaid, shall not cure or waive any Event of Default or notice of Event of Default hereunder or invalidate any act done in response to such Default or pursuant to such notice of Default and notwithstanding the continuance in possession of the Mortgaged Property or the collection, receipt and application of rents and is sues, the Trustee or the Beneficiary shall be entitled to exercise every right provided for in any instrument securing or relating to the Indebtedness or by law upon occurrence of any Event of Default, including the right to exercise the power of sale ; (b) Commence an action to foreclose tills Deed of Trust as a mortgage, appoint a receiver, specially enforce any of the covenants hereof, or cause the Trustee to foreclose tills Deed ofTrust by power of sale; and 12 PPAB 3 185527 v2 040416 HC BOC Page 85 (c) Exerci se any or all of the remedies available to a secured party under th e Uniform Commercia l Code of North Carolina or under any other applicable laws. (d) Notwithstanding any provis ion to the contrary in this Deed of Trust, no deficiency j ud gment may be rendered against the Grantor in any action to collect any of the Indebtedness secured by this Deed of Trust and the taxing power of the Grantor i s not and may not be pledged directly or indirectly or contingently to secure any monies due or secured under thi s Deed ofTru st. Section 2.3. Foreclosure by Power of Sale . Should the Beneficiary elect to foreclose by exercise of the power of sa le herein conta ined , the Beneficiary shall notify the Trustee and shall deposit with the Tru stee this Deed of Trust and such rece ipts and evidence of expenditures made and secured hereby as the Trustee ma y require. Upon applica tion of the Beneficiary, it shall be law ful for and the du ty of the T rustee, and the Trustee is hereby authorized and empowered to expose to sale and to se ll the Mortgaged Property at public auction for cash, after hav ing first complied with all applicable requirements of North Carolina law with respect to the exercise of powers of sa le contained in deed s of trust and upon such sale, the Trustee shall convey title to the purchaser in fee simple. After reta ining from the proceeds of s uch sale just compensation for the Trustee 's serv ices and all expenses incurred by the Trustee , including a the Trustee's comm ission not exceeding one percent (1%) o f th e bid and reasonable attorneys' fees for legal services actually performed, th e Trustee shall apply the residue of the proceeds first to the payment of all sums expended by the Beneficiary under the terms of thi s Deed of Trust; second , to the payment of the Indebtedness and interest thereon secured hereby; and the balance, if any, sha ll be paid to the Grantor. The Grantor agrees that in the event of sale hereunder, the Beneficiary shall have the right to bid thereat. The Trustee may require the successfu l bidder at any sale to deposit immediately with the Trustee cash or certified check in an amount not to exceed twenty-five pe rce nt (25%) of the bid , provided notice of such requirement is contained in the advertisement of the sa le. The bid may be rejected if the deposit is not immediately made and thereupon the next highest bidder may be declared to be the purchaser. Such deposit sha ll be refunded in case a resale is had ; otherwise, it shall be applied to the purchase price. Section 2.4. Performance by the Beneficiary on Defaults by the Gra11tor. If the Grantor sha ll D efault in the payment, performance or observance of any term, covenant or co ndi tio n of this Deed of Trust, the Beneficiary may, at its option, pay, perform or observe the same, and all payments made or costs or expenses incurred by the Beneficiary in connection therewith, shall be secured hereby and shall be, without demand , immediatel y repaid by the Grantor to th e Beneficiary with interest thereon at the rate provided in the Installment Financing Contract. The Beneficiary shall be the sole judge of the necessity for any such actions and of the amounts to be pa id . The Beneficiary is hereby empowered to enter and to authorize others to enter upon the M ortgaged Property or any part thereof for the purpose of performing o r observing any such default ed term , covenant o r condition without thereby becoming liable to the Grantor or any person in possession holdin g under the Grantor. Section 2.5. Receiver . If a n Event of De fault sha ll have occurred and is continuing and such Event of Default as to Events of Default occurring under Subsections 2.1 (b), (c) and (d) hereof contin ues uncured for a period of 30 days or more after written notice of such Event of D efault is given by the Be neficiary t o th e Grantor, the Beneficiary, upon a pplication to a court of competent j uri sdiction , shall be entitled as a matter of stri ct r ight without notice and without regard to the adequacy or value of any security for the Indebtedness secured hereby or the solvency of any party bound for its payment , to the appoi nt ment of a receiver or recei vers to take possession of and to operate the Mortgaged Property and to 13 PPAB 3 185527v2 040416 HC BOC Page 86 collect and apply the rents and issues thereof. The Grantor hereby irrevocably consents to such appointment, provided the Grantor receives notice of any application therefor. Any such receiver or receivers shall have all of the rights and powers permitted under the laws of the State of North Carolina and all the powers and duties of the Beneficiary in case of entry as provided in Section 2.2(a), and shall continue as such and exercise all such powers until the date of confirmation of sale of the Mortgaged Property unless such receivership is sooner terminated. The Grantor will pay to the Beneficiary upon demand all reasonable expenses, including receiver's fees , attorneys ' fees, costs and agent 's compensation, incurred pursuant to the provisions of this Section; and all such expenses shall be secured by this Deed of Trust. Section 2.6. Waiver of Appraisement, Valuation, Stay, Extension and Redemption Laws. The Grantor agrees to the full extent permitted by law , that in case of a Default hereunder, neither the Grantor nor anyone claiming through or under it shall or will set up , claim or seek to take advantage of any appraisement, valuation, stay, extension, homestead, exemption or redemption laws now or hereafter in force , in order to prevent or hinder the enforcement or foreclosure of this Deed of Trust, or the absolute sale of the Mortgaged Property, or the final and absolute putting into possession thereof, immediately after such sale, of the purchasers thereat, and the Grantor, for itself and all who may at any time claim through or under it , hereby waives to the full extent that it may lawfully so do, the benefit of all such laws, and any and all right to have the assets comprised in the security intended to be created hereby marshalled upon any foreclosure of the lien hereof. Section 2.7. Leases. The Beneficiary and the Trustee, or either of them, at their option and to the extent permitted by law, are authorized to foreclose this Deed of Trust and such right supercedes any rights of any tenants of the Mortgaged Property, and the failure to make any such tenants parties to any such foreclosure proceedings and to foreclose their rights will not be , nor be asserted to be by the Grantor, a defense to any proceedings instituted by the Beneficiary and the Trustee to collect the sums secured hereby. Section 2.8. Discontinuance of Proceedings and Restoration of the Parties. In case the Beneficiary and the Trustee, or either of them, shall have proceeded to enforce any right, power or remedy under this Deed of Trust by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned for any reason, or shall have been determined adversely to the Beneficiary and the Trustee, or either of them, then and in every such case the Grantor and the Beneficiary and the Trustee, and each of them, shall be restored to their former positions and rights hereunder, and all rights , powers and remedies of the Beneficiary and the Trustee, and each of them, shall continue as if no such proceeding had been taken. Section 2.9. Remedies Not Exclusive. Subject to Article Xlll of the Installment Financing Contract, the Trustee and the Beneficiary, and each of them , shall be entitled to enforce payment and performance of any Indebtedness or obligations secured hereby and to exercise all rights and powers under this Deed of Trust or any other agreement securing or relating to the Indebtedness secured hereby or any laws now or hereafter in force, notwithstanding some of the Indebtedness and obligations secured hereby may now or hereafter be otherwise secured, whether by mortgage, deed of trust, pledge, lien, assignment or otherwise. Neither the acceptance of this Deed of Trust nor its enforcement, whether by court action or pursuant to the power of sale or other powers herein contained, shall prejudice or in any manner affect the Trustee's or the Beneficiary's right to realize upon or enforce any other security now or hereafter held by the Trustee or the Beneficiary, it being agreed that the Trustee and the Beneficiary, and each of them, shall be entitled to enforce this Deed of Trust and any other security now or hereafter held by the Beneficiary or the Trustee in such order and manner as they or either of them may in their absolute 14 PPAB 3 185527 v2 040416 HC BOC Page 87 discretion determine. No remedy herein conferred upon or reserved to the Trustee or the Beneficiary is intended to be exclusive of any other remedy herein or by law provided or preclusive of any other remedy herein or by law provided or permitted, but each shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute. Every power or remedy given by any instrument securing or relating to the Indebtedness secured hereby to the Trustee or the Beneficiary or to which either of them may be otherwise entitled, may be exercised, concurrently or independently, from time to time and as often as may be deemed expedient by the Trustee or the Beneficiary and either of them may pursue inconsistent remedies. Section 2.1 0 . Waiver. No delay or omission of the Beneficiary or the Trustee to exercise any right , power or remedy accruing upon any Default shall exhaust or impair any such right, power or remedy or shall be construed to be a waiver of any such Default, or acquiescence therein; and every right, power and remedy given by this Deed of Trust to the Beneficiary and the Trustee, and each of them , may be exercised from time to time and as often as may be deemed expedient by the Beneficiary and the Trustee, and each of them. No consent or waiver, expressed or implied, by the Beneficiary to or of any breach or Default by the Grantor in the performance of the obligations thereof hereunder shall be deemed or construed to be a consent or waiver to or of any other breach or Default in the performance of the same or any other obligations of the Grantor hereunder. Failure on the part of the Beneficiary to complain of any act or failure to act or to declare an Event of Default, i:rrespective of how long such failure continues, shall not constitute a waiver by the Beneficiary of its rights hereunder or impair any rights, powers or remedies consequent on any breach or Default by the Grantor. Section 2.11. Suits to Protect the Mortgaged Property. The Beneficiary and the Trustee, and each of them, shall have the power (a) to institute and maintain such suits and proceedings as they may deem expedient to prevent any impairment of the Mortgaged Property by any acts which may be unlawful or in violation of this Deed of Trust, with notice of commencement of such suits and proceedings to be given to the Grantor, (b) to preserve or protect their interest in the Mortgaged Property and in the rents and issues arising therefrom , and (c) to restrain the enforcement of or compliance with any legislation or other governmental enactment, rule or order that may be unconstitutional or otherwise invalid, if the enforcement of or compliance with such enactment, rule or order would impair the security hereunder or be prejudicial to the interest of the Beneficiary. Section 2.12. Beneficiary May File Proofs of Claim. In the case of any receivership, insolvency, bankruptcy, reorganization, arrangement, adjustment, composition or other proceedings affecting the Grantor, its creditors or its property, the Beneficiary, to the extent permitted by law, shall be entitled to file such proofs of claim and other documents as may be necessary or advisable in order to have the claims of the Beneficiary allowed in such proceedings for the entire amount due and payable by the Grantor under this Deed of Trust at the date of the institution of such proceedings and for any additional amount which may become due and payable by the Grantor hereunder after such date. ARTICLE Ill Section 3.1. Successors a11d Assigns. This Deed of Trust shall inure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, legal representatives, successors and assigns. Whenever a reference is made in this Deed of Trust to the Grantor, the Trustee or the Beneficiary such reference shall be deemed to include a reference to the heirs, executors, legal representatives, successors and assigns of the Grantor, the Trustee or the Beneficiary, respectively. 15 PPAB 3 185527v2 040416 HC BOC Page 88 Section 3.2. Terminology. All personal pronouns used in this Deed of Trust whether used in the masculine, feminine or neuter gender, shall include all other genders; the singu lar shall include the plural, and vice versa. Titles and Articles are for convenience only and neither limit nor amplify the provisions of this Deed of Trust itself, and all references herein to Articles, Sections or subsections thereof, shall refer to the corresponding Articles, Sections or subsections thereof, of this Deed of Trust unless specific reference is made to such Articles , Sections or subsections thereof of another document or instrument. Section 3.3. Severability. If any provision of this Deed of Trust or the application thereof to any person or circumstance shall be invalid or unenforceable to any extent, the remainder of this Deed of Trust and the application of such provisions to other persons or circumstances shall not be affected thereby and shall be enforced to the greatest extent permitted by law. Section 3.4. Applicable Law and Jurisdiction. This Deed of Trust shall be interpreted, construed and enforced according to the Jaws of the State of North Carolina. The exclusive forum and venue for all actions arising out of this Deed of Trust are with the North Carolina General Court of Justice in Harnett County, North Carolina or the U.S. District Court for the Eastern District of North Carolina. Any attempt to contravene this Section shall be an express violation of this Deed of Trust. Section 3.5. Notices, Demands and Request. All notices, demands or requests provided for or permitted to be given pursuant to this Deed of Trust must be in writing and shall be deemed to have been properly given or served by personal delivery or by depositing in the United States Mail, postpaid and registered or certified return receipt requested, and addressed to the addresses set forth in the Installment Financing Contract. All notices, demands and requests shall be effective upon personal delivery or upon being deposited in the United States Mail. However, the time period in which a response to any notice, demand or request must be given, if any , shall commence to run from the date of receipt of the notice, demand or request by the addressee thereof. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice, demand or request sent. By giving at least thirty (30) days written notice thereof, the Grantor, the Trustee or the Beneficiary shall have the right from time to time and at any time during the term of this Deed of Trust to change their respective addresses and each shall have the right to specify as its address any other address within the United States of America. Section 3.6. Appointment of Successor to th e Trustee. The Beneficiary shall at any time have the irrevocable right to remove the Trustee herein named without no t ice or cause and to appoint a successor thereto by an instrument in writing, duly acknow ledged, in such form as to entitle such written instrument to be recorded in this state, and in the event of the death or resignation of the Trustee named herein , The Beneficiary shall have the right to appoint a successor thereto by such written instrument, and any the Trustee so appointed shall be vested with the title to the Mortgaged Property and shall possess all the powers, duties and obligations herein conferred on the Trustee in the same manner and to the same extent as though such were named herein as the Trustee. Section 3.7. Trustee's Powers. At any time, or from time to time, without liability therefor and without notice, upon written request of the Beneficiary and presentation of this Deed of Trust, and without affecting the personal liability of any person for payment of the Indebtedness secured hereby or the effect of this Deed of Trust upon the remainder of the Mortgaged Property, the Trustee may ( 1) reconvey any part of the Mortgaged Property, (2) consent in writing to the making of any map or plat thereof, (3) join in granting any easement therein, or (4) join in any extension agreement or any agreement subordinating the lien or charge hereof. 16 PP AB 31 85527 v2 040416 HC BOC Page 89 Section 3.8. Beneficiary's Powers . Without affect ing the liability of any other person liable for the payment of any obligation herein menti oned , and w itho ut affecting the lien or charge of this Deed of Trust upon any porti on of t he Mortgaged Property not the n or theretofore released as security for the full amount of all unpaid obligations, the Benefi ciary may, from time to time and without notice (I) release any person so liable, (2) extend the maturi ty or alter any of the terms of any such obligation , (3) grant o ther indul gences, (4) cause to be released or reconveyed at any time at the Benefi c iary 's option, any parcel, portion or all of th e Mortgaged Property, (5) take or relea se any other or additional security for any obligation herein mentioned , or (6) make compositions o r other arrangements with de btor in rel ation thereto. The provisions of Section 45-45 .I of the General Statutes of North Carolina , as amended, or any similar statute hereafter enacted in replacement or in substitution thereof shall be inapplicable to thi s Deed ofTrust. Section 3.9. Acceptance by Trustee . The Trustee accepts this Trust when thi s Deed of Trust, dul y executed and acknowledged, is made of public record as provided by law . Sectio n 3.10. Miscellaneous . The covenants, terms and conditions herein contained shall bind, and the benefits and powers shall inure to the respective heirs, executors, admini strator s, successors and assigns of the parties hereto. Whenever used herein , th e singular number shall include the plural, the plural the singular, and the term "Beneficiary" shall include any payee of the indebtedness hereby secured and any transferee or assignee thereof, whether by operation of law or otherwi se. Secti on 3.11 . Waiver of Rights. By execution of this Deed of Trust and to the extent permitted by l aw, the Grantor expressly: (1) acknowledges the right to accelerate the Indebtedness and the power of sa le g iven herein to the Trustee to sell the Mortgaged Property by non-judicial foreclosure upon default by the Grantor and without any notice other than such notice (if any) as is specifically required to be given by law or unde r the provisions of this Deed of Trust; (2) waives any and all rights of the G rantor to appraisement, dower, curtsey and homestead r ights to the extent permitted by applicable law; (3) acknowledges that the Grantor has read this Deed of Trust and any and all questions regarding the legal effect of thi s Deed of Trust and its provisions have been explained fully to the Grantor and the Grantor has consulted with counsel or its choice prior to executing thi s Deed of Tru st; and (4) acknowledges that all waivers of the aforesaid rights of the Grantor have been made knowingly, in tentiona ll y and w illin gly by the Grantor as part of a b arga in ed for tra nsacti on . Section 3.12 E-Verify. The Deed of Trust T ru stee and the Beneficiary und erstand that "E- Veri fy" is a federal program o pera ted by the United States Department of Home land Security and other federal agencies, or any successor or equivalent program used to verify the work authorization of newly hired employees pursuant to federal law in acco rdance with Section 64 -25(5) of the General Statutes of North Carolina, as amended. The Deed of Trust Trustee and the Beneficiary use E-Verify to verify the wo rk authorization of its employees in accordance with Section 64-26(a) of the General Statutes of North Carolina, as amended. Neither the Deed of Trust Trustee or the Beneficiary will use any subcontractors in conn ection with this Deed of Trust. Section 3.13. Iran Divestment Certification. As of the date hereof, neither the Deed of Trust Trustee nor th e Beneficiary are li sted on any li st created and maintained by the North Caroli na Department of State Treasurer pursuant to the Iran Divestment Act of2015, Chapter 143C-6A-1 et seq. of the General Statutes ofNorth Carolina. 17 PPAB 3185527v2 040416 HC BOC Page 90 [SIGNATURE PAGE BEGINS ON THE FOLLOWING PAGE] 18 PP AB 3 I85527v2 040416 HC BOC Page 91 IN WITNESS WHEREOF, the Grantor has caused this Deed of Trust to be executed under seal the day and year first above written. [SEAL] COUNTY OF HARNETT, NORTH CAROLINA By: ____________________________ __ Joseph Jeffries County Manager [DEED OF TRUST OF COUNTY OF HARNETT FOR THE BE NE FIT OF REGIO NS CAPITAL ADVANTAGE, I NC. DATED AS OF APRJL 21 , 2016] 19 PPAB 3185527v2 040416 HC BOC Page 92 STATE OF NORTH CAROLINA ) ) COUNTY OF BARNETT ) I, a Notary Public of the County and State aforesaid, certify that Joseph Jeffries (the "Signatory') personally came before me this day and acknowledged that he is the County Manager for the County of Harnett, North Carolina and that by authority duly given and as the act of said County, he signed the foregoing instrument. I certify that the Signa tory personally appeared before me this day, and (check one of the following) ___ (I have personal knowledge of the identity of the Signato ry); or ___ (I have seen satisfactory evidence of the Signatory's identity, by a current state or federal identification with the Signatory's photograph in the form of: (check one of th e following) a driver's license or in the form of ; or ___ (a credible witness has sworn to the identity of the Si gnatory). The Signatory acknowledged to me that s he voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated. Witness my hand and official stamp or seal, thi s the ___ day of April, 20 16 . Notary Public Print: Name: -------------------[Note: Notary Pu blic must sign exactly as on notary seal} My Commission Expires: _____________ _ ""[NOTARY SEAL] (MUST BE FULLY LEGffiLE) 20 PP AB 3185527v2 040416 HC BOC Page 93 EXHIBIT A REAL PROPERTY DESCRIPTION HARNETT CENTRAL HIGH SCHOOL SITE: Composed of: Tract 1 PIN 0662-53-2915 .000 and Tract 3 PIN 0662-53-5058 .000 BEING ALL of Tract 1 (35.05 acres) and Tract 3 (13.54 acres) as shown on that map of the Harnett Central High School dated January 23 , 2009, by Thomas J. Gooden, PLS , which is recorded in Map No. 2009-82 , Harnett County Registry. A-1 PPAB 3185527v2 040416 HC BOC Page 94 EXHIBIT B PERMITTED ENCUMBRANCES The exceptions listed on Schedule B-Section II of the Title Insurance Policy No. [ ] issued in favor of Region s Capi tal Advantage, Inc. by [Name of Title Company] which are specifically incorporated herein by reference . B-1 PP AB 3 18552 7v2 040416 HC BOC Page 95 Parker Poe Draft-3/28/16 ESCROW AGREEMENT This ESCROW AGREEMENT (the "Agreement") is dated as of April 21 , 2016 between the COUNTY OF HARNETT, NORTH CAROLINA (the "Coun ty") and U.S. BANK NATIONAL ASSOCIATION, as escrow agent (the "Escrow A gent"), being authorized to accept and execute trusts of the character herein s et out under and by virtue of the laws of the State of North Carolina. WITNESSETH: WHEREAS, the County has previously entered into an Installment Purchase Contract dated a s of February I, 2009 (the "2009 Contra ct") with the Harnett County Public Facilities Corporation (the "Corporation"), in order to pay the capital costs of the Projects (as defined in the 2009 Contract); WHEREAS, the Corporation previously executed and delivered $35,075,000 Certificates of Participation, Series 2009 (the "2009 Certificates"), of which $29 ,075 ,000 remains outstanding, pursuant to an Indenture of Trust dated as of February 1, 2009 (the "2009 Indenture"), between the Corporation and U.S . Bank National Association, as trustee (the "Trustee"); WHEREAS, in order to pay and prepay its Installment Payment obligations under the 2009 Contract corresponding to the 2009 Certificates, the County has, pursuant to Section 160A-20 of the General Statutes of North Carolina, entered into an Installment Financing Contract dated as of April 21, 2016 (the "New Co ntract") between the County and Regional Capital Advantage, Inc.; WHEREAS, for the purpose of refinancing its Installment Payments corresponding to the 2009 Certificates, a portion of the proceeds of the New Contract will be deposited in the Escrow Fund established under this Agreement and applied to the purchase of Federal Securities, the proceeds of which are to be applied to the payment and prepayment of the 2009 Certificates; and WHEREAS, this Agreement sets forth the understandings and agreements of the County and the Escrow Agent with respect to the 2009 Certificates and the Escrow Fund; NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this Agreement, and intending to be legally bound, the County and the Escrow Agent covenant and agree: ARTICLE I D EFINITIONS Except as provided herein, all defmed terms contained in the 2009 Indenture and the 2009 Contract have the same meanings in this Agreement. In addition, the following words and terms, unless the context otherwise requires, have the following meanings: "Ag reem ent" means this Escrow Agreement dated as of April 21 , 2016 between the County and the Escrow Agent. "Co unty" means the County of Harnett, N011h Carolina, or any successor to its functions . "Escro w Agent" means U .S. Bank National Association, and its successors and assigns. "Es crow Fund'' means the Escrow Fund created in Section 2.01 which is to be applied to the payment of 2009 Certificates as provided herein. 040416 HC BOC Page 96 "F ederal Securities" means (a) direct obligations of the United States of America for the payment of which the full faith and credit of the United States of America are pledged (including any securities issued or held in the name of the Trustee in book entry fonn on the books of the Department of the Treasury of the United States of America) which obligations are held by the Escrow Agent and are not subject to prepayment or purchase before maturity at the option of anyone other than the holder; (b) any bonds or other obligations of any state or territory of the United States of America or of any agency, instrumentality or local governmental unit of any such state or territory as to which irrevocable instructions have been given to the trustee or escrow agent of such bonds or other obligations by the obligor to give due notice or prepayment and to call such bonds for prepayment on the date or dates specified, and which are rated by Moody 's and S&P within its highest rating category and which are secured as to principal, prepayment premium, if any, and interest by a fund consisting only of cash or bonds or other obligations of the character described in clause (a) hereof which fund may be applied only to the payment of such principal and interest and prepayment premium, if any , on such bonds or other ob li gations on the maturity date or dates thereof or the specified prepayment date or dates pursuant to such irrevocable instructions, as appropriate; or (c) evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in clause (a) or (b) held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obli gations described in clause (a) or (b), and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. "New Contract " means the Installment Financing Contract dated as of April 21 , 20 16 between the County and Regional Advantage Capital, Inc. "Refunded Certificates" means the outstanding 2009 Certificates maturing on and after June 1, 2020, to be defeased and prepaid with a portion of the proceeds of the New Contract. "State" means the State ofNorth Carolina. "Truste e" means U .S. Bank National Association, as trustee under the General Indenture. "2009 Certificates" means th e $35,075,000 Certificates of Participation, Series 2009, executed and delivered under the 2009 Indenture, of which $29,075,000 is currently outstanding. "2009 Co ntract" means the Installment Purchase Contract dated as of February I, 2009 between the County and the Corporation. "2009 Insurer" means Assured Guaranty Corp ., as the insurer of the 2009 Certificates. "Verification Report" means the verification report dated April 21 , 2016 by Bingham Arbitrage Rebate Services, Inc. in connection with the execution and delivery of the New Contract and the defeasance of the 2009 Certificates. ARTICLE II CREATION OF ESCROW FUND Section 2.01 Escrow Fund. There is hereby created and established with the E scrow Agent a special and irrevocable escrow fund designated the Escrow Fund, to be held in the custody of the Escrow Agent separate and apart from other funds and accounts of the County or the Escrow Agent. Section 2.02 Initial Deposit. Concurrently with the execution of this Agreement, the County has caused to be deposited with the Escrow Agent, and the Escrow Agent acknowledges receipt of$[ 040416 HC BOC Page 97 ]New Contract from the proceeds of the New Contract and $[ ] from other available funds of the County. Concurrently with the receipt of such funds, the Escrow Agent shall deposit $[ ] in the Escrow Fund. Amounts deposited in the Escrow Fund will be simultaneously applied to the purchase of the Federal Securities described in Schedule II hereto ("Schedule IF'), except to the extent of balances designated in Schedule II to be uninvested. The Federal Securities shall mature in principal amounts and pay interest in such amounts so that sufficient moneys will be available to pay (1) (a) the maturing principal and interest with respect to the 2009 Certificates until June 1, 2019 and (b) 100% of the principal of the Refunded Certificates, on June 1, 2019, at which time the outstanding principal and interest with respect to the 2009 Certificates will be paid in full. In reliance on the Verification Report, the County hereby finds and determines that the investments described in Schedule II are advantageous in yield and maturity date to provide sufficient moneys to prepay the Refunded Certificates and to comply with United States Department of the Treasury regulations adopted or applicable pursuant to the Internal Revenue Code of 1986, as amended. Section 2.03 Irrevocable Deposit; ControL The deposit in the Escrow Fund of a portion of the proceeds of the New Contract shall constitute an irrevocable deposit of such monies exclusively for the benefit of the 2009 Certificates, and such money and Federal Securities, together with any income or interest earned thereon, shall be held in trust and shall be applied solely to the payment of the principal of and interest on the 2009 Certificates as the same mature and become due on prepayment, as applicable, as set forth in Schedule 1 hereto ("Schedule f'). Subject to the requirements set forth herein for the use of the Escrow Fund and the moneys and investments therein, including, without limitation, Section 3.02, the County covenants and agrees that the Escrow Agent shall have full and complete control and authority over and with respect to the Escrow Fund and money and investments therein and that the County shall not exercise any control or authority over and with respect to the Escrow Fund and the money and investments therein. The Escrow Agent is entitled to rely conclusively on the Verification Report as to the matters set forth therein and shall not be liable to any person in any manner for such reliance. The County irrevocably directs the Trustee to call the Refunded Certificates for prepayment on June 1, 2019. Section 2.04 [Substitute Securities. Cash or other Federal Securities other than any Federal Securities listed in Schedule II may be substituted but only if such cash or Federal Securities: (1) are in an amount or mature in an amount, which together with any cash or Federal Securities substituted for the Federal Securities listed in Schedule II is equal to or greater than the amount required to pay the principal of and interest on the 2009 Certificates (as evidenced by a certificate in compliance with Section 3.02(a)); (2) mature on or before the date amounts are due on the 2009 Certificates under Schedule I; and (3) the County and the Escrow Agent receive an opmton of nationally recognized bond counsel stating that such substitution will not adversely affect the exclusion from gross income for federal income tax purposes of the interest on the 2009 Certificates or the New Contract.] ARTICLE III DUTIES OF THE ESCROW AGENT; FEES AND COSTS Section 3.01 Payments on 2009 Certificates. The Escrow Agent, without further a uthorization and direction from the County, shall pay to the Trustee, from moneys available in the Escrow Fund, on the date on which each payment of principal and interest falls due, money sufficient to 040416 HC BOC Page 98 pay the principal and interest falling due with respect to the 2009 Certificates as set forth in Schedule I hereto. Payments with respect to the 2009 Certificates are to be made from the maturing principal of and interest on the Federal Securities or other money in the Escrow Fund securing the 2009 Certificates and shall be made to the persons entitled thereto. Section 3.02 Investment of Escrow Fund. The Escrow Agent shall , upon written direction delivered to it from or on behalf of the County, purchase or cause to be purchased those Federal Securities listed in Schedule II solely from the money deposited by the County in the Escrow Fund. The Escrow Agent shall apply the money deposited in each account of the Escrow Fund and the Federal Securities, together with any income or interest earned thereon, in accordance with this Agreement. The Escrow Agent has no power or duty to invest any money held hereunder or to make substitutions of the Federal Securities held hereunder or to sell, transfer or otherwise dispose of the Federal Securities acquired hereunder except as otherwise provided herein. The Escrow Agent may, on the written request of the County, sell or redeem all or a portion of the Federal Securities held for the credit of the Escrow Fund and reinvest the required proceeds of such sale or redemption, in Federal Securities designated in such request of the County, but only on receipt by the Escrow Agent of: (a) a certificate of an independent certified public accountant or other nationally recognized verification agent delivered to the County, the Escrow Agent and the 2009 Insurer stating that after giving effect to such request the Federal Securities he ld for the credit of such account are of such maturities and interest payment dates and bear such interest as will, without further investment or reinvestment of either the principal amount thereof or the interest earnings thereon, be sufficient together with all cash and other immediately available invested funds held for the credit of such account to pay the principal of, and interest with respect to the 2009 Certificates when due and as described in this Agreement; and (b) an opinion of counsel acceptable to the County and the Escrow Agent, which must be nationally recognized bond counsel, stating that , after giving effect to such request, the 2009 Certificates are deemed defeased and that the compl iance with such request of the County will not adversely affect the exclusion from gross income for federal income tax purposes of the interest with respect to the 2009 Certificates. The liability of the Escrow Agent for the payment of the principal and interest with respect to the 2009 Certificates pursuant to this Section is limited to the cash avai lable for such purposes in the Escrow Fund. The County shall not direct the Escrow Agent to exercise any of its powers to cause any part of the money or funds at any time in the Escrow Fund to be used directly or indirectly to acquire any obligations which would cause any Refunded Certificate to be an "arbitrage bond" within the meaning of Section I 48 of the Internal Revenue Code of 1986, as amended. Section 3.03 Escrow Agent's Fees. The Escrow Agent's fees for and in carrying out the provisions of this Agreement have been fixed , which fees are to be paid by the County as they are due from funds of the County and not from fund s in the Escrow Fund. The County will bear all costs of publication and mailing of notices required by this Agreement or the 2009 Indenture. The Escrow Agent is not liable for any loss resulting from any investment made at the direction of the County pursuant to the terms and provisions of this Agreement. Section 3.04 Notices to Refunded Certificate Ow11ers. The Escrow Agent shall give notice to the owners from time to time of the 2009 Certificates in accordance with the instructions received from the County from time to time in connection with this Agreement. The Escrow Agent will cause a notice of prepayment, substantially in the form attached to this Ag reement as Exhibit A, to be mailed to the parties and in the manner set forth on Exhibit A. In addition, the Escrow Agent will cause a notice of defeasance, substantially in the form attached to this Agreement as Exhibit B, to be mailed to the parties and in the manner set forth on Exhibit B. 040416 HC BOC Page 99 ARTICLE IV GENERAL PROVISIONS Section 4.01 Escrow Fund Irrevocable. The Escrow Fund hereby created is irrevocable and the owners of the 2009 Certificates are hereby granted an express lien on the corresponding account of the Escrow Fund until applied in accordance with this Agreement. The Escrow Agent shall hold the Escrow Fund as a separate trust fund wholly segregated from all other funds and accounts held in any capacity and shall make disbursements from such accounts only in accordance with the provisions of this Agreement. The principal of and interest on the Federal Securities shall not be reinvested except as provided in Section 3.02, and the Escrow Agent shall not sell or dispose of such securities except as provided in Section 3.02. Under no circumstances shall the Escrow Agent have a lien on the Escrow Fund for its charges, fees and expenses and under no circumstances shall the Escrow Agent make any claim against the Escrow Fund for such charges, fees and expenses . Section 4.02 Report. The Escrow Agent shall deliver to the County on or before November l, 2016 and every six months thereafter a report of each transaction relating to the Escrow Fund since the last report furnished to the County pursuant to this Section. Section 4.03 Refunded Certificate Owner Rights. The Escrow Agent and the County agree that the owners of the 2009 Certificates have a beneficial and vested interest in the corresponding account of the Escrow Fund as herein provided. It is therefore recited , understood and agreed that, until the provisions hereof have been fully carried out, this Agreement (a) may be amended only to cure ambiguity or correct manifest error without the prior written consent of all of the owners of the 2009 Certificates and the 2009 Insurer and (b) is not subject to amendment for any other reason or revocation except with the prior written consent of all of the owners of the 2009 Certificates and the 2009 Insurer. Section 4.04 Deficiency. If there is any deficiency in the Escrow Fund, the County will remedy such deficiency by paying to the Escrow Agent the amount of such deficiency. The Escrow Agent is not liable for any such deficiency, except as may be caused by its negligence or misconduct or default in the performance of any obligation imposed on it hereunder. Section 4.05 Termination. This Agreement terminates when all payments of the principal and interest with respect to the 2009 Certificates required to be made to the owners of the 2009 Certificates under the provisions of the 2009 Indenture have been made. Section 4.06 Severability. If any one or more of the covenants or agreements provided in this Agreement on the part of the parties hereto to be performed are determined by a court of competent jurisdiction to be contrary to law, (a) such covenant or agreement is to be deemed and construed to be severable from the remaining covenants and agreements herein contained and in no way affect the validity of the remaining provisions of this Agreement, (b) the County shall provide notice thereof to Moody 's Investors Service at 7 World Trade Center at 250 Greenwich Street, New York, New York 10007, Attn: Public Finance Rating Desk/Refunded Certificates; to Standard & Poor 's Ratings Services, a Standard & Poor's Financial Services LLC business, at 55 Water Street, New York , New York 10041; and to Fitch Ratings , at One State Street Plaza, 31 s Floor, New York, New York, 10004. Section 4.07 Law. This Agreement is governed exclusively by the laws of the State. It inures to and is binding on the parties hereto and their respective successors and assigns. This Agreement is deemed made in Harnett County, North Carolina. The exclusive forum and venue for all actions arising out of this Agreement is the North Carolina General Court of Justice, in Harnett County. Such actions 040416 HC BOC Page 100 shall neither be commenced nor removed to federal court. This Section shall not apply to subsequent actions to enforce a judgment entered in actions heard pursuant to this Section. Section 4.08 Counterparts. This Agreement may be executed in several counterparts, all or any of which are regarded for all purposes as one original and constitute one and the same instrument. Section 4.09 Notices. Any notice or other communication to be given under this Agreement shall be in writing and may be given by certified mail (postage prepaid, return receipt requested), telegraph or personal delivery, if to the County, County of Harnett, North Carolina, I 02 E. Front Street, Lillington, North Carolina 27546, Attention: Finance Officer; and if to the Escrow Agent, to U.S. Bank National Association, 5540 Centerview Drive, Suite 200 , Raleigh, North Carolina 27606, Attention: Corporate Trust Services. Section 4.10 Covenants of County or Corporation not Covenants of Officials Individually . No covenant, stipulation, obligation or agreement contained herein shall be deemed to be a covenant, stipulation, obligation or agreement of any present or future member, director, agent, officer or employee of the County or the Local Government Commission of North Carolina in his or her individual capacity, and neither the members of the Board of Commissioners of the County, the members of the Local Government Commission of North Carolina nor any other member, director, agent, officer or employee of the County or the Local Government Commission of North Carolina is subj ect to any personal liability under this Agreement. Section 4.11 References to Fees and Expenses. Wherever this Agreement contains a reference to fees or expenses, such reference is deemed to include the word "reaso nable" as an antecedent thereto . [Signatures Begin on Following Page] 040416 HC BOC Page 101 IN WITNESS WHEREOF, the Escrow Agent and the County have caused this Agreement to be executed and attested by their duly authorized officers, as of the date first written above. U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent By: Vice President [SIGNATURES CONTINUED ON FOLLOWING PAGE] 040416 HC BOC Page 102 [COUNTERPART SIGNATURE PAGE TO THE ESCROW AGREEMENT] COUNTY OF HARNETT, NORTH CAROLINA B y: Joseph Jeffries County Manager 040416 HC BOC Page 103 SCHEDULE I PAYMENT SCHEDULE FOR 2009 CERTIFICATES DATE 06/1 /2016 12/1 /2016 06/1/2017 12/1 /2017 06/112018 12/112018 06/112019 PRINCIPAL COMPONENT INTEREST COMPONENT The Refunded Certificates are to be called on June 1, 2019 at the principal amount thereof without premium, plus accrued interest to the prepayment date. Sch I-1 040416 HC BOC Page 104 TYPE OF SECURITY SCHEDULE II FEDERAL SECURITIES MATURITY DATE PAR AMOUNT An amount equal to $[ ] has been deposited in the Escrow Fund to establish the Initial Cash Balance in the Escrow Fund and shall be held uninvested as cash. Sch II-1 INTEREST RATE 040416 HC BOC Page 105 EXHIBIT A NOTICE OF PREPAYMENT $35,075,000 Certificates of Participatio11, Series 2009 Evide1tci11g Proportio11ate U11divided l11terests ;, Rights to Receive Certain Reve~~ues pursuaflt to a11 Installmeltt Purchase Co11tract betwee11 Hamett Public Facilities Corporation a11d the County of Hamett, North Caroli11a CUSIP* MATURITY RATE PRICE AMOUNT 413328 June I , 2020 5.00% 100.000 $2,160,000 413328 June I , 2021 4.00 100.000 2,I60,000 4I3328 June I , 2022 5.00 100.000 2,I60,000 4I3328 June I , 2023 5.00 IOO.OOO 2,I60,000 4I3328 June I , 2024 4.50 IOO.OOO 2,I60,000 413328 June I, 2025 4.50 IOO.OOO 2,I60,000 4I3328 June I , 2026 4.75 100.000 2,160,000 413328 June I, 2027 5.00 100.000 2,160,000 413328 June I, 2028 5.00 100.000 2,160,000 413328 June I, 2029 5.00 100.000 2,155 ,000 Notice is hereby given by the County of Harnett, North Carolina (the "County") of its intention t o prepay on June I, 20 I 9 (the "Prepayment Date") the Certificates of Participation, Series 2009, evidencing proportionate undivided interests in rights to receive certain Revenues pursuant to an Installment Purchase Contract between Harnett County Public Faci liti es Corporation and the County maturing on and after June I , 2020 (collectively, the "Refunded Certificates") at the prepayment price (the "Prepay me nt Price") of I 00% of the principal amoun t thereof wi thout premium, plus accrued interest to the Prepayment Date. Since the Refunded Certificates are held under the book entry system , payment will be made directly to the registered holder. Federal Securities and uninvested cash sufficient to pay the Prepayment Price have been deposited with the Escrow Agent. Consequently, on the Prepayment Date, the Refunded Certificates wi ll cease to bear interest. When presenting the Refunded Certificates for payment, holders of the Refunded Certificates should provide their tax identification number (via Form W-9) to avoid withholding of 28% of the principal paid as required by Federal Tax Law. Those holders who are requ ired to provide their correct taxpayer identification number on IRS Form W -9 and who fail to do so may also be subject to an IRS penalty. Accordingly, please provide all appropriate certifications when presenting the Refunded Certificates for payment. COUNTY OF HARNETT, NORTH CAROLINA By: U.S. BANK NATIONAL ASSOCIATION, as trustee for the Refunded Certificates *The County and the Trustee shall not be responsible for the use of CUSIP numbers selected , nor is any representation made as to its correctness indicated in the notice or as printed on any certificate. It is provided solely for the convenience of th e holders. Date: [Between April 2, 2019 and May 1, 20 19] To: DTC by electronic mail to redemptionnotification@dtcc.com. LGC and Assured Guaranty Corp., by U.S. Mail; and EMMA, by posting electronically, in PDF format, to www.MSRB.org/ms rbl /c ontrol/defa ult.asp. A-1 040416 HC BOC Page 106 EXHIBIT B NOTICE OF DEFEASANCE $35,075,000 Certificates of Participation , Series 1009 Evidencing Proportionate Undivided Interests in Rights to Receive Certai11 Revenues pursuant to an brstal/ment Purchase Contract between Harnett Public Facilities Corporation and the County of Harnett, North Carolina CUSIP* MATURITY RATE PRICE AMOUNT 413328 June I , 2016 3.50% 100.000 $1,000,000 413328 June1 ,2017 4 .00 100 .000 2,160,000 413328 June I , 2018 4.00 100.000 2,160,000 413328 June I , 2019 4.00 100.000 2,160,000 413328 Jun e 1, 2020 5.00 100 .000 2,160,000 41332 8 June I , 2021 4 .00 100.000 2,160,000 413328 June I , 2022 5.00 100.000 2,160,000 413328 June 1, 2023 5.00 100 .000 2,160,000 413328 June I , 2024 4 .50 100.000 2,160,000 413328 June I , 2025 4.50 100.000 2,160,000 413328 June 1, 2026 4.75 10 0.000 2,160,000 413328 June I , 2027 5.00 100.000 2,160,000 413328 June I , 2028 5.00 100 .000 2,160,000 413328 June I , 2029 5.00 100 .000 2,155,000 NOTICE IS HEREBY GIVEN by the County of Harnett, North Carolina (the "County") tha t, pursuant to an Indenture of Trust dated as of February I, 2009 (the "Indenture"), between Harnett Public Facilities Corporation (the "Corporation") and U.S. Bank National Association, as trustee (the "Trustee"), authorizing the execution and delivery of the Certificates of Participation, Series 2009 (the "2009 Certifica tes") evidencing proportionate undivided interests in rights to receive certain Revenues pursuant to an In stallment Purchase Contract dated as of February 1, 2009 between the Corporation and the County, that there has been deposited with the undersigned ca sh and certain Federal Securities, as permitted under the Indenture, the principal of and the interest on which when due, and without reinvestment thereof, are sufficient to pay (1) the maturing principal and interest with respect to the 2009 Certificates maturing on and after June I, 2016 until June 1, 2019 (the "Prepayment Date"), and (2) I 00% of the remaining principal of the 2009 Certificates maturing on and after June 1, 2020 on the Prepayment Date, at which time the outstanding principal and interest with respect to the 2009 Certificates will be paid in full. The Trustee has received irrevocable written instructions from the Coun ty to prepay the 2009 Certificates maturing on and after June 1, 2020 on the Prepayment Date. Consequently, on the Prepayment Date, the 2009 Certificates will cease to bear interest. The 2009 Certificates are deemed to have been paid in accordance with Article VI of the 2009 Indenture. COUNTY OF HARNETT, NORTH CAROLINA By: U.S. BANK NATIONAL ASSOCIATION , as trustee for the 2009 Certificates *The County and the Trustee shall not be responsible for the use ofCUSIP numbers selected, nor is any representation made as to its correctness indicated in the notice or as printed on any certificate. It is provided solel y for the convenience of the holders. Date: [As soon as practicable after the execution and delivery of the Escrow Agreement] To: EMMA, by posting electronically, in PDF format, to www.MSRB .or g/msrb Ilcontrol/default.asp. Assured Guaranty Corp., by US Mail B -1 040416 HC BOC Page 107 PP AB 3 1872 09v I Parker Poe Draft 3/28/16 LEASE by and between COUNTY OF HARNETT, NORTH CAROLINA as Lessor and HARNETT COUNTY BOARD OF EDUCATION as Lessee Dated as of April 21, 2016 This document was prepared by: Parker Poe Adams & Bernstein LLP 301 Fayetteville Street, Suite 1400 Raleigh, North Carolina 27601 040416 HC BOC Page 108 LEASE THIS LEASE, dated as of April 21, 2016 , and entered into by and between the COUNTY OF HARNETT, NORTH CAROLINA, a political subdivision of the State of North Carolina, as lessor (the "County"), and the HARNETT COUNTY BOARD OF EDUCATION, a body corporate which has general control and supervision of all matters pertaining to the public schools in the Harnett County School Administrative Unit, its school administrative unit, and is duly organized and existing under the laws of the State of North Carolina (the "Board of Education "), WITNESSETH: WHEREAS, the County and the Board of Education ha ve determined to cooperate in a plan to refinance the cost of, among other things , the construction, equipping and furnishing of a 24-classroom and auxiliary gymnasium addition to Harnett Central High School, which it has found to be necessary and desirable to provide for improved public school facilities and improved public education in the County; and WHEREAS, as a part of such plan, the Board of Education has executed a General Warranty Deed conveying to the County the site of Harnett Central High School , as more particularly described m Exhibit A hereto (collectively, the "Site"), and the improvements thereon ; and WHEREAS, as a part of such plan, the County will enter into an Installment Financing Contract dated as of April 21, 2016 (the "Contract ") between the County and Regional Advantage Capital, Inc. providing for the refinancing of the cost of the Projects (as defined in the Contract), which included the improvements to the Site described above, and other capital expenditures of the County, including the construction and other accomplishment therein; and WHEREAS, as a part of such plan, the County and the Board of Education entered into an Agency Agreement dated as of February 1, 2009 (the "Agency Agreement ") that provided, among other matters, for the lease of the Site to the Board of Education and the construction and other accomplishment of the Projects; and WHEREAS, in connection with the refinancing of the Projects, the County proposes to lease the Site and the improvements thereon (collectively, the "Leased Property") to the Board of Education and the Board of Education has determined to lease the Leased Property from the County; NOW, THEREFORE, for and in consideration of the mutual promi ses and covenants herein contained, the parties hereto agree as follows: PP AB 3 187209v I 040416 HC BOC Page 109 ARTICLE I DEFINITIONS; RULE OF CONSTRUCTION All capitalized terms used in this Lease and not otherwise defined herein have the meanings assigned to them in the Contract, unless the context clearly requires otherwise. In addition, the following terms have the meanings specified below, unless the context clearly requires otherwise: "Board of Education Representative " means any person at the time designated, by a written certificate furni shed to the County and signed on the Board of Education's behalf by its Chairman, to act on the Board of Education's behalf for the purpose of performing any act under this Lease. "Closing Date " means the date on which the Contract takes effect. "County Representative" means any person at the time designated , by a written certificate furnished to the Board of Education and signed on the County's behalf by the Chairman of its Board of Commissioners, to act on the County 's behalf for the purpose of performing any act under this Lease. "Event of Default " means one or more event s of default as defmed in Section 12.1. "Lease " means this Lease, as it may be duly amended. "Lease Term " means the term of this Lease as determined pursuant to Article IV. "Lease Year " means, initially, from the C losing Date through December 31, 2016, and, thereafter, means the twelve-month period of each year commencing on January 1 and ending on the next December 31 . "Leased Property " means the Site, as described in Exhibit A, and the improvements thereon. All references to articles or sections are references to articles or secti ons of this Lease, unles s the context clearly indicates otherwise. ARTICLED REPRESENTATIONS, COVENANTS AND WARRANTIES The Coun ty and the Board of Education each represent , covenant and warrant for the other's benefit as follows: (a) Neither the execution and delivery of this Lease, nor the fulfillment of or compliance with its terms and conditions, nor the consummation of the transactions contemplated hereby, res ul ts or will result in a breach of the terms, conditions and provisions of any agreement or instrument to which either is now a party or by which either is bound, or constitutes a default under any of the foregoing. (b) To the knowledge of each party, there is no litigation or proceeding pending or threatened against such party (or against any other person) affecting the rights of s uch party to execute or deliver this Lease or to comply with its obligations under this Lease. Neither the execution and delivery of this Lease by such party, nor compliance by PP AB 3 187209v I 040416 HC BOC Page 110 such party with its obligations under this Lease, requires the approval of any regulatory body or any other entity the approval of which has not been obtained. ARTICLE ill DEMISING CLAUSE The County hereby leases the Leased Property to the Board of Education and the Board of Education hereby leases the Leased Property from the County, in accordance with the provisions of this Lease, to have and to hold for the Lease Term. ARTICLE IV LEASE TERM Section 4.1. Commencement. The Lease Term commences on the Closing Date. Section 4.2 Termination. The Lease Term terminates on the earlier of the following dates or events: (a) the date on which all Installment Payments due under the Contract have been paid or provided for in accordance with its terms; (b) the date of termination ofthe Contract; (c) an Event of Default and termination by the County pursuant to Article XII ; or (d) An Event of Default under the Contract. Termination of the Lease Term pursuant to subsections (c) or (d) above terminates the County 's obligations under this Lease and the Board of Education 's rights of possession under this Lease. ARTICLEV QUI ET ENJOYMENT; PURCHASE OPTION Section 5 .1 Quiet Enjoyment. The County hereby covenants that the Board of Education shall, during the Lease Term, peaceably and quietly have and hold and enjoy the Leased Property without suit, trouble or hindrance from the County, except as expressly required or permitted by this Lease. The County shall not interfere with the quiet use and enjoyment of the Leased Property during the Lease Term. The County shall , at the Board of Education 's request and the County's cost, join and cooperate fully in any legal action in which the Board of Education asserts it s right to such possession and enjoyment, or which involves the imposition of any taxes or other governmental charges on or in connection with the Leased Property. In addition, the Board of Education may at its own expense join in any lega l action affecting its possession and enjoyment of the Leased Property, and shall be joined (to the extent legally possible , and at the Board of Education's expense) in any action affecting its liabilities hereunder. 2 PPAB 3187209vl 040416 HC BOC Page 111 The provisions of this Article are subject to rights to inspect the Leased Property granted to parties under the Contract or the Indenture and to the right hereby reserved to the County to inspect the Leased Property at any reasonable time . Section 5.2 Purchase Option. The Board of Education has the option to purchase the Leased Property at the end of the Lease Term under Section 4.2(a) on payment to the County of a purchase option price of $100. The Board of Education shall notify the County that it intends to exercise this option after the end of the Lease Term, and within 45 days after such notification the County shall execute and deliver to the Board of Education a quit-claim deed with a covenant against grantor's acts together with such other documents as are necessary to convey to the Board of Education good and marketable title to the Leased Property , subject only to (a) Permitted Encumbrances and (b) any encumbrance or imperfection caused by or attributable to the Board of Education. ARTICLE VI CONSIDERATI ON FOR LEASE Section 6.1 Use of Leased Property; Assumption of Obligations. In partial consideration for its acquisition of rights to use the Leased Property during the Lease Term and its option to purchase the Leased Property, the Board of Education hereby agrees to use the Leased Property for public schools or other public education purposes in fulfillment of its obligation, shared by the County, to provide for improved public education in the County. In addition, in consideration of its rights under this Lease, the Board of Education undertakes the obligations imposed on it hereunder, including those imposed by Section 8.1. Section 6.2 Payments. In partial consideration for its acqui sition of rights to use the Leased Property during the Lease Term and its option to purchase the Leased Property, the Board of Education hereby agrees to pay to the County annual rent in the amount of $100 payable in advance on the Closing Date (receipt of which is hereby acknowledged) and on the first day of each Lease Year thereafter. ARTICLE VII CONSTRUCTI ON AND OTHER ACCOMPLISHMENT OF PROJECTS AND CERTAIN RELATED COVENANTS Section 7.1 Construction and Other Accomplishment of Projects. The County has provided in the Agency Agreement for the construction and other accomplishment of the Projects by the Board of Education as the County's agent. The Board of Education represents that it has reviewed all provisions concerning the construction and other accomplishment of the Projects in the Contract and hereby approves such provisions. The Board of Education shall take possession of the Leased Property on the date of delivery of this Lease. Title to the Leased Property shall be held by the County, subject only to Permitted Encumbrances. Section 7.2 Maintenance, Repair, Taxes and Assessments. (a) Maintenance; R epair. The Board of Education shall use, or cause to be used, the Leased Property in a careful and proper manner, in compliance with all applicable Jaws and regulations, and, at its sole expense, shall service, repair, maintain and insure, or cause to be serviced, repaired , maintained 3 PPAB 3 187209 v l 040416 HC BOC Page 112 and insured, the Leased Property so as to keep the Leased Property in good condition, repair, appearance and working order for the purposes intended, ordinary wear and tear excepted. (b) Taxes and Assessments. The Board of Education shall also pay, or cause to be paid, all taxes and assessments, including, but not limited to , utility charges, of any type or nature levied, assessed or charged against any portion of the Leased Property, provided that with respect to special assessments or other governmental charges that may lawfully be paid in installments over a period of years, the Board of Education shall be obligated to pay only such installments as are required to be paid as and when the same become due. (c) Contests. The Board of Education may, at its sole expense and in its name, in good faith contest any such taxes, assessments, utility and other charges and, if any such contest occurs, may permit the taxes, assessments or other charges so contested to remain unpaid during the period of such contest and any appeal therefrom, but before such nonpayment it shall furnish the County with the opinion of a counsel acceptable to the County, to the effect that, by nonpayment of any such items, the interest of the County in the Leased Property will not be materially endangered and that the Leased Property will not be subject to loss or forfeiture. The County will cooperate fully in such contest on the request and at the expense of the Board ofEducation. Section 7.3 Modification of Leased Property, Liens. (a) Additions, Modifications and Improvements. The Board of Education shall, at its own expense, have the right to make, or cause to be made, additions, modifications and improvements to any portion of the Leased Property if such additions, modifications or improvements are necessary or beneficial for the use of such portion of the Leased Property. AJI such additions, modifications and improvements shall thereafter comprise part of the Leased Property and be subject to the provisions of this Lease. Such additions, modifications and improvements shall not in any way damage any portion of the Leased Property or cause it to be used for purposes other than those authorized under the provisions of State and federal law or in any way which wou ld cause the interest components of the Installment Payments to be includable in gross income for purposes of federal income taxation under Section 103 of the Internal Revenue Code of 1986, as amended. (b) Liens. The Board of Education will not permit any mechanic's o r other lien to be established or remain against the Leased Property for labor or materials furnished in connection with any additions, modifications or improvements made by the Board of Education under this Section, but if any such lien is filed or established and the Board of Education first notifies, or causes to be notified, the County of the Board of Education 's intention to do so , the Board of Education may in good faith contest any lien filed or establi shed against the Leased Property and in such event may permit the items so contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom and shall provide the County with full security against any loss or forfeiture which might arise from the nonpayment of any such item, in form satisfactory to the County. The County will cooperate fully in any such contest on the request and at the expense of the Board of Education. Except as provided in this Article and except as the County may consent thereto, which consent shall not be unreasonably withheld, the Board of Education shall not, directly or indirectly, create, incur, assume or suffer to exist any mortgage, pledge, lien, charge, encumbrance or claim on or with respect to the Leased Property, other than the respective rights of the Board of Education and the County as herein provided. Except as provided in this Article, the Board of Education shall promptly, at its own expense, take such action as may be necessary to duly discharge or remove any such mortgage , pledge, lien, charge, encumbrance or claim for which it is responsible, if the same shall arise at any time; provided that the Board of Education may co nte st such liens, charges, encumbrances, or claims if it desires to do so. 4 PPAB 3 187209 v l 040416 HC BOC Page 113 The Board of Education sha ll reimburse the County for any expense incurred by the County in order to discharge or remove any such mortgage, pledge, lien , charge, encumbrance or claim. ARTICLE VIII BOARD OF EDUCATION'S ASSUMPTION OF COUNTY'S OBLIGATIONS Section 8.1 Assumption of Obligations. The Board of Education hereby assumes all the Co unty 's obligations under the Contract regarding the maintenance of general liability insurance with respect to the Leased Property. It is expressly understood that the Board of Education does not assume the Co unty's obligation under the Contract to pay the In sta llment Payments and that the Board of Education does not indemnify the County or any other party to the Contract for third-party claims asserted against any party to the Contract relating to the payment of the Installment Payments. Section 8.2 Transfer of Obligations. The Board of Education shall carry out the County's obligations under the Contract with respect to the construction of the Projects. Section 8.3 Board of Education's General Covenant. The Board of Ed ucation further undertakes not to take or omit to take any action the taking or omission of which would cause the County to be in default in any manner under the Contract. In particular, the Board of Education covenants not to make any use of the Leased Property that would cause the County 's obligations to make Installment Payments under the Contract to be "private activity bond s" within the meaning of the Internal Revenue Code of 1986, as amended. If the Board of Education takes or omits to take any such action, then the Board of Education shall proceed with all due diligence to take such action as may be necessary to cure such default. Section 8.4 County's Cooperation . The Co unty shall cooperate fully with the Board of Educa tion in filing any proof of Jo ss or taking any other action under this Lease. Neither the County nor the Board of Education may vol untarily sett le, or consent to the settlement of, any proceeding arising out of any insurance claim with respect to the Leased Property without the other's written consent. Section 8.5 Advances; Petformance of Obligations. If the Board of Education fails to pay any amount required to be paid by it under this Lease , or fails to take any other action required of it under thi s Lease, then the County may (but is under no obligation to) pay such amount or perform such other obligation. The Board of Education agrees to reimburse the County for any such payment or for its costs incurred in connection with performing such other ob li ga tion . ARTICLE IX DISCLAIMER OF WARRANTIES; OTHER COVENANTS Section 9.1 Disclaimer of Warranties . TH E COUNTY MAKES NO WARRA NTY OR REPRESENTATION, EITHER EXP RESS OR IMPLIED , AS TO THE VALUE, DESIGN, CONDITION, MERCHANTABILITY OR FITNESS FOR A PARTI CU LAR PURPOSE OR FITNESS FOR A PARTICULAR USE OF THE LEASED PROPERTY OR ANY PART THEREOF OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE L EASE D PROPERTY OR ANY PART THEREOF. The County is not liable for any direct or indirect , incidental, special or consequential damage in connection with or arising out of this Lease or the existence , furnishing , functioning or use by anyone of any item , product or service provided for herein. 5 PPAB 3187209vl 040416 HC BOC Page 114 Section 9 .2 Further Assurances; Corrective Instruments . The Board of Education and the County agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements hereto and such further instruments as may reasonably be required for correcting any inadequate or incorrect description of the Leased Property hereby leased or intended so to be, or for otherwise carrying out the intention hereof. Section 9.3 Board of Education and County Representatives. Whenever under the provisions hereof the approval of the Board of Education or the County is required to take some action at the request of the other, unless otherwise provided, such approval or such request is to be given for the Board of Education by the Board of Education Representative and for the County by the County Representative, and the Board of Education and the County are authorized to act on any such approval or request of s uch representative of the other. Section 9.4 Compliance with Requirements. During the Lease Term, the Board of Education and the County shall observe and comply promptly with all current and future orders of all courts having jurisdiction over the Leased Property or any portion thereof (or be diligently and in good faith contesting such orders), and all current and future requirements of all insurance companies' written policies covering the Leased Property or any portion thereof. ARTICLE X TITLE TO LEASED PROPERTY; LIMITATIONS ON ENCUMBRANCES Except for personal property purchased by the Board of Education at its own expense, title to the Leased Property and any and all additions and modifications to or replacements of any portion of the Leased Property shall be held in the County's name, subject only to Permitted Encumbrances, until conveyed as provided in this Lease, notwithstanding (a) the occurrence of one or more events of default as defined in Section 9 .I of the Contract; (b) the occurrence of any event of damage, destruction, condemnation or construction or title defect; or (c) the violation by the County of any provision of this Lease. The Board of Education has no right, title or interest in the Leased Property or any a dditions and modifications to or replacements of any portion of the Leased Property, except as expressly set forth in this Lease. ARTICLE XI SUBLEASING AND INDEMNIFICATION Section 11.1 Board of Education's Subleasing. The Board of Education may not assign or sublease the Leased Property, in whole or in part, without the prior written consent of the County, which consent shall not be unreasonably withheld . Section 11 .2 Indemnification. Except as provided in Section 8 .1, to the extent permitted by law, the Board of Education agrees to indemnify and save the County harmless against and from all claims by or on behalf of any person, firm, corporation or other legal entity arising from the operation or management of the Leased Property by the Board of Education during the Lease Term, including any claims arising from : (a) any condition of the Leased Property, (b) any act of negligence of the Board of Education or of any of its agents, contractors or employees or any violation of law by the Board of 6 PPAB 3 187209v 1 040416 HC BOC Page 115 Education or breach of any covenant or warranty by the Board of Education hereunder; or (c) the incurrence of any cost or expense in connection with the constructi on and other accomplishment of the Projects in excess of the moneys available therefor in the Acquisition and Construction Fund. The Board of Education shall be notified promptly by the County of any action or proceeding brought in connection with any claims arising out of circ umstances described in (a), (b) or (c) above. ARTICLE XII EVENTS OF DEFAULT Section 12.1 Events of Default. Each of the following is an "Event of Default" under this Lease and the term "Default " means, whenever it is used in this Lease, any one or more of the following events: (a) The Board of Education 's failure to make any payments hereunder when due. (b) The Board of Education 's failure to observe and perform any covenant, condition or agreement on its part to be observed or performed for a period of 30 days after written notice specifying such failure and requesting that it be remedied has been given to the Board of Education by the County, unless the County agrees in writing to an extension of such time before its expiration; but if the failure stated in such notice cannot be correc ted within the applicable period, the County shall not unreasonably withhold its consent to an extension of such time if corrective act ion is instituted by the Board of Education within the applicable period and diligently pursued until such failure is corrected and, further, if by reason of any event or occurrence constituting force majeure the Board of Education is unable in who le or in part to carry out any of its agreements contained herein (other than its obligations contained in Sections 6.2 or 8.1 ), the Board of Education sha ll not be deemed in default during the continuance of such event or occurrence. (c) The dissolution or liquidation of the Board of Educati on or the voluntary initiation by the Board of Education of any proceeding under any federal or state law relating to bankruptcy, insolvency, arrangement, reorganization, readjustment of debt or any other form of debtor rel ief, or the initiation against the Board of Educati on of any such proceeding which shall remain undismissed for 60 days, or the entry by the Board of Education into an agreement of composition with creditors or the Board of Education 's failure genera ll y to pay its debts as they become due. (d) An Event of Default under the Contract. Section 12.2 Remedies on Default. Whenever any Event of Default has happened and is continuing, the County may take one or any combination of the fo llowing rem edial steps: (a) Terminate this Lease, evict the Board of Education from the Leased Property or any portion thereof and re-lease the Leased Property or any portion thereof. (b) Have reasonable access to and inspect, examine and make copies of the Board of Education 's books and records and accounts during the Board of Ed ucation 's regular business hours , if reasonably necessary in the County's opinion . 7 PP AB 3 1872 09 v I 040416 HC BOC Page 116 (c) Take whatever action at Jaw or in equity may appear necessary or desirable, including the appointment of a receiver, to collect the amounts then due, or to enforce performance and observance of any obligation, agreement or covenant of the Board of Education under this Lease. Any amount collected pursuant to action taken under this Section shall be applied as the County may determine. Section 12.3 No Remedy Exclusive. No remedy herein conferred on or reserved to the County is intended to be exclusive, and every such remedy is cumulative and in addition to every other remedy given hereunder and every remedy now or hereafter existing at Jaw or in equity. No delay or omission to exercise any right or power accruing on any default impairs any such right or power, and any such right and power may be exercised from t ime to time as may be deemed expedient. In order to entitle the County to exercise any remedy reserved in this Article XII, it is not necessary to give any notice, other than such notice as may be required in this Article XII . Section 12.4 Waivers. If any agreement contained herein is breached by either party and thereafter waived by the other party , such waiver is limited t o the particular breach so waived and will not be deemed to waive any other breach hereunder. Section 12.5 Waiver of Appraisement, Valuation, Stay, Extension and Redemption Laws. The Board of Education and County agree, to the extent permitted by law, that in th e case of a termination of the Lease Term by reason of an Event of Default, neither the Board of Education nor the County nor any one claiming through or under either of them shall or will set up, claim or seek to take advantage of any appraisement, valuation, stay, extension or redemption laws now or hereafter in force in order to prevent or hinder the enforcement of any remedy provided hereunder; and the Board of Education and the County, for themselves and all who may at any time claim through or under either of them , each hereby waives, to the full extent that it may lawfully do so, the benefit of s uch laws. ARTICLEXID MISCELLANEOUS Section 13 .1 Notices. All notices , certificates or other communications hereunder are sufficiently given if given by United States mail in certified form, postage prepaid, and will be deemed to have been received five Business Days (as defined in the Indenture) after deposit in the United States mail in certified form, postage prepaid, as follows: (a) If intended for the County, addressed to it at the fo ll owing address: PP AB 3 187209 v I County of Harnett, North Carolina 102 East Front Street Lillington, NC 27546 Attention: County Manager 8 040416 HC BOC Page 117 (b) If intended for the Board of Education, addressed to it at the following address: Harnett County Board of Education 1 008 11th Street Lillington, NC 27546 Attention: Chairman Section 13.2 Binding Effect. This Lease is binding on and inures to the benefit of the Board of Education and the County, subject, however, to the limitations contained in Article XI. Section 13.3 Net Lease. This Lease is a "net lease," and the Board of Education shall pay absolutely net during the Lease Term all other payments required hereunder, free of any deductions, and without abatement or setoff. Section 13.4 Payments Due on Holidays. If the date for making any payment or the last day for performance of any act or the exercising of any right, as provided in this Lease, is not a Business Day, such payment may be made or act performed or right exercised on the next preceding day that is a Business Day with the same force and effect as if done on the nominal date provided in this Lease. Section 13.5 Severability. If any provision of this Lease, other than the requirement of the County to provide quiet enjoyment of the Leased Property, is held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. Section 13.6 Execution in Counterparts . This Lease may be simu ltaneou sly executed in several counterparts, each of which is an original and all of which constitute but one and the same instrument. Section 13 .7 Applicable Law. This Lease is governed by and to be construed in accordance with the law s of the State ofNorth Carolina. Section 13.8 Captions. The captions or headings herein are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sect ions of thi s Lease. Section 13.9 Memorandum of Lease. The County and the Board of Education shall, on or before the Closing Date, file this Lease or a memorandum of this Lease legally sufficient to comply with the relevant provisions of the North Carolina General Statutes with the Harnett County Register of Deeds. [Signatures Begin on Following Page] 9 PPAB 3187209vl 040416 HC BOC Page 118 IN WITNESS WHEREOF, the parties hereto have caused this Lease to be executed in their corporate names by their duly authorized officers, all as of the day and year first above written. COUNTY OF HARNETT, NORTH CAROLINA By: [SEAL] Chairman, Board of Commissioners HARNETT COUNTY BOARD OF EOUCA TION [SEAL] By: Chair 10 PP AB 3 187209 v I 040416 HC BOC Page 119 STATE OF NORTH CAROLINA ) ) COUNTY OF HARNETT ) I, a Notary Public of the County and State aforesaid, certify that (the "Signatory'1 personally came before me this day and acknowledged that she is th e Clerk to the Board of Commissioners for the County of Harnett, North Carolina and that by authority duly given and as the act of said County, the foregoing instrument was signed in its name by the Chairman of the Board of Commissioners of the County of Harnett, North Carolina and attested by her as Clerk to said Board of Commissioners. I certify that the Signatory personally appeared before me thi s day, and (check one of the following) ___ (I have personal knowledge of the identity of the Signatory); or ___ (I have seen satisfactory evidence of the Signatory 's identity, by a current state or federal identification with the Signatory's photograph in the form of: (check one of th e following) a driver's license or in the form of ; or ___ (a credible witness has sworn to the identity of the Signatory). The Signatory acknowledged to me that she voluntarily signed the foregoing document for the purpose stated there in and in the capacity indicated. Witness my hand and official stamp or seal, this the ___ day of Apri l, 2016. Notary Public Print: Name: __________________ _ [Note: Notary Public must sign exactly as on notary s eal} My Commission Expires: _____________ _ ~[NOTARY SEAL] (MUST BE FULLY LEGffiLE) 11 PPAB 3 1872 09vl 040416 HC BOC Page 120 STATE OF NORTH CAROLINA ) ) COUNTY OF HARNETT ) I, a Notary Public of the County and State aforesaid, certify that (the "Signatory '1 personally came before me this day and acknowledged that he is the Secretary of the Harnett County Board of Education and that by authority duly given and as the act of said Board of Education, the foregoing instrument was signed in its name by the Chair of said Board of Education and attested by him as Secretary of said Board of Education. I certify that the Signatory personally appeared before me this day, and (check one of th e following) ___ (I have personal knowledge of the identity ofthe Signatory); or ___ (I have seen satisfactory evidence of the Signatory's identity, by a current state or federal identification with the Signatory 's photograph in the form of: (check one of the following) a driver's license or in the form of ; or ___ (a credible witness has sworn to the identity of the Signatory). The Signatory acknowledged to me that he voluntarily signed the foregoing document for the purpose stated therein and in the capacity indicated. Witness my hand and official stamp or seal, this the ___ day of April , 2016. Notary Public Print: Name: __________________ _ [Note: Notary Public must sign exactly as on notary s eal} My Commission Expires: _____________ _ ""i) [NOTARY SEAL] (MUST BE FULLY LEGffiLE) 12 PPAB 3 187209v l 040416 HC BOC Page 121 EXHIDIT A LEGAL DESCRIPTION OF THE SITE Lying and being situ ate in Harnett County, North Carolina, and being more particularly described as follows: Harnett Central High School: Composed of: Tract 1 PIN 0662-53-2915.000 and Tract 3 PIN 0662-53-5058.000 BEING ALL of Tract I (35 .05 acres) and Tract 3 (13 .54 acres) as shown on that map of the Harnett Central High School dated January 23 , 2009, by Thomas J. Gooden , PLS, which is recorded in Map No. 2009-82, Harnett County Registry. 13 PP AB 3 1872 09 v I 040416 HC BOC Page 122 Board Meeting Agenda Item Agenda Item L{-£ M EETING DATE: April 4, 2016 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Approval of EMS Assistant Medical Director Contract REQUESTED BY: Jimmy Riddle, Emergency Services Director REQUEST: Harnett County Emergency Services requests approval of the EMS Assistant Medical Director contract between County of Harnett and Gregory Michael Christiansen, M.D. as the EMS Assistant Medical Director. FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: P :\BOC\agendaform20 16 .doc P age I of I 040416 HC BOC Page 123 NORTH CAROLINA HARNETT COUNTY CONTRACTFORHARNETTCOUNTYEMERGENCY MEDICAL SERVICES ASSIST ANT MEDICAL DIRECTOR TillS CONTRACT is made and entered into this _ day of 2016, by and between COUNTY OF HARNETT, a body politic, organized and existing under the laws of the State ofNorth Carolina (hereinafter referred to as "County") and GREGORY MICHAEL CHRISTIANSEN, M.D., a physician duly licensed to practice medicine by the State ofNorth Carolina, (hereinafter referred to as "Physician"). WITNESSETH: WHEREAS, through its Department of Emergency Medical Services, County operates an emergency medical services system (hereinafter referred to as "County EMS System") for the benefit and general welfare of its citizens; and WHEREAS, the provision of these emergency medical services is regulated by the State ofNorth Carolina through the regulations promulgated by the North Carolina Department of Health and Human Services, Division of Health Service Regulation, and set out in Subchapter P of Chapter 13 of Title I OA of the North Carolina Administrative Code; and WHEREAS, 1 OA NCAC 13P.0401 requires that the County appoint, either directly or by documented delegation, a Medical Director to provide medical overs ight to the County EMS System; and WHEREAS, County desires to appoint Physician to the role of Ass istant Medical Director for the County EMS System ; and WHEREAS, Physician is duly licensed to practice medicine by the State of North Carolina and is qualified and willing to assume the role of Assistant Medical Director for the County EMS System, more fully set forth in thi s Contract; NOW THEREFORE, the parties have mutually agreed to the terms and conditions of this Contract as follows: Section 1. APPOINTMENT AND TERM Execution of this Contract shall formalize the appointment of Physician as Assistant Medical Director for County's EMS System, and the acceptance of those duties by Physician for a term that shall commence on ---------~ 2016 . This appointment and Contract shall continue until terminated by either parties giving 90 days written notice of termination to the other, subject to such modifications as the parties may agree to in writing at any time. In the event of such termination, any payment due shall be prorated to the date of termination. If either party defaults in its obligations and fails to cure such default within l 0 days of receipt of notice of such default, the non-defaulting party may immediately terminate this Contract. 1 040416 HC BOC Page 124 Section 2. GOVERNING LAW 2.1. This Contract is made and shall be construed in accordance with the laws of the State ofNorth Carolina, and the jurisdiction of any legal proceedings related thereto shall lie in Harnett County Superior Court. 2.2. This Contract is specifically authorized and executed as a continuing contract in accordance with the provisions of§ l53A-13 of the North Carolina General Statutes. 2.3. Physician shall perform all duties and services under this Contract in full compliance with any applicable federal , state, and local laws, rules, and regulations. Both parties to this Contract shall adhere to local, state, and federal legal requirements, including those regarding claim submission for third party payors, and those regarding the confidentiality of protected health information. The parties to this Contract may enter into other contracts or agreements stipulating the specific arrangements for achieving this compliance, including a Business Associate Agreement. Section 3. DUTIES AND RESPONSIBILITIES OF PHYSICIAN In his capacity as Assistant Medical Director for the County EMS System, Physician shall do, provide, and perform as follows: 3.1. Maintain the qualifications and complete and maintain the initial and continuing medical education requirements for an Assistant Medical Director of an EMS system as established by the North Carolina College of Emergency Physicians. 3.2. Pursuant to 1 OA NCAC 13P.0403(a) and other OEMS rules , regulations, policies, guidelines, etc. be responsible for the following: 3.2.1. Ensuring that medical control is available 24 hours a day, including being available by telephone 24 hours a day ; 3.2.2. Establishing, approving, and annually updating treatment protocols in conjunction with the Director ofthe County's Department of Emergency Medical Services (hereinafter re ferred to as "Director"); 3.2.3. Providing medical supervision of the selection, initial education, system orientation, continuing education, and performance of all EMS personnel ; 3.2.4 . Providing medical supervision ofthe scope of practice performance evaluation for all EMS personnel in the County EMS System based on treatment protocols for said System; 3.2.5. Providing medical review of the care provided to patients in traditional and non-traditional practice settings; 3.2.6. Providing guidance regarding decisions about equipment, medical supplies, and medications that will be carried on ambulances, EMS non-transporting vehicles, and non-traditional practice settings within the scope of practice of Emergency Medical Technician -Intermediates (hereinafter referred to as "EMT -l's") or Emergency Medical Technician -Paramedics (hereinafter referred to as "EMT-P's"); 3.2.7. Ensuring the care provided in all County EMS System settings is up to date with accepted medical practice and procedures; 2 040416 HC BOC Page 125 3.2.8. Overseeing Emergency Medical Dispatcher (hereinafter referred to as "EMD") programs and the establishment, approval, and annual updating of an emergency medical dispatch priority reference system; 3.2.9. Reviewing data about the County EMS System and trends through interpretation of said data; 3.2.10. Providing medical direction for the County EMS System, including Medical and First Res ponders, Basic Life Support, Advanced Life Support, special events coverage, as well as providing directio n to any agency providing emergency services in the County; 3.2.11. Providing medical oversight, guidance, and leadership for medical is sues and responses for ftre and law enforcement partners in the County; 3.2.12. Prov iding medical treatment su pervision of personnel by randomly responding to emergency calls and observing the approach, demeanor, relationships, and medical treatment provided to patients and others by all responding personnel , including Medical and First Responders, fire , law enforcement, rescue, County EMS System personnel ; 3.2.13. Relating to all patients and staff of the County in a professional manner; and 3.2.14. Other duties as may be requested and necessary in assuring a quality County EMS System. 3.3. Pursuant to lOA NCAC 13P.0403(b), any tasks identified in Paragraph 3.2 ofthis Contract may be completed, through written delegation , by assisting physicians, physician assistants, nurse practitioners, registered nurses , EMD's, or EMT-P's. 3.4. Pursuant to 1 OA NCAC 13P.0403(c), Physician may s uspend tempo rarily, pending due process review, any EMS personnel from further participation in the County EMS System when it is determined that the activities or medical care rendered by suc h personnel may be detrimental to the care of a patient, constitute unprofessional behavior, or result in non-compliance with credentialing requirements. 3 .5. Phys ician will schedule and maintain regular office hours, or otherwise make himself available at reg ularly designated times, for consultation with appropriate staff from the County's Department of Emergency Medical Services, with the day and time of s uch meetings to be at the discretion of Physician to accommodate his schedule. 3.6. Physician (or his designee) will participate in the quarterly Harnett County EMS System Peer Review meetings . 3.7. Physician shall ma intain all necessary professional registrations and licensures, and shall provide evidence of such to County upon request; Section 4. FEE FOR PHYSICIAN'S SERVICES For Physician 's services under this Contract, County shall pay Physician the sum of$1 ,000.00 per month and the sum of$ I 00.00 pe r hour for each hour spent in undertaking the duties and responsibilities herein outlined. Such sums shall be paid to Physician on or before the 1Oth day of each month . The parties acknowledge and agree that the compensation set forth in this Contract is reasonable and represents the fair market value of the services to be provided. Further, the parties acknowledge and agree that they nego tiated this Contract at arm 's length , and did not take into account the vo lum e or value of referrals or other bu siness that may be gene rate d between the parties. 3 040416 HC BOC Page 126 Section 5. COMMUNICATIONS BETWEEN THE PARTIES Physician shall confer with the Director regarding all matters arising out of or concerning this Contract. Physician shall receive any instructions from the Director and Physician shall communicate any complaints about any matters arising out of this Contract directly to the Director. Section 6. INDEPENDENT CONTRACTOR Physician 's legal relationship with County shall at all times be that of an independent contractor. In performing services under this Contract, Physician shall exercise his sole discretion and independent, professional judgement. Nothing in this Contract shall be construed to create the relationship of principal and agent, or employer and employee, between County and Physician. Section 7. INSURANCE County shall provide and maintain its own medical malpractice and general liability insurance coverage in such amounts as County deems adequate to satisfy any claims against Physician which may rise out of his performance under this Contract. Said insurance coverage shall be stated in a Certificate oflnsurance or other written evidence of insurance submitted to Physician by County at the commencement ofthis Contract and otherwise upon request. County shall maintain general liability with/and/or errors and omissions coverage for those acts or omissions of Physician in his capacity as Assistant Medical Director that are not instances of medical malpractice. County shall not hold Physician harmless nor indemnify Physician for any claims arising out of Physician's performance under this Contract, except to the extent that such claims are covered by any policy of liability insurance maintained by County. Section 8. NOTICES Any notice of intent to terminate this Contract, or of a request to modify or clarify this Contract shall be made in writing and mailed by certified mail , return receipt requested, to the other party at its address as set out below, or as may be provided to the other party at any time hereafter. County Harnett County EMS Division Post Office Box 3 70 Lillington, North Carolina 27546 Physician Gregory Michael Christiansen, M.D. 4207 Praline Road Holly Springs, North Carolina 27540 Section 9. CONFIDENTIAL INFORMATION Physician acknowledges and agrees that any information received by him which concerns the personal, financial , or other affairs of patients served by the County EMS System shall be treated by Physician in full confidence and shall not be revealed to any other persons, firms , or organizations, except in accordance with accepted medical practice and state and federal law regardin g the confidentiality of such information. 4 040416 HC BOC Page 127 Section 10. NON-APPROPRIATION No provision of this Contract shall be construed or interpreted as creating delegation of governmental powers, or as a donation by a lending of the credit of County within the meaning of the Constitution ofthe State ofNorth Carolina. This Contract shall not directly, indirectly, or contingently obligate County to make any payments beyond those appropriated in the sole discretion of County for any fiscal year in which this Contract shall be in effect. No deficiency judgment may be rendered against County in any action for breach of a contractual obligation under this Contract, and the taxing power of County may not be pledged directly, indirectly, or contingently to secure any monies due under this Contract. Section 11. ENTIRE AGREEMENT This Contract constitutes the entire agreement between the parties, and shall not be altered, amended or modified, except by an agreement in writing executed by the duly authorized officials of both parties. IN TESTIMONY WHEREOF County and Physician each caused this Contract to be executed in duplicate originals, one of which is retained by each ofthe parties. HARNETT COUNTY Jim Burgin, Chairman Harnett County Board of Commissioners Attest Margaret Regina Wheeler, Clerk to the Harnett County Board of Commissioners Gregory Michael Christiansen, M.D. 5 040416 HC BOC Page 128 This instrument has been pre-audited in the manner required by the Local Government Budget and Fiscal Control Act 6 040416 HC BOC Page 129 Board Meeting Agenda Item Agenda Item 4-G MEETING DATE: April 4, 2016 TO : HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Benhaven Emergency Services request approval to purchase fire truck (Tanker). REQUESTED BY: Jimmy Riddle, Emergency Services Director REQUEST: Benhaven Emergency Servcies is requesting approval to purchase a fire truck (Tanker) not to exceed $250,000. Truck to be financed . Research has been done for the best possible financing options for the Benhaven Emergency Services Department and the tax payers. FINANCE OFFICER'S RECOMMENDATION: r COUNTY MANAGER'S RECOMMENDATION: U:\agend aforrn20 16 -Benh aven ES Fire Truck (Tanker). d oc I of2 Pa ge 040416 HC BOC Page 130 .. March 14,2016 Mr. Jimmy Riddle, Director Harnett County Emergency Services 1 005 Edwards Brother Dr. Lillington, NC 27546 Dear Mr. Riddle, As you are aware Benhaven Emergency Services, Inc. has been approved through the budget process to purchase a fire truck (Tanker). We have researched the best possible financing options for our department and the tax payers which is the use of tax exempt funds through PNC. We are requesting the County to approve a Resolution Authorizing and Approving the Delivery of an Installment Financing Agreement by Benhaven Emergency Services, Inc. and the Tax-Exempt Loan Related Thereto. Such agreement will provide for a loan to the borrower in an aggregate principal amount not to exceed $250,000, the interest on which will be excludible from gross income for federal income tax purposes, to pay the cost of acquiring a fire truck and certain related equipment and , if applicable, to pay certain expenses incurred in connection with the delivery of the Agreement. Thank you for your assistance in our request for the Resolution. Respectfully, /----:;, // · ~(.(·Y?Jc)J ,t'~- Andy Thomas District Chief Benhaven Emergency Services P. 0. Box 301 " Olivia, NC 28368 4023 NC HWY. 87 N. o Sanford , NC 27332 o Phone: 919-499 -9511 • Fax: 919-498-0188 040416 HC BOC Page 131 Board Meeting Agenda Item Agenda Item ~ MEETING DATE: Apr_t I J.fJ aol? TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Vehicle Use Policy REQUESTED BY: Angela McLamb, Risk Management and Safety Coordinator REQUEST: Request approval ofthe Vehicle Use Policy COUNTY MANAGER'S RECOMMENDATION: C :\Users \gw heeler\AppData\Local\M icro soft\ Windows\ Temporary Intern et Fil es\Content.Outl ook\98RKKOE5\20 16 2016 (2009) COPS Bank Award.doc Page 1 of I 040416 HC BOC Page 132 Harnett COUNTY f. C) I"' I '). l '.t HUMAN RESOURCES POLICY Title : I Vehicle Use Polic~ I 1 Policy#: I VUP 9-15 I Adopted Date of Last Date: Review: 1 0-19- 98 Table of Contents PURPOSE .................................................................................................................................................. 2 NO PRIVATE USE ...................................................................................................................................... 2 WITHHOLDING REQUIREMENTS FOR COMMUTERS ........................................................................... 3 DRIVER QUALIFICATIONS ....................................................................................................................... 3 DRIVERS' LICENSE ................................................................................................................................... 4 MAINTENANCE AND REPAIR ................................................................................................................... 4 REGISTRATION , TITLE AND TAGS ......................................................................................................... 6 RECALLS AND WARRANTY WORK ......................................................................................................... 6 VEHICLE OPERATORS & ASSIGNED CUSTODIANS ............................................................................. 6 ALCOHOL, DRUGS, TOBACCO AND FIREARMS PROHIBITED ............................................................ 6 PERSONAL VEHICLES USED ON COUNTY BUSINESS ........................................................................ 7 APPEARANCE ........................................................................................................................................... 7 TRAFFIC VIOLATIONS, INCIDENTS AND ACCIDENTS .......................................................................... 7 VEHICLE INSPECTION CHECKLIST ........................................................................................................ 8 GAS STATIONS ......................................................................................................................................... 8 PASSENGERS ........................................................................................................................................... 8 CELL PHONE ............................................................................................................................................. 8 DEFENSIVE DRIVING TRAINING ............................................................................................................. 8 APPENDIX A .......................................................................................................................................................... 9 APPENDIX B ........................................................................................................................................................ 10 APPENDIX C ........................................................................................................................................................ 14 040416 HC BOC Page 133 PURPOSE Providing safe working conditions is essential to protecting the employees and assets of Harnett County ("County"). For the safety of County employees and the public, the County seeks to allow only employees with a safe driving history to operate County vehicles . The term "County vehicles" shall include all vehicles owned , leased or rented by the County . The purpose of the Vehicle Use Policy shall be to establish a policy on the use of County vehicles to ensure proper preventive maintenance procedures are being followed , that repairs are being handled correctly and cost efficiently, and that vehicles are being utilized correctly . The Vehicle Use Policy also addresses County employees' use of personal vehicles while conducting County business. The Board of County Commissioners delegates to the County Manager the authority to deviate from this Policy as the Manager deems necessary to serve the best interests of the County. In addition , use of Sheriff's vehicles for law enforcement activities shall be at the discretion of the Harnett County Sheriff. Any such deviation from this Policy or discretionary use of vehicles must, however, comply with applicable law. Violation of the Vehicle Use Policy is subject to disciplinary action . NO PRIVATE USE The use of a County vehicle is governed by North Carolina General Statutes , the Internal Revenue Code and County policies. General Statute 14-247 states that "It shall be unlawful for any officer, agent or employee ... of a county ... to use for any private purpose whatsoever any motor vehicle of any type or description whatsoever belonging to ... any county ... " As this statute explains , "It is not a private purpose to drive a permanently assigned state-owned [County owned] motor vehicle between one 's official workstation and one 's home ... " Harnett County may assign employees the use of vehicles for commuting purposes , between work and home, when it is necessary for the performance of duties related to the delivery of essential services. The Department Head must approve the commuting arrangement and obtain the County Manager's approval before an assigned vehicle may be taken home. County employees who live outside the County will be allowed to commute in County vehicles if it is in the best interests of the County as determined by the County Manager. Once the commuting arrangement has been fully approved , the Department Head must notify the County Finance Department. Approved commuters are permitted the use of County vehicles ass igned to them for: 1) travel between work and home (shortest, most direct route), or 2) to obtain meals and other work related necessities while on duty. County vehicles shall be used for official County business only. 2 040416 HC BOC Page 134 W I THHOLDING REQUI REMENTS FOR COMMUTERS The County of Harnett follows the Internal Revenue Code (the "Code"), located in IRS Publication 15-8, that requires the value of using a County vehicle for commuting to and from work to be taxed as income subject to Federal , State and FICA withholding requirements . Personal use for commuting: • The vehicle is owned or leased by the County . • The vehicle is provided to the employee for "official" government use . • The County requires the employee to commute in a County owned or leased vehicle due to a valid non-compensatory "official" government purpose. If more than one employee is required to commute in the same County owned or leased vehicle for an "official" government purpose , THEN the "Code" commuting valuation shall apply to each employee in the vehicle. Certain types of vehicles are specifically excluded from the "code" requirement of taxing the value of commuting in a County vehicle. These vehicles include all Sheriffs Department Vehicles, all Emergency Services Department Vehicles , any vehicle designed to carry cargo with a loaded gross vehicle weight over 14 ,000 pounds, dump trucks (including garbage trucks), flatbed trucks and "qualified special ized utility trucks " which is defined as any truck (not including a van or pick-up truck) specifically designed and used to carry heavy tools , equipment, or parts , if shelves, racks or other permanent interior construction have been installed to carry and store such items . A pick-up truck with only a toolbox attached is therefore not exempt. DRIVER QUALIFICATI ONS Only County employees , or other individuals authorized by Risk Management to operate County Vehicles , who hold a valid North Carolina driver's license and who meet the following Driver Qualifications, shall be allowed to operate County vehicles or drive their personal vehicles while conducting County business : 1. Must not have a suspension or revocation of the ir driver's license within the last th ree years . 2. Have at least one year of experience in the class of vehicle to be operated or have received proper training in the operation of the vehicle, as approved by the Departmental Safety Officer, prior to use . 3 . Must meet driver's l icensing requ irements . 4 . Will not qualify for a company veh icle if , during the last 36 months, the d river had any of the following experiences: • Been convicted of a felony. • Been convicted of sale , hand ling , or use of drugs . 3 040416 HC BOC Page 135 • Has automobile insurance canceled , declined or not renewed by a company for reasons related to unsafe driving practices. • Has 12 or more points assigned to their driving record. Points are assessed by the Risk Manager for traffic convictions and automobile accidents occurring during business or personal use. All County employees are required to report any Driving While Intoxicated (DWI) arrest, or any other drug or alcohol related arrest while driving, whether on or off duty, to their Department Head and the Risk Management & Safety Coordinator. The employee's driving privileges will be suspended until final disposition by the courts. Failure to report the arrest will be considered a failure in job performance and/or personal conduct and shall be grounds for disciplinary action. The Risk Management & Safety Coordinator, or his or her designee, shall be responsible for securing motor vehicle records ("MVR Reports") for all employees at time of hire and for cause. MVR reports shall be secured every three years for employees either assigned a county vehicle or who drive any vehicle more than 10% of his/her work time . DRIVERS' LICENSE Department Heads shall verify that all employees provide a copy of their driver's license to the Human Resources Department upon request. A visual check of the driver's license shall confirm the following : • Signature matches the individual. • Photo resembles the individual. • Description and address fits the individual. • The expiration date has not passed . • The license has been issued within the state of North Carolina . MAINTENANCE AND REPAIR All new County vehicles except Emergency Services vehicles, shall be delivered to the County Garage, and Garage personnel shall promptly forward to Facilities/Fleet Maintenance Department all papers transported with each vehicle . (The Emergency Services Administrative Staff handles the vehicle information for Emergency Services Department). The assigned custodians , department heads, garage personnel and the facilities maintenance personnel shall be responsible for ensuring that the state vehicle inspection is timely performed each year and that regularly scheduled maintenance (changing oil , checking filters , brakes, all fluids , belts, air pressure in tires, and any physical condition that may present problems later) is performed. Regularly scheduled maintenance shall be performed on the earlier of either six (6) months or 5,000 miles. All operators of County vehicles shall check the tires of the vehicles they drive to ensure that the tires have adequate tread and that the tire pressure is maintained in accordance with the vehicle 4 040416 HC BOC Page 136 specifications . Any unsafe County vehicle shall be reported promptly to the appropriate Department Head and taken to the County Garage for repairs . A ll repairs involving incidents or accidents to a County vehicle sha ll be made through the Garage unless there is an emergency. No veh icles may be taken anywhere else for ma i ntenance and/or repair unless appropriate County Garage personnel have referred them there . When the vehicle is brought to the Garage for repairs, the vehicle operator shall be required to fill out and sign a two part "Request for Repair Form " describing any problem with the vehicle. The Garage will keep one copy of the form to ensure that all necessary repairs shall be done, and the veh icle operator will return the other copy to his or her department. In the event that an emergency arises during evening, weekend or ho liday hours, the driver of the vehicle shall be allowed to have emergency repa i rs completed to the vehicle. However, the driver must notify his Department Head and the County Garage on the next business day. For these situations , an emergency shall be defined as the breakdown of a critical vehicle (resulting from mechanic failure, an accident, or otherwise) where there is not another vehicle available for use . In the event that towing shall be necessary, the vehicle operator shall call the Garage and the Garage will notify the wrecker service . Damages to County vehicle shall be reported to the County Garage, which will make the final determination on required repairs . If Garage personnel determine that repairs are required and the damages had not been previously reported to the Garage, the repairs shall be charged back to the respective Departments as a Preventable loss. It shall be the responsibility of County Garage and Facilities/Fleet Maintenance personnel to establish a maintenance file on each County vehicle that will be used to maintain records to ensure that all County vehicles receive regularly scheduled maintenance. Each t ime repairs or maintenance are completed on a veh icle , a description of the work , the date, and the name of the mechanic who performed the work shall be entered into the appropriate vehicle maintenance file and in the maintenance software program insta lled in the Garage computer. Garage personnel shall also place a sticker on the inside of each vehicle they service that states the mileage and the service date for the next scheduled recommended service . It shall be the responsibility of County Garage personnel to maintain the vehicles according to the manufacturer's specifications. All repairs and/or maintenance shall be completed according to industry standards . It shall be the responsibility of the Garage personnel to check when servicing vehicles to see if the tires need rotating and or replaced . Garage personnel shall provide the Risk Management & Safety Coordinator with cop ies of any repairs involving vehicle accidents for submission to the insurer f or claim recovery. 5 040416 HC BOC Page 137 REGISTRATION, TITLE AND TAGS Department heads are responsible for ensuring that license tags of vehicles removed from service are sent to garage personnel to be turned into DMV. The receipt that DMV gives for the license plate being turned in will be placed in the file of that vehicle. All Harnett County vehicle titles shall be retained and filed in the office of Finance with the exception of community transportation van titles held by NCDOT. Garage personnel shall make available all vehicle information on particular vehicles when requested to help determine which vehicles might need replacing to the Risk Management & Safety Coordinator so that all County vehicle additions and deletions, once reported, will be included on the annual update of the Fleet Schedule for the insurance provider to ensure adequate insurance coverage . RECALLS AND WARRANTY WORK All manufacturers' vehicle recalls ("recalls") shall be submitted to the Risk Management & Safety Coordinator. The Risk Management & Safety Coordinator will notify the Garage of the recall. It shall be the Garage's responsibility to handle all manufacturers' vehicle recalls. Upon receiving a "recall" notice, Garage personnel shall contact the department head in the affected department and coordinate the taking of the vehicle to the appropriate dealership to have the "recall" repairs completed. Records of all recall repairs shall be placed in each vehicle's file and entered into the "Collective Fleet Software Program". Garage personnel shall also be responsible for coordinating all warranty work to be done on County vehicles. Copies of warranty work invoices shall be placed in each vehicle's file and entered into the maintenance software program . VEHICLE OPERATORS & ASSIGNED CUSTODIANS All County employees who operate County vehicles or their personal vehicles while conducting County business are required to operate them in a safe and lawful manner in accordance with the motor vehicle laws of North Carolina and any other governmental entity having jurisdiction. Approved commuters are responsible for making sure the County vehicle assigned to them is parked safely and securely when parked at the employee's home. The vehicle must be parked so that it is visible to the public. ALCOHOL, DRUGS, TOBACCO AND FIREARMS PROHffiiTED Possession , transportation, or consumption of alcohol or illegal drugs by anyone in a County vehicle is strictly forbidden, and no use of tobacco products via cigarettes, snuff, dips, chews, cigars, or pipes, or the use of devices or products that may be used to smoke or mimic smoking (including vaporizers, e-cigarettes, etc.) may be used in County vehicles. The possession of firearms or weapons, concealed or otherwise, is also prohibited in County vehicles except by sworn law enforcement officers. 6 040416 HC BOC Page 138 PERSONAL VEHICLES USED ON COUNTY BUSINESS Individuals using personal vehicles on County business are required to carry the North Carolina statutory auto liability limits as evidence of financial responsibility. This is the primary insurance coverage for the employee's vehicle at all times, including when the vehicle is used on County business. These individuals are required to provide the Risk Management & Safety Coordinator with evidence of insurance upon request. Only private passenger vehicles may be used while driving a personal vehicle on County business. Exceptions may be allowed by the Sheriff for approved events. Refer to the County Travel Policy for uniform interpretation of payment or reimbursement for travel expenses pertaining to official travel and subsistence. APPEARANCE It shall be the responsibility of the employee to which a County vehicle is assigned, department heads, garage and facilities maintenance personnel to keep the vehicle in a state of cleanliness. County vehicles are a direct reflection on the County and as such should portray a professional appearance. TRAFFIC VIOLATIONS, INCIDENTS AND ACCIDENTS All County employees who are assigned a County vehicle or who drive any vehicle more than 10% of his/her work time are required to report any accident or other incident involving a County vehicle immediately, or as soon as possible, to their Department Head and the Risk Management & Safety Coordinator. In the event of an accident, the vehicle operator shall also: 1. Contact the appropriate investigating agency, regardless of the extent of damages. 2. Not discuss the circumstances of the accident with anyone other than the investigating officer, the County's insurance carrier, or persons conducting an internal investigation. 3. Make no attempt to reach a settlement. 4. Get the name , address, and phone number of all involved parties and witnesses. 5. Take photographs of the accident or incident scene if possible. A County Vehicle Incident Report Form shall be filled out in its entirety by the County driver immediately after the incident or accident, or as soon as possible, and sent to the Risk Management & Safety Coordinator. If a police report is prepared, the driver, Department Head, or the Department Head's designee is responsible for picking up a copy of this report and providing it to the Risk Management & Safety Coordinator. Failure to report traffic violations will be considered a failure in job performance and/or personal conduct and shall be grounds for disciplinary action. Fines imposed on a County employee for a traffic offense committed while on or off duty are imposed on the employee personally and payment thereof is the employee's personal responsibility. 7 040416 HC BOC Page 139 The Risk Manager & Safety Coordinator shall maintain reports of vehicle accidents and distribute to the Department Heads quarterly. VEHICLE INSPECTION CHECKLIST All EMS & HARTS vehicles in use shall be inspected daily by the driver before and after operation to assure that the vehicles, equipment and accessories are in safe operating condition. The Fire Marshall and Emergency Management vehicles are inspected weekly . All other employees who are assigned a County vehicle shall complete a Vehicle Inspection checklist (Appendix A) and provide a copy to the Department Head , or their designee, twice a year-January and July. GAS STATIONS Only gas stations accepting Wright Express Gas Cards may be used . The driver shall input the correct odometer reading . PASSENGERS Only passengers on County business are allowed in County vehicles, for example, local Government officials and contractual relationships . CELL PHONE The use of a cell phone while operating a County vehicle or while operating a personal vehicle while conducting County business is discouraged except in emergency situations. Employees are encouraged to pull to a safe and responsible location when using a cell phone . DEFENSIVE DRIVING TRAINING Each employee who is assigned a County vehicle or who drives any vehicle more than 10% of his/her work time, shall be required to attend a Defensive Driving course facilitated by the Risk Management & Safety Coordinator no less than once every three years. 8 040416 HC BOC Page 140 Vehicle ID : _____ _ Next Service Due: APPENDIX A VEHICLE INSPECTION CHECKLIST HARNETT COUNTY Driver completing report (Print): ---------- --------NC Inspection Date: ---------- Pre-Start (if not applicable, stateN/A) First Aid Kit ---___ Oil Level ___ Tires (Pressure and Wear) ___ Spare Tire License Plate --- Seatbelts --- ___ Fire Extinguisher (properly charged) ___ Windshield Wiper Fluid ___ Coolant Level ___ Jack/Lug Wrench ___ Registration Card/Insurance card Horn --- Start Engine (if not applicable, state N/ A) Oil Pressure --- ---Adjust rear view mirror ___ Parking Brake Defroster --- ---Windshield Wipers ___ Turning Signals ___ Emergency Signals ___ Reverse Lights ___ Water Temperature ___ Steering Operation ___ Indicator Lights (High Beam, Brake, etc.) Air Conditioner --- ---Backup Alarm ___ Head Lights (High and Low Beam) ___ Topped off with Fuel ___ Brake Lights **LIFT VANS ONLY** Lift has been checked and run through full cycle (Yes/No) _______ _ Cleanliness of Vehicle (check if clean) Exterior Interior Truck Bed Toolbox ------------ NOTE ANY ADDITIONAL PROBLEMS DiSCOV ERED DURJNG INSPECTION Signature of driver completing report: -----------Date: ___ _ Signature of Department Head or Supervisor Date: ------- 9 040416 HC BOC Page 141 APPENDIX B HARNETT COUNTY VEIDCLE ACCIDENT GUIDELINES Thls guide , while it is designed to assist in determining the preventability of vehicular accidents, cannot list every causal factor that may be involved in a given accident. It does cover the most common aspects of the principal causes of accidents, and as such, it can serve as a guide only when considering preventability. From time to time revisions may be necessary to improve accuracy to apply to the facts of a case. Struck While Parked Non-Preventable if: 1. Driver was properly parked in a location where parking was permitted. 2. Vehicle was protected by emergency warning devices as required by federal and state regulations, or if driver was in process of setting out or retrieving signals. Intersection Accidents Preventable if: 1. Driver failed to control speed so that he could stop within available sight distance. 2. Driver failed to check cross-traffic and wait for it to clear before entering intersection. 3. Driver pulled out from side-street in the face of on coming traffic. 4. Driver collided with person, vehicle or object while making right or left turn. 5. Driver, going straight through an intersection, collided with another vehicle making a turn. Striking Other Vehicle in Rear Preventable if: 1. Driver failed to maintain safe following distance and have vehicle under control. 2. Driver failed to keep alert to traffic conditions and note slowdown. 3. Driver failed to ascertain whether vehicle ahead was moving slowly, stopped or slowing down for any reason. 4. Driver misjudged rate of overtaking. 5. Driver came too close before pulling out to pass. 6. Driver failed to wait for car ahead to move into the clear before starting up . 7 . Driver failed to leave sufficient room for passing vehicle to get safel y back in line. Sideswipe and Head-On-Collisions Preventable if: 1. Driver was not entirely in the proper lane oftravel. 10 040416 HC BOC Page 142 2 . Driver did not pull to the right and slow down and stop for vehicle encroaching on own lane of travel when such action could have been taken without additional danger. Struck in Rear or Side by Other Vehicle Preventable if: 1. Driver was passing slower traffic near an intersection and had to make sudden stop. 2. Driver made sudden stop to park, load or unload. 3. Driver's vehicle was improperly parked. 4. Driver rolled back into vehicle behind. Non-Preventable if: 1. Driver's vehicle was legally and properly parked. 2. Driver was proceeding in own lane of traffic at a safe and lawful speed. 3. Driver was stopped in traffic due to existing conditions or was stopped in compliance with traffic sign or signal or the directions of a police officer or other person. 4. Driver was in proper lane, stopped and waiting to make turn. Backing Accidents Preventable if: 1. Driver backed vehicle, causing accident, when such backing could have been avoided. 2. Driver failed to get out of vehicle and check proposed path of backward travel. 3. Driver failed to use a "spotter" if driver was in a position where the mirrors failed to show the hazard. Accidents Involving Train Preventable if: 1. Driver attempted to cross tracks directly ahead of train or streetcar. 2. Driver ran into side of train or streetcar. 3. Driver stopped on or parked too close to tracks. Accidents While Passing Preventable if: l. Driver passed when view of road ahead was obstructed by hill, curve, vegetation, traffic, adverse weather conditions, etc. 2. Driver attempted to pass in the face of closely approaching traffic. 3. Driver failed to warn the driver of the vehicle being passed. 4. Driver failed to signal change of lanes. 5 . Driver pulled out in front of other traffic overtaking from rear. 6 . Driver cut-in short returning to right lane. ]] 040416 HC BOC Page 143 Accidents While Being Passed Preventable if: 1. Driver failed to stay in own lane, or hold or reduce speed to permit safe passing. Accidents While Entering Traffic Stream Preventable if: 1. Driver failed to signal when pulling out from curb. 2. Driver failed to check traffic before pulling out from curb. 3 . Driver failed to look back to check traffic if driver was in position where mirrors did not show traffic conditions. 4. Driver attempted to pull out in a manner, which forces other vehicles(s) to change speed or direction. 5. Driver failed to make full stop before entering from side-street, alley or driveway. 6. Driver failed to make full stop before crossing sidewalk. 7. Driver failed to yield right of way to approaching traffic. Pedestrian Accidents Preventable if: 1. Driver did not reduce speed in area of heavy pedestrian traffic. 2. Driver was not prepared to stop. 3. Driver failed to yield right of way to pedestrian. Mechanical Defects Accident Preventable if: 1. Defect was of a type which driver should have detected in making a pre-trip or inspection of vehicle. 2. Defect was a type which driver should have detected during the normal operation of the vehicle. All Types of Accidents Preventable if: 1. Driver was not operating at a speed consistent with the existing conditions of the road, weather, and traffic. 2. Driver failed to control speed to be able to stop within assured clear distance. 3 . Driver misjudged available clearance. 4. Driver failed to yield right of way to avoid accident. 5 . Driver failed to accurately observe existing conditions and drive in accordance with those conditions. 12 040416 HC BOC Page 144 6. Driver was in violation of County operating rules or special instructions, the regulations of any federal or state regulatory agency, or any applicable traffic laws or ordinances. Accidents Involving Animals/Debris Preventable if: 1. Driver was not operating at a speed consistent with the existing conditions of the road, weather, and traffic. 2 . Driver failed to control speed to be able to stop within assured clear distance. 3 . Driver misjudged available clearance. 4 . Driver failed to accurately observe existing conditions and drive in accordance with those conditions. 5. Driver was in violation of company operating rules or special instructions, the regulations of any federal or state regulatory agency, or any applicable traffic laws or ordinance. Non-preventable if: 1. Driver attempted to stop safely while maintaining control of the vehicle and stay in their lane of traffic. 2. Driver was operating at a speed consistent with existing condition of the road, weather and traffic. 13 040416 HC BOC Page 145 APPENDIX C HARNETT COUNTY REQUEST FOR REPAIR FORM Date:--------Signature: ___________ _ Vehicle Info: Unit Number: Mileage: Location: Required Service: I Oil & Oil Filter Change Needed r Brake Inspection Needed r Cooling System Inspection I Primary Fuel Filter Replacement I Secondary Fuel Filter Replacement I Transmission Inspection Type of Service Needed: r r r Please note type of service performed: Air Filter Replacement r Tire Replacement DMV Inspection r Tire Rotation Wheel Alignment r Heat -NC Inspection DAMAGED VEHICLE HANDLING INSTRUCTIONS: Towing -if needed, vehicles should be towed to the County Garage at 1100 E. McNeill Street Estimates -Johnny Stone (91 0.984.4247) or Chris Johnson (910.984.4173) should be contacted within 24 hours to obtain quotes for repairs *Leave this completed form in the vehicle if towed to the County Garage or forward to Johnny Stone at the County Garage 14 040416 HC BOC Page 146 Board Meeting Agenda Item Agenda Item 4-X MEETING DATE: April 4, 2016 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Duke Energy Easement REQUESTED BY: Steve Ward/Glenn McFadden REQUEST: HCDPU reque sting approval to grant Duke Energy Progress LLC an easement as part of the WTP Upgrade Project. FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: U:\My Documents\BOC\Agenda Req Duke Easement 3 21 16.doc I of I Page 040416 HC BOC Page 147 NORTH CAROLINA HARNETT COUNTY NO REVENUE EASEMENT Prepa red By: Carol Kels Return To: Duke Energy Progress , LLC Attn: Lisa Norris PIN : 1006500301 667 0 Wade Stedman Rd . Wade , NC 28395 THIS EASEMENT ("Easement") is made this day of , 20 __ _ ("Effective Date"}, from COUNTY OF HARNETT, NORTH CAROLINA. A BODY POLITIC, ("GRANTOR ," whether one or more), to DUKE ENERGY PROGRESS, LLC, a North Carolina lim ited liability company ("DEP"); its successors , licensees, and assigns . WITNESSETH : THAT GRANTOR, for and in consideration of the sum of ONE DOLLAR ($1 .00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, does hereby grant unto DEP , its successors, lessees , licensees, transferees , permittees, apportionees, and assigns, the perpetual right, privilege, and easement to go in and upon the land of GRANTOR situated in Neills Creek Township , described as follows : containing 8.911 acres. more or less. and being a portion of the land described in a deed from Northeast Metropolitan Water District of Harnett County. NC to County of Harnett. NC. dated November 11. 1992. and recorded in Deed Book 985, Page 368. known as Parcel 5: also shown on a plat entitled "Raw Water Pumping Station-Northeast Metropolitan Water District". dated November 8, 1990, and recorded in Plat Cabinet E. Slide 120-A. all Harnett County Registry. (the "Property"), LESS AND EXCEPT any prior out-conveyances, and to construct, reconstruct, operate , patrol , maintain, inspect, repair, replace , relocate , add to, modify and remove electric and/or communication facilities thereon including but not limited to , supporting structures such as poles, cables, wires, underground conduits , enclosures/transformers, vaults and manholes and other appurtenant apparatus and equipment (the "Facilities") within an easement area being ten (1 0) feet wide, together with an area ten (10) feet wide on all sides of the foundation of any DEP enclosure/transformer, vault or manhole (the "Easement Area"), for the purpose of transmitting and distributing electrical energy and for communication purposes. The center line of the Facilities shall be the center line of the Easement Area . The right, privilege and easement shall include the following rights granted to DEP : (a) ingress and egress over the Easement Area and over adjoining portions of the Property (using lanes, driveways and paved areas where practical as determined by DEP); (b) to relocate the Facilities and Easement Area on the Property to conform to any future highway or street relocation , widening or improvement; (c) to trim and keep clear from the Easement Area, now or at any time in the future, trees, limbs , undergrowth , structures or other obstructions , and to trim or clear dead , diseased, weak or leaning trees or limbs outside of the Easement Area which , in the opinion of DEP, might in terfere with or fall upon the Facilities ; and (d) all other rights and privileges reasonably necessary or convenient for DEP 's safe , reliable and efficient installation , operation, and maintenance of the Facilities and for the enjoyment and use of the Easement Area for the purposes described herein . 040416 HC BOC Page 148 Notwithstanding anything to the contrary above, it is understood and agreed that: (1) the EASEMENT herein granted is for facilities to be installed at any point where needed on the above-referenced land of GRANTOR and /or where needed to serve adjoining lands, portions of which facilities may be installed immediately, and other portions installed in the future as the need develops ; and (2) said facilities shall be installed at locations mutually agreeable to the parties hereto . TO HAVE AND TO HOLD said rights, privilege, and easement unto DEP its successors, licensees, and assigns, forever, and GRANTOR, for itself, its heirs, executors, administrators, successors , and assigns, covenants to and with DEP that GRANTOR is the lawful owner of the Property and the Easement Area in fee and has the right to convey said rights and Easement. IN WITNESS WHEREOF, this EASEMENT has been executed by GRANTOR and is effective as of the Effectiv Date herein. ATTEST: -------------____ Clerk County of Harnett, North Carolina a body politic By: __________________________ __ :----::--=------:-----:------------• Chairman . Board of Commissioners NORTH CAROLINA,-----------COUNTY ·- I, -------------------· a Notary Public of-------------County, North Carolina , certify that personally ~P~~~~ed ~---~ me this day and acknowledged that he( she) is Clerk of Harnett COUNTY, and that by ~~~b ."~5! give n iJa as the act of said COUNTY, the foregoing EASEMENT was signed in its name by its Cb~ir· Witl ~ official seal , and attested by self as its Clerk. a Witness my hand and notarial seal, this ____ day of---------- Notary Public My commission expires:--------- . . . . . . .... . . . . .. THIS INSTRUMENT HAS BEEN REVIEW EO:': ': ·: ·: ·: .... E I N OFFICER 040416 HC BOC Page 149 Board Meeting Agenda Item Agenda Item L/-~ MEETING DATE: April 4 , 2016 TO: HARNETT COUNTY BOARD OF COMMISSIONERS SUBJECT: Award Weapon REQUESTED BY: Sheriff Coats REQUEST: Sheriff Coats request to award a Smith & Wesson 38 caliber Serial number CBZ4537 to Sheriff Rollins for $ 1.00 upon his retirement. FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: F:\20 15 -20 16\Agenda Sheriff Rollins Weapon.d oc Page I of I 040416 HC BOC Page 150 NORTH CAROLINA HARNETT COUNTY RESOLUTION THAT , WHEREAS , Sheriff Larry W Rollins , began his Harnet t County Law Enforcement career on December 2 , 1977; and WHEREAS, after forty years of distingu ished service to Harnett County, Sheriff Larry Rollins will resign; and WHEREAS, according to North Carolina General Statute 14 -402 and 14 -409 .1 , proper permits have been obtained (as attached ) in order to receive the side arm. NOW , THEREFORE , BE IT RESOLVED by the Harnett County Board of Commissioners that Sheriff Larry Wayne Roll ins be awarded the following service side arm for one dollar ($1 .00). Smi th & Wesson 38 caliber , serial number CBZ4531. Duly adopted this day of --------------' 20 __ __ HARNETT COUNTY BOARD OF COMMISSIONERS Chai rman ATTEST: Clerk to the Board 040416 HC BOC Page 151 Board Meeting Agenda Item Agenda Item lf-1< M EETING DATE : April 4 , 2016 TO : HARNETT C OUNTY BOARD OF C OMMISSIONERS S U BJECT: Charlene Bass v. Harnett County (Settlement Agreement) REQ UESTED BY: MonicaL. Jackson REQUEST: Order Approving Compromise Settlement Agreement in Charlene Bass v . Harnett C ounty matter, I.C . File No.: W93571 FINANCE OFFICER'S RECOMMENDATION: COUNTY MANAGER'S RECOMMENDATION: P:\BOC\agendafo rm20 16.doc Page I of I 040416 HC BOC Page 152 OCT-09-2001 06 :51 P.001 NORTH CAROLINA INDUSTRIAL COMMISSION LC. NO.: W93S71, CHARLENE BASS, EmployHt P.laiatlff v. RARNETr COUNTY, Employer, SELF-INSURED (Key Risk Maaagemeat Services. Senidng Agent), Defeudaut. AGREEMENT OF FINAL SETTLEMENT AND RELEASE 1H1S AGREEMENT OF FINAL SETTLEMENT AND RELEASE, made and entered into this 1 ~ day of December, 201 5, by and between CHARLENE BASS, hereinafter called the Employee, and HARNE1T COUNTY. hereinafter caUed the Employer, (Key Risk Management Services, me. acting as servi(;ing agent) all parties represented by counsel: W JTNESSETH: WHEREAS. on or about June 23, 2010, the Employee first was disabled as the result of an alleged ocaiJ)ational disease of the right shoulder aming out of and in the course of her employ- ment with the Employer; and WHEREAS, the .Employer initially denied the compensability of the occupatiooal disease under the North Carolina Workers' Compensation Act. however the occupational disease was found to be compensable by the North Carolina tn&lstrial Commission and payment of disability compensation commenced effective June 23, 2010 pursuant to the determination of compensab~ WHEREAS. at the time of the onset of the occupational disease, it wa.~ determined that the Employee bad an average weekly wage of$189.21 yielding a compensation rate of$126.15; and WSERBAs, the Employee halt been paid total disability compensation from June 23, 2010 through th~ present; and ' ~~ the Employee has not been assiSJled a permanent partial impairmc::nt rating for her right shoulder as of the date ofthis Agreement; and 040416 HC BOC Page 153 OCT-08-2001 05:62 P.002 I. C. FILE NO.: W93S71 WHEREAS, tbe Employee represents that she has not ~ed to work or earned wages in any capacity since the date of onset of disability ftum her oocupatiooal disease, and the Employer has relied on this representation as a siS?fficant eonsideration in entering into this Agreement; and WHEREAS, the Employee has been approved to receive Social Security disabiUty compensation, but she had not yet applied for and was noL receiving Medicare benefits as of the date of this Agreement; and WHEREAS, it is the undcrstanding of the parties pursuant to the MemoJ3J\da from the Center for Medicare and Medicaid Services C'CMSj thal regardless of the Employee's future elisibiJity for Medicare benefiti, this claim does not meet the criteria for requiring prior Medicare approval ofmis Agreement; aud WHEREAS, notwithsgnding the Employee's CUJTent Medicare status, the parties hereby affirm that due consideration has nevertheless been given to the interests of Medicare, and the parties agree tha1 out of tbe settlement amount set forth below, $1,000.00 is designated as the . amount attributable to future medical needs for the Employee's oteupational disease based upon the torality of circumstances, including the fuct that no surgery or additional medical treatment is being recommended for the Employee; and WHERBAS, the Employee was bom on October 17, 1958, and has a life expectancy as of the date of this Agreement of 23.5 years or 1222 weeks under the N.C. Mortality Tables found at § ' 8-46; and WHEREAS, the future need fur medical care and tteatment is disputed and the parties acknowJedge and n:pn::scnt this settlement asreemcnt foreclo~ the possibility of&ture payment of wage loss and medical compensation or other workers' compensation benefits; and 2 040416 HC BOC Page 154 OCT-OB-2001 06:62 P .003 LC. FILE NO.: W93571 WHEREAS, copies of all available medicaJ and rehabilitation records pertaining to the Employee and her oc:cupational disease have previously been submitted to the North Carolina industrial commission or are being submitted to the North Carolina Industrial Commission with this Agr=ncat and are fully inc:orporated herein by reference; and WHEREAS, the Employee contends she is entitled to substanlial additional compensation in that she ·has been unable to work in competitive employment which is available in significant numbers in the local and regional economy since the date she was injured and will continue to be UDable to do so fur the period of her life cxpcc:tancy, but the Employer conteiids to the contrary that the Employee is entitled to no additional rompensation and that such disability as the Employee may uow have will diminish in time in such a manner that tbc Employee will not be entitled to any furtber compensation under and by virtue of the North Carolina Workers' Compen.~tion Act; and WHEREAS. due to the contested nature of this claim and due to the fict that the settlement gives recognition to tile: alleged loss of wage eamiog capacity over the lifetime · of Employee suft'ercd due 10 1his injury, Employee agrees to this compromise lwnp sum~ which may provide less in tocal COmperl$&tion than she may have received if the claim had not been oompr~ mised;aod WHEREAS, the Employee and Employer recognize 'that there is a need for finality of litigation and arc desirous of compromising and settling all matters in controversy between them without t~ necessity of any additional hearings before the North Carolina Industrial Commission subject to the approval of the North Carolina lndusuial Commission. as by law provided. NOW, THEREFORE, in consideration of the things ba'cinbefore recited as having been done and tile things hercinaftcr agreed to be done and the mutual agreements on the part of each of the parties,. it is agreed as follows: 3 040416 HC BOC Page 155 OCT-08-2001 06:62 P.004 LC. FILE NO.: W93571 1. The .Employer agrees to pay or cause to be paid to the Employee in one lump sum TWENTY THOUSAND ANI;> N0/100 DOLLARS ($20,000.00), said sum to include counsel fees for her attomey, Kmn Bunn, in full and final settlement for all compensation due or to become due under and by virtue of the North Carolina Workers' Compensation Act In arriving at this settlemcat, its tc:nns and conditions, the undetsigned parties RC:Ognize that Employee's injury is permanent in nat1ae and while the sum of $20,000.00 is to be paid in a lump sum, its value is to be prorated over the lifetime of the Emplo>= based on the weekly life expettmcy 'Of 1222 weeks and after deduction of a reasonable anticjpeted attorney fee in the amount of ~o/o if so approved by the North Carolina Industrial Commission, resulting in an effi!Ciiwt wkkJv benefit tqtt of$12.27 beghming as of the date this Agreement is approved by the North Carolina lrldumial Commission. The payments under this Agreement are intended as compensation for iDjuri~ or sickness within the meaning of Section 104(aX1) of the lntcmal Revcuue Code . In tbis rcprd, no Form 1099 will be issued for any sums paid hereunder. The~ settlement ~n oft'crcd for approval has a present value of $20.000.00 and provides no compensation for pain 8Dd sufferin& emotional distress, or other non-compensable injuries. 2. The Employer agrees to pay or cause to be paid to the persons thereuntO entitled any and all bill~ for authorized medical treatment incurred as a rcsu.lt of said occupational disease, up to the date ofihis Agreement and no further, to the extent authori2ed by the North Carolina Industrial Commission. as by law provided. Attached hereto is a list of all medical expenses the Employer has paid in 1relat:ion to the injury by accident to the date of this Agreement. There are no medical expenses in dispute. Further in this regard, the parties hereby agree, stipulate and find that the . pobitions of all of the parties to this ~ent are reasonable as to the payment of medical expenses .. 4 040416 HC BOC Page 156 / OCT-OB-2001 06:53 P.006 LC. F.ll..E NO.; W93S71 3. It is hereupon agieCd by the parties that in the event it is ever subsequently determined 1hat funds should have been set aside in connection with dlis seulcment in order to protect Medicare's interests, the Employee shaJJ be solely mponsiblc for funding a Medicare Set- Aside AccoUDt ("MSA ") in an amount adequate to protect Medjcare's interests. In this regard. it is 1hc intention of the parties that the Employer shall have no further obligation .iD connection with any . . such MSA or with~ to Medicare's interests; and the Employee therefore agrees to bold harmless the Employer and its Ieptesentatives as to 8J1Y fulure action or obligation related to such MSA or Medicare's intercsas. 4. The Employer agrees to pay or cause to be paid 1bc cost of this proceeding before the North Carolina Industrial Commission. including the Employee·s share of all mediator's fees and fees associated with the submission of the Report of Mediator and for submitting this Agreement to the North Carolina Industrial Commission for approval. without reimbursement from the .Employee. S. The Employee agrees to accept the sums hereinbefore recited as havins been paid and the sums herein agreed to be paid to her or in her bebalf in full, fmal and complete settlement . and satisfaction of any acd aD claims, demands, suits, actions or rights of actioo of whatsoever nature and :kind which tht said .Employee now bas or may hereafter have or claim to have on account of the occupational disease, including any and all claims for unpaid or unreimbursed travel expenses. It is the scase of this A&teement that the said sum so agreed to be paid shall be accepted in filU settlement and satisfaction of all claims arising out of said occupational disease, whether presently existing. or presently known, or whether hereafter existin3t appearing or otherwise, or whether by virtue of things now existing or by clJange of condition bcreafter. Employee espeCially 5 040416 HC BOC Page 157 OCT-08-2001 05:53 P.006 LC. FIL£ NO.: W93571 waives any fiBht she may have hereafter to claim any surgical operation or medical expenses or compensation for the injwy by accident. or any recurrence thereof. 6. The Employee hereby declares and repieSCDts that her oc:cupational disease may be permanent and/or progressive and that recovery therefi'om is uncertain and indefinite, and in making this Agreement it is understood and agreed that she relies wholly upon her judgment. belief and knowledge oftbe nature, extent and duration of said occupational disease, and that she accepts lhe risk that her judgment, belief and knowledge i.-; incomplete, inaccurate, or mistaken. The Employee further ad:nowlcdgc::s that she bas not been influenced to any extent whalever in making this Agreement by any .representations or staternenlS regarding said occupational disease, or reprding any other matters, made by thC Employer or its employees or agents. 7. The Employee knowingly and intentionally waives her right to further benefits under the Worlccrs , Compensation Act for the occupational disease that is the subject of this Agreement, but no benefits otller than those arising under the provisions of the Worl<ers' Compen- sation Al::t are compromised or released. 8. The parties to this Agreement hereby waive any and all hearings before the North Carolina maustdal Commis.<tion, whether pending or future, aDd in presenting this Agreement for approval. they represent that they have made available to the Commission with said Agreement all medical and rehabilitation reports in their possession. In this connection, the parties hereby acknowledge that they may aot have aU records pertaining to the Employee's medical treatment in their po~sion but nonetheless move the Jndustrial Commission to approve the terms of this scttlemenl based on tbe medical and rehabilitation records being submitted herewith. According· ly, the parties request that the Industrial Commission txercise its discretion, pursuant to 04 NCAC lOA .0801 of the Workers ' Compensation Rule.c; of the North Carolina Industrial 6 040416 HC BOC Page 158 OC!-08-2001 06 :53 P .OO? T.C. FlLE NO.: W93571 Commission, to waive application of 04 NCAC lOA .0502 (b)(l) to the extent that it requires the parties to pr001lce r~poris which have not been submitted to the Industrial Commission v.-ith this Agreement. 9. This Agreement is made expressly subject to the approval of the North Carolina Wolken-' Compensation Act, and the same shall become binding upon the parties only if it is approved by the North Carolina Industrial Commission. IN WITNESS WHEREOF, the parties hereto have set their hands as of the day and year first above written. CHARLENE BASS, Employee HARN 7 040416 HC BOC Page 159 OCT-OB-2001 05:63 P.OOB T.C. FILE NO.: W93S71 PRATH .J.Oi"'l:, ~ ........ State No.: 16001 Attorney fbr Employer 8 040416 HC BOC Page 160 OCT-OB-2001 06 :63 LC. F1LB NO.: W9357l STATE OF NORTH GAROUNA COUNTYOF &rJ P.009 J, Cll~-w ...... Jf~r"_(p~ .. 4/o'-=f'loJ.In ...... S-----'' a Notary Public in and for the afOresaid county and state do hereby certify that CHARLENE BASS petSOnally appeared before me this day and acknowledpl the due execution of the foregoins instrument ~ Witness rrty hand and notarial sea~ this the j[ day of 1JcJ rn 1o1..-, 20§ 9 TOTAL P.009 040416 HC BOC Page 161 Agenda Item _'f--+-_-___ L_._ Harnett COUNTY NORTH CAROLINA 2016 National Service Recognition Day WHEREAS, service to others is a hallmark of the American character, and central to how we meet our challenges; and www.harnett .or g WHEREAS, the nation's counties are increasingly turning to national service and volunteerism as a cost- effective strategy to meet county needs; and WHEREAS, AmeriCorps and Senior Corps participants address the most pressing challenges facing our communities, from educating students for the jobs of the 2 I st century and supporting veterans and military families to providing health services and helping communities recover from natural disasters; and WHEREAS, national service expands economic opportunity by creating more sustainable, resilient communities and providing education, career skills, and leadership abilities for those who serve; and WHEREAS, AmeriCorps and Senior Corps participants serve in more than 60,000 locations across the country, bolstering the civic, neighborhood, and faith-based organizations that are so vital to our economic and social well-being; and WHEREAS, national service participants increase the impact of the organizations they serve, both through their direct service and by managing millions of additional volunteers; and WHEREAS, national service represents a unique public-private partnership that invests in community solutions and leverages non-federal resources to strengthen community impact and increase the return on taxpayer dollars; and WHEREAS, national service participants demonstrate commitment, dedication, and patriotism by making an intensive commitment to service, a commitment that remains with them in their future endeavors; and WHEREAS, the Corporation for National and Community Service shares a priority with county executives nationwide to engage citizens, improve lives, and strengthen communities; and is joining with the National Association of Counties and county executives across the country for the County Day of Recognition for National Service on April 5, 2016 . NOW THEREFORE, we, the Harnett County Board of Commissioners, do hereby proclaim AprilS, 2016, as National Service Recognition Day, and encourage residents to recognize the positive impact of national service in our county; to thank those who serve; and to find ways to give back to their communities. Adopted this 4th day of April 2016. HARNETT COUNTY BOARD OF COMMISSIONERS Jim Burgin, Chairman C. Gordon Springle, Vice Chairman Abe Elmore Barbara McKoy Joe Miller strong roots • new growth 040416 HC BOC Page 162 AGENDA ITEM 6 APRIL 4, 2016 APPOINTMENTS NEEDED ADULT CARE HOME COMMUNITY ADVISORY COMMITTEE Dr. Steven Pusztay has expressed interest in being appointed to serve on this committee. (a lication attached) We need three additional members appointed to serve on this committee. Members receive mileage reimbursement as claimed. HARNETT COUNTY NONPROFIT FUNDING COMMITTEE We have a vacancy for a District 3 member. HOME AND COMMUNITY CARE BLOCK GRANT COMMITTEE We currently have three vacancies on this committee. SANDHILLS CENTER BOARD OF DIRECTORS We have a vacancy on the Sandhills Center Board of Directors. SOUTHEASTERN ECONOMIC DEVELOPMENT COMMISSION Mr. Carnell Robinson has expressed interest in being reappointed to serve SEDC Board of Trustees. (letter attached) TRANSPORTATION ADVISORY BOARD Lawrence "Larry" Smith, the new HARTS manager, has exeressed interest in being appointed to serve on this board. Page 1 -Appointments 040416 HC BOC Page 163 RECEIVED MAR 18 2016 HARNEn COUNTY APPLICA TJON TO SERVE ON A BOARD APPOINTED BY THE MANAGER'S OFFICE HARNETT COUNTY BOARD OF COMMISSIONERS soARD Ad1ll± Car-e Home CoW!WIY'o d-y Adv;s ory Co ru WI J±ee NAME: 12 c. 5'-f!e ve..., /Z:s 2: -f:=..v- / ADDRESS: S~J? Be-.1/a.rcl Jfd. F 4 'j u *"'(-/h.r,' .... A /V, C . .2)->.:<. C. 7 ) VOTING DISTRICT: (Please check district number in which you live): 0 District 1, Commissioner McKoy's .J8I District 4, Commissioner Springle's 0 District 2, Commissioner Elmore's 0 District 5, Commissioner Miller's 0 District 3, Commissioner Burgin 's TELEPHONE: (HOME) 3 3 0 ~!/&!-t9 3 fc G. (WORK) __________________ _ PRESENTOCCUPATION: /e ..,._cLer (c·o .l/pe) YEARSOFFORMALEDUCATION: -+-L~+ ____________________________________ __ CIVIC AND FRATERNAL ORGANIZATIONS IN WHICH YOU HAVE PARTICIPATED: PLEASE TELL WHY YOU WOULD Lll<E TO SERVE ON THE ABOVE LISTED BOARD: >1~e v<J c~·.r~ '-'~ .......... ·II ~,.. wL .. ,-1-"t? G DATE: J /1 h o / t:> SIGNATURE: _.-o::::::;;:2::'S:;;k~~~~~a~L ________ _ **************************************** FOR OFFICE USE ONLY: DATERECEIVED: ----------------------------------------------------- DATE FORWARDED TO COUNTY COMMISSIONERS: ---------------------------- 040416 HC BOC Page 164 RECEIVED MAR ··7 20\S HARNETI COUNTY MANAGER'S OFACE SOUTHEAS T ERN ECONOMIC DEVELOPMEN T CO M M I SSIO N BOARD OF DIRECTORS Gary Lanier Chairman Columbus County Chuck Heustess Vice Chairman Bladen County Randall Johnson SecretaryfTreasurer New H<Jnover Co unty M ichael Dilullo Brunswick County Amy Cannon Cumberland County Carnell Robinson Harnett County Linda Revels Hoke County Demetrice Keith Pender County Martie Butler Richmond County Jerry Stephens Robeson County John Swope Sampson County Kevin Patterson Scotland County EXECUTIVE DIRECTOR Pamela H. Bostic Serving Southeastern North Carolina Since 1968 February 25, 2016 Mr. Joseph Jeffries County Manager County of Harnett PO Box 759 Lillington, NC 27456 Re: SEDC Board Appointment-Mr. Carnell Robinson Dear Mr. Jeffries: The term of Mr. Carnell Robinson on the Southeastern Economic Development Comm ission (SEDC) Board of Directors will expire on March 31, 2016. Mr. Robinson has been rep resen t ing Harnett Cou nty serving as a minority representative on the full board of the Commission. He also serves on the Executive Committee of the Board. In order to insure that Harnett County has adequate representation on our Board at all times, and that the Commission meets minority representation requirements imposed by current legislation, we are requesting that your Board of Commissioners reappoint Mr. Robinson for a fou r-y ear term to end on March 31, 2020 . Once action has been taken, please notify this office in writing. Sh ould there be questions, please call me at (910) 862-6985, Ext. 32 . Thank you. Sincerely, ~B ~utu Pamela H. Bostic Executive Director Cc: Carnell Robinson 904 North Layton Avenue Dunn , NC 28334 "Strives t o create ne w jobs, r etain existing jobs, and stimulat e economic and industri a l gro w th in southeastern Nort h Caro lina " 707 West Broad Street 1 P .O. Box 921 1 Elizabethtown , North Carolina 28337 1 TEL 910.862.6985 1 FAX 910.862.1482 info@sedcnc.org 1 www.sedcnc.org 040416 HC BOC Page 165 Agenda Item __ 7-+---- Harnett '~~""!. C 0 U N T Y NORTH CAROLINA OATH OF OFFICE Tax Administrator I, S. Keith Faulkner do solemnly swear that I will support and maintain the Constitution and laws of the United States, and the Constitution and laws ofNorth Carolina not inconsistent therewith, and that I will faithfully discharge the duties of my office of Tax Administrator with duties ofTax Collector and Tax Assessor of Harnett County, North Carolina, and that I will not allow my actions as Tax Administrator to be influenced by personal or political friendships or obligations, so help me God. This 4th day of April, 2016. S. Keith Faulkner, Tax Administrator This two term will expire on March 17 , 2018. Subscribed before me this 4th day of April, 2016. Jim Burgin, Chairman Harnett County Board of Commissioners strong roots • new growth www.ha rn ett.org 040416 HC BOC Page 166 PM M c CtW KY G ovERNOR March 16, 2016 Mr. Jim Burgin 6099 NC 55 West Angier, North Carolina 27501 Dear Mr. Burgin: STATE oF NoRTH CAROLINA OFFICE OF THE GOVERNOR Agenda Item __ 8::!111L-- It gives me great pleasure to appoint you to serve as a member of the North Carolina Local Governmental Employees' Retirement System Board of Trustees. Pursuant to the authority granted to me by North Carolina General Statute § 128-28, your term will begin April 1, 2016 and will expire March 31 , 2020. N orth Carolina is moving forward. Your service will have an immediate and positive impact upon the changes we are making in our state. We need leaders such as you in public service to help promote our vi s ion and reali zation of a better North Carolina. Thank you for your willingness to serve in this capacity. I am grateful for citizens like you who give their time and talent to serve the State ofNorth Carolina. Sincerely, ~f!l~ Governor of North Carolina Copy : Lieutenant Governor Dan Forest The Honorable Phil Berger The Honorable Tim Moore Deni se Weeks, Hou se Principal C lerk Sarah Lang , Senate Principal Clerk State Ethic s C ommission Legislative Library 20 301 M A I L S ERV ICE CENT ER . R A L EIGH, NC 27 699-0 30 1 • TELEPHONE: 919-8 14 -2000 WWW .GOVERNOR .STATE.NC.US I I, L ' I i' 040416 HC BOC Page 167 .. ------ --. ' > ' ,, . ' ~tatr of ~orlii <!Iarolina PAT McCRORY GOVERNOR Certificate of Appointment Por service to tlie qreat State of North Carofina 9dr. Jim (]Jurain 9dem6et; Nortft Carolina £oca{ qovernmenta{f£mpfoyees 1 <R§tirement System (}Joartf oftTrustees I fiave hereunto set my fiaru{ aruf affv;p{ tlie qreat Sea[ of tlie State of :Nortli CarotiTUL at t lie capito[ in (j(aCefoli, on tliis aate, 'Mardi 16, 2016. Esse Q u 11m Vidcri Til Be Ralher Than 1i1 Seem 040416 HC BOC Page 168 Office of the Governor Boards and Commi ss i on s 20301 Mail Se r vice Cen ter Raleigh , NC 27699·0301 Phon e: {919} 814 .2035 Fa x: (919} 733.2120 APPOINTMENT PACKET INSTRUCTIONS To finalize your appointment/reappointment to serve as an active member on the board or commission, please complete the enclosed oath of offi ce. If you have any questions, please call (919)814 .2035. 1. Pl ease f i nd t he e nclosed Oath o f Offi ce. Have the oa th properly executed by either a(n): Not ary Pu b lic Ju d ge or Justi ce Re tired Judge or Just ice M ember of th e Fed e r al Jud icia r y Cl er k of Court Assistan t Cl erk o r Deputy Clerk Cle r k o f any county, city, t own, or i ncorpo r at ed vill age Register of Dee ds Magistr ate Mayor Ch ai rm an of the Board of Co unty Commissione r s o f any county Mem ber of the Gen er al Assemb ly 2. Upon comp letion of step 1, please retu rn you r o r igi n al Oat h of Office t o the fol l owi ng address: Office of the Governor Boards and Commissions Office 20301 Mail Service Center Raleigh, NC 27699·0301 040416 HC BOC Page 169 PATMcCKoKY GOVERNOR STATE or NoRTH CAROLINA 0f'FICE Ot' THE GOVERNOR I, Jim Burgin, do solemnly swear (affirm) that I will support the Constitution of the United States. I, Jim Burgin, do solemnly swear (affirm) that I will be faithful and bear true allegiance to the State ofNorth Carolina, and to the constitutional powers and authorities which are or may be established for the government thereof, and that I will endeavor to support, maintain and defend the Constitution of said state, not inconsistent with the Constitution of the United States. 1, Jim Burgin, do solemnly swear (affirm) that I will well and truly execute the duties of my office as a member of the North Carolina Local Governmental Employees' Retirement System Board ofTrustees according to the best of my skill and ability, according to Jaw, so help me God. __________________ Councy,NC Sworn to and subscribed before me, this the day of , 20_. Signature Print My commission expires on _____ _ Jim Burgin 20301 MAll. St::RVICE CENTER . R ALEIG H. NC 27699-030 I • Tf.I.F.PI~ONt::: 919-814-2000 WWW .GOVERNOR .STAil:::.NC .US i ', I I 040416 HC BOC Page 170 HA R N E T I CO U N T Y Ag e n d a Item 9 SA L E S TA X AN A L Y S I S BY AR T I C L E 1. Cu r r e n l l £ ! : i ! r ac t i v i ! l £ : Ci t y Ho l d Sc h o o l Hold Ge n e r a l Fu n d Bo a r d of Ed u c a t i o n Ha r m l e s s Ha r m l e s s Fi s c a l Ye a r 20 1 6 Ar t i c l e 39 Ar t l c l e 4 0 Ar t i c l e 42 Ar t i c l e 40 Ar t i c l e 42 Ar t i c l e 44 Ar t icl e 46 Ar t i c l e 39 Ar t i c l e 39 Special Districts Total Distribution Ju f y, 20 1 5 $ 57 8 ,60 3 . 1 6 $ 43 6 .80 8 .6 2 $ 177 ,6 18 .90 $ 15 1 ,56 7 . 19 $ 30 3 , 1 3 4 . 3 8 $ 8 .2 0 $ 15 9 .2 7 8. 4 8 $ (8 5 , 8 2 1 . 7 7 ) $ (13 9 ,379.84) $ 108,590.02 $ 1,690,407.34 Au g u s t , 20 1 5 $ 36 0 ,59 5 . 6 0 $ 41 0 . 3 7 2 . 7 5 s 13 5 ,0 7 7 . 5 6 $ 136 ,56 4 . 0 5 $ 27 3 ,1 28 . 1 0 $ 50 . 0 7 $ 89 ,59 1 . 6 6 $ (83 , 3 3 7 . 8 0 ) $ (17 2 ,939.97) $ 72,908.65 $ 1,222,010.67 Se p t e m b e r , 20 1 5 $ 57 7 , 4 2 8. 4 9 $ 41 7 , 4 2 4 . 5 8 $ 17 8 , 6 2 4 . 8 9 $ 14 3 ,16 6 .51 $ 28 6 ,33 3 . 0 2 $ 124.89 $ 15 9 ,62 5 . 2 7 $ (8 0 , 2 0 2 . 9 2 ) $ (12 4 ,823.23) $ 108,672.94 $ 1,666,374.44 Oc t o b e r , 20 1 5 $ 57 5 ,99 6 .92 $ 39 2 , 6 3 5 . 3 2 $ 18 0 ,6 9 3 . 7 3 $ 13 1 ,68 6 . 3 6 $ 26 3 , 3 7 2 . 7 3 $ 48 . 5 7 $ 15 7 , 6 1 6 . 3 5 $ (7 2 , 70 9 . 8 5 ) $ (1 0 5 , 7 8 5 . 9 3 ) $ 108,931.26 $ 1,632,485.46 No v e m b e r , 20 1 5 $ 55 7 , 4 2 2 . 2 1 $ 41 3 ,88 9 . 8 9 $ 17 5 ,08 8 . 2 2 $ t4 0 ,9 5 8 .8 3 $ 28 1 ,91 7 . 6 6 $ 46 . 4 9 $ 15 1 ,42 2. 1 3 $ (7 9 . 4 5 2 . 0 8 ) $ (1 2 7 , 0 7 6 . 3 5 ) $ 105,457.51 $ 1.619,674.51 De c e m b e r , 20 1 5 $ 65 3 , 5 9 9 . 1 4 $ 50 1 , 6 8 2 .04 $ 20 2 ,90 4 . 0 4 $ 17 3 ,42 8 . 4 3 $ 34 6 .85 6 . 8 6 $ 97 . 6 2 $ 17 9 ,85 9 . 1 7 $ (9 8 , 5 2 9 . 1 8 ) $ (1 6 1 ,982.73) $ 123,168.38 $ 1,921,083.77 Ja n u a r y , 20 1 6 $ $ $ $ $ $ $ $ $ $ $ Fe b r u a r y , 20 1 6 $ $ $ s $ $ s $ $ $ $ Ma r c h , 20 1 6 $ $ $ $ $ $ s $ $ $ s Ap r i l, 20 1 6 $ $ $ $ $ $ $ $ $ $ $ Ma y . 20 1 6 $ $ $ $ $ $ $ $ $ $ $ Ju n e , 20 1 6 $ $ $ $ $ $ $ $ $ $ $ $ 3, 3 0 3 ,64 5 . 5 2 $ 2, 5 7 2 , 8 1 3 . 2 0 $ 1 ,05 0 ,00 7 .34 $ 87 7 ,37 1 .38 $ 1, 7 5 4 ,74 2 .75 $ 37 5 .84 $ 89 7 ,39 3 .06 $ (5 0 0 , 05 3 .60 ) $ (83 1,988.05) $ 627,728.76 Is 9,752,036.20 2. Co m R a r l j i o n 12 Rri o r Jl ! : i ! r : Ci t y Ho ld Sc h o o l Hold Ge n e r a l Fu n d Bo a r d of Ed u c a t i o n Ha r m l e s s Ha rmless Fi s c a l Ye a r 20 1 5 Ar t i c l e 39 Ar t i c l e 40 Ar t i c l e 42 Ar t i c l e 40 Ar t icl e 42 Ar t i c l e 44 Ar t i c l e 46 Ar t i c l e 39 Ar t icl e 39 Special Districts Total Distribution Ju l y , 20 1 4 $ 36 3 , 4 9 5 . 2 8 $ 38 9 ,72 2 . 9 9 $ 12 6 ,8 0 7 . 6 1 $ 13 2 , 8 8 4 . 0 2 $ 26 5 , 7 6 8 .04 $ 10 1 . 4 4 $ 12 4 ,9 0 1. 7 6 $ (8 1,14 3 . 5 3 ) $ (1 6 1,431.37) $ 74,701.19 $ 1,235,807.43 Au g u s t , 20 1 4 $ 56 7 ,55 9 . 0 4 $ 40 1 ,15 0 .1 9 $ 178 , 8 9 0 . 6 3 $ 13 5 ,07 7 . 7 6 $ 27 0 , 1 5 5 . 5 2 $ 29 4 . 2 9 $ 15 4 ,23 5 . 9 8 $ (7 5 , 9 8 8 . 12) $ ( 113,642.20) $ 112,278.46 $ 1,630,011.54 Se p t e m b e r , 20 1 4 $ 26 6 ,81 2 . 7 9 $ 38 0 ,16 0 .4 0 $ 10 7 ,6 2 9 .8 8 $ 12 7 . 3 5 0 . 1 5 $ 25 4 , 7 0 0 . 2 9 $ (10 ,4 8 3 . 3 4 ) $ 14 5 , 3 0 0 . 8 2 $ (8 0 . 76 0 . 0 7 ) $ (1 7 7 . 7 6 7 . 1 3 ) $ 56,896.19 $ 1,069,839.98 Oc t o b e r , 20 1 4 $ 54 2 , 7 4 8 . 4 2 $ 39 8 . 1 5 4 .70 s 16 9 ,3 2 4 . 5 8 $ 13 5 ,95 8 . 5 8 $ 27 1 ,91 7 .15 $ (15 2 . 3 0 ) $ 14 7 ,91 9 . 4 5 $ (77 ,21 6 . 4 0 ) $ (1 20 ,125.64) $ 106,943.77 $ 1,575,472.31 No v e m b e r , 20 1 4 $ 48 2 ,72 6 . 0 9 $ 38 8 ,07 1 .74 $ 15 8 , 0 5 5 . 7 7 $ 13 0 . 4 1 6 . 2 1 $ 26 0 ,83 2 . 4 1 $ 21 5 . t 2 $ 13 5 ,14 7 . 5 1 $ (7 5, 5 9 1 . 5 7 ) $ (1 27,018.20) $ 96,835.07 $ 1,449,690.15 De c e m b e r , 20 1 4 $ 63 4 ,60 0 . 7 6 $ 46 9 ,94 2 . 7 8 $ 19 8 ,68 0 . 1 9 $ 16 0 , 3 5 0 . 4 5 $ 32 0 ,70 0 . 9 1 $ 13 9 .73 $ 17 3 , 13 9 .7 1 $ (91 ,2 6 5 . 9 0 ) $ (14 3 ,223.08) $ 125,238.59 $ 1 ,848,304.14 Ja n u a r y , 20 1 5 ~ ·1~ 4 . 8 ~ J 8 . 5 f J $ 36 3 4 3 G 8 ~ , ll i < . 9 " l 46 $ I 19 3 4 2 ~ >:, ~ . 5 4 6 . '· I 20 5 '(, I l l 16 1 5 67 . 8 0 2 1 ( 0· 5 J 2 IOO.ObO 1 •H4.9P.88 Fe b r u a r y , 20 1 5 $ 4: • \J 7 0 . 4 v $ 35 2 .. v.. , 4. w l • • o . o ' ' - ' 3 $ 11 . ]3 ~ . 4 0 ... , . .J . . . v, . : : . . v 1 " O: : u J . 4 • ~ 1 . J .JJ 4 A ' . , . ... - · ,. _ . , J l : $ , . , . _ w "h, . . . V 1~.·l . " o~.o.9\. 1 .... o ... 1 , __ ,.30504 Ma r c h , 20 1 5 $ S~' 3 . : > 0 3 ' 1 ' i 31 0 28 ~ 21 $ 11 2 . 1 8 8 . 1 2 $ '. ! 4 10 b . 4 9 $ 2~8 . 2 1 2 " ' ' $ t9 .6t i $ 15 4 77 3 . 0 3 s 68 . 1 ' 1 1 ? 7.1 $ (9 C . & I S . 7 5 1 s t09.036. '2 ~ 1.~66 725 55 Ap n l , 20 1 5 s 5/ < l . £ , 2 ; : 69 $ 39 3 92 8 . 9 ~ s 17 6 . 0 7 1 ') 3 $ :3 4 57 9 . 9 5 s 2& 9 . '5 9 ~0 $ 2• 7 ' 1 1 : $ 1' 6 . 0 2 7 81 $ 7 5. 1 6 2 8 9 $ 10 9 .2r&251 $ 112 ~-37 ~~· $ • 634 176.26 Ma y , 20 1 5 - - -- - - -· · - ,, - , ~ 16 A r- ~ Q a $ 1L " . ~ .J 7 t 71 ~ ? Q h f' . A t d ' l : t. • ' l nr · , '! - 1l ' 1 : A : > R 11 c ·~ ? o · . t r . o· , c Li . l ' l . O.tA R41 "' HJ? r_A.t, ~A . 1 l::.t..-, '•• ln Ju n e , 20 1 5 $ 3. 11 . .: ; . 154 /~; 1 1 9 d 9 I $ 1 59 1 ·I ~ 11 3 . 8~ 4 d ) ,, $ If , ,. 1 ~ 0 . 0 6 'f: . ' ~~ ~ 1J ) J. 81 )4 • ·o.<, 4 J 1. 18.300.L" $ 2, 8 5 7 ,94 2 . 3 8 $ 2,42 7 ,2 02 . 8 0 $ 93 9 ,38 8 . 6 6 $ 82 2 , 0 3 7 . 1 7 $ 1, 6 4 4 ,07 4 . 3 2 $ (9 ,88 5 .06 ) $ 88 0 ,64 5 . 2 3 $ (48 1 ,96 5 . 5 9 ) $ (84 3 ,207.62) $ 572,893.27 I s 8,809,125.56 3 . Re c o n c l l l l l t l o n to a e n e r l l l le d a e r : Ac t i v i t y Ov e r /(Und e r ) Article 46 Ov e r /( Un d e r ) An n u a l i z e d Bu d g e t An n u a l i z e d Sales Tax Ba l a n c e to HT E Ac t i v i t y Bu d g e t Bu d g e t (6 mo n t h s ) B udg e t 11 0 -00 0 0 -31 3 .3 Q- 0 1 $ 3, 3 0 3 , 6 4 5 .5 2 $ 6 ,06 3 ,7 59 $ (2 , 7 6 0 , 11 3 . 4 8 ) $ 3 ,03 1 , 8 8 0 $ 27 1 ,76 6 . 0 2 Ar t i c le 39 11 0 - 0 0 0 0 · 3 1 3 . 3 0 -0 2 $ 2 ,57 2 , 8 1 3 . 2 0 $ 4,88 9 , 8 9 6 $ (2 , 3 1 7 , 0 8 2 . 8 0 ) $ 2,44 4 ,94 8 $ 12 7 ,86 5 . 2 0 Ar t i c le 40 Ge n e r a l Fu n d Re c e i v e d Last FY $ 1,747,520.48 11 0 - 0 0 0 0 -3 1 3 . 3 0 - 0 3 $ 87 7 , 3 7 1 . 3 8 $ 1,6 2 8 . 8 3 0 $ (7 5 1 . 4 5 8 . 6 2 ) $ 81 4 ,41 5 $ 62 , 9 5 6 . 3 8 Ar t i c le 40 Ed u c a t i o n Re c e i v e d to Da le this FY 897.393.06 11 0· 0 0 0 0 · 3 1 3 . 3 0 - 0 4 $ 1 ,05 0 , 0 0 7 . 3 4 $ 1,97 7 . 4 9 4 $ (9 2 7 .4 8 6 . 6 6 ) $ 98 8 ,74 7 $ 61 ,26 0 . 3 4 Ar t i c l e 42 Ge n e r a l Fu n d Int e res t Earned 11 0 · 0 0 0 0 · 3 1 3 .30 - 0 5 $ 1, 7 5 4 , 7 4 2 . 7 5 $ 3,29 3 ,7 65 $ (1 ,53 9 ,0 22 . 2 5 ) $ 1,64 6 ,88 3 $ 10 7, 86 0 .2 5 Ar t i c l e 42 Ed u c a t i o n 11 0 - 0 0 0 0 -3 13 . 3 0 · 0 6 $ 37 5 . 8 4 $ $ 37 5 . 8 4 $ $ 375 . 84 Ar t i c l e 44 $ 2,644,913.54 11 0-00 0 0 - 3 1 3 . 3 0 - 0 7 $ (5 0 0 , 0 5 3 . 6 0 ) $ (9 4 9 ,28 5 ) $ 44 9 ,23 1 . 4 0 $ (4 7 4 ,64 3 ) $ (2 5 , 4 1 1.10 ) Ar t i c l e 39 Ci t y Ho l d Ha r m l e s s 11 0- 0 0 0 0 - 3 1 3 . 3 0 - 0 8 $ (8 3 1 ,9 8 8 . 0 5) $ ( 1,2 50 ,00 0 ) $ 41 8 , 0 1 1 . 9 5 $ !6 2 5 , 0 0 0 ) $ (2 0 6 ,98 8 . 0 5 ) Ar t i c l e 39 Sc h o o l Ho l d Ha rm le s s $ 8 ,22 6 ,91 4 . 3 8 $ 15 . 6 5 4 . 4 5 9 $ (7 , 4 2 7 ,54 4 . 6 2 ) $ 7, 8 2 7 , 2 3 0 $ 39 9 , 6 8 4 . 8 8 En c u m b e red for $ 1,540.000.00 Va r i o u s Projects 24 2 -00 0 0 - 3 1 3 .30 - 0 0 $ 62 7 , 7 2 8 . 7 6 $ 1 ,0 3 4 . 9 5 0 $ (4 0 7 , 2 2 1 . 2 4) $ 51 7 . 4 7 5 $ 11 0 ,25 3 .76 Sp e c i a l Di s t r i c t s Av a i l a b l e lor $ 1,104,913.54 22 5 · 0 0 0 0 - 3 1 3 . 3 0 · 1 0 $ 89 7 . 3 9 3 . 0 6 $ $ 89 7 , 3 9 3 . 0 6 $ $ 89 7, 39 3 . 0 6 Ar t ic le 46 Sa l e s Ta x Ap p r opriation U:\M y Oo c u m e n t s \ M o n t h l y Re p o r t s \ 2 0 1 5 • 20 1 6 \ S a t e s Ta x \ S a l e s Ta x 20 1 6 . x l s x 040416 HC BOC Page 171 HARNETI COUNTY FINANCIAL SUMMARY REPORT Agenda Item q February, 2016 GENERAL FUND FYE 2016 Activity Total 2015-2016 (includes Percent Same Period Department FYE 2014 FYE 2015 Adjusted Budget encumbrances) to Date Last Fiscal Year Governing Body $ 164,631 $ 158,070 $ 277,153 $ 212,043 76.51% $ 185,131 Administration 250,759 280,372 263,472 310,352 117.79% 290,034 legal Services 103,351 8,609 69,617 130,715 187.76% 169,304 Engineering 1 37,582 Human Resources 254,738 247,154 238,649 197,793 82.88% 209,554 Board of Elections 303,532 305,481 442,442 205,811 46.52% 232,862 Finance 729,469 833,532 842,115 683,658 81.18% 691,873 Clerk of Court 77,704 79,320 411,771 59,922 14.55% 55,021 Tax 1,569,231 1,588,997 1,695,468 993,403 58.59% 983,995 General Services 140,485 153,360 161,852 93,379 57.69% 100,683 Fleet Maintenance 438,847 603,102 579,622 332,562 57.38% 382,026 Transportation 1,004,266 839,486 1,859,552 813,696 . 43 .76% 414,229 Transportation -Admin 194,790 209,741 219 ,108 97,341 44.43% 114,246 Facilities Maintenance 3,400,887 3,736,788 3,708,493 2,187,845 59.00% 1,979,593 Register of Deeds 730,166 695,654 790,642 475,390 60.13% 460,062 Information Technology 1,301,628 1,726,510 1,917,855 1,318,036 68.72% 1,251,811 GIS 432,327 436,602 615,987 39,502 6.41% 269,S48 Sheriff 10,166,283 10,205,366 10,202,126 5,695,333 55.82% 6,260,069 Campbell Deputies 354,232 389,674 480,900 270,137 56.17% 252,686 Harnett OPP 80,119 Sheriff's Department Grants 15,213 1,607 46,161 23,765 51.48% 1,607 Child Support Enforcement 66,257 70,126 76,867 41,462 53.94% 45,765 Governor's Highway Safety 26,536 Communications 1,219,142 1,389,574 1,722,028 1,062,391 61.69% 819,063 School Resource Officers 691,067 397,138 57.47% Jail 4,306,490 4,407,161 4,792,299 2,702,899 56.40% 2,797,677 Emergency Services 737,021 765,164 838,463 429,396 51.21% 461,948 Emergency Services Grant 32,000 60,000 0.00% Emergency Medical Service 3,991,897 4,080,768 4,368,228 2,532,432 57.97% 2,508,099 EMS Transport 1,083,318 1,144,801 1,155,913 713,007 61.68% 651,315 Rescue Districts 3,314,704 3,361,704 3,361,704 2,521,278 75.00% 2,241,136 Animal Services 376,744 431,707 498,413 245,654 49.29% 254,744 Medical Examiner 50,000 47,050 65,000 32,850 50.54% 29,650 JCPC Admin 4,516 8,040 2,312 28.76% 1,622 Public Safety Appropriations 124,334 79,180 71,168 47,984 67.42% 48,027 Emergency Telephone System 240,521 236,688 158,481 Radio System 300,204 246,495 285,000 97,951 34.37% 137,660 Harnett Regional Jetport 174,955 208,990 209,736 108,192 51.58% 125,390 Soil & Water 124,133 161,801 183,879 107,912 58.69% 97,060 Environmental Protection 4,000 4,000 4,000 4,000 100.00% 4,000 Forestry Program 114,849 112,289 111,511 61,211 54.89% 58,311 Economic/Physical Dev. App . 449,748 458,253 576,000 283,429 49 .21% 227,267 Industrial Development 776,301 1,382,346 744,272 340,130 45 .70% 496,501 Planning & In s pections 1,321,571 1,362,552 1,365,164 819,875 60.06% 845,611 Community Development (BG) 1,129 735 300 2 0.67% 257 Abandoned MFG Home 31,903 57,241 36,298 21,039 57.96% 29,732 Cooperative Extension 351,557 289,118 389,913 179,042 45.92% 159,851 CCR&R-Block Grant 31,419 25,623 16,836 10,294 61.14% 20,358 CCR&R -United Way 2,483 379 600 104 17.33% 299 Parents As Teachers 158,263 44,813 59,354 28,121 47.38% 24,372 Adolescent Parenting 59,107 60,321 70,295 46,456 66.09% 40,379 U:\My Oocuments\Monthly Repons\2015 -2016\February 2016-Financial Statements.xlsx 1 040416 HC BOC Page 172 HARNETT COUNTY FINANCIAL SUMMARY REPORT 3/21/2016 February, 2016 GENERAL FUND FYE 2016 Activity Total 2015.2016 (includes Percent Same Period Department FYE 2014 FYE 2015 Adjusted Budget encumbrances) to Date last Fiscal Year 4-H Teen Court & At Risk 45,686 49,773 26,164 52.57% Child Care Youth Training 27,367 50,723 27,799 Race to the Top 13,570 11,107 3,492 31.44% Adolescent Parenting -BJRH 3,789 14,200 12,375 Special Programs 24,495 12,019 49.07% Department on Aging 283,332 307,602 317,411 186,754 58.84% 184,672 Family Caregiver Support 51,769 64,108 64,360 38,350 59.59% 40,663 RSVP 73,276 77,658 77,258 47,205 61.10% 48,893 CAP-Disabled Adults 326,783 328,753 378,328 200,598 53.02% 214,525 Nutrition for Elderly 378,087 414,989 437,457 263,344 60.20% 252,236 Health 5,787,018 6,014,268 7,282,246 3,706,977 50.90% 3,669,182 Mental Health 815,679 605,679 605,679 454,259 75.00% 454,259 Social Services 9,359,396 10,155,398 10,585,495 649,444 6.14% 6,096,896 Public Assistance 7,829,453 7,905,017 10,088,010 6,017,401 59.65% 5,062,433 Veteran's Services 172,197 178,634 183,173 114,609 62.57% 114,750 Restitution 110,369 100,304 120,965 63,556 52.54% 65,911 Human Services App. 99,840 90,780 145,000 129,039 88.99% 75,298 Library 928,107 941,972 1,001,229 544,163 54.35% 595,856 Cultural & Recreational App. 100,000 150,000 153,000 3,000 1.96% Parks & Recreation 363,011 403,871 455,928 263,477 57.79% 243,453 Education Board of Education -current 20,523,700 21,523,700 21,267,993 14,178,662 66.67% 14,349,133 Board of Education -capital 136,885 Central Carolina -current 927,711 928,467 993,967 654,145 65.81% 611,645 Central Carolina-capital Central Carolina-works 25,000 25,000 25,000 0.00% lnterfund Transfers 1,903,876 64,701 283,334 43,334 15.29% 26,667 Debt Service 13,902,144 44,265,436 21,922,023 16,711,351 76.23% 10,345,384 Contingency 489,926 0.00% Total $ 105,234,405 $ 137,544,080 $ 123,548,490 $ 71,425,472 57.81% $ 69,118,521 Total 2015-2016 FYE 2016 Percent Same Period Revenues: FYE 2014 FYE 2015 Adjusted Budget Activity to Date last Fiscal Year Ad Valorem Taxes Real and Personal $ 54,120,822 $ 53,930,707 $ 54,295,343 $ 52,825,796 97.29% $ 51,562,086 Motor Vehicles 3,949,979 5,712,141 5,654,182 3,391,797 59.99% 2,759,436 Sales Tax 14,884,497 16,757,810 16,154,459 6,608,858 40.91% 5,805,660 Other taxes 1,037,719 1,053,493 1,200,000 670,548 55.88% 5 01,490 Permits & Fees 2,763,205 2,515,489 3,723,455 1,888,659 50.72% 1,403,092 Intergovernm ent al Revenue 19,304,274 18,884,854 19,546,841 9,780,131 50.03% 8,504,665 Sales & Services 7,658,151 7,838,973 8,840,960 4,438,319 50.20% 4,033,483 Other Revenues 3,451,519 3,741,739 3,549,982 1,589,788 44.78% 2,098,190 Rents, Concessions. & Fees 77,898 77,652 78,779 61,928 78.61 % 40,115 Other Finance Sources 857,548 29,108,938 6,388,000 5,938,000 92.96% 3,896 lnterfund Transfers 460,947 322,415 55,656 7,501 13.48% Fund Balance Appropriated 4 ,060,833 0 .00% Total $ 108,566,559 $ 139,944,211 $ 123,548,490 $ 87,201,325 70.58% $ 76,712,113 Revenues over/(under) expenditures $ 2,400,131 $ 15,775,853 7,593,592 U:\My Oocuments\M onthly Reports\2015 . 2016\February 2016 ·Fin ancia l Stat ement.s.xlsx 2 040416 HC BOC Page 173 HARNETI COUNTY FINANCIAL SUMMARY REPORT 3/21/2016 February, 2016 GENERAL FUND Cash and Investments Cash Tax lockbox MBS NCCMT Total February, 2016 $ 6,184,218 $ $ 5,460,397 $ 29,217,771 $ 40,862,386 January, 2016 $ 10,575,231 $ $ 4,715,250 $ 27,749,119 $ 43,039,600 December, 2015 $ 638,944 $ $ 4,715,250 $ 27,050,869 $ 32,405,064 November, 2015 $ $ $ 4,715,250 $ 24,697,474 $ 29,412,724 October, 2015 $ $ $ 3,415,750 $ 15,184,900 $ 18,600,650 September, 2015 $ $ $ 1,799,750 $ 16,262,992 $ 18,062,742 August, 2015 $ $ $ 1,799,750 $ 14,138,439 $ 15,938,189 July, 2015 $ 482,070 $ $ 1,199,750 $ 19,037,670 $ 20,719,491 June, 2015 $ 6,004,643 $ $ 999,750 $ 18,681,713 $ 25,686,107 May, 2015 $ 3,587,900 $ $ 1,149,750 $ 22 ,024,531 $ 26,762,181 April, 2015 $ 10,758,278 $ $ 1,099,750 $ 20,688,202 $ 32,546,230 March, 2015 $ 19,176,680 $ $ 1,099,750 $ 19,219,802 $ 39,496,232 February, 2015 $ 20,516,681 $ 475 $ 1,099,750 $ 16,737,860 $ 38,354,765 Debt Service and Transfer Requirements Current Year Outstanding Interest $ 4,627,480 $ 44,149,422 Principal 9,760,978 121,114,540 Transfers Out $ 14,388,459 $ 165,263,961 Estimated Fund Balance In the governmental fund financial statements, fund balan ce is composed of f ive classifications designed to disclose t he hierarchy of constraints placed on how fund balance can be spent. They are as follows: Non-Spendable Fund Balance- Restri cted Fund Balance- This classification incl udes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be m ai ntained intact. The classification includes amount that are restricted to speci fic purposes externally imposed by creditors or imposed by law. Thi s classification represents the portion of fund balance that can only be used for specific purposes Committed Fund Balance -imposed by major ity vote by a quorum of the County Commissioners, that can by adoption of an ordinance, commit fund balan ce. Assigned Fun d Balance - Unassigned Fund Balance - That portion of fund balance that the County intends to use for specific purposes. The County Commissioners have the authority to assign fund balance s. This cl ass ification represents the portion of fund balance that ha s not been assigned to another fund or is not restricted, committed, or assigned to specific purposes within the ge nera l fund. U:\My Oocumen ts\Monthly Reports\2015 · 2016\February 2016 ~Fina n cia l Statements.lC isx 3 040416 HC BOC Page 174 HARNETT COUNTY FINANCIAL SUMMARY REPORT February, 2016 GENERAL FUND Unassigned Fund Balance at June 30, 2015 Year to Date Revenues over/(under) Expenditures Remaining Debt Payments for this Year Outstanding budget amendments Year to Date Fund Balance Appropriated If the County were to stop operations at the end of this month and had no further receivables or payables, then this would be the estimated fund balance amount and its percentage of expenditures. Amount by which fund balance percentage will change {5,210,672) {4,060,833) $ 19,417,388 15,775,853 35,193,241 {9,271,505) $ 25,921,736 20.98% $ 1,235,485 17.89% The Harnett County Board of Commissioners have approved a fund balance policy which strives to maintain a minimum fund balance of 15%. U:\My Oowments\Monthly Reports\2015 -2016\February 2016 -Financial StatementS.)(ISx 3/21/2016 4 040416 HC BOC Page 175 HARNETI COUNTY FINANCIAL SUMMARY REPORT 3/21/2016 February, 2016 PUBLIC UTILITIES FUND FYE 2016 Activity Total 2015-2016 (includes Percent Same Period Department FYE 2014 FYE 2015 Adjusted Budget encumbrances) to Date Last Fiscal Year Admin/CSR/Meter Services $ 19,229,033 $ 40,477,963 $ 11,608,244 $ 3,794,149 32.68% $ 12,171,158 Water Treatment 3,671,291 3,965,881 4,466,822 2,473,274 55.37% 2,066,015 Wastewater Treatment 1,965,319 1,908,016 2,397,828 992,106 41.38% 1,136,506 Wastewater Treatment SHWW 1,860,402 1,869,169 2,337,624 1,113,836 47.65% 1,005,788 Distribution 3,383,463 3,607,800 4,607,923 2,227,432 48.34% 2,276,002 Collections 2,975,052 3,006,906 3,363,958 1,646,208 48.94% 1,686,967 Total $ 33,084,560 $ 54,835,735 $ 28,782,399 $ 12,247,005 42.55% $ 20,342,436 Total 2015-2016 FYE 2016 Percent Same Period Revenues: FYE 2014 FYE 2015 Adjusted Budget Activity to Date Last Fiscal Year Intergovernmental Revenue $ 3,703 $ 3,703 $ 3,703 $ 3,703 100.00% $ 3,703 Sales & Services 30,275,723 30,134,602 26,984,920 20,101,101 74.49% 19,723,587 Other Revenues 13,281,536 119,895,351 1,793,776 689,518 38.44% 1,091,038 Rents, Concess. & Feees 96 172 14 Other Finance Sources 473,683 13,731,430 1,440,315 lnterfund Transfers 150,000 1,452,130 652,130 Fund Balance Appropriated Total $ 44,184,741 $ 165,217,388 $ 28,782,399 $ 20,794,322 72.25% $ 22,910,787 Revenues over/(under) expenses $ 8,547,317 $ 2,568,351 Cash and Investments Cash Lockbox NCCMT Total February, 2016 $ 29,859,796 $ 3,507,930 $ 555,108 $ 33,922,833 January, 2016 $ 29,009,846 $ 3,010,381 $ 554,829 $ 32,575,057 December, 2015 $ 24,228,551 $ 3,662,494 $ 553,621 $ 28,444,666 Nov ember, 2015 $ 24,058,100 $ 3,267,333 $ 552,071 $ 27,877,505 October, 2015 $ 23,345,138 $ 3,268,625 $ 549,916 $ 27,163,678 September, 2015 $ 22,373,066 $ 3,142,028 $ 549,700 $ 26,064,794 August, 2015 $ 20,802,670 $ 3,162,849 $ 549,270 $ 24,514,789 July, 2015 $ 19,413,391 $ 3,411,495 $ 549,057 $ 23,373,942 June, 2015 $ 21,051,962 $ 2,602,443 $ 548,475 $ 24,202,879 May, 2015 $ 20,248,407 $ 2,565,016 $ 547,616 $ 23,361,038 April, 2015 $ 22,900,249 $ 2,178,132 $ 544,445 $ 25,622,825 March, 2015 $ 24,744,895 $ 1,692,081 $ 543,143 $ 26,980,119 Feb ruary, 2015 $ 25,190,426 $ 1,237,290 $ 524,212 $ 26,951,928 Debt Service and Transfer Requirements Current Year Outstanding Int erest $ 2,660,203 $ 29,561,667 Principal $ 4,621,391 80,736,891 Transfers Out $ $ 7,281,594 $ 110,298,558 U:\Mv Docume nts\Monthly Re ports\2015 · 20 16\Fe brua ry 2016 ·Financia l Statem ents.)l \sx 5 040416 HC BOC Page 176 HARNETI COUNTY FINANCIAL SUMMARY REPORT 3/21/2016 February, 2016 SOLID WASTE FUND FYE 2016 Activity Total 2015-2016 (includes Percent Same Period Department FYE 2014 FYE 2015 Adjusted Budget encumbrances) to Date Last Fiscal Year Solid Waste $ 5,161,897 $ 6,827,067 $ 6,044,255 $ 3,646,083 60.32% s 2,976,773 Total s 5,161,897 s 6,827,067 s 6,044,255 s 3,646,083 60.32% s 2,976,773 Total 2015-2016 FVE 2016 Percent Same Period Revenues : FVE 2014 FYE 2015 Adjusted Budget Activity to Date Last Fiscal Year Taxes $ 237,297 $ 234,276 s 239,000 s 1,209 0.51% $ 118,937 Intergovernmental Revenue 25,000 130,000 0.00% Sales & Services 5,006,315 5,165,089 5,111,300 4,381,205 85.72% 4,166,738 Other Revenues 378,116 499,631 101,650 134,854 132.67% 37,595 Rents, Concess. & Feees 243 276 356 119 Other Finance Sources 739,763 1,402,161 lnterfund Transfers Fund Balance Appropriated 462,305 0.00% Total $ 6,361,734 s 7,326,433 s 6,044,255 s 4 ,517,624 74.74% s 4,323,389 Re ve nues over/(under) expenses s 871,541 s 1,346,616 Cash and Investments Cash Sun Trust/BB& T First Bank NCCMT Total February, 2016 s 1,453,177 $ 504,847 s 477,173 $ 60,920 s 2,496,117 January, 2016 $ 1,838,468 s 495,010 s 469,484 $ 123,226 s 2,926,188 December, 2015 s 1,157,547 s 482,090 s 451,079 s 123,226 s 2,213,942 November, 2015 s 795,755 $ 469,359 s 439,402 s 123,226 s 1,827,742 October, 2015 s 160,831 s 456,391 s 422,540 $ 59,824 s 1,099,587 September, 2015 s 182,041 s 425,002 s 394,917 $ 59,824 s 1,061,785 August, 2015 s 372,508 s 425,018 s 395,198 s 59,824 s 1,252,548 July, 2015 s 350,504 s 379,409 s 365,494 $ s 1,095,407 June,2015 s 575,612 s 375,758 s 368,150 s $ 1,319,520 May, 2015 s 954,650 s 359,056 s 333,965 s 443,279 s 2,090,950 April, 2015 $ 1,166,505 s 343,248 s 333,965 $ 387,764 s 2,231,482 March, 2015 $ 1,347,614 s 316,331 $ 312,432 $ 387,764 s 2,364,141 February, 2015 $ 1,654,243 $ 296,898 $ 294,942 $ 415,261 $ 2,661,3 45 Debt Service and Transfer Requirements Current Year Outstanding Interest s 127,831 $ 335,060 Principal 510,937 2,700,856 Transfers Out s 638,767 s 3,035,917 U:\Mv Documents\Monthly Reports\2015 -2016\February 2016 -Financi al Statements:wlsx 6 040416 HC BOC Page 177 HARNEIT COUNTY FINANCIAL SUMMARY REPORT 3/21/2016 February, 2016 WORKER'S COMPENSATION FUND FYE 2016 Activity Total 2015-2016 (includes Percent Same Period Category FYE 2014 FYE 2015 Adjusted Budget encumbrances) to Date Last Fiscal Year Fi xed Cost $ $ 29,000 $ 35,000 $ 14,000 40 .00% $ 395,064 Claims Funded 2,979,815 123,636 1,865,000 889,646 47.70% Total $ 2,979,815 $ 152,636 $ 1,900,000 $ 903,646 47.56% $ 395,064 Total 2015-2016 FYE 2016 Percent Same Period Revenues: FYE 2014 FYE 2015 Adjusted Budget Activi~ to Date Last Fiscal Year Departmental Charge $ 1,704,822 $ 1,821,371 $ 1,750,000 $ 614,652 35.12% $ 587,444 Other revenues 280,523 250,795 150,000 152,377 101.58% $ 106,733 Fund Balance Appropriated Total $ 1,985,345 $ 2,072,166 $ 1,900,000 $ 767,029 40.37% $ 694,177 Revenues over/(under) expenses $ (136,617) $ 299,113 Cash and Investments Cash NCCMT Total February, 2016 $ 1,532,422 $ 1,211,772 $ 2,744,194 January, 2016 $ 1,556,134 $ 1,211,772 $ 2,767,906 December, 2015 $ 1,193,599 $ 1,211,772 $ 2,405,371 November, 2015 $ 1,273,094 $ 1,211,772 $ 2,484,866 October, 2015 $ 1,329,590 $ 1,211,772 $ 2,541,362 September, 2015 $ 1,238,990 $ 1,211,772 $ 2,450,762 August, 2015 $ 1,234,512 $ 1,211,772 $ 2,446,284 July, 2015 $ 1,140,351 $ 1,211,772 $ 2,352,123 June,2015 $ 1,588,872 $ 1,234,390 $ 2,823,262 May, 2015 $ 1,273,019 $ 562,026 $ 1,835,045 April, 2015 $ 1,248,082 $ 562,026 $ 1,810,108 March, 2015 $ 1,114,579 $ 562,026 $ 1,676,605 February, 2015 $ 710,218 $ 562,026 $ 1,272,244 Liability Liability as of July 1 $ 2,839,689 Current year claims and # of Claims this 52 changes in estimates 139,496 fiscal year Actual claim payments 86,934 Liability as of end of month $ 2,892,251 U:\My Documents\Monthly Reports\2015 -2016\February 2016 -Financial Statements.xlsx 7 040416 HC BOC Page 178 HAR NETT COUNTY FINANCIAL SUMMARY REPORT 3/21/2016 February, 20 16 EMPLOYEE CLIN IC FUND FYE 2016 Activi ty Tot a l 2015 -2016 (includes Percent Same Period Ca t egory FYE 2014 FYE 2015 Adjusted Budget encumbrances ) to Date Last Fiscal Year Employee Clinic $ 83,514 $ 121,440 $ 254,588 $ 79,233 31.12% $ 71,817 Total $ 83,514 $ 121,440 $ 25 4,5 88 $ 79,233 31.12% $ 71,817 Tot al 2015 -2016 FYE 2016 Percent Same Period Revenu e s : FYE 2014 FYE 2015 Adjusted Budget Activity to Date Last Fiscal Year Departmental Charge $ 282 ,984 $ 228 ,950 $ 254 ,588 $ 157,800 61 .98% $ 151,725 Other revenues Fund Balance Appropriated Total $ 282 ,984 $ 228 ,950 s 254,588 s 157,800 61.98% s 151,725 Reven u es over/(under) expenses $ 78,567 $ 79,908 Cash a nd In vestments Cash NCCMT Total Febru ary, 2016 $ 6 19,752 $ 29,241 $ 648,994 January, 2016 $ 6 12,081 $ 29,241 $ 641 ,322 December, 2015 $ 602,255 $ 29,241 s 631,496 November, 2015 $ 592,428 s 29,241 $ 621 ,670 October, 2015 $ 582,054 s 29,241 s 611,295 September, 2015 $ 554,324 $ 29,241 $ 583,566 August, 2015 $ 544,121 s 29,241 $ 573,362 Ju ly, 2015 $ 533,487 $ 2 9,241 $ 562,729 June,2015 $ 54 2,686 $ 29,241 $ 571,928 May, 2015 $ 534,685 $ 29,241 $ 563,926 April , 2015 $ 529,175 $ 29,241 $ 558,416 March, 2015 $ 5 20,088 $ 29 ,241 $ 549,330 February, 2015 $ 487,335 $ 29,241 $ 516,576 U:\My Oocuments\Mont hly Reports\2015 • 2016\Februarv 2016 -Financial Statements.xlsx 8 040416 HC BOC Page 179 HARNETT COUNTY FINANCIAL SUMMARY REPORT 3/21/2016 February, 2016 MEDICAL INSURANCE FUND FYE 2016 Activity Total 2015-2016 (includes Percent Same Period Category FYE 2014 FYE 2015 Adjusted Budget encumbrances) to Date Last Fiscal Year Paid Claims $ $ 5,205,337 $ 5,500,000 $ 3,950,705 71.83% $ 2,892,111 Fixed Cost 655,329 685,000 556,565 81.25% 525,017 Well ness 1,507 15,000 7,174 47 .83% Total $ $ 5,862,173 $ 6,200,000 $ 4,514,444 72 .81% $ 3,417,128 Total 2015-2016 FYE 2016 Percent Same Period Revenues: FYE 2014 FYE 2015 Adjusted Budget Activity to Date Last Fiscal Year Medical Premium Equivilents $ $ 6,687,178 $ 6,200,000 $ 4 ,327,291 69.80% $ 4,561,640 Other revenues 588,107 10,783 23,945 10,783 Total $ 588,107 $ 6,697,961 $ 6,200,000 $ 4 ,351,236 70.18% $ 4,572,423 Revenues over/(under) expenses $ (163,208) $ 1,155,295 Cash and Investments Cash NCCMT Total February, 2016 $ 1,354,214 $ 543,297 $ 1,897,511 January, 2016 $ 1,351,919 $ 543,297 $ 1,895,216 December, 2015 $ 1,222,061 $ 543,297 $ 1,765,358 November, 2015 $ 1,387,910 $ 543,297 $ 1,931,207 October, 2015 $ 1,290,451 $ 543,297 $ 1,833,748 September, 2015 $ 1,502,651 $ 543,297 $ 2,045,949 August, 2015 $ 1,387,676 $ 543,297 $ 1,930,973 July, 2015 $ 1,204,970 $ 543,297 $ 1,748,267 June,2015 $ 1,393,258 $ 543,297 $ 1,936,555 May, 2015 $ 1,272,924 $ 543,297 $ 1,816,222 April, 2015 $ 1,300,653 $ 543,297 $ 1,843,950 March, 2015 $ 1,212,904 $ 543,297 $ 1,756,201 February, 2015 $ 1,154,305 $ 543,297 $ 1,697,602 Medical Paid Claims Summary Employees & Total Loss Premium Pre-65 Retirees Membership Net Paid Claims Fixed Cost Ratio Equivalent July, 2015 800 1,162 $ 320,633.21 $ 54,321 .22 69.90% $ 536,400.67 August, 2015 802 1,167 $ 383,357.49 $ 56,855.83 82.22% $ 535,395.42 September, 2015 802 1,169 $ 465,117.51 $ 55,311.71 96.87% $ 537,247.45 October, 2015 808 1,174 $ 650,383.71 $ 103,099 .20 141.27% $ 533,359.40 November, 2015 808 1,173 $ 531,699.65 $ 59,136.25 108.27% $ 545,697.46 December, 2015 812 1,177 $ 448,829.22 $ 52,614.19 92 .18% $ 544,006.75 January, 2016 820 1,191 $ 418,525.31 $ 56,097.08 86.93% $ 545,957.33 February, 2016 829 1,199 $ 476,696.71 $ 57,028.00 97.08% $ 549,770.71 March, 2016 April, 2016 May, 2016 June,2016 Year to Date (membership= avg) 810 1,177 $ 3,695,242.81 $ 494,463.48 96.81% $ 4,327,835.19 U:\My Documents\Monthly Re-ports\2015 • 2016\February 2016 -Financial Statements. IdS• 9 040416 HC BOC Page 180 HARNETT COUNTY FINANCIAL SUMMARY REPORT 3/21/2016 February, 2016 DENTAL INSURANCE FUND FYE 2016 Activity Total 2015-2016 (includes Percent Same Period Category FYE 2014 FYE 2015 Adjusted Budget encumbrances) to Date Last Fiscal Year Paid Claims s s 306,584 s 506,000 s 193,016 38.15% $ 162,110 Fixed Cost 35,323 40,000 24,349 60.87% 23,440 Total $ s 341,907 s 546,000 $ 217,365 39 .81% $ 185,550 Total 2015-2016 FYE 2016 Percent Same Period Revenues: FYE 2014 FYE 2015 Adjusted Budget Activity to Date Last Fiscal Year Dental Premium Equivilents $ s 544,448 s 546,000 $ 239,965 43 .95% $ 417,897 Other revenues 166,433 Total s 544,448 s 546,000 s 239,965 43.95% s 584,330 Revenues over/(unde r) e xpens es $ 22 ,600 $ 398,780 Cash and Investments Cash NCCMT Total February, 2016 $ 262,475 $ s 262,475 January, 2016 $ 255,653 $ $ 255,653 December, 2015 $ 257,742 $ s 257,742 November, 2015 $ 251,362 $ $ 251 ,362 October, 2015 $ 242,621 $ s 242,621 September, 2015 $ 249,844 s $ 249,844 August, 2015 $ 249,852 $ $ 249,852 July , 2015 s 248,309 $ $ 248,309 June, 2015 s 247,472 $ s 247,472 May, 2015 s 246,685 s s 246,685 April, 2015 s 246,310 $ s 246,310 March, 2015 s 245,180 s s 245,180 February, 2015 s 232,347 s s 232,347 Dental Paid Claims Summary Total Loss Premium Total Employees Membership Net Paid Claims Fixed Cost Ratio Equivalent July, 2015 399 653 $ 14,975.40 s 6,090.62 70.66% s 29,813 .15 August, 2015 398 651 s 31,428.55 s 3,033 .66 116.21% s 29,654.93 September, 2015 399 650 s 28,953.57 s 3,033.66 106.13% s 30,140.02 October, 2015 403 654 s 30,171.44 s 3,033.66 114.74% s 28,939.38 November, 2015 400 651 s 19,987.80 s 3,010.36 74.83% s 30,735 .68 December, 2015 400 651 $ 20,264.80 $ 3,047.64 77.38% s 30,126.24 January, 2016 409 661 s 27,163.98 s 3 ,056.9 6 102.76% $ 29,408.35 February, 2016 412 663 s 20,728.10 s 3 ,075.6 0 76.42% s 31,147.59 March , 2016 April, 2016 May, 2016 June,2016 Year to Date (membersh ip = avg) 403 654 s 193,673.64 s 27 ,382.16 92 .12% s 239,965.34 U:\My Oocuments\Monthly Report.s\2015 -2016\February 2016 -Financial Statements.xlsx 10 040416 HC BOC Page 181