Agenda Packet April 23 2018PERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
MEETING AGENDA
304 South Morgan Street, Room 215
Roxboro, NC 27573-5245
336-597-1720
Fax 336-599-1609
April 23, 2018
9:00am
CALL TO ORDER………………………………………………. Chairman Kendrick
INVOCATION
PLEDGE OF ALLEGIANCE
DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA
INFORMAL COMMENTS
The Person County Board of Commissioners established a 10 minute segment
which is open for informal comments and/or questions from citizens of this
county on issues, other than those issues for which a public hearing has been
scheduled. The time will be divided equally among those wishing to comment.
It is requested that any person who wishes to address the Board, register with
the Clerk to the Board prior to the meeting.
ITEM #1
DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA
A. Approval of Minutes of March 19, 2018,
B. Approval of Minutes of April 9, 2018,
C. Budget Amendment #15,
D. Tax Adjustments for April 2018
a. Tax Releases
b. NC Vehicle Tax System pending refunds
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UNFINISHED BUSINESS:
NEW BUSINESS:
ITEM #2
Consideration of setting date/time for Public Hearing for Fire Tax ….. Russell Jones
ITEM #3
FY2017 Mental Health Refund ……………………………………………. Sybil Tate
ITEM #4
Cardinal Innovations Grant ………………………………………………… Sybil Tate
ITEM #5
Resolution Approving an Installment Financing Contract, a
Deed of Trust and Other Documents and Approving and
Authorizing Certain Actions in Connection with Financing a
Portion of the Cost of Various Projects – Public Safety Tower
Communication System Upgrade and County and School
Improvements ……………………………………………………….. Amy Wehrenberg
ITEM #6
Additional audit services required by the Office of the State
Auditor for the FY2017-18 reporting period …………………….... Amy Wehrenberg
ITEM #7
Recommended Capital Improvement Plan for FY2019-2023 …………… Heidi York
& Amy Wehrenberg
CHAIRMAN’S REPORT
MANAGER’S REPORT
COMMISSIONER REPORTS/COMMENTS
CLOSED SESSION #1
A motion to enter into Closed Session per General Statute 143-318.11(a)(3) for the
purpose to consult with the county attorney in order to preserve the attorney-client
privilege with the following individuals permitted to attend: County Manager, Heidi
York, Clerk to the Board, Brenda Reaves, County Attorney, Ron Aycock and
Assistant County Manager, Sybil Tate.
Note: All Items on the Agenda are for Discussion and Action as deemed appropriate
by the Board.
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March 19, 2018
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PERSON COUNTY BOARD OF COMMISSIONERS MARCH 19, 2018
MEMBERS PRESENT OTHERS PRESENT
Tracey L. Kendrick Heidi York, County Manager
Gordon Powell C. Ronald Aycock, County Attorney
Jimmy B. Clayton Brenda B. Reaves, Clerk to the Board
Kyle W. Puryear
B. Ray Jeffers
The Board of Commissioners for the County of Person, North Carolina, met in
regular session on Monday, March 19, 2018 at 9:00am in the Person County Office
Building Auditorium.
Chairman Kendrick called the meeting to order. Vice Chairman Powell gave an
invocation and Commissioner Puryear led the group in the Pledge of Allegiance.
DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA:
Chairman Kendrick requested an item to be added to the agenda for action to Call
for a Public Hearing related to the County’s Intent to Sell the Person County Home Health
and Hospice Agency.
A motion was made by Vice Chairman Powell and carried 5-0 to add an item to
the agenda for a Call for a Public Hearing related to the County’s Intent to Sell the Person
County Home Health and Hospice Agency, and to approve the agenda as adjusted.
RECOGNITION OF LOCAL GOVERNMENT DAY:
Chairman Kendrick welcomed the Person High School students enrolled in civics
and economics participating in Local Government Day to observe the Board of County
Commissioners in session. Chairman Kendrick, Vice Chairman Powell and
Commissioners Clayton, Jeffers and Puryear proceeded to introduce themselves and shared
general information about the office of a commissioner and general government. County
Manager, Heidi York, Assistant County Manager, Sybil Tate and Clerk to the Board,
Brenda Reaves also introduced themselves.
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RECOGNITION:
RESOLUTION OF APPRECIATION:
Chairman Kendrick read and presented a Resolution of Appreciation to Person
County Retiree Judith Akers.
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PUBLIC HEARING:
TEXT AMENDMENT REQUEST BY THE PERSON COUNTY PLANNING
STAFF TO AMEND THE ORDINANCE REGULATING AUTOMOBILE
GRAVEYARDS AND JUNKYARDS REGARDING COMMERCIAL AND
RESIDENTIAL JUNKYARDS:
A motion was made by Vice Chairman Powell and carried 5-0 to open the duly
advertised public hearing for a Text Amendment Request by the Person County Planning
Staff to Amend the Ordinance Regulating Automobile Graveyards and Junkyards
regarding Commercial and Residential Junkyards.
Planning Director, Lori Oakley shared the following presentation noting all zoning
ordinances and state statutes have been met for this public hearing. Ms. Oakley shared the
following presentation with the group related to the Planning Staff’s request to amend the
Ordinance regulating Automobile Graveyards and Junkyards:
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When asked about the penalties, Ms. Oakley stated it was her understanding that
the intent of the current ordinance was to apply to commercial properties; she said that as
she reviewed two current cases with the County Attorney, the current Ordinance gives
authority to apply criminal or civil penalties. Ms. Oakley noted as the intent was to apply
criminal penalties solely to commercial properties and civil penalties to apply only
residential. Ms. Oakley stated the proposed changes to the ordinance are to clarify the
intent more clearly. She added the current ordinance does not prohibit junkyards on
residential property. Ms. Oakley said that the Planning Department treats each parcel on
an individual basis noting junkyards complaints are violation complaint driven.
Commissioner Puryear noted the Board, in the past, has changed rules for good
intent, but often has unintended consequences. Ms. Oakley said she felt there would be
more unintended consequences if the current ordinance was not amended. As written, Ms.
Oakley stated the current ordinance would apply to commercial properties. She said she
has seven open junkyards cases that are residential that she is working with the citizens to
clean up property but she has no enforcement mechanism as the ordinance is currently
written. Ms. Oakley said if the ordinance was not amended, staff would only look at
commercial properties only; she has one violation currently.
Ms. Oakley noted the commercial junkyard definition is proposed to be amended
to state if there is a vehicle abandoned for a period of 90 days or more, staff would look for
unlicensed, unregistered vehicles that have been abandoned. If the cars are being worked
on, they are not considered a junkyard or an automobile graveyard.
Commissioner Jeffers asked Ms. Oakley how the proposed amendments would
affect existing business to which Ms. Oakley responded the text amendments as well as the
current ordinance, applies to commercial properties, in particular automobile repair shops,
but the residential properties are not covered in the current ordinance.
Ms. Oakley stated the State of NC no longer has business licenses which was a way
to clearly distinguish business from residential. She said the first step was for staff to work
with individuals with the goal being to clean up the property or to screen the property if
the individual was not actively working on the vehicle(s). If active work is being done on
the vehicle, staff would not pursue any type of violation enforcement. She added it would
be on a case by case basis.
Commissioner Jeffers asked Ms. Oakley how many current businesses would be
affected to which Ms. Oakley noted she did not know all the business but she had one that
she was actively working with at this time.
Chairman Kendrick confirmed that a business or residential appeal would come
before the Board of Commissioners and asked Ms. Oakley to address the term chronic
violator. Ms. Oakley stated NC General Statute specifically addresses chronic violators.
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There were no individuals appearing before the Board to speak in favor of or in
opposition to the Request by the Person County Planning Staff to Amend the Ordinance
Regulating Automobile Graveyards and Junkyards regarding Commercial and Residential
Junkyards.
A motion was made by Commissioner Jeffers and carried 5-0 to close the public
hearing for a Text Amendment Request by the Person County Planning Staff to Amend the
Ordinance Regulating Automobile Graveyards and Junkyards regarding Commercial and
Residential Junkyards.
CONSIDERATION TO GRANT OR DENY TEXT AMENDMENT REQUEST BY
THE PERSON COUNTY PLANNING STAFF TO AMEND THE ORDINANCE
REGULATING AUTOMOBILE GRAVEYARDS AND JUNKYARDS
REGARDING COMMERCIAL AND RESIDENTIAL JUNKYARDS:
Chairman Kendrick stated his appreciation of the ordinance noting over the course
of the last few years, several situations were resolved. He added his opposition to
government affecting individual’s property rights noting he has not seen any overreach by
county government.
Commissioner Puryear stated opposition to the proposed text amendment noting
his concern of overreach and the unintended consequences. He added he had calls from
businesses concerning the proposed text amendments.
Commissioner Jeffers stated his understanding of property values and how the
community looks but noted his concerns on how the proposed text amendments may affect
current businesses. He added that if the Board tabled action to a night meeting, it may allow
individuals/businesses more opportunity to be heard.
Commission Clayton noted that no businesses were present to speak at the public
hearing. Chairman Kendrick asked his fellow commissioners to touch base with
commercial businesses.
A motion was made by Commissioner Jeffers and carried 5-0 to table action on
this item until the Board’s next regular scheduled meeting on April 9, 2018.
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INFORMAL COMMENTS:
There were no comments from the public.
DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA:
A motion was made by Commissioner Jeffers and carried 5-0 to approve the
Consent Agenda with the following items:
A. Approval of Minutes of February 26, 2018,
B. Budget Amendment #13,
C. Updated Lease Agreement with Bushy Fork Grange, and
D. Tax Adjustments for March 2018
a. Tax Releases
b. NC Vehicle Tax System pending refunds
NEW BUSINESS:
VOLUNTEER FIRE DEPARTMENT FUNDING:
County Manager, Heidi York led the discussion related to the proposed options for
FY19 funding for Volunteer Fire Departments (VFDs). She recalled at the Board’s Annual
Retreat held on February 5, 2018, the Board focused on two funding scenarios and staff
was directed to bring this discussion back to the Board in March.
Ms. York stated the first funding scenario proposed by Vice Chairman Powell was
to increase the VFDs to a $1M base line of annual operating funds with the additional
revenue to be sourced through a proposed new quarter-cent sales tax which would be
dependent upon voter approval of the ballot referendum at the May 8, 2018 primary
election. The second funding proposal by Commissioner Jeffers shifts all VFD funding to
a newly created Fire Tax setting an annual funding amount at $1M which equates to a 49%
increase in funding.
Ms. York said the Fire Chiefs issued a proposal to provide a distribution formula
for each VFD which increased funding by 76% requiring $512,000 in new revenue to
fulfill; current funding of VFDs is $669,885 from the General Fund. If setting a fire tax
for the $669,885, the fire tax would be at 1.82cents or to set the fire tax rate at 2.72cents
for $1M funding level. Compared to the median price of a home in the County at $115,000,
Ms. York said the property tax bill would increase $31.28 for a fire tax rate at 2.72cents.
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Commissioner Jeffers, as commissioner representative on the Fire Chiefs
committee, noted he took the proposal to the Fire Chiefs for the $1M base line to which
there was agreement to sign contracts and work with the County. He added the Fire Chiefs
would like to retain the staggered 2% increase as was done for the City of Roxboro for fire
protection services. Commissioner Jeffers advocated for the full $1M funding to be set as
a fire tax, in lieu of appropriating any funds from the General Fund.
Commissioner Jeffers highlighted that having no fire department coverage could
increase property owner’s insurance by approximately $100. Ms. York noted there are
pockets within the county where property owners are not within the six mile radius to any
fire department meaning they are already paying a higher premium.
Commissioner Puryear noted as many residents value the service of VFDs, they do
not want a tax increase. He asked the County Manager to create a fire tax of 1.82cents for
the current funding level of $669,885, what could the property tax rate be decreased to for
a flat funding level to VFDS and no increase in the property tax bill. Ms. York stated the
current property tax rate of .70cents per $100 valuation could decrease by 1.51cents,
making the new property tax rate at .6849cents per $100 valuation. Ms. York added the
funding source of the additional funding to fulfill the $1M baseline would have to be
identified.
Ms. York noted that the value of one penny, on this date, on the fire tax generates
$368,444. She further noted the numbers will adjust slightly as the value of one penny on
the tax rate has increased from the retreat date to this date.
Commissioner Puryear noted a consensus among the Board that there was a need
for more funding for the VFDs and encouraged a bipartisan agreement to reach the $1M
baseline and to find the additional funds in the budget. He said he had made a promise to
the citizens of the county for the last 12 years to not support a tax increase. He encouraged
the Board to agree to a flat funding/fire tax causing no increase to the property tax owners.
Vice Chairman Powell stated his intent to fund the VFDs at the $1M baseline and
presented the idea of the Board matching funds from the VFDs community fundraisers for
a period of time.
Ms. York clarified that the value of one penny for a fire tax rate generates less than
the revenue that one penny on the tax rate generates because the City of Roxboro is not
included in the fire tax. She noted the $330,000 shortfall was more like $447,000 that she
would have to identify from the General Fund to reach the $1M baseline. Ms. York said
she would review the one-penny rates and send that information to the Board. She
indicated the proposal to set a fire tax and a recurring appropriation from the General Fund
would not be a true fire tax but a hybrid funding of the two sources of funding.
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Commissioner Jeffers advocated for the full funding to be set as a fire tax, as
requested by the VFDs. He also shared his concerns using the General Fund noting the
upcoming budget needs of county departments, which including public safety (EMS,
Sheriff), local schools and community college.
Chairman Kendrick reminded the group of the quarter-cent sales tax referendum on
the May ballot. He said by cutting the recycling center (nice to have but not a need to have)
the Board could have over $300,000. He also stated renegotiation of the landfill to allow
1000-2000 tons per day of waste, the County could increase revenue from $600,000 to
$1.19M-$2.1M.
A motion was made by Commissioner Puryear to direct the Manager to increase
funding for the local Volunteer Fire Departments (VFDs) up to $1M in scope using the
current VFDs budget appropriation of $669,885 to set a fire tax at 1.82 cents and to identify
the shortfall (approximate $440,000 for a fire tax or $330,000 from General Fund) in her
proposed budget as well as to reduce the property tax rate by 1.51cents.
A substitute motion was made by Commissioner Jeffers and failed 2-3 to set a
Fire Tax at 2.72cents. Commissioners Jeffers and Clayton voted in favor of the substitute
motion and Chairman Kendrick, Vice Chairman Powell and Commissioner Puryear voted
the substitute motion down.
The original motion made by Commissioner Puryear carried 4-1. Commissioner
Clayton cast the lone dissenting vote. Commissioner Jeffers stated his support of the VFDs
but he noted he did not support cutting services; he expressed his desire to persuade in a
bipartisan effort to find other ways to fund during the budget process.
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PERSON COUNTY JUVENILE CRIME PREVENTION COUNCIL FUNDING
RECOMMENDATION FOR FY2018-2019:
Each year, funding is made available through the North Carolina Department of Public
Safety / Division of Juvenile Justice to Person County and its Juvenile Crime Prevention Council
(JCPC) to be utilized to address the needs of youth at-risk for delinquency as well as adjudicated
undisciplined and delinquent youth in Person County. The funding comes in the form of a county
allocation. All 100 counties in the State of North Carolina are allocated funds based on the
population of youth in the county between the ages of 10 and 17.
Martha Pickett, JCPC Chair presented the County Funding Plan for FY19 in which
the county was requested to match the state funds in the amount of $52,533 representing a
20% match. Ms. Picket said this was an increase of $222 over the current fiscal year
funding. She noted funding was taken from the Administration budget and put into the
program budget.
Ms. Pickett stated appreciation to Vice Chairman Powell for attending the JCPC
meetings She also pointed out that on December 1, 2019, the law is changing for
individuals that are 16 and 17 years old; they will be considered juveniles in the system so
there will be an impact on the Sheriff’s budget due to not being able to house these
individuals in the jail. Ms. Pickett noted these juveniles will have to be transported to
another location costing the county $122 per day per person.
A motion was made by Commissioner Jeffers and carried 5-0 to approve the
Person County Funding Plan as recommended by the Juvenile Crime Prevention Council.
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MENTAL HEALTH FUNDING UPDATE:
Assistant County Manager, Sybil Tate stated Commissioner Jeffers requested an
update on how the Cardinal Innovations refunded monies that were not spent in FY16 for
mental health services. The total amount of the refund was $38,196. Ms. Tate reminded the
Board voted, at its October 16, 2017 meeting, to fund the following projects with these
additional funds:
Mental Health pilot in jails- $20,000
40 Naloxone kits and training for first responders- $3,500
Safe room at the hospital - $5,000
Drug Court - $9,696
Sheriff Dewey Jones provided an update on the Jail Pilot Program:
Sheriff’s jail pilot
1. Contracted a psychiatrist to visit the jail for 3 hours a week until the end of June.
2. Contracted a nurse to be available 7 days a week.
3. Contracted a peer-support specialist for 16 hours a week until the end of June.
4. Below are the outcomes that the Peer Support Specialist will track for the pilot
program:
o Peer support specialist will help screen and identify if there is a mental
health or substance abuse issue
% of individuals in jail who are screened for mental health issues by
peer support specialist
% of individuals screened who have mental health issues
o Peer support specialist will coordinate with family members to have
inmates’ medication brought to the jail.
Cost of medication, if supplied by Person County
o Peer support specialist will continue to be in contact with individuals post-
release to ensure that they are utilizing services.
Number of individuals served by peer support specialist in jail and
post-release
Recidivism rate for individuals served by peer support specialist
o Peer support specialist will divert eligible individuals to detox
Number of individuals diverted to detox
Number of nights in jail for individuals diverted to detox vs. regular
inmates
Amount of detox medication costs saved
o Peer support specialist will coordinate with DSS
Number of individuals served who are also engaged with DSS
services
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o Peer support specialist will help with coordination and collaboration
between agencies providing services to defendants
Number of community outreach presentations
Number of organizations in referral network
Ms. Tate provided a further update on the following initiatives:
Naloxone kits and training
All EMS, VFD’s, Sheriff and Police Department first responders have access to Naloxone
and have been trained to administer it. EMS reports that first responders used Narcan 30
times thus far in FY18. The first and only use of the new kits occurred within less than
one month of the training and distribution with one life saved.. EMS has additional
Naloxone supplies available to replace those that have been used.
Hospital Safe Room
An MOU with the hospital has been completed and the location for a “safer” room has
been identified. Hospital staff has researched equipment and is gathering purchasing and
installation quotes. Installation should be complete by the end of April.
Drug Court
Drug Court is on target to spend the additional funds. Below are Drug Court’s outcome
measures thus far in FY18:
Individuals served: 37
Individuals terminated as unsuccessful: 12
Individuals neutrally terminated: 2
Individual who transferred to another drug court by moving out of county: 1
Number of drug tests given: 808
Number of positive tests: 62 (8% of drug tests come back positive)
Individuals graduated: 7
Ms. Tate introduced Mr. Ric Bruton, Cardinal Innovations representative, noting
Person County has received an additional $30,343 refund from Cardinal for FY17, for
discussion and options on how to use those funds. Mr. Bruton answered questions from
the Board on the regulatory requirements for the County to comply with state statutes for
the unspent maintenance of effort mental health funding returned to the County. Mr. Bruton
stated the Board has the authority to make the local decision for the control of the funds to
be appropriated. He recommended the County to allocate to programs that support mental
health, substance abuse and intellectual developmental disabilities. He offered his
assistance for recommendations how to allocate these funds by extending/expanding core
programs, offering a community-wide training, an evidence-based program addressing
trauma.
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Mr. Bruton said Person County allocates around $325,000 maintenance of effort
funding pursuant to state statute 122.C.115 to support and help Medicaid and state funded
programs. Mr. Bruton said the returned unspent funds were not appropriated in the right
programs noting they have adjusted the budget so that there will likely be no funding left
unspent. Mr. Bruton noted services not reimbursable through Medicaid/Medicare that the
unspent funds could be used for included housing, transportation, employment, psych
services, training, indigent care, meds and labs.
Commissioner Jeffers advocated for the community-wide training as well as the
elementary after school program (Boys & Girls Club) he has mentioned before. He also
noted the opioid crisis issue in Person County.
Commissioner Clayton reiterated that the County did not have staff to administer
programming for the unspent return funds with the local level decision to be made by the
Board; he suggested creating a committee of the departmental partners to review the needs
of the county for the best use of the funds.
Vice Chairman Powell, a member of the Cardinal Governance Board, a newly
organized board for a 20-county catchment area said the Board will follow the general
statute requirements.
Chairman Kendrick suggested utilizing some of the funding for more housing for
the children that have to be transported out of county due to the lack thereof.
Commissioner Jeffers asked the Sheriff about training for law enforcement officer
as they encounter people with mental health issues to which the Sheriff said the 40-hour
training was beneficial but caused coverage issues for those taking the training.
County Attorney, Ron Aycock confirmed with Mr. Bruton that the local governing
board has complete discretion in use of the unspent, returned funding so long as, in their
opinion, it is devoted to the purposes outlined. Mr. Aycock asked Mr. Bruton to send to
the County the specific state statute for the regulatory requirements.
It was the consensus of the Board for staff to bring recommendations back to the
Board.
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REQUEST FOR APPROVAL OF NEW AUDIT FIRM’S PROPOSAL FOR
AUDITING SERVICES OF PERSON COUNTY’S ANNUAL FINANCIAL
STATEMENTS:
Finance Director, Amy Wehrenberg presented to the Board for consideration the
bid tabulation and recommendation on the audit firm to perform audit services for Person
County’s annual reporting requirements for fiscal year periods ending 2018, 2019 and
2020. Ms. Wehrenberg noted a Request for Proposal was released on February 15, 2018,
and four audit firms responded, including the County’s current auditor. After thorough
analysis of each proposal, Ms. Wehrenberg determined that Elliott Davis, PLLC, from
Raleigh, NC, presented the best responsive bid. Their estimate to perform the audit for
Person County for fiscal year ending 2018 is $9,000 less than our current auditor’s bid
($3,000 over lowest bid). Ms. Wehrenberg further noted that over the three year period,
the total cost reduction from our current auditor’s bid is $38,345. Ms. Wehrenberg stated
other variables that were in their favor over the other bid responses include (1) their close
proximity to Person County, (2) the fact that they are a larger firm which potentially offers
additional audit staffing resources, (3) high recommendations from one of the counties they
are currently serving, and (4) their overall ability to submit financial reports to the Local
Government Commission prior to November 30th compared to the other bidders.
Ms. Wehrenberg said the current auditor, who the County has retained for the last
20 years, has had some staffing resource issues. She added the County’s audit report had
some late submittals to the Local Government Commission which was due on October 31st.
Ms. Wehrenberg stated the late submittals were due to the additional requirements and that
few counties met the deadline. She added that the late submittals did not render any
monetary penalties.
Ms. Wehrenberg requested the Board to approve the audit firm’s three year
proposal as recommended, and approve execution of first year’s contract for reporting year
2017-18.
A motion was made by Commissioner Clayton and carried 5-0 to approve the
Finance Director’s recommendation of Elliott Davis, PLLC with their audit firm’s three
year proposal and approve execution of first year’s contract for reporting year 2017-18.
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RFP RESPONSE
HIGHLIGHTS MAULDIN & JENKINS W GREENE CO CPA ELLIOTT DAVIS
WINSTON, WILLIAMS,
CREECH, EVANS & CO., LLP
COST (NOT TO EXCEED)
FY 2017‐18 $54,000 $57,000 $57,000 $66,000
FY 2018‐19 $54,000 $57,000 $58,150 $69,300
FY 2019‐20 $55,500 $57,000 $59,300 $72,765
THREE (3) YEAR COST $163,500 $171,000 $174,450 $208,065
AVG. YEARLY COST
FOR THREE (3) YEARS $54,500 $57,000 $58,150 $69,355
AFIR Yes‐Will provide this
service as part of the
audit cost
Yes‐Will provide this
service as part of the audit
cost
Yes‐Will provide this
service as part of the
audit cost
FY 18; $1,500
FY 19; $1,575
FY20; $1,655
TRAVEL COSTS Included in base
estimate No charges for travel
$3,000 included in base
estimate No charges for travel
TOTAL THREE (3) YEAR
COST‐INCLUDING AFIR
& TRAVEL
$163,500 $171,000 $174,450 $212,795
COST OF MAJOR
FEDERAL PROGRAMS
$2K‐$3K per program
over anticipated four
Not listed $2,500 per program over
anticipated three
$1,000‐$1100 ea over four in
Single Audit
$1000‐$1100 ea over 4
major programs
CAAT (Computer
Assisted Audit
Techniques)
YES YES YES‐ACTIVE DATA
SOFTWARE
YES‐PPC's SMART Practice
Aids
DATA EXTRACTION YES YES YES‐ACTIVE DATA
SOFTWARE
YES
FAMILIAR WITH
SOFTWARE SYSTEMS
YES YES YES, MAJORITY OF
CLIENTS USE MUNIS
YES
PARTNER(S) IN
CHARGE OF
ENGAGEMENT (TIME
ON SITE)
ON SITE 100% OF THE
DURATION OF THE
AUDIT
ON SITE 100% OF THE
DURATION OF THE AUDIT
ON SITE 6% OF THE
DURATION OF THE AUDIT
NO MENTION; PARTNER
DOESN'T TYPICALLY COME
ON‐SITE, DELEGATES TO A
MANAGER
AUDIT TEAM (% TIME
BREAKDOWN)
EACH AUDIT TEAM
MEMBER WOULD
SPEND APPROX. 60%
OF THEIR TIME ON THE
AUDIT
EACH AUDIT TEAM
MEMBER WOULD SPEND
APPROX. 33% OF THEIR
TIME ON THE AUDIT
SHAREHOLDERS 10%
MANAGERS 24%
SR STAFF 33%
STAFF 33%
PARTNER 6%
MANAGER 67%
STAFF ACCT 27%
CFE (CERTIFIED FRAUD
EXAMINER) ON
STAFF/ON SITE
PARTNER IN CHARGE‐
ON SITE 100% OF THE
DURATION OF THE
AUDIT
PARTNER IN CHARGE‐ON
SITE 100% OF THE
DURATION OF THE AUDIT
SENIOR OR MANAGER IN
CHARGE‐ON SITE 100%
OF THE DURATION OF
THE AUDIT
NO MENTION
LIABILITY INSURANCE $1 MILLION/CLAIM
$5 MILL/AGG.
$1 MILLION/CLAIM
$2 MILL/AGG.
$1 MILLION/CLAIM
$2 MILL/AGG.
$1 MILLION/CLAIM
$2 MILL/AGG.
LOCATIONS ATLANTA, GA WHITEVILLE & CAROLINA
BEACH
RALEIGH & CHARLOTTE OXFORD
YEARS IN
BUSINESS/FORMED
1918 2013; LESS THAN SIX (6)
YEARS
1920 1985
SIZE OF STAFF 22 PARTNERS,
DIRECTORS & MGRS
DEDICATED TO GOV'T
CLIENTS
1 PARTNER
3 STAFF MEMBERS
15 SHAREHOLDERS; 39
MGRS; 149 STAFF…FOR
OUR AUDIT, THEY WILL
UTILIZE 1 PARTNER; 1 SR
MGR; 1 MGR; 3 STAFF
MEMBERS
16 EMPLOYEES‐‐3 PARTNERS,
3 CPAS & 10 STAFF ACCTS
1 PARTNER
2 MANAGERS
2 STAFF ACCOUNTANTS
OTHER COUNTIES
CURRENTLY SERVING
ORANGE COUNTY; 2016 ROBESON COUNTY; 2014
SAMPSON COUNTY; 2017
WAKE COUNTY; 2014
CABARRUS COUNTY; 2017
PERSON COUNTY; 1997
GRANVILLE COUNTY; 1989
WARREN COUNTY; 2003
FRANKLIN COUNTY; 2007
DATES OF NC COUNTY
CAFR SUBMITTALS TO
LGC
ORANGE COUNTY
FY 2017; Dec 12, 2017
FY 2016; Feb 27, 2017
ROBESON COUNTY
FY 2015; Dec 30, 2015
FY 2014; Dec 30, 2014
SAMPSON COUNTY
FY 2017; Nov 20, 2017
WAKE COUNTY
FY 2017; Nov 29, 2017
FY 2016; Dec 7, 2016
FY 2015; Nov 13, 2015
FY 2014; Nov 25, 2014
CABARRUS COUNTY
FY 2017; Nov 14, 2017
PERSON COUNTY
FY 2017; Dec 21, 2017
FY 2016; Dec 22, 2016
FY 2015; Dec 22, 2015
GRANVILLE COUNTY
FY 2017; Jan 29, 2018
FY 2016; Dec 28, 2016
FY 2015; Jan 22, 2016
WARREN COUNTY
FY 2017; Jan 23, 2018
FY 2016; Dec 28, 2016
FY 2015; Dec 8, 2015
FRANKLIN COUNTY
FY 2017; Jan 29, 2018
FY 2016; Dec 20, 2016
FY 2015; Jan 25, 2016
OVERALL REFERENCE
RESPONSES
Satisfactory Satisfactory Satisfactory Not required since we can
attest to our own experience
RECOMMENDED (BEST
RESPONSE)
Firm is long distance
away; late submittals;
fairly new presence in
NC‐‐only one County;
several grammatical
errors in proposal
Smallest firm; concern on
lack of resources; late
submittals
RECOMMENDED:
Large firm; offers to
dedicate more staff to
audit; short distance;
competitive offer; best
able to meet report
deadlines compared to
other bidders
Highest bid; smaller firm; lack
of resources; late submittals
Person County's RFP‐Audit Services
Bid Comparison Summary
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28
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29
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30
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PLANNING BOARD, BOARD OF ADJUSTMENT AND REGION K AGING
ADVISORY COUNCIL:
Clerk to the Board, Brenda Reaves requested Board action on the following boards,
as deemed appropriate:
Planning Board
3-Year Term: 1 position available
1) Tabitha George requested appointment
A motion was made by Commissioner Jeffers and carried 5-0 to appoint Tabitha
George to the Planning Board for a 3-year term.
Board of Adjustment
Unspecified Term: 1 position to serve as an alternate
1) Andrew “Andy” Withers requested appointment
Ms. Reaves stated that Commissioner Jeffers asked staff to look into a complaint
he received related to a member of the Board of Adjustment (BOA) not attending the
meetings. Planning Director, Lori Oakley confirmed that since she became the Planning
Director in April 2017, Ms. Felicia Swann has not attended any BOA meetings. Ms.
Reaves noted that the BOA meets monthly, as needed, based on any requests that come
before the BOA; the BOA has not had monthly meetings. The Clerk presented information
related to Ms. Swann’s BOA meeting attendance. The Board of Commissioners has the
authority to rescind Ms. Swann’s appointment due to excessive absenteeism and to appoint
another citizen to serve in that position. Should the Board rescind Ms. Swann’s
appointment due to excessive absenteeism, Ms. Reaves recommended the appointment of
Mr. Withers to serve out the unexpired term of Ms. Swann to June 30, 2019. Should the
Board decide to leave Ms. Swann’s appointment in place, Ms. Reaves recommended Mr.
Withers to be appointed to serve as an alternate on the BOA.
Commissioner Clayton asked the County Attorney, Ron Aycock in the case where
a BOA member has to recuse themself, how does that affect the quorum. Mr. Aycock
stated that in order to have quorum, a quorum must be present at the beginning of the
meeting. If a member discloses a conflict, that recusal does not affect the existence of a
quorum. Mr. Aycock said the current BOA local rules requires a quorum of four of the
five members to be in attendance. If then, one of the four declares a conflict, the meeting
could still continue. Mr. Aycock recommended an alternate on the BOA, in that case, they
could step in, if needed.
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A motion was made by Commissioner Jeffers to rescind Felicia Swann’s
appointment on the BOA due to excessive absenteeism and to appoint Andrew “Andy”
Withers to fulfill the unexpired term to June 30, 2019. Chairman Kendrick suggested
moving Felicia Swann to the alternate position in lieu of rescinding her appointment.
Commissioner Jeffers offered an amended motion that carried 5-0 to move Felicia Swann
to the alternate position with an unspecified terms and to appoint Andrew “Andy” Withers
to fulfill the unexpired term to June 30, 2019 on the Board of Adjustment.
Regional K Aging Advisory Council
3-Year Term: 3 positions available
Ms. Jillian Hardin, Director, Area Agency on Aging with Kerr –Tar Regional Council of
Governments recruited and requested the following citizens be considered for appointment
to represent Person County, each for a 3-year term starting immediately. The terms would
expire on December 31, 2020.
Ms. Ethel Girvin of 2555 Dink Ashley Rd, Timberlake
Mr. Don Shotwell of 81 Cavel-Chub Rd, Roxboro
Ms. Louise Wright-Oliver of PO BO 1921, Roxboro
A motion was made by Commissioner Jeffers and carried 5-0 to appoint Ethel
Girvin of 2555 Dink Ashley Rd, Timberlake, Don Shotwell of 81 Cavel-Chub Rd,
Roxboro, and Louise Wright-Oliver of PO BO 1921, Roxboro to the Regional K Aging
Advisory Council, each for a term expiring on December 31, 2020.
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March 19, 2018
32
CALL FOR A PUBLIC HEARING RELATED TO THE COUNTY’S INTENT TO
SELL THE PERSON COUNTY HOME HEALTH AND HOSPICE AGENCY:
County Attorney, Ron Aycock stated the Board has previously decided to explore
the feasibility of selling the County’s Medicare-Certified Home Health and Hospice
Agency operations. Mr. Aycock said that NC law in Chapter 131E provides for a detailed
procedure to sell such assets with a substantial amount of opportunities for public input.
The first step is for the Board to set its public hearing with the required public notice. Mr.
Aycock noted that prior to the adoption of a Resolution Declaring Its Intent to Sell the
Person County Home Health and Hospice Agency, the legal process required a public
hearing with sufficient notice and that at least five (5) prospective purchasers be solicited.
Mr. Aycock requested the Board to Call for a Public Hearing to be held at the
Board’s next regular scheduled meeting, on April 9, 2018 at 7:00pm and to authorize staff
to issue publication of public notice for this process to go forward.
A motion was made by Vice Chairman Powell and carried 5-0 to Call for a Public
Hearing to be held on April 9, 2018 at 7:00pm for public input related to the County’s
Intent to Sell the Person County Home Health and Hospice Agency.
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CHAIRMAN’S REPORT:
Chairman Kendrick reported that Hall’s Way won an award in the “Best Adaptive
Reuse Project” category for excellence in downtown revitalization at the NC Main Street
Awards Ceremony.
Chairman Kendrick announced the First Lieutenant Guy J. Winstead Highway
dedication ceremony would be held on April 17, 2018 at 3:00pm at the Person County
Museum of History (in the case of bad weather, in the County Office Building
Auditorium.). He commended Vice Chairman Powell on his diligent work with the state
of NC and the family to bring this project to fruition.
MANAGER’S REPORT:
County Manager, Heidi York reported she had met with a quarter of the
departments reviewing the upcoming budget requests identifying needs as well as to
increase efficiency.
Ms. York stated the Economic Development Commission would be meeting on
March 27, 2018 at 4:00pm in the S-100 room at Piedmont Community College.
COMMISSIONER REPORT/COMMENTS:
Commissioner Puryear noted the honor and privilege it was to be invited by the
White House Administration, along with other NC Commissioners, to increase
transparency and dialogue. He added it was a pleasure to meet the Vice President of the
United States and other distinct individuals.
Vice Chairman Powell commented the trip to the White House was a rare
opportunity and worth the effort. He said his take-away was the contacts gained related to
infrastructure and the opioid crisis.
Commissioner Clayton commented the trip to the White House was worthwhile
noting he stressed the Person County economic resources during a panel discussion, and
afterwards he spoke with Mr. Kluttz of the Dept. of Commerce and Mr. Doug Little with
the Dept. of Energy. Commissioner Clayton stated at the Legislative Conference, he found
out that the regulations of the waters of the US have been pushed back some.
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March 19, 2018
34
Commissioner Jeffers said he attended the NACo Legislative Conference in
Washington, DC and met with the Governmental Relations staff for the President
discussing infrastructure cost-sharing. He added he set up a meeting with congressional
staff and two senators to promote the County’s economic resources which was affected by
the bad weather. He said that meeting would be rescheduled; however he and
Commissioner Clayton had breakfast with Congressman Walker to promote the County
economic project, and they spoke with Senators Tillis and Burr who gave them a contact
for the rescheduled meeting.
ADJOURNMENT:
A motion was made by Commissioner Jeffers and carried 5-0 to adjourn the
meeting at 11:07am.
_____________________________ ______________________________
Brenda B. Reaves Tracey L. Kendrick
Clerk to the Board Chairman
(Draft Board minutes are subject to Board approval).
36
April 9, 2018
1
PERSON COUNTY BOARD OF COMMISSIONERS APRIL 9, 2018
MEMBERS PRESENT OTHERS PRESENT
Tracey L. Kendrick Heidi York, County Manager
Gordon Powell C. Ronald Aycock, County Attorney
Jimmy B. Clayton Brenda B. Reaves, Clerk to the Board
Kyle W. Puryear
B. Ray Jeffers
The Board of Commissioners for the County of Person, North Carolina, met in
regular session on Monday, April 9, 2018 at 7:00pm in the Commissioners’ meeting room
in the Person County Office Building.
Chairman Kendrick called the meeting to order. Vice Chairman Powell gave an
invocation and Commissioner Puryear led the group in the Pledge of Allegiance.
DISCUSSION/ADJUSTMENT/APPROVAL OF AGENDA:
Vice Chairman Powell stated the need to add an item to the agenda for Clarification
of FY2018-2019 Funding for Volunteer Fire Departments and asked that the item be added
to Unfinished Business.
A motion was made by Commissioner Puryear and carried 5-0 to add an item to
the agenda for Clarification of FY2018-2019 Funding for Volunteer Fire Departments and
to approve the agenda as adjusted.
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April 9, 2018
2
RECOGNITION:
PROCLAMATION FOR THE WEEK OF THE YOUNG CHILD:
Chairman Kendrick read and presented a Proclamation designating the Week of
the Young Child to Person County’s Partnership for Children Director, Ann Garrard.
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April 9, 2018
3
PUBLIC HEARING:
RESOLUTION DECLARING ITS INTENT TO SELL THE PERSON COUNTY
HOME HEALTH AND HOSPICE AGENCY:
A motion was made by Commissioner Jeffers and carried 5-0 to open the duly
advertised public hearing for public comments related to adopting a Resolution Declaring
Its Intent to Sell the Person County Home Health and Hospice Agency.
County Attorney, Ron Aycock stated the Board had previously indicated an interest
in exploring the sale of County’s Home Health and Hospice Agency. He stated in order to
further proceed in the process, the law required a complicated process to ensure a market
for such sale, to ensure the people of Person County receiving such services through
agencies continue to receive the needed support and services, and to assure the County for
a good price. Mr. Aycock said the public hearing set was a required first step of a long
process to determine whether or not the Board desired to sell, and if so, to whom and at
what price. Mr. Aycock presented a Resolution Declaring Its Intent to Sell the Person
County Home Health and Hospice Agency that stated all those intents to start the process,
if adopted by the Board of Commissioners.
There were no individuals appearing before the Board to speak in favor of the
Resolution Declaring Its Intent to Sell the Person County Home Health and Hospice
Agency.
Individuals appearing before the Board to speak in opposition to the Resolution
Declaring Its Intent to Sell the Person County Home Health and Hospice Agency were:
Ms. Deborah Tinnin of 811 N. Main Street, Apt. C, Roxboro, and a Social Worker
for the Home Health and Hospice Agency for the last six years and an employee of Person
County Government for 25 years asked the Board to consider the people served by the
agency. She added they serve Person County residents and are many times known already
through the community. Ms. Tinnin said an agency from out of town would extend the
response time to provide a needed support. Ms. Tinnin wanted the Board to think of the
employees of the agency, i.e., nurses, chaplain, C&As that are the front line folks that care
for patients.
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April 9, 2018
4
Ms. Michelle White of 5030 Semora Road, Roxboro stated she serves as a Nursing
Manager/Supervisor for Home Health and Hospice, the Health Department Clinic and
Preparedness and Safety. Ms. White stated her opposition to the Board’s Intent to Sell.
She shared that the Hospice program has been profitable every year except for 2016, and
in fact, covered the losses in the Home Health Agency for four years, was #1 hospice in
Person County. Ms. White requested the Board’s consideration to retain the Hospice
program along with the nine positions that would be eliminated if sold. Ms. White noted
the Hospice program provides aid to clients and ongoing mental health support to clients’
families. She further noted that private hospice providers can cap the percentage of
indigent or poor payer sources when public organizations do not. Ms. White said the Board
of Health was in full support for the Hospice continuing as a county program. She added
Hospice can be self-sufficient and help fund other county programs. Ms. White stated the
hospice staff are vital to emergency plans as shelter staff and to fulfill the duties as the
strategic national stockpile which is a public health program mandated by the state. Ms.
White said that after the initial profit of a sale of Home Health and Hospice Agency, there
will be a greater monetary demand on the county for other state mandated public health
programs. Ms. White invited the group to come to the Health Department to learn more
about these considerations that she shared.
Commissioner Jeffers asked if the employees referred to were full time or part time
to which the County Manager, Heidi York noted they were all currently full time
employees.
A motion was made by Vice Chairman Powell and carried 5-0 to close the public
hearing for public comments related to the Board adopting a Resolution Declaring Its Intent
to Sell the Person County Home Health and Hospice Agency.
CONSIDERATION TO ADOPT A RESOLUTION DECLARING ITS INTENT TO
SELL PERSON COUNTY HOME HEALTH AND HOSPICE AGENCY:
A motion was made by Commissioner Clayton to keep the Hospice program and
offer the Home Health program for sale, and to reflect such in a Resolution Declaring Its
Intent to Sell Person County Home Health.
When asked for more information, County Manager, Heidi York stated the County
funds $1.2M to support the Health Department’s budget for programming. She added that
the Home Health and Hospice did not have individual budgets and were included in the
overall Health Department budget. Ms. York asked the Health Director, Janet Clayton to
share further information.
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April 9, 2018
5
Ms. Clayton confirmed the Health Department budget of $3.9M was broken down
into two budgets: 1) Public Health and 2) Environmental Health. She added the Public
Health budget was internally divided into approximately 20 different budgets, each
representing a program. Ms. Clayton said the County contributed $230,000 approximately
to the Home Health program while Hospice did not receive any local funding and profited
by $13,000.
Commissioner Puryear stated as the Board of Commissioners were invited to visit
and further discuss with the staff of Home Health and Hospice, he asked Commissioner
Clayton to consider suspending his motion to visit and further hear staff prior to a decision.
Chairman Kendrick stated the Resolution Declaring Its Intent to Sell the Person
County Home Health and Hospice Agency was the first step to start the process to gather
information to get to the point whereby the Board will have to vote once the bids are
received and there was an offer on the table whether to sell or not to sell. Chairman
Kendrick recommended to move forward with the resolution.
Commissioner Jeffers stated it was not his intent to declare his intent to sell or not
to sell at this date.
Ms. York clarified the process was to conduct a public hearing on this date to start
the process, work with the consultant to prepare a RFP and market such RFP with a
deadline to submit proposals. Once the proposals are received, the consultant will bring
before the Board for consideration (there may be many proposals or zero proposals
submitted.) Ms. York said the Board may then enter into negotiations should a proposal
be deemed favorable or the Board may decline any and all proposals. Ms. York confirmed
the Resolution Declaring Its Intent to Sell the Person County Home Health and Hospice,
whether combined or individually in no way commits the Board to a sale of either program.
Ms. York noted the consultant recommended that the County bundle the two services into
one sell as the hospice program has the potential to be more lucrative.
The motion made by Commissioner Clayton to keep the Hospice program and offer
Home Health program for sale and to reflect such in a Resolution Declaring Its Intent to
Sell Person County Home Health failed 2-3. Commissioners Clayton and Jeffers voted in
favor of the motion whereby Chairman Kendrick, Vice Chairman Powell and
Commissioner Puryear cast the dissenting votes.
A motion was made by Commissioner Jeffers and carried 4-1 to table action for
consideration to adopt a Resolution Declaring Its Intent to Sell Person County Home Health
and Hospice Agency until the Board’s meeting on May 21, 2018. Chairman Clayton cast
the lone dissenting vote.
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April 9, 2018
6
PUBLIC HEARING:
CONSIDERATION OF WHETHER TO FINANCE A PORTION OF THE COST
OF VARIOUS PROJECTS AND THE MAKING OF RELATED
DETERMINATIONS:
A motion was made by Commissioner Puryear and carried 5-0 to open the duly
advertised public hearing for consideration to finance a portion of the costs of various
projects and the making of related determinations.
Finance Director, Amy Wehrenberg stated the purpose of this public hearing was
to consider (a) whether the Board of Commissioners for Person County should approve a
proposed installment financing agreement to finance a portion of the cost to construct two
public safety communication towers, the purchase and installation of related facilities and
equipment, as well as building improvements to Huck Sansbury Gym, roofing replacement
for Early Intervention, cooling tower replacements for Helena and Stories Creek
Elementary Schools, and heating and cooling valve replacements at South Elementary (the
“Project”) and (b) whether the County should acquire from the Person County Board of
Education an interest in the real and personal property included in the Northern Middle
School project for use by the Person County Schools. The financing proceeds will not
exceed $4.75M for these projects with the remaining cost to be sourced from local
contingency funds in the General Fund. The County will secure the repayment of the
financing by pledging Northern Middle School as collateral for the financing.
Ms. Wehrenberg noted a proposal to finance a portion of the cost of this Project for
$4.4M was received from BB&T (the “Proposal”) in response to the County’s RFP which
was sent to a number of financial institutions, and appeared to be the most favorable of
proposals received by the County for this purpose.
Ms. Wehrenberg requested of the Board of Commissioners, after the public hearing
was closed, to consider making the following determinations:
1) to proceed with the proposed financing and approve on a preliminary basis the
Proposal to finance a portion of the cost of the Project in an amount not to
exceed $4,750,000;
2) to authorize the Chairman of the Board of Commissioners and the County
Manager and Finance Director of the County to negotiate further with the
approved lender, the terms of the Proposal as they consider to be necessary or
advisable, and execute and deliver the Proposal to BB&T at such time they
determine to be appropriate; and
3) to acquire from the Board of Education an interest in the real and personal
property included in the Northern Middle School project, including specifically
the site of Northern Middle School and the improvements thereon, for use by
the Person County Schools.
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April 9, 2018
7
Ms. Wehrenberg presented the RFP bid tabs:
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April 9, 2018
8
Commissioner Jeffers asked Ms. Wehrenberg about the capital projects included
with the proposed financing to which she responded the schools’ deemed critical. She
added the County could have deferred to future years but these critical capital needs were
causing real maintenance issues for the schools. Ms. Wehrenberg noted when the capital
projects were requested, she determined a better strategy to include with the tower
financing.
Chairman Kendrick stated a more favorable outcome on the financing based on
bundling the capital projects with the tower projects. Ms. Wehrenberg stated by adding
the capital projects to the tower financing, it would entice more lenders to bid on the RFP.
Dr. Rodney Peterson, Superintendent of Person County Schools confirmed for the
Board that the Southern Middle School fire system meets the current regulations while the
Northern Middle School’s fire system required an upgrade due to recent renovation. Dr.
Peterson stated support of the recommendation by the Finance Director for the schools’
building improvements.
The following individual appeared before the Board to speak in favor of the
proposed financing for a portion of the costs of various projects and the making of related
determinations:
Mr. Leigh Woodall of 200 Reade Drive, Roxboro stated the Finance Director has
put together a reasonable proposal for the financing of the cell towers, communication
equipment and the capital projects. Mr. Woodall recommended approval of the proposed
installment financing agreement, as presented. He offered a recommendation for another
source of revenue, as the County deliberates its budget process, that being increasing the
volume from 600 tons to 2,000 tons of solid waste allowed into the landfill to increase
revenue to be spent on services for the citizens.
There were no individuals appearing before the Board to speak in opposition to the
proposed financing for a portion of the costs of various projects and the making of related
determinations.
A motion was made by Commissioner Jeffers and carried 5-0 to close the public
hearing for consideration to finance a portion of the costs of various projects and the
making of related determinations.
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April 9, 2018
9
CONSIDERATION TO APPROVE PROPOSED INSTALLMENT FINANCING
AGREEMENT FOR A PORTION OF THE COSTS OF VARIOUS PROJECTS
AND TO ACQUIRE CERTAIN SCHOOL PROPERTY:
Commissioner Puryear moved to recuse himself from the consideration to approve
the proposed installment finance agreement due to the recommended lender is his
employer.
County Attorney, Ron Aycock explained a commissioner is not disqualified from
the vote unless he has at least 10% ownership interest in the business. He added there was
not a legal prohibition for a commissioner to request the Board to release him from his
obligation to vote.
By unanimous vote, the Board of Commissioners approved Commissioner
Puryear’s request to recuse himself from the vote on the Installment Financing Agreement
for a portion of the Costs of Various Projects and to Acquire Certain School Property.
A motion was made by Commissioner Jeffers and carried 4-0 to approve the
Installment Financing Agreement for a portion of the Costs of Various Projects and to
Acquire Certain School Property, as presented by the Finance Director with the following
determinations:
1) to proceed with the proposed financing and approve on a preliminary basis the
Proposal to finance a portion of the cost of the Project in an amount not to
exceed $4,750,000;
2) to authorize the Chairman of the Board of Commissioners and the County
Manager and Finance Director of the County to negotiate further with the
approved lender, the terms of the Proposal as they consider to be necessary or
advisable, and execute and deliver the Proposal to BB&T at such time they
determine to be appropriate; and
3) to acquire from the Board of Education an interest in the real and personal
property included in the Northern Middle School project, including specifically
the site of Northern Middle School and the improvements thereon, for use by
the Person County Schools.
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April 9, 2018
10
PUBLIC HEARING:
REQUEST TO ADD COTTON PICKIN TRL, A PRIVATE ROADWAY TO THE
DATABASE OF ROADWAY NAMES USED FOR E-911 DISPATCHING:
A motion was made by Vice Chairman Powell and carried 5-0 to open the duly
advertised public hearing for a request to add Cotton Pickin Trl, a private roadway to the
database of roadway names used for E-911 dispatching.
GIS Manager, Sallie Vaughn told the Board that on January 16, 2018 the owner of
parcel A96-127 approached the GIS Department and asked if they could elect to name their
private driveway which will service two proposed homes. A third home may be added at
some point in the future.
Ms. Vaughn stated the property owner provided a name of Cotton Pickin Trl which
was compliant with the County’s local ordinance and that the addition of this road will not
affect any adjacent property owners or existing addresses.
North Carolina General Statue 153A-239.1(A) required a public hearing be held on
the matter and public notice to be provided at least 10 days before the hearing in the
newspaper. The required public notice was published in the March 28, 2018 edition of the
Roxboro Courier-Times. A sign advertising the public hearing was placed at the proposed
roadway location approximately two weeks prior to this public hearing.
Ms. Vaughn requested Board approval on the recommended roadway name.
The following individual appeared before the Board to speak in favor of the request
to add Cotton Pickin Trl, a private roadway to the database of roadway names used for E-
911 dispatching:
Ms. Misty Clark of 407 David Road, Hillsborough stated she would be moving to
the above mentioned parcel once her home was built. She noted the proposed new roadway
name was in remembrance of her grandpa.
There were no individuals appearing before the Board to speak in opposition to
request to add Cotton Pickin Trl, a private roadway to the database of roadway names used
for E-911 dispatching.
A motion was made by Commissioner Jeffers and carried 5-0 to close the public
hearing for request to add Cotton Pickin Trl, a private roadway to the database of roadway
names used for E-911 dispatching.
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April 9, 2018
11
CONSIDERATION TO GRANT OR DENY REQUEST TO ADD COTTON PICKIN
TRL, A PRIVATE ROADWAY TO THE DATABASE OF ROADWAY NAMES
USED FOR E-911 DISPATCHING:
A motion was made by Commissioner Jeffers and carried 5-0 to approve the
request to add Cotton Pickin Trl, a private roadway to the database of roadway names used
for E-911 dispatching, as presented.
INFORMAL COMMENTS:
There were no comments from the public.
DISCUSSION/ADJUSTMENT/APPROVAL OF CONSENT AGENDA:
A motion was made by Commissioner Jeffers and carried 5-0 to approve the
Consent Agenda with the following item:
A. Budget Amendment #14
UNFINISHED BUSINESS:
CLARIFICATION OF FY2018-2019 FUNDING FOR VOLUNTEER FIRE
DEPARTMENTS:
County Manager, Heidi York recalled the discussion at the Board’s March 19, 2018
meeting whereby the Board voted to create a fire tax and lower the tax rate in order to have
no impact to the taxpayer for FY2018-2019. The specific motion that was adopted tied
amounts for the fire tax and the property tax that will be revenue neutral to the county but
will actually result in a slight increase to the tax payer by adopting a total tax rate of .7031
versus .7000. Ms. York noted staff were seeking clarification from the Board as staff works
out the details of how to create and implement the intention of the Board. Ms. York further
noted a very tight timeframe exists to implement the fire tax.
Ms. York stated she emailed the President of the Fire Chief’s Association/Assistant
Fire Chief for the City of Roxboro, Wayne Wrenn as well as a follow-up from staff to
ensure the message was distributed that this item would be added to the Board’s agenda.
Tax Administrator, Russell Jones shared the following information pertinent to
setting a fire tax for the upcoming fiscal year:
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April 9, 2018
12
1. Cash Flow: with a fire tax, the VFD’s will not receive the full amount of funding
in July. They will have to transition from receiving a one-time lump sum payment
for their services to receiving monthly checks based on fire tax collections.
2. Revenue Impact: While county taxpayers will see no increase in their tax bill, city
taxpayers will see a decrease. This loss of revenue will result in an overall decrease
in revenues to the General Fund. Each penny on the fire tax results in a $76,579
loss.
3. Performance Requirements: The Board has expressed interest in requiring the
VFD’s to reduce their ISO ratings over a period of time in order to continue
receiving increased funding. If there is consensus to move toward performance
pay, staff will work with the fire chiefs to determine an appropriate time frame for
achieving ISO rate reductions.
4. Process Schedule: In order to create a fire tax, a map of the fire district (county-
wide) must be published and a notice via post card format to mailed to all property
owners (real property and vehicle owners) impacted by the fire tax four weeks
before a public hearing is held. The cost to print and mail this notice is
approximately $10,000 and can take up to 30 days to design and set up the print
file. As a result, the required findings for establishing a fire tax must be approved
by the Board at its April 23, 2018 meeting, so staff has enough time to prepare the
mailing; at the April 23, 2018 Board meeting, the Board must also direct the Tax
Administrator to move forward with publishing the map and mailing the notice, in
the event that the May 8, 2018 sales tax voter referendum does not pass. The notice
of public hearing must then be published in the newspaper a week before the public
hearing. This scenario places the public hearing on the same day that the budget is
scheduled to be adopted, June 18, 2018. State law requires that local governments
adopt their budget by June 30th, so there would be little time to make a budget
adjustment, if the Board decides not to adopt the fire tax after the proposed public
hearing to be scheduled for June 18, 2018.
Mr. Jones stated once the post card has been designed and mailed, staff expected
an influx of calls with questions from citizens that will affect multiple departments.
Ms. York said one penny on the property tax rate generates more than one penny
on the fire tax due to the city residents will not pay the fire tax. She reiterated that each
penny put toward fire funding through a fire tax is $76,579 less. Ms. York stated the most
efficient use of taxpayer funds would be through a property tax versus the penny noting
the city residents will not pay a fire tax but see a decrease in the property tax bills for a
reduction in the tax rate. Ms. York said Mr. Jones has prepared some funding scenarios
for information and discussion purposes to demonstrate the impacts of funding the VFDs
from the general fund, a fire tax, and a combination of both.
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April 9, 2018
13
EXAMPLE A: CURRENT FUNDING (FY18)
Before Fire Tax(where we are now)
Value
In
city
County
Rate
County
Tax City Rate City Tax
Fire
Rate
Fire
Tax Total
Net
change
115,000 yes 0.007000 $805.00 0.006700 $770.50 $1,575.50 base‐$.00
115,000 no 0.007000 $805.00 $805.00 base‐$.00
250,000 yes 0.007000 $1,750.00 0.006700 $1,675.00 $3,425.00 base‐$.00
250,000 no 0.007000 $1,750.00 $1,750.00 base‐$.00
EXAMPLE B: DECREASE TO CITY TAXPAYERS, INCREASE TO COUNTY
TAXPAYERS; $330K CUT TO GENERAL FUND
The above chart displays the impact of implementing a combination of general fund
and fire tax, and captures the impact of the discussion and motion of the March 19 meeting.
This would be a tax increase for the county taxpayers, making the combined tax rate .7031
versus .7000 for last year. Also, this would still result in flat funding for the VFDs without
an additional appropriation from the general fund of $330,000. To fund the VFDs this
additional amount, without cuts to the general fund, would require a general fund tax rate
of .6924. Total combined tax rate without other county reductions would be .7106 (1.06
cent overall increase).
After adding fire tax of .0182, and reducing county tax to .6849 (revenue neutral to county)
Value
In
city
County
Rate
County
Tax City Rate City Tax Fire Rate
Fire
Tax Total
Net
change
115,000 yes 0.006849 $787.64 0.006700 $770.50 $1,558.14 ‐$17.37
115,000 no 0.006849 $787.64 0.000182 $20.93 $808.57 $3.56
250,000 yes 0.006849 $1,712.25 0.006700 $1,675.00 $3,387.25 ‐$37.75
250,000 no 0.006849 $1,712.25 0.000182 $45.50 $1,757.75 $7.75
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EXAMPLE C: DECREASE TO CITY TAXPAYERS, FLAT FOR COUNTY
TAXPAYERS; $444K CUT TO GENERAL FUND
Again, the above chart displays the impact of implementing a combination of
general fund and fire tax. However, the proposal would keep the tax rate at a combined
.7000. This is due to the fact that the fire tax is set at .0151, and the general fund is reduced
by the same amount to a rate of .6849. Also, this would be a reduction in VFD funding
without an additional appropriation from the general fund of $444,334. To fund the VFDs
this amount, without cuts to the general fund, would require a general fund tax rate of
.6949. Total combined tax rate without other county reductions would be .7100 (1 cent
overall increase).
EXAMPLE D: DECREASE TO CITY TAXPAYERS, FLAT FOR COUNTY
TAXPAYERS; $540K CUT TO GENERAL FUND
Fire tax without general fund appropriation
Value
In
city
County
Rate
County
Tax City Rate City Tax Fire Rate
Fire
Tax Total
Net
change
115,000 yes 0.006728 $773.72 0.006700 $770.50 $1,544.22 ‐$31.28
115,000 no 0.006728 $773.72 0.000272 $31.28 $805.00 $0.00
250,000 yes 0.006728 $1,682.00 0.006700 $1,675.00 $3,357.00 ‐$68.00
250,000 no 0.006728 $1,682.00 0.000272 $68.00 $1,750.00 $0.00
The chart above represents a true fire tax. A true fire tax would have the largest
impact on the general fund for FY19. A fire tax to support all fire services at $1,000,000
would need to be set at .002714 (2.72 cents). A reduction to the general fund tax rate of
2.72 cents to a new rate of .6728 would result in a loss of revenues to the general fund of
$1,210,463. However, the general fund would not need to fund the fire departments as it
did in FY18 at $669,885. This would lower the impact to $540,578. To fund the VFDs
this amount, without cuts to the general fund, would require a general fund tax rate .6850.
Total combined tax rate without other county reductions would be .7122 (1.22 cent overall
increase).
After adding fire tax of .0150, and reducing county tax to .6850(county taxpayer neutral)
Value
In
city
County
Rate
County
Tax City Rate City Tax Fire Rate
Fire
Tax Total
Net
change
115,000 yes 0.006849 $787.64 0.006700 $770.50 $1,558.14 ‐$17.37
115,000 no 0.006849 $787.64 0.000151 $17.37 $805.00 $0.00
250,000 yes 0.006849 $1,712.25 0.006700 $1,675.00 $3,387.25 ‐$37.75
250,000 no 0.006849 $1,712.25 0.000151 $37.75 $1,750.00 $0.00
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Mr. Jones noted other major points for the Board to consider:
1. Staff will need direction on how to proceed following the results of the May 8 primary,
which will determine if a sales tax is desired by citizens. Please remember that proposed
maps for a fire service district creation require a public hearing. The required public
hearing cannot be any earlier than 4 weeks after publication. This is reason that a fire tax
is being discussed before the budget proposal is presented. If you wait until the May 21st
meeting to publish the proposed maps, then the first date a public hearing could be held
would be June 19th.
2. Cash flow will need to be discussed. In the past, VFDs were given their appropriations
in July. With a true fire tax, funding would be disbursed around the 8th of the month,
following the month of collections. For example, there would be no funds collected in
July, resulting in no disbursement until September 8th, and this would be a very small
disbursement. Most funding will be collected in December and January, delaying any
disbursement until February 8th. The county may need to discuss a way to forward some
funding for FY19. This should only be done the first year.
Commissioner Jeffers advocated to appropriate all VFD funding through a fire tax
or increase the property tax rate for public safety.
Chairman Kendrick noted the Board’s three priorities as education, public safety
and economic development; he advocated for cuts to non-mandated services within the
County’s $65M budget.
At this point in the debate, Chairman Kendrick handed the gavel over to Vice
Chairman Powell.
Commissioner Jeffers stated out of the $65M County Budget, approximately $22M
was property tax revenue, the other being federal and state pass-through funding.
Mr. Jones stated a fire tax provides funding to fire departments but the
misconception is that it does not guarantee funding year after year.
Mr. Jones asked for direction from the Board whether or not to prepare the notices
to be mailed for a set fire tax or if the Board prefers to appropriate the VFD funding from
the General Fund.
Ms. York said if the Board can provide clarity on the concept, staff will bring back
in the budget proposal. She said to set the fire tax rate at this time was premature with the
numbers changing and will continue to change as she needs to evaluate the needs of both
the expenditures and revenues.
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Ms. York stated there was agreement among the Board to fund the VFDs at $1M;
she asked the Board to agree to the concept for a fire tax, it will be offset with a reduction
to the property tax rate without stating a specific amount.
Mr. Jones stated he needed the Board to take action related to proceed forward with
the notification for the fire tax, if that was the desire of the Board.
A motion was made by Commissioner Puryear to direct staff to proceed forward
with the notification for the fire tax that is offset with the property tax rate.
Commissioner Clayton advocated to implement a fire tax fully.
A substitute motion was made by Commissioner Clayton and failed 2-3 to set a
2.72 cents fire tax for the $1M funding for the VFDs. Commissioners Clayton and Jeffers
voted in favor of the substitute motion. Chairman Kendrick, Vice Chairman Powell and
Commissioner Puryear voted in opposition to the substitute motion.
The original motion by Commissioner Puryear carried 3-2. The original motion
passed with aye votes by Chairman Kendrick, Vice Chairman Powell and Commissioner
Puryear. Commissioners Clayton and Jeffers cast the dissenting votes. Commissioner
Jeffers stated the original motion was political and not for public safety.
Mr. Jones added that the Board could set the public hearing at the Board’s next
meeting on April 23, 2018.
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CONSIDERATION TO GRANT OR DENY REQUEST FOR A TEXT
AMENDMENT TO AMEND THE ORDINANCE REGULATING AUTOMOBILE
GRAVEYARDS AND JUNKYARDS:
Chairman Kendrick stated no individuals or business/commercial representatives
appeared to offer comments related to the Text Amendment to the Ordinance Regulating
Automobile Graveyards and Junkyards.
Planning Director, Lori Oakley stated she had no new information to share with the
Board but noted she had three residential inquiries since the last discussion by the Board
to which she had placed on hold pending a decision by the Board of Commissioners.
Commissioner Jeffers stated issue with placing residential complaints on hold as
the current ordinance in Section 8 outlines the process in place, just as was done for the
complaint located on Cedar Grove Church Road. He added his reasoning behind tabling
this item was because of the proposal to do something different that impacts commercial
or existing businesses.
Commissioner Jeffers asked Ms. Oakley to address the proposed new text related
to the time period of 90 days or more for a place of business. Ms. Oakley stated the first
step would be to visit the site, discuss and work with the property owner prior to sending a
letter to start the penalty process. Ms. Oakley said the second sentence (proposed new text)
under Junkyard, Commercial in Section Three Definitions could be removed if deemed
appropriate by the Board noting staff’s primary goal is residential.
Chairman Kendrick reminded the group that the process was based on a complaint
filed. Chairman Kendrick asked Ms. Oakley to note how many complaints has she received
over the last year to which she responded there have been two commercial and
approximately 35-36 residential complaints.
A motion was made by Chairman Kendrick and carried 5-0 to adopt the Text
Amendment to the Ordinance Regulating Automobile Graveyards and Junkyards as
presented with the second sentence (proposed new text) under Junkyard, Commercial in
Section Three Definitions to be omitted.
Ms. Oakley said the NC General Statutes requires that when reviewing a text
amendment, the Board also include with their motion a statement as to whether the
proposed text amendment is reasonable and consistent.
A motion was made by Chairman Kendrick and carried 5-0 that the text
amendment is consistent with the Comprehensive Plan and future planning goals and
objectives of Person County. It is reasonable and in the public interest as it will provide
clear and concise regulations in the Ordinance Regulating Automobile Graveyards and
Junkyards in Person County.
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NEW BUSINESS:
REIMBURSEMENT OF UP TO $250,000.00 FOR PREVIOUSLY SPENT PERSON
COUNTY BUSINESS INDUSTRIAL CENTER FUNDS FOR THE WATER AND
SEWER LINE ENGINEERING FOR PERSON COUNTY MEGA PARK:
David Newell, Sr., Chairman of the Person County Economic Development
Commission and President of Person County Business Industrial Center (PCBIC)
requested the Board of Commissioners to reimburse PCBIC up to $250,000 for the water
and sewer line engineering expenditures related to the Person County Mega Park as per the
Board of Commissioners action at its meeting on March 20, 2017, whereby the Person
County Board of Commissioners in a 4-1 substitute motion approved the following, “to
allow PCBIC to move forward and spend from its fund the $250,000.00 and at the point
the site was certified, Person County would reimburse PCBIC an amount agreeable with
the county commissioners, and at the point that PCBIC gets a business or industry to sign
the paperwork to move in, another reimbursement to PCBIC for an additional amount,
with both reimbursements to be funded from the county’s sewer fund that the City shares
with the County for the extension of sewers.”
On March 28, 2017, at a special called meeting of the PCBIC, the board approved
moving forward on such plan. PCBIC contracted with LaBella Associates for the
engineering design and all required permits for the installation of 12-inch water line and
12-inch sewer line to the Person County Mega Park at a cost of $250,000.00.
On Friday, October 27, 2017, the Economic Development Partnership of North
Carolina informed the Person County Economic Department that the Person County 1,350-
acre Mega Park was state certified and known world-wide.
Chairman Kendrick asked the Board to consider to reimburse PCBIC the full
$250,000 instead of a portion of reimbursement at time of certification with another
reimbursement when a client was secured.
A motion was made by Commissioner Clayton and carried 5-0 to reimburse
PCBIC $250,000. County Manager, Heidi York clarified and confirmed with the Board
that the reimbursement would be paid from the County’s Water and Sewer Fund that
currently has a balance of $340,000. Chairman Kendrick also noted available funds from
an undistributed economic development incentive but agreed the original intent was to
reimburse PCBIC using the Water & Sewer Fund.
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VHF RADIO SYSTEM CONTRACT:
Assistant County Manager, Sybil Tate stated as a part of the FY18 Capital
Improvement Plan, the Board approved funding for the purchase and installation of new
public safety communication equipment. The new system will expand radio coverage,
using additional towers that will improve communication between all county emergency
service departments, including Volunteer Fire Departments. Ms. Tate noted a Request for
Proposal (RFP) was released for the new VHF system in November and received one bid.
Per State statute, the RFP was re-released and again, only one bid was received.
Ms. Tate said Mobile Communications America submitted a bid for $1.2M. The
bid has been reviewed by staff and a third-party consultant. Staff, including the county
attorney, has reviewed and developed a contract based on the RFP bid. Ms. Tate presented
the draft contract for Board consideration and approval.
Ms. Tate stated the project consultant, Mr. Frank Marum of TSS Partners and
emergency services staff were available to answer technical questions for the Board.
Vice Chairman Powell asked about the RFP vendor responses to which Mr. Marum
said five vendors were contacted in addition to the published RFP ad which only resulted
with one response.
A motion was made by Commissioner Jeffers and carried 5-0 to approve the VHF
Radio System Contract, as presented.
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RECOMMENDED CAPITAL IMPROVEMENT PLAN FOR FY 2019-2023:
County Manager, Heidi York presented the Recommended Capital Improvement
Plan (CIP) to the Board noting the CIP is a planning tool for implementing large, capital
projects. The CIP includes projects costing $50,000 or greater from county departments,
Piedmont Community College and Person County Schools. In past versions, Ms. York
stated the capital needs for the Museum and the Senior Center as county-owned facilities
have been included.
Ms. York stated the CIP paves the way for the Recommended Budget as it will provide
an estimate of funding needed for capital projects and anticipates impacts on operating costs as
well. These capital projects span the next five fiscal years with the upcoming fiscal year
(FY2019) being the only year where a funding commitment is needed from the Board. Ms.
York noted the total CIP for the upcoming fiscal year totals $7.3M; $2.9M reflects pay as
you go projects with the remainder the financing project the Board discussed earlier.
Ms. York outlined that the CIP is scheduled to be adopted at the Board’s meeting
on April 23, 2018 and asked for the Board to further discuss, provide feedback, and
direction.
Chairman Kendrick asked Dr. Pamela Senegal, President of Piedmont Community
College about the requirements to enter into the Early College Program, and if the
opportunity was open to all the students of Person County or if there were restrictions for
eligibility to apply to which she stated the program was open to all students noting there
was competitive criteria due to a certain number of spots. She added that entry criteria
included academic potential, recommendations as well as other information. The FY2019
CIP appropriation for the Early College POD is $161,740 with four subsequent installment
appropriations (FY2020-2023) of $78,003 each.
Finance Director, Amy Wehrenberg made a correction on pages 10-13 for the
Funding Schedule, the Fiscal Year 2018-2019 should read Budget Year, not Planning Year.
Assistant County Manager, Sybil Tate prepared the Board for the Stormwater Fees
appropriated in the CIP at $3.8M whereby $230,000 is allocated for the upcoming fiscal
year and the subsequent two planning years, $1.785M each. Ms. Tate stated there was a
legislative possibility that the stormwater projects may be delayed; she encouraged the
Board to speak with their state representatives about introducing legislation to delay further
stormwater regulations to clean up the Upper Neuse River Basin to 2024.
Commissioner Clayton stated the Upper Neuse River Basin Association (UNRBA)
has been working with Representative Yarborough and other legislators to support the
delay in regulations to 2024. Commissioner Clayton noted the UNRBA financed a study
related to the sediment levels and encouraged the group to view the data on the UNRBA
website. Commissioner Clayton invited his fellow commissioners to attend upcoming
UNRBA meetings to stay informed.
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CHAIRMAN’S REPORT:
Chairman Kendrick encouraged residents to get involved and volunteer with
Special Olympics. He advocated for individuals to provide input and ideas to the Board
on the budget process. Chairman Kendrick reported several notes from the Timberlake
Meadows neighborhood sent to commissioners; he asked his fellow commissioners to
review those noting the Planning Director may have to address at a future meeting.
MANAGER’S REPORT:
County Manager, Heidi York had no report.
COMMISSIONER REPORT/COMMENTS:
Commissioner Jeffers reported there would be a Town Hall meeting on Tuesday,
April 10, 2018 starting at 10:00am at City Hall focusing on mental health. He commented
that he was the only NC commissioner with the NC Association of County Commissioners
that attended a meeting in Florida related to the Rural Farm Bill; this bill is very important
to NC noting an $8B business in farming, trading policies, health and human programming,
rural development and energy programs. Commissioner Jeffers asked his fellow
commissioners to contact legislators to reauthorize the Rural Farm Bill. Commissioner
Jeffers said the 4-H Livestock Show will be taking place in Orange County on April 18-
19, 2018 and he invited the group to attend.
Commissioner Clayton had no report.
Commissioner Puryear had no report.
Vice Chairman Powell reported the new CEO of Cardinal Innovations Healthcare,
along with other staff would be present at the Town Hall meeting noted by Commissioner
Jeffers.
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ADJOURNMENT:
A motion was made by Commissioner Jeffers and carried 5-0 to adjourn the
meeting at 8:58pm.
_____________________________ ______________________________
Brenda B. Reaves Tracey L. Kendrick
Clerk to the Board Chairman
(Draft Board minutes are subject to Board approval).
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4/23/2018
Dept./Acct No.Department Name Amount
Incr / (Decr)
EXPENDITURES General Fund
General Government 1,637
Public Safety 13,018
Economic and Physical Development 859
Culture and Recreation 6,100
Human Services 10,000
Transfers to Other Funds 70,000
Contingency (2,496)
REVENUES General Fund
Other Taxes 70,000
Intergovernmental Revenues 10,000
Charges for Services 11,800
Other Revenues 7,318
EXPENDITURES Water and Sewer Reserve 15,000
REVENUES Water and Sewer Reserve
Shared Fees 15,000
Explanation:
BUDGET AMENDMENT
Increase estimated occupancy tax collections ($70,000); increase estimated concealed
weapons fee revenue ($11,800); recognize United Way donations to the Sheriff's GREAT
Program ($1,218); transfer property and liability contingency(-$2,496) for workers
compensation payments in Administration ($1,637) and Planning ($859); recognize donation
to Sportsplex ($5,500); recognize donation to the Library ($600); recognize additional
revenue received for DSS CAP Program ($10,000); and increase estimated Water and
Sewer - Shared Fees revenue ($15,000).
BA-1575
AGENDA ABSTRACT
Meeting Date: April 23, 2018
Agenda Title: Tax Adjustments for April 2018
Summary of Information: Attached please find the tax releases and motor vehicle pending
refunds:
1. April 2018 tax releases.
2. April 2018 North Carolina Vehicle Tax System (NCVTS) pending refunds.
Recommended Action: Motion to accept reports and authorize refunds.
Submitted By: Russell Jones, Tax Administrator
76
NAME BILL NUMBER OPER DATE/TIME DISTRICT VALUE AMOUNT
50562115 2015-50767 DY: RP:A99 64 PPU MP 3/13/2018 2:02:54 PM
KARANGELEN GRACE
DOUBLE CHARGED C ADVLTAX 13,242.00 42.00
DOUBLE CHARGED DOG FFEEFEE 13,242.00 1.37
SINGLE WIDE BILLED ON A99 64 AS REAL
PROPERTY SEE ACCT 7788 FOR 2015-
2017
TOTAL RELEASES:43.37
50562116 2016-53709 DY: RP:A99 64 PPU MP 3/13/2018 2:10:53 PM
KARANGELEN GRACE
DOUBLE CHARGED C ADVLTAX 12,580.00 88.06
DOUBLE CHARGED C PEN FEE 12,580.00 9.11
DOUBLE CHARGED DOG FFEEFEE 12,580.00 3.00
SINGLE WIDE BILLED AS REAL ON A99 64
SEE ACCT 7788
TOTAL RELEASES:100.17
50562201 2017-36599 DY: RP:A99 64 PPU MP 3/13/2018 2:18:22 PM
KARANGELEN GRACE
DOUBLE CHARGED C ADVLTAX 11,918.00 83.43
DOUBLE CHARGED C PEN FEE 11,918.00 8.64
DOUBLE CHARGED DOG FFEEFEE 11,918.00 3.00
DOUBLE CHARGED C ADVTFEE 11,918.00 3.00
SINGLEWIDE BILLED AS REAL ON A99 64
SEE ACCT 7788
TOTAL RELEASES:98.07
62750201 2017-40568 DY: PERSONAL PROPERTY MP 3/15/2018 11:09:55 AM
WALKER JAMES T & BRANDI M
LISTING ADJUSTED PERSONAL PROPERTY C ADVLTAX 7,230.00 50.61
2011 SUND TR SOLD IN 2015 TOTAL RELEASES:50.61
58268112 2012-44864 MOTOR VEHICLE: N SITUS: /2012 BSG 3/26/2018 11:01:32 AM
NOBLES JOSEPH SAMUEL
BANKRUPTCY DISCHARGE PER COURT C ADVLTAX 13,430.00 37.17
TOTAL RELEASES:37.17
11255302 2017-4897 DY: RP:A74 6 SRJ 3/26/2018 11:39:49 AM
TILLETT ARTHUR JR&PATRICIA L/E
REMOVED LIEN AD FEE-POSTMARK C ADVLTAX 139,637.00 362.94
REMOVED LIEN AD FEE-POSTMARK C GARNFEE 139,637.00 30.00
TOTAL RELEASES:392.94
11255302 2017-4897 DY: RP:A74 6 SRJ 3/26/2018 11:40:27 AM
TILLETT ARTHUR JR&PATRICIA L/E
C GARNFEE 139,637.00 -30.00
C ADVLTAX 139,637.00 -362.94
TOTAL RELEASES:-392.94
11255302 2017-4897 DY: RP:A74 6 SRJ 3/26/2018 11:41:06 AM
TILLETT ARTHUR JR&PATRICIA L/E
REMOVED LIEN AD FEE-POSTMARK C GARNFEE 0.00 30.00
TOTAL RELEASES:30.00
2325301 2017-15982 DY: RP:1 19 SRJ 3/26/2018 2:26:58 PM
WARREN WILLIAM A JR & STEPHANI
REMOVED LIEN AD FEE-POSTMARK C GARNFEE 0.00 30.00
TOTAL RELEASES:30.00
RUN DATE: 4/16/2018 9:50 AM RELEASES REPORT
Person County
77
NAME BILL NUMBER OPER DATE/TIME DISTRICT VALUE AMOUNT
31473201 2017-40093 DY: PERSONAL PROPERTY SRJ 3/27/2018 9:25:58 AM
THOMAS GILL HARDING JR
LISTING ADJUSTED PERSONAL PROPERTY C GARNFEE 1,570.00 30.00
LISTING ADJUSTED PERSONAL PROPERTY C ADVLTAX 1,570.00 10.99
LISTING ADJUSTED PERSONAL PROPERTY CI50ADVLTAX 1,570.00 10.52
LISTING ADJUSTED PERSONAL PROPERTY C PEN FEE 1,570.00 1.10
LISTING ADJUSTED PERSONAL PROPERTY CI50PEN FEE 1,570.00 1.05
JUNKED BEFORE JANUARY 1 2017 TOTAL RELEASES:53.66
13896201 2017-39730 DY: PERSONAL PROPERTY SRJ 3/27/2018 10:24:12 AM
MEYLOR MARILYN F
DOUBLE CHARGED C ADVLTAX 4,551.00 31.86
DOUBLE CHARGED C PEN FEE 4,551.00 3.49
DOUBLE CHARGED DOG FFEEFEE 4,551.00 3.00
DOUBLE CHARGED C GARNFEE 4,551.00 30.00
CHARGED ALSO UNDER MEYLOR CARL TOTAL RELEASES:68.35
13896116 2016-1175464 DY: PERSONAL PROPERTY SRJ 3/27/2018 10:24:43 AM
MEYLOR MARILYN F
DOUBLE CHARGED C ADVLTAX 4,841.00 33.89
DOUBLE CHARGED C PEN FEE 4,841.00 3.69
DOUBLE CHARGED DOG FFEEFEE 4,841.00 3.00
DOUBLE CHARGED C OTHRFEE 4,841.00 30.00
CHARGED ALSO UNDER MEYLOR CARL TOTAL RELEASES:70.58
13896115 2015-1179003 DY: PERSONAL PROPERTY SRJ 3/27/2018 10:25:11 AM
MEYLOR MARILYN F
DOUBLE CHARGED C ADVLTAX 5,150.00 36.05
DOUBLE CHARGED C PEN FEE 5,150.00 3.91
DOUBLE CHARGED DOG FFEEFEE 5,150.00 3.00
CHARGED ALSO UNDER MEYLOR CARL TOTAL RELEASES:42.96
1265301 2017-8083 DY: RP:A69 66 SRJ 3/27/2018 1:29:37 PM
HOLLOWAY ANNETTE
REMOVED LIEN AD FEE-POSTMARK C GARNFEE 0.00 30.00
PAYMENT ARRANGED FOR MARCH 31 TOTAL RELEASES:30.00
2919116 2016-53706 DY: PERSONAL PROPERTY SRJ 3/27/2018 2:02:06 PM
SIMPSON LINWOOD E
REMOVED LIEN AD FEE-POSTMARK C GARNFEE 0.00 30.00
CHARGED FEE TWICE TOTAL RELEASES:30.00
14097901 2017-16510 DY: RP:A26 9 SRJ 3/28/2018 10:33:42 AM
CONCORD UNITED METH CH INC
REMOVED LIEN AD FEE-POSTMARK C ADVTFEE 0.00 3.00
TOTAL RELEASES:3.00
14097902 2017-16511 DY: RP:A26 66 SRJ 3/28/2018 10:34:07 AM
CONCORD UNITED METH CH INC
REMOVED LIEN AD FEE-POSTMARK C ADVTFEE 0.00 3.00
TOTAL RELEASES:3.00
43386111 2011-44192 MOTOR VEHICLE: N SITUS: /2011 BSG 4/2/2018 11:47:26 AM
COOK RHONDA OLIVER
BANKRUPTCY DISCHARGE PER COURT C ADVLTAX 12,490.00 68.88
TOTAL RELEASES:68.88
RUN DATE: 4/16/2018 9:50 AM RELEASES REPORT
Person County
78
NAME BILL NUMBER OPER DATE/TIME DISTRICT VALUE AMOUNT
16490304 2017-21357 DY: RP:A65 408 BSG 4/6/2018 10:14:12 AM
GILBERT LARRY W & BETH K
REMOVED LIEN AD FEE-POSTMARK C ADVLTAX 3.00 0.02
ORIGINALLY PAID 1/5/18 BUT ACCT NOT
FOUND AND REFUNDED IN ERROR
TOTAL RELEASES:0.02
16490304 2017-21357 DY: RP:A65 408 SRJ 4/6/2018 10:21:24 AM
GILBERT LARRY W & BETH K
C ADVLTAX 3.00 -0.02
TOTAL RELEASES:-0.02
16490304 2017-21357 DY: RP:A65 408 SRJ 4/6/2018 10:22:14 AM
GILBERT LARRY W & BETH K
REMOVED LIEN AD FEE-POSTMARK C ADVTFEE 0.00 3.00
TOTAL RELEASES:3.00
63772114 2014-48257 DY: PERSONAL PROPERTY MP 4/12/2018 10:28:13 AM
HOLLEMAN JENNIFER C
LISTING ADJUSTED PERSONAL PROPERTY C ADVLTAX 525.00 3.68
LISTING ADJUSTED PERSONAL PROPERTY C PEN FEE 525.00 0.37
STATES NEVER LIVED IN PERSON COUNTY
- NO SIGNED LISTING FORM ON FILE
TOTAL RELEASES:4.05
63772115 2015-50819 DY: PERSONAL PROPERTY MP 4/12/2018 10:36:40 AM
HOLLEMAN JENNIFER C
LISTING ADJUSTED PERSONAL PROPERTY C ADVLTAX 515.00 3.61
LISTING ADJUSTED PERSONAL PROPERTY C PEN FEE 515.00 0.36
LISTING ADJUSTED PERSONAL PROPERTY C OTHRFEE 515.00 30.00
STATES NEVER LIVED IN PERSON COUNTY
- NO SIGNED LISTING FORM ON FILE FOR
JET SKI
TOTAL RELEASES:33.97
63772116 2016-53789 DY: PERSONAL PROPERTY MP 4/12/2018 10:38:38 AM
HOLLEMAN JENNIFER C
LISTING ADJUSTED PERSONAL PROPERTY C ADVLTAX 484.00 3.39
LISTING ADJUSTED PERSONAL PROPERTY C PEN FEE 484.00 0.34
STATES NEVER LIVED IN PERSON COUNTY
- NO SIGNED LISTING FORM ON FILE - JET
SKI
TOTAL RELEASES:3.73
63772201 2017-39874 DY: PERSONAL PROPERTY MP 4/12/2018 10:40:21 AM
HOLLEMAN JENNIFER C
LISTING ADJUSTED PERSONAL PROPERTY C ADVLTAX 455.00 3.19
LISTING ADJUSTED PERSONAL PROPERTY C PEN FEE 455.00 0.32
STATES NEVER LIVED IN PERSON COUNTY
- NO SIGNED FORM ON FILE - JET SKI
TOTAL RELEASES:3.51
NET RELEASES PRINTED:808.08
TOTAL TAXES RELEASED 808.08
RUN DATE: 4/16/2018 9:50 AM RELEASES REPORT
Person County
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Payee NameAddress 3Refund Type Refund ReasonCreate DateTax Jurisdiction Levy Type Total Change01Tax ($89.54)$89.5401Tax ($11.97)$11.9701Tax ($80.90)$80.9001Tax ($33.39)50Tax ($31.96)50 Vehicle Fee $0.00$65.3501Tax ($118.54)$118.5401Tax ($35.87)50Tax ($34.34)50 Vehicle Fee $0.00$70.2101Tax($2.50)$2.5001Tax ($22.38)$22.3801Tax($1.47)$1.4701Tax($6.30)$6.3001Tax ($21.11)$21.1101Tax ($23.15)$23.1501Tax ($196.07)$196.0701Tax ($11.66)50Tax ($11.16)50 Vehicle Fee $0.00$22.8201Tax($6.25)$6.25MCCARSON, MELISSA ALEXANDER ROUGEMONT, NC 27572 Proration Vehicle Totalled03/26/2018LEE, LINDA STRICKLAND ROXBORO, NC 27573 Proration Vehicle Totalled03/28/2018KIPE, MICAHEL KEITH SEMORA, NC 27343 Proration Vehicle Sold 03/27/2018JOHNSTON, TERRY CLYDE BURLINGTON, NC 27215 Proration Vehicle Sold 03/29/2018JOHNSON, JOHN QUINCY ROXBORO, NC 27573 Proration Vehicle Totalled03/19/2018HICKS, BARBARA DUNCAN ROXBORO, NC 27574 Proration Vehicle Sold 03/28/2018EGGERT, DALE OLIVER ROXBORO, NC 27574 Proration Vehicle Totalled03/22/2018EASTWOOD, DONALD LEE SR ROXBORO, NC 27573 Proration Vehicle Sold 03/23/2018DUNCAN, LINDA KAYE ROXBORO, NC 27574 Proration Vehicle Sold 03/19/2018CLAY, CHRISTOPHER DWAYNE ROXBORO, NC 27573 Proration Vehicle Sold 03/28/2018CLARK, DEONZA MARIE TIMBERLAKE, NC 27583 Proration Vehicle Totalled03/13/2018CHAVOUS, KATHRYN GREEN ROXBORO, NC 27573 Proration Vehicle Totalled03/16/2018CARD, MELODY MENDENHALL TIMBERLAKE, NC 27583 Proration Vehicle Sold 04/05/2018BOWLING, MATTHEW JOE ROUGEMONT, NC 27572 Proration Vehicle Totalled04/13/2018BARKLEY, LINDA HILL ROXBORO, NC 27574 Proration Vehicle Totalled03/13/201880
Payee NameAddress 3Refund Type Refund ReasonCreate DateTax Jurisdiction Levy Type Total Change01Tax ($58.80)$58.8001Tax ($24.25)$24.2501Tax ($32.06)50Tax ($30.68)50 Vehicle Fee $0.00$62.7401Tax ($14.75)50Tax ($14.11)50 Vehicle Fee $0.00$28.8601Tax ($51.74)$51.7401Tax ($54.14)50Tax ($51.82)50 Vehicle Fee $0.00$105.9601Tax($2.87)$2.8701Tax ($10.36)50Tax($9.91)50 Vehicle Fee $0.00$20.2701Tax ($20.58)$20.5801Tax ($31.92)$31.9201Tax ($59.23)$59.2301Tax ($18.21)$18.2101Tax ($25.55)$25.55WAGNER, SILAS HAYES JR ROXBORO, NC 27574 Proration Vehicle Sold 04/10/2018VINES, RUSSELL ANTONIA HURDLE MILLS, NC 27541 Proration Reg . Out of state04/06/2018THOMPSON, CYNTHIA LYN ROXBORO, NC 27574 Proration Vehicle Totalled04/06/2018TAYLOR, TAMMY COATS TIMBERLAKE, NC 27583 Proration Vehicle Sold 04/03/2018STONE, AMANDA DUNCAN ROXBORO, NC 27574 Adjustment < $100Mileage 03/19/2018STEWART, LINDA FAY ROXBORO, NC 27573 Proration Vehicle Sold 03/19/2018STEVENS, CAROLYN CARVER ROXBORO, NC 27574 Proration Vehicle Sold 03/22/2018SANTOS, CARLOS DAVID ROXBORO, NC 27573 Proration Vehicle Sold 04/06/2018SANFORD, CHARLES EDISON JR ROXBORO, NC 27574 Proration Reg . Out of state03/19/2018REYES MORA, ISMAEL ROXBORO, NC 27573 Proration Vehicle Sold 03/23/2018RAYNOR, MICHELLE LYNN ROXBORO, NC 27573 Proration Vehicle Sold 04/10/2018PLEASANT, WHITNEY ANN ROXBORO, NC 27574 Proration Vehicle Sold 03/19/2018PERKINS, WILLIAM GARY II ROXBORO, NC 27573 Proration Vehicle Sold 03/23/201881
Payee NameAddress 3Refund Type Refund ReasonCreate DateTax Jurisdiction Levy Type Total Change01Tax($2.66)$2.6601Tax ($80.27)$80.2701Tax ($40.83)50Tax ($39.09)50 Vehicle Fee $0.00$79.9201Tax($8.75)$8.75WILSON, HANNAH BROOKE ROXBORO, NC 27574 Proration Vehicle Totalled04/04/2018WILKINS, BONNIE LOU ROXBORO, NC 27573 Proration Vehicle Totalled03/21/2018WHITE, ROGER DALE ROXBORO, NC 27574 Proration Vehicle Sold 03/21/2018WAGSTAFF, DOROTHY JOHNSON ROXBORO, NC 27574 Proration Vehicle Sold 04/05/201882
AGENDA ABSTRACT
Meeting Date: April 23, 2018
Agenda Title: Consideration of setting date/time for Public Hearing for Fire Tax
Summary of Information: During the April 9 meeting of the board, staff presented
information concerning a proposed fire tax. The board is reminded of the requirements of
establishing a fire tax, as stated below:
1. There is a demonstrable need for providing one or more of the services in the district,
2. It is impossible or impracticable to provide the services on a countywide basis,
3. It is economically feasible to provide the proposed services in the district without
unreasonable or burdensome annual tax levies; and
4. There is a demonstrable demand for the proposed services by persons residing in the proposed
district.
Public Hearing-A notice is required to be mailed to all property owners in the proposed district
at least 4 weeks prior to the hearing date. Staff were instructed to prepare a sample notice for
review by the board(see attached).
Resolution-With the assistance of the county attorney, staff have prepared a sample resolution
for the board's review. This is only a sample, and some sections may need to be modified after
the public hearing.
Recommended Action: If appropriate, set date/time for public hearing and provide
direction on date to mail notices of public hearing.
Submitted By: Russell Jones, Tax Administrator
83
A RESOLUTION OF THE PERSON COUNTY BOARD OF COMMISSIONERS
ESTABLISLING THE PERSON COUNTY FIRE PROTECTION SERVICE DISTRICT
WHEREAS, Article 16 of N.C. Chapter 153A, of the North Carolina General Statutes,
authorizes counties within North Carolina to define service districts in order to finance, provide,
or maintain for the districts one or more of the following services, facilities and functions in
addition to or to a greater extent those finances, provided or maintained for the entire county; and
WHEREAS, N.C. General Statute § 153A-30l(a)(2) provides that the county may define
a service district for the purposes of fire protection; and
WHEREAS, there is a demonstrable need to provide a predictable and continuing means
to finance, provide, or maintain for fire protection services within the proposed Person County
Fire Protection Service District as defined herein (the "District"), and
WHEREAS, acting in response to a need for action in order to protect structures,
property, and lives of those within the boundaries of the District, the Person County Board of
Commissioners have determined that the creation of a fire service district will be for the benefit
of those properties, residents and public commuters within the District boundaries; and
WHEREAS, pursuant to N.C. General Statute § 153A-302(b), the Person County Board
of Commissioners caused to be prepared a report containing: (1) a map of the proposed district
showing its proposed boundaries; (2) a statement showing that the proposed district meets the
standards set out in subsection (a) of N.C. General Statute § 153A-302; and a plan for providing
one or more of the services listed in N.C. General Statute § 153A-301 to the district (the
"Report");
WHEREAS, a copy of the Report is attached hereto as Exhibit A and incorporated herein
by reference, and
WHEREAS, the Report was available for public inspection in the office of the Clerk to
the Board for at least four (4) weeks before the date of the public hearing referenced herein
below; and
WHEREAS, pursuant to N.C. General Statute. § 153A-302(c), the Person County Board
of Commissioners held a duly noticed and advertised public hearing on the proposed Person
County Fire Protection Service District on June 18, 2018 prior to adopting any resolution
defining said district.
84
NOW, THEREFORE, BE IT RESOLVED BY THE PERSON COUNTY BOARD OF
COMMISSIONERS that:
1. Person County has fully complied with each and every requirement of Article 16 of Chapter
153A, of the North Carolina General Statutes, necessary for the creation of a fire protection
service district and determines and finds same as fact.
2. There is a demonstrable need for providing fire protection services in the District as shown by
the overwhelming majority of speakers that provided comments at the June 18, 2018 public
hearing.
3. It is impracticable to provide fire protection services on a countywide basis because: fire
protection services can most economically and efficiently be served through the County's current
system of community volunteer departments instead of a unified County owned and operated fire
service.
4. It is economically feasible to provide fire protection services in the District without
unreasonable and burdensome annual tax levies given the current County tax rates in the District
as shown in the Report; and
5. There is a demonstrable demand for the fire protection services within the District by Persons
residing in the District as shown by the overwhelming majority of residents speaking in support
of the creation of the District at the June 18, 2018 public hearing.
6. The Person County Fire Protection Service District does in fact meet the standards set forth in
N.C. General Statute §153A-302.
7. Person County Fire Protection Service District for the purpose of fire protection is hereby
established and created with the boundaries set forth on that certain map attached as Exhibit A to
the Report incorporated herein by reference, to which reference is made for a more complete and
accurate description of the boundaries of the Person County Fire Service District.
8. Person County may levy property taxes within the service district in addition to those
throughout the County in order to finance, provide or maintain for the District, fire services
provided therein, in addition to or to a greater extent than those financed, provided or maintained
for the entire County.
9. This resolution shall take effect at the beginning of fiscal year starting July 1, 2018.
Adopted this the 18th day of June, 2018.
Attest:
______________________________________ __________________________________
Brenda B. Reaves, Clerk to the Board Tracey L. Kendrick, Chairman
85
EXHIBIT A
COPY OF: REPORT
IN TIIE MATTER OF:
THE PROPOSED CREATION AND ESTABLISHMENT OF PERSON COUNTY FIRE
PROTECTION SERVICE DISTRICT AS PROVIDED FOR BY NORTH CAROLINA
GENERAL STATUTES ARTICLE 16, CHAPTER 153A.
IN THE MATTER OF:
THE PROPOSED CREATION AND ESTABLISHMENT OF PERSON COUNTY FIRE
PROTECTION SERVICE DISTRICT AS PROVIDED FOR BY NORTH CAROLINA
GENERAL STATUTES ARTICLE 16, CHAPTER 153A.
Counties are authorized to and may define any number of service districts in order to finance,
provide, or maintain for such districts services, facilities and functions related to fire protection
pursuant to North Carolina General Statutes Article 16, Chapter 153A.
Fire protection services in Person County have traditionally been provided through service
contracts between the County and a number of volunteer fire departments operating within the
County. The Person County Fire Chiefs' Association are of the opinion that such services can
best be delivered in the future via existing community volunteer fire departments that provide
fire protection services acting as multiple-source, full service and comprehensive responding
agencies.
The County desires to continue participating in the provision of fire protection services to the
residents of Person County. In response to the need to provide a predictable and continuing
means to finance, provide, or maintain for fire protection services in the proposed Person County
Fire Protection Service District, the Board of Commissioners directed that this report be prepared
as required by said Article 16 prior to the public hearing concerning the matter of establishing
the Fire Protection Service District.
A. PURPOSE
86
The purpose of the proposed new Fire Protection Service District would be to define an area
within the County that has a need for fire protection services not currently supported by a
dedicated source of tax revenue, and provide an economically feasible revenue stream sufficient
to allow for the County to contract with and provide financial support for the volunteer fire
departments providing fire protection services within the Fire Protection Service District. The
creation of the new Fire Protection Service District for Person County will offer a uniform taxing
structure for property owners within the proposed district, as well ensuring multiple source
response through the continued viability of the exiting volunteer fire departments.
B. BOUNDARIES
The Fire Protection Service District area includes all property lying and being within the
unincorporated boundaries of Person County (excluding the incorporated limits of the City of
Roxboro, unless the incorporated entities pass a resolution to accept the Fire Protection Service
District as provided by applicable law). A map of the proposed Fire Protection Service District is
attached hereto as EXHIBIT B.
C. POPULATION
The proposed district lies in Person County. The current resident population in the proposed
district is approximately 31,022 which is about 78 Persons per square mile.
D. COUNTY TAXES IN THE DISTRICT
The present tax rate levied County-wide are at a rate of .7000 per $100 valuation. There are no
city taxes or special use district taxes in the proposed district.
E. THE ABILITY OF THE PROPOSED DISTRICT TO SUSTAIN ADDITIONAL TAXES
A county service district created in accordance with Chapter 153A, Article 16 is not subject to
the Chapter 69, Article 3A cap, but is instead limited as provided by N.C. General Statute §
153A-307. That limit is up to a combined rate of one dollar and fifty cents($ 1.50) on the one
hundred dollars ($100.00) appraised value of property subject to taxation in accordance with
N.C. General Statute §153A-149. The tax rate is set by the Person County Board of
Commissioners.
There is no reason to find that the residents of the new proposed Person County Special Fire
Protection Service District could not support and pay a service district tax.
G. PLAN FOR PROVIDING SERVICES
The proposed Fire Protection Service District consists of an area that is approximately 397.76
square miles in size. There are currently eight ( 8) volunteer fire departments and four (4) sub-
stations in the proposed district that are staffed with by volunteer personnel and equipment at
each station. The stations are strategically located to ensure the appropriate equipment and
87
response times are for the best of the community that it serves. Each station is equipped with at
least one engine company and one tanker that are staffed by volunteers to provide protection
from all fires in the district.
The County proposes to enter into services contracts with each volunteer fire department to
provide fire protection services within the proposed district. Performance standards and
accounting transparency will be addressed in each contract. All operational plans for providing
services in the district shall be in compliance with Standard Operating Guidelines compiled in
accordance with the Office of the State Fire Marshal.
88
EXHIBIT B
Proposed Person County Fire Protection Service District Boundary Map
89
The Person County Board of
Commissioners is considering creating a
fire service district in order to generate
revenue to fund fire services in the
county.
A Public Hearing shall be held on XXXX
XX, 2018 at Xam at the County Office
Building located at 304 S. Morgan
Street, Room 215, Roxboro, NC 27573.
A map of the fire service district (shown
to the left) and a report that explains
the need for the service district, as
required by State law, are available for
public inspection in the Clerk to the
Board’s office at 304 S. Morgan Street,
Room 212, Roxboro, NC. More
information is available at http://xxxxxxx
RESIDENT
XXX County Road
Timberlake, NC XXXXX
304 South Morgan Street, Room 212
Roxboro, NC 27573‐5245
Countywide, excludes City of Roxboro
90
AGENDA ABSTRACT
Meeting Date: April 23, 2018
Agenda Title: FY2017 Mental Health refund
Background information:
Cardinal Innovations refunded $30,343 in unspent funds from FY17. At the March 29th meeting, the
BOC requested that staff present recommendations for how to spend the funds.
Summary of Information:
All funds will be managed by the Health Department.
Staff has gathered input from mental health providers and generated the following list:
Organization Project title Project Description/Justification Cost
Person Industries Equipment for
IDD program
Shredder, touch screen computer, iPads, curriculum,
and craft supplies. Items would be used to teach
individuals with disabilities about job searches,
technology skills, provide shredding services, and
activities.
$4,615
Human
Resources
Employee
Assistance
Program
Employee Assistance Program (EAP) for all full-time
county staff. The EAP program provides professional
counseling to all employees to help them resolve
substance abuse, financial concerns and stressful
situations that adversely impact work outcomes.
$7,308
Freedom House
Recovery Center
Travel for
Mobile
crisis/Community
support and peer
support
2 surplus county vehicles. FH has 12 people who serve
mental health and substance abuse clients in the
community. This saves a lot of money in repeated
hospital stays, trips to the jail and 911 calls
$7,658
Public Schools Trauma Training
for Educators
Seeking Safety is an evidence-based, present-focused
counseling model to help people attain safety from
trauma and/or substance abuse.
$7,962
Public
Schools/Freedom
House
Chronic stress
training for
mental health
providers
The SPARCS (Structured Psychotherapy for
Adolescents Responding to Chronic Stress) program
was specifically created for teens who have been
exposed to chronic trauma and/or stress.
$1,800
Roots and Wings Mental Health
Awareness items
May is mental health awareness month. Green bracelets
and ribbons would be available to all who wish to
participate in various awareness events.
$1000
TOTAL $30,343
Recommended Action: Provide staff with feedback about funding recommendation and approve
funding.
Submitted By: Assistant County Manager, Sybil Tate
91
AGENDA ABSTRACT
Meeting Date: April 23, 2018
Agenda Title: Cardinal Innovations grant
Background information:
Cardinal Innovations released an RFP for $3.8M to fund mental health programs in the counties that
it serves.
Summary of Information:
EMS is interested in piloting a mental health community paramedic program. A community
paramedic program is a preventative health program that reduces the need for patients to call 911
and return to the hospital. For example, after a mental health patient is discharged from the hospital,
the community paramedic will follow-up with phone and house visits to help patients take their
medication, connect them to resources, and even take them to medical appointments, if necessary.
Reducing call volume and hospital visits saves resources at 911, EMS, and the hospital.
The county is requesting ~$155K from Cardinal for a one year pilot of a mental health community
paramedic program. Funds will pay for a vehicle, medical equipment, and a staff person. Below are
some of the statistics that will be gathered to determine the effectiveness and efficiency of this
program:
Performance Measures
# of individuals served by mental health community paramedic
% decrease of mental health related 911 calls
% decrease of repeat mental health callers to 911
% decrease of mental health related EMS calls ($492.76/EMS call)
% decrease of mental health related EMS transports ($692.79/EMS transport)
% decrease of repeat mental health callers to EMS
% decrease in mental health patients readmitted (within 30 days) to hospital who
participate in the program
% of participants stating that overall health has improved due to program
# of referrals to DSS
# of referrals to Freedom House
# of community outreach presentations
Total $ saved during pilot year
Net cost/savings of program to the hospital
Net cost/savings of program to the county
In the event that this program saves county tax dollars, staff will request funding for the position in
the FY20 budget. If the program does not save the county money, no request will be made.
Recommended Action: Direct staff to submit the grant application to Cardinal
Submitted By: Assistant County Manager, Sybil Tate
92
AGENDA ABSTRACT
Meeting date:
April 23, 2018
Agenda Title:
Resolution Approving an Installment Financing Contract, a Deed of Trust and Other
Documents – Public Safety Tower Communication System Upgrade and County and
School Improvements
Summary of Information:
Finance Director requests action on:
“RESOLUTION APPROVING AN INSTALLMENT FINANCING CONTRACT, A DEED
OF TRUST AND OTHER DOCUMENTS AND APPROVING AND AUTHORIZING
CERTAIN ACTIONS IN CONNECTION WITH FINANCING A PORTION OF THE
COST OF VARIOUS PROJECTS.”
This preamble of the resolution:
states that the County and Board of Education have determined to finance a portion of
the cost of replacing the fire alarm system and three rooftop heating, ventilating and
air conditioning units at Northern Middle School, roofing replacement for Early
Intervention, cooling tower replacements for Helena and Stories Creek Elementary
Schools, and heating and cooling valve replacements at South Elementary
(collectively, the “School Project”) and the County has also determined to finance a
portion of the cost of acquiring, constructing and installing two communication towers
and related facilities and equipment and installing a heating, ventilating and air
conditioning system at the Huck Sansbury Gym (collectively, the “County Project”
and, together with the School Project, the “Project”).
states that the County has determined to finance a portion of the cost of the Project in
an amount not exceeding $4,400,000 pursuant to G.S. Section 160A-20.
lists the financing documents that were included in the agenda packets for review,
including (a) the Installment Financing Contract between the County and BB&T, the
lending institution, that sets up the arrangement for the advancement of funds to the
County to be repaid in installments until the debt is paid; (b) the Deed of Trust which
provides for the pledge of Northern Middle School as security for the County's
obligation to repay the debt; (c) an Administrative Agreement between the County and
the Board of Education which authorizes the conveyance of Northern Middle School
to the County and its lease by the County back to the Board of Education; and (d) the
Lease between the County and Board of Education to lease Northern Middle School to
the Board of Education for the duration of the loan as part of the financing plan.
93
The resolution then contains the following sections:
1. The Board confirms that the Project and its use are essential and will permit the
County to carry out public functions.
2. The Board finds and determines that it is in the best interest of the County to enter
into these financing documents in order to accomplish the financing of a portion of
the cost of the Project.
3. The Board approves the financing documents and authorizes certain County officers
to represent the County in the execution and delivery of final financing documents to
the appropriate parties with any changes that are deemed necessary and appropriate,
provided that the final Installment Payment take place no later than May 1, 2033 and
the amount borrowed does not exceed $4,400,000.
4. The Board approves prior actions of certain officers of the County in connection
with the financing.
5. The Board authorizes County officers and employees to take other actions as needed
to complete the financing.
6. The County covenants to comply with the requirements of the Internal Revenue
Code as applicable to the financing to maintain the tax-exempt status of the interest
to be paid with respect to the loan.
7. The County covenants not to issue more than $10,000,000 of tax-exempt obligations
in 2018 and designates its obligation to repay the loan as bank-qualified.
8. Any invalid provision of the resolution will not affect the remainder of the
resolution.
9. All prior actions of the Board in conflict with the resolution are superseded.
10. The resolution is effective upon its passage by the Board
Recommended Action:
To approve the resolution as presented.
Submitted By:
Amy Wehrenberg, Finance Director
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10754297v1 14038.00024
A regular meeting of the Board of Commissioners for the County of Person, North
Carolina, was held in the Commissioners’ Meeting Room (Room 215) in the Person County Office
Building at 304 Morgan Street, in Roxboro, North Carolina, the regular place of meeting, on April
23, 2018, at 9:00 A.M.
Present: Chairman Tracey L. Kendrick, presiding, and Commissioners ______________
______________________________________________________________________________
_____________________________________________________________________________.
Absent: ________________________________________________________________.
* * * * *
Commissioner _______________________ introduced the following resolution, a copy of
which had been provided to each Commissioner:
RESOLUTION APPROVING AN INSTALLMENT FINANCING CONTRACT,
A DEED OF TRUST AND OTHER DOCUMENTS AND APPROVING AND
AUTHORIZING CERTAIN ACTIONS IN CONNECTION WITH FINANCING
A PORTION OF THE COST OF VARIOUS PROJECTS.
WHEREAS, the County of Person, North Carolina (the “County”), is a validly existing
political subdivision of the State of North Carolina (the “State”), under and by virtue of the
Constitution and laws of the State; and
WHEREAS, the County has the power, pursuant to Section 160A-20 of the General
Statutes of North Carolina, as amended, to (a) finance the purchase of real and personal property
by installment agreements that create in the property purchased a security interest to secure
payment of the purchase price to the entity advancing moneys for such transaction and (b) finance
the construction of fixtures or improvements on real property by agreements that create in such
fixtures or improvements and in the real property on which such fixtures or improvements are
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10754297v1 14038.00024
2
located a security interest to secure repayment of moneys advanced or made available for such
construction; and
WHEREAS, the County and The Person County Board of Education, a body corporate
which has general control and supervision of all matters pertaining to the non-charter public
schools in the Person County Schools, its respective school administrative unit (the “Board of
Education”), have determined to cooperate in a plan to finance a portion of the cost of a project
which each has found to be necessary and desirable to provide for improved public school facilities
and improved public education in such school administrative unit; and
WHEREAS, such project consists of (a) replacing the fire alarm system and three rooftop
heating, ventilating and air conditioning units at Northern Middle School, (b) replacing the roof at
Early Intervention & Family Services, (c) replacing the cooling towers at Helena Elementary
School and Stories Creek Elementary School and (d) replacing heating and cooling unit valves at
South Elementary School (collectively, the “School Project”); and
WHEREAS, the County has also determined to finance a portion of the cost of a project
consisting of (a) acquiring, constructing and installing two communication towers and related
facilities and equipment that are a part of a project to improve the public safety communication
system serving the residents of the County and (b) installing a hearing, ventilating and air
conditioning system at the Huck Sansbury Gym (collectively, the “County Project” and, together
with the School Project, the “Project”); and
WHEREAS, the Board of Commissioners for the County (the “Board”) has now
determined to proceed with the financing pursuant to said Section 160A-20 of a portion of the cost
of the Project in an amount not to exceed $4,400,000 (the “Amount Advanced”), and it is necessary
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10754297v1 14038.00024
3
to approve an installment financing contract, a deed of trust and other documents and approve and
authorize certain actions in connection therewith; and
WHEREAS, there have been presented for consideration by the Board copies of the
following documents relating to such matter:
(a) a draft of an Installment Financing Contract, between the County and Branch
Banking and Trust Company (the “Installment Financing Contract”), under which Branch Banking
and Trust Company (the “Bank”) would advance the Amount Advanced to finance a portion of
the cost of the Project and the County would be obligated to make Installment Payments (as defined
therein) to repay the Amount Advanced and to make certain other payments, among other
requirements, such obligations being subject to termination by the County under certain
circumstances as provided therein;
(b) a draft of a Deed of Trust and Security Agreement (the “Deed of Trust”) which the
County would execute and deliver to a trustee for the benefit of the Bank and which would
encumber the site of Northern Middle School and the improvements on such site and certain related
property, subject to certain exceptions, as security for the County’s obligation to repay the Amount
Advanced and any other funds advanced to it pursuant to the Installment Financing Contract;
(c) a draft of an Agreement Concerning Various School Improvements (the
“Administrative Agreement”) between the Board of Education and the County, under which the
Board of Education would convey to the County the site of Northern Middle School and the
improvements thereon by a General Warranty Deed and undertake certain responsibilities with
respect to the School Project as described therein; and
(d) a draft of a Lease (the “Lease”) between the County, as lessor, and the Board of
Education, as lessee, which provides for the lease by the County to the Board of Education of the
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10754297v1 14038.00024
4
site of Northern Middle School and the improvements thereon as a part of such plan to finance a
portion of the cost of the Project;
NOW, THEREFORE, BE IT RESOLVED by the Board as follows:
Section 1. The Board hereby confirms that the Project and its use are essential for the
improved administration of County government and improved public education in the County and
the Project will permit the County to carry out public functions that it is authorized by law to
perform.
Section 2. The Board hereby finds and determines that it is in the best interest of the
County to enter into the Installment Financing Contract, the Deed of Trust, the Administrative
Agreement and the Lease in order to effectuate the financing of a portion of the cost of the Project
as described above.
Section 3. The form and content of the Installment Financing Contract, the Deed of
Trust, the Administrative Agreement and the Lease, each of which will be a valid, legal and
binding obligation of the County in accordance with its terms, are hereby approved in all respects
and the Chairman of the Board, the County Manager of the County, the Finance Director of the
County, the County Attorney of the County and the Clerk to the Board are hereby authorized and
directed to execute and deliver the Installment Financing Contract, the Deed of Trust, the
Administrative Agreement and the Lease, as may be applicable, in substantially the forms
presented to the Board, together with such additions, changes, modifications and deletions as they,
with the advice of counsel, may deem necessary and appropriate, and such execution and delivery
shall be conclusive evidence of the approval and authorization thereof by the Board and the
County; provided, however, that the due date of the final Installment Payment is not later than
May 1, 2033 and that the Amount Advanced does not exceed $4,400,000.
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Section 4. The Board hereby approves, ratifies and confirms the actions of the County
Manager, the Finance Director and the County Attorney of the County in connection with this
matter.
Section 5. The officers and employees of the County are authorized and directed
(without limitation except as may be expressly set forth herein) to take such other actions and to
execute and deliver such other documents, certificates, undertakings, agreements or other
instruments as they, with the advice of counsel, may deem necessary or appropriate to effectuate
the transactions contemplated by the Installment Financing Contract, the Deed of Trust, the
Administrative Agreement and the Lease.
Section 6. The County covenants that, to the extent permitted by the Constitution and
laws of the State of North Carolina, it will comply with the requirements of the Internal Revenue
Code of 1986, as amended (the “Code”), as applicable to the Installment Financing Contract except
to the extent that the County obtains an opinion of nationally-recognized bond counsel to the effect
that noncompliance would not result in the interest components of the Installment Payments being
includable in the gross income of the recipient thereof under Section 103 of the Code, as more
specifically provided in the Installment Financing Contract.
Section 7. The County hereby finds, declares and represents that (a) it reasonably
expects that it, all entities subordinate to the County and all entities that issue obligations on behalf
of the County (all within the meaning of Section 265(b)(3)(E) of the Code) will not issue in the
aggregate more than $10,000,000 of tax-exempt obligations (not counting private-activity bonds
and certain refunding bonds as provided in Section 265(b)(3)(C)(ii) of the Code) during the current
calendar year and (b) no entity has been or will be formed or availed of to avoid the limits described
above. In addition, the County hereby designates its obligations to make Installment Payments
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under the Installment Financing Contract as a “qualified tax-exempt obligation” for the purposes
of Section 265(b)(3) of the Code.
Section 8. If any section, phrase or provision of this resolution is for any reason
declared to be invalid, such declaration shall not affect the validity of the remainder of the sections,
phrases or provisions of this resolution.
Section 9. All motions, orders, resolutions, ordinances and parts thereof in conflict
herewith are hereby superseded.
Section 10. This resolution shall take effect immediately upon its passage.
Upon motion duly made, the foregoing resolution was passed by the following vote:
Ayes: Commissioners ____________________________________________________
_____________________________________________________________________________.
Noes: _________________________________________________________________.
* * * * *
I, Brenda B. Reaves, Clerk to the Board of Commissioners for the County of Person, North
Carolina, DO HEREBY CERTIFY that the foregoing is a true copy of so much of the proceedings
of said Board at a regular meeting held on April 23, 2018 as relates in any way to the matters
described therein.
I HEREBY FURTHER CERTIFY that notice of said meeting was duly given in accordance
with G.S. §143-318.12.
WITNESS my hand and the corporate seal of said County, this ____ day of April 2018.
__________________________________________
Clerk to the Board of Commissioners
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DEED OF TRUST AND SECURITY AGREEMENT
Prepared by: Return to:
Gundars Aperans, Esq. BB&T Collateral Service Corporation
Robinson, Bradshaw & Hinson, P.A.
101 North Tryon Street, Suite 1900 5130 Parkway Plaza Boulevard
Charlotte, North Carolina 28246 Charlotte, North Carolina 28217
Attention: Governmental Finance
STATE OF NORTH CAROLINA
COUNTY OF PERSON
(COLLATERAL IS OR INCLUDES FIXTURES)
This DEED OF TRUST AND SECURITY AGREEMENT, made and entered into this
10th day of May 2018 (this “Deed of Trust”), from the COUNTY OF PERSON, NORTH
CAROLINA, a body corporate and politic and a political subdivision of the State of North
Carolina, whose address is 304 South Morgan Street, Room 219, Roxboro, North Carolina 27573-
5245, Attention: Finance Director and whose organization number is 56 - 6000321, as grantor (the
“Grantor”), to BB&T Collateral Service Corporation, a North Carolina business corporation,
whose address is 5130 Parkway Plaza Boulevard, Charlotte, North Carolina 28217, Attention:
Governmental Finance, as trustee (the “Trustee”), for the benefit of BRANCH BANKING AND
TRUST COMPANY, a North Carolina state-chartered bank, duly organized and existing under
the laws of the State of North Carolina, whose address is 5130 Parkway Plaza Boulevard,
Charlotte, North Carolina 28217, Attention: Governmental Finance (the “Bank” and, together with
its successors and assigns, the “Beneficiary”);
W I T N E S S E T H:
WHEREAS, the Grantor and the Bank have entered into an Installment Financing Contract
dated as of even date herewith (the “Installment Financing Contract”), pursuant to which (i) the
Bank has agreed to advance certain moneys to enable the Grantor to finance a portion of the cost
of the Project (as defined in the Installment Financing Contract) and (ii) the Grantor has agreed to
make the Installment Payments and Additional Payments (as each such term is defined in the
Installment Financing Contract) to the Bank;
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WHEREAS, this Deed of Trust has been executed and delivered to secure (i) the
obligations of the Grantor to make the Installment Payments and Additional Payments and (ii) the
performance of all of the other liabilities and obligations, whether now existing or hereafter arising,
of the Grantor to the Bank under the Installment Financing Contract (all such obligations and
liabilities described in (i) or (ii) above being hereinafter collectively called the “Indebtedness”);
and
WHEREAS, the Grantor desires to secure (i) the payment of the Indebtedness and any
renewals, modifications or extensions thereof, in whole or in part, and (ii) 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 consideration of the above preambles and for the purposes
aforesaid, and in further consideration of the sum of Ten Dollars ($10.00) paid to the Grantor by
the Trustee and other valuable consideration, receipt of which is hereby acknowledged, the Grantor
has given, granted, bargained, sold and conveyed, and by these presents does give, grant, bargain,
sell and convey, unto the Trustee, its heirs, successors and assigns, the following property
(collectively the “Premises”):
(a) The real property lying and being in the County of Person, North Carolina
and described below in the legal description attached as Exhibit A hereto (collectively the
“Real Property”):
SEE EXHIBIT A ATTACHED HERETO FOR THE REAL
PROPERTY DESCRIPTION, WHICH EXHIBIT A IS
SPECIFICALLY INCORPORATED HEREIN BY REFERENCE.
(b) All buildings, structures, additions and other improvements of every nature
whatsoever now or hereafter situated on or about the Real Property (collectively the
“Improvements”).
(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,
replacements 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 Premises 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.
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(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 emblements 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 Premises 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 Premises or any part thereof and all income, rents
and issues of the Premises 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 held 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 so long as the Grantor is not in Default hereunder.
SUBJECT, HOWEVER, to such of the Permitted Encumbrances (as defined in Exhibit B
hereto and specifically incorporated herein by reference) as are superior to the security created by
this Deed of Trust and excluding all data processing or telecommunications equipment, all mobile
or modular classrooms, all other property excluded from the lien or security interest of the Bank
under the Installment Financing Contract and all property released pursuant to the provisions of
the Installment Financing Contract or this Deed of Trust.
TO HAVE AND TO HOLD, the Premises unto the Trustee, its heirs, successors and
assigns, in fee simple forever, upon the trusts, terms and conditions and for the uses and purposes
hereinafter set out;
And the Grantor covenants with the Trustee that the Grantor is lawfully seized of the
Premises in fee simple and has the right to convey the same in fee simple; that, except for Permitted
Encumbrances, 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 of the Grantor.
THIS DEED OF TRUST secures an obligation incurred for the construction of an
improvement on the real property covered hereby and as such constitutes a “construction
mortgage” under Section 25-9-334 of the General Statutes of North Carolina.
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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 as provided
in the Installment Financing Contract and as permitted by law.
Section 1.2 Taxes, Liens and Other Charges.
(a) The Grantor will pay, or cause to be paid, 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 Premises; and will furnish the Beneficiary, on or before the final date whereon the same
can be paid without penalty, evidence of the due and punctual payment of all such taxes, liens,
assessments 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 (i) the collection thereof or other realization thereof
and the sale or forfeiture of the Premises or any part thereof to satisfy the same or (ii) the
enforcement thereof, against the Grantor, the Trustee, the Beneficiary and the Premises 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 Premises. 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 Insurance. The Grantor shall obtain and maintain, or cause to be obtained
and maintained, during the term of this Deed of Trust the insurance coverage specified in the
Installment Financing Contract.
The net proceeds from any related insurance policy or policies shall 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 if it has complied with Section 8.3 of the Installment Financing Contract.
In the event of the foreclosure of this Deed of Trust or any other transfer of title to the
Premises in extinguishment of the Indebtedness secured hereby, all right, title and interest of the
Grantor or the Board of Education (as defined in the Installment Financing Contract) in and to all
insurance policies then in force shall pass to the purchaser or Beneficiary, as appropriate.
Section 1.4 Condemnation. Any award for the taking of, or damage to, all or any part
of the Premises or any interest therein upon the lawful exercise of the power of eminent domain
shall be payable and applied as provided in the Installment Financing Contract. The Grantor shall
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give immediate notice to the Bank of the institution of any action or proceeding to condemn any
part of the Premises or any interest therein of which the Grantor receives notice.
Section 1.5 Care of Premises.
(a) The Grantor will keep or cause the Board of Education to 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 (ordinary wear and tear excepted), will not commit or 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 Premises or
any part thereof.
(b) Except in the ordinary course of its business or as provided in Section 6.1 of the
Installment Financing Contract, the Grantor will not remove, demolish or alter or permit to be
removed, demolished or altered the structural character of any Improvement located on the Real
Property or any Fixture without the prior written consent of the Beneficiary.
(c) If the Premises or any part thereof is damaged by fire or any other cause, the Grantor
will give immediate notice thereof to the Beneficiary and the Trustee.
(d) Upon reasonable prior notice to the Grantor or the Board of Education, as may be
applicable, the Beneficiary or its representative is hereby authorized to enter upon and inspect the
Premises at any time during normal business hours. The Beneficiary agrees that any confidential
information about the Grantor or the Board of Education obtained in the exercise of its rights under
this subsection shall, except as otherwise required by law 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 comply promptly or cause the Board of Education to comply
promptly 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 Premises or any part thereof.
Section 1.6 Leases Affecting Premises. The Beneficiary hereby approves the Lease
(as defined in the Installment Financing Contract), and the Board of Education may sublease any
portion of the Premises as provided in the Installment Financing Contract.
Section 1.7 Security Agreement and Financing Statement. 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
Premises, and the Grantor hereby grants a security interest to the Beneficiary in and to all of such
Fixtures. Upon request by the Beneficiary, at any time and from time to time, a financing statement
or statements reciting this Deed of Trust to be a security agreement affecting all of such property
shall be executed by the Grantor and the Beneficiary and filed in accordance with the provisions
of the Uniform Commercial Code as enacted in the State of North Carolina applicable to the
perfection of security interests by filing financing statements thereunder. The remedies for any
violation of the covenants, terms and conditions of the security agreement contained in this Deed
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of Trust shall be (i) as prescribed herein or (ii) as prescribed by general law, at the Beneficiary’s
sole election.
This Deed of Trust shall constitute a financing statement filed as a fixture filing in
accordance with Section 25-9-502 of the North Carolina General Statutes (or any amendment
thereto). For these purposes, the Grantor is the “debtor,” the Beneficiary is the “secured party”,
the Fixtures are the “collateral” and the addresses of the debtor and the secured party are provided
in Section 3.5.
Section 1.8 Further Assurances. 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, to continue and
preserve or to give notice of (a) the obligations of the Grantor under the Installment Financing
Contract or this Deed of Trust and (b) the lien of this Deed of Trust as a first and prior lien, subject
to Permitted Encumbrances, upon and security title in and to all of the Premises, whether now
owned or hereafter acquired by the Grantor. Upon any failure by the Grantor so to do, the
Beneficiary may make, execute, record, file, re-record and/or refile any and all such deeds of trust,
security agreements, financing statements, continuation statements, instruments, certificates, and
documents for and in the name of the Grantor and the Grantor hereby irrevocably appoints the
Beneficiary as its agent and attorney-in-fact to do so.
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 dispute 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 Premises, including, but not limited to, the exercise of the power of sale contained
in this Deed of Trust, any condemnation action involving the Premises or any action to protect the
security hereof, but excepting therefrom any negligence or willful misconduct by the Beneficiary
or any breach of this Deed of Trust by the Beneficiary; and all such amounts paid by the
Beneficiary shall be added to the Indebtedness.
Section 1.10 Estoppel Affidavits. The Grantor upon ten (10) days’ prior written notice,
shall furnish the Beneficiary a written statement, duly acknowledged, setting forth the unpaid
principal of, and interest on, the Indebtedness and whether or not any offsets or defenses exist
against the payment of such principal and interest.
Section 1.11 Subrogation. The Beneficiary shall be subrogated to the claims and liens
of all parties whose 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
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accounts relating to the Premises. 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
obligation pursuant to any provision of this Deed of Trust or the Installment Financing Contract,
at the time performance of such obligation 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 shall any exaction be possible
under this Deed of Trust or the Installment Financing Contract that is in excess of the current limit
of such validity, 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 (a) 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 Beneficiary for, the extending to the Grantor of the Indebtedness and
(b) any change in such identity or expertise could materially impair or jeopardize the security for
the payment of the Indebtedness granted 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 Premises or any portion thereof without
the prior written consent of the Beneficiary or except as otherwise permitted herein or in the
Installment Financing Contract.
Section 1.15 Use and Management of the Premises. The Grantor shall not alter or
change the use of the Premises or abandon the Premises without the prior written consent of the
Beneficiary or except as otherwise permitted herein or in the Installment Financing Contract.
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 Bank in writing: (i) the Grantor has not used or installed any Hazardous Material (as
hereinafter defined) in violation of applicable Environmental Laws (as hereinafter defined) on,
from or in the Premises and, to the best of the Grantor’s actual knowledge, no other person has
used or installed any Hazardous Material on, from or in the Premises; (ii) to the best of the
Grantor’s actual knowledge, no other person has violated any applicable Environmental Laws
relating to or affecting the Premises; (iii) to the best of the Grantor’s actual knowledge, the
Premises are presently in compliance with all applicable Environmental Laws, and there are no
facts or circumstances presently existing upon or under the Premises, or relating to the Premises,
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which may violate any applicable Environmental Laws, and there is not now pending or threatened
any action, suit, investigation or proceeding against the Grantor or the Premises (or against any
other party relating to the Premises) seeking to enforce any right or remedy against the Grantor or
the Premises under any of the Environmental Laws; (iv) the Premises shall be kept free of
Hazardous Materials to the extent required by applicable Environmental Laws, and shall not be
used to generate, manufacture, refine, transport, treat, store, handle, dispose, transfer, produce, or
process Hazardous Materials, except as a necessary incident to the normal operation and
maintenance of the Premises by the Board of Education as public school facilities and in
connection with acquisition, construction and installation of the Project (as defined in the
Installment Financing Contract) and any additional Improvements on the Real Property; (v) the
Grantor shall not cause or permit the installation of Hazardous Materials in, on, over or under the
Premises or a Release (as hereinafter defined) of Hazardous Materials unto or from the Premises
or suffer the presence of Hazardous Materials in, on, over or under the Premises in violation of
applicable Environmental Laws; (vi) the Grantor shall comply or cause the Board of Education to
comply with Environmental Laws applicable to the Premises, all at no cost or expense to the
Beneficiary or the Trustee; (vii) the Grantor or the Board of Education has obtained and the Grantor
will at all times continue to obtain and/or maintain or cause the Board of Education to continue to
obtain and/or maintain all licenses, permits and/or other governmental or regulatory actions
necessary for the Premises to comply with applicable Environmental Laws (the “Permits”) and the
Grantor will be and at all times remain or cause the Board of Education to be and at all times
remain in full compliance with the terms and provisions of the Permits; (viii) to the best of the
Grantor’s actual knowledge, there has been no Release of any Hazardous Materials on or from the
Premises in violation of applicable Environmental Laws, whether or not such Release emanated
from the Premises or any contiguous real estate, which has not been abated and any resulting
violation of applicable Environmental Laws abated; (ix) the Grantor shall immediately give or
cause the Board of Education to 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 Premises and the Grantor shall conduct and
complete or cause the Board of Education to 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 Premises in accordance with all
applicable Environmental Laws.
(b) To the extent permitted by law and subject to the provisions of Section 160A-20 of
the General Statutes of North Carolina, as amended (“G.S. § 160A-20”), 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, reasonable 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 Premises for, with respect to, or as a direct or indirect result of: (i) the presence of Hazardous
Materials in, on or under the Premises, or the escape, seepage, leakage, spillage, discharge,
emission or Release on or from the Premises of any Hazardous Materials regardless of whether or
not caused by or within the control of the Grantor; (ii) the violation of any Environmental Laws
applicable to the Premises or the Grantor, whether or not caused by or within the control of the
Grantor; (iii) the failure by the Grantor to comply fully with the terms and provisions of this
Section; (iv) the violation of any of the Environmental Laws in connection with any other property
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owned by the Grantor, which violation gives or may give rise to any rights whatsoever in any party
with respect to the Premises by virtue of any of the Environmental Laws, whether or not such
violation is caused by or within the control of the Grantor; or (v) any warranty or representation
made by the Grantor in subsection (a) of this Section being false or untrue in any material respect.
(c) In the event the Beneficiary has a reasonable basis to suspect that the Grantor has
violated any of the covenants, warranties, or representations contained in this Section, or that the
Premises are not in compliance with the applicable Environmental Laws for any reason, the
Grantor shall take such steps as the Beneficiary reasonably requires by 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
its 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: (i) “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 1980, or in any applicable state or local law or
regulation, (b) hazardous substances, as defined in the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (“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 1976, or in any applicable state or local law or
regulation or (e) insecticides, fungicides, or rodenticides, as defined in the Federal Insecticide,
Fungicide, and Rodenticide Act of 1975, or in any applicable state or local law or regulation, as
each such Act, statute or regulation may be amended from time to time; (ii) “Release” shall have
the meaning given such term in the Environmental Laws, including, without limitation, Section
101(22) of CERCLA; and (iii) “Environmental Law” or “Environmental Laws” shall mean any
“Super Fund” or “Super Lien” law, or any other federal, state or local statute, law, ordinance or
code, regulating, 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 Reauthorization Act of 1986 (“SARA”); CERCLA; The Clean Air Act
(“CAA”); the Clean Water Act (“CWA”); The Toxic Substance Control Act (“TSCA”); the Solid
Waste Disposal Act (“SWDA”), as amended by the Resource Conservation and Recovery Act
(“RCRA”); the Hazardous Waste Management System; and the Occupational Safety and Health
Act of 1970 (“OSHA”). The obligations and liabilities of the Grantor under this Section which
arise out of events or actions occurring prior to the satisfaction of this Deed of Trust shall survive
the exercise of the power of sale under or foreclosure of this Deed of Trust, the delivery of a deed
in lieu of foreclosure of this Deed of Trust, the cancellation or release of record of this Deed of
Trust, and/or the payment in full of the Indebtedness.
(e) The parties expressly agree that an event under the provisions of this Section which
may be deemed to be a default under this Deed of Trust shall not be a default until the Grantor has
received notice of such event. Further, in terms of compliance with future governmental laws,
regulations or rulings applicable to environmental conditions, the Grantor shall be permitted to
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afford itself of any defense or other protection against the application or enforcement of any such
law, regulation or ruling.
ARTICLE II
Section 2.1 Events of Default. The terms “Default”, “Event of Default” or “Events of
Default”, wherever used in this Deed of Trust, shall mean any one or more of the following events:
(a) Failure by the Grantor to pay when due, any Installment Payment as required by
the Installment Financing Contract or by this Deed of Trust.
(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 this Deed of Trust.
(c) Any warranty of the Grantor contained in this Deed of Trust proves to be untrue or
misleading in any material respect.
(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 take any one
or more of the following actions:
(a) Either in person or by agent, with or without bringing any action or proceeding, or
by a receiver appointed by a court as hereinafter provided and without regard to the adequacy of
its security, enter upon and take possession of the Premises, or any part thereof, in its own name
or in the name of the Trustee, and do any acts which it deems necessary or desirable to preserve
the value, marketability or rentability of the Premises, or part thereof or interest therein, increase
the income therefrom or protect the security hereof, and, with or without taking possession of the
Premises, 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 Premises, the collection of such rents
and issues and the application 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
Premises or the collection, receipt and application of rents and issues, 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 this Deed of Trust as a mortgage, appoint a
receiver as hereinafter provided, specially enforce any of the covenants hereof, or cause the Trustee
to foreclose this Deed of Trust by power of sale.
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(c) Exercise any or all of the remedies available to a secured party under any applicable
laws.
Notwithstanding any provision to the contrary in this Deed of Trust, no deficiency
judgment may be rendered against the Grantor in any action to collect any of the Indebtedness
secured by this Deed of Trust in violation of G.S. § 160A-20, including, without limitation, any
deficiency judgment for amounts that may be owed under the Installment Financing Contract or
this Deed of Trust when the sale of all or any portion of the Premises is insufficient to produce
enough money to pay in full all remaining Indebtedness under the Installment Financing Contract
or this Deed of Trust, and the taxing power of the Grantor is not and may not be pledged directly
or indirectly or contingently to secure any moneys due or secured under this Deed of Trust.
Section 2.3 Foreclosure by Power of Sale. Should the Beneficiary elect to foreclose
by exercise of the power of sale herein contained, the Beneficiary shall notify the Trustee and shall
deposit with the Trustee this Deed of Trust and such receipts and evidence of expenditures made
and secured hereby as the Trustee may require.
Upon application of the Beneficiary, it shall be lawful for and the duty of the Trustee, and
the Trustee is hereby authorized and empowered, to expose to sale and to sell the Premises at
public auction for cash, after having first complied with all applicable requirements of laws of the
State of North Carolina with respect to the exercise of powers of sale contained in deeds of trust,
and upon such sale the Trustee shall convey title to the purchaser in fee simple. After retaining
from the proceeds of such sale just compensation for the Trustee’s services and all expenses
incurred by the Trustee, including the Trustee’s commission not exceeding one percent (1%) of
the bid and reasonable attorneys’ fees for legal services actually performed, the Trustee shall apply
the residue of the proceeds first to the payment of all sums expended by the Beneficiary under the
terms of this Deed of Trust; second, to the payment of the Indebtedness secured hereby; and the
balance, if any, shall 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 successful bidder
at any sale to deposit immediately with the Trustee cash or certified check in an amount not to
exceed twenty-five percent (25%) of the bid, provided notice of such requirement is contained in
the advertisement of the sale. 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 shall 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 Grantor. If the
Grantor shall default in the payment, performance or observance of any term, covenant or
condition 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, immediately repaid by the Grantor
to the 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 paid but no such action shall be taken unreasonably. The Beneficiary is hereby empowered to
enter and to authorize others to enter upon the Premises or any part thereof for the purpose of
performing or observing any such defaulted term, covenant or condition without thereby becoming
liable to the Grantor or any person in possession holding under the Grantor.
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Section 2.5 Receiver. If an Event of Default shall have occurred and is continuing and
such Event of Default as to Events of Default occurring under subsections (b), (c) and (d) of
Section 2.1 continues uncured for a period of thirty (30) days or more after notice of such Event
of Default is given by the Beneficiary to the Grantor, the Beneficiary, upon application to a court
of competent jurisdiction, shall be entitled as a matter of strict right 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 appointment of a receiver or receivers to take possession
of and to operate the Premises and to 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 subsection (a) of Section 2.2, and shall continue as such
and exercise all such powers until the date of confirmation of sale of the Premises unless such
receivership is sooner terminated. Subject to the provisions of Section 2.2, 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 Premises, 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 subject to the
rights of any tenants of the Premises, 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.
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Section 2.9 Remedies Not Exclusive. Subject to Article XV of the Installment
Financing Contract and Section 2.2 of this Deed of Trust, 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 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 lawful 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 2.10 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, irrespective 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 Premises. 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 Premises 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 Premises 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.
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Section 2.12 The 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.
Section 2.13 Waiver of Rights. By execution of this Deed of Trust and to the extent
permitted by law, the Grantor expressly: acknowledges the right to accelerate the Indebtedness
and the power of sale given herein to the Trustee to sell the Premises by foreclosure under power
of sale 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 under the provisions of this Deed of Trust; waives any
and all rights of the Grantor to appraisement, dower, curtsey and homestead rights to the extent
permitted by applicable law; acknowledges that the Grantor has read this Deed of Trust and any
and all questions regarding the legal effect of this Deed of Trust and its provisions have been
explained fully to the Grantor and the Grantor has consulted with counsel of its choice prior to
executing this Deed of Trust; and acknowledges that all waivers of the aforesaid rights of the
Grantor have been made knowingly, intentionally and willingly by the Grantor as part of a
bargained for transaction.
ARTICLE III
Section 3.1 Successors and 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.
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 singular shall
include the plural, and vice versa. Titles and articles in this Deed of Trust 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 shall refer to the corresponding articles, sections or
subsections of this Deed of Trust unless specific reference is made to articles, sections or
subsections 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 provision to other persons or circumstances shall
not be affected thereby and shall be enforced to the greatest extent permitted by law.
Section 3.4 Governing Law. This Deed of Trust shall be construed and governed
according to the laws of the State of North Carolina.
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Section 3.5 Notices, Demands and Requests. All notices, demands or requests
provided for or permitted to be given pursuant to this Deed of Trust (a) must be in writing (not
including facsimile transmission or electronic mail) and (b) shall be deemed to have been properly
given when personally delivered or delivered on the date shown on a United States Mail certified
mail receipt or a delivery receipt (or similar evidence) from a national commercial package
delivery service and addressed to the addresses as follows: (i) if to the County, County of Person,
North Carolina, 304 South Morgan Street, Room 219, Roxboro, North Carolina 27573-5245,
Attention: Finance Director, with a copy to County of Person, North Carolina, 304 South Morgan
Street, Room 212, Roxboro, North Carolina 27573-5245, Attention: County Manager, (ii) if to
the Beneficiary, Branch Banking and Trust Company, 5130 Parkway Plaza Boulevard, Charlotte,
North Carolina 28217, Attention: Governmental Finance and (iii) if to the Deed of Trust Trustee,
BB&T Collateral Service Corporation, 5130 Parkway Plaza Boulevard, Charlotte, North Carolina
28217, Attention: Governmental Finance.
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 the Trustee. The Beneficiary shall at any
time have the irrevocable right to remove the Trustee herein named without notice or cause and to
appoint a successor thereto by an instrument in writing, duly acknowledged, in such form as to
entitle such written instrument to be recorded in the State of North Carolina, 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 Trustee so appointed shall be vested with
the title to the Premises 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 The 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 Premises, the Trustee
may (i) reconvey any part of the Premises, (ii) consent in writing to the making of any map or plat
thereof, (iii) join in granting any easement therein, or (iv) join in any extension agreement or any
agreement subordinating the lien or charge hereof.
Section 3.8 The Beneficiary’s Powers. Without affecting the liability of any other
person liable for the payment of any obligation herein mentioned, and without affecting the lien or
charge of this Deed of Trust upon any portion of the Premises not then or theretofore released as
security for the full amount of all unpaid obligations, the Beneficiary may, from time to time and
without notice (i) release any person so liable, (ii) extend the maturity or alter any of the terms of
any such obligation, (iii) grant other indulgences, (iv) cause to be released or reconveyed at any
time at the Beneficiary’s option, any parcel, portion or all of the Premises, (v) take or release any
other or additional security for any obligation herein mentioned, or (vi) make compositions or
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other arrangements with debtor in relation thereto. The provisions of Section 45-45.1 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 this Deed of Trust.
Section 3.9 Release of Premises.
(a) If no Event of Default under this Deed of Trust shall have occurred and shall
continue to exist, the Grantor may at any time or times grant easements, licenses, rights of way
and other rights or privileges in the nature of easements with respect to any part of the Premises,
and the Grantor may release existing interests, easements, licenses, rights of way and other rights
or privileges with or without consideration, and the Beneficiary agrees that it shall execute and
deliver and will cause, request or direct the Deed of Trust Trustee to execute and deliver any
instrument 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 (i) a copy of the instrument of grant or
release, (ii) a written application signed by the Grantor requesting such instrument and (iii) a
certificate executed by the Grantor and reasonably acceptable to the Beneficiary to the effect that
the grant or release (A) is not detrimental to the effective use of the Premises or the proper conduct
of the operations of the Board of Education at the Premises and (B) will not materially impair the
value of the security under this Deed of Trust in contravention of the provisions hereof.
(b) Upon the Grantor exercising its rights to dispose of any Fixtures in accordance with
the provisions of Section 6.1 of the Installment Financing Contract, the Beneficiary and the Trustee
will execute all releases or other documents necessary to effectuate the release of the respective
Fixtures from the lien of this Deed of Trust.
Section 3.10 Acceptance by the Trustee. The Trustee accepts this Trust when this Deed
of Trust, duly executed and acknowledged, is made of public record as provided by law.
Section 3.11 Miscellaneous. The covenants, terms and conditions herein contained shall
bind, and the benefits and powers shall inure to the respective heirs, executors, administrators,
successors and assigns of the parties hereto. Whenever used herein, the 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 otherwise.
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IN WITNESS WHEREOF, the Grantor has caused this Deed of Trust to be executed
under seal the day and year first above written.
COUNTY OF PERSON, NORTH CAROLINA
By: ____________________________________
Tracey L. Kendrick
Chairman of the Board of Commissioners
for the County
[SEAL]
ATTEST:
_______________________________
Brenda B. Reaves
Clerk to the Board of Commissioners
for the County
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STATE OF NORTH CAROLINA )
)
COUNTY OF PERSON )
I, _________________________________, a Notary Public, certify that Tracey L.
Kendrick personally came before me this day and acknowledged that he is the Chairman of the
Board of Commissioners for the County of Person, North Carolina, and that, by authority duly
given and as the act of said County, the foregoing instrument was signed in its name by him, sealed
with its seal, and attested by Brenda B. Reaves, the Clerk to the Board of Commissioners for said
County.
WITNESS my hand and notarial seal, this _____ day of May 2018.
My commission expires: __________________________________________
Notary Public
____________________
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A-1
EXHIBIT A
REAL PROPERTY DESCRIPTION
The Real Property consists of a tract or parcel of land described as follows:
Being that tract of land lying in Roxboro Township, Person County, North Carolina,
bounded on the North by the lands of Piedmont Technical Institute; on the East by the lands
of Collins & Aikman Corporation, the lands of William Cozart and W. Ruffin Woody, Jr.;
bounded on the South by the center line of a Carolina Power & Light Company power line
easement and bounded on the West by Rosemary Creek, containing 40 acres, more or less
and more particularly described as follows: BEGINNING at an iron pin lying in the center
line of Rosemary Creek and marking the southwestern corner of the lands of Piedmont
Technical Institute; thence along and with the southern line of the lands of said Institute
South 89° 52’ 18” East 2,223.62 feet to a concrete monument; thence along and with the
western line of the lands of Collins & Aikman Corporation South 1° 17’ 53” West 146.91
feet to a concrete monument; thence along and with the western line of the lands of William
Cozart South 1° 7’ 15” West 767.22 feet to an iron pin; thence along and with the western
line of the lands of W. Ruffin Woody, Jr. South 1° 8’ 52” West 207.78 feet to an iron pin
lying in the center line of the Carolina Power & Light Company power line easement;
thence along and with the center line of said power line easement North 73° 24’ 57” West
2,437.35 feet to an iron pin lying in the center line of Rosemary Creek; thence along and
with the center line of said creek as it meanders the following courses and distances: North
41° 35’ 33” East 131.32 feet to an iron pin; thence North 11° 16’ 21” East 243.09 feet to
an iron pin; thence North 0° 5’ 36” East 94.36 feet to that iron pin marking the southwestern
corner of the lands of Piedmont Technical Institute and being the point and place of
beginning and being all of the lands lying to the North of the center line of the Carolina
Power & Light Company power line easement as shown on that plat of survey made by
Phillip J. Hall, Surveyor, dated November, 1974, entitled “Property of Frank Howard
Estate” and recorded in Plat Book 20, at page 90, Person County Registry; said plat being
hereby specifically incorporated by reference.
All the above-described lands lying within the 70-foot wide power line right of way shown
on the above-described plat of survey are subject to an easement in favor of Carolina Power
& Light Company.
The above described property is currently operated as Northern Middle School.
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B-1
EXHIBIT B
PERMITTED ENCUMBRANCES
Permitted encumbrances (the “Permitted Encumbrances”) are as follows:
(1) easements, exceptions or reservations (i) for the purpose of pipelines, telephone
lines, cable television lines, telegraph lines, power lines and substations, roads, streets, alleys,
highways, parking, railroad purposes, drainage and sewerage purposes, dikes, canals, laterals,
ditches, transportation of oil, gas or other materials, removal of oil, gas or other materials, and
other like purposes, or (ii) for the joint or common use of real property, facilities and equipment,
which exist on the Closing Date (as defined in the Installment Financing Contract) or arise under
the provisions of Section 3.9 of this Deed of Trust and which, in the case of either (i) or (ii), in the
aggregate do not materially interfere with or impair the operation of the Premises for the purposes
for which they are or may reasonably be expected to be used;
(2) the rights of the Bank under the Installment Financing Contract;
(3) the lien of this Deed of Trust;
(4) the Lease (as defined in the Installment Financing Contract) and any sublease by
the Board of Education in conformity with the provisions of Section 6.11 of the Installment
Financing Contract, all of which are expressly subordinate to the lien of this Deed of Trust;
(5) any materialmen’s liens incurred in the ordinary course of business and not
remaining undischarged for more than sixty (60) days from the date thereof; and
(6) any other liens, encumbrances, charges and restrictions on the Real Property
described in ___________________________________________________________________,
or approved in writing by the Bank.
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LEASE
by and between
PERSON COUNTY, NORTH CAROLINA
AS LESSOR
and
THE PERSON COUNTY BOARD OF EDUCATION
AS LESSEE
Dated May 10, 2018
After recording, please return to:
C. Ronald Aycock, Esq.
County of Person, North Carolina
304 South Morgan Street
Roxboro, North Carolina 27573-5245
This document was prepared by:
Gundars Aperans, Esq.
Robinson, Bradshaw & Hinson, P.A.
101 North Tryon Street, Suite 1900
Charlotte, North Carolina 28246
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LEASE
THIS LEASE, dated May 10, 2018, and entered into by and between the County of Person,
North Carolina, a body corporate and politic and a political subdivision of the State of North
Carolina, as lessor (the “County”), and The Person County Board of Education, a body corporate
which has general control and supervision of all matters pertaining to the non-charter public
schools in the Person County Schools, its respective school administrative unit, and is duly
organized and existing under the laws of the State of North Carolina, as lessee (the “Board of
Education”),
W I T N E S S E T H:
WHEREAS, the County and the Board of Education have determined to cooperate in a
plan to finance a portion of the cost of a project which each has found to be necessary and desirable
to provide for improved public school facilities and improved public education in such school
administrative unit;
WHEREAS, such project consists of (a) replacing the fire alarm system and three rooftop
heating, ventilating and air conditioning units at Northern Middle School, (b) replacing the roof at
Early Intervention & Family Services, (c) replacing the cooling towers at Helena Elementary
School and Stories Creek Elementary School and (d) replacing heating and cooling unit valves at
South Elementary School, as more particularly described in the Installment Financing Contract
hereinafter defined (collectively, the “School Project”);
WHEREAS, the County has also determined to finance a portion of the cost of a project
consisting of (a) acquiring, constructing and installing two communication towers and related
facilities and equipment that are a part of a project to improve the public safety communication
system serving the residents of the County and (b) installing a heating, ventilating and air
conditioning system at the Huck Sansbury Gym, as more particularly described in the Installment
Financing Contract (collectively, the “County Project” and, together with the School Project, the
“Project”);
WHEREAS, as a part of such plan, the Board of Education has executed a General
Warranty Deed, made May 10, 2018, conveying the site of Northern Middle School and the
improvements thereon to the County and the County is to lease such property and the
improvements thereon to the Board of Education (such property as more particularly described in
Exhibit A hereto and the improvements thereon being collectively called the “Leased Property”);
WHEREAS, as a part of such plan, the County has entered into an Installment Financing
Contract, dated May 10, 2018, between the County and Branch Banking and Trust Company (the
“Bank”), providing for the financing of a portion of the cost of the Project (the “Installment
Financing Contract”), a copy of which is attached hereto as Exhibit B;
WHEREAS, as a part of such plan, the County and the Board of Education have entered
into an Agreement Concerning Various School Improvements, dated May 10, 2018, providing,
among other matters, for the lease of the Leased Property by the County to the Board of Education
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and the acquisition, construction and installation of the School Project (the “Administrative
Agreement”); and
WHEREAS, as a part of such plan, the County proposes to lease 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 promises and covenants
herein contained, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS; RULE OF CONSTRUCTION
All capitalized terms used in this Lease and not otherwise defined herein shall have the
meanings assigned to them in the Installment Financing Contract, unless the context clearly
requires otherwise. In addition, the following terms will 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 furnished to the County and signed on the Board of Education’s behalf by its Chair
Person, 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 Installment Financing 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 events of default as defined 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 Closing Date through December 31, 2018, and,
thereafter, means the twelve-month period of each year commencing on January 1 and ending on
the next December 31.
All references to articles or sections are references to articles or sections of this Lease,
unless the context clearly indicates otherwise.
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ARTICLE II
REPRESENTATIONS, COVENANTS AND WARRANTIES
The County and the Board of Education each represent, covenant and warrant for the
other’s benefit as follows:
(1) 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, results 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.
(2) 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 such 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 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 III
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.
Notwithstanding anything in this Lease to the contrary, the Board of Education’s rights to
possession of the Leased Property, its rights to purchase the Leased Property pursuant to
Section 5.2, and all of its other rights under this Lease are subordinate to the rights of the Bank,
the beneficiary under the Deed of Trust and Security Agreement, dated May 10, 2018, from the
County to BB&T Collateral Service Corporation, Trustee, and its successors and assigns, relating
to the Leased Property (the “Deed of Trust”). Any judicial sale of, or foreclosure on, the Leased
Property pursuant to the Deed of Trust shall terminate all the Board of Education’s rights hereunder
with respect to the Leased Property.
ARTICLE IV
LEASE TERM
4.1 Commencement. The Lease Term shall commence on the Closing Date.
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4.2 Termination. The Lease Term shall terminate upon the earlier of either of the
following events:
(a) the termination of the Installment Financing Contract; or
(b) an Event of Default and termination by the County pursuant to Article XII.
Termination of the Lease Term shall terminate the County’s obligations under this Lease
and the Board of Education’s rights of possession under this Lease, but all other provisions of this
Lease, including those relating to the receipt and disbursement of funds, shall be continuing until
the Installment Financing Contract is discharged as provided therein.
ARTICLE V
QUIET ENJOYMENT; PURCHASE OPTION
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 its 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 legal 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.
The provisions of this Article shall be subject to rights to inspect the Leased Property
granted to parties under the Installment Financing Contract and to the right hereby reserved to the
County to inspect the Leased Property at any reasonable time.
Notwithstanding the foregoing, nothing contained in this Lease, the Administrative
Agreement, the Deed of Trust or any other arrangements entered into between the County and the
Board of Education in connection with the financing of the School Project shall be construed to
grant to the County any jurisdiction or supervision over the operation and use of the public school
system for the County and its facilities that would not exist in the absence of these transactions.
The County and the Board of Education hereby acknowledge and agree that the transactions
contemplated by the Lease, the Administrative Agreement, the Deed of Trust or any other
arrangements entered into between the County and the Board of Education are entered to facilitate
the financing by the County of a portion of the Cost of the Project. The County shall have no
rights over the public school system or its facilities on account of this Lease and the other
transactions contemplated hereby except as shall be necessary for the County to carry out its
obligations under the financing arrangements.
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5.2 Purchase Option.
(a) The Board of Education shall have the option (a) to purchase the Leased Property,
in part, from time to time, to the extent that it constitutes Premises released from the lien and
security interest of the Deed of Trust pursuant to Section 3.9 of the Deed of Trust, upon payment
to the County of a purchase option price of $100 and (b) to purchase the remainder or all of the
Leased Property at the end of the Lease Term upon payment by the County of all of the Installment
Payments and upon payment to the County of a purchase option price of $100. The County shall
promptly notify the Board of Education of the end of the Lease Term. The Board of Education
shall notify the County of its exercising of this option within ninety (90) days after any such partial
release of the Premises or after the end of the Lease Term, as may be applicable, and within forty-
five (45) days thereafter the County shall execute and deliver to the Board of Education a quit-
claim deed with a covenant against grantor’s acts, if applicable, 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.
(b) Upon request of the Board of Education, the County shall request the Bank to
release the Leased Property, or any part thereof, to the extent that it constitutes Premises, as
provided in Section 3.9 in the Deed of Trust. Any such request by the Board of Education shall
include a resolution duly adopted by the Board of Education stating the purpose for which such
release of the Leased Property is sought and giving an adequate legal description of the part of the
Leased Property to be released. The County shall use its best efforts to submit such a request to
the Bank within sixty (60) days of receiving such a request from the Board of Education.
ARTICLE VI
CONSIDERATION FOR LEASE
6.1 Use as Schools; 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
school purposes in fulfillment of its obligation, shared by the County, to provide for elementary
and secondary 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.
6.2 Payments. 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 pay to the County annual rent in the amount of $1 payable in advance
on the Closing Date (receipt of which is hereby acknowledged) and on the first day of each Lease
Year thereafter. The County and the Board of Education acknowledge their understanding that,
although the County’s financing of a portion of the cost of the Leased Property and providing of
the Leased Property to the Board of Education for its use, is of substantial value to the Board of
Education, any payment by the Board of Education of a market value rent would represent simply
an accounting transaction, because the Board of Education’s funding for such purpose would be
primarily provided through the County.
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ARTICLE VII
ACQUISITION, CONSTRUCTION AND INSTALLATION OF SCHOOL PROJECT
AND ADDITIONAL IMPROVEMENTS
7.1 Acquisition, Construction and Installation of School Project. The County has
provided in the Administrative Agreement for the acquisition, construction and installation of the
School Project by the Board of Education. The Board of Education represents that it has reviewed
all provisions concerning the acquisition, construction and installation of the School Project in the
Installment Financing Contract and hereby approves such provisions.
Title to the Leased Property shall be held by the County, subject only to Permitted
Encumbrances.
7.2 Additional Improvements. The Board of Education may at any time and from time
to time, in its sole discretion and at its own expense, acquire, construct and install real property
improvements and items of equipment or other personal property other than the School Project in
or upon any portion of the Leased Property that do not materially impair the effective use or
materially decrease the value of the Leased Property. The Board of Education shall repair and
restore any and all damage resulting from the acquisition, construction and installation of any such
improvements or property.
ARTICLE VIII
BOARD OF EDUCATION’S ASSUMPTION OF COUNTY’S OBLIGATIONS
8.1 Assumption of Obligations. The Board of Education hereby assumes all the
County’s obligations under the Installment Financing Contract regarding care, use and operation
of the Leased Property, payment of taxes, utilities and other governmental charges, maintenance
of insurance coverage, prevention of liens, and repair or replacement of the Leased Property. It is
expressly understood that the Board of Education shall not assume the County’s obligation under
the Installment Financing Contract to pay the Installment Payments and that the Board of
Education shall not indemnify the County or any other party to the Installment Financing Contract
for third-party claims asserted against any party to the Installment Financing Contract relating to
the payment of the Installment Payments or indemnify the County for losses arising from any
action of the County.
8.2 Transfer of Rights. In order to allow the Board of Education to carry out the
County’s obligations under the Installment Financing Contract to be assumed by the Board of
Education, the County hereby transfers its rights under the Installment Financing Contract
regarding such obligations to the Board of Education. Nothing in this Section, however, shall be
construed as in any way delegating to the Board of Education any of the County’s rights or
responsibilities to make decisions regarding the Board of Education’s capital and operating
budgets or otherwise covenanting that funds for such purposes will be appropriated or available.
8.3 Board of Education’s General Covenant. The Board of Education 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 Installment Financing Contract. If the Board of
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Education shall take or omit 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.
8.4 County’s Cooperation. The County shall cooperate fully with the Board of
Education in filing any proof of loss or taking any other action under this Lease. Except as
hereinafter provided, neither the County nor the Board of Education shall voluntarily settle, 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. If the amount expected to be received
pursuant to any such settlement does not exceed $50,000, then the Board of Education may,
without the consent of the County, voluntarily settle, or consent to the settlement of, any
proceeding arising out of any related insurance claim, provided that the Board of Education
promptly notifies the County of such settlement after it has been reached.
8.5 Advances; Performance of Obligations. If the Board of Education shall fail to pay
any amount required to be paid by it under this Lease, or fails to take any other action required of
it under this Lease, then the County may (but shall be 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 obligation.
ARTICLE IX
DISCLAIMER OF WARRANTIES; OTHER COVENANTS
9.1 Disclaimer of Warranties. THE COUNTY MAKES NO WARRANTY OR
REPRESENTATION, EITHER EXPRESS OR IMPLIED, AS TO THE VALUE, DESIGN,
CONDITION, MERCHANTABILITY OR FITNESS FOR A PARTICULAR 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 LEASED PROPERTY OR ANY PART THEREOF. In no event shall the County be 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.
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.
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 shall 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 shall be authorized to act on any such
approval or request of such representative of the other.
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
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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
10.1 Title to Leased Property. 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 foreclosed upon as provided in the
Deed of Trust or conveyed as provided in this Lease, notwithstanding (a) the occurrence of all or
more events of default as defined in Section 13.1 of the Installment Financing 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 shall have no right, title or interest in the Leased Property or any
additions 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
11.1 Board of Education’s Subleasing. The Board of Education may not assign or
sublease the Leased Property, in whole or in part, except as provided in Section 6.11 of the
Installment Financing Contract.
11.2 Indemnification. Except as provided in Section 8.1, to the extent permitted by law,
the Board of Education shall and hereby 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 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
acquisition, construction and installation of the School Project in excess of the moneys available
therefor in the Project 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 circumstances
described in (a), (b) or (c) above.
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ARTICLE XII
EVENTS OF DEFAULT
12.1 Events of Default. Each of the following shall be an “Event of Default” under this
Lease and the term “Default” shall mean, 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 thirty (30) days after written
notice specifying such failure and requesting that it be remedied shall have been given to the Board
of Education by the County or by the Bank, unless the County and the Bank shall agree in writing
to an extension of such time prior to its expiration; provided, however, that if the failure stated in
such notice cannot be corrected within the applicable period, neither the County nor the Bank shall
unreasonably withhold its consent to an extension of such time if corrective action is instituted by
the Board of Education within the applicable period and diligently pursued until such failure is
corrected and, further, that if by reason of any event or occurrence constituting force majeure the
Board of Education is unable in whole or in part to carry out any of its agreements contained herein
(other than its obligations contained in Section 6.2 or 8.1), the Board of Education shall not be
deemed in default during the continuance of such event or occurrence.
(c) The dissolution or liquidation of the Board of Education 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 relief,
or the initiation against the Board of Education of any such proceeding which shall remain
undismissed for sixty (60) days, or the entry by the Board of Education into an agreement of
composition with creditors or the Board of Education’s failure generally to pay its debts as they
become due.
12.2 Remedies on Default. Whenever any Event of Default shall have happened and be
continuing, the County may take one or any combination of the following remedial 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 Education’s regular business
hours, if reasonably necessary in the County’s opinion.
(c) Take whatever action at law 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 in
accordance with the Installment Financing Contract.
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12.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the County
is intended to be exclusive, and every such remedy shall be cumulative and shall be in addition to
every other remedy given hereunder and every remedy now or hereafter existing at law or in equity.
No delay or omission to exercise any right or power accruing upon any default shall impair any
such right or power, and any such right and power may be exercised from time to time as may be
deemed expedient. In order to entitle the County to exercise any remedy reserved in this Article
XII, it shall not be necessary to give any notice, other than such notice as may be required in this
Article XII.
12.4 Waivers. If any agreement contained herein should be breached by either party and
thereafter waived by the other party, such waiver shall be limited to the particular breach so waived
and shall not be deemed to waive any other breach hereunder. The County, however, shall have
no right to waive any Event of Default without the Bank’s consent. A waiver of an event of default
under the Installment Financing Contract shall constitute a waiver of any corresponding Event of
Default under this Lease; provided that no such waiver shall extend to or affect any subsequent or
other Event of Default under this Lease or impair any right consequent thereon.
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 the case of a
termination of the Lease Term by reason of an Event of Default, neither the Board of Education
nor the County nor anyone 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 the Installment Financing
Contract or of any remedy provided hereunder or thereunder; 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 such laws.
ARTICLE XIII
MISCELLANEOUS
13.1 Notices. All notices, certificates or other communications hereunder (a) must be in
writing (not including facsimile transmission or electronic mail) and (b) shall be deemed to have
been properly given when personally delivered or delivered on the date shown on a United States
Mail certified mail receipt or a delivery receipt (or similar evidence) from a national commercial
package delivery service and addressed to the addressees as follows:
(a) If intended for the County, addressed to it at the following address:
County of Person, North Carolina
304 South Morgan Street, Room 219
Roxboro, North Carolina 27573-5245
Attention: Finance Director
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with a copy to:
County of Person, North Carolina
304 South Morgan Street, Room 212
Roxboro, North Carolina 27573-5245
Attention: County Manager
(b) If intended for the Board of Education, addressed to it at the following address:
The Person County Board of Education
304 South Morgan Street, Room 25
Roxboro, North Carolina 27573-5245
Attention: Superintendent
Copies of any notices, certificates or other communications to the County or the Board of
Education are to be sent also to:
Branch Banking and Trust Company
5130 Parkway Plaza Boulevard
Charlotte, North Carolina 28217
Attention: Governmental Finance
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, certificate or other
communication sent. By giving at least thirty (30) days written notice thereof, the County and the
Board of Education shall have the right from time to time and at any time during the term of this
Lease 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.
13.2 Binding Effect. This Lease shall be binding upon and inure to the benefit of the
Board of Education and the County, subject however to the limitations contained in Article XI.
13.3 Net Lease. This Lease shall be deemed and construed to be 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.
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, shall not be 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.
13.5 Severability. In the event that any provision of this Lease, other than the
requirement of the County to provide quiet enjoyment of the Leased Property, shall be held invalid
or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
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13.6 Execution in Counterparts. This Lease may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the
same instrument.
13.7 Applicable Law. This Lease shall be governed by and construed in accordance with
the laws of the State.
13.8 Captions. The captions or headings herein are for convenience only and in no way
define, limit or describe the scope or limit of any provisions or sections of this Lease.
13.9 Memorandum of Lease. At the request of either party, the County and the Board
of Education shall, on or before the Closing Date, execute a memorandum of this Lease legally
sufficient to comply with the laws of the State.
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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.
PERSON COUNTY, NORTH CAROLINA
By: ____________________________________
Tracey L. Kendrick
Chairman of the Board of Commissioners
for the County
[SEAL]
Attest:
_____________________________
Brenda B. Reaves
Clerk to the Board of Commissioners
for the County
This instrument has been pre-audited in the manner required by The Local Government
Budget and Fiscal Control Act.
Amy Wehrenberg
Finance Director of the County
[Signatures Continued on Following Page.]
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[Counterpart Signature Page to the Lease dated May 10, 2018
between the Person County Board of Education and
the County of Person, North Carolina]
THE PERSON COUNTY BOARD OF
EDUCATION
By: ____________________________________
Dr. Kay Allen
Chair Person of the Board of Education
[SEAL]
Attest
_____________________________
Dr. Rodney Peterson
Secretary of the Board of Education
This instrument has been pre-audited in the manner required by The School Budget and
Fiscal Control Act.
Julie H. Masten
Finance Officer of the Board of Education
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STATE OF NORTH CAROLINA )
)
COUNTY OF PERSON )
I, a Notary Public of the County and State aforesaid, certify that Brenda B. Reaves
personally came before me this day and acknowledged that she is the Clerk to the Board of
Commissioners for the County of Person, 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 said
Board of Commissioners and attested by her as the Clerk to said Board of Commissioners.
Witness my hand and official stamp or seal, this the ____ day of May 2018.
__________________________________________
NOTARY PUBLIC
My Commission Expires:
STATE OF NORTH CAROLINA )
)
COUNTY OF PERSON )
I, a Notary Public of the County and State aforesaid, certify that Dr. Rodney Peterson
personally came before me this day and acknowledged that he is the Secretary of The Person
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 Person of said Board of
Education and attested by him as the Secretary of said Board of Education.
Witness my hand and official stamp or seal, this the ____ day of May 2018.
__________________________________________
NOTARY PUBLIC
My Commission Expires:
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A-1
EXHIBIT A
DESCRIPTION OF THE LEASED PROPERTY
The Leased Property consists of a tract or parcel of land described as follows:
Being that tract of land lying in Roxboro Township, Person County, North Carolina,
bounded on the North by the lands of Piedmont Technical Institute; on the East by the lands
of Collins & Aikman Corporation, the lands of William Cozart and W. Ruffin Woody, Jr.;
bounded on the South by the center line of a Carolina Power & Light Company power line
easement and bounded on the West by Rosemary Creek, containing 40 acres, more or less
and more particularly described as follows: BEGINNING at an iron pin lying in the center
line of Rosemary Creek and marking the southwestern corner of the lands of Piedmont
Technical Institute; thence along and with the southern line of the lands of said Institute
South 89° 52’ 18” East 2,223.62 feet to a concrete monument; thence along and with the
western line of the lands of Collins & Aikman Corporation South 1° 17’ 53” West 146.91
feet to a concrete monument; thence along and with the western line of the lands of William
Cozart South 1° 7’ 15” West 767.22 feet to an iron pin; thence along and with the western
line of the lands of W. Ruffin Woody, Jr. South 1° 8’ 52” West 207.78 feet to an iron pin
lying in the center line of the Carolina Power & Light Company power line easement;
thence along and with the center line of said power line easement North 73° 24’ 57” West
2,437.35 feet to an iron pin lying in the center line of Rosemary Creek; thence along and
with the center line of said creek as it meanders the following courses and distances: North
41° 35’ 33” East 131.32 feet to an iron pin; thence North 11° 16’ 21” East 243.09 feet to
an iron pin; thence North 0° 5’ 36” East 94.36 feet to that iron pin marking the southwestern
corner of the lands of Piedmont Technical Institute and being the point and place of
beginning and being all of the lands lying to the North of the center line of the Carolina
Power & Light Company power line easement as shown on that plat of survey made by
Phillip J. Hall, Surveyor, dated November, 1974, entitled “Property of Frank Howard
Estate” and recorded in Plat Book 20, at page 90, Person County Registry; said plat being
hereby specifically incorporated by reference.
All the above-described lands lying within the 70-foot wide power line right of way shown
on the above-described plat of survey are subject to an easement in favor of Carolina Power
& Light Company.
The above described property is currently operated as Northern Middle School.
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B-1
EXHIBIT B
Copy of Installment Financing Contract attached.
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INSTALLMENT FINANCING CONTRACT
BETWEEN
BRANCH BANKING AND TRUST COMPANY
AND
COUNTY OF PERSON, NORTH CAROLINA
DATED MAY 10, 2018
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INSTALLMENT FINANCING CONTRACT
TABLE OF CONTENTS
Page
-i-
ARTICLE I
DEFINITIONS
Section 1.1 Definitions..............................................................................................2
ARTICLE II
AMOUNT ADVANCED
Section 2.1 Advance of Amount Advanced ..............................................................6
ARTICLE III
INSTALLMENT PAYMENTS; ADDITIONAL PAYMENTS
Section 3.1 Amounts and Times of Installment Payments and Additional
Payments ................................................................................................7
Section 3.2 Late Payments ........................................................................................7
Section 3.3 Interest Rate and Payment Adjustment ..................................................7
Section 3.4 Place of Payments ..................................................................................8
Section 3.5 No Abatement ........................................................................................8
Section 3.6 Prepayment of Amount Advanced .........................................................8
ARTICLE IV
PROJECT FUND
Section 4.1 Project Fund ...........................................................................................8
Section 4.2 Termination ............................................................................................8
Section 4.3 Reliance of Bank on Documents ............................................................8
Section 4.4 Indemnification of Bank ........................................................................9
Section 4.5 Fees ........................................................................................................9
ARTICLE V
ACQUISITION, CONSTRUCTION AND INSTALLATION OF THE PROJECT
Section 5.1 Acquisition, Construction and Installation of the Project ......................9
Section 5.2 Right of Entry and Inspection ..............................................................10
Section 5.3 Completion of the Project ....................................................................10
Section 5.4 Payment and Performance Bonds ........................................................10
Section 5.5 Contractor’s General Public Liability and Property Damage
Insurance ..............................................................................................10
Section 5.6 Contractor’s Builder’s Risk Insurance .................................................11
Section 5.7 Contractor’s Worker’s Compensation Insurance .................................11
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Section 5.8 Filing With the Bank ............................................................................11
ARTICLE VI
RESPONSIBILITIES OF THE COUNTY
Section 6.1 Care and Use ........................................................................................12
Section 6.2 Inspection .............................................................................................13
Section 6.3 Utilities .................................................................................................13
Section 6.4 Taxes ....................................................................................................13
Section 6.5 Title Insurance .....................................................................................13
Section 6.6 Insurance ..............................................................................................13
Section 6.7 Rating and Insurance............................................................................15
Section 6.8 Risk of Loss .........................................................................................15
Section 6.9 Performance by the Bank of the County’s Responsibilities ................15
Section 6.10 Financial Statements ............................................................................15
Section 6.11 Leasing by County or Board of Education ..........................................15
ARTICLE VII
TITLE; LIENS; PERSONAL PROPERTY
Section 7.1 Title ......................................................................................................16
Section 7.2 Liens .....................................................................................................16
Section 7.3 Personal Property .................................................................................16
ARTICLE VIII
DAMAGE, DESTRUCTION AND CONDEMNATION; USE OF NET PROCEEDS
Section 8.1 Damage, Destruction or Condemnation ...............................................17
Section 8.2 Use of Net Proceeds to Repair or Replace the Mortgaged Property ....17
Section 8.3 Cooperation of Bank ............................................................................18
ARTICLE IX
REPRESENTATIONS OF THE COUNTY AND BANK
Section 9.1 Representations, Covenants and Warranties of the County .................18
Section 9.2 Representations, Covenants and Warranties of the Bank ....................19
ARTICLE X
TAX COVENANTS
Section 10.1 Tax Covenants .....................................................................................20
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ARTICLE XI
INDEMNIFICATION
Section 11.1 Indemnification ....................................................................................21
ARTICLE XII
DISCLAIMER OF WARRANTIES
Section 12.1 No Representations by the Bank ..........................................................21
Section 12.2 Disclaimer by the Bank ........................................................................21
ARTICLE XIII
DEFAULT AND REMEDIES
Section 13.1 Definition of Event of Default .............................................................22
Section 13.2 Remedies on Default ............................................................................23
Section 13.3 Further Remedies .................................................................................23
Section 13.4 Right of Board of Education ................................................................24
ARTICLE XIV
ASSIGNMENT
Section 14.1 Assignment by the County ...................................................................24
Section 14.2 Assignment by the Bank ......................................................................24
ARTICLE XV
LIMITED OBLIGATION OF THE COUNTY
Section 15.1 Limited Obligation of the County ........................................................25
ARTICLE XVI
MISCELLANEOUS
Section 16.1 Waiver ..................................................................................................25
Section 16.2 Severability ..........................................................................................26
Section 16.3 Governing Law ....................................................................................26
Section 16.4 Notices .................................................................................................26
Section 16.5 Section Headings .................................................................................26
Section 16.6 Entire Contract .....................................................................................27
Section 16.7 Binding Effect ......................................................................................27
Section 16.8 Time .....................................................................................................27
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Section 16.9 If Payment or Performance Date Not a Business Day .........................27
Section 16.10 Covenants of County not Covenants of Officials Individually ............27
Section 16.11 Execution in Counterparts ....................................................................27
Section 16.12 Proposal Letter .....................................................................................27
Payment Schedule ..........................................................................................................................33
Exhibit A - Description of the Project ............................................................................... A-1
Exhibit B - Description of the Real Property .....................................................................B-1
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This instrument has been pre-audited
in the manner required by
The Local Government Budget and
Fiscal Control Act.
____________________________
Amy Wehrenberg
Finance Director
INSTALLMENT FINANCING CONTRACT
This INSTALLMENT FINANCING CONTRACT, dated May 10, 2018 (this
“Contract”), is between BRANCH BANKING AND TRUST COMPANY a North Carolina
state-chartered bank (the “Bank”), and the COUNTY OF PERSON, NORTH CAROLINA, a
body corporate and politic and a political subdivision of the State of North Carolina (the “County”),
under the Constitution and laws of the State of North Carolina (the “State”).
PREAMBLE
WHEREAS, the County has the power, pursuant to Section 160A-20 of the General
Statutes of North Carolina, as amended, to (i) finance the purchase of real and personal property
by installment contracts that create in the property purchased a security interest to secure payment
of the purchase price to the entity advancing moneys for such transaction and (ii) finance the
construction of fixtures or improvements on real property by contracts that create in such fixtures
or improvements and in the real property on which such fixtures or improvements are located a
security interest to secure repayment of moneys advanced or made available for such construction;
WHEREAS, the County and The Person County Board of Education, a body corporate
which has general control and supervision of all matters pertaining to the non-charter public
schools in the Person County Schools, its respective school administrative unit (the “Board of
Education”), have determined to cooperate in a plan to finance a portion of the cost of a project
which each has found to be necessary and desirable to provide for improved public school facilities
and improved public education in such school administrative unit;
WHEREAS, such project consists of (a) replacing the fire alarm system and three rooftop
heating, ventilating and air conditioning units at Northern Middle School, (b) replacing the roof at
Early Intervention & Family Services, (c) replacing the cooling towers at Helena Elementary
School and Stories Creek Elementary School and (d) replacing heating and cooling unit valves at
South Elementary School, as more particularly described in Exhibit A hereto (collectively, the
“School Project”);
WHEREAS, the County has also determined to finance a portion of the cost of a project
consisting of (a) acquiring, constructing and installing two communication towers and related
facilities and equipment that are a part of a project to improve the public safety communication
system serving the residents of the County and (b) installing a heating, ventilating and air
conditioning system at the Huck Sansbury Gym, as more particularly described in Exhibit A hereto
(collectively, the “County Project” and, together with the School Project, the “Project”);
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WHEREAS, as a part of such plan, the County and the Board of Education have entered
into an Administrative Agreement (as hereinafter defined) and a Lease (as hereinafter defined)
pursuant to which the Board of Education has conveyed to the County and the County has leased
to the Board of Education the site of Northern Middle School together with the improvements
thereon;
WHEREAS, in order to finance a portion of the cost of the Project the Board of
Commissioners for the County (the “Board of Commissioners”) has determined that it is in the
best interests of the County to enter into this Contract with the Bank under which the Bank will
advance funds for such purpose and the County will make Installment Payments and Additional
Payments (as each such term is hereinafter defined) in consideration thereof;
WHEREAS, the Bank desires to advance funds pursuant to this Contract to enable the
County to finance a portion of the cost of the Project;
WHEREAS, the obligation of the County to make Installment Payments and Additional
Payments under this Contract shall constitute a limited obligation of the County, payable solely
from then currently budgeted appropriations of the County, 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 secure the obligations of the County under this Contract, the
County has entered into a Deed of Trust (as hereinafter defined) with the deed of trust trustee
named therein for the benefit of the Bank creating a lien on all of the right, title and interest of the
County in and to the Mortgaged Property (as hereinafter defined);
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, indirectly or contingently to secure any moneys
due under this Contract;
WHEREAS, the execution, delivery and performance of this Contract have been
authorized, approved and directed by the Board of Commissioners by a resolution passed by the
Board of Commissioners on April 23, 2018; and
WHEREAS, the execution, delivery and performance of this Contract by the Bank have
been authorized, approved and directed by all necessary and appropriate action of the Bank;
NOW, THEREFORE, for and in consideration of the premises and the mutual covenants
in this Contract contained, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS
Section 1.1 Definitions. The following terms have the meanings specified below unless
the context clearly requires otherwise:
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“Additional Payments” means the reasonable and customary expenses and fees of the Bank
related to the transactions contemplated by this Contract, any expenses (including attorneys’ fees)
of the Bank in prosecuting or defending any action or proceeding in connection with this Contract
and any taxes or any other expenses, including, but not limited to, license and permit fees, state
and local income, sales and use or ownership taxes, property taxes and other expenses in
connection with the maintenance of the Mortgaged Property that the Bank 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).
“Administrative Agreement” means the Agreement Concerning Various School
Improvements, dated May 10, 2018, between the County and the Board of Education.
“Amount Advanced” means the aggregate principal amount of $4,400,000 advanced by the
Bank on the date hereof to enable the County to finance a portion of the Cost of the Project.
“Bank” means Branch Banking and Trust Company or its successors and assigns.
“Bank Representative” means any vice president of the Bank or such other person or
persons at the time designated to act on behalf of the Bank for purposes of performing any act on
behalf of the Bank under this Contract by a written certificate furnished to the County and the
Board of Education containing the specimen signatures of such person or persons and signed on
behalf of the Bank by any vice president.
“Board of Commissioners” means the duly elected governing Board of Commissioners for
the County or any successor to its functions.
“Board of Education” means The Person County Board of Education or any successor to
its functions.
“Business Day” means a day on which banks in the State are not by law required or
authorized to remain closed.
“Closing Date” means the date on which this Contract is executed and delivered in
consideration of the deposit of the Amount Advanced into the Project Fund as provided herein.
“Code” means the Internal Revenue Code of 1986, as amended, including any temporary,
proposed or final Treasury Regulations promulgated thereunder.
“Completion Date” means the date on which completion of the acquisition, construction
and installation of the Project occurs, as evidenced by the certificate provided for in Section 2.3(a)
of the Project Fund Agreement.
“Construction Contracts” means the contracts between the County or the Board of
Education and the contractors selected and hired by the County or the Board of Education relating
to the acquisition, construction and installation of the Project.
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“Cost of the Project” shall be deemed to include payment of or reimbursement for the costs
within the meaning of the term “Project Costs” as such term is defined in the Project Fund
Agreement.
“County” means the County of Person, North Carolina or any successor to its functions.
“County Project” means, collectively, (a) acquiring, constructing and installing two
communication towers and related facilities and equipment that are a part of a project to improve
the public safety communication system serving the residents of the County and (b) installing a
heating, ventilating and air conditioning system at the Huck Sansbury Gym, as more particularly
described in Exhibit A hereto.
“County Representative” means (i) the Chairman of the Board of Commissioners, Clerk to
the Board of Commissioners, County Manager of the County, Finance Director of the County 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 Bank and the
Board of Education containing the specimen signatures of such person or persons and signed on
behalf of the County by the County Manager of the County, or (ii) 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 and Security Agreement, made May 10, 2018,
from the County to BB&T Collateral Service Corporation, as trustee, for the benefit of the Bank,
as beneficiary.
“Deed of Trust Trustee” means BB&T Collateral Service Corporation, as trustee named in
the Deed of Trust, and any successor trustee thereto.
“Engineer” means any engineer, engineering consultant or architect, or firm thereof, hired
by or employed by the County or the Board of Education, licensed in the State and experienced in
the work for which retained.
“Event of Default” means one or more events of default as defined in Section 13.1.
“Installment Payment Dates” means the dates on which Installment Payments are due and
payable as set forth in the Payment Schedule attached hereto.
“Installment Payments” means those payments to be made by the County to the Bank as
described in Article III and in the Payment Schedule attached hereto.
“Interest Rate” means 3.51% per annum calculated on the basis of a 360-day year of twelve
30-day months, subject to adjustment as provided in Section 3.3.
“Lease” means the Lease, dated May 10, 2018, between the County, as lessor, and the
Board of Education, as lessee, pursuant to which the County has leased to the Board of Education
the site of Northern Middle School together with the improvements thereon.
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“Mortgaged Property” means the Real Property and all existing improvements located on
the Real Property as of the date hereof, the Northern Middle School Project to be acquired,
constructed and installed thereon, all other additions, alterations, enlargements, extensions,
improvements and fixtures made a part of the Real Property or the improvements thereon and all
appurtenances of any nature whatsoever, less all data processing or telecommunications
equipment, all mobile or modular classrooms, if any, all other property excluded from the lien or
security interest of the Bank under this Contract and all property released pursuant to this Contract
or the Deed of Trust.
“Net Proceeds,” when used with respect to any proceeds of insurance policies, payment
bonds, performance bonds, condemnation awards or moneys received as a consequence of default
under a construction contract or otherwise made available by reason of any occurrence described
in Section 5.4 or 8.1, means 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.
“Northern Middle School Project” means the portion of the School Project consisting of
replacing the fire alarm system and three rooftop heating, ventilating and air conditioning units at
Northern Middle School.
“Payment Schedule” means the document entitled “Payment Schedule” attached hereto and
incorporated herein by reference which sets forth the Installment Payments to be made by the
County hereunder, as the same may be revised from time to time in accordance with this Contract.
“Permitted Encumbrances” means
(1) easements, exceptions or reservations (i) for the purpose of pipelines,
telephone lines, cable television lines, telegraph lines, power lines and substations, roads,
streets, alleys, highways, parking, railroad purposes, drainage and sewerage purposes,
dikes, canals, laterals, ditches, transportation of oil, gas or other materials, removal of oil,
gas or other materials, and other like purposes, or (ii) for the joint or common use of real
property, facilities and equipment, which exist on the Closing Date or arise under the
provisions of Section 3.9 of the Deed of Trust and which, in the case of either (i) or (ii), in
the aggregate do not materially interfere with or impair the operation of the Mortgaged
Property for the purposes for which it is or may reasonably be expected to be used;
(2) the rights of the Bank under this Contract;
(3) the lien of the Deed of Trust and any other liens and encumbrances listed in
Exhibit B thereto;
(4) the Lease and any sublease by the Board of Education in conformity with
the provisions of Section 6.11, all of which are expressly subordinate to the lien of the
Deed of Trust;
(5) any materialmen’s liens incurred in the ordinary course of business and not
remaining undischarged for more than sixty (60) days from the date thereof; and
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(6) any other liens, encumbrances, charges and restrictions on the Real Property
described in _______________________________, or approved in writing by the Bank.
“Plans and Specifications” means the plans and specifications prepared by one or more
Engineers hired or employed by the County or the Board of Education relating to the acquisition,
construction and installation of the Project.
“Prime Rate” means the interest rate so denominated and set by the Bank (whether or not
the Bank, or any affiliate thereof, is at any time the beneficiary under this Contract) as its “Prime
Rate,” as in effect from time to time.
“Project” means, collectively, the County Project and the School Project.
“Project Fund” means the special account created under Section 4.1 for the purpose of
disbursing the Amount Advanced and interest earnings thereon and any other funds deposited
therein.
“Project Fund Agreement” means the Project Fund Agreement, dated May 10, 2018 and
entered into by the County and the Bank in connection with their entering into this Contract.
“Rate Adjustment Event” means any action by the Internal Revenue Service (including the
delivery of a deficiency notice) or any other federal court or administrative body determining that
the interest components of the Installment Payments, or any portion thereof, are includable in any
beneficiary’s gross income for federal income tax purposes as a result of any misrepresentation by
the County or as a result of any action the County takes or fails to take.
“Real Property” means the site of Northern Middle School, described in Exhibit B hereto
and incorporated herein by reference, as the same may be amended from time to time in accordance
with the provisions of the Deed of Trust.
“School Project” means, collectively, (a) replacing the fire alarm system and three rooftop
heating, ventilating and air conditioning units at Northern Middle School, (b) replacing the roof at
Early Intervention & Family Services, (c) replacing the cooling towers at Helena Elementary
School and Stories Creek Elementary School and (d) replacing heating and cooling unit valves at
South Elementary School, as more particularly described in Exhibit A hereto.
“State” means the State of North Carolina.
ARTICLE II
AMOUNT ADVANCED
Section 2.1 Advance of Amount Advanced. The Bank hereby makes an advance to the
County of the Amount Advanced, and the County hereby accepts from the Bank the Amount
Advanced to be applied in accordance with the terms and conditions of this Contract. The proceeds
of the Amount Advanced will be used to acquire, construct and install the Project as provided in
this Contract.
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ARTICLE III
INSTALLMENT PAYMENTS; ADDITIONAL PAYMENTS
Section 3.1 Amounts and Times of Installment Payments and Additional Payments.
(a) The County shall repay the Amount Advanced in installments, together with
interest thereon at the Interest Rate, as provided in this Contract and the Payment Schedule. Each
installment shall be deemed an Installment Payment and shall be paid in the amounts and at the
time set forth in the Payment Schedule, except as otherwise provided in this Contract or the Project
Fund Agreement. Each amount received by the Bank as an Installment Payment shall be deemed
to be applied first to the payment of the interest component and then to the payment of the principal
component of such Installment Payment.
(b) The County shall pay Additional Payments on a timely basis directly to each person
or entity to which any Additional Payments are owed.
Section 3.2 Late Payments. If the County fails to pay any Installment Payment by the
due date, then interest on the principal component of the unpaid Installment Payment shall continue
to accrue at the Interest Rate until it is paid and, if the County fails to pay any Additional Payment
or any Installment Payment more than five (5) business days after the due date, then, to the extent
permitted by law, the County shall pay additional interest on the unpaid amount at an annual rate
equal to the Prime Rate from the original due date until it is paid.
Section 3.3 Interest Rate and Payment Adjustment.
(a) Upon any Rate Adjustment Event, (i) the unpaid principal portion of the Amount
Advanced shall continue to be payable on dates and in amounts as set forth in the Payment
Schedule, but (ii) the interest components of the Installment Payments shall be recalculated, at an
interest rate equal to an annualized interest rate equal to the Prime Rate plus 2% (200 basis points),
from the date (retroactively, if need by) determined pursuant to the Rate Adjustment Event to be
the date interest became includable in any beneficiary’s gross income for federal income tax
purposes.
(b) The County represents that it has designated its obligation to pay Installment
Payments hereunder as being within the $10 million limitation described in Section 265(b)(3) of
the Code and that it will not take any action that would cause it to exceed such $10 million
limitation in the current calendar year. In the event that the County breaches this representation,
the interest components of the Installment Payments shall be recalculated to preserve the Bank’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 Bank as a direct or indirect result
of the County’s actions.
(c) The County shall pay interest at an adjusted rate pursuant to Section 3.3(a) or (b)
(subject to credit for interest previously paid) to each affected beneficiary, notwithstanding the fact
that any particular beneficiary may not be a beneficiary under this Contract on the date that such
adjusted rate takes effect. The County shall additionally pay to each affected beneficiary any
interest, penalties or other charges assessed against or payable by such beneficiary and attributable
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to an event resulting in such adjusted rate notwithstanding the prior repayment of the entire
Amount Advanced or any transfer to another beneficiary.
Section 3.4 Place of Payments. All payments required to be made to the Bank under
this Contract shall be made to the Bank by wire transfer as provided in the Payment Schedule in
immediately available funds or as may be otherwise directed in writing by the Bank.
Section 3.5 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 funds to the payment of the Installment Payments or
Additional Payments, any defense, recoupment, setoff, counterclaim or any claim (real or
imaginary) arising out of or related to the acquisition, construction and installation of the Project.
The County assumes and shall bear the entire risk of loss and damage to the Project from any cause
whatsoever, it being the intention of the parties hereto that the Installment Payments shall be made
in all events unless the obligation to make the Installment Payments is terminated as otherwise
provided in this Contract.
Section 3.6 Prepayment of Amount Advanced. The County shall have the option to
prepay or provide for the prepayment of the outstanding principal components of the Installment
Payments in whole but not in part on any date not earlier than November 3, 2025 at a prepayment
price equal to one hundred percent (100%) of such principal components, plus accrued interest
thereon to the date of such prepayment, upon not less than thirty (30) days prior written notice of
such prepayment to the Bank.
ARTICLE IV
PROJECT FUND
Section 4.1 Project Fund. The Bank has caused the Amount Advanced to be deposited
in the Project Fund, a special account hereby created and established with the Bank and designated
as the “2018 Person County Project Fund,” to be held in trust and applied by the Bank in
accordance with the provisions of the Project Fund Agreement. Until all amounts deposited to the
credit of the Project Fund are applied to pay a part of the Cost of the Project or otherwise as
provided in the Project Fund Agreement, such amounts are hereby pledged by the County to the
Bank as security for the performance by the County of its obligation to repay the Amount
Advanced when due and its other payment obligations hereunder.
Section 4.2 Termination. The Project Fund shall be terminated at the earliest of (a) the
final distribution of all moneys in the Project Fund, (b) the receipt by the County of written notice
of an Event of Default given by the Bank or (c) the termination of this Contract.
Section 4.3 Reliance of Bank on Documents. The Bank may act in reliance on any
writing or instrument or signature which it, in good faith, believes to be genuine and may assume
the validity and accuracy of any statement or assertion contained in such a writing or instrument.
The Bank is not liable in any manner for the sufficiency or correctness as to form, manner and
execution, or validity of any instrument nor as to the identity, authority, or right of any person
executing the same; and its duties under this Article are limited to the receipt of such moneys,
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instruments or other documents received by it as the Bank and the deposit or investment and
disposition of the same in accordance herewith.
Section 4.4 Indemnification of Bank. Unless the Bank is guilty of negligence with
regard to its duties under this Article, the County agrees to indemnify the Bank and hold it harmless
as provided in Section 11.1. In connection therewith, the Bank shall be entitled to hold all moneys
deposited with it under this Contract, except for moneys expressly set aside to pay the Installment
Payments, for indemnification for reasonable attorneys’ fees, court costs, any suit, interpleader or
otherwise, or any other expenses, fees or charges of any character or nature, including but not
limited to those which may be incurred by the Bank by reason of disputes arising between the
County and the Bank as to the correct interpretation of this Contract and instructions given to the
Bank under this Contract, or otherwise, until and unless such fees, costs, expenses or charges are
fully paid.
Section 4.5 Fees. The County will pay to the Bank or as directed by the Bank a fee of
$5,900, which includes the expenses incurred by the Bank in connection with the advance of the
Amount Advanced under this Contract, the fees of its counsel and any other expenses of the Bank
except as hereinafter provided.
ARTICLE V
ACQUISITION, CONSTRUCTION AND INSTALLATION OF THE PROJECT
Section 5.1 Acquisition, Construction and Installation of the Project. The County shall
comply or cause the Board of Education to comply with the provisions of Article 8 of Chapter 143
of the General Statutes of North Carolina, as amended, and enter into or cause the Board of
Education to enter into the Construction Contracts relating to the Project. The County shall cause
the acquisition, construction and installation of the Project to be carried on expeditiously in
accordance with the Plans and Specifications, all applicable statutes and ordinances and all other
applicable requirements of all regularly constituted authorities having jurisdiction over the same.
The County shall insure that the Project will not violate any applicable use or other restrictions
contained in prior conveyances or applicable protective covenants or restrictions. The County
shall promptly cause to be corrected any defect in the Project or any departure from the Plans and
Specifications, unless it obtains the approval of the Bank otherwise, which approval shall not be
unreasonably denied.
The County may make, or cause to be made, such changes in the Project as it deems
necessary or appropriate to cause the Project to be completed for a cost within the funds available
therefor; provided, however, that no change may be made in the Project which would result in its
use for purposes other than governmental facilities or public school facilities. In addition, no
change may be made unless the related costs are capital costs under applicable federal income tax
principles and, if a change would be material as to the scope of the Project, (i) the County has first
notified the Local Government Commission of North Carolina and the Bank of such change, (ii) in
the opinion of the County Manager or his designee, such change will not have an adverse effect
on the appraised value of the Mortgaged Property and (iii) in the opinion of nationally recognized
bond counsel, it is permissible to make such change. Furthermore, if a change would increase the
cost of the Project by more than $100,000, then the County must inform the Bank of the source of
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the funds that are to be used to pay for such change before it may make such change or cause it to
be made. In the event of a change in the Project which would render materially inaccurate the
description in Exhibit A attached hereto, the County shall provide, or cause to be provided, to the
Bank a revised Exhibit A for attachment hereto which reflects accurately the Project as changed.
Section 5.2 Right of Entry and Inspection. The Bank and its representatives and agents
shall have the right to enter on and inspect the real property upon which the Project is to be located
and the improvements thereto and thereon from time to time, during the acquisition, construction
or installation of the Project, to the extent that the County or the Board of Education has such right,
and the County shall cause any contractor or subcontractor to cooperate with the Bank and its
representatives and agents during such inspections. No right of inspection or approval contained
in this Contract imposes on the Bank any duty or obligation whatsoever to undertake any
inspection or to give any approval, except as provided in Section 5.1.
Section 5.3 Completion of the Project. The County shall use its best efforts to cause the
acquisition, construction and installation of the Project to be completed within two years,
unforeseeable delays beyond the reasonable control of the County or the Board of Education only
excepted.
Section 5.4 Payment and Performance Bonds. Each contractor entering into a
Construction Contract relating to the Northern Middle School Project shall be required to furnish
a performance bond and a separate labor and material payment bond as required by North Carolina
General Statutes, Article 3, Chapter 44A, each of which shall name the Bank as an obligee in
addition to the County or the Board of Education and copies of which shall be provided to the
Bank.
In the event of any material default by a contractor under any Construction Contract
relating to the Northern Middle School Project, or in the event of a material breach of warranty
with respect to any materials, workmanship or performance, the County shall promptly proceed,
or cause the Board of Education to proceed promptly, either separately or in conjunction with
others, to pursue diligently its remedies against such contractor and/or against each surety of any
bond securing the performance of such Construction Contract. The Net Proceeds of any amounts
recovered by way of damages, refunds, adjustments or otherwise in connection with the foregoing,
after reimbursement to the County or the Board of Education of any amounts theretofore paid by
the County or the Board of Education and not previously reimbursed to the County or the Board
of Education for correcting or remedying the default or breach of warranty which gave rise to the
proceedings against such contractor or surety, shall be applied as provided in Section 8.2. To the
extent that the Net Proceeds of any payment bond or collateral required by this Section are not
applied directly to pay the Cost of the Project, they shall likewise be applied as provided in Section
8.2.
Section 5.5 Contractor’s General Public Liability and Property Damage Insurance.
Each contractor entering into a Construction Contract relating to the Northern Middle School
Project shall be required to procure and maintain at its own expense during the duration of such
Construction Contract standard form (a) comprehensive general public liability and property
damage insurance in the amount of at least $2,000,000 and (b) comprehensive automobile liability
insurance on owned, hired and non-owned vehicles in the amount of at least $2,000,000. Such
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policies shall include the County or the Board of Education, as may be applicable, and the Bank
as additional named insureds or loss payees. A certificate evidencing such coverage or, if such
insurance is provided by a private carrier, a completed certificate of insurance, in form acceptable
to the County or the Board of Education and the Bank, shall be provided to the County or the
Board of Education and the Bank with respect to each contractor entering into a Construction
Contract. Such insurance shall provide protection from all claims for bodily injury, including
death, property damage and contractual liability, products/completed operations, broad form
property damage and XCU (explosion, collapse and underground property damage), where
applicable.
Section 5.6 Contractor’s Builder’s Risk Insurance. Except as hereinafter provided, each
contractor entering into a Construction Contract relating to the Northern Middle School Project
shall be required to procure and maintain at its own expense property insurance (builder’s risk)
with respect to the work for which it is responsible under such Construction Contract at the full
and insurable value thereof. Such insurance will include the County or the Board of Education, as
may be applicable, as an additional named insured or loss payee and include a lender’s loss payable
endorsement in favor of the Bank, and shall insure against “all risk” subject to standard policy
conditions and exclusions. Each such contractor shall also purchase and maintain similar property
insurance for portions of such work stored off the site of the Northern Middle School Project or in
transit when such portions of such work are to be included in an application for payment. Each
such contractor shall be responsible for the payment of any deductible amounts associated with
such insurance. A certificate evidencing such coverage or, if such insurance is provided by a
private carrier, a completed certificate of insurance, in form acceptable to the County or Board of
Education and the Bank, shall be provided to the County or Board of Education and the Bank with
respect to each contractor entering into a Construction Contract relating to the Northern Middle
School Project.
The County may provide, or cause to be provided, insurance that is substantially similar to
the insurance required by this Section in lieu of requiring a contractor to provide the insurance
required by this Section.
Section 5.7 Contractor’s Worker’s Compensation Insurance. Each contractor entering
into a Construction Contract relating to the Northern Middle School Project shall be required to
procure and maintain at its own expense worker’s compensation insurance during the term of such
Construction Contract, covering its employees working thereunder. A certificate evidencing such
coverage or, if such insurance is provided by a private carrier, a completed certificate of insurance,
in form acceptable to the County or Board of Education and the Bank, shall be provided to the
County or Board of Education and the Bank with respect to each contractor entering into a
Construction Contract relating to the Northern Middle School Project. Each such Construction
Contract shall also provide that each subcontractor of any contractor who is a party to such
Construction Contract shall be required to furnish similar worker’s compensation insurance.
Section 5.8 Filing With the Bank. The County shall cause copies of all performance
bonds and insurance contracts or approved certificates thereof, as required under sections 5.4, 5.5,
5.6 and 5.7 to be delivered to the Bank within thirty (30) days after a request therefor by the Bank
and in such form as to evidence compliance with the provisions of such sections.
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ARTICLE VI
RESPONSIBILITIES OF THE COUNTY
Section 6.1 Care and Use. The County shall cause the Mortgaged Property to be used
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, or cause the
Mortgaged Property to be serviced, repaired and maintained, so as to keep the Mortgaged Property
in good condition, repair, appearance and working order for the purposes intended, ordinary wear
and tear excepted, and shall replace or restore, or cause to be replaced or restored, any part of the
Mortgaged Property as may from time to time become worn out, unfit for use, destroyed or
damaged. Any and all repairs or replacements of the Mortgaged Property 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 Property” as used in this Contract.
In any instance where the County or the Board of Education determines that any fixture
constituting a part of the Mortgaged Property has become inadequate, obsolete, worn-out,
unsuitable, undesirable or unnecessary, the County or the Board of Education may remove such
fixture and sell, trade-in, exchange or otherwise dispose of it without any responsibility or
accountability to the Bank therefor, provided that the County shall either:
(a) substitute or cause to be substituted (by direct payment of the costs thereof or by
designating as a fixture constituting a part of the Mortgaged Property other equipment, machinery
or other personal property) and install as a fixture other equipment, machinery or other personal
property having equal or greater value and utility (but not necessarily serving the same function)
in the operation of the Mortgaged Property or
(b) not make any such substitution and installation, provided that (i) the appraised value
of the remaining Mortgaged Property will not be less than the aggregate outstanding principal
components of the Installment Payments and (ii) upon the request of the Bank, which request may
be made from time to time, the County will provide or cause to be provided to the Bank reasonable
evidence of the appraised value of the Mortgaged Property at the time of such request.
The County may also, upon the loss of or damage to any portion of any fixture constituting
a part of the Mortgaged Property that is to be protected against by insurance required or permitted
by Section 6.6 and in lieu of making any claim upon such insurance, substitute and install or cause
to be substituted and installed as a fixture other equipment, machinery or other personal property
having equal or greater value and utility (but not necessarily serving the same function) in the
operation of the Mortgaged Property for such lost or damaged fixture. In any instance in which
the County so elects to substitute or cause to be substituted any fixture for any damaged fixture,
the County or the Board of Education may remove the damaged fixture from the Mortgaged
Property and dispose of it without any further responsibility or accountability to the Bank therefor.
All substituted equipment, machinery or other personal property installed as a fixture
pursuant to this Section, except for any data processing or telecommunications equipment and any
mobile or modular classrooms, shall be free of all liens and encumbrances (other than Permitted
Encumbrances) and shall become a part of the Mortgaged Property. The Bank will cooperate with
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the County and the Board of Education in implementing the County’s rights to dispose of fixtures
pursuant to this Section and will execute any and all conveyances, releases or other documents
necessary or appropriate in connection therewith and with the release of fixtures from the lien of
the Deed of Trust or any other documents evidencing a security interest therein in favor of the
Bank.
The parties acknowledge that the Board of Education shall have the right, in its sole
discretion and at its own expense, to acquire, construct and install real property improvements or
items of equipment or other personal property other than the Northern Middle School Project in or
upon any portion of the Leased Property (as defined in the Lease) that do not materially impair the
effective use or materially decrease the value of the Leased Property, as provided in Section 7.2 of
the Lease.
Section 6.2 Inspection. The Bank has the right on reasonable prior notice to the County
or the Board of Education, as may be applicable, to enter upon the Mortgaged Property to inspect
the Mortgaged Property and observe its use during normal business hours.
Section 6.3 Utilities. The County shall pay, or cause to be paid, all charges for gas,
water, steam, electricity, light, heat or power, telephone or other utility service furnished to or used
on or in connection with the Mortgaged Property. There shall be no abatement of any portion of
the Installment Payments on account of interruption of any such services.
Section 6.4 Taxes. The County shall pay, or cause to be paid, 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, licenses 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 6.5 Title Insurance. The County shall not be required to obtain a policy of title
insurance to insure its fee title to the Real Property.
Section 6.6 Insurance. The County shall maintain, or cause to be maintained, 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 for similar property. Such insurance
(which may be builder’s risk insurance in whole or in part until the completion of the Project) shall
be in an amount not less than the lesser of (i) the full replacement cost of the Mortgaged Property
or (ii) the outstanding principal components of the Installment Payments, but any such policy may
have a deductible amount of not more than $50,000. No such policy of insurance shall be so
written 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
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consent thereto by the Bank. The term “full replacement cost” shall mean the actual replacement
cost of the Mortgaged Property, without deduction for physical depreciation, and shall be
determined once every three years by an insurance consultant, in any case, selected and paid for
by the County or the Board of Education. Each such policy shall contain a replacement cost
endorsement.
(b) Comprehensive general liability insurance protecting the County, the Board of
Education and the Bank as their interests may appear, against liability for injuries to persons and/or
property, occurring on, in or about the Mortgaged Property, in the minimum amount of $2,000,000
liability to any one person for property damage, $2,000,000 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 $50,000.
(c) Workers’ compensation insurance respecting all employees of the Board of
Education 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 that
the Board of Education may be self-insured with respect to all or any part of its liability for
workers’ compensation.
Each policy of insurance obtained pursuant to this Section shall (i) be issued by a generally
recognized and responsible insurance company qualified under the laws of the State or the United
States of America to assume the risks covered by such policy, (ii) name the County, the Board of
Education and the Bank as insureds or loss payees, as their respective interests may appear, except
that policies described in paragraph (a) shall contain standard mortgagee clauses naming the Bank
as mortgagee; and (iii) unless unavailable from the insurer, provide that such policy shall not be
cancelled or modified in any way adverse to any insured or loss payee without at least thirty (30)
days’ prior written notice to each insured or loss payee named therein. The County or the Board
of Education, as may be applicable, shall have the right to receive the proceeds from any insurance
maintained pursuant to this Section, subject, however, to the provisions of this Article VI and
Article VIII.
All such policies shall be deposited with the Bank, provided that in lieu of such policies
there may be deposited with the Bank a certificate or certificates of the respective insurers or other
evidence satisfactory to the Bank to the effect 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 to the Bank
evidence satisfactory to the latter that the policy has been renewed or replaced or is no longer
required by this Contract.
In lieu of separate policies the County may maintain or cause the Board of Education to
maintain blanket or umbrella policies or participate in or cause the Board of Education to
participate in group risk financing programs, risk pools, purchasing groups, captive insurance
companies or state and federal programs if such policies or other insurance alternatives provide
the same coverage as 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 Bank 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.
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Section 6.7 Rating and Insurance. The Bank reserves the right to have this transaction
rated and/or insured by a qualified rating agency and/or insurer at the Bank’s sole cost at any time
during the Contract. The County agrees to cooperate with the Bank and the agency/insurer in
providing any requested financial or non-financial information that may be material to obtaining
the rating/insurance.
Section 6.8 Risk of Loss. The County shall bear all risk of loss or damage to and
condemnation of the Project. In the event of loss or damage to or condemnation of the Project
resulting in Net Proceeds of any insurance policies or condemnation awards, such Net Proceeds
shall be applied in accordance with the provisions of Section 8.2.
Section 6.9 Performance by the Bank of the County’s Responsibilities. Any
performance required of the County or any payments other than Installment Payments required to
be made by the County may, if not timely performed or paid, be performed or paid by the Bank,
and, in that event, the Bank shall be immediately reimbursed by the County for such payments or
other performance by the Bank with interest thereon at the Prime Rate.
Section 6.10 Financial Statements. The County shall send to the Bank (i) a copy of the
County’s audited financial statements for each fiscal year within thirty (30) days of the County’s
acceptance of such statements, but in any event within one hundred eighty (180) days of the
completion of such fiscal year and (ii) a copy of the County’s annual budget promptly after
adoption, as well as any amendments to the budget that affect the appropriation for Installment
Payments.
The County shall furnish to the Bank, at such reasonable times as the Bank shall request,
all other financial information (including, without limitation, the County’s annual budget as
submitted or approved) as the Bank may reasonably request. The County shall permit the Bank or
its agents and representatives to inspect the County’s books and records and make extracts
therefrom.
The County represents and warrants to and covenants with the Bank that all financial
statements which have been or may be delivered to the Bank reflect or will reflect fairly and
accurately the County’s financial condition and that, except as the County may notify the Bank
otherwise, there has been and will be no material adverse change in the County’s financial
condition as reflected in the financial statements since the respective dates thereof.
Section 6.11 Leasing by County or Board of Education. The County has entered into the
Lease with the Board of Education. In addition, the Board of Education, with the written consent
of the County, may sublease any portion of the Mortgaged Property leased to it pursuant to the
Lease, subject to all of the following conditions:
(a) The County shall not be relieved of any of its obligations under this Contract.
(b) The County shall, within thirty (30) days after the execution of any sublease, furnish
or cause to be furnished to the Bank a true and complete copy of such sublease.
(c) No sublease shall cause the interest components of the Installment Payments to be
includable in gross income for purposes of federal income taxation.
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(d) Any sublease shall be subject to the provisions of this Contract and the Deed of
Trust and subordinate to the lien of the Deed of Trust.
The Board of Education may also grant licenses for the temporary use of the Leased
Property or make the Leased Property available for community use in accordance with the laws of
the State.
ARTICLE VII
TITLE; LIENS; PERSONAL PROPERTY
Section 7.1 Title. Title to the Mortgaged Property shall be in the County from and after
the date of execution and delivery of this Contract so long as the County shall not be in default
hereunder or this Contract shall not have been terminated pursuant to the provisions of Article XIII
hereof, subject to the Permitted Encumbrances, and shall vest permanently in the County upon the
payment in full of the Amount Advanced plus accrued interest thereon and all other payments due
hereunder, free and clear of any lien or security interest of the Bank under this Contract.
Simultaneously with the execution and delivery of this Contract, the County shall deliver to the
Bank the Deed of Trust in form satisfactory to the Bank. Upon payment in full of all of the
County’s obligations hereunder, including the Amount Advanced, interest accrued thereon and all
other payments due hereunder, the Bank, at the County’s request, shall release and cancel the Deed
of Trust.
Section 7.2 Liens. The County shall not, directly or indirectly, create, incur, assume or
suffer to exist any mortgage, pledge, lien, security interest, charge, encumbrance or claim on or
with respect to the Mortgaged Property or any interest therein (except for Permitted
Encumbrances) without the prior written consent of the Bank. The County shall promptly, at its
own expense, take such action as may be necessary to duly discharge any such mortgage, pledge,
lien, security interest, charge, encumbrance or claim if the same shall arise at any time. The County
shall reimburse the Bank for any expense incurred by it (including reasonable attorneys’ fees and
reasonable expenses), after prior notice to the County, in order to discharge or remove any such
mortgage, pledge, lien, security interest, charge, encumbrance or claim.
Section 7.3 Personal Property. The County or the Board of Education at any time and
from time to time, in its sole discretion and at its own expense, may install or permit to be installed
items of equipment or other personal property in or upon any portion of the Mortgaged Property
and may remove or replace such items and property if they do not constitute fixtures. All such
items that constitute fixtures, except for any data processing or telecommunications equipment and
any mobile or modular classrooms, shall become a part of the Mortgaged Property. All such items
constituting data processing or telecommunications equipment or mobile or modular classrooms
or that are not deemed to be fixtures shall remain the sole personal property of the County or the
Board of Education, as may be applicable, in which the Bank shall not have any interest, and may
be modified or removed by the County or the Board of Education at any time, provided that the
County shall repair and restore, or cause to be repaired and restored, any and all damage to the
Mortgaged Property resulting from the installation, modification or removal of any such items.
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ARTICLE VIII
DAMAGE, DESTRUCTION AND CONDEMNATION; USE OF NET PROCEEDS
Section 8.1 Damage, Destruction or Condemnation. If, during the term hereof, (i) the
Project 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 Project or any portion thereof or the estate of the County,
the Board of Education, the Bank or its assignee in the Project or any portion thereof is taken under
the power of eminent domain by any governmental authority other than the County or (iii) a
material defect in the acquisition, construction and installation of the Project becomes apparent,
then the County shall continue to be obligated to pay the amounts specified in Section 3.1 at the
respective times required regardless of whether the documentation provided for in Section 2.3(a)
of the Project Fund Agreement has been delivered.
If any part of the Mortgaged Property is destroyed or damaged by fire or other casualty,
then the County will promptly cause the Mortgaged Property to be restored to the equivalent of its
condition immediately prior to such casualty, and, if any part of the Mortgaged Property or its use
is damaged or restricted by any exercise of the power of eminent domain, then the County will
promptly cause the Mortgaged Property to be restored, repaired or modified in a manner
satisfactory to the Bank.
Section 8.2 Use of Net Proceeds to Repair or Replace the Mortgaged Property. Except
as hereinafter provided, the Bank and the County shall cause the Net Proceeds of any insurance
policies, payment bonds, performance bonds, condemnation awards or moneys received as a
consequence of default under a Construction Contract or otherwise made available by reason of
any occurrence described in Section 5.4 or 8.1 relating to the Mortgaged Property to be deposited
in the Project Fund, if received before the termination of the Project Fund, or, if received thereafter,
to be deposited in a separate fund held by the Bank. All Net Proceeds so deposited shall be applied
by the Bank to the prompt repair, restoration, modification, improvement or replacement of the
Mortgaged Property on receipt of requisitions from the County, substantially similar in form to the
form in Exhibit A attached to the Project Fund Agreement, signed by a Borrower Representative
designated in Section 3.11 of the Project Fund Agreement if signed before the termination of the
Project Fund or by a County Representative if signed thereafter, together with the documents or
other items required thereunder. If such Net Proceeds arising from any single event, or any single
substantially related sequence of events, are not more than $50,000, then the Board of Education
shall retain such Net Proceeds and apply them to the prompt repair, restoration, modification,
improvement or replacement of the Mortgaged Property and thereafter shall promptly report to the
County and the Bank regarding the use of such Net Proceeds. Any repair, restoration,
modification, improvement or replacement of the Mortgaged Property paid for in whole or in part
out of such Net Proceeds shall be the property of the County, subject to the Deed of Trust, and
shall be included as part of the Mortgaged Property under this Contract.
The County shall cause the Net Proceeds of any insurance policies, payment bonds,
performance bonds, condemnation awards or moneys received as a consequence of default under
a Construction Contract or otherwise made available by reason of any occurrence described in
Section 5.4 or 8.1 relating to any portion of the Project other than the Mortgaged Property to be
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used to pay for the capital costs of such governmental facilities as the County may determine,
provided that, in the opinion of nationally recognized bond counsel, it is permissible to do so.
Section 8.3 Cooperation of Bank. The Bank shall cooperate fully with the County and
the Board of Education in filing any proof of loss with respect to any insurance policy covering
the events described in Section 8.1. In no event shall the Bank 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.
ARTICLE IX
REPRESENTATIONS OF THE COUNTY AND BANK
Section 9.1 Representations, Covenants and Warranties of the County. The County
represents, covenants and warrants to the Bank as follows:
(a) The County is a body politic and corporate and a political subdivision organized
and existing under the Constitution and laws of the State.
(b) The Constitution and laws of the State authorize the County to (i) execute and
deliver this Contract, the Deed of Trust, the Lease and the Administrative Agreement, (ii) enter
into the transactions contemplated hereby and thereby and (iii) carry out its obligations hereunder
or thereunder.
(c) The County has duly authorized the execution and delivery of this Contract, the
Deed of Trust, the Lease and the Administrative Agreement in accordance with the Constitution
and laws of the State.
(d) Neither the execution and delivery of this Contract, the Deed of Trust, the Lease or
the Administrative Agreement, nor the fulfillment of or compliance with the terms and conditions
hereof or thereof, nor the consummation of the transactions contemplated hereby or thereby,
conflicts with or results in a breach of the terms, conditions or provisions or any charter provision
or 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.
(e) Other than building permits or other procedural requirements which are a
prerequisite to the construction of the Project, no approval or consent is required from any
governmental authority with respect to the entering into or performance by the County of this
Contract, the Deed of Trust, the Lease, the Administrative Agreement or any other documents
related hereto or thereto and the transactions contemplated hereby and thereby, or if such approval
is required, it has been duly obtained.
(f) There is no action, suit, proceeding or investigation at law or in equity before or by
any court, public board or body pending or threatened against or affecting the County challenging
the validity or enforceability of this Contract, the Deed of Trust, the Lease, the Administrative
Agreement or any other documents relating hereto or thereto and the performance of the County’s
obligations hereunder and thereunder.
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(g) The Project is essential for the improved administration of County government and
improved public education in the County and the Project will permit the County to carry out public
functions that it is authorized by law to perform.
(h) The County Manager or Finance Director of the County shall include the
Installment Payments and reasonably estimated Additional Payments coming due in each fiscal
year in the corresponding annual budget request and exercise due diligence to have the Board of
Commissioners include funds for the payment thereof in the corresponding final budget of the
County. Any deletion of such funds from the County’s final budget shall be made only pursuant
to an express resolution of the Board of Commissioners which explains the reason for such action.
Subject to applicable law, the actions required of the County and its officers and of the Board of
Commissioners pursuant to this paragraph shall be deemed to be and shall be construed to impose
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 official to enable the County to carry out and perform the actions required pursuant to this
paragraph and its other agreements in this Contract. Nothing contained in this paragraph obligates
the County to appropriate the moneys so budgeted or is to be construed to conflict with the
provisions of Article XV.
If within fifteen (15) days after the beginning of any fiscal year the County has not
appropriated funds for the payment of the Installment Payments and reasonably estimated
Additional Payments coming due in such fiscal year in the annual budget for such fiscal year or if
at any time the County amends an annual budget to reduce such funds, then the County shall send
a notice to such effect to the Bank and to the Local Government Commission of North Carolina to
the attention of its Secretary at 3200 Atlantic Avenue, Raleigh, North Carolina 27604.
(i) There has not been any material change in the County’s financial condition since
the date of the last annual financial statement of the County provided to the Bank.
(j) The County acknowledges that the Bank has not acted as a financial advisor to the
County with respect to this Contract. The County has not relied on the Bank for any financial
advice.
Section 9.2 Representations, Covenants and Warranties of the Bank. The Bank
represents, covenants and warrants to the County as follows:
(a) The Bank is a North Carolina state-chartered bank duly organized, existing and in
good standing under and by virtue of the laws of the State and has the power and authority to enter
into this Contract.
(b) Neither the execution and delivery of this Contract nor the fulfillment of or
compliance with the terms and conditions hereof or thereof, nor the consummation of the
transactions contemplated hereby or thereby, conflicts with or results in a breach of the terms,
conditions or provisions of the organizational documents of the Bank or any restriction or any
agreement or instrument to which the Bank is now a party or by which the Bank is bound.
(c) The Bank understands that (1) “E-Verify” is a federal program operated by the
United States Department of Homeland Security and other federal agencies, or any successor or
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equivalent program used to verify the work authorization of newly hired employees pursuant to
federal law and (2) Article 2 of Chapter 64 of the General Statutes of North Carolina, as amended
(the “E-Verify Statute”), requires employers (as defined in the E-Verify Statute) to verify the work
authorization of an employee (as defined in the E-Verify Statute) hired to work in the United States
through E-Verify. The Bank and the Bank’s subcontractors under this Contract shall comply with
the requirements of the E-Verify Statute.
(d) The Bank hereby certifies that it is not on any list created and maintained by the
North Carolina Department of State Treasurer pursuant to the Iran Divestment Act of 2015, Article
6E, as amended, of Chapter 147 of the General Statutes of North Carolina.
(e) The Bank hereby certifies that it is not on any list created and maintained by the
North Carolina Department of State Treasurer pursuant to the Divestment from Companies that
Boycott Israel Act, Article 6G, as amended, of Chapter 147 of the General Statutes of North
Carolina.
ARTICLE X
TAX COVENANTS
Section 10.1 Tax Covenants. The County covenants that, to the extent permitted by law,
it will not take any action, or fail to take any action, if any such action or failure to take action
would adversely affect the exclusion from gross income for federal income tax purposes of the
interest components of the Installment Payments under Section 103 of the Code. The County will
not directly or indirectly use or permit the use of any proceeds of the Project Fund or any other
funds of the County, or take or omit to take any other action, that would cause the obligation of
the County to make Installment Payments created by this Contract to be an “arbitrage bond” within
the meaning of Section 148(a) of the Code. To that end, the County has executed the Tax
Certificate, dated as of the Closing Date (the “Tax Certificate”), and will comply with all
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.
The County will maintain books on which will be recorded (i) the Bank or (ii) any assignee
of the Installment Payments due under this Contract as the registered owner of the Installment
Payments.
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 of the County to make Installment Payments created by this Contract
from time to time. This covenant shall survive the termination of this Contract.
Notwithstanding any provision of this Article, if the County shall provide to the Bank an
opinion of nationally recognized bond counsel to the effect that any action required under this
Section or the Tax Certificate is no longer required, or to the effect that some further action is
required, to maintain the exclusion from gross income of the interest components of the Installment
Payments pursuant to Section 103 of the Code, the County and the Bank may rely conclusively on
such opinion in complying with the provisions of this Article.
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ARTICLE XI
INDEMNIFICATION
Section 11.1 Indemnification. To the fullest extent permitted by law and subject to the
provisions of Section 160A-20 of the North Carolina General Statutes, as amended, the County
hereby agrees to indemnify, protect and save the Local Government Commission of North
Carolina, the Bank and the Deed of Trust Trustee and their respective officers, employees,
directors, members and agents (collectively the “Indemnitees”) harmless from all liabilities,
obligations, losses, 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 (ii) arise out of, are connected with, or result, directly or
indirectly, from the Project 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 Project or any portion thereof, or the
transactions contemplated by this Contract; provided, however, that the right to indemnification
shall not apply to losses arising from (i) any action taken by any other Indemnitee and (ii) the
exercise of the right of the County not to appropriate moneys for the payment of Installment
Payments. The indemnification arising under this Article shall continue in full force and effect
notwithstanding the payment in full of all obligations under this Contract, subject only to the
remedies allowable under Section 160A-20 of the North Carolina General Statutes, as amended.
ARTICLE XII
DISCLAIMER OF WARRANTIES
Section 12.1 No Representations by the Bank. The County acknowledges and agrees that
it or the Board of Education has selected or will select the Real Property and the components of
the Project, the vendors of any equipment acquired and the Engineers and contractors for the
acquisition, construction and installation of the Project based on its own judgment and disclaims
any reliance on any statements or representations by the Bank with respect thereto.
Section 12.2 Disclaimer by the Bank. THE BANK MAKES NO WARRANTIES OR
REPRESENTATIONS, EXPRESS OR IMPLIED, AS TO THE CONDITION,
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROJECT
OR ANY OTHER REPRESENTATION OR WARRANTY WITH RESPECT TO THE
PROJECT.
ARTICLE XIII
DEFAULT AND REMEDIES
Section 13.1 Definition of Event of Default. The County shall be deemed to be in default
under this Contract upon the happening of any of the following events of default (each, an “Event
of Default”):
(a) The County fails to make any Installment Payment or pay any other amount
hereunder when due.
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(b) (i) The County fails to budget and appropriate moneys sufficient to pay all
Installment Payments and the reasonably estimated Additional Payments coming due in any fiscal
year of the County; or (ii) the County deletes from its duly adopted budget any appropriation for
the purposes specified in clause (i) above.
(c) 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 subparagraph (a) or
(b) above, or of the Deed of Trust on its part to be observed or performed, or breaches any warranty
by the County herein contained, other than as referred to in subparagraph (e) of this Section, for a
period of thirty (30) days after written notice specifying such failure or breach and requesting that
it be remedied has been given to the County by the Bank; provided, however, that if such failure
or breach cannot with due diligence be cured within such thirty (30)-day period and the County
has promptly commenced and diligently worked to cure such failure or breach within such thirty
(30)-day period, the County will have an additional period of ninety (90) days to cure such failure
or breach and, further, that if such failure or breach cannot with due diligence be cured within such
ninety (90)-day period and the County has diligently continued to work to cure such failure or
breach within such ninety (90)-day period, then, upon consultation with the Bank as to such matter,
the County will have an additional reasonable period of time to cure such failure or breach as long
as the County diligently continues to work to cure such failure or breach.
(d) 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
ninety (90) days after the institution or occurrence thereof.
(e) Any warranty, representation or statement made by the County in this Contract, the
Deed of Trust or 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.
(f) An attachment, levy or execution of a security interest or lien is levied on or against
any portion of the Mortgaged Property.
Section 13.2 Remedies on Default. On the occurrence of any Event of Default, the Bank
may exercise any one or more of the following remedies as the Bank, in its sole discretion, shall
elect:
(a) Declare the outstanding principal components of the Installment Payments plus the
interest component of the next due Installment Payment accrued to the date of such declaration to
be immediately due and payable without notice to or demand on the County.
(b) Proceed by appropriate court action to enforce performance by the County of the
applicable covenants of this Contract or to recover for the breach thereof (other than a failure to
pay Installment Payments or any other payment hereunder).
(c) Subject to the provisions of Article XV, exercise all the rights and remedies of a
secured party or creditor under the general laws of the State with respect to the enforcement of the
security interest granted under the Deed of Trust including, without limitation, to the extent
permitted by law, reenter and take possession of the Mortgaged Property without any court order
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or other process of law and without liability for entering the premises and sell, lease, sublease or
make other disposition of the same in a commercially reasonable manner for the account of the
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, sale, lease, sublease or other disposition of the Mortgaged Property,
toward the obligations due under this Contract and, thereafter, pay any remaining proceeds to the
County.
(d) Enforce its security interest or direct the Deed of Trust Trustee to institute
foreclosure proceedings under the Deed of Trust and sell the Mortgaged Property.
(e) Withdraw any funds remaining in the Project Fund and apply such funds as
provided in Section 2.3 of the Project Fund Agreement.
NOTWITHSTANDING ANY OTHER PROVISIONS IN THIS CONTRACT, IT IS THE
INTENT OF THE PARTIES HERETO TO COMPLY WITH SECTION 160A-20 OF THE
GENERAL STATUTES OF NORTH CAROLINA, AS AMENDED. NO DEFICIENCY
JUDGMENT MAY BE ENTERED AGAINST THE COUNTY IN FAVOR OF THE BANK IN
VIOLATION OF SECTION 160A-20 OF THE GENERAL STATUTES OF NORTH
CAROLINA, AS AMENDED, INCLUDING, WITHOUT LIMITATION, ANY DEFICIENCY
JUDGMENT FOR AMOUNTS THAT MAY BE OWED UNDER THIS CONTRACT WHEN
THE SALE OF ALL OR ANY PORTION OF THE MORTGAGED PROPERTY IS
INSUFFICIENT TO PRODUCE ENOUGH MONEY TO PAY IN FULL ALL OUTSTANDING
OBLIGATIONS UNDER THIS CONTRACT.
Section 13.3 Further Remedies. Subject to the provisions of Article XV, this Contract
shall remain in full force and effect and the County shall be and remain liable for the full
performance of all its obligations under this Contract. All remedies of the Bank are cumulative
and may be exercised concurrently or separately. The exercise of any one remedy shall not be
deemed an election of such remedy or preclude the exercise of any other remedy.
Section 13.4 Right of Board of Education. The Bank acknowledges that the Board of
Education has the right (but no obligation) to pay any amounts due hereunder on behalf of the
County or to perform any other covenants of the County hereunder relating to the School Project,
provided that any such right or the exercise thereof on the part of the Board of Education will not
extend the time for payment or other performance set forth herein.
ARTICLE XIV
ASSIGNMENT
Section 14.1 Assignment by the County. Except as provided in the Deed of Trust, the
County will not sell, assign, lease, sublease, pledge or otherwise encumber or suffer a lien or
encumbrance on or against any interest in this Contract or the Mortgaged Property (except for the
Permitted Encumbrances) without the prior written consent of the Bank.
Section 14.2 Assignment by the Bank. The Bank may, at any time and from time to time,
assign to any bank, insurance company or similar financial institution or to any other entity or any
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trust created to hold a pool of obligations approved by the Local Government Commission of
North Carolina all or any part of its interest in the Mortgaged Property or this Contract, including,
without limitation, the Bank’s rights to receive the Installment Payments and any Additional
Payments due and to become due hereunder. Reassignment by any assignee may also only be to
a bank, insurance company or similar financial institution or to any other entity or any trust created
to hold a pool of obligations approved by the Local Government Commission of North Carolina.
The County agrees that this Contract may become part of a pool of obligations at the Bank’s or its
assignee’s option. The Bank or its assignees may assign or reassign either the entire pool or any
partial interest herein. Notwithstanding the foregoing, no assignment or reassignment of the
Bank’s interest in the Mortgaged Property or this Contract shall be effective unless and until the
County shall receive a duplicate original counterpart of the document by which such assignment
or reassignment is made disclosing the name and address of each assignee. The County covenants
and agrees with the Bank and each subsequent assignee of the Bank to maintain for the full term
of this Contract a written record of each such assignment or reassignment. The County hereby
appoints the Bank as its agent for the purpose of maintaining any written record in connection with
an assignment under this Section, and the Bank hereby accepts such appointment. The County
agrees to execute any document reasonably required by the Bank in connection with any
assignment. Notwithstanding any assignment by the Bank of its interest in this Contract, the
County shall not be obligated to provide any financial or other information to any assignee of the
Bank except as set forth in Section 6.10.
After the giving of notice described above to the County, the County shall thereafter make
all payments in accordance with the notice to the assignee named therein and shall, if so requested,
acknowledge such assignment in writing, but such acknowledgement shall in no way be deemed
to make the assignment effective.
The Bank covenants that any disclosure document circulated by it or an assignee in
connection with the sale of the Bank’s rights in this Contract will contain a statement to the effect
that the County has not reviewed and is not responsible for the disclosure document. The Bank
covenants to defend, indemnify and hold harmless the County and its officers, employees and
agents against any and all losses, claims, damages or liabilities, joint or several, including fees and
expenses incurred in connection therewith, to which such indemnified party may become subject
on account of any statement included in a disclosure document, or failure to include a statement in
a disclosure document, unless the County shall have expressly approved the use of such disclosure
document.
ARTICLE XV
LIMITED OBLIGATION OF THE COUNTY
Section 15.1 Limited Obligation of the 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
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.
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THIS CONTRACT SHALL NOT DIRECTLY OR INDIRECTLY OR CONTINGENTLY
OBLIGATE THE COUNTY TO MAKE ANY PAYMENTS BEYOND THOSE
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 THE FAILURE BY THE COUNTY TO MAKE ANY PAYMENT COMING DUE UNDER
THIS CONTRACT 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 UNDER THIS CONTRACT, AND THE TAXING POWER
OF THE COUNTY IS NOT AND MAY NOT BE PLEDGED DIRECTLY OR INDIRECTLY
OR CONTINGENTLY TO SECURE ANY MONEYS DUE UNDER THIS CONTRACT. NO
PROVISION OF THIS CONTRACT SHALL BE CONSTRUED TO PLEDGE OR TO CREATE
A LIEN ON ANY CLASS OR SOURCE OF THE COUNTY’S MONEYS, 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
THE COUNTY’S MONEYS. TO THE EXTENT OF ANY CONFLICT BETWEEN THIS
ARTICLE AND ANY OTHER PROVISION OF THIS CONTRACT, THIS ARTICLE SHALL
TAKE PRIORITY.
ARTICLE XVI
MISCELLANEOUS
Section 16.1 Waiver. No covenant or condition of this Contract can be waived except by
the written consent of the Bank. Any failure of the Bank to require strict performance by the
County or any waiver by the Bank 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 16.2 Severability. If any portion of this Contract is determined to be invalid
under any applicable law, such provision shall be deemed void and the remainder of this Contract
shall continue in full force and effect.
Section 16.3 Governing Law. This Contract shall be construed and governed in
accordance with the laws of the State.
Section 16.4 Notices. Except as provided otherwise in this Contract or as provided in
Section 2.2 of the Project Fund Agreement with respect to the delivery of requisitions to the Bank,
any and all notices, requests, demands and other communications given under or in connection
with this Contract (a) must be in writing (not including facsimile transmission or electronic mail)
and (b) shall be deemed to have been properly given when personally delivered or delivered on
the date shown on a United States Mail certified mail receipt or a delivery receipt (or similar
evidence) from a national commercial package delivery service and addressed to the addressees as
follows:
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If to the County:
County of Person, North Carolina
304 South Morgan Street, Room 219
Roxboro, North Carolina 27573-5245
Attention: Finance Director
with a copy to:
County of Person, North Carolina
304 South Morgan Street, Room 212
Roxboro, North Carolina 27573-5245
Attention: County Manager
If to the Bank:
Branch Banking and Trust Company
5130 Parkway Plaza Boulevard
Charlotte, North Carolina 28217
Attention: Governmental Finance
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, request, demand or other
communication sent. By giving at least thirty (30) days written notice thereof, the County and the
Bank shall have the right from time to time and at any time during the term of this Contract 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 16.5 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
this Contract.
Section 16.6 Entire Contract. This Contract, together with the schedules and exhibits
hereto, constitutes the entire agreement between the parties and this Contract shall not be modified,
amended, altered or changed except as the County and the Bank may subsequently agree in writing.
Section 16.7 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 Bank).
Section 16.8 Time. Time is of the essence of this Contract and each and all of its
provisions.
Section 16.9 If Payment or Performance Date Not a Business Day. If the date for making
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 interest shall accrue for the period after such nominal date.
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Section 16.10 Covenants of County not Covenants of Officials Individually. No covenant,
stipulation, obligation or agreement contained in this Contract shall be deemed to be a covenant,
stipulation, obligation or agreement of any present or future member, agent or employee of the
Board of Commissioners or the County in his individual capacity, and neither the members of the
Board of Commissioners nor any other officer of the Board of Commissioners or the County shall
be subject to any personal liability or accountability by reason of the execution and delivery of this
Contract. No member of the Board of Commissioners or any agent or employee of the County
shall incur any personal liability in acting or proceeding or in not acting or not proceeding, in good
faith, reasonably and in accordance with the terms of this Contract.
Section 16.11 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 instrument.
Section 16.12 Proposal Letter. The terms of this Contract shall supersede the terms of the
proposal letter from the Bank to the County dated March 23, 2018 and any amendments thereof or
supplements thereto, as accepted by the County on April 9, 2018. To the extent of any conflict
between this Contract and such proposal letter, this Contract will take priority.
IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed by
their duly authorized officers as of the day and year first above written.
COUNTY OF PERSON, NORTH CAROLINA
[SEAL] By: ____________________________________
Tracey L. Kendrick
Chairman of the Board of Commissioners
for the County
ATTEST:
_____________________________
Brenda B. Reaves
Clerk to the Board of Commissioners
for the County
[Signatures Continued on the Following Page]
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28
[Counterpart Signature Page to the Installment Financing Contract,
dated May 10, 2018, between Branch Banking and Trust Company
and the County of Person, North Carolina]
BRANCH BANKING AND TRUST COMPANY
By: ____________________________________
Alison W. Peeler
Senior Vice President
[Signatures Continued on the Following Page]
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29
[Counterpart Signature Page to the Installment Financing Contract,
dated May 10, 2018, between Branch Banking and Trust Company
and the County of Person, North Carolina]
THIS CONTRACT HAS BEEN APPROVED UNDER
THE PROVISIONS OF SECTION 159-152 OF THE
GENERAL STATUTES OF NORTH CAROLINA, AS AMENDED
By: ___________________________________
Greg C. Gaskins
Secretary of the Local Government
Commission of North Carolina
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30
PAYMENT SCHEDULE
Installment
Payment Date
Total
Installment
Payment
Interest
Component
Principal
Component
11/1/2018 $ 124,046.58 $ 74,046.58 $ 50,000.00
5/1/2019 126,342.50 76,342.50 50,000.00
11/1/2019 175,465.00 75,465.00 100,000.00
5/1/2020 173,710.00 73,710.00 100,000.00
11/1/2020 271,955.00 71,955.00 200,000.00
5/1/2021 268,445.00 68,445.00 200,000.00
11/1/2021 264,935.00 64,935.00 200,000.00
5/1/2022 261,425.00 61,425.00 200,000.00
11/1/2022 257,915.00 57,915.00 200,000.00
5/1/2023 254,405.00 54,405.00 200,000.00
11/1/2023 250,895.00 50,895.00 200,000.00
5/1/2024 247,385.00 47,385.00 200,000.00
11/1/2024 243,875.00 43,875.00 200,000.00
5/1/2025 240,365.00 40,365.00 200,000.00
11/1/2025 236,855.00 36,855.00 200,000.00
5/1/2026 233,345.00 33,345.00 200,000.00
11/1/2026 192,335.00 29,835.00 162,500.00
5/1/2027 189,483.13 26,983.13 162,500.00
11/1/2027 186,631.25 24,131.25 162,500.00
5/1/2028 183,779.38 21,279.38 162,500.00
11/1/2028 180,927.50 18,427.50 162,500.00
5/1/2029 178,075.63 15,575.63 162,500.00
11/1/2029 175,223.75 12,723.75 162,500.00
5/1/2030 172,371.88 9,871.88 162,500.00
11/1/2030 107,020.00 7,020.00 100,000.00
5/1/2031 105,265.00 5,265.00 100,000.00
11/1/2031 53,510.00 3,510.00 50,000.00
5/1/2032 52,632.50 2,632.50 50,000.00
11/1/2032 51,755.00 1,755.00 50,000.00
5/1/2033 50,877.50 877.50 50,000.00
The County shall wire funds in amounts equal to the Installment Payments to the Bank
pursuant to written instructions provided by the Bank.
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A-1
EXHIBIT A
DESCRIPTION OF THE PROJECT
The Project consists of the County Project and the School Project.
The County Project consists of (a) acquiring, constructing and installing two
communication towers and related facilities and equipment that are a part of a project to improve
the public safety communication system serving the residents of the County and (b) installing a
heating, ventilating and air conditioning system at the Huck Sansbury Gym.
The two communication towers and related facilities are located at __________________
________________________________________________.
The Huck Sansbury Gym is located at 303 South Morgan Street, Roxboro, North Carolina
27573.
The School Project consists of (a) replacing the fire alarm system and three rooftop heating,
ventilating and air conditioning units at Northern Middle School, (b) replacing the roof at Early
Intervention & Family Services, (c) replacing the cooling towers at Helena Elementary School and
Stories Creek Elementary School and (d) replacing heating and cooling unit valves at South
Elementary School.
Northern Middle School is located at _______________________________________.
Early Intervention & Family Services is located at _____________________________.
Helena Elementary School is located at _____________________________________.
Stories Creek Elementary School is located at ________________________________.
South Elementary School is located at 1333 Hurdle Mills Road, Roxboro, North Carolina
27573.
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B-1
EXHIBIT B
DESCRIPTION OF THE REAL PROPERTY
The Real Property consists of a tract or parcel of land described as follows:
Being that tract of land lying in Roxboro Township, Person County, North Carolina,
bounded on the North by the lands of Piedmont Technical Institute; on the East by the lands
of Collins & Aikman Corporation, the lands of William Cozart and W. Ruffin Woody, Jr.;
bounded on the South by the center line of a Carolina Power & Light Company power line
easement and bounded on the West by Rosemary Creek, containing 40 acres, more or less
and more particularly described as follows: BEGINNING at an iron pin lying in the center
line of Rosemary Creek and marking the southwestern corner of the lands of Piedmont
Technical Institute; thence along and with the southern line of the lands of said Institute
South 89° 52’ 18” East 2,223.62 feet to a concrete monument; thence along and with the
western line of the lands of Collins & Aikman Corporation South 1° 17’ 53” West 146.91
feet to a concrete monument; thence along and with the western line of the lands of William
Cozart South 1° 7’ 15” West 767.22 feet to an iron pin; thence along and with the western
line of the lands of W. Ruffin Woody, Jr. South 1° 8’ 52” West 207.78 feet to an iron pin
lying in the center line of the Carolina Power & Light Company power line easement;
thence along and with the center line of said power line easement North 73° 24’ 57” West
2,437.35 feet to an iron pin lying in the center line of Rosemary Creek; thence along and
with the center line of said creek as it meanders the following courses and distances: North
41° 35’ 33” East 131.32 feet to an iron pin; thence North 11° 16’ 21” East 243.09 feet to
an iron pin; thence North 0° 5’ 36” East 94.36 feet to that iron pin marking the southwestern
corner of the lands of Piedmont Technical Institute and being the point and place of
beginning and being all of the lands lying to the North of the center line of the Carolina
Power & Light Company power line easement as shown on that plat of survey made by
Phillip J. Hall, Surveyor, dated November, 1974, entitled “Property of Frank Howard
Estate” and recorded in Plat Book 20, at page 90, Person County Registry; said plat being
hereby specifically incorporated by reference.
All the above-described lands lying within the 70-foot wide power line right of way shown
on the above-described plat of survey are subject to an easement in favor of Carolina Power
& Light Company.
The above described property is currently operated as Northern Middle School.
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AGREEMENT CONCERNING
VARIOUS SCHOOL IMPROVEMENTS
by and between
THE PERSON COUNTY BOARD OF EDUCATION
and
PERSON COUNTY, NORTH CAROLINA
Dated May 10, 2018
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AGREEMENT CONCERNING
VARIOUS SCHOOL IMPROVEMENTS
THIS AGREEMENT, dated May 10, 2018, and entered into by and between The Person
County Board of Education, a body corporate which has general control and supervision of all
matters pertaining to the non-charter public schools in the Person County Schools, its respective
school administrative unit, and is duly organized and existing under the laws of the State of North
Carolina (the “Board of Education”), and the County of Person, North Carolina, a body corporate
and politic and a political subdivision of the State of North Carolina (the “County”),
W I T N E S S E T H:
WHEREAS, the County and the Board of Education have determined to cooperate in a
plan to finance a portion of the cost of a project which each has found to be necessary and desirable
to provide for improved public school facilities and improved public education in such school
administrative unit;
WHEREAS, such project consists of (a) replacing the fire alarm system and three rooftop
heating, ventilating and air conditioning units at Northern Middle School, (b) replacing the roof at
Early Intervention & Family Services, (c) replacing the cooling towers at Helena Elementary
School and Stories Creek Elementary School and (d) replacing heating and cooling unit valves at
South Elementary School, as more particularly described in the Installment Financing Contract
hereinafter defined (collectively, the “School Project”);
WHEREAS, the County has also determined to finance a portion of the cost of a project
consisting of (a) acquiring, constructing and installing two communication towers and related
facilities and equipment that are a part of a project to improve the public safety communication
system serving the residents of the County and (b) installing a heating, ventilating and air
conditioning system at the Huck Sansbury Gym, as more particularly described in the Installment
Financing Contract (collectively, the “County Project” and, together with the School Project, the
“Project”);
WHEREAS, as a part of such plan, the Board of Education is to convey the site of Northern
Middle School and the improvements thereon (the “Property”) to the County and the County is to
lease the Property to the Board of Education;
WHEREAS, the Board of Education is authorized (a) to sell the Property to the County for
any price negotiated between them in connection with the School Project, (b) to lease the Property
from the County and (c) to enter into contracts for the acquisition, construction and installation of
the School Project;
WHEREAS, the County is authorized (a) to acquire the Property from the Board of
Education, (b) to lease the Property to the Board of Education and (c) to construct, improve or
otherwise make available property for use by the Person County Schools;
WHEREAS, the County is also authorized to finance a portion of the Cost of the Project,
as defined in the Installment Financing Contract, by contracts that create security interests in the
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Property and the improvements thereon and certain related property to secure repayment of
moneys made available for such purpose;
WHEREAS, the Board of Education and the County are authorized to enter into
agreements in order to execute such plan, and this agreement (this “Agreement”) constitutes such
an agreement; and
WHEREAS, all acts, conditions and things required by law to exist, to have happened and
to have been performed precedent to and in connection with the execution and entering into of this
Agreement do exist, have happened and have been performed in regular and due time, form and
manner as required by law, and the parties hereto are now duly authorized to execute and enter
into this Agreement;
NOW, THEREFORE, in consideration of the premises and of the mutual agreements and
covenants contained herein and for other valuable consideration, the parties hereto do hereby agree
as follows:
Section 1. Sale of Property to County. The Board of Education will sell the Property
to the County for a price of $100 and will convey the Property to the County by means of a General
Warranty Deed substantially in the form thereof attached hereto as Exhibit A (the “General
Warranty Deed”).
Section 2. Lease of Property to Board of Education. Upon the conveyance of the
Property to the County by the Board of Education, the County will lease the Property to the Board
of Education for use by the Person County Schools pursuant to a Lease to be entered into by the
County and the Board of Education dated May 10, 2018 (the “Lease”).
Section 3. Acquisition, Construction, Installation and Financing of School Project.
The County (a) will acquire the Property from the Board of Education in accordance with Section
1 above, (b) will lease the Property to the Board of Education in accordance with Section 2 above
and (c) together with the Board of Education will provide for the acquisition, construction and
installation of the School Project as hereinafter provided.
The County will also finance a part of the Cost of the Project pursuant to Section 160A-20
of the General Statutes of North Carolina, as amended, by entering into an Installment Financing
Contract with Branch Banking and Trust Company (the “Bank”), dated May 10, 2018 (the
“Installment Financing Contract”), and a Project Fund Agreement with the Bank, dated May 10,
2018 (the “Project Fund Agreement”). The County will execute and deliver to a trustee for the
benefit of the Bank a Deed of Trust and Security Agreement, dated May 10, 2018 (the “Deed of
Trust”), which will encumber the Property and the improvements thereon and certain related
property to secure the County’s obligation to repay the amount advanced to it pursuant to the
Installment Financing Contract.
The Board of Education will be responsible for and enter into contracts for the work
constituting the School Project. In order to enable the Board of Education to carry out the County’s
obligations under the Installment Financing Contract with respect to the work for which the Board
of Education will be responsible under this Agreement, the County hereby transfers its rights under
the Installment Financing Contract regarding such obligations to the Board of Education. The
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Board of Education will cause the School Project to be completed on or before the date set forth
in the construction documents and otherwise in accordance with the construction documents and
the Installment Financing Contract and any applicable requirements of governmental authorities
and law.
Section 4. Indemnification. To the extent permitted by law, the Board of Education
shall 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 acquisition, construction and
installation of the School Project; provided, however, that the Board of Education shall not be
obligated to pay the Installment Payments pursuant to the Installment Financing Contract or to
indemnify any party to the Installment Financing Contract for any third-party claims asserted
against any such party relating to the payment of such Installment Payments and that the right to
indemnification shall not apply to losses arising from any action taken by the County. The Board
of Education shall be notified promptly by the County of any action or proceeding brought in
connection with any such claims arising from the acquisition, construction and installation of the
School Project.
Section 5. Description of School Project; Additional Improvements. The Board of
Education shall have the right to make any changes in the description of the School Project or of
any component or components thereof; provided, however, that the Board of Education shall first
notify the County Manager of the County (the “County Manager”) or his designee of any change
that is expected to cost more than $50,000, and, further, that any increase in the cost of the School
Project resulting from any change shall, to the extent the increased cost exceeds the funds in the
Project Fund available therefor, be payable solely from other funds of the Board of Education. In
addition, any such change must be in accordance with Section 5.1 of the Installment Financing
Contract.
The Board of Education shall have the right, in its sole discretion and at its own expense,
to acquire, construct and install real property improvements or items of equipment or other
personal property other than the School Project in or upon any portion of the Leased Property (as
defined in the Lease) that do not materially impair the effective use or materially decrease the
value of the Leased Property, as provided in Section 7.2 of the Lease.
Section 6. Construction Conferences. The Board of Education hereby agrees that it
will, upon the request of the County Manager, provide to the County Manager or his designee
timely notice of all conferences with representatives of the architects, contractors and vendors with
respect to the School Project and that the County Manager or his designee shall have the right to
attend all such conferences.
Section 7. Compliance with Installment Financing Contract and Deed of Trust. The
Board of Education agrees that, except as otherwise provided in this Agreement or in the Lease, it
will, and the County specifically authorizes it to, faithfully discharge all duties imposed on the
County by the Installment Financing Contract and the Deed of Trust with respect to the acquisition,
construction and installation of the School Project and the operation, maintenance and insuring of
the Mortgaged Property (as defined in the Installment Financing Contract) and the Premises (as
defined in the Deed of Trust).
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Section 8. Compliance with Requisition Procedure. The Board of Education agrees
that it will assist the County to comply with the requisition procedure for the payment of each Cost
of the Project relating to the School Project as provided in the Installment Financing Contract and
the Project Fund Agreement.
Section 9. Disclaimers of the County. The Board of Education acknowledges and
agrees that the design of the School Project has not been made by the County, that the County has
not supplied any plans or specifications with respect thereto and that the County (a) is not a
manufacturer of, or a dealer in, any of the component parts of the School Project or similar projects,
(b) has not made any recommendation, given any advice or taken any other action with respect to
(i) the choice of any supplier, vendor or designer of, or any other contractor with respect to, the
School Project or any component part thereof or any property or rights relating thereto, or (ii) any
action taken or to be taken with respect to the School Project or any component part thereof or any
property or rights relating thereto at any stage of the construction thereof, (c) has not at any time
had physical possession of the School Project or any component part thereof or made any
inspection thereof or any property or rights relating thereto, and (d) has not made any warranty or
other representation, express or implied, that the School Project or any component part thereof or
any property or rights relating thereto (i) will not result in or cause injury or damage to persons or
property, (ii) has been or will be properly designed or constructed or will accomplish the results
which the Board of Education intends therefor, or (iii) is safe in any manner or respect.
The County makes no express or implied warranty or representation of any kind
whatsoever with respect to the School Project or any component part thereof to the Board of
Education or any other circumstance whatsoever with respect thereto, including but not limited to
any warranty or representation with respect to the merchantability or the fitness or suitability
thereof for any purpose; the design or condition thereof; the safety, workmanship, quality or
capacity thereof; compliance thereof with the requirements of any law, rule, specification or
contract pertaining thereto; any latent defect; the ability thereof to perform any function; that the
funds advanced by the Bank pursuant to the Installment Financing Contract will be sufficient
(together with any other available funds of the County or the Board of Education) to pay the cost
of the School Project; or any other characteristic of the School Project; it being agreed that all risks
relating to the School Project, the completion thereof or the transactions contemplated hereby or
by the Installment Financing Contract are to be borne by the Board of Education, and the benefits
of any and all implied warranties and representations of the County are hereby waived by the Board
of Education.
Section 10. Acknowledgment of Authority of Board of Education. The parties
acknowledge that this Agreement is not intended in any way to diminish the Board of Education’s
authority to select school sites, choose the building design, construct school buildings and establish
the school program for the Person County Schools.
Section 11. Amendments and Further Instruments. The County and the Board of
Education may, from time to time, with the written consent of the Bank, execute and deliver such
amendments to this Agreement and such further instruments as may be required or desired for
carrying out the expressed intention of this Agreement.
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Section 12. Agreement to Survive Termination of Installment Financing Contract.
Notwithstanding anything to the contrary contained herein, the obligations undertaken by the
Board of Education hereunder shall survive the termination of the Installment Financing Contract.
IN WITNESS WHEREOF, the parties hereto have executed and attested this Agreement
by their officers thereunto duly authorized as of the day and year first written above.
THE PERSON COUNTY BOARD OF
EDUCATION
By: ____________________________________
Dr. Kay Allen
Chair Person of the Board of Education
[SEAL]
Attest:
_____________________________
Dr. Rodney Peterson
Secretary of the Board of Education
This instrument has been pre-audited in the manner required by The School Budget and
Fiscal Control Act.
Julie H. Masten
Finance Officer of the Board of Education
[Signatures Continued on Following Page.]
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[Counterpart Signature Page to the Agreement Concerning Various School Improvements, dated
May 10, 2018, between The Person County Board of Education and the County of Person, North
Carolina]
COUNTY OF PERSON, NORTH CAROLINA
By: ____________________________________
Tracey L. Kendrick
Chairman of the Board of Commissioners
for the County
[SEAL]
Attest:
_____________________________
Brenda B. Reaves
Clerk to the Board of
Commissioners for the County
This instrument has been pre-audited in the manner required by The Local Government
Budget and Fiscal Control Act.
Amy Wehrenberg
Finance Director of the County
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EXHIBIT A
GENERAL WARRANTY DEED
183
AGENDA ABSTRACT
Meeting date:
April 23, 2018
Agenda Title:
Additional audit services required by the Office of the State Auditor for the FY
2017-18 reporting period
Summary of Information:
Due to recent changes in Uniform Guidance and Audit Reporting, the State of
North Carolina is now required to report information related to certain federal
expenditures that counties are not required to show in the Single Audit section of
their financial reports. The Office of the State Auditor is passing on the task of
collecting this information to counties, since there is no other more efficient way
for the State to obtain this information. Our auditors, Elliot Davis, PLLC, have
agreed to take on the additional work as part of their audit for FY 2017-18. The
fee for the additional work is $10,500, and will be added to the FY 2018-19
County Manager’s Recommended Budget for the Finance Department.
Attached is the memo from the Office of the State Comptroller requesting the
additional information, as well as the auditor’s engagement letter describing the
services they will provide in order to meet the request.
Recommended Action:
Approve the engagement letter with Elliott Davis, PLLC to comply with
additional mandated reporting required by the Office of the State Auditor for the
fiscal year report ending June 30, 2018.
Submitted By:
Amy Wehrenberg, Finance Director
184
185
186
187
AGENDA ABSTRACT
Meeting date: April 23, 2018
Agenda Title: Recommended Capital Improvement Plan (CIP) for Fiscal Years 2019-
2023
Summary of Information: Discussion and approval of the Recommended 5-year Capital
Improvement Plan that was presented to the Person County Board of Commissioners on
April 9, 2018.
The adoption of this CIP will allocate funding for the priority projects for the County,
Person County Schools, and Piedmont Community College for FY 2018-2019. The
document also sets the priorities of the projects for future fiscal years, although funding is
only appropriated on an annual basis and the plan is reviewed annually. The total amount
proposed for FY19 is $7.3M, of which $4.4M is financed primarily for Public Safety
Communication System upgrades and various School related projects. Other projects
total $2.9M funded through pay-as-you-go appropriations.
Recommended Action: Direct staff on any changes to the document and then adopt the
Capital Improvement Plan.
Submitted By: Heidi York, County Manager and Amy Wehrenberg, Finance Director
188
Person County, North Carolina Person County
Capital Improvement Plan
FY 2019-2023
Recommended
Heidi York, County Manager
Sybil Tate, Assistant County Manager
Amy Wehrenberg, Finance Director
April 9, 2018
189
Person County, North Carolina
Capital Improvement Plan
Table of Contents
Manager’s Letter to the Board of Commissioners ............................................ 1-2
Objectives and Procedures for the CIP ................................................................. 3
Criteria for Project Priority ..................................................................................... 4
Completed and Ongoing Projects ..................................................................... 5-6
Recommended Projects .................................................................................... 7-8
Projects Not Recommended ................................................................................. 9
Funding Schedule ......................................................................................... 10-13
Set Aside Funds for Future Years ....................................................................... 14
Graph-Revenue Sources ..................................................................................... 15
Graph-Projects by Function ................................................................................. 16
Graph-Projects by Type ...................................................................................... 17
Person County’s Debt Service ...................................................................... 18-20
Future Debt Service Payments ........................................................................... 21
190
PERSON COUNTY
OFFICE OF THE COUNTY MANAGER
304 South Morgan Street, Room 212
Roxboro, NC 27573-5245
336-597-1720
Fax 336-599-1609
April 9, 2018
Dear Person County Board of Commissioners:
I am pleased to present Person County’s Fiscal Years 2019-2023 Capital Improvement Plan (CIP). The
CIP is an important planning tool for our County and is intended to reflect the Board of County
Commissioners’ priorities for capital needs and spending over the next five years. In addition to projects
for Person County Government, this plan also incorporates the needs of our partner agencies- including
Person County Schools and Piedmont Community College (PCC) - given that counties are statutorily
responsible for the provision of educational facilities. We also include capital needs for two outside
agencies for which the County owns the buildings: the Person County Museum of History and the Person
County Senior Center, however there are no identified needs for either entity in this proposed CIP. The
County has taken a proactive approach in managing both the costs and timing of maintenance projects;
namely roofs and windows through implementation of a comprehensive roofing assessment for all county
buildings and schools as well as a windows replacement plan for Person County Schools.
The development of this plan takes into account many factors including the current economic and fiscal
climate, logistical and financial constraints, as well as competing demands and priorities for county funds.
The most critical capital needs are those that address a life-safety issue. Once those needs are identified,
we work towards a balance of needs and priorities within our logistical and financial constraints. This plan
identifies the anticipated funding sources needed to meet these priorities. Although the projects in this plan
span the next five years, the fiscal impacts extend far beyond. Projects that are financed incur debt service
payments typically over a fifteen to twenty year period. Therefore, the full array of funding sources needed
to support the projects as well as potential impacts to future operating budgets are also presented. The
Board of Commissioners reviews the five year CIP every year, but only funds the projects on an annual
fiscal year basis.
For the current Fiscal Year 2017-2018, spending for capital projects was scaled back ($2M) to adjust for
the large appropriation made the previous fiscal year ($8.5M). The County’s first phase of our Fiber
Construction Project was the largest project funded which included engineering, construction, and
consulting fees ($902,892). For the upcoming Fiscal Year 2018-2019, spending is increasing significantly
to include a large financing for the Public Safety Communication Towers and related equipment, as well as
additional capital needs for Person County Schools. The total amount recommended for capital projects
next year is $7.3M.
The financing mentioned above has already been approved by the Board of Commissioners and will
provide $4.4M in debt proceeds to fund Public Safety Communication Tower Construction ($739,938);
reimbursement of VIPER Radio Units for Volunteer Fire Departments and other public safety officers
($951,765); VHF Equipment ($1,174,459); Planning & Consulting ($199,197); Administration & Issuance
Costs of ($69,536); HVAC System at Huck Sansbury Gym ($95,000); South Elementary- valve
replacement ($180,000); Northern Middle School fire alarm upgrade ($151,710); Stories Creek
Elementary- cooling tower replacement ($110,000); Helena Elementary- cooling tower replacement
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($110,000); Early Intervention- new roof ($207,000); and Northern Middle School HVAC rooftop units
($411,395).
Other projects recommended to be funded for FY19 total $2.9M all of which will be funded through pay-
as-you-go funding, rather than financings. Projects recommended to be funded next Fiscal Year include the
first phase of a County Information Technology Server Expansion ($83,000); New Roof at Bushy Fork
($52,523); Elevator Update at the Person County Office Building ($86,015); $100,000 in contingency
funding to support the Public Safety Communication Towers project; the second phase of the County’s
Fiber Project ($1,451,566); Seating Replacement at the Kirby Auditorium ($110,273); and Bleacher
Replacement at Huck Sansbury ball parks ($70,000). For Piedmont Community College, I am
recommending $422,479 to fund the Replacement of their Main Power Switch ($113,450); New Telephone
System ($72,649); AC Unit and Generator for their Computer Server Room ($74,640); and the first
payment of five on a POD Building for the Early College ($161,740/ total cost over five years $473,752).
There are two additional county projects that are funded outside of the General Fund: Library Renovations
for $136,329 which will be paid through the Library Development Trust Fund and then implementation of
required Stormwater Best Management Practices which will be funded through the County’s collected
Stormwater Fees in the amount of $230,000.
An important element of this CIP is the debt analysis summary and the table and graph showing the future
debt service levels for Person County Government. Comparing Person County’s debt service levels to
counties benchmarked with our population size indicate that our debt ratio is below average. The
spreadsheets and graph illustrate Person County’s ability to take on additional debt payments in the future.
Debt Service is estimated to minimally increase by $42,438 for FY19; however, Person County’s Public
Safety Communication System & Various Improvements Project will add over $5.5M in outstanding debt,
resulting in a 42% increase over the current year’s outstanding debt total. Although this seems like a large
increase in our debt levels, the incorporation of debt for these projects allows the County to also fund our
other capital needs on a pay-as-you-go basis. Person County will continue to evaluate financing as a viable
option for funding our capital needs, but will proceed with caution as we monitor the County’s dependence
on debt and rising interest rates in the future.
Please keep in mind that this Capital Improvement Plan is just that- a plan- and while a great deal of effort
and analysis have gone into this, it offers a starting point for annual comparisons, fiscal changes,
unforeseen needs, and a place where public discussion can begin. The CIP will continue to be reviewed
throughout the year, presenting any recommended changes to the Board for consideration. This review is
critical as new information about our capital needs, our fiscal health, financing tools, and existing project
scheduling arises.
Person County Government takes great care and pride in being fiscally responsible. This CIP demonstrates
our commitment to provide not only sustainable infrastructure, but improvements and enhancements to our
community and quality of life. County staff looks forward to working with the Board of County
Commissioners and our community partners as we implement the Fiscal Year 2019-2023 Capital
Improvement Plan.
Sincerely,
Heidi N. York
County Manager
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Person County, North Carolina
Capital Improvement Plan
Objectives of a CIP:
Create a plan to organize long term capital needs in a manner to promote
discussion regarding priority, feasibility, timing, potential costs, financing options
and future budgetary effect.
Limit projects to those costing $50,000 and over in the plan.
Present an overview of requests submitted by Person County departments,
Piedmont Community College and Public Schools.
Facilitate the exchange of information and coordination between the County, the
community college and the schools on capital planning.
Steps in developing a CIP:
Determine capital needs for all departments and certain County-funded agencies.
Review priorities and assess proposed capital projects in relationship to these
priorities.
Make recommendations to the Board of County Commissioners on a project’s
timing, priority and possible financing options.
Categories of projects:
Person County Government
Piedmont Community College
Public Schools
Each project includes a description, a timeline for construction and operating
costs, and the current status.
Also included are graphs that summarize revenue sources, projects by function,
projects by type, and outstanding debt.
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Person County, North Carolina
Capital Improvement Plan
Criteria in determining project status:
Safety
Is public health or safety a critical factor with regard to this project?
What are the consequences if not approved?
Mandate
Is the project required by legal mandates?
Is the project needed to bring the County into compliance with any laws or
regulations?
Timing and Linkages
What is the relationship to other projects, either ongoing or requested?
Does the project relate to a County-adopted plan or policy?
Economic Impact
Will this project promote economic development or otherwise raise the standard
of living for our citizens?
Efficiencies
Will this project increase productivity or service quality, or respond to a demand
for service?
Are there any project alternatives?
Service Impact
Will this project provide a critical service or improve the quality of life for our
citizens?
How will this project improve services to citizens and other service clients?
How would delays in starting the project affect County services?
Operating Budget Impact
What is the possibility of cost escalation over time?
Will this project reduce annual operating costs in some manner?
What would be the impact upon the annual operating budget and future operating
budgets?
Debt Management
What types of funding sources are available?
How reliable is the funding source recommended for the project?
How would any proposed debt impact the County’s debt capacity?
Does the timing of the proposed construction correspond to the availability of
funding?
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Person County, North Carolina
Capital Improvement Plan
Completed Projects
Person County Government:
Roof Replacement – General Services Maintenance ($35,537)
Roof Replacement – Airport Terminal ($40,770)
Install A/C – Animal Services ($82,500)
Senior Center Project ($2,285,000)
Roxplex & Roofing Projects ($1,884,000)
Relocate IT Dept ($97,000)
Boiler Replacement (LEC)- $85,000
Piedmont Community College
Upgrade Campus HVAC ($72,000)
Emergency Communication System ($117,000)
Public Schools
Roof Replacement – North End Elementary ($223,925)
Chiller Replacement - PHS ($300,000)
Repave Bus Lot – Person High School ($90,000)
ADA Upgrades – Oak Lane Elementary ($75,000)
Ongoing Projects
Person County Government:
Roof Replacements – Allensville, Helena, Hurdle Mills ($114,582) – Allensville is
complete. Helena and Hurdle Mills are bid out and construction will begin in March.
Anticipating completion prior to July 2018.
Tax Appraisal Software ($750,000) – This final price of this project is $250,000. The
Tax Office is testing the new software and plans to fully implement in FY19.
Public Safety Towers ($3,134,895) -Construction of the Bushy Fork and Bethel Hill
towers will be completed by May 2018. Installation of equipment should be complete by
the end of 2018. Final connection to the fiber system is estimated to be complete by
Feb. 2020.
Wireless Broadband Project ($250,000) – Wireless installation on Mt. Tirzah tower is
complete. Woodland tower installation will begin in March. Installation on Bethel Hill and
Bushy Fork towers should be complete by Dec. 2018.
PCRC & Roofing Projects ($2,360,000) – Roof is complete. Sprinkler system is 80%
complete; bathrooms will begin in April with completion estimated to be by July 1, 2018.
If additional funds remain, the parking lot will be paved.
Courthouse- new roof ($120,741) – Engineering is complete, due to be bid out in April.
Estimated completion date August 2018.
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Fiber Project ($3,076,106) - The contract is complete and equipment staging is taking
place. The ground breaking ceremony is being scheduled. Estimated completion date is
Dec. 2020.
Piedmont Community College:
New Roof- Bldg. D ($183,297) - Engineering is complete and due to be bid out in April.
Estimated completion is August 2018.
Acoustical Ceiling – Bldg. S ($60,000) - PCC is reviewing the Information for Bid (IFB)
from NC State Purchase and Contract and will determine the final date for the site visit.
Public Schools:
ADA Upgrades – North Elementary ($150,000) -This project has been put on hold
pending completion of the Facility Study audit.
New roof- School Maintenance – ($202,893)- Bid complete in March and construction
to begin in April. Completion estimated before July 1, 2018.
Facilities and Use Audit ($120,000)- Preliminary findings from this report will be
presented to the BOE in March. The final report should be available before July 2018.
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Person County
Capital Improvement Plan
FY 2019-2023
Recommended Projects
YEAR DEPT PROJECT TITLE
TOTAL
COST PROJECT DESCRIPTION AND JUSTIFICATION
2019 IT Server Expansion 83,000
Purchase and install two additional servers to improve resiliency
of IT systems. Spans 2 years for a total cost of $167,400.
General Services New roof- Bushy Fork 52,523 As recommended in the Roofing Study.
General Services PCOB elevator modernization 86,015
Replace elevator as the existing elevator manufacturer is no
longer in existence and parts are no longer made.
Parks and Rec Huck Sansbury- HVAC system 95,000
Replace HVAC system in Huck Sansbury. Existing system is
deteriorating and has had significant maintenance issues.
Emergency
Management
Public Safety Communication System
upgrade 3,234,895
Construct two public safety towers and hang new communication
equipment. Purchase VIPER radios for public safety
departments.
Economic Dev. Fiber project 1,451,566
Construction costs for installation of 50+ miles of fiber to County
facilities. Total cost is $3M over three years.
Parks and Rec Kirby Auditorium- new seating 110,273
Replacement Lower Seating at Kirby Theater. Replacement parts
are no longer available and seating has become a safety hazard.
Parks and Rec Huck Sansbury bleacher replacement 70,000
Install new bleachers with safety features, such as hand rails and
walkways.
Public Library Library Renovations 136,329
Install new carpet, ceiling, and paint. Remodel bathrooms,
purchase a 3D printer and new gallery furniture.
Stormwater Stormwater BMP 230,000
As required by State regulations to improve water quality, the
County must implement projects that reduce pollution from
stormwater runoff. The consultant is studying potential projects
and identifying sites. At this time, the total estimated cost is
$3.8M; however, this amount and the timeline for implementation
may vary greatly and depend upon decisions made at the State-
level.
PCC Main Power Switch Replacement 113,450
Existing switch is outdated and replacement parts are
unavailable.
PCC New Telephone System 72,649
Current system has been discontinued and is unreliable. Total
project cost is 165,452 and spans three years.
PCC Early College- POD bldg 161,740
Construct a new building for the PECIL program. This building
will be leased over 4 years for a total cost of $473,752.
PCC
Computer server room-AC unit and
generator 74,640
Improved air flow is needed to safely house existing servers. A
generator is needed to provide backup in the event of an outage.
Public Schools Valve replacement- South Elementary 180,000
Existing valves do not open and close properly, making cooling
inefficient.
Public Schools Northern Middle- fire alarm upgrade 151,710
Replace the fire alarm system. Existing system does not meet
current standards.
Public Schools
Stories Creek Elem.- cooling tower
replacement 110,000
The tower is corroding and rusting out. Many leaks have occurred
which affects the proper operation of the cooling system for the
school.
Public Schools Helena Elem.- cooling tower replacement 110,000
The tower is corroding and rusting out. Many leaks have occurred
which affects the proper operation of the cooling system for the
school.
Public Schools New roof- Early Intervention 207,000 As recommended in the Roofing Study.
Public Schools Northern Middle-HVAC rooftop units 411,395 Existing HVAC system is beyond its useful life.
2020 IT Server Expansion 84,400
Purchase and install two additional servers to improve resiliency
of IT systems. Spans 2 years for a total cost of $167,400.
General Services New Roof- EMS- Barden Street 152,395 As recommended in the Roofing Study.
General Services New roof- EMS-Helena 105,500 As recommended in the Roofing Study.
Economic Dev. Fiber project 721,648
Construction costs for installation of 50+ miles of fiber to County
facilities. Total cost is $3M over three years.
Parks and Rec Bushy Fork light replacement 57,739
Ball field lights are old and use outdated technology. Replace
with safer and brighter lighting.
Parks and Rec Athletic field light and pole upgrades 50,000 Ball field lights are 25+ years old and need to be upgraded.
Airport New hangar 200,000
Total cost is $800,000. $200K annual set-aside in the CIP for 4
years with construction in FY2023.
Page 7
197
Person County
Capital Improvement Plan
FY 2019-2023
Recommended Projects
YEAR DEPT PROJECT TITLE
TOTAL
COST PROJECT DESCRIPTION AND JUSTIFICATION
Stormwater Stormwater BMP 1,785,000
As required by State regulations to improve water quality, the
County must implement projects that reduce pollution from
stormwater runoff. The consultant is studying potential projects
and identifying sites. At this time, the total estimated cost is
$3.8M; however, this amount and the timeline for implementation
may vary greatly and depend upon decisions made at the State-
level.
PCC New Telephone System 46,402
Current system has been discontinued and is unreliable. Total
project cost is 165,452 and spans three years.
PCC Early College- POD bldg 78,003
Construct a new building for the PECIL program. This building
will be leased over 4 years for a total cost of $473,752.
PCC New Roof- Covered walkways 52,146 As recommended in the Roofing Study.
PCC New Roof- Bldg. L 117,414 As recommended in the Roofing Study.
PCC Building S- Generator 73,000
Purchase a generator to provide back up power in the event of a
crisis.
Public Schools Southern Middle -fire alarm system 160,000
Replace the fire alarm system. Existing system does not meet
current standards.
Public Schools Woodland Elem.- window replacement 313,500 As recommended in the Window Replacement Study.
2021 General Services New roof- Library 79,003 As recommended in the Roofing Study.
General Services New roof- Grounds Maintenance 82,994 As recommended in the Roofing Study.
General Services New Roof- Helena Gym 206,934 As recommended in the Roofing Study.
General Services New roof- Animal Services complex 190,537 As recommended in the Roofing Study.
General Services New roof- Mayo Park 96,482 As recommended in the Roofing Study.
Parks and Rec Athletic field light and pole upgrades 49,500 Ball field lights are 25+ years old and need to be upgraded.
Airport New hangar 200,000
Total cost is $800,000. $200K annual set-aside in the CIP for 4
years with construction in FY2023.
Stormwater Stormwater BMP 1,785,000
As required by State regulations to improve water quality, the
County must implement projects that reduce pollution from
stormwater runoff. The consultant is studying potential projects
and identifying sites. At this time, the total estimated cost is
$3.8M; however, this amount and the timeline for implementation
may vary greatly and depend upon decisions made at the State-
level.
PCC New Telephone System 46,401
Current system has been discontinued and is unreliable. Total
project cost is 165,452 and spans three years.
PCC Early College- POD bldg 78,003
Construct a new building for the PECIL program. This building
will be leased over 4 years for a total cost of $473,752.
Public Schools New Roof- Southern Middle- outside bldgs.152,889 As recommended in the Roofing Study.
2022 General Services New roof -Elections/IT 113,155 As recommended in the Roofing Study.
General Services New roof- Inspections 107,969 As recommended in the Roofing Study.
Parks and Rec Athletic field light and pole upgrades 55,000 Ball field lights are 25+ years old and need to be upgraded.
Airport New hangar 200,000
Total cost is $800,000. $200K annual set-aside in the CIP for
four years with construction in FY2023.
PCC Early College- POD bldg 78,003
Construct a new building for the PECIL program. This building
will be leased over 4 years for a total cost of $473,752.
PCC Chiller units 500,000
Two chillers need to be replaced as existing system is at the end
of its useful life.
Public Schools New Roof- North End Elem.119,315 As recommended in the Roofing Study.
2023 General Services New roof - Inspections 104,448 As recommended in the Roofing Study.
Rec, Arts & Parks Athletic field light and pole upgrades 52,000 Ball field lights are 25+ years old and need to be upgraded.
Airport New hangar 200,000
Total cost is $800,000. $200K annual set-aside in the CIP for 4
years with construction in FY2023.
Page 8
198
Person County
Capital Improvement Plan
FY 2019-2023
Projects Not Recommended
DEPT PROJECT TITLE
TOTAL
COST
PROJECT DESCRIPTION/REASON FOR NOT
RECOMMENDING
Public Schools Earl Bradsher painting 60,000
Waiting on results from feasibility study to determine when to
request for this to be completed. Schools considered this to
be a lower priority compared to their other requests.
Page 9
199
Person County
Capital Improvement Plan (CIP)
2019-23
Recommended - Funding Schedule
Revenues:
General Fund Contribution 1,681,353 2,105,856 2,052,147 1,432,743 1,398,442 906,126 9,576,667
CIP Project Fund Balance 220,000 330,000 160,000 - 250,000 475,000 1,435,000
PARTF Grant 135,470 - - - - - 135,470
Library Development Trust Fund - 136,329 - - - - 136,329
Stormwater Fees - 230,000 1,785,000 1,785,000 - - 3,800,000
Public Safety Comm System, County &
School Building Improvements-Fund
Balance - 100,000 - - - - 100,000
Debt Proceeds - Public Safety Comm
System, County & School Building
Improvements - 4,400,000 - - - - 4,400,000
Total Sources of Revenue:2,036,823 7,302,185 3,997,147 3,217,743 1,648,442 1,381,126 19,583,466
Project Costs for County:
Current
Year
2017-18
Planning
Year
2018-19
Planning
Year
2019-20
Planning
Year
2020-21
Planning
Year
2021-22
Planning
Year
2022-23
TOTAL
PROJECT
COSTS
Information Technology:
Relocate IT department 97,000 -- -- - 97,000
Server Expansion - 83,000 84,400 -- - 167,400
Tax Office:
Appraisals and Collections software 50,000 -- -- - 50,000
General Services:
Boiler Replacement- LEC 85,000 -- -- - 85,000
New Roof - Courthouse 120,741 -- -- - 120,741
New Roof - Bushy Fork - 52,523 - -- - 52,523
PCOB elevator modernization - 86,015 - -- - 86,015
HVAC System - Huck Sansbury Gym - 95,000 - -- - 95,000
New Roof - EMS- Barden Street - -152,395 -- - 152,395
New Roof - EMS- Helena - -105,500 -- - 105,500
New Roof - Library - -- 79,003 - - 79,003
New Roof - Grounds Maintenance - -- 82,994 - - 82,994
New Roof - Helena Gym - -- 206,934 - - 206,934
New Roof - Animal Services complex - -- 190,537 - - 190,537
New Roof - Mayo Park - -- 96,482 - - 96,482
New Roof - Elections/IT - -- - 113,155 - 113,155
New Roof- Inspections - -- - 107,969 104,448 212,417
Emergency Management Services:
Public Safety Communication System
Upgrade
Tower Construction - 739,938 - -- - 739,938
VIPER Radio Units - 951,765 - -- - 951,765
VHF Equipment - 1,174,459 - -- - 1,174,459
Planning & Consulting - 199,197 - -- - 199,197
Administration Expenses - 500 - -- - 500
Issuance Costs - 69,036 - -- - 69,036
Contingency Funding - 100,000 - -- - 100,000
Sources of Revenue:
Current
Year
2017-18
Planning
Year
2018-19
Planning
Year
2019-20
Planning
Year
2020-21
Planning
Year
2022-23
TOTAL
REVENUE
SOURCES
Planning
Year
2021-22
Page 10
200
Person County
Capital Improvement Plan (CIP)
2019-23
Recommended - Funding Schedule
Economic Development
Fiber project
Engineering 284,755 474,661 233,788 -- - 993,204
Construction 604,937 963,705 474,660 -- - 2,043,302
Consulting 13,200 13,200 13,200 -- - 39,600
Recreation, Arts & Parks:
Kirby Auditorium - seating
replacements - 110,273 - -- - 110,273
Huck Sansbury bleachers replacement - 70,000 - -- - 70,000
Bushy Fork light replacement - - 57,739 -- - 57,739
Athletic fields- light replacement - - 50,000 49,500 55,000 52,000 206,500
Airport Construction Projects:
Additional airport hangar construction - -200,000 200,000 200,000 200,000 800,000
Public Library:
Library Renovations - 136,329 - -- - 136,329
Stormwater:
Stormwater BMP - 230,000 1,785,000 1,785,000 - - 3,800,000
Set-asides for future projects 100,000 -- -- - 100,000
Total County Projects:1,355,633 5,549,601 3,156,682 2,690,450 476,124 356,448 13,584,938
Page 11
201
Person County
Capital Improvement Plan (CIP)
2019-23
Recommended - Funding Schedule
Project Costs for PCC:
Current
Year
2017-18
Planning
Year
2018-19
Planning
Year
2019-20
Planning
Year
2020-21
Planning
Year
2021-22
Planning
Year
2022-23
TOTAL
PROJECT
COSTS
Piedmont Community College (PCC):
Acoustical Ceiling 60,000 -- -- - 60,000
New roof - Building D 183,297 -- -- - 183,297
Main Power Switch Replacement - 113,450 - -- - 113,450
New Telephone System - 72,649 46,402 46,401 - - 165,452
Early College- POD Building - 161,740 78,003 78,003 78,003 78,003 473,752
Computer Server room- AC unit and
generator - 74,640 - -- - 74,640
New Roof-Covered Walkways - - 52,146 -- - 52,146
New Roof- Building L - -117,414 -- - 117,414
Building S- Generator - - 73,000 -- - 73,000
Chiller units - -- 500,000 - 500,000
Set-asides for future projects - -- 250,000 - - 250,000
Total PCC Projects:243,297 422,479 366,965 374,404 578,003 78,003 2,063,151
Project Costs for Public
Schools:
Current
Year
2017-18
Planning
Year
2018-19
Planning
Year
2019-20
Planning
Year
2020-21
Planning
Year
2021-22
Planning
Year
2022-23
TOTAL
PROJECT
COSTS
Public Schools:
New bleachers - NMS 85,000 -- -- - 85,000
New Roof-School Maintenance 202,893 -- -- - 202,893
Facilities and Use Audit 120,000 -- -- - 120,000
South Elementary - valve replacement - 180,000 - -- - 180,000
Northern Middle - fire alarm upgrade - 151,710 - -- - 151,710
Stories Creek Elementary - cooling tower
replacement - 110,000 - -- - 110,000
Helena Elementary - cooling tower
replacement - 110,000 - -- - 110,000
New Roof - Early Intervention - 207,000 - -- - 207,000
Northern Middle - HVAC rooftop units - 411,395 - -- - 411,395
Southern Middle-fire alarm upgrade - -160,000 -- - 160,000
Woodland Elementary - window
replacements - -313,500 -- - 313,500
New roof - Southern Middle - outside
buildings and canopies - -- 152,889 - - 152,889
New roof - North End Elementary - -- - 119,315 - 119,315
New roof - North Elementary - -- -- 946,675 946,675
Set-asides for future projects 30,000 160,000 - - 475,000 - 665,000
Total Public Schools Projects:437,893 1,330,105 473,500 152,889 594,315 946,675 3,935,377
Total Project Costs:2,036,823 7,302,185 3,997,147 3,217,743 1,648,442 1,381,126 19,583,466
Page 12
202
Person County
Capital Improvement Plan (CIP)
2019-23
Recommended - Funding Schedule
Sources of Revenue for
Operating Impact Costs:
Current
Year
2017-18
Planning
Year
2018-19
Planning
Year
2019-20
Planning
Year
2020-21
Planning
Year
2021-22
Planning
Year
2022-23
TOTAL
REVENUE
SOURCES
General Fund Revenues 8,322 323,577 465,075 593,020 578,980 659,408 2,628,382
Recycling sales (due to efficiency)- - 11,168 11,168 11,168 - 33,504
Recycling program service fees - - 17,920 44,800 44,800 - 107,520
Total Sources of Revenue for Operating
Impact Costs:8,322 323,577 494,163 648,988 634,948 659,408 2,769,406
Operating Impact Costs:
Current
Year
2017-18
Planning
Year
2018-19
Planning
Year
2019-20
Planning
Year
2020-21
Planning
Year
2021-22
Planning
Year
2022-23
TOTAL
PROJECT
COSTS
Tax Office: Appraisals and Collections
software -
New maintenance contract 8,322 8,322 8,322 8,322 8,322 8,322 49,932
Fiber Maintenance -
Maintenance and Repair - 13,066 13,066 13,066 13,066 13,066 65,330
Equipment and Warranty - 32,200 41,500 5,100 5,100 5,100 89,000
Pole Rental - 1,500 1,500 1,500 1,500 1,500 7,500
Public Safety & Broadband Towers
Project -
Debt Service payments - 250,389 349,175 540,400 526,360 512,320 2,178,644
Lights maintenance - 12,000 12,000 12,000 12,000 12,000 60,000
Electricity & Fuel - 4,400 4,400 4,400 4,400 4,400 22,000
Insurance - 1,700 1,700 1,700 1,700 1,700 8,500
Airport Hanger Construction - - 1,500 1,500 1,500 - 4,500
PCC Telephone System
Maintenance upgrade - - - - - 40,000 40,000
PCC Early College- POD Building
Custodial employee - - 33,000 33,000 33,000 33,000 132,000
Maintenance and custodial supplies - - 8,000 8,000 8,000 8,000 32,000
Utilities - - 20,000 20,000 20,000 20,000 80,000
Total Operating Impact Costs:8,322 323,577 494,163 648,988 634,948 659,408 2,769,406
Note: Item highlighted below is a project associated with a proposed debt financing.
2018-19 Public Safety & Broadband Towers Project
The County is scheduled to enter into an installment purchase contract for $4.4M on May 10, 2018 to finance a portion of the
construction of two public safety communication towers and purchase and installation of related facilities and equipment,
rooftop HVAC units and fire alarm system replacements for Northern Middle School, installation of a new HVAC system for the
Huck Sansbury Gym, roofing replacement for Early Intervention and Family Services, cooling tower replacements for Helena
and Stories Creek Elementary Schools, and heating and cooling unit valve replacements at South Elementary School. These
costs are listed in Planning Year 2018-19 since the work for the majority of these projects will not begin until FY 2019.
Page 13
203
Set-Aside
Amount
Fiscal Year that
project is
recommended
to take place
Remaining
Cost
Current & Prior Years
Fiber Construction Project 130,000$ 2018-2019 2,043,214$
Planning Year 2018-2019
Southern Middle-Fire Alarm Upgrade 160,000$ 2019-2020 -$
Planning Year 2019-2020
(No set asides proposed in this year)-$
Planning Year 2020-2021
PCC-Chiller Units 250,000$ 2021-2022 250,000$
Planning Year 2021-2022
New Roof-North Elementary 475,000$ 2022-2023 471,675$
Planning Year 2022-2023
(No set asides proposed in this year) -$
Note: The County implements a best practice approach for distributing the costs of capital projects
to minimize the impact in any one fiscal year. This is accomplished by incrementally funding
expensive projects over multiple fiscal years. The projects listed below are funded through set-
aside funds leading up to the year in which the project will be completed, thus reducing the burden
in that year. This is a proactive approach to planning and funding future capital needs as well as
maximizing cash flow capacity.
Set-Aside Funds for Future Years
Page 14
204
Person County Capital Improvement Plan
Recommended - Revenue Sources
FY 2019 - 2023
Total % Revenue Sources
Description Current Year 2019 2020 2021 2022 2023 Totals % of Total
General Fund Contribution 1,681,353 2,105,856 2,052,147 1,432,743 1,398,442 906,126 9,576,667 48.9%
CIP Project Fund Balance 220,000 330,000 160,000 - 250,000 475,000 1,435,000 7.3%
PARTF Grant 135,470 - - - - - 135,470 0.7%
Library Development Trust
Fund - 136,329 - - - - 136,329 0.7%
Stormwater Fees - 230,000 1,785,000 1,785,000 - - 3,800,000 19.4%
Public Safety Comm
System, County & School
Building Improvements-
Fund Balance - 100,000 - - - - 100,000 0.5%
Debt Proceeds - Public
Safety Comm System,
County & School Building
Improvements - 4,400,000 - - - - 4,400,000 22.5%
Totals 2,036,823 7,302,185 3,997,147 3,217,743 1,648,442 1,381,126 19,583,466 100.0%
GF Fund
Balance
48.9%
CIP Project Fund
Balance
7.3%
PARTF Grant
0.7%
Library Dev. Trust
Fund
0.7%
Stormwater Fees
19.4%
Public Safety Comm
System, County &
School Building
Improvements-Fund
Balance
0.5%
Debt Proceeds
22.5%
Page 15
205
Person County Capital Improvement Plan
Recommended - by Function
FY 2019 - 2023
Total % CIP Projects by Function
Description Current Year 2019 2020 2021 2022 2023 Totals % of Total
General Government 352,741 316,538 342,295 655,950 221,124 104,448 1,993,096 10.2%
Public Safety - 3,234,895 - - - - 3,234,895 16.5%
Economic Development 1,032,892 1,451,566 721,648 - - - 3,206,106 16.4%
Environmental Protection - 230,000 1,785,000 1,785,000 - - 3,800,000 19.4%
Transportation - - 200,000 200,000 200,000 200,000 800,000 4.1%
Culture & Recreation - 316,602 107,739 49,500 55,000 52,000 580,841 3.0%
Education - PCC 243,297 422,479 366,965 374,404 578,003 78,003 2,063,151 10.5%
Education - Schools 407,893 1,330,105 473,500 152,889 594,315 946,675 3,905,377 19.9%
Totals 2,036,823 7,302,185 3,997,147 3,217,743 1,648,442 1,381,126 19,583,466 100.0%
General
Government
10.2%
Public Safety
16.5%
Economic Development
16.4%
Environmental
Protection
19.4%
Transportation
4.1%
Culture & Recreation
3.0%
Education
-PCC
10.5%
Education - Schools
19.9%
Page 16
206
Person County Capital Improvement Plan
Recommended - by Type
FY 2019 - 2023
Total % CIP Projects by Type
Description Current Year 2019 2020 2021 2022 2023 Totals % of Total
Other B&G Improvements 145,000 1,321,308 1,785,000 1,785,000 500,000 - 5,536,308 28.3%
Equipment Upgrades 135,000 3,442,986 471,541 95,901 55,000 52,000 4,252,428 21.7%
Roofing Replacements 506,931 259,523 427,455 808,839 340,439 1,051,123 3,394,310 17.3%
Infrastructure 604,937 963,705 474,660 - - - 2,043,302 10.4%
Planning & Consulting 417,955 856,594 246,988 - - - 1,521,537 7.8%
Construction/Renovation 97,000 298,069 278,003 278,003 278,003 278,003 1,507,081 7.7%
Set-Asides 130,000 160,000 - 250,000 475,000 - 1,015,000 5.2%
Window Replacements - - 313,500 - - - 313,500 1.6%
Totals 2,036,823 7,302,185 3,997,147 3,217,743 1,648,442 1,381,126 19,583,466 100.0%
145000
28.3%
21.7%
17.3%
10.4%
7.8%
7.7%
5.2%
1.6%
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0%
Other B&G Improvements
Equipment Upgrades
Roofing Replacements
Infrastructure
Planning & Consulting
Construction/Renovation
Set-Asides
Window Replacements
Page 17
207
Person County's Debt Service
Current Debt Service
Project
Description
Term
Int
Rate %
Outstanding
Balance
Last Pyt
Fiscal
Year
2006 Various
Roofing/Paving
Projects
Re‐roofing, paving and repaving
certain school, community college and
other public facilities; re‐floor the
gymnasium; construct new tennis
courts at Person High School.
15
years
3.86% 1,281,155 2021
2010
Courthouse
Renovation &
Various Roofing
(BAB’s)
Engineering and construction costs
associated with the renovation of the
Courthouse and some various re‐
roofing for certain school, community
college and other public facilities;
financed through Build America Bonds
(BAB’s) yielding a 35% refund of the
interest payments.
10
years
4.08% 795,900 2021
2012 SMS &
portion of PHS
Re‐roofing
(QSCB)
Re‐roofing construction for Southern
Middle School and a portion of Person
High School; financed through a
Qualified School Construction Bond
(QSCB) yielding a 100% refund of the
interest payments.
15
years
3.93% 2,373,785 2028
2015 Capital
Lease (Elections
Equipment)
Upgrade of voting equipment; financed
as a capital equipment lease for a 5
year term.
5
years
6.07% 98,485 2020
2015 PCRC &
Various Roofing
Projects
Purchase, renovation and re‐roofing of
the existing Person County Recycling
Facility, and re‐roofing construction for
the Kirby Civic Auditorium and Earl
Bradsher Preschool.
15
years
2.80% 1,721,900 2029
2016 Roxplex &
Various Roofing
Projects
Acquisition and improvements to
Roxplex property; re‐roofing
construction to Huck Sansbury, South
Elementary, Woodland Elementary,
and Oak Lane Elementary; window
replacements for North End
Elementary, and a chiller replacement
for Southern Middle School.
15
years
2.22% 1,662,084
2026
2016 Capital
Lease (E911
Radios and
Console
Furniture)
Replacement of radios and console
furniture designed and programmed
specifically for use by the E911
Communications Center.
5
years
7.186% 294,986 2020
2016 Capital
Lease (E911
Telephone
Equipment)
Upgrade of telephone equipment for
operations at E911 Communications
Center.
5
years
5.555% 238,348 2021
2017 Person
County Senior
Center Project
Acquisition and improvements of
existing facility (formerly “Total
Fitness Center”) to be future location of
Person County Senior Center.
5
years
5.555% 2,546,938 2032
TOTAL DEBT
SERVICE
OUTSTANDING
$11,013,581
Page 18
208
Current Debt Analysis
There are two standard ratios that measure debt service levels and the capacity for taking on additional debt. These
ratios and their meaning for Person County are described below:
Debt to Assets Ratio: Measures leverage, the extent to which total assets are financed with long-term debt. The
debt-to-assets ratio is calculated as long-term debt divided by total assets. A high debt to assets ratio may
indicate an over-reliance on debt for financing assets, and a low ratio may indicate a weak management of
reserves. At FY 2016, the debt to assets ratio for Person County was 13%, while other 20 counties with similar
populations show an average of 41%. Person County was the 5th highest county for the amount of total assets
reported in comparison to these other counties, but rated the 3rd lowest Debt to Assets Ratio, as well as the 6th
lowest long term debt amount. Results appear to indicate that Person County is minimally leveraged in debt
compared to the population group average. As displayed in the chart below, Person County's debt to assets ratio
has declined from 27% in FY 2013 to 14% in FY 2017. This reduction can likely be attributed to the addition of
school assets held as collateral for County financings in previous years that were added to the County’s asset
totals beginning in the financial report for FY2017. Auditors determined that these assets should be included on
the County’s Statement of Net Position since the properties belong to the County during the life of the debt. This
change causes Total Assets to sharply increase, resulting in a further reduced Debt to Assets Ratio. Another
variable causing this downward trend is the large $2M yearly pay down of the 2008 Refinanced Debt for the 1999
& 2000 Elementary School Construction and Law Enforcement Center debt (last payment made in FY 2015).
However, as interest rates are forecasted to increase, and new debt is issued, it is anticipated that this percentage
will level out and begin to climb. We begin to see that in FY 2017 where it increases by 1% from 13% to 14%.
The Senior Center financing in FY 2017 and the conveyance of several school properties back to the Public
Schools that were held as collateral for debt financings that had been paid off causes a slight increase in FY 2017
in the Debt to Assets Ratio. A gradual change or level
trend indicates to credit agencies a more strategic
approach to the management of the County’s assets.
Person County's
FY Debt to Assets Ratio
2013 27%
2014 21%
2015 15%
2016 13%
2017 14%
Debt Service Ratio: Measures financing obligations, provides feedback on service flexibility with the amount of
expenditures committed to annual debt service. The debt service ratio is calculated as annual debt service
divided by total expenses. General accounting guidance discourages this ratio from being higher than 15% for a
maximum benchmark. Any percentage higher than this can severely hamper the County's service flexibility.
Person County's debt service ratio dropped to 4% which is half of the population group’s ratio of 8% for FY 2016
(Person County's ratio holds at 4% for FY 2017). The large debt reduction in FY 2015 far exceeded the new debt
issued in fiscal years 2015-2017, causing a downward spike in the County’s outstanding debt. However, the new
debt for the Senior Center causes the debt service ratio to slightly increase in FY 2017, and is anticipated to
increase again in FY 2018 for the Public Safety Communication System Upgrade and County and School building
improvements. To what extent it rises depends on how much expenditures increase over the next two years. As it
stands now, Person County is in a favorable position to take on more debt if you compare the debt service ratio
levels to our peer counties. A consistent debt
ratio level indicates a stronger management of
financing resources in relation to the amount
that is available for other services.
Debt Service
FY 2016 Ratio
Person County 4%
Population Group 8%
Maximum Benchmark 15%
27%
21%
15%
13%14%
0%
5%
10%
15%
20%
25%
30%
2013 2014 2015 2016 2017
Page 19
209
Proposed Debt Service
There is one proposed financing for FY 2019 that is actually scheduled to close on May 10, 2018. The costs for these
projects are listed in Planning Year 2018-19 on the main funding grid since the work for the majority of these projects
will not begin until FY 2019. No other financings are proposed at this time for FY 2019-2023. The detail for these
projects are presented below:
Public Safety Communication System Upgrade and Various County and School Building
Improvements
The County is scheduled to enter into an installment purchase contract on May 10, 2018 to finance a portion
of the construction of two public safety communication towers and purchase and installation of related facilities
and equipment, rooftop HVAC units and fire alarm system replacements for Northern Middle School,
installation of a new HVAC system for the Huck Sansbury Gym, roofing replacement for Early Intervention and
Family Services, cooling tower replacements for Helena and Stories Creek Elementary Schools, and heating
and cooling unit valve replacements at South Elementary School. The total proposed debt amount for this
project is $4,400,000 and is comprised of the following:
Towers Construction (Bushy Fork and Bethel Hill)739,938
VIPER Radio Units 951,765
VHF Equipment 1,174,459
Planning & Consulting 199,197
Huck Sansbury Gym-HVAC 95,000
Northern Middle School Improvements:
Rooftop Units replacement 411,395
Fire Alarm replacements 151,710
Early Intervention & Family Services-roof replacement 207,000
Helena Elementary School-cooling tower replacement 110,000
Stories Creek Elementary School-cooling tower replacement 110,000
South Elementary School-valve replacement 180,000
Administration expenses 500
Issuance costs 69,036
Total Financing 4,400,000
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Future Debt Service Payments for Person County
Fiscal Year
Ending
June 30
2006
Various
roofing/paving
projects
2010
Courthouse
Renovation &
Various
Roofing
Projects
2012
School
Roofing
Projects for
SMS & PHS
(QSCB)
Capital
Equipment
Leases
2015
PCRC &
Various Roofing
Projects
2016
Roxplex &
Various Roofing
Projects
2017
Senior Center &
Various Roofing
Projects
Total Current
Debt Service
Year to Year
Change in
Current
Debt Service
2018 483,635 339,780 292,960 302,668 246,200 298,162 203,459 2,166,864 (53,920)
2019 442,471 327,540 284,753 302,668 141,300 252,612 207,569 1,958,912 (207,952)
2020 427,094 315,300 276,546 302,668 138,500 128,394 203,624 1,792,125 (166,787)
2021 411,591 153,060 268,338 26,483 135,700 205,730 199,678 1,400,580 (391,546)
2022 - -260,131 - 430,800 275,323 195,733 1,161,987 (238,593)
2023 - -251,924 - 221,000 310,457 191,787 975,168 (186,819)
2024 - -243,717 - 116,100 259,158 187,842 806,816 (168,352)
2025 - -235,509 - 113,300 154,163 183,897 686,868 (119,948)
2026 - -227,302 - 110,500 76,249 179,951 594,002 (92,866)
2027 - -219,095 - 107,700 - 176,006 502,801 (91,201)
2028 - -106,470 - 104,900 - 172,060 383,430 (119,370)
2029 - -- - 102,100 - 168,115 270,215 (113,215)
2030 - -- - - - 164,169 164,169 (106,045)
2031 - -- - - - 160,224 160,224 (3,945)
2032 - -- - - - 156,284 156,284 (3,940)
2033 - -- - - - - - (156,284)
Totals 1,764,790$ 1,135,680$ 2,666,745$ 934,487$ 1,968,100$ 1,960,246$ 2,750,398$ 13,180,446$ (2,220,784)$
Fiscal Year
Ending
June 30
Total Current
Debt Service
2018
Public Safety
Comm System
& Various
Improvements
Project Debt
Total
Proposed
Debt Service
Adjusted
Year to Year
Change with
Proposed
Debt Service
2018 2,166,864 - 2,166,864 (53,920)
2019 1,958,912 250,389 2,209,301 42,438
2020 1,792,125 349,175 2,141,300 (68,001)
2021 1,400,580 540,400 1,940,980 (200,321)
2022 1,161,987 526,360 1,688,347 (252,633)
2023 975,168 512,320 1,487,488 (200,859)
2024 806,816 498,280 1,305,096 (182,392)
2025 686,868 484,240 1,171,108 (133,988)
2026 594,002 470,200 1,064,202 (106,906)
2027 502,801 381,818 884,619 (179,583)
2028 383,430 370,411 753,841 (130,778)
2029 270,215 359,003 629,218 (124,623)
2030 164,169 347,596 511,765 (117,453)
2031 160,224 212,285 372,509 (139,256)
2032 156,284 106,143 262,426 (110,083)
2033 - 102,633 102,633 (159,794)
2034 - - - (102,633)
Totals 13,180,446$ 5,511,252$ 18,691,697$ (2,220,784)$
Above chart displays Person
County's debt service schedule. New debt for the Person County Senior Center in 2017 causes overall increase of $530K in total
outstanding debt from $12.6M to
$13.2M.
It is estimated that the Public Safety
Tower Project will cause total
outstanding debt to increase by
more than $5.5M (chart to the right). Actual debt is estimated to increase by $42,438 for FY19.
Graph below represents County's
outstanding debt service over 10
year period. Projection of $18.7M
at end of FY18 would be a 42%
increase over the prior year.
$22.9
$19.1
$20.7 $20.8
$16.7 $15.5
$13.7 $12.7 $13.2
$18.7
0.0
5.0
10.0
15.0
20.0
25.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 *
(Millions)
Fiscal Year End *(Estimate)
Outstanding Debt Service
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