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Home My WebLink AboutAgenda 2016 03-07AGENDA _ �3 '�.'IV r { NEW HANOVER COUNTY BOARD OF COMMISSIONERS Assembly Room, New Hanover County Historic Courthouse 24 North Third Street, Room 301 Wilmington, NC BETH DAWSON, CHAIRMAN - JONATHAN BARFIELD, JR., VICE - CHAIRMAN SKIP WATKINS, COMMISSIONER - WOODY WHITE, COMMISSIONER - ROB ZAPPLE, COMMISSIONER CHRIS COUDRIET, COUNTY MANAGER - WANDA COPLEY, COUNTY ATTORNEY - TERESA ELMORE, CLERK TO THE BOARD MARCH 7, 2016 4:00 PM MEETING CALLED TO ORDER (Chairman Beth Dawson) INVOCATION (Pastor Shawn Blackwelder, St. Paul's United Methodist Church) PLEDGE OF ALLEGIANCE (Commissioner Skip Watkins) APPROVAL OF CONSENT AGENDA CONSENT AGENDA ITEMS OF BUSINESS 1. Approval of Minutes 2. Approval of an Application for the Waiver of Landfill Tipping Fees for the Wilmington Housing Authority 3. Approval of New Hanover County Schools Budget Amendment #5 ESTIMATED REGULAR AGENDA ITEMS OF BUSINESS MINUTES 10 4. Consideration of the Board of Commissioners Providing for the Issuance of Not to Exceed $64,000,000 General Obligation Refunding Bonds 15 5. Discussion about County Child Care Subsidy Program PUBLIC COMMENTS ON NON - AGENDA ITEMS (limit three minutes) ESTIMATED ADDITIONAL AGENDA ITEMS OF BUSINESS MINUTES 10 6. Additional Items County Manager County Commissioners Clerk to the Board County Attorney 7. ADJOURN Note: Minutes listed for each item are estimated, and if a preceding item takes less time, the Board will move forward until the agenda is completed. Mission New Hanover County is committed to progressive public policy, superior Board of Commissioners - March 7, 2016 service, courteous contact, judicious exercise of authority, and sound fiscal management to meet the needs and concerns of our citizens today and tomorrow. Vision A vibrant prosperous, diverse coastal community, committed to building a sustainable future for generations to come. Core Values Integrity - Accountability - Professionalism - Innovation - Stewardship Board of Commissioners - March 7, 2016 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: March 7, 2016 CONSENT DEPARTMENT: Commissioners PRESENTER(S): Teresa Elmore, Clerk to the Board CONTACT(S): Teresa Elmore SUBJECT: Approval of Minutes BRIEF SUMMARY: Approve minutes from the following meetings: Agenda Review Meeting held on February 11, 2016 Regular Meeting held on February 15, 2016 STRATEGIC PLAN ALIGNMENT: Superior Public Health, Safety and Education • Keep the public informed on important information RECOMMENDED MOTION AND REQUESTED ACTIONS: Approve minutes. COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) COMMISSIONERS' ACTIONS: Approved 5 -0. Board of Commissioners - March 7, 2016 ITEM: 1 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: March 7, 2016 CONSENT DEPARTMENT: Environmental Management PRESENTER(S): Joe Suleyman, Environmental Management Director CONTACT(S): Joe Suleyman SUBJECT: Approval of an Application for the Waiver of Landfill Tipping Fees for the Wilmington Housing Authority BRIEF SUMMARY: The Environmental Management Department has received an application from the City of Wilmington Housing Authority for the waiver of landfill tipping fees. The request includes approximately 180 tons per year (valued at $4,160) of garbage, construction waste and bulky item waste. This amount will be generated from multiple property clean -up projects throughout the year. The tonnage requested to be included with this request is equivalent to disposal representing 3 hours of one day of airspace capacity on an annual basis. The waste will be hauled by The Wilmington Housing Authority to the NHC Landfill. The landfill has waived a total of $80,988 in tipping fees (1,581 tons) for the current fiscal year through the end of January 2016, from all sources. The Environmental Management Director recommends approval of the waiver request, with a maximum cap of 200 tons per year. STRATEGIC PLAN ALIGNMENT: Effective County Management • Understand and act on citizen needs RECOMMENDED MOTION AND REQUESTED ACTIONS: Approval of the waiver of landfill tipping fees for the Wilmington Housing Authority effective from March 2016 through February 2017, not to exceed 200 tons. ATTACHMENTS: Wilington Housing Authority Application for Fee Waiver COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. K ]►1101 Fs`f11 M►1I1.MAT I Y 161►6`A Approved 5 -0. Board of Commissioners - March 7, 2016 ITEM: 2 APPLICATION FOR WAIVER OF TIPPING FEES This form should be completed and submitted to the Director of Environmental Management for consideration of a waiver of established tipping fees. The Director will review the application and Make a recommendation to the Board of County Commissioners. Submit the completed form to: Joe Suleyman Director, Environmental Management 3002 US Highway 421 Nnrth Wilmington, NC 284.01 SECTION ONE (To be complete Aplalicant) Housing .Anlbority of the City °of Wilmington, NC and, it's Name of Organization: 501 (c� (' junprofiC: 149usi &4a and Economic Opportunities, Inc. Address,: .1.524 South 16th Stz-_*:e Wilmington, NC RE-401 Primary, Contact' Matthew &ia.raxy�; . Phone: _ 9a e : } 3 1 x 7706 ext 279 Email Address: mscapc7vtd kIr- ;r , 1.) What is the mission of ypur-', rg lzationT The Wilmington 13ousing Atr.,%?or;�ty',T � 64;b) C to provide quality, affordable housing in safe, attractive communities , for' the Families we serve, ;hereby improving the quality of life for all residents of . New Hanover CL-. -e'er . 2.) What type of service(s) do /does your organization provide tofite residents of New Hanover County?, The Wilmington Housing Authority, a not - for - profit governmental entity, is the only provider of affordable public housing in New Hanover (!ounty, assisting over 1200 low- income families, nearly 2500 residents, by offering low rents to working families, the elderly, and disabled. 3.) Outline the necessity of this request and its impact on your organization: WHA is greatly trying to improve the overall appearance of our Public Housing Communities. While we continue to rehab many of our sites, we are also focusing on the safety and health of our communities. This strategy has our agency making the extra effort to keep our sites clear of trash and debris which has added up to many trips to the County landfill and increasing costs. with our limited budget, WHA is hoping that our strategic partnership with the county can lead to a waiver of the nearly $12,000.00 per year we are paying on tipping fees. WHA believes this assistance aligns with New Hanover County's Core Value of Stewardship by responsibly managing and sustaining the important resource of affordable housing to the community that has been entrusted to the care of WHA. Board of Commissioners - March 7, 2016 ITEM: 2 - 1 - 1 4.) Have tipping fees been waived in the past for this organization (circle one)? YES NO 5.) Please attach a copy of any documentation of your organization's IRS status See attached FEIN Letter for the Wilmington Housing Authority'-and the 5oi(c)(3) letter of Housing and Economic AppBttunitiiee,. Inc. 6.) What waste removal/hauling company will be transporting your waste? NxImingtori'Housing Authority and /or contractors working on WHA owned land 7.) What is the estimated amount (in tons, or cubic yards) of expected waste generation? Leo per.'yearTons OR Cubic Yards 8i) Check type(s) of waste: x` �1 i4". e (,r r fUSe ,Construction waste Bulky yva�ft f,tnattreeses, furniture, etc.) I hereby certify that the infor-matic ohove is true, ond ut:rurafe rind that I am authorized ley my organizattow tee subm& this request on ita behalf. I also understand that it is my organization's responsib to ens�rcra th4in hatardous orprohibited wastes will be :disposed o}: Signature' Date: 1 SECTION TWO (To be corn ,le 1 ky N.HC DE.11lFI have reviewed the tippirtgfee waiver request a�ad +COMMEND DO NOT RECOIY�NiEND aaprr�val (circle one). Signature: Date: 2 Z 3)) (j Cc: NIIC Landfall Mgr Clerk to the Board Board of Commissioners - March 7, 2016 ITEM: 2 - 1 - 2 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: March 7, 2016 CONSENT DEPARTMENT: Strategy & Budget PRESENTER(S): Beth Schrader, Chief Strategy and Budget Officer CONTACT(S): Beth Schrader SUBJECT: Approval of New Hanover County Schools Budget Amendment #5 BRIEF SUMMARY: On February 2, 2016, the New Hanover County Board of Education adopted 2015 -16 Budget Amendment #5 which: 1) Records reimbursement from the Hoggard Band Booster Club for $2,900 for summer band contracts, transfers vacancy savings of $33,000 for Board of Education approved contribution to Legion Stadium Scoreboard, and miscellaneous budget transfers including transfer of Risk Management funds from salary reserve of $60,000. 2) Budgets project savings to fund $99,023 for modular building leases to be used during construction at Laney High School and College Park Elementary School at Sidbury Road. 3) Budgets $68,000 of lottery allotment to be used for traffic improvements and paving at Bellamy Elementary School and Murray Middle School. The application for lottery funds for these traffic improvements was approved by the Board of Commissioners at the October 5, 2015 board meeting. STRATEGIC PLAN ALIGNMENT: Superior Public Health, Safety and Education • Support programs to improve educational performance • Deliver value for taxpayer money Effective County Management • Deliver value for taxpayer money RECOMMENDED MOTION AND REQUESTED ACTIONS: Approve New Hanover County Schools Budget Amendment #5. ATTACHMENTS: 2015_16 NHCS_Budget Amendment —5 COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. Board of Commissioners - March 7, 2016 ITEM: 3 COMMISSIONERS' ACTIONS: Approved 5 -0. Board of Commissioners - March 7, 2016 ITEM: 3 Wr J 1 � c Item: 2015 -16 Budget Amendment #5 Date: February 2, 2016 Department: Finance Background /Historical Context: The attached Budget Amendment is needed to record revenue changes and transfers as described in chart below: Fund Description State To record State Revisions #18420 including the School Connectivity Allotment ($175,191) and adjustments based on actual membership and requested transfers. Also recorded budget for Sales Tax Refund to State Technology Fund $11,529. General Record budget for reimbursement from Hoggard Band Booster Club for summer band contracts ($2,900), transfer of vacancy savings for Board approved contribution for Legion Stadium Scoreboard ($33,000) and miscellaneous budget transfers including transfer of Risk Management funds from salary reserve ($60,000). Capital Outlay To transfer project savings to provide funding for modular building lease during construction at Laney and College Park at Sidbury ($99,023), and to budget Lottery allotment for Bellamy and Murray Traffic Improvements and Paving $68,000. Recommendation: For Approval Rationale for Recommendation: Approval is needed to record budget changes. Short and Long Term Impact: Required for planning and resource management. Supporting Documentation: • Summary by fund and purpose /function • Individual Funds shown with current and revised totals. • Capital Outlay also shown by Project, including the multi -year budget. Board Action: Recommendation Accepted Recommendation Rejected Tabled for Further Study Other Board of Commissioners - March 7, 2016 ITEM: 3 - 1 - 1 NEW HANOVER COUNTY BOARD OF EDUCATION Budget Amendment #: Be it resolved by the New Hanover County Board of Education that the following amendments be made to the Budget Resolution for the fiscal v mr anrtinrr -lane .4n inig, Roy o Cnurr•a• Federal Sources State Public School Fund (1) Local Current Expense Fund (General) (2) Federal Grant Fund (3) Other Restricted Revenue Fund (8) Subtotal Operating Budget Capital Outlay Fund (4) Enterprise Fund (5) Private Purpose Trust Fund (6) Total Amendment Purpose /Function: Instructional services: Regular Instruction $ (40,795) $ (50,750) $ $ $ (91,545) $ $ Fund Balance Appropriations $ (91,545) Special Populations $ (95,480) - $ (95,480) $ New Hanover County (95,480) Alternative Programs $ 17,280 (6,200) $ 11,080 $ Other Revenues 11,080 School Leadership $ (15,530) 5,150 $ (10,380) $ State Sources (10,380) Co- Curricular $ - - $ 68,000 - $ Transfer from Other Funds - School -Based Support $ 2,202 6,200 $ 8,402 $ Total F 8,402 subtotal $ (132,323) $ (45,600) $ i $ 1 $ (177,923) $ $ $ $ (177,923) System -wide support services: Support and Development $ 186 $ 14,500 $ $ $ 14,686 $ $ $ 14,686 Special Population Support and Development $ - - $ - $ - Alternative Program Support and Development $ - $ - $ - Technology Support $ 186,719 $ 186,719 $ 186,719 Operational Support $ - 1,000 $ 1,000 $ 1,000 Financial and Human Resources $ 60,000 $ 60,000 $ 60,000 Accountability $ $ - $ - System -Wide Pupil Support $ - $ $ Policy, Leadership and Public Relations $ - $ - $ - subtotal $ 186,905 $ 75,500 $ $ $ 262,405 $ $ $ $ 262,405 Ancillary: Community Services $ - $ - $ $ $ - $ $ Nutrition Services $ $ $ $ subtotal $ - $ - $ - $ - $ $ - $ $ - $ - Capital Outlay: Capital Outlay $ $ $ $ $ $ 68,000 $ $ 68,000 Non - programmed charges: Payments to Other Governments $ (11,529) $ 33,000 $ $ $ 21,471 $ $ $ 21,471 Unbudgeted & Indirect Cost $ (60,000) $ (60,000) $ (60,000) Transfer to Other Funds $ $ $ Scholarships $ $ $ subtotal $ (11,529) $ (27,000) $ $ $ (38,529) $ $ $ $ (38,529) Total Appropriation $ 43,054 $ 2,900 $ $ $ 45,954 $ 68,000 $ $ $ 113,954 Roy o Cnurr•a• Federal Sources $ $ $ $ $ $ $ $ Food Sales $ $ $ Fund Balance Appropriations $ $ $ New Hanover County $ $ $ Other Revenues I $ 2,900 $ 2,900 $ 2,900 State Sources 1 $ 43,054 $ 43,054 68,000 $ 111,054 Transfer from Other Funds 1 $ - $ - $ Total F 1 $ 43,054 $ 2,900 $ $ $ 45,954 $ 68,000 $ $ $ 113,954 Passed by majority vote of the New Hanover County Board of E cation of Chairman S r a, New Hanover County Board of Educatio Hanover County Board of Education Carolina on the 2nd Day of February, 2016. Board of Commissioners. - March 7, 2016 ITEM: 3 - 1 - 2 Cummulative Budget Summary: Current Budget I Amendment #5 1 Revised Budget Purpose /Function: $ - $ - $ - Food Sales - - Instructional services: Fund Balance Appropriation - - - New Hanover County - Regular Instruction $ 77,559,425 $ (40,795) $ 77,518,631 Special Populations 43,054 24,742,278 Transfer from Other Funds (95,480) - 24,646,798 Alternative Programs $ 139,414,316 5,313,413 $ 139,457,370 17,280 5,330,693 School Leadership 7,771,660 (15,530) 7,756,130 Co- Curricular - I - I - School -Based Support 7,580,269 2,202 7,582,471 subtotal $ 122,967,044 1 $ (132,323)1 $ 122,834,722 System -wide support services: Support and Development $ 250,037 186 $ 250,223 Special Population Support and Development 290,371 - 290,371 Alternative Program Support and Development 311,057 - 311,057 Technology Support 586,296 186,719 773,016 Operational Support 13,982,712 - 13,982,712 Financial and Human Resources 275.801 - 275,801 Accountability - - - System -Wide Pupil Support - - - Policy, Leadership and Public Relations 685,508 - 685,508 subtotal $ 16,381,783 $ 186,905 $ 16,568,688 Ancillary: Community Services $ - $ - $ - Nutrition Services 65,489 - 65,489 subtotal $ 65,489 $ - $ 65,489 Capital Outlay: Capital Outlay $ - $ $ - Non- programmed charges: Payments to Other Governments $ - $ (11,529) $ (11,529) Unbudgeted & Indirect Cost - - - Transfer to Other Funds - - - Scholarships - - - subtotal $ - $ (11,529) $ (11,529) Total Appropriation $ 139,414,316 $ 43,054 1 $ 139,457,370 Revenue Source: Federal Sources $ - $ - $ - Food Sales - - - Fund Balance Appropriation - - - New Hanover County - - - Other Revenues - - I - State Sources 139,414,316 43,054 139,457,370 Transfer from Other Funds - - - Total Revenue $ 139,414,316 $ 43,054 $ 139,457,370 Explanation: To record State Revisions #18 - #20 including the School Connectivity Allotment ($175,191) and adjustments based on actual membership and requested transfers. Also recorded budget for Sales Tax Refund to State Technology Fund ($11,529). Board of Commissioners - March 7, 2016 ITEM: 3 - 1 - 3 General Fund Cummuiative Budget Summary; Current Budget I Amendment #51 Revised Budget PurposeJFunction: $ 10,000 $ - $ 10,000 Food Sales - - Instructional services: Fund Balance Appropriation 3,337,610 - 3,337,610 New Hanover County 70,610,100 Regular Instruction $ 21,671,103 $ (50,750) $ 21,620,353 Special Populations - 1,807,105 Transfer from Other Funds - - 1,807,105 Alternative Programs $ 76,225,915 2,420,177 $ 76,228,815 (6,200) 2,413,977 School Leadership 5,694,518 5,150 5,699,668 Co- Curricular 2,124,755 - 2,124,755 School -Based Support 7,676,311 61200 7,682,511 subtotal $ 41,393,968 $ (45,600) $ 41,348,368 System -wide support services: Support and Development $ 1,791,083 14,500 $ 1,805,583 Special Population Support and Development 135,069 - 135,069 Alternative Program Support and Development 395,765 - 395,765 Technology Support . 3,652,037 - 3,652,037 Operational Support 17,201,112 1,000 17,202,112 Financial and Human Resources 4,736,450 60,000 4,796,450 Accountability 319,405 - 319,405 System -Wide Pupil Support 554,852 - 554,852 Policy, Leadership and Public Relations 1,780,658 - 1,780,658 subtotal $ 30,566,432 $ 75,500 $ 30,641,932 Ancillary: Community Services $ - $ - $ - Nutrition Services 187,240 - 187,240 subtotal $ 187,240 $ - $ 187,240 Capital Outlay: Capital Outlay $ - $ $ - Non- programmed charges: Payments to Other Governments $ 2,070,000 $ 33,000 $ 2,103,000 Unbudgeted & Indirect Cost 1,345,000 (60,000) 1,285,000 Transfer to Other Funds 627,275 - 627,275 Scholarships 36,000 - 36,000 subtotal $ 4,078,275 $ (27,000) $ 4,051,275 Total Appropriation $ 76,225,915 $ 2,900 $ 76,228,815 Revenue Source: Federal Sources $ 10,000 $ - $ 10,000 Food Sales - - - Fund Balance Appropriation 3,337,610 - 3,337,610 New Hanover County 70,610,100 - 70,610,100 Other Revenues 2,268,205 2,900 2,271,105 State Sources - - - Transfer from Other Funds - - - Total Revenue $ 76,225,915 $ 2,900 $ 76,228,815 Explanation: Record budget for reimbursement from Hoggard Band Booster Club for summer band contracts ($2,900), transfer of vacancy savings for Board approved contribution for Legion Stadium Scoreboard ($33,000) and miscellaneous budget transfers including transfer of Risk Management funds from salary reserve ($60,000). Board of Commissioners - March 7, 2016 ITEM: 3 - 1 - 4 Capital Outlay Cummulative Budget Summary: Current Budget I Amendment #5 1 Revised Budget PurposejFunction: $ - $ - $ - Food Sales - Instructional services: - Fund Balance Appropriation 1,511,889 - 1,511,889 Regular Instruction $ 193,774 $ Other Revenues $ 193,774 Special Populations State Sources - 68,000 1,689,137 Transfer from Other Funds - Alternative Programs 627,275 - $ 165,815,429 $ 68,000 $ 165,883,429 - School Leadership - - Co- Curricular - - School -Based Support - I - subtotal $ 193,774 $ - $ 193,774 System -wide support services: Support and Development $ - $ $ - Special Population Support and Development - - Alternative Program Support and Development - - Technology Support 1,287,063 - 1,287,063 Operational Support 410,693 410,693 Financial and Human Resources 40,000 40,000 Accountability - - System -Wide Pupil Support - - Policy, Leadership and Public Relations 22,000 22,000 subtotal $ 1,759,756 $ $ 1,759,756 Ancillary: Community Services $ - $ - $ - Nutrition Services - - subtotal $ - $ - $ - Capital Outlay: Capital Outlay $ 163,848,088 $ 68,000 $ 163,916,088 Non - programmed charges: Payments to Other Governments $ - $ - $ - Unbudgeted & Indirect Cost 13,811 - 13,811 Transfer to Other Funds - - - Scholarships - - - subtotal $ 13,811 $ - $ 13,811 Total Appropriation $ 165,815,429 $ 68,000 $ 165,883,429 Revenue Source: Federal Sources $ - $ - $ - Food Sales - - - Fund Balance Appropriation 1,511,889 - 1,511,889 New Hanover County (includes Bond) 162,055,128 - 162,055,128 Other Revenues - - - State Sources 1,621,137 68,000 1,689,137 Transfer from Other Funds 627,275 - 627,275 Total Revenue $ 165,815,429 $ 68,000 $ 165,883,429 Explanation: To transfer project savings to provide funding for modular building lease during construction at Laney and College Park at Sidbury ($99,023), and to budget Lottery allotment for Bellamy and Murray Traffic Improvements and Paving ($68,000). Board of Commissioners - March 7, 2016 ITEM: 3 - 1 - 5 Capital Outlay Fund Budget by Funding Source and Project #: Funding Source] Project# Program Project Description Project Budget (Multi -Year) Current Budget Amendment #5 Revised Budget PSBCF - Lottery Revenue: 911314 076 Wrightsboro Floor Repairs 95;000.00 47.310.87 47.310 87 914015 076 Veterarxs Park Cooling Tower Rplmt 472.500.00 125,182,00 125.182.00 9145.15 076 Sunset Park Soffit & Fa: ^ia Rplmt 183.000.00 '0.490.00 30,490.00 9146.15 076 Sunset Park Roof Rplmt 551,000.00 521,200.00 521,200.01 9147.15 076 Codington HVA, Rplmt 223,000 00 - 9148.15 076 Eaton HVAC Rplmt 223,000.00 - - 9158.15 076 Sidbury Road Complex 110,000.00 86.311.43 86.311.43 9162.16 076 Wrigh -born Floor Replacement 54,000.00 54,000.00 54.000.00 9163.16 076 Laney Painting 180.000.00 180.000.00 180.000.00 9164.16 076 Fire Alarm Replacement 36,000.00 36,000.00 36.000.00 9165.16 076 Eaton and C dington Carpet Replacer en, 144.000.00 144.000.00 144.000.00 9166.16 C76 Bradley Creek Water Heaters 56,000.00 56.00'.00 5000.GJ 9167.16 076 Bellazc,',y Painting 80.CA10.00 80,000.00 80.000.00 9168.16 076 Vl.;i iams Service Ramp 45.000.00 45.000.00 45.000.00 9169.16 076 Laney Restroom Renovations 38.250,00 38150.00 38,250.00 9170.16 076 Bellrmy & Murray Traffic Improvements 12 CC, ,00 12.000,01 68 rJ0.00 80,000.00 2,502,750.00 1,455,744.30 68,000.00 1,523,744.30 DPI School Bus Revenue: 6550 120 School Bus Lea:es (DPI) 1,920,025.00 165,393.00 165,393.00 Local Funding: 8500 801 Capital Outlay Cormgency n.a 13,811,29 11811.29 5110.16 801 Furniture & Equipment 110.000.00 110.000.00 110,000.00 6550.16 801 Vehicles 189;500.00 189.500.00 189.500.00 6610.16 801 Finance Workstations 6.775.00 6,775.00 6.775.00 6942.16 801 Car!ral Office Equipment 22,000.00 22.000.00 22.000.00 9160.16 801 Lakeside Demolition 348,500.00 348,500.00 348,500.00 9161.16 801 Roe Renovation 250,825.00 250.825.00 250.825.07 5110 814 Furniture and Equipment 109,241.41 7,898,97 7.898.97 6401,46 814 Novell to AD Migration - Phase it 157,350.00 1,743.57 1,743.57 9125 814 Myrtle Grove - Phase I HVAC 608:737.99 8.737.31 (45,090.27) (36.352.96) 9140 814 Proximity Exerirr, Door Locks 254.638.84 71,897.74 71,897.74 9142 814 Replace PA Systems 193;626.76 15J,239.s3 150.239.53 640174 815 Repl computers and monitors 229.00 229.29 229.29 6550 815 Vehicles 203,500.00 46327.48 46.327.48 9115 815 Playground Equip Rplmt & Access 100,000.00 76;965.72 76;96572 9130 815 Johnson Abatement & Carpet Rplmt 100 X0000 74.58925 (29,746.25) 44,843.00 9137 815 Mobile Classroom Replacement 753,189.04 353,57334 99022 .9,1 452;596.24 9150 815 Hoggard Cabling Project 70.GJ0.00 70,000.00 70.000.00 9151 815 NHHS Painting 150,(-,J0.0J 123,250.00 126;250.00 9152 815 Williston Kitchen Hood Rplmt 132000.0 -) 74,803.25 (23 545.80) 51,257.45 9153 615 K!:chen Coler'FreezEr Rplmts 50,000 CJ 38,104 f:'0 (640.58) 37,463,42 9157 815 Sidbury Road Compl_x Improvements 178,10) S9 9693.25 96,393.25 3,988,213.04 2,139,163.99 (0.00) 2,139,163.99 County Capital Appropriation: 5110 816 Furniture and Equipment 75;875.00 75;875.00 75,875.00 6550 816 '•.'ehicles - - - 6401 816 Computer Replacement 1285.100.00 1285,100,00 1,285,100.00 6580 816 Maintenance Equipment 55,300.00 55;800.00 55;800.00 6610 816 Finance Workstations 33.225.00 33,225.00 33.225.00 6942 816 Central Office Equipment - - - 9157 816 Sidbury Road Complex Improvements 1,550.000.00 1.550,GJ0.00 1,550000.00 9160 816 Lakeside Demolition 9161 816 Contingency for Roe Renovation 3,000,000.00 3,000,000.00 3,000,000.00 2014 Bond Program: 9001.01 900 Northeast ES 17,011.380.00 16.571 392.75 16;571,392.75 9002.03 900 College Park ES Rplmt 17,011.381.00 17,011.381.00 17.011,381.00 900105 900 Blair ES Rplmt 17.011;381.00 17,011.381.00 17.011..381,00 Board of Commissioners - March 7, 2016 ITEM: 3 - 1 - 6 Funding Source/ Project Budget Project# Program Project Description (Multi -Year) Current Budget Amendment #5 Revised Budget 9004.06 900 Laney HS Addns & Rt.novns 11,245;057.78 11,233.857.78 11.233.857.78 9005.08 900 Hoggard HS Addns & Renovns 15.915.48877 15,914,581,8 15,914.581.68 9)06.09 900 New Hanover HS Renovns 6,511,894.00 6;494,794.00 6.494,794.OJ 9007.10 CJO Roland Grise MS Renovns 11,66 ^.398.00 11.659;550.33 11.659.550.33 9008.11 rr "loble MS Renovns 7,906.664.00 7,906.664.00 7,906.664.00 9009.12 900 Trask MS Renovns 0 901.100.00 9;901,100.0" 9.901.100.00 9010,13 900 Myrtle Grove MS Renovns 8,727;903.00 8.727:903,00 8.727;903.00 9011.14 900 Wrightsville Beach ES Addns & Renovn,l 7.332492.00 T, 32.492.00 7 332,402.00 9012.07 900 Technology - Network Infrastructure 5,690014.00 5,651,810.00 5,651,810.00 9013.07 900 Technology - Security Cameras 3,402.276.00 3.402,276.00 3;402;276.00 9014.07 900 Technology - VCP Core Infrastr /Equip 469;279.00 469+279.00 469,279.00 9015.04 900 Sunset Park Roof Rplmt 219.800.00 219.800,60 219,800,W 9016.04 900 Noble Roof Rplmt - - 9017.04 9t'.0 Trask Rcof Rplmt 1.808 ,970.00 1.808.070.00 1.808.970.00 9018.04 900 Laney Roof Rplmt 517,249.00 517,249,00 517,249.00 9019.04 900 Johnson Roof Rplmt 6.272.45 1,000.00 1.000.00 9020.04 90u Hoggard HS Roof Rpimt 499,722.00 499;722.00 4997722.00 9021.04 900 Trask Roof Rplmt - - 9022.04 900 Pi,:e Valley Roof Rplmt 33-6434 00 336,434.00 336,434.00 9023.04 900 Codington hoof Rplmt - 9024.04 900 Eaton Roof Rplmt 9025.04 900 Holly Tree Roo; Coating 9026.04 900 Freeman Roof Rplmt - - 9027.04 900 Veterans Park Roof Crating 1,'26;27. °, 00 1 22 ,3.276.00 1,22U76 00 9028.04 9,00 Noble Abmt/Carpet Rpimt 304.553.00 250.54625 250.546.25 9029.04 �JO Hoggard Abmt,Carpet Rplmt 681,750.00 681,750.00 681,750.00 9030.04 900 Laney AL,,nt,: arpt Rplmt 516,205.00 516,208.00 516.208.00 9034.04 900 Codington HVAC Imprmts 260;720.00 131.598.93 131.598.93 9035.04 900 Eaton HVAC Imprmts 261.525.00 103,896.07 103;896.07 9036.04 900 Veterans Park HVAC Imprmts 367474.00 367474.00 367;474.00 9037.04 900 New Hanover HVAC Imprmts 3- 60;4590 360,459.00 360;459.00 90 13.04 900 Bradley Creek HVAC Imprmts 1.611 75TP9 1,593.349.50 1;593,349.50 9039.04 900 Johnson HW- ,Imprmts 1,611.758.00 1,593.350.5u 1:591350.50 9040.04 900 H r,` & Corrols Imprmts at Var Schools 1 509;314.00 1.509.314.00 1.509.314.00 9041.15 900 Program Management 3.106.796.00 3,C 53,513.92 3,053,513 92 9042.16 900 Contingency 1268,541.00 1268,541.00 3,268,541.00 9043.04 900 Carolina Beach Roof Rplmt 151.774.00 151.774.00 151.774.00 9044.04 900 Roland Grise Roof Rplmt 39016.00 36)4.916.00 394.913.00 9045.04 900 Gregory Roof Rplmt 569,386.00 569,386.00 569.386.0,0 9046.04 900 NHHS Roof Rplmt 611;137.00 611,137.00 611;137.00 160,000,000.00 159,055,127.71 159,055,127.71 $ 171,410,988.04 $ 165,815,429.00 $ 68,000.00 $ 165,883,429.00 Note: Changed program numbering to,;egregate County Funded Projects (816) from fund balance appropriations (801 -815). All future fund balar, ^e appropriations will be coded to program 801. The program number w no longer ind ..ate budget year for funding. Board of Commissioners - March 7, 2016 ITEM: 3 - 1 - 7 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: March 7, 2016 REGULAR DEPARTMENT: Finance PRESENTER(S): Lisa Wurtzbacher, Chief Financial Officer CONTACT(s): Lisa Wurtzbacher SUBJECT: Consideration of the Board of Commissioners Providing for the Issuance of Not to Exceed $64,000,000 General Obligation Refunding Bonds BRIEF SUMMARY: New Hanover County ( "County ") has issued $50,000,000 General Obligation School Bonds, Series 2007 (the "2007 Bonds "), $18,000,000 General Obligation Park and Recreation Bonds, Series 2008 (the "2008 Bonds "), $43,000,000 General Obligation School Bonds, Series 2009 (the "2009 Bonds "), and $53,030,000 General Obligation Public Improvement Bonds, Series 2010A (the "2010A Bonds "). County staff believes it will gain debt service savings in refunding certain maturities of the outstanding general obligation debt mentioned above, particularly $7,500,000 in aggregate principal amount of the 2007 Bonds, $10,785,000 in aggregate principal amount of the 2008 Bonds, $29,500,000 in aggregate principal amount of the 2009 Bonds, and $11,505,000 in aggregate principal amount of the 2010A Bonds totaling $59,290,000. The estimated net present value savings by refinancing is $4,505,994 or 7.59% of the refunded principal. The refunded debt does not extend the original life of the debt. Certain findings of facts must be made and presented to the Local Government Commission as set forth in Article 4 of Chapter 159 of the General Statutes. Those findings are made in the attached resolution and include that the bonds are necessary, sums estimated are adequate, compliance has been met with debt, budget and fiscal management policies, the refunding bonds will not require a property tax increase, and the County Manager and Chief Financial Officer are authorized to retain the financing team. In addition to the findings of fact, the Board must approve the bond order and direct the Clerk to the Board to publish the notice of its adoption. Further, the Board must adopt the resolution to issue not to exceed $64,000,000 of general obligation refunding bonds. Further documents related to the bond refunding transaction have been filed and are available at the Chief Financial Officer's office and include the 1) bond purchase agreement, 2) preliminary official statement, and 3) escrow agreement. The County's sworn statement of debt and statement of estimated interest are filed with the Clerk to the Board. STRATEGIC PLAN ALIGNMENT: Strong Financial Performance • Control costs and manage to the budget RECOMMENDED MOTION AND REQUESTED ACTIONS: Consider and approve the Resolution Making Certain Findings of Fact, introduce and adopt the Refunding Bond Order, and adopt the Bond Resolutions. Direct Clerk to publish notice of the Refunding Bond Order adoption. Board of Commissioners - March 7, 2016 ITEM: 4 ATTACHMENTS: Resolution Findings of Fact Bond Order Bond Resolution COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Recommend approval. COMMISSIONERS' ACTIONS: Approved 5 -0. Board of Commissioners - March 7, 2016 ITEM: 4 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE WHEREAS, the Board of Commissioners is considering the issuance of bonds of the County of New Hanover, North Carolina (the "County ") which shall be for the following purposes and in the following maximum amount: Not to exceed $64,000,000 of General Obligation Refunding Bonds to pay the costs of refunding in advance of their maturities $7,500,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation School Bonds, Series 2007 maturing on February 1, 2018 through February 1, 2020, $10,785,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation Park and Recreation Bonds, Series 2008 maturing on and after June 1, 2019, $29,500,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation School Bonds, Series 2009 maturing on and after June 1, 2020, and $11,505,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation Public Improvement Bonds, Series 2010A maturing on August 1, 2021, August 1, 2025 and August 1, 2030. WHEREAS, certain findings of fact by the Board of Commissioners must be presented to enable the Local Government Commission of the State of North Carolina to make certain determinations as set forth in Article 4 of Chapter 159 of the General Statutes, Section 52. NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners meeting in open session on the 7th day of March, 2016, has made the following factual findings in regard to this matter: Facts Regarding Necessity of Proposed Financing. The proposed bonds are necessary and expedient to lower debt service costs to the County. Facts Supporting the Amount of Bonds Proposed. The sums estimated for these bonds are adequate and not excessive for the proposed purpose. Past Debt Management Polices. The County's debt management policies have been carried out in compliance with law. The County employs a Chief Financial Officer to oversee compliance with applicable laws relating to debt management. The Board of Commissioners requires annual audits of County finances. In connection with these audits, compliance with laws is reviewed. The County is not in default in any of its debt service obligations. The County Attorney reviews all debt - related documents for compliance with laws. Past Budgetary and Fiscal Management Policies. The County's budgetary and fiscal management policies have been carried out in compliance with laws. Annual budgets are closely reviewed by the Board of Commissioners before final approval of budget ordinances. Budget amendments changing a function total or between functions are presented to the Board of Commissioners at regular Board of Commissioners meetings. The Chief Financial Officer presents financial information to Board of Commissioners which shows budget to actual comparisons annually and otherwise as the County Manager deems necessary or as a member of the Board of Commissioners may request. Retirement of Debt. The schedule for issuing the bonds does not require a property tax increase. The schedule for issuance calls for issuing all of the bonds in Fiscal Year 2016, but issuance may be delayed until such time as the County receives sufficient net present value savings therefrom. Board of Commissioners - March 7, 2016 ITEM: 4 - 1 - 1 Financing Team. The County Manager and the Chief Financial Officer, with advice from the County Attorney, are hereby authorized and directed to (1) retain Parker Poe Adams & Bernstein LLP, Raleigh, North Carolina, as bond counsel, (2) retain PNC Capital Markets LLC, Charlotte, North Carolina, and Stephens Inc., Charlotte, North Carolina, collectively, as underwriters for the bonds, (3) retain First Tryon Advisors, Charlotte, North Carolina, as financial advisor, and (4) approve the selection of Pillsbury Winthrop Shaw Pittman LLP, New York, New York, as counsel to the underwriters. ADOPTED this the 7th day of March, 2016. NEW HANOVER COUNTY Beth Dawson, Chairman ATTEST: Teresa Elmore, Clerk to the Board 2 Board of Commissioners - March 7, 2016 ITEM: 4 - 1 - 2 STATE OF NORTH CAROLINA SS: COUNTY OF NEW 14ANOVER 1, TERESA ELMORE, Clerk to the Board of Commissioners of the County of New Hanover, North Carolina, DO HEREBY CERTIFY that the foregoing is a true and exact copy of the resolutions titled "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA MAKING CERTAIN STATEMENTS OF FACT CONCERNING PROPOSED BOND ISSUE" adopted by the Board of Commissioners of the County of New Hanover, North Carolina in regular session convened on the 7th day of March, 2016, as recorded in the minutes of the Board of Commissioners of the County of New Hanover, North Carolina. WITNESS my hand and the seal of the County of New Hanover, North Carolina, this the 7th day of March, 2016. (SEAL) Teresa Elmore Clerk to the Board of Commissioners County of New Hanover, North Carolina 3 Board of Commissioners - March 7, 2016 ITEM: 4 - 1 - 3 BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA WHEREAS, the County of New Hanover, North Carolina (the "County ") has issued $50,000,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation School Bonds, Series 2007 (the "2007 Bonds "), $18,000,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation Park and Recreation Bonds, Series 2008 (the "2008 Bonds "), $43,000,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation School Bonds, Series 2009 (the "2009 Bonds "), and $53,030,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation Public Improvement Bonds, Series 201OA (the "2010A Bonds"); WHEREAS, the Board of Commissioners (the "Board ") of the County deems it advisable to refund $7,500,000 in aggregate principal amount of the 2007 Bonds maturing on February 1, 2018 through February 1, 2020 (the "Refunded 2007 Bonds"), $10,785,000 in aggregate principal amount of the 2008 Bonds maturing on and after June 1, 2019 (the "Refunded 2008 Bonds "), $29,500,000 in aggregate principal amount of the 2009 Bonds maturing on and after June 1, 2020 (the "Refunded 2009 Bonds "), and $11,505,000 in aggregate principal amount of the 2010A Bonds maturing on August 1, 2021, August 1, 2025 and August 1, 2030 (the "Refunded 2010A Bonds "); WHEREAS, an application has been filed with the Secretary (the "Secretary ") of the Local Government Commission of North Carolina (the "Commission ") requesting Commission approval of the bonds hereinafter described as required by the Local Government Bond Act, and the Secretary has notified the Board that the application has been accepted for submission to the Commission. NOW, THEREFORE, BE IT ORDERED by the Board of Commissioners of the County of New Hanover, North Carolina, as follows: Section 1. The Board deems it advisable to refund the Refunded 2007 Bonds, the Refunded 2008 Bonds, the Refunded 2009 Bonds, and the Refunded 2010A Bonds. Section 2. To raise the money required to pay the costs of refunding the 2007 Bonds, the 2008 Bonds, the 2009 and the 2010A Bonds as set forth above, General Obligation Refunding Bonds of the County of New Hanover, North Carolina are hereby authorized and shall be issued pursuant to the Local Government Bond Act of North Carolina. The maximum aggregate principal amount of such General Obligation Refunding Bonds authorized by this bond order shall be and not exceed $64,000,000. Section 3. A tax sufficient to pay the principal of and interest on said General Obligation Refunding Bonds when due shall be annually levied and collected. Section 4. A sworn statement of the County's debt has been filed with the Clerk to the Board of Commissioners and is open to public inspection. Section 5. This bond order shall take effect on its adoption. The Clerk to the Board of Commissioners is directed to publish a notice of adoption as prescribed by The Local Government Bond Act, the bond order titled, `BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA ", which was introduced at the meeting of the Board of Commissioners held on March 7, 2016. Board of Commissioners - March 7, 2016 ITEM: 4 - 2 - 1 ADOPTED this the 7th day of March, 2016. NEW HANOVER COUNTY Beth Dawson, Chairman ATTEST: Teresa Elmore, Clerk to the Board Board of Commissioners - March 7, 2016 ITEM: 4 - 2 - 2 STATE OF NORTH CAROLINA ) SS: COUNTY OF NEW 14ANOVER ) 1, Teresa Elmore, Clerk to the Board of Commissioners of the County of New Hanover, North Carolina, DO HEREBY CERTIFY that the foregoing is a true and exact copy of the bond order titled "BOND ORDER AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA ", which was adopted by the Board of Commissioners of the County of New Hanover, North Carolina in regular session convened on the 7th day of March, 2016, as recorded in the minutes of the Board of Commissioners of the County of New Hanover, North Carolina. WITNESS my hand and the seal of the County of New Hanover, North Carolina, this the day of March, 2016. (SEAL) Teresa Elmore Clerk to the Board of Commissioners County of New Hanover, North Carolina Board of Commissioners - March 7, 2016 ITEM: 4 - 2 - 3 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016 OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA WHEREAS, the Bond Order (as defined below) has been adopted, and it is desirable to make provision for the issuance of the Bonds authorized by the Bond Order; WHEREAS, the County of New Hanover, North Carolina (the "County ") desires to issue its General Obligation Refunding Bonds, Series 2016 (the "Bonds ") for the purposes described herein and to request that the Local Government Commission of North Carolina (the "Commission ") sell the Bonds through a negotiated sale to PNC Capital Markets LLC and Stephens Inc. (collectively, the "Underwriters ") in accordance with the terms and conditions set forth in a Bond Purchase Agreement to be dated on or about April 28, 2016 (the "Bond Purchase Agreement ") among the County, the Commission and the Underwriters; WHEREAS, copies of the forms of the following documents relating to the transactions described above have been filed with the County and have been made available to the Board: the Bond Purchase Agreement; 2. the Preliminary Official Statement with respect to the Bonds to be dated on or about April 19, 2016, together with the Official Statement with respect to the Bonds to be dated on or about April 28, 2016 (collectively, the "Official Statement "); and 3. an Escrow Agreement dated as of May 15, 2016 (the "Escrow Agreement ") between the County and U.S. Bank National Association, as escrow agent (the "Escrow Agent "), with respect to the Refunded Bonds (as defined below); NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the County (the "Board") as follows: Section 1. For purposes of this Resolution, the following words have the meanings ascribed to them below: "Refunded Bonds" means, collectively, the Refunded 2007 Bonds, the Refunded 2008 Bonds, the Refunded 2009 Bonds and the Refunded 2010A Bonds (or such portion thereof as identified in the Pricing Certificate) to be defeased and redeemed in accordance with the terms of the Escrow Agreement. "Bond Order" means the Bond Order authorizing the General Obligation Refunding Bonds adopted by the Board on March 7, 2016 and effective on its adoption. "Bonds" means the County's General Obligation Refunding Bonds, Series 2016, authorized under the Bond Order. "Code" means the Internal Revenue Code of 1986, as amended. Each reference to a section of the Code herein will be deemed to include the United States Treasury Regulations proposed or in effect with respect thereto. "Escrow Agent" means U.S. Bank National Association, and its successors and assigns. PPAB 3132396v2 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 1 "Escrow Agreement" means the Escrow Agreement between the County and the Escrow Agent related to the Refunded Bonds. "Federal Securities" means, to the extent permitted by law, (a) direct obligations of the United States of America for the timely payment of which the full faith and credit of the United States of America is pledged; (b) obligations issued by any agency controlled or supervised by and acting as an instrumentality of the United States of America, the timely payment of the principal of and interest on which is fully guaranteed as full faith and credit obligations of the United States of America (including any securities described in (a) or (b) issued or held in the name of the trustee in book -entry form on the books of the Department of Treasury of the United States of America), which obligations, in either case, are held in the name of a trustee and are not subject to redemption or purchase prior to maturity at the option of anyone other than the holder; (c) any bonds or other obligations of the State of North Carolina or of any agency, instrumentality or local governmental unit of the State of North Carolina which are (i) not callable prior to maturity or (ii) as to which irrevocable instructions have been given to the trustee or escrow agent with respect to such bonds or other obligations by the obligor to give due notice of redemption and to call such bonds for redemption on the date or dates specified, and which are rated by Moody's, if the bonds are rated by Moody's, and S &P, if the bonds are rated by S &P, within the highest rating category and which are secured as to principal, redemption premium, if any, and interest by a fund consisting only of cash or bonds or other obligations of the character described in clause (a) or (b) hereof which fund may be applied only to the payment of such principal of and interest and redemption premium, if any, on such bonds or other obligations on the maturity date or dates thereof or the specified redemption date or dates pursuant to such irrevocable instructions, as appropriate; or (d) direct evidences of ownership of proportionate interests in future interest and principal payments on specified obligations described in (a) held by a bank or trust company as custodian, under which the owner of the investment is the real party in interest and has the right to proceed directly and individually against the obligor on the underlying obligations described in (a), and which underlying obligations are not available to satisfy any claim of the custodian or any person claiming through the custodian or to whom the custodian may be obligated. " Moody's" means Moody's Investors Service, a corporation organized and existing under the laws of the State of Delaware, its successors and their assigns and, if such corporation for any reason no longer performs the functions of a securities rating agency, " Moody's" will be deemed to refer to any other nationally recognized rating agency other than S &P designated by the County. "Pricing Certificate" means the certificate of the County's Chief Financial Officer delivered in connection with the issuance of the Bonds which (1) establishes, with respect to the Bonds, the final maturity amounts, the interest payment dates and the provisions for redemption, all as agreed on in the Bond Purchase Agreement, and (2) identifies the Refunded Bonds. "Refunded 2007 Bonds" means the 2007 Bonds maturing on February 1, 2018 through February 1, 2020. "Refunded 2008 Bonds" means the 2008 Bonds maturing on and after June 1, 2019. "Refunded 2009 Bonds" means the 2009 Bonds maturing on and after June 1, 2020. "Refunded 2010A Bonds" means the 2010A Bonds maturing on August 1, 2021, August 1, 2025 and August 1, 2030. "S &P" means Standard & Poor's Ratings Service, its successors and their assigns and, if such corporation for any reason no longer performs the functions of a securities rating agency, "S &P" will be PPAB 3132396v2 2 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 2 deemed to refer to any other nationally recognized rating agency other than Moody's designated by the County. "2007 Bonds" means $50,000,000 aggregate principal amount of the County's General Obligation School Bonds, Series 2007. "2008 Bonds" means $18,000,000 aggregate principal amount of the County's General Obligation Park and Recreation Bonds, Series 2008. "2009 Bonds" means $43,000,000 aggregate principal amount of the County's General Obligation School Bonds, Series 2009. "2010A Bonds" means $53,030,000 aggregate principal amount of the County's General Obligation School Bonds, Series 2010A. Section 2. The County shall issue its Bonds in an aggregate principal amount not to exceed $64,000,000. Section 3. The Bonds shall be dated as of their date of issuance. The Bonds shall pay interest semiannually on February 1 and August 1, beginning August 1, 2016, unless the Chief Financial Officer establishes different dates in her Pricing Certificate. The Bonds are being issued to refund the Refunded Bonds pursuant to and in accordance with the Bond Order. Section 4. The Bonds are payable in annual installments on June 1 in each year, unless the Chief Financial Officer establishes a different date in her Pricing Certificate. The maturities of the Bonds will be as set forth in the Pricing Certificate. Section 5. The Bonds are to be numbered from "R -1" consecutively and upward and shall bear interest from their date at a rate or rates which will be hereafter determined on the sale thereof computed on the basis of a 360 -day year of twelve 30 -day months. Section 6. The Bonds are to be registered as to principal and interest, and the Chief Financial Officer is directed to maintain the registration records with respect thereto. The Bonds shall bear the original or facsimile signatures of the Chairman of the Board or the County Manager and the Clerk to the Board. An original or facsimile of the seal of the County is to be imprinted on each of the Bonds. Section 7. The Bonds will initially be issued by means of a book -entry system with no physical distribution of bond certificates made to the public. One bond certificate for each maturity will be issued to The Depository Trust Company, New York, New York ( "DTC "), and immobilized in its custody. A book -entry system will be employed, evidencing ownership of the Bonds in principal amounts of $5,000 or integral multiples thereof, with transfers of beneficial ownership effected on the records of DTC and its participants pursuant to rules and procedures established by DTC. Interest on the Bonds will be payable to DTC or its nominee as registered owner of the Bonds in immediately available funds. The principal of and interest on the Bonds will be payable to owners of Bonds shown on the records of DTC at the close of business on the 15th day of the month preceding an interest payment date or a bond payment date. The County will not be responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. If (a) DTC determines not to continue to act as securities depository for the Bonds or (b) the Chief Financial Officer determines that the continuation of the book -entry system of evidence and transfer PPAB 3132396v2 3 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 3 of ownership of the Bonds would adversely affect the interests of the beneficial owners of the Bonds, the County will discontinue the book -entry system with DTC. If the County fails to identify another qualified securities depository to replace DTC, the County will authenticate and deliver replacement bonds in accordance with DTC's rules and procedures. Section 8. If the Pricing Certificate designates a date for the Bonds on and after which the Bonds are subject to redemption, then such Bonds are subject to redemption before maturity, at the option of the County, from any money that may be made available for such purpose, either in whole or in part on any date on or after the date set forth in the Pricing Certificate, at the principal amount of the Bonds to be redeemed, together with interest accrued thereon to the date fixed for redemption, with such redemption premium, if any, designated for the Bonds in the Pricing Certificate. If the Bonds are subject to optional redemption and if less than all the Bonds are called for redemption, the County shall select the maturity or maturities of the Bonds to be redeemed in such manner as the County in its discretion may determine, and DTC and its participants shall determine which Bonds within a maturity are to be redeemed by lot; provided, however, that the portion of any Bond to be redeemed must be in principal amount of $5,000 or integral multiples thereof and that, in selecting Bonds for redemption, each Bond is to be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000. When the County elects to redeem any Bonds, notice of such redemption of such Bonds, stating the redemption date, redemption price and identifying the Bonds or portions thereof to be redeemed by reference to their numbers and further stating that on such redemption date there are due and payable on each Bond or portion thereof so to be redeemed, the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to DTC or its nominee as the registered owner of such Bonds, by prepaid certified or registered United States mail (or by such other means as may be permitted by DTC's rules and procedures), at the address provided to the County by DTC, but any failure or defect in respect of such mailing will not affect the validity of the redemption. If DTC is not the registered owner of such Bonds, the County will give notice at the time set forth above by prepaid first class United States mail, to the then - registered owners of such Bonds or portions thereof to be redeemed at the last address shown on the registration books kept by the County. The County will also mail or transmit by facsimile or electronic submission a copy of the notice of redemption within the time set forth above (1) to the Commission and (2) to the Municipal Securities Rule Making Board (the WSRB ") in an electronic format as prescribed by the MSRB. Section 9. The Bonds and the provisions for the registration of the Bonds and for the approval of the Bonds by the Secretary of the Local Government Commission are to be in substantially the form set forth in the Appendix A hereto. Section 10. The Chief Financial Officer is hereby authorized to execute a no- arbitrage certificate with respect to the Bonds in order to comply with Section 148 of the Code and the applicable Income Tax Regulations thereunder. Section 11. From the proceeds from the sale of the Bonds, the State Treasurer shall transfer or cause to be transferred on the date the Bonds are issued (1) to the Escrow Agent for deposit in the Escrow Fund (as defined in the Escrow Agreement) created under the Escrow Agreement, an amount sufficient to defease the Refunded Bonds and (2) to the County the balance of the proceeds from the sale of the Bonds. Any proceeds of the Bonds to be used to pay the costs of issuance of the Bonds shall be accounted for in a separate segregated account held by the County and invested and reinvested by the Chief Financial Officer as permitted by the laws of the State of North Carolina. The Chief Financial Officer shall keep and maintain adequate records pertaining to such account and all disbursements PPAB 3132396v2 4 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 4 therefrom so as to satisfy the requirements of the laws of the State of North Carolina and to assure that the County maintains its covenants with respect to the exclusion of the interest on the Bonds from gross income for purposes of federal income taxation. To the extent any funds remain in such account 90 days after the Bonds are issued (or sooner at the discretion of the Chief Financial Officer), the Chief Financial Officer shall apply them to pay interest on the Bonds on the next interest payment date therefor. Section 12. Actions taken by officials of the County to select paying and transfer agents, and a bond registrar, or alternate or successor agents and registrars pursuant to Section 159E -8 of the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, are hereby authorized and approved. Section 13. The Commission is hereby requested to sell the Bonds through a negotiated sale to the Underwriters pursuant to the terms of the Bond Purchase Agreement at a true interest cost not to exceed 2.80 %. The form and content of the Bond Purchase Agreement are in all respects approved and confirmed, and the Chairman of the Board or the County Manager is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the Bond Purchase Agreement for and on behalf of the County, including necessary counterparts, in substantially the form and content presented to the Board, but with such changes, modifications, additions or deletions therein as they may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the Bond Purchase Agreement, the Chairman of the Board, the County Manager and the Chief Financial Officer are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Bond Purchase Agreement as executed. Section 14. The Chairman of the Board, the County Manager, the Chief Financial Officer and the Clerk to the Board of the County are each hereby authorized and directed to cause the Bonds to be prepared and, when they shall have been duly sold by the Commission, to execute the Bonds and to turn the Bonds over to the registrar and transfer agent of the County for delivery through the facilities of DTC to the Underwriters. Section 15. The form and content of the Official Statement are in all respects authorized, approved and confirmed, and the County Manager and Chief Financial Officer are authorized, empowered and directed, individually and collectively, to deliver the Official Statements in substantially the form and content presented to the Board, but with such changes, modifications, additions or deletions therein as they may deem necessary, desirable or appropriate. Section 16. The form and content of the Escrow Agreement are in all respects approved and confirmed, and the Chairman of the Board or the County Manager is hereby authorized, empowered and directed, individually and collectively, to execute and deliver the Escrow Agreement for and on behalf of the County, including necessary counterparts, in substantially the form and content presented to the Board, but with such changes, modifications, additions or deletions therein as they may deem necessary, desirable or appropriate, the execution thereof to constitute conclusive evidence of the Board's approval of any and all such changes, modifications, additions or deletions therein. From and after the execution and delivery of the Escrow Agreement, the Chairman of the Board, the County Manager and the Chief Financial Officer are hereby authorized, empowered and directed, individually and collectively, to do all such acts and things and to execute all such documents as may be necessary to carry out and comply with the provisions of the Escrow Agreement as executed. Section 17. The Chairman of the Board, the County Manager, the Chief Financial Officer and the Clerk to the Board of the County, individually or collectively, are authorized and directed to execute PPAB 3132396v2 5 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 5 and deliver for and on behalf of the County any and all additional certificates, documents, opinions or other papers and perform all other acts as may be required by the documents contemplated hereinabove or as may be deemed necessary or appropriate in order to implement and carry out the intent and purposes of this Resolution. Section 18. The County agrees, in accordance with Rule 15c2 -12 (the "Rule ") promulgated by the Securities and Exchange Commission (the "SEC ") and for the benefit of the Registered Owners and beneficial owners of the Bonds, to provide to the MSRB: (a) by not later than seven months after the end of each Fiscal Year beginning with the Fiscal Year ending June 30, 2016, the audited financial statements of the County for the preceding Fiscal Year, if available, prepared in accordance with Section 159 -34 of the General Statutes of North Carolina, as it may be amended from time to time, or any successor statute, or if such audited financial statements are not then available, unaudited financial statements of the County for such Fiscal Year to be replaced subsequently by audited financial statements of the County to be delivered within 15 days after such audited financial statements become available for distribution; (b) by not later than seven months after the end of each Fiscal Year, beginning with the Fiscal Year ending June 30, 2016, the financial and statistical data as of a date not earlier than the end of the preceding Fiscal Year for the type of information included under the captions "THE COUNTY - -DEBT INFORMATION" and " -- -TAX INFORMATION" (excluding information on overlapping units) in the Official Statement referred to in Section 15, to the extent such items are not included in the audited financial statements referred to in clause (a) above; (c) in a timely manner not in excess of 10 business days after the occurrence of the event, notice of any of the following events with respect to the Bonds: (1) principal and interest payment delinquencies; (2) non - payment related defaults, if material; (3) unscheduled draws on the debt service reserves reflecting financial difficulties; (4) unscheduled draws on any credit enhancements reflecting financial difficulties; (5) substitution of any credit or liquidity providers, or their failure to perform; (6) adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701 -TEB) or other material notices or determinations with respect to the tax status of the Bonds or other material events affecting the tax status of the Bonds; (7) modification of the rights of the beneficial owners of the Bonds, if material; PPAB 3132396v2 6 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 6 (8) call of any of the Bonds, if material, and tender offers; (9) defeasance of any of the Bonds; (10) release, substitution or sale of any property securing repayment of the Bonds, if material; (11) rating changes; (12) bankruptcy, insolvency, receivership or similar event of the County; (13) the consummation of a merger, consolidation, or acquisition involving the County or the sale of all or substantially all of the assets of the obligated person, other than in the ordinary course of business, the entry into a definitive agreement to undertake such an action or the termination of a definitive agreement relating to such actions, other than pursuant to its terms, if material; and (14) the appointment of a successor or additional trustee, or the change in the name of a trustee, if material; (d) in a timely manner, notice of a failure of the County to provide required annual financial information described in (a) or (b) above on or before the date specified. The County agrees to provide all documents described in this Section in an electronic format as prescribed by the MSRB and accompanied by identifying information as prescribed by the MSRB. The County may discharge its undertaking described above by providing such information in a manner the SEC subsequently authorizes in lieu of the manner described above. The County agrees that its undertaking under this Section is intended to be for the benefit of the registered owners and the beneficial owners of the Bonds and is enforceable by any of the registered owners and the beneficial owners of the Bonds, including an action for specific performance of the County's obligations under this Section, but a failure to comply will not be an event of default and will not result in acceleration of the payment of the Bonds. An action must be instituted, had and maintained in the manner provided in this Section for the benefit of all of the registered owners and beneficial owners of the Bonds. The County may modify from time to time, consistent with the Rule, the information provided or the format of the presentation of such information, to the extent necessary or appropriate in the judgment of the County, but: (1) any such modification may only be made in connection with a change in circumstances that arises from a change in legal requirements, change in law or change in the identity, nature or status of the County; (2) the information to be provided, as modified, would have complied with the requirements of the Rule as of the date of the Official Statement, after taking into account any amendments or interpretations of the Rule as well as any changes in circumstances; and (3) any such modification does not materially impair the interest of the PPAB 3132396v2 7 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 7 registered owners or the beneficial owners, as determined by nationally recognized bond counsel or by the approving vote of the registered owners of a majority in principal amount of the Bonds. Any annual financial information containing modified operating data or financial information will explain, in narrative form, the reasons for the modification and the impact of the change in the type of operating data or financial information being provided. The provisions of this Section terminate on payment, or provision having been made for payment in a manner consistent with the Rule, in full of the principal of and interest on the Bonds. Section 19. Portions of this Resolution may be amended or supplemented from time to time without the consent of the registered owner of the Bonds if, in the opinion of nationally recognized bond counsel, such amendment or supplement would not adversely affect the interests of the owner of the Bonds and would not cause the interest on the Bonds to be included in the gross income of a recipient thereof for federal income tax purposes. This Resolution may be amended or supplemented with the consent of the owners of a majority in aggregate principal amount of the outstanding Bonds, exclusive of Bonds, if any, owned by the County; provided, however, without the express consent of the owner of any Bond, no modification or amendment to such Bond may reduce the principal amount of such Bond, reduce the interest rate payable on such Bond, extend its maturity or the times for paying interest, change the monetary medium in which principal and interest is payable or reduce the percentage of consent required for amendment or modification. Any act done pursuant to a modification or amendment consented to by the owner of the Bonds is binding on the owner of the Bonds and will not be deemed an infringement of any of the provisions of this Resolution, whatever the character of the act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Resolution, and after consent has been given, the owner of the Bonds shall have no right or interest to object to the action, to question its propriety or to enjoin or restrain the County from taking any action pursuant to a modification or amendment. If the County proposes an amendment or supplemental resolution to this Resolution requiring the consent of the owner of the Bonds, the Registrar shall, on being satisfactorily indemnified with respect to expenses, cause notice of the proposed amendment to be sent to such owner by first -class mail, postage prepaid, to the address of such owner as it appears on the registration books; but the failure to receive such notice by mailing by any owner, or any defect in the mailing thereof, will not affect the validity of any proceedings pursuant hereto. Such notice shall briefly set forth the nature of the proposed amendment and shall state that copies thereof are on file at the principal office of the Registrar for inspection by the owner of the Bonds. If, within 60 days or such longer period as shall be prescribed by the County following the giving of such notice, the owner of the Bonds has consented to the proposed amendment, the amendment will be effective as of the date stated in the notice. Section 20. Nothing in this Resolution precludes (a) the payment of the Bonds from the proceeds of refunding bonds or (b) the payment of the Bonds from any legally available funds. If the County causes to be paid, or has made provisions to pay, on maturity or on redemption before maturity, to the owners of the Bonds the principal of the Bonds (including interest to become due thereon) and, premium, if any, on the Bonds, through setting aside trust funds or setting apart in a reserve fund or special trust account created pursuant to this Resolution or otherwise, or through the irrevocable segregation for that purpose in some sinking fund or other fund or trust account with an escrow agent or otherwise, moneys sufficient therefor, including, but not limited to, interest earned or to be earned on Federal Securities, the County shall so notify Moody's and S &P, and then such Bonds shall be considered PPAB 3132396v2 8 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 8 to have been discharged and satisfied, and the principal of the Bonds (including premium, if any, and interest thereon) shall no longer be deemed to be outstanding and unpaid; provided, however, that nothing in this Resolution requires the deposit of more than such Federal Securities as may be sufficient, taking into account both the principal amount of such Federal Securities and the interest to become due thereon, to implement any such defeasance. If such a defeasance occurs and after the County receives an opinion of a nationally recognized verification firm that the segregated moneys or Federal Securities together with interest earnings thereon are sufficient to effect a defeasance, the County shall execute and deliver all such instruments as may be necessary to effect such a defeasance and desirable to evidence such release, discharge and satisfaction. Provisions shall be made by the County, for the mailing of a notice to the owners of the Bonds that such moneys are so available for such payment. Section 21. All acts and doings of the Chairman of the Board, the County Manager, the Chief Financial Officer and the Clerk to the Board of the County that are in conformity with the purposes and intents of this Resolution and in the furtherance of the issuance of the Bonds and the execution, delivery and performance of the Bond Purchase Agreement are in all respects approved and confirmed. Section 22. If any one or more of the agreements or provisions herein contained is held contrary to any express provision of law or contrary to the policy of express law, though not expressly prohibited, or against public policy, or for any reason whatsoever is held invalid, then such covenants, agreements or provisions are null and void and separable from the remaining agreements and provisions and will in no way affect the validity of any of the other agreements and provisions hereof or of the Bonds authorized hereunder. Section 23. All resolutions or parts thereof of the Board in conflict with the provisions herein contained are, to the extent of such conflict, hereby superseded and repealed. Section 24. This Resolution is effective on its adoption. ADOPTED this the 7th day of March, 2016. NEW HANOVER COUNTY Beth Dawson, Chairman ATTEST: Teresa Elmore, Clerk to the Board PPAB 3132396v2 9 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 9 STATE OF NORTH CAROLINA ss: COUNTY OF NEW 14ANOVER 1, TERESA ELMORE, Clerk to the Board of Commissioners of the County of New Hanover, North Carolina, "A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA PROVIDING FOR THE ISSUANCE OF NOT TO EXCEED $64,000,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2016 OF THE COUNTY OF NEW HANOVER, NORTH CAROLINA" adopted by the Board of Commissioners of the County of New Hanover, North Carolina, at a meeting held on the 7th day of March, 2016. WITNESS my hand and the corporate seal of the County of New Hanover, North Carolina, this the 7th day of March, 2016. Teresa Elmore Clerk to the Board County of New Hanover, North Carolina PPAB 3132396v2 10 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 10 No. R- APPENDIx A Form of Bond UNITED STATES OF AMERICA STATE OF NORTH CAROLINA COUNTY OF NEW HANOVER INTEREST RATE MATURITY DATE AUGUST 1, REGISTERED OWNER: CEDE & CO. PRINCIPAL SUM: 611 DATED DATE CUSIP MAY 24, 2016 DOLLARS GENERAL OBLIGATION REFUNDING BOND, SERIES 2016 THE COUNTY OF NEW HANOVER, NORTH CAROLINA (the "County ") acknowledges itself indebted and for value received hereby promises to pay to the Registered Owner named above, on the Maturity Date specified above, on surrender hereof, the Principal Sum shown above and to pay to the Registered Owner hereof interest thereon from the date of this Bond until it shall mature at the Interest Rate per annum specified above, payable on August 1, 2016 and semiannually thereafter on February 1 and August 1 of each year. Principal of and interest on this Bond are payable in immediately available funds to The Depository Trust Company ( "DTC ") or its nominee as registered owner of the Bonds and is payable to the owner of the Bonds shown on the records of DTC at the close of business on the 15th day of the month preceding an interest payment date or a bond payment date. The County is not responsible or liable for maintaining, supervising or reviewing the records maintained by DTC, its participants or persons acting through such participants. This Bond is issued in accordance with the Registered Public Obligations Act, Chapter 159E of the General Statutes of North Carolina, and pursuant to The Local Government Finance Act, a bond order adopted by the Board of Commissioners of the County on March 7, 2016 and effective on the date of its adoption. The Bonds are issued to provide funds (1) to pay the costs of refunding in advance of their maturities (a) $7,500,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation School Bonds, Series 2007 maturing on February 1, 2018 through February 1, 2020, (b) $10,785,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation Park and Recreation Bonds, Series 2008 maturing on and after June 1, 2019, (c) $29,500,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation School Bonds, Series 2009 maturing on and after June 1, 2020, and (d) $11,505,000 aggregate principal amount of the County of New Hanover, North Carolina General Obligation Public Improvement Bonds, Series 2010A maturing on August 1, 2021, August 1, 2025 and August 1, 2030; and (2) to pay costs incurred in connection with the issuance of the Bonds. The Bonds maturing on or before August 1, 2026 are not subject to redemption before maturity. The Bonds maturing after August 1, 2026 are subject to redemption before maturity, at the option of the County, from any moneys that may be made available for such purpose, either in whole or in part on any date on or after August 1, 2026, at the principal amount of the Bonds to be redeemed, together with interest accrued thereon to the date fixed for redemption, without premium. A -1 PPAB 3132396v2 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 11 If less than all the Bonds are called for redemption, the County shall select the maturity or maturities of the Bonds to be redeemed in such manner as the County in its discretion may determine, and DTC and its participants shall determine which Bonds within a maturity are to be redeemed by lot; provided, however, that the portion of any Bond to be redeemed must be in principal amount of $5,000 or integral multiples thereof and that, in selecting Bonds for redemption, each Bond is to be considered as representing that number of Bonds which is obtained by dividing the principal amount of such Bond by $5,000. When the County elects to redeem any Bonds, notice of such redemption of such Bonds, stating the redemption date, redemption price and identifying the Bonds or portions thereof to be redeemed by reference to their numbers and further stating that on such redemption date there are due and payable on each Bond or portion thereof so to be redeemed, the principal thereof and interest accrued to the redemption date and that from and after such date interest thereon shall cease to accrue, is to be given not less than 30 days nor more than 60 days before the redemption date in writing to DTC or its nominee as the registered owner of such Bonds, by prepaid certified or registered United States mail (or by such other means as may be permitted by DTC's rules and procedures), at the address provided to the County by DTC, but any failure or defect in respect of such mailing will not affect the validity of the redemption. If DTC is not the registered owner of such Bonds, the County will give notice at the time set forth above by prepaid first class United States mail, to the then - registered owners of such Bonds or portions thereof to be redeemed at the last address shown on the registration books kept by the County. The County will also mail or transmit by facsimile or electronic submission a copy of the notice of redemption within the time set forth above (1) to the Commission and (2) to the Municipal Securities Rule Making Board (the "MSRB ") in an electronic format as prescribed by the MSRB. It is hereby certified and recited that all conditions, acts and things required by the Constitution or statutes of the State of North Carolina to exist, be performed or happen precedent to or in the issuance of this Bond, exist, have been performed and have happened, and that the amount of this Bond, together with all other indebtedness of the County, is within every debt and other limit prescribed by said Constitution or statutes. The faith and credit of the County are hereby pledged to the punctual payment of the principal of and interest on this Bond in accordance with its terms. This Bond is not valid or obligatory for any purpose until the certification hereon has been signed by an authorized representative of the Local Government Commission. IN WITNESS WHEREOF, the County has caused this Bond to bear the original or facsimile of the signatures of the Chairman of the Board of Commissioners of the County and the Clerk to the Board of Commissioners of the County and an original or facsimile of the seal of the County to be imprinted hereon and this Bond to be dated as of the Dated Date above. (SEAL) Clerk to the Chairman, Board of Commissioners Board of Commissioners Date of Execution: May 24, 2016 A -2 PPAB 3132396v2 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 12 PPAB 3132396v2 The issue hereof has been approved under the provisions of The Local Government Bond Act. GREG C. GASKINS Secretary of the Local Government Commission A -3 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 13 FORM OF ASSIGNMENT ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto (Please print or typewrite Name and Address, including Zip Code, and Federal Taxpayer Identification or Social Security Number of Assignee) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints Attorney to register the transfer of the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: Signature guaranteed by: NOTICE: Signature must be guaranteed by a Participant in the Securities Transfer Agent Medallion Program ( "Stamp ") or similar program. PPAB 3132396v2 NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the within Bond in every particular, without alteration, enlargement or any change whatever. TRANSFER FEE MAY BE REQUIRED A -4 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 14 PPAB 3132396v2 Board of Commissioners - March 7, 2016 ITEM: 4 - 3 - 15 NEW HANOVER COUNTY BOARD OF COMMISSIONERS REQUEST FOR BOARD ACTION MEETING DATE: March 7, 2016 REGULAR DEPARTMENT: County Manager PRESENTER(S): Chris Coudriet, County Manager CONTACT(S): Avril Pinder, Deputy County Manager SUBJECT: Discussion about County Child Care Subsidy Program BRIEF SUMMARY: Tuesday, February 16, 2016 Commissioners Watkins and White asked for the administration to place an item on the next county commission meeting for the purpose of discussing the status of county child care subsidies approved in the FY 15 -16 budget. The county manager will outline a report, to include historical context for the intended use of said child care dollars, during the board meeting. The outline of the report will reflect the February 16, 2016 memo sent by the county manager to the Board of Commissioners (attached for information). Background In the FY15 -16 Adopted Budget, $448,000 of county funds were appropriated for the Department of Social Services (DSS) to fund a County Child Care Subsidy Program aimed at aiding parents that are unemployed or under employed because of the costs of child care to 1) return to the work force or 2) increase hours worked. In exchange, the county would offer a subsidy to said parent(s) to aid their employment ability. As of March 1, 2016 none of the $448,000 of county funds has been spent. The funds were originally in the child care category in the DSS budget; however, the county administration reassigned those subsidy dollars to an administrative reserve within the department budget in light of Board of Commission concern with policy intentions of the DSS Board. County Child Care Subsidy Program Criteria /Process Surveys were developed and mailed by DSS staff, with general program guidance from the county administration, on three different dates (December 15, 2015, January 18, 2016 and February 1, 2016) to existing families on the child care waidist. The purpose was to identify which individuals were seeking child care in order to increase their participation in the workforce. Specifically, the survey intended to gauge the community interest based on the following county administration guidance: 1) Work additional hours; 2) Take a higher wage job; and /or 3) Enter the workforce (move from unemployed to employed). Based on the call for interest to a sample of the waidist, DSS mailed 176 surveys, twelve were returned to DSS, and of those 12, ten met the criteria above. Participants meeting the survey criteria above were to then complete a child care subsidy application, developed by DSS staff, to: Board of Commissioners - March 7, 2016 ITEM: 5 1) Provide documentation for workforce participation /increase workforce participation; 2) Ensure applicants meet the income eligibility requirements; and 3) Determine that the child(ren) or parents are US Citizens; application mirrors state application. When DSS staff notified the 10 individuals to contact a worker to schedule an appointment and complete an application, none (0) responded. No applications have ever been completed. State /Federal Child Care Subsidy Criteria /Priorities The DSS board has indicated its intent to administer the county child care subsidy consistent with state and federal rules. Within the framework of state and federal rules, the DSS Board has established a prioritization list for State /Federal Child Care Subsidy funds: a) Children who need daycare to support Child Protective Services ( #1), Foster Care placement ( 0), or Child Welfare Services ( #4) receive priority regardless of income /need. b) Category #2 includes children of Work First participants (excluding `child only' cases) who need daycare in order to maintain employment and /or participate in job search or job training programs. c) Lower priority categories include parent(s) /adult(s) needing daycare to maintain employment, finish high school /GED /ABE or are enrolled in post - secondary education training; children needing daycare to meet developmental needs whose development is delayed or at risk of delay; or children over the age of ten without special needs documentation are not receiving care during second or third shifts. STRATEGIC PLAN ALIGNMENT: Effective County Management • Deliver value for taxpayer money RECOMMENDED MOTION AND REQUESTED ACTIONS: Hear county manager's report and direct staff pursuant to Board direction. ATTACHMENTS: New Hanover County Child Care Assistance Survey New Hanover County Application for Child Care Assistance State Subsidy Guidelines NHC County Manager E -mail Summary February 16, 2016 COUNTY MANAGER'S COMMENTS AND RECOMMENDATIONS: (only Manager) Authorize staff to take all necessary steps pursuant to Board direction. COMMISSIONERS' ACTIONS: Heard presentation by County Manager. Conducted discussion and approved a motion with conditions for staff to administer the funding 3 -2, Commissioners White and Watkins voting in opposition. Board of Commissioners - March 7, 2016 ITEM: 5 YOU HAVE RECEIVED THIS SURVEY BECAUSE YOU WERE RECENTLY CONTACTED REGARDING OUR CHILD CARE WAITING LIST. PLEASE COMPLETE THE SURVEY IN FULL AND RETURN TO DSS BY: FEBRUARY 15, 2016 YOUR PARTICIPATION IN THIS SURVEY IS GREATLY APPRECIATED. NEW HANOVER COUNTY CHILD CARE SURVEY 1. Are you currently employed? Yes No 2. If child care assistance were available, would it allow you to work more hours? Yes No 3. Are you currently seeking employment? Yes No 4. How many children do you have in each age group that need child care? less than 1 year old 1 year old 2 years old 3 years old 4 years old 5 years old (Pre - kindergarten) 5 - 12 years old (School -age) 13 - 17 years old 5. Do you have a child presently enrolled in NC Pre -K OR Head Start? 6. How long have you been waiting for assistance? 4 — 6 months 7 —12 months More than 12 months 6. A. Is your child(ren) in a child care now? Yes No B. If yes, please check the different types of care you are using. (Check all that apply to your situation.) Licensed child care center Religious Program Licensed child care home School Friend/Neighbor /Relative Club I take my child to my job Other (Please name the source.) 7. A. If your child is currently in child care, are you paying the provider? Yes No 8. Verify current mailing address. _ Verify current residence address. Print Name Signature Phone # Date Board of Commissioners - March 7, 2016 ITEM: 5 - 1 - 1 W U U A U O I� 0 I� a d i.i 9.4 � � O a� PC � O .P o � U A v., a QI L o ° p., 'C .b 0 a dl O� gu�yy 0 W .q 6 S V 0 •� W a� 9z w W o� r o a a is P � � y tA A w � � V w z o a m 0 a 0 a d 0 i a 0 0 L d PC E z F d 8 0 E W 0 m C4 C 0 r.. 0 E z �a rA x v 6� z 0 V A A A V zz Cp CD > > zx m m O O 9 V C U "C a� �2 CD a �a� V � �I Board of Commissioners - March 7, 2016 ITEM: 5 - 2 - 1 ^o d z d rA >4 �L '3 V UD 0 d -a .0 Ze �z 0 d� m A �a O d e w CL aCS �C ci PC aD .YC C w m U � d z w e 0 r 0 L d � z r+ � a� 0 as d O U A as L �1 pa b 0 PC a a b O q W .b v �I h i.i a b 0 0 o O Q A� 0 U i NEW HANOVER COUNTY DEPARTMENT OF SOCIAL SERVICES CHILD DAY CARE WAITING LIST AND SERVICE REDUCTION POLICY When the availability of funding for child care is Iess than the amount needed to serve all eligible children, New Hanover County DSS has the responsibility to give some children priority for services, These priorities are based on eligibility and need for the service and are impacted by restrictions of the various funding sources. Before implementing a waiting list, transportation over and above the cost of service may be eliminated. If a waiting list is still needed, however, we will prioritize families in the order noted in categories 5 -8 below. We will continue to serve children in categories 1 -4 as follows: 1. Children who need child care assistance to support Child Protective Services. 2. Children of Work First or Benefit Diversion participants (excluding "child only" cases) who need child care in order to maintain employment and/or participate in job search or job training programs. 3. Children placed by DSS with foster parents or relatives who need child care as part of the safety plan. 4. Children who need child care to support Child Welfare Services (includes Children's Services and At Risk/Prevention Services) in order to prevent or remedy problems that may result in the neglect or abuse of children, to prevent foster care placement, to support family reunification, and to provide support in times of crisis. >. Children whose parents, or other adults responsible for the care of the child need child care in order to maintain employment. 6. Children whose parents or other adults responsible for the care of the child need child care to attend school or job training activities that lead to employment. a. Teen parents attending high school or its equivalent b. Adults participating in GED or ABE programs (6 months maximum) c. Parents /responsible adults who are enrolled in post - secondary education training (2 year maximum) 7. Children who need child care to meet developmental needs whose emotional, cognitive, social or physical development is delayed or at risk of delay. 8. Children over the age of ten who are not documented special needs and are not receiving care during second or third shifts. The waiting list will be updated at least every six (6) months. This will be done via phone call or letter to the caretaker. If a family is no Ionger eligible or no longer expresses a need for child care services, the family will be notified in writing that they are being removed from the waiting list. Persons contacted by mail will be given ten (10) working days to respond to the letter. If a family cannot be located or fails to respond to the review letter, the family will be removed form the waiting list. Individuals may remain on the waiting list indefinitely -ts long as they express continued interest and appear to be eligible. .. April 27, 2005 Board of Commissioners - March 7, 2016 ITEM: 5 - 3 - 1 If additional child care funds become available, persons from the waiting list will be contacted in order of priority as established above, according to their date of inquiry. Reduction If funding necessitates that child care services be reduced, this action will be taken in the reverse order of the afore - mentioned priority list. Persons being affected by the reduction will receive a Day Care Action Notice stating that child care will terminate in ten (10) working days. Chan es in Need for Child Da Care When a waiting list is in effect, and a current recipient's need for child care changes (e.g. from support for education and training to support for employment), the child care will continue provided that families are still being served for this reason. If funding necessitates or has necessitated that services be reduced to families in the new category of need, then the family will be placed on the waiting list. In addition, if current recipients wish to add children to existing cases, they will not be able to do so. These children will be placed in the appropriate waiting list category. Waiting List for Special Needs Children Child Care Development Funds (CCDF) regulations require that states give priority to children with special needs who need child care services. Counties are expected to set aside a portion of their child care allocation for this purpose. In keeping with state policy, New Hanover County Department of Social Services will establish a separate waiting list for children with special needs, should a waiting list become necessary due to limited funding. Families with special needs children will be served in the same prioritization listed above. The procedures for maintaining the waiting list and for reducn in services listed above will be followed. i New Hanover County Department of Social Services _April 27, 2005 _ Aril 27 2005 Date Date Approved by the New Hanover County Board of Social Services Board of Commissioners - March 7, 2016 ITEM: 5 - 3 - 2 From: Coudriet, Chris Sent: Tuesday, February 16, 2016 6:54 PM To: Watkins, Skip; White, Woody; Elmore, Teresa; Dawson, Beth; Barfield, Jonathan; Zapple, Rob; Pinder, Avril; Burgess, Tim; Schrader, Beth; Smith, Ruth Ravitz; Copley, Wanda Cc: Winstead, Michelle Subject: RE: County Daycare subsidy -- Chris' Follow Up I'd like to offer my perspective of what led us to this point ... I hope this is helpful. After the board approved the budget, I directed county administration staff to work with staff at social services to develop a mechanism to make county subsidy dollars available for children who have parents or a parent that are unemployed or under- employed by choice because of the cost of day care. That is reflective of why I recommended childcare subsidy, and it is what I thought was the intent of the board of commissioners when it approved the budget. (I believe that talented men and women are out of the work force because of day care costs. I know of people who wrestle with this issue day in and day out.) Perhaps it was an overreach on my part with the assumption of what the board intended when it approved the childcare subsidy in the budget, and for that no one is responsible but me. Clearly, I did not ask staff to go back and pitch the specifics of our approach with either the commission or the social services board. That was a mistake. To gauge the demand for parents or a parent who wishes to return to the work force and seek subsidy to aid that decision, my office did work with social services staff to create a survey instrument sent to the potential eligible pool. Staff also created a county application that would be used in the event a parent or parents sought this assistance. To date, no applications have been submitted. Staff did, in response to a question from the social services board, report that we were working on a mechanism to target -fund the county dollars. The board of social services, fairly, was concerned that we were moving too slowly in petting these dollars into the community, and I believe the board of social services felt county staff was imposing its preferences in the use of the funding. County staff discussed our effort to deploy the survey to determine interest, which is not part of the process for using state and federal child care dollars. But again, we wanted to do this to help determine demand for the target population. As part of at least 2 conversations at social services board meetings the county child care subsidy were points of the agenda. During a briefing, a point made about US citizenship questions on the county application came to the front. I believe this is what has led to the issue at hand and how something read in draft minutes from the January social services board meeting depicted dialogue. A comment was made the county was asking an illegal question when it inquired about US citizenship. The reply was the county would not do something illegal and if we were that question could be removed but the question at hand was families going back to work if they chose by using the Board of Commissioners - March 7, 2016 ITEM: 5 - 4 - 1 county dollars. Effectively, there were 2 separate issues. The minutes only read that the county would remove the illegal question. That was not the full response and it was corrected at today's meeting. What we know is the question is not illegal, and in fact, is specifically asked on the application used for state and federal subsidy dollars. As noted, the county application was developed to mirror, to some degree, the state application. What is true for state and federal dollars is the citizenship or legal status of the parents of a child is not relevant in the decision making for subsidy if that child is a citizen. The board of social services, as I understand it, prefers to administer the county subsidy consistent with state and federal rules. Hence, the conflict ... earlier in the year I asked county staff to aim the dollars at a group of specific families that wanted to work but did not because of day care costs, and yes, the ability to "work lawfully" would have influenced the decision to use county dollars or not. would like to note again, no county dollars have been spent to date. The amount of federal and state dollars on hand has worked the eligible population per state and federal rules. Yes, there is a waiting list, but not every child on the list is eligible for state and federal dollars, and the level of response to the county survey has not been overly robust. As such, the board of social services is debating, and has generally settled its policy position on the county funds — use them consistent with federal rules. I hope this has not made the issue more cloudy. Chris C. Chris Coudriet I County Manager County Manager New Hanover County 230 Government Center Drive, Suite 195 Wilmington, NC 28403 (910) 798 -7186 p 1 (910) 798 -7277 f www.nhcciov.com Board of Commissioners - March 7, 2016 ITEM: 5 - 4 - 2